[Federal Register Volume 71, Number 45 (Wednesday, March 8, 2006)]
[Notices]
[Pages 11712-12069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-1869]



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Part II





Department of Housing and Urban Development





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Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs; Notice

  Federal Register / Vol. 71, No. 45 / Wednesday, March 8, 2006 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5030-N-01A]


Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of HUD's Fiscal Year (FY) 2006 Notice of Funding 
Availability (NOFA) for HUD's Discretionary Programs (SuperNOFA).

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SUMMARY: On January 20, 2006, HUD published its Notice of Fiscal Year 
2006 Notice of Funding Availability Policy Requirements and General 
Section to the SuperNOFA (General Section). In that publication, HUD 
announced it was publishing the General Section of the FY2006 SuperNOFA 
in advance of the individual NOFAs in order to give prospective 
applicants sufficient time to begin preparing their applications, and 
to register early with Grants.gov to facilitate their application 
submission process. This publication contains the 39 funding 
opportunities that constitute HUD's FY2006 SuperNOFA.

DATES: The key dates that apply to all HUD federal financial assistance 
made available through HUD's FY2006 SuperNOFA are found in each 
individual program NOFA and in Appendix A to this notice.

FOR FURTHER INFORMATION CONTACT: The individual program NOFAs will 
identify the applicable agency contacts for each program. Questions 
regarding this Introduction should be directed to the NOFA Information 
Center between the hours 10 a.m. and 6:30 p.m. Eastern Time at 800-HUD-
8929. Hearing-impaired persons may call 800-HUD-2209. Questions 
regarding specific program requirements should be directed to the 
agency contacts identified in each program NOFA.

SUPPLEMENTARY INFORMATION: 

Introduction (Supplemental General Section)

    This publication follows HUD's publication of the General Section 
of the FY2006 SuperNOFA on January 20, 2006 (71 FR 3382), and presents 
the 39 individual funding opportunities that constitute HUD's FY2006 
SuperNOFA. HUD makes available through today's FY2006 SuperNOFA 
publication approximately $2.2 billion in assistance.
    While each program NOFA provides the statutory and regulatory 
requirements, threshold requirements, and rating factors applicable to 
funding made available through the individual NOFA, applicants must 
also refer to the January 20, 2006, General Section of the FY2006 
SuperNOFA for important application information and requirements, 
including submission requirements, which have changed this year.
    Appendix A to the January 20, 2006, General Section identified the 
funding opportunities anticipated to be included in the FY2006 
SuperNOFA. HUD is revising and republishing Appendix A (Revised 
Appendix A) as part of today's FY2006 SuperNOFA publication. Revised 
Appendix A provides an up-to-date funding chart that lists the funding 
opportunities included in today's FY2006 SuperNOFA publication, along 
with the application deadline for receipt of applications. In reviewing 
Revised Appendix A, applicants should note that the HOPE VI Main Street 
Program NOFA is not part of today's FY2006 SuperNOFA publication. This 
NOFA will be published separately, together with the HOPE VI 
Revitalization NOFA. In addition, the Self Help Homeownership 
Opportunity Program (SHOP) is part of today's FY2006 SuperNOFA 
publication and is included in Revised Appendix A.
    In addition to Revised Appendix A, this notice makes one 
clarification regarding the discussion of the Logic Model in Section 
VI.C. entitled ``Reporting'' of the January 20, 2006, General Section 
(see 71 FR 3398). Although the Logic Model is to be completed by 
applicants, the Return on Investment (ROI) Statement referenced in the 
discussion of the Logic Model only applies to grantees, i.e., 
applicants selected for funding under the NOFAs. Applicants are not to 
complete the ROI statement. Additionally, for FY2006, the ROI concept 
is a new concept for the Logic Model. HUD is considering this new 
concept and will issue a separate notice within the next few weeks that 
further addresses the ROI concept.
    HUD published the General Section of the FY2006 SuperNOFA early to 
provide its applicant community with the opportunity to become familiar 
with cross cutting requirements, and to remind prospective applicants 
to register or renew their registration in order to successfully submit 
an application via Grants.gov.
    Applicants are required to complete a five-step registration 
process in order to submit their applications electronically. The 
registration process is outlined in HUD's Notice of Opportunity to 
Register Early for Electronic Submission of Grant Applications for 
Funding Opportunities, published in the Federal Register on December 9, 
2006 (70 FR 73332), and the brochure entitled ``STEP BY STEP: Your 
Guide to Registering for Grant Opportunities,'' located at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. HUD also has a new 
brochure titled, ``Finding and Applying for Grant Opportunities,'' 
dated February 2006, which walks you through the process of finding and 
applying for grant opportunities. This brochure also contains 
Registration Tips that will help applicants who successfully submitted 
a grant application last year to determine if their registration is 
active and if they are ready to submit a grant application to 
Grants.gov.
    HUD has received a number of questions regarding what to do if an 
Authorized Organization Representative (AOR) has left the organization. 
An excerpt from the ``Finding and Applying for Grant Opportunities 
Brochure,'' dated February 2006 and describes the steps that are needed 
in such situations and also provides other pertinent registration 
information. This excerpt can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm under the title 
``Registration Tips.''
    In FY2006, HUD intends to continue to require its applicants to 
submit their applications electronically through Grants.gov. For 
FY2006, only the Continuum of Care program will remain a paper 
application process. It is HUD's intent, however, to move the Continuum 
of Care program to electronic application submission in FY2007. As a 
result, HUD continues to encourage Continuum of Care agencies to become 
familiar with Grants.gov requirements to facilitate this transition.
    If you have questions concerning the registration process, 
registration renewal, assigning a new AOR, or have a question about a 
NOFA requirement, please feel free to contact HUD staff listed in the 
NOFA. HUD staff cannot help you write your application, but can clarify 
requirements that are contained in this Notice and HUD's registration 
materials.
    Applicants are also encouraged to participate in HUD's satellite 
training and web cast sessions designed to provide a detailed 
explanation of the general section and program section requirements for 
each of the SuperNOFA programs. The interactive broadcasts provide you 
an opportunity to ask questions of HUD staff. These broadcasts are also 
achieved and accessible from HUD's Grants page at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Applicants should bookmark the 
Grants page as it provides a wealth of information including responses 
to frequently asked questions that arise during the funding application 
period.

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    Modifications to any of the NOFAs or the application are posted to 
www.Grants.gov as soon as they are available. Applicants should 
subscribe to the Grants.gov free notification service. By doing so, you 
will receive an e-mail notification as soon as items are posted to 
Grants.gov. The address to subscribe to this service is http://www.grants.gov/search/email.do.
    HUD reiterates the statement made in the publication of the General 
Section on January 20, 2006, and that is, HUD hopes the steps that it 
has taken to provide information early on the FY2006 funding process 
and SuperNOFA requirements are of benefit to applicants.

    Dated: February 22, 2006.
Roy A. Bernardi,
Deputy Secretary.
BILLING CODE 4210-01-P

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Community Development Technical Assistance

Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title. Community Development Technical 
Assistance (CD-TA).
    C. Announcement Type. Initial Announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is FR-5030-N-08. The OMB approval numbers are: 2506-0166 for HOME 
Investment Partnerships Program (HOME), HOME Investment Partnerships 
Program for Community Housing Development Organizations [CHDO (HOME)], 
and McKinney-Vento Homeless Assistance (Homeless), 2506-0133 for 
Housing Opportunities for Persons With AIDS (HOPWA), and 2506-0142 for 
Youthbuild.
    E. Catalog of Federal Domestic Assistance (CFDA) Numbers. The HOME 
and CHDO (HOME) CFDA number is 14.239; Homeless is 14.235; HOPWA is 
14.241; Youthbuild is 14.243.
    F. Dates. The application submission date is May 18, 2006.
    G. Additional Overview and Content Information. Applicants 
interested in providing technical assistance to entities participating 
in HUD's community development programs should carefully review the 
General Section and the information listed in this CD-TA NOFA. Funds 
are available to provide technical assistance for five separate program 
areas: HOME, CHDO (HOME), Homeless, HOPWA, and Youthbuild. Applicants 
may apply for one, two, three, four, or all five CD-TA program areas. 
The application submission information is contained in this CD-TA NOFA 
at Section IV.B. Approximately $19.7 million is available. No cost 
sharing is required. Grants will be administered under cooperative 
agreements with significant HUD involvement (see Section II.C of this 
NOFA).

Full Text of Announcement

I. Funding Opportunity Description

    A. CD-TA Purpose. The purpose of the CD-TA program is to provide 
assistance to achieve the highest level of performance and results for 
five separate community development program areas: (1) HOME; (2) CHDO 
(HOME); (3) Homeless; (4) HOPWA; and (5) Youthbuild. Information about 
the five community development programs and their missions, goals, and 
activities can be found on the HUD Web site at http://www.hud.gov.
    B. Description of National TA and Local TA. There are two types of 
technical assistance (TA) funding available in this NOFA: National TA 
and Local TA.
    National TA activities are those that address, at a nationwide 
level, one or more of the CD-TA program activities and/or priorities 
identified in Section III.C of this NOFA. National TA activities may 
include the development of written products, development of on-line 
materials, development of training courses, delivery of training 
courses previously approved by HUD, organization and delivery of 
workshops and conferences, and delivery of direct TA as part of a 
national program. Applicants for National TA must also be willing to 
work in any HUD field office area, although work in the field office 
areas is likely to be a negligible portion of National TA activities. 
National TA activities are administered by a Government Technical 
Representative (GTR) and Government Technical Monitor (GTM) at HUD 
Headquarters.
    Local TA activities also must address the CD-TA program activities 
and/or priorities identified in this NOFA, however the Local TA is 
targeted to the specific needs of the HUD community development program 
recipients in the field office area in which the TA is proposed. Local 
TA activities are limited to the development of need assessments, 
direct TA to HUD community development program recipients, organization 
and delivery of workshops and conferences, and customization and 
delivery of previously HUD-approved trainings. Local TA will be 
administered by a GTR and GTM in the respective HUD field office.
    C. Authority. HOME TA is authorized by the HOME Investment 
Partnerships Act (42 U.S.C. 12781-12783); 24 CFR part 92. CHDO (HOME) 
TA is authorized by the HOME Investment Partnerships Act (42 U.S.C. 
12773); 24 CFR part 92. For the McKinney-Vento Act Homeless Assistance 
Programs TA, the Supportive Housing Program is authorized under 42 
U.S.C. 11381 et seq.; 24 CFR 583.140; Emergency Shelter Grants, Section 
8 Moderate Rehabilitation Single Room Occupancy Program, and Shelter 
Plus Care TA are authorized by the FY2006 HUD Appropriations Act. HOPWA 
TA is authorized under the FY2006 HUD Appropriations Act. Youthbuild TA 
is authorized under Title IV of the Cranston-Gonzalez National 
Affordable Housing Act, as amended by the Housing and Community 
Development Act of 1992 (42 U.S.C. 12899g); 24 CFR part 585.

II. Award Information

    A. Available Funds. Approximately $19.7 million is available for 
the CD-TA program. Additional funds may become available as a result of 
recapturing unused funds. This chart shows how the funds are divided 
among National TA and Local TA activities:

------------------------------------------------------------------------
                    Program                     National TA    Local TA
------------------------------------------------------------------------
HOME..........................................   $1,980,000           $0
CHDO (HOME)...................................    2,920,000    5,000,000
Homeless......................................    3,501,085    3,000,000
HOPWA.........................................      900,000            0
Youthbuild....................................    2,475,000            0
------------------------------------------------------------------------

    The Local TA funds are divided among HUD's field office 
jurisdictions for the CHDO (HOME) and Homeless programs. No Local TA 
funds are available for HOPWA, Youthbuild, or HOME. In the case of the 
national CHDO (HOME) program, if less than the total amount of 
available funds is awarded, the balance may be used to make awards 
under the national HOME TA program.
    The chart below shows the amounts available in dollars for Local TA 
by CD-TA program:

------------------------------------------------------------------------
                 Local TA area                  CHDO (HOME)    Homeless
------------------------------------------------------------------------
Alabama.......................................      $75,000      $40,000
Alaska........................................       30,000       30,000
Arkansas......................................       30,000       40,000
California--Northern and Arizona, Nevada......      300,000      300,000
California--Southern..........................      400,000      275,000
Caribbean.....................................       75,000       40,000
Colorado and Montana, North Dakota, South           170,000       60,000
 Dakota, Utah, Wyoming........................
Connecticut...................................       55,000       40,000

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District of Columbia area.....................       50,000       50,000
Florida--Southern.............................       60,000       50,000
Florida--Northern.............................      100,000       70,000
Georgia.......................................       75,000       50,000
Hawaii........................................  ...........       40,000
Illinois......................................      125,000      145,000
Indiana.......................................       50,000       25,000
Kansas and Missouri--Western..................       75,000       50,000
Missouri--Eastern.............................       55,000       40,000
Kentucky......................................      150,000       40,000
Louisiana.....................................       50,000       40,000
Maryland, except District of Columbia area....       50,000       40,000
Massachusetts, Maine, New Hampshire, Rhode          250,000      200,000
 Island, Vermont..............................
Michigan......................................      225,000      138,000
Minnesota.....................................      140,000       52,000
Mississippi...................................      125,000       50,000
Nebraska and Iowa.............................       40,000       40,000
New Jersey....................................       25,000       25,000
New Mexico....................................      225,000       50,000
New York--Downstate...........................      482,000      250,000
New York--Upstate.............................       60,000       35,000
North Carolina................................      150,000       40,000
Ohio..........................................      116,000      125,000
Oklahoma......................................       40,000       40,000
Oregon and Idaho..............................      130,000       30,000
Pennsylvania--Eastern and Delaware............       75,000       50,000
Pennsylvania--Western and West Virginia.......      158,000       57,000
South Carolina................................       34,000       40,000
Tennessee.....................................      150,000       40,000
Texas--Northern...............................      250,000       88,000
Texas--Southern...............................       20,000       40,000
Virginia, except District of Columbia area....       80,000       40,000
Washington....................................       50,000       50,000
Wisconsin.....................................      200,000       55,000
------------------------------------------------------------------------

    B. Performance Period. Awards will be for a period of up to 36 
months. HUD, however, reserves the right to withdraw funds from a 
specific TA provider if HUD determines that the urgency of need for the 
assistance is greater in other field office jurisdictions or the need 
for assistance is not commensurate with the award.
    C. Terms of Award. HUD will enter into a cooperative agreement with 
selected applicants for the performance period. Because CD-TA awards 
are made as cooperative agreements, implementation entails significant 
HUD involvement. Significant HUD involvement is required in all aspects 
of TA planning, delivery, and follow-up.
    In addition to the requirements listed in the General Section, 
selected applicants are subject to the following requirements:
1. Demand-Response System
    All CD-TA awardees must operate within the structure of the demand-
response system. Under the demand-response system, TA providers are 
required to:
    a. When requested by a GTR, market the availability of their 
services to existing and potential recipients within the jurisdictions 
in which the assistance will be delivered;
    b. Respond to requests for assistance from the GTR;
    c. When requested by a GTR, conduct a needs assessment to identify 
the type and nature of the assistance needed by the recipient of the 
assistance;
    d. Obtain the local HUD field office's approval before responding 
to direct requests for technical assistance from HOME Participating 
Jurisdictions (PJs), Community Housing Development Organizations 
(CHDOs), and McKinney-Vento Act Homeless Assistance and HOPWA grantees; 
and
    e. For CHDO (HOME) TA providers, secure a letter from a PJ stating 
that a CHDO, or prospective CHDO to be assisted by the provider, is a 
recipient or intended recipient of HOME funds and indicating, at its 
option, subject areas of assistance that are most important to the PJ.
2. Training
    When conducting training sessions as part of its CD-TA activities, 
CD-TA providers are required to:
    a. Design the course materials as ``step-in'' packages so that HUD 
or other CD-TA providers may independently conduct the course on their 
own;
    b. Make the course materials available to the GTR in sufficient 
time for review (minimum of three weeks) and receive concurrence from 
the GTR on the content and quality prior to delivery;
    c. Provide all course materials in an electronic format that will 
permit wide distribution among TA providers, field offices, and HUD 
grantees;
    d. Arrange for joint delivery of the training with HUD 
participation when requested by the GTR;
    e. Deliver HUD-approved training courses that have been designed 
and developed by others on a ``step-in'' basis when requested; and
    f. Send trainers to approved ``train-the-trainers'' sessions.
3. Field Office Involvement Under National TA Awards
    When National TA providers are undertaking activities in field 
office jurisdictions, the National TA providers must work cooperatively 
with HUD field offices. Providers must notify the applicable HUD field 
office of the planned activities; consider the views or recommendations 
of that office, if any; follow those recommendations, to the degree 
practicable; and report to the applicable field office on the 
accomplishments of the assistance.

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III. Eligibility Information

A. Eligible Applicants

    The eligible applicants for each of the five CD-TA programs are 
listed in the chart below. In accordance with the President's faith-
based initiative, HUD welcomes the participation of eligible faith-
based and other community organizations in the CD-TA programs.

------------------------------------------------------------------------
           Program                        Eligible applicants
------------------------------------------------------------------------
HOME.........................  A for-profit or nonprofit professional
                                and technical services company or firm
                                that has demonstrated knowledge of the
                                HOME program and the capacity to provide
                                technical assistance services;
                               A HOME Participating Jurisdiction (PJ);
                               A public purpose organization,
                                established pursuant to state or local
                                legislation, responsible to the chief
                                elected officer of a PJ;
                               An agency or authority established by two
                                or more PJs to carry out activities
                                consistent with the purposes of the HOME
                                program; or
                               A national or regional nonprofit
                                organization that has membership
                                comprised predominantly of entities or
                                officials of entities of PJs or PJs'
                                agencies or established organizations.
CHDO (HOME)..................  A public or private nonprofit
                                intermediary organization that
                                customarily provides services, in more
                                than one community, related to the
                                provision of decent housing that is
                                affordable to low-income and moderate-
                                income persons or related to the
                                revitalization of deteriorating
                                neighborhoods; has demonstrated
                                experience in providing a range of
                                assistance (such as financing, technical
                                assistance, construction and property
                                management assistance) to CHDOs or
                                similar organizations that engage in
                                community revitalization; and has
                                demonstrated the ability to provide
                                technical assistance and training for
                                community-based developers of affordable
                                housing.
                               Note: Any organization funded to assist
                                CHDOs under CD-TA may not undertake CHDO
                                set-aside activities itself within its
                                service area while under cooperative
                                agreement with HUD.
Homeless.....................  A state;
                               A unit of general local government;
                               A public housing authority; or
                               A public or private nonprofit or for-
                                profit organization, including
                                educational institutions and area-wide
                                planning organizations.
HOPWA........................  A for-profit or nonprofit organization;
                               A state; or
                               A unit of general local government.
Youthbuild...................  A public or private nonprofit agency that
                                has significant prior experience in the
                                operation of projects similar to the
                                Youthbuild program and that has the
                                capacity to provide effective technical
                                assistance.
------------------------------------------------------------------------

    Applicants must also meet the threshold requirements of the General 
Section, including the Civil Rights threshold in Section III (C).
    A consortium of organizations may apply for one or more CD-TA 
programs, but one organization must be designated as the applicant.
    Applicants may propose assistance using in-house staff, sub-
contractors, sub-recipients, and local organizations with the requisite 
experience and capabilities. Where appropriate, applicants should make 
use of TA providers located in the field office jurisdiction receiving 
services.

B. Cost Sharing or Matching

    None.

C. Other

1. Eligible Activities and Priorities
    Funds may be used to provide TA to grantees, prospective 
applicants, and project sponsors of the HOME, CHDO (HOME), Homeless, 
HOPWA, and Youthbuild programs. The TA activities may include but are 
not limited to written information such as papers, manuals, guides, and 
brochures; assistance to individual communities; needs assessments; and 
training. The priority TA areas for each of the five program areas are:
    a. HOME TA. HUD has identified four HOME program technical 
assistance priorities. These priorities that result in measurable 
performance outputs and outcomes are:
    (1) Improve the ability of PJs to design and implement housing 
programs that reflect sound underwriting, management, and fiscal 
controls; demonstrate measurable outcomes in the use of public funds; 
and provide accurate and timely reporting of HOME program 
accomplishments.
    (2) Encourage public-private partnerships that yield an increase in 
the amount of private dollars leveraged for HOME-assisted projects and 
result in an increase in the commitment and production of HOME-assisted 
units.
    (3) Assist PJs in developing strategies that ameliorate the 
affordability gap between rapidly increasing housing costs and the less 
rapid growth in incomes among low-income households, especially among 
underserved populations (e.g., residents of the Colonias, homeless 
persons, persons with disabilities, and residents of an empowerment 
zone (EZ) designated by HUD or the United States Department of 
Agriculture (USDA), an urban or rural renewal community designated by 
HUD (RC), or an enterprise community designated in round II by USDA 
(EC-II).
    (4) Assist PJs in developing strategies that increase and help 
sustain homeownership opportunities for low-income households--
particularly low-income, minority households--and directly result in 
the commitment and completion of HOME-assisted units.
    Some examples of measurable performance outputs and outcomes are 
given in Rating Factor 4.
    b. CHDO (HOME) TA (1) HUD has identified three CHDO-specific 
technical assistance priorities. These priorities that result in 
measurable performance outputs and outcomes are:
    (a) Assist new CHDOs and potential CHDOs in developing the 
organizational capacity to own, develop, and sponsor HOME-assisted 
projects. A new CHDO is defined as a nonprofit organization that within 
three years of the publication of this NOFA was determined by a PJ to 
qualify as a CHDO. A potential CHDO is defined as a nonprofit 
organization that is expected by the PJ to qualify as a CHDO and is 
expected to enter into a written agreement with that PJ to own, 
develop, or sponsor HOME-assisted housing within 24 months of the PJ 
determining the organization qualifies as a CHDO.

[[Page 11722]]

    (b) Improve the HOME program production and performance of existing 
CHDOs in the areas of:
    (i) Program design and management, including underwriting, project 
financing, property management, and compliance; and
    (ii) Organizational management and capacity, including fiscal 
controls, board development, contract administration, and compliance 
systems.
    (c) Provide organizational support, technical assistance, and 
training to community groups for the establishment of community land 
trusts, as defined in section 233(f) of the Cranston-Gonzales National 
Affordable Housing Act.
    (2) Additional CHDO (HOME) eligible activities are:
    (a) Under the ``Pass-Through'' provision, CD-TA providers may 
propose to fund various operating expenses for eligible CHDOs that own, 
develop, or sponsor HOME-assisted housing. Such operating expenses may 
include reasonable and necessary costs for the operation of the CHDO 
including salaries, wages, and other employee compensation and 
benefits; employee education, training and travel; rent; utilities; 
communication costs; taxes; insurance; equipment, materials, and 
supplies.
    (b) CD-TA providers must establish written criteria for selection 
of CHDOs receiving pass-through funds. PJs must designate the 
organizations as CHDOs; and, generally, the organizations should not 
have been in existence more than three years.
    CD-TA providers must enter into an agreement with the CHDO that the 
agreement and pass-through funding may be terminated at the discretion 
of HUD if no written legally binding agreement to provide assistance 
for a specific housing project (for acquisition, rehabilitation, new 
construction, or tenant-based rental assistance) has been made by the 
PJ with the CHDO within 24 months of initially receiving pass-through 
funding. The pass-through amount, when combined with other capacity 
building and operating support available through the HOME program, 
cannot exceed the greater of 50 percent of the CHDO's operating budget 
for the year in which it receives funds, or $50,000 annually.
    c. Homeless TA. Homeless TA funds are available to provide 
McKinney-Vento Homeless Assistance Act, HUD-funded grantees, project 
sponsors, and potential recipients with skills and knowledge needed to 
develop and operate projects and activities. The assistance may 
include, but is not limited to, developing and disseminating written 
information such as papers, monographs, manuals, curriculums, guides, 
and brochures; and person-to-person exchanges, conferences, training 
and use of technology. TA activities are focused on these priorities 
that result in measurable performance outputs and outcomes:
    (1) Continue the integration of the Technical Assistance Catalog 
and the Homelessness Resource Exchange through the development of new 
materials and dissemination of curriculums for defined audiences 
including existing technical assistance materials and newly created 
technical assistance materials. All curriculum dissemination may 
include training, conferences, and use of technology, as well as 
written materials.
    (2) Develop curriculums to improve Continuum of Care (CoC) 
governance, development, organizational capacity, planning, and five-
year renewal burden assessment, and to assist in developing strategies 
to eliminate chronic homelessness and increase access to mainstream 
services for homeless persons.
    (3) Assist CoCs with Homeless Management Information System (HMIS) 
implementation. National technical assistance will relate to data 
collection, data quality, data analysis, provider participation, 
reporting, performance measurement, data warehousing, and HMIS Data and 
Technical Standards.
    (4) Maintain and enhance the HMIS website portal as the vehicle for 
collection and dissemination of HMIS information. (5) Support 
collaboration between metropolitan, regional and statewide HMISs. 
Assistance may include providing state and/or regional HMIS technical 
assistance coordinators and/or technology to promote effectuating long-
distance meeting, conferencing and networking. (6) Support 
collaboration between metropolitan, regional, and statewide HMISs for 
use in disaster preparedness and recovery efforts, utilizing the 
experience of communities that experienced Hurricanes Katrina and Rita.
    (7) Improve participation in the Annual Homeless Assessment Report 
(AHAR) by CoCs and providers in their geographic areas through outreach 
and capacity building. Develop materials and training for: Reporting 
bed coverage; extrapolation and data analysis methodologies and 
documents; data integration; data quality assessments; utilization of 
AHAR data at the program and/or CoC level; and the collection and 
analysis of CoC data for Congressionally-directed HMIS-related reports 
to Congress.
    (8) Develop curriculums for grantees and project sponsors on 
implementing and achieving long-term performance outcome measures that 
promote housing stability, reduce the risk of homelessness, and improve 
access to mainstream systems of care.
    (9) Develop curriculums on program requirements and monitoring 
standards for McKinney-Vento Act funded grant recipients, including 
sound fiscal and financial management practices, assessment of sub-
recipients and activities, and reporting in IDIS and via Annual 
Progress Reports.
    (10) Develop curriculums to improve the ability of grantees to 
establish comprehensive housing development strategies for homeless 
persons through collaborative public and private partnerships. Such 
curriculums may include educational components on the availability and 
use of tax incentive programs that increase access to private capital 
(e.g., Low Income Housing Tax Credit, the Historic Preservation 
Investment Tax Credit, Renewal Communities and Empowerment Zones tax 
incentives, and New Markets Tax Credit).
    (11) Develop curriculums for homelessness prevention strategies, 
including discharge planning.
    (12) Assist CoC applicants with understanding the Grants.gov 
registration and application submission process so they are prepared to 
submit electronic applications in 2007 and assist HUD in increasing the 
number of McKinney Vento applicants fully registered at Grants.gov.
    (A person experiencing chronic homelessness is defined as an 
unaccompanied individual with a disabling condition who has been 
continuously homeless for a year or more or has experienced four or 
more sustained episodes of homelessness over the last three years.)
    d. HOPWA TA. HOPWA funds are available for technical assistance, 
training, and oversight activities which can be used to provide 
grantees, project sponsors, and potential recipients with the skills 
and knowledge to effectively develop, operate, and support HOPWA-
eligible project activities that result in measurable performance 
outputs and outcomes. TA activities are focused on these priorities:
    (1) Improve the ability of state and local governments to develop 
comprehensive and coordinated housing strategies in identifying and 
addressing the housing needs of low income persons living with HIV/AIDS 
that promote housing stability which

[[Page 11723]]

reduces the risk of homelessness and improves access to healthcare and 
other needed support.
    (2) Develop national models that effectively integrate AIDS housing 
strategies into consolidated planning and Continuum of Care planning 
processes.
    (3) Facilitate the development of collaborative endeavors that 
coordinate mainstream resources including federal HOPWA and Ryan White 
CARE Act resources, state, local, private, and philanthropic grant 
resources that promote the sustainability of permanent supportive 
housing, and develop regional training sessions that educate and 
instruct AIDS housing providers in implementing these collaborative 
efforts.
    (4) Develop creative housing models that address the housing and 
supportive service needs of chronically homeless individuals and those 
who are multiple diagnosed living with HIV/AIDS, and that provide 
emergency and transitional housing that results in the provision of 
permanent supportive housing.
    (5) Develop written materials that promote the utilization and 
coordination of Homeless Management Information Systems in the 
provision of HOPWA-assisted housing and supportive services for 
homeless persons.
    (6) Develop technical assistance plans in collaboration with HUD 
field office oversight for local HOPWA-assisted housing programs. It is 
estimated that up to 40 percent of HOPWA TA funds will be made 
available for this purpose.
    (7) Develop a strategy to facilitate implementation of the HUD-IRS 
agreement that promotes the Earned Income Tax Credit. Disseminate 
information that will enable HOPWA grantees and AIDS housing and 
service organizations to assist low-income persons in receiving the 
financial savings on their annual taxes.
    e. Youthbuild TA. Youthbuild TA funds are available to provide 
appropriate training, information, and technical assistance to 
federally funded Youthbuild programs and to assist HUD in the 
management, supervision, and coordination of such Youthbuild programs. 
If the youth population includes persons who are limited English 
proficient, instructional materials for distribution may need to be 
translated in other languages than English. If translated documents are 
unavailable, oral interpreters should be provided during on-site and 
telephone assistance and while conducting training. TA activities that 
result in measurable performance outputs and outcomes are focused on 
the following priorities:
    (1) Improve the management and implementation of Youthbuild 
programs by providing on-site and telephone assistance, preparing 
appropriate instruction materials, and conducting training workshops on 
key aspects of the Youthbuild program.
    (2) Improve Youthbuild program applications by providing assistance 
to eligible applicants in the preparation of their grant applications, 
giving priority to community-based organizations in the provision of 
this assistance.
    (3) Strengthen Youthbuild program design by facilitating peer-to-
peer assistance for Youthbuild grantee staff and disseminating best 
program practices that are identified through training workshops, peer-
to-peer assistance, and on-site TA.
    (4) Assist HUD in the management, supervision, and coordination of 
Youthbuild programs by preparing handbooks or printed materials to 
provide guidance to Youthbuild grantees and by collecting and analyzing 
performance evaluation data from Youthbuild grantees.
    (5) Assist Youthbuild applicants with understanding the Grants.gov 
registration and application submission process so they are prepared to 
submit electronic applications and assist HUD in increasing the number 
of applicants fully registered at Grants.gov.
2. DUNS Requirement
    Refer to the General Section for information regarding the DUNS 
requirement. Applicants need to obtain a DUNS number to receive an 
award from HUD.
3. Other Eligibility Requirements
    All applicants requesting funding from programs under this NOFA 
must be in compliance with the applicable threshold requirements found 
in the General Section. Applicants that do not meet these requirements 
will be ineligible for funding.
4. False Statements
    An applicant's 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.
5. Environmental Review
    Most activities under the CD-TA program are categorically excluded 
and not subject to environmental review under 24 CFR 50.19(b)(9) or 
(13), but in the case of CHDO (HOME) TA eligible activities, a proposal 
for payment of rent as part of CHDO operational costs will be subject 
to environmental review by HUD under 24 CFR part 50. If an applicant 
proposes to assist CHDO operating expenses that include rent, the 
application constitutes an assurance that the applicant and CHDO will 
assist HUD to comply with 24 CFR part 50; will supply HUD with all 
available and relevant information to perform an environmental review 
for the proposed property to be rented; will carry out mitigating 
measures required by HUD or select an alternate property; and will not 
lease or rent, construct, rehabilitate, convert or repair the property, 
or commit or expend HUD or non-HUD funds for these activities on the 
property to be rented, until HUD has completed an environmental review 
to the extent required by 24 CFR part 50. The results of the 
environmental review may require that the proposed property be 
rejected.

IV. Application and Submission Information

    A. Addresses to Request Application Package. Applications must be 
received and validated by Grants.gov no later than 11:59:59 PM Eastern 
time on the application due date of May 18, 2006. HUD must receive 
paper copy applications from applicants that received a waiver no later 
than 11:59:59 PM on the application deadline date. See the General 
Section for application submission and timely receipt procedures and 
for instructions on how to request a waiver. Paper applications will 
not be accepted unless the applicant has received a waiver of the 
electronic submission requirement.
    B. Content and Form of Application Submission. Applicants must 
submit a separate application for each National TA and Local TA area 
program for which they are applying. For example, an applicant for 
National TA for HOME and for Local TA in three field office 
jurisdictions would submit four separate and distinct applications.
    A completed application consists of an application submitted by an 
authorized official of the organization and contains all relevant 
sections of the application, as shown in the checklist below in Section 
IV.B.4.
1. Number of Copies
    See General Section. This information will be included in approval 
letters to applicants submitting a waiver request.
2. Page Limitation
    Narratives addressing Factors 1-5 are limited to no more than 25 
typed pages. That is, reviewers will not review more than 25 pages for 
all five factors combined, except that the page limit

[[Page 11724]]

does not include the Form HUD-96010, Logic Model.
3. Prohibition on Materials Not Required
    Materials other than what is requested in this NOFA are prohibited. 
Reviewers will not consider resumes, charts, letters, or any other 
documents attached to the application.
4. Checklist for Application Submission
    Applicants submitting electronic copies should follow the 
procedures in Section IV.F. of the General Section. The following 
checklist is provided as a guide to help ensure that you submit all the 
required elements. For applicants receiving a waiver of the electronic 
submission, the paper submission must be in the order provided below. 
All applicants should enter the applicant name, DUNS number, and page 
numbers on the narrative pages of the application.

--SF-424, Application for Federal Assistance (from General Section)
--An Application Cover Page indicating in bold (a) the type of TA 
proposed in the application whether HOME National, CHDO National, CHDO 
Local, Homeless National, Homeless Local, HOPWA National, or Youthbuild 
National; (b) the amount of funds requested; and (c) for Local TA, the 
jurisdiction proposed in the application.
--A one-page Summary describing (a) each major component of the 
proposed TA approach; (b) the proposed cost of each major component; 
and (c) whether the component is integrally related to another 
component in order to be successful.
--Narrative addressing Factors 1-5
--HUD-96010, Logic Model
--HUD-424-CB, Grant Application Detailed Budget Form (from General 
Section)
--HUD-424-CBW, Detailed Budget Worksheet for Non-Construction Projects 
(from General Section)
--If applying for CHDO (HOME) TA, statement as to whether the 
organization proposes to pass through funds to new CHDOs.
--If applying for the CHDO (HOME) TA, a certification as to whether the 
organization qualifies as a primarily single-state provider under 
section 233(e) of the Cranston-Gonzales Affordable Housing Act.
--SF-LLL, Disclosure of Lobbying Activities (from General Section)
--HUD-2880, Applicant/Recipient Disclosure/Update Report (from General 
Section)
--SF-424, Supplement, Survey on Equal Opportunity for Applicants
--HUD-96011, FacsimileTransmittal (required for electronic submissions 
of third party documents)

    C. Submission Dates and Times. The application submission date is 
May 18, 2006.
    D. Intergovernmental Review. Intergovernmental review is not 
applicable to CD-TA applications.
    E. Funding Restrictions. An organization may not provide assistance 
to itself. An organization may not provide assistance to another 
organization with which it contracts or sub-awards funds to carry out 
activities under the TA award.
    Funding from HOME and from CHDO (HOME) TA to any single eligible 
organization (excluding funds for organizational support and housing 
education ``passed through'' to CHDOs), whether as an applicant or sub-
recipient is limited to not more than 20 percent of the operating 
budget of the recipient organization for any one-year period of each 
cooperative agreement. In addition, funding under either HOME or CHDO 
(HOME) TA to any single organization is limited to 20 percent of the 
$9,900,000 made available for HOME and CHDO (HOME) TA in FY2006.
    Not less than 40 percent of the approximately $7,920,000 for CHDO 
(HOME) shall be made available for eligible TA providers that have 
worked primarily in one state. HUD will consider an applicant as a 
primarily single state TA provider if it can document that more than 50 
percent of its past activities in working with CHDOs or similar 
nonprofit and other organizations (on the production of affordable 
housing, revitalization of deteriorating neighborhoods, and /or the 
delivery of technical assistance to these groups) was confined to the 
geographic limits of a single state.
    No fee or profit may be paid to any recipient or sub-recipient of 
an award under this CD-TA NOFA.
    F. Other Submission Requirements. The General Section describes 
application submission procedures and how applicants may obtain proof 
of timely submission.

V. Application Review Information

    A. Criteria. The maximum number of points to be awarded for a CD-TA 
application is 100. The minimum score for an application to be 
considered for funding is 75 with a minimum of 20 points on Factor 5. 
The CD-TA program is not subject to bonus points, as described in the 
General Section.
    Points are assigned on five factors. When addressing Factors 1-4, 
applicants should discuss the specific TA activities that will be 
carried out during the term of the cooperative agreement. Applicants 
should provide relevant examples to support the proposal, where 
appropriate. Applicants should also be specific when describing the 
communities, populations, and organizations that they propose to serve 
and the specific outcomes expected as a result of the TA.
    Factor 5 relates to the capacity of the applicant and its relevant 
organizational experience. Rating of the ``applicant'' or the 
``applicant's organization and staff'' includes in-house staff and any 
sub-contractors and sub-recipients which are firmly committed to the 
project. In responding to Factor 5, applicants should specify the 
experience, knowledge, skills, and abilities of the applicant's 
organization and staff, and any persons and organizations firmly 
committed to the project.
1. Rating Factor 1: Need/Extent of the Problem (10 Points)
    a. For National TA applications: Sound and extensive understanding 
of need for TA in relation to the priorities listed in Section III C of 
this NOFA as demonstrated by objective information and/or data, such as 
information from HOME Snapshots, current census data, the American 
Housing Survey, or other relevant data sources.
    b. For Local TA applications: Sound and extensive understanding of 
high priority needs for TA in the jurisdiction as demonstrated by 
objective information and/or data, such as information from HOME 
Snapshots, current census data, the American Housing Survey, or other 
relevant data sources.
    In rating this factor, HUD will evaluate the extent to which the 
application demonstrates an understanding of the specific needs for TA 
and supports the description of need with reliable, program-specific, 
quantitative information. Applicants for HOME should, at a minimum, 
draw on HOME Snapshot information to demonstrate PJs' needs, in an area 
or nationwide, for additional training and capacity building. See 
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/snapshot/index.cfm.
2. Rating Factor 2: Soundness of Approach (40 Points)
    a. (25 points) (1) For National TA applications: A sound approach 
for addressing the need for eligible TA activities in relation to the 
priorities listed in Section III C of this NOFA that will result in 
positive outcomes.

[[Page 11725]]

    (2) For Local TA applications: A sound approach for addressing high 
priority needs for TA in the jurisdiction that will result in positive 
outcomes.
    In rating this factor, HUD will evaluate the extent to which the 
application presents and supports a detailed, feasible, practical 
approach for addressing TA needs (Local TA applications) or CD-TA 
program priorities (National TA applications), including techniques, 
timeframes, goals, and intended beneficiaries, and the likelihood that 
these activities will result in positive outcomes.
    b. (10 points) A feasible work plan for designing, organizing, 
managing, and carrying out the proposed TA activities under the demand-
response system.
    In rating this factor, HUD will evaluate the applicant's 
understanding of the demand-response system and the extent to which the 
application demonstrates the efficiency of proposed activities.
    c. (5 points) An effective assistance program to specific 
disadvantaged communities, populations, and/or organizations which 
previously have been underserved and have the potential to participate 
in the CD-TA program (such as the Colonias, an empowerment zone (EZ) 
designated by HUD or the United States Department of Agriculture 
(USDA), an urban or rural renewal community designated by HUD (RC), an 
enterprise community designated in round II by USDA (EC-II), or 
homeless persons and persons with disabilities).
    In rating this factor, HUD will evaluate the extent to which the 
applicant has identified specific disadvantaged or previously 
underserved communities, populations, and organizations and has 
developed an effective strategy for engaging their participation in the 
HOME, CHDO (HOME), Homeless, HOPWA, or Youthbuild program, as 
applicable.
3. Rating Factor 3: Leveraging Resources (10 Points)
    An efficient practical method to transfer manuals, guides, 
assessment forms, other work products, models, and lessons learned in 
its CD-TA activities to other CD-TA grantees and/or HOME, CHDO (HOME), 
Homeless, HOPWA, or Youthbuild program beneficiaries.
    In rating this factor, HUD will evaluate the extent to which the 
application demonstrates a cost-effective means of sharing resources 
developed under the CD-TA activities with a wide audience, including 
sharing information with other TA providers in the CD-TA program.
4. Rating Factor 4: Achieving Results and Program Evaluation (10 
Points)
    a. (5 points) An effective, quantifiable evaluation plan for 
measuring performance using the Logic Model with specific outcome 
measures and benchmarks, including--for HOME applicants--performance 
improvements as measured by the HOME Snapshot indicators.
    In rating this factor, HUD will evaluate the extent to which the 
application has an evaluation plan that includes outcomes and is 
specific, measurable, and appropriate in relation to the activities 
proposed.
    b. (5 points) Successful past performance in administering HUD CD-
TA programs or, for applicants new to HUD's CD-TA Programs, successful 
past performance in providing TA in other community development 
programs. Applicants should include, as applicable, increases in CPD or 
community development program accomplishments as a result of TA (e.g., 
number of homeless people or persons with HIV/AIDS receiving housing 
and services, efficiency or effectiveness of administration of CPD or 
community development programs, number of affordable housing units, 
HOME Snapshot indicators, timeliness of use of CPD or community 
development program funds).
    In rating this factor, HUD will evaluate the extent to which the 
application demonstrates successful past performance that was timely 
and resulted in positive outcomes in the delivery of community 
development TA. HUD will also consider past performance of current CD-
TA providers, including financial and other information in HUD's files.
5. Rating Factor 5: Capacity of the Applicant and Relevant 
Organizational Experience (30 Points) (Minimum for Funding 
Eligibility--20 Points)
    a. (10 points) Recent and successful experience of the applicant's 
organization in providing TA in eligible activities and to eligible 
entities for the HOME, CHDO (HOME), Homeless, HOPWA, or Youthbuild CD-
TA programs, as applicable.
    In rating this factor, HUD will consider the extent to which the 
application demonstrates successful experience within the last four 
years of providing TA related to the applicable CD-TA program.
    b. (10 points) Depth of experience in managing multiple TA tasks, 
to multiple entities, and in more than one geographic area.
    In rating this factor, HUD will consider the extent to which the 
application demonstrates ability to manage TA assignments effectively.
    c. (10 points) Knowledgeable key personnel skilled in providing TA 
in one or more of the eligible activities for HOME, CHDO (HOME), 
Homeless, HOPWA, and/or Youthbuild programs, as applicable; a 
sufficient number of staff or ability to procure qualified experts or 
professionals with the knowledge, skills, and abilities to deliver the 
proposed level of TA in the proposed service area in a timely and 
effective fashion; and an ability to provide CD-TA in a geographic area 
larger than a single city or county.
    In rating this factor, HUD will consider the extent to which the 
application demonstrates the organization has an adequate number of key 
staff or ability to procure individuals with the knowledge of effective 
TA approaches and knowledge of HOME, CHDO (HOME), Homeless, HOPWA, or 
Youthbuild program, as applicable.
    B. Review and Selection Process
1. Review Types
    Two types of reviews will be conducted. First, HUD will review each 
application to determine whether it meets threshold eligibility 
requirements.
    Second, HUD will review and assign scores to applications using the 
Factors for Award noted in Section V.A.
2. Rank Order
    a. Once rating scores are assigned, rated applications submitted 
for each National TA program and for each Local TA program will be 
listed in rank order. Applications within the fundable range (score of 
75+ points with 20+ points for Factor 1) may then be funded in rank 
order under the CD-TA program and service area for which they applied.
    b. For purposes of coordinating activities on a national basis, HUD 
reserves the right to select a single national provider to carry out 
activities, as follows:
    (1) One for HOPWA technical assistance activities, including 
national products and local support;
    (2) One for Continuum of Care technical assistance activities that 
primarily focus on HMIS support;
    (3) One for HOME and one for CHDO technical assistance activities.
3. Threshold Eligibility Requirements
    All applicants requesting CD-TA must be in compliance with the 
applicable threshold requirements found in the General Section and the 
eligibility requirements listed in Section III of this NOFA in order to 
be reviewed, scored, and ranked. Applications that

[[Page 11726]]

do not meet these requirements and applications that were received 
after the submission deadline (see Section IV.F of the General Section) 
will be considered ineligible for funding.
4. Award Adjustment
    In addition to the funding adjustment authority provided for in the 
General Section, HUD reserves the right to adjust funding amounts for 
each CD-TA selectee. The amounts listed in the charts in Section II.A 
are provided to assist applicants to develop Local TA or National TA 
budgets and do not represent the exact amounts to be awarded. Once TA 
applicants are selected for award, HUD will determine the total amount 
to be awarded to any selected applicant based upon the size and needs 
of each of the selected applicant's service areas, the funds available 
for that area and CD-TA program, the number of other CD-TA applicants 
selected in that area or CD-TA program, and the scope of the TA to be 
provided.
    Additionally, HUD may reduce the amount of funds allocated for 
field office jurisdictions to fund National CD-TA providers and other 
CD-TA providers for activities that cannot be fully budgeted for or 
estimated by HUD Headquarters or field offices at the time this NOFA 
was published. HUD may also require selected applicants, as a condition 
of funding, to provide coverage on a geographically broader basis than 
proposed in order to supplement or strengthen the CD-TA network in 
terms of the size of the area covered and types and scope of TA 
proposed.
    If funds remain after all selections have been made, the remaining 
funds may be distributed among field offices for Local TA and/or used 
for National TA, or made available for other CD-TA program 
competitions.

VI. Award Administration Information

    A. Award Notices. HUD will send written notifications to both 
successful and unsuccessful applicants. A notification sent to a 
successful applicant is not an authorization to begin performance.
    After selection, HUD requires that all selected applicants 
participate in negotiations to determine the specific terms of the 
cooperative agreement, including the budget. Costs may be denied or 
modified if HUD determines that they are not allowable, allocable, and/
or reasonable. In cases where HUD cannot successfully conclude 
negotiations with a selected applicant or a selected applicant fails to 
provide HUD with requested information, an award will not be made to 
that applicant. In this instance, HUD may offer an award, and proceed 
with negotiations with the next highest-ranking applicant.
    After selection for funding but prior to executing the cooperative 
agreement, the selected applicant must develop in consultation with the 
GTR, a Technical Assistance Delivery Plan (TADP) for each National TA 
award. The TADP must be approved by the GTR and delineate the tasks for 
each CD-TA program the applicant will undertake during the performance 
period. For Local TA awards and generally for National TA awards, prior 
to undertaking individual tasks, the selected applicant must develop in 
consultation with the GTR a Work Plan for specific activities. The TADP 
and the Work Plans must specify the location of the proposed CD-TA 
activities, the amount of CD-TA funding and proposed activities by 
location, the improved program performance or other results expected 
from the CD-TA activities, and the methodology to be used for measuring 
the success of the CD-TA. A detailed time schedule for delivery of the 
activities, budget summary, budget-by-task, and staffing plan must be 
included in the TADP and Work Plans.
    After selection, but prior to award, applicants selected for 
funding will be required to provide HUD with their written Code of 
Conduct if they have not previously done so and it is recorded on the 
HUD Web site at http://www.hud.gov/offices/adm/grants/codeofconduct/sconduct.cfm.
    B. Administrative and National Policy Requirements. After selection 
for funding but prior to award, applicants must submit financial and 
administrative information to comply with applicable requirements. 
These requirements are found in 24 CFR part 84 for all organizations 
except states and local governments whose requirements are found in 24 
CFR Part 85. Cost principles requirements are found at OMB Circular A-
122 for nonprofit organizations, OMB Circular A-21 for institutions of 
higher education, OMB Circular A-87 for states and local governments, 
and at 48 CFR 31.2 for commercial organizations. Applicants must submit 
a certification from an Independent Public Accountant or the cognizant 
government auditor, stating that the applicant's financial management 
system meets prescribed standards for fund control and accountability.
    See the General Section for requirements for Procurement of 
Recovered Materials.
    The requirements to Affirmatively Further Fair Housing do not 
apply.
    C. Reporting. CD-TA awardees will be required to report to the GTR 
on, at a minimum, a quarterly basis unless otherwise specified in the 
cooperative agreement. As part of the required report to HUD, grant 
recipients must include a completed Logic Model (HUD 96010), which 
identifies output and outcome achievements.

VII. Agency Contacts

    A. For Assistance. Applicants may contact HUD Headquarters at 202-
708-3176, or they may contact the HUD field office serving their area 
shown in Section VII.C. Persons with hearing and speech challenges may 
access the above numbers via TTY (text telephone) by calling the 
Federal Relay Service at 800-877-8339 (this is a toll-free number). 
Information may also be obtained through the HUD website on the 
Internet at http://www.hud.gov.
    B. List of Field Office Addresses. Applicants that receive a waiver 
of the electronic application submission requirements and need to 
submit copies of their application to HUD field offices should consult 
the following website for a listing of the HUD field office addresses 
to send Local TA applications: http://www.hud.gov/offices/cpd/about/staff/fodirectors/index.cfm.
    At the site, the map allows the user to click on an area to obtain 
the field office address and other contact information.

VIII. Other Information

    A. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control numbers 2506-0166 and 
2506-0133. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection displays a currently 
valid OMB control number. Public reporting burden for the collection of 
information is estimated to average 60 hours for the application and 
grant administration. This includes the time for collecting, reviewing, 
and reporting the data. The information will be used for grantee 
selection and monitoring the administration of funds. Response to this 
request for information is required in order to receive the benefits to 
be derived.
    B. HUD Reform Act. The provisions of the HUD Reform Act of 1989 
that apply

[[Page 11727]]

to the CD-TA program are explained in the General Section.

BILLING CODE 4210-01-P

[[Page 11728]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.005


[[Page 11729]]



Community Development Block Grant Program for Indian Tribes and Alaska 
Native Villages

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of the Assistant Secretary for Public and Indian 
Housing, Office of Native American Programs.
    B. Funding Opportunity Title: Community Development Block Grant 
(ICDBG) Program for Indian Tribes and Alaska Native Villages.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number is FR 
5030-N-02. The OMB approval number is 2577-0191.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): The 
Catalog of Federal Assistance (CFDA) Number for the Indian Community 
Development Block Grant program is 14.862.
    F. Dates: Application Deadline: The application submission date is 
May 31, 2006.
    G. Optional, Additional Overview Content Information:
    1. Applicants for funding should carefully review the requirements 
identified in this NOFA and the General Section. Unless otherwise 
stated in this NOFA, the requirements of the General Section apply.
    2. The total approximate amount of funding available for the ICDBG 
program for FY2006 is $59,400,000 less $3,960,000 retained to fund 
Imminent Threat Grants, for a total of $55,440,000. Funds that are 
carried over from previous fiscal years or are recaptured may also be 
used for grant awards under this NOFA.
    3. Eligible applicants are Indian tribes or tribal organizations on 
behalf of Indian tribes. Specific information on eligibility is located 
in Section III.A. of this NOFA.

Full Text of Announcement

I. Funding Opportunity Description

    A. General. Title I of the Housing and Community Development Act of 
1974, which authorizes Community Development Block Grants, requires 
that grants for Indian tribes be awarded on a competitive basis. All 
grant funds awarded in accordance with this NOFA are subject to the 
requirements of 24 CFR part 1003. Applicants within an Area Office of 
Native American Program's (ONAP) geographic jurisdiction compete only 
against each other for that Area ONAP's allocation of funds.
    B. Authority. The authority for this program is Title I of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) 
and the program regulations in 24 CFR part 1003.
    C. Program Description. The purpose of the Community Development 
Block Grant Program for Indian Tribes and Alaska Native Villages 
(ICDBG) is the development of viable Indian and Alaska Native 
communities, including the creation of decent housing, suitable living 
environments, and economic opportunities primarily for persons with 
low- and moderate-incomes as defined in 24 CFR 1003.4. The ONAP in 
HUD's Office of Public and Indian Housing administers the program.
    Projects funded by the ICDBG program must meet the primary 
objective, defined at 24 CFR 1003.2, to principally benefit low- and 
moderate-income persons. Consistent with this objective, not less than 
70 percent of the expenditures of each single purpose grant shall be 
for activities which meet the regulatory criteria at 24 CFR 1003.208 
for:
    1. Area Benefit Activities.
    2. Limited Clientele Activities.
    3. Housing Activities.
    4. Job Creation or Retention Activities.
    ICDBG funds may be used to improve housing stock, provide community 
facilities, improve infrastructure, and expand job opportunities by 
supporting the economic development of the communities, especially by 
nonprofit tribal organizations or local development corporations.
    ICDBG single-purpose grants are distributed as annual competitive 
grants, in response to this NOFA.
    ICDBG imminent threat grants are intended to alleviate or remove 
threats to health or safety that require an immediate solution as 
described at 24 CFR part 1003, subpart E. The problem to be addressed 
must be such that an emergency situation exists or would exist if the 
problem were not addressed.
    You do not have to submit a request for imminent threat funds by 
the deadline established in this NOFA. The deadline applies only to 
applications submitted for assistance under 24 CFR part 1003, subpart 
D, single purpose grants. Imminent threat requests may be submitted at 
any time after NOFA publication, and if the following criteria are met, 
the request may be funded until the amount set aside for this purpose 
is expended:
    1. Independent verification from a third party (i.e., Indian Health 
Service, Bureau of Indian Affairs) of the existence, immediacy and 
urgency of the threat must be provided;
    2. The threat must not be recurring in nature, i.e., it must 
represent a unique and unusual circumstance that has been clearly 
identified by the tribe or village;
    3. The threat must affect or impact an entire service area and not 
solely an individual family or household; and
    4. It must be established that funds are not available from other 
local, state, or Federal sources to address the problem. The tribe or 
village must verify that Federal or local agencies that would normally 
provide assistance for such improvements have no funds available by 
providing a written statement to that effect. The tribe or village must 
also verify in the form of a tribal council resolution (or equivalent) 
that it has no available funds, including Indian Housing Block Grant 
Funds, for this purpose.
    If, in response to a request for assistance, an Area ONAP issues 
you a letter to proceed under the authority of 24 CFR 1003.401(a), then 
your application must be submitted to and approved by the Area ONAP 
before a grant agreement may be executed. Contact your Area ONAP office 
for more information on imminent threat.
    D. Definitions Used in this NOFA.
    1. Adopt. To approve by formal tribal resolution.
    2. Document. To supply supporting written information and/or data 
in the application that satisfies the NOFA requirement. Documentation 
should clearly and concisely support your response to the rating 
factor.
    3. Entity Other than Tribe. A distinction is made between the 
requirements for point award under Rating Factor 3 if a tribe or an 
entity other than the tribe will assume maintenance and related 
responsibilities for projects other than economic development and land 
acquisition to support new housing. Entities other than the tribe must 
have the following characteristics: (a) Must be legally distinct from 
the tribal government; (b) their assets and liabilities cannot be 
considered to be assets and liabilities of the tribal government; (c) 
claims against such entities cannot be made against the tribal 
government; and (d) must have governing boards, boards of directors, or 
groups or individuals similar in function and responsibility to such 
boards which are separate from the tribe's general council, tribal 
council, or business council, as applicable.
    4. Homeownership Assistance Programs. Tribes may apply for 
assistance to provide direct homeownership assistance to low- and 
moderate-income households to: (a) Subsidize interest rates and 
mortgage principal amounts for low- and

[[Page 11730]]

moderate-income homebuyers; (b) finance the acquisition by low- and 
moderate-income homebuyers of housing that is occupied by the 
homebuyers; (c) acquire guarantees for mortgage financing obtained by 
low- and moderate-income homebuyers from private lenders (except that 
ICDBG funds may not be used to guarantee such mortgage financing 
directly, and grantees may not provide such guarantees directly); (d) 
provide up to 50 percent of any down payment required from a low- and 
moderate-income homebuyer; or (e) pay reasonable closing costs 
(normally associated with the purchase of a home) incurred by a low-or 
moderate-income homebuyer.
    5. Leveraged Resources. Leveraged resources are resources that you 
will use in conjunction with ICDBG funds to achieve the objectives of 
the project. Leveraged resources include, but are not limited to: 
tribal trust funds; loans from individuals or organizations; business 
investments; private foundations; state or federal loans or guarantees; 
other grants; and non-cash contributions and donated services. (See 
Rating Factor 4 for documentation requirements for leveraged 
resources.)
    6. Microenterprise Programs. Tribes may apply for assistance to 
operate programs to fund the development, expansion, and stabilization 
of microenterprises. Microenterprises are defined as commercial 
entities with five or fewer employees, including the owner. 
Microenterprise program activities may entail the following assistance 
to eligible businesses: (a) Providing credit, including, but not 
limited to, grants, loans, loan guarantees, and other forms of 
financial support for the establishment, stabilization, and expansion 
of microenterprises; (b) providing technical assistance, advice, and 
business support services to owners of microenterprises and persons 
developing microenterprises; and (c) providing general support, 
including, but not limited to, peer support programs, counseling, child 
care, transportation, and other similar services to owners of 
microenterprises and persons developing microenterprises.
    7. Operations and Maintenance (O&M) for Public Facilities and 
Improvements. While various items of cost will vary in importance and 
significance depending on the type of facility proposed, there are 
items of expense related to the operation of the physical plant which 
must be addressed in a O&M plan (tribe assumes responsibility) or in a 
letter of commitment (entity other than tribe will assume these 
responsibilities). Although the tribe no longer has to submit the O&M 
plan with the application, it must provide a written statement that it 
has adopted an O&M plan and that the plan addresses several items. 
These items include daily or other periodic maintenance activities; 
repairs such as replacing broken windows; capital improvements or 
replacement reserves for repairs such as replacing the roof; fire and 
liability insurance (may not be applicable to most types of 
infrastructure projects such as water and sewer lines); and security 
(may not be applicable to many types of infrastructure projects such as 
roads). (Please note that while it is possible that the service 
provider may, in its agreement with a tribe, commit itself to cover 
certain or all facility O&M costs, these costs do not include the 
program service provision costs related to the delivery of services 
(social, health, recreational, educational or other) which may be 
provided in a facility).
    8. Outcomes. The ultimate impact you hope to achieve with the 
proposed project. Outcomes should be quantifiable measures or 
indicators and identified in terms of the change in the community, 
people's lives, changes in economic status, etc. Common outcomes could 
include increases in percent of housing units in standard condition, 
homeownership rates, or employment rates.
    9. Outputs. Outputs are the direct products of a program's 
activities. They are usually measured in terms of the volume of work 
accomplished, such as the number of low-income households served, 
number of units constructed or rehabilitated, linear feet of curbs and 
gutters installed, or number of jobs created or retained. Outputs 
should be clear enough to allow HUD to monitor and assess your proposed 
project's progress if funded.
    10. Project Cost. The total cost to implement the project. Project 
costs may be covered by both ICDBG and non-ICDBG funds and resources.
    11. Standard Housing/Standard Condition. Housing that meets the 
housing quality standards (HQS) adopted by the applicant. The HQS 
adopted by the applicant must be at least as stringent as the Section 8 
HQS contained in 24 CFR 982.401 (Section 8 Tenant-Based Assistance: 
Housing Choice Voucher program) unless the ONAPs approve less stringent 
standards based on a determination that local conditions make the use 
of Section 8 HQS unfeasible. You may submit, before the application 
submission deadline, a request for the approval of standards less 
stringent than Section 8 HQS. If you submit the request with your 
application, you should not assume automatic approval by the ONAPs. The 
adopted standards must provide for (a) a safe house, in physically 
sound condition with all systems performing their intended design 
functions; (b) a livable home environment and an energy efficient 
building and systems that incorporate energy conservation measures; and 
(c) an adequate space and privacy for all intended household members.
    12. Statement. When a ``written statement'' is requested for any 
threshold, program requirement, or rating factor, the applicant must 
address in writing the specific item cited.
    13. Tribe. The word ``tribe'' means an Indian tribe, band, group or 
nation, including Alaska Indians, Aleuts, Eskimos, Alaska Native 
Villages, Alaska Native Claims Settlement Act (ANCSA) Village 
Corporations, and ANCSA Regional Corporations.

II. Award Information

    A. Available Funds. The FY2006 appropriation for the ICDBG program 
is $59,400,000, less $3,960,000 retained to fund Imminent Threat 
Grants, for a total of $55,440,000. Funds that are carried over from 
previous fiscal years or are recaptured may also be used for grant 
awards under this NOFA. In accordance with the provisions of 24 CFR 
part 1003, subpart E, we have retained $3,960,000 of the FY 2006 
appropriation to meet the funding needs of imminent threat requests 
submitted to any of the Area ONAPs. The grant ceiling for imminent 
threat requests for FY 2006 is $425,000. This ceiling has been 
established pursuant to the provisions of 24 CFR 1003.400(c).
    B. Allocations to Area ONAPs. The requirements for allocating funds 
to Area ONAPs responsible for program administration are found at 24 
CFR 1003.101. Following these requirements, based on an appropriation 
of $59,400,000 less $3,960,000 for Imminent Threat grants, the 
allocations for FY2006 are approximately as follows:

 
 
 
Eastern/Woodlands.......................................      $6,325,737
Southern Plains.........................................      11,864,746
Northern Plains.........................................       7,917,788
Southwest...............................................      20,525,637
Northwest...............................................       2,891,489
Alaska..................................................       5,914,603
                                                         ---------------
    Total...............................................      55,440,000
 


    C. Compliance with regulations, guidelines, and requirements: 
Applicants awarded a grant under this NOFA are required to comply with 
the

[[Page 11731]]

regulations, guidelines, and requirements with respect to the 
acceptance and use of Federal funds for this Federally-assisted 
program. Also, the grantee, by accepting the grant, provides assurance 
with respect to the grant that:
    1. It possesses the legal authority to apply for the grant and 
execute the proposed program.
    2. The governing body has duly authorized the filing of the 
application, including all understandings and assurances contained in 
the application and has directed and authorized the person identified 
as the official representative of the applicant to act in connection 
with the application and to provide such additional information as may 
be required.
    3. It will comply with HUD general administration requirements in 
24 CFR Part 85.
    4. It will comply with the requirements of Title II of Public Law 
90-284 (25 U.S.C. 1301), the Indian Civil Rights Act. Federally 
recognized Indian tribes and their instrumentalities are subject to the 
requirements of: Title II of the Civil Rights Act of 1964, known as the 
Indian Civil Rights Act; Section 109 prohibitions against 
discrimination based on age, sex, religion and disability; the Age 
Discrimination Act of 1975; and Section 504 of the Rehabilitation Act 
of 1973.
    5. It will comply with the Indian preference provisions required in 
24 CFR 1003.510.
    6. It will establish written safeguards to prevent employees from 
using positions funded under the ICDBG programs for a purpose that is, 
or gives the appearance of being, motivated by private gain for 
themselves, their immediate family, or business associates. Employees 
are not otherwise limited from benefiting from program activities for 
which they are otherwise eligible.
    7. Neither the applicant nor its principals are presently excluded 
from participation in any HUD programs, as required by 24 CFR part 24.
    8. The chief executive officer or other official of the applicant 
approved by HUD:
    a. Consents to assume the status of a responsible Federal official 
under the National Environmental Policy Act of 1969 insofar as the 
provisions of the Act apply to the applicant's proposed program 
pursuant to 24 CFR 1003.605.
    b. Is authorized and consents on behalf of the applicant and him/
herself to accept the jurisdiction of the Federal courts for the 
purpose of enforcement of his/her responsibilities as such an official.


    Note: Applicants for whom HUD has approved a claim of incapacity 
to accept the responsibilities of the Federal government for 
purposes of complying with the environmental review requirements of 
24 CFR part 58 pursuant to 24 CFR 1003.605 are not subject to the 
provision of paragraph 8.


    9. It will comply with the requirements of Section 3 of the Housing 
and Urban Development Act of 1968 and the regulations in 24 CFR part 
135 (Economic Opportunities for Low and Very Low Income Persons) to the 
maximum extent consistent with, but not in derogation of, compliance 
with Section 7(b) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450e(b)). Two points will be awarded under 
Rating Factor 3 in FY2006 for applicants who demonstrate how they will 
incorporate Section 3 principles into their proposed projects.
    10. It will comply with the requirements of the Fire Authorization 
Administration Act of 1992 (Pub. L. 102-522).
    11. It will comply with 24 CFR, part 4, subpart A, showing full 
disclosure of all benefits of the project as collected by Form HUD-
2880, Applicant/Recipient Disclosure Report.
    12. Prior to submission of its application to HUD, the grantee has 
met the citizen participation requirements which includes following 
traditional means of member involvement, as required in 24 CFR 
1003.604.
    13. It will administer and enforce the labor standards requirements 
prescribed in 24 CFR 1003.603.
    14. The project has been developed so that not less than 70 percent 
of the funds received under this grant will be used for activities that 
benefit low- and moderate-income persons.
    15. Executive Order 13202, ``Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects'' applies to 
projects funded under this NOFA. See the General Section for more 
information.
    D. Period of Performance. The period of performance for any grant 
awarded under this NOFA must be included in the Implementation 
Schedule, HUD-4125, and approved by HUD.

III. Eligibility Information

    A. Eligible Applicants. Eligible applicants are Indian tribes or 
tribal organizations on behalf of Indian tribes. To apply for funding 
you must be eligible as an Indian tribe (or as a tribal organization), 
as required by 24 CFR 1003.5, by the application submission date.
    Tribal organizations are permitted to submit applications under 24 
CFR 1003.5(b) on behalf of eligible tribes when one or more eligible 
tribe(s) authorize the organization to do so under concurring 
resolutions. The tribal organization must itself be eligible under 
Title I of the Indian Self-Determination and Education Assistance Act. 
The Bureau of Indian Affairs (BIA) or the Indian Health Service, as 
appropriate, must make a determination of such eligibility. This 
determination must be provided to the Area ONAP by the application 
submission date.
    If a tribe or tribal organization claims that it is a successor to 
an eligible entity, the Area ONAP must review the documentation to 
determine whether it is in fact the successor entity.
    Applicants from within Alaska: Due to the unique structure of 
tribal entities eligible to submit ICDBG applications in Alaska, and as 
only one ICDBG application may be submitted for each area within the 
jurisdiction of an entity eligible under 24 CFR 1003.5, a tribal 
organization that submits an application for activities in the 
jurisdiction of one or more eligible tribes or villages must include a 
concurring resolution from each such tribe or village authorizing the 
submission of the application. Each such resolution must also indicate 
that the tribe or village does not itself intend to submit an ICDBG 
application for that funding round. The hierarchy for funding priority 
continues to be the IRA Council, the Traditional Village Council, the 
ANCSA Village Corporation, and the ANCSA Regional Corporation.
    On November 25, 2005 (70 FR 71194), the BIA published a Federal 
Register notice entitled, ``Indian Entities Recognized and Eligible to 
Receive Services From the United States Bureau of Indian Affairs.'' 
This notice provides a listing of Indian Tribal Entities in Alaska 
found to be Indian tribes as the term is defined and used in 25 CFR 
part 83. Additionally, pursuant to Title I of the Indian Self-
Determination and Education Assistance Act, ANCSA Village Corporations 
and Regional Corporations are also considered tribes and therefore 
eligible applicants for the ICDBG program.
    Any questions regarding eligibility determinations and related 
documentation requirements for entities in Alaska should be referred to 
the Alaska Area ONAP prior to the application submission date. (See 24 
CFR 1003.5 for a complete description of eligible applicants.)

[[Page 11732]]

    B. Cost Sharing or Matching. Cost sharing or matching is not 
required under this grant; however, applicants who leverage this grant 
with other funds receive points. See Section V, (A) Rating Factor 4.
    C. Other.
1. HUD Requirement
    Applicants for single purpose grants must comply with the HUD 
Threshold Requirements listed in the General Section, Section III, C. 
in order to receive an award of funds.
2. Program and Project Specific Requirements
    a. Low- and Moderate-Income Status for Rehabilitation Projects. 
Your application must contain information that shows that all 
households that receive ICDBG grant assistance under a housing 
rehabilitation project are of low- and moderate-income status.
    b. Housing Rehabilitation Cost Limits. Grant funds spent on 
rehabilitation per unit must fall within the following limits for each 
Area ONAP jurisdiction:


 
 
 
Eastern/Woodland:.......................................         $35,000
Southern Plains:........................................         $35,000
Northern Plains:........................................         $50,000
Southwest:..............................................         $40,000
Northwest:..............................................         $40,000
Alaska:.................................................         $55,000
                                                         ---------------
 


    c. Commitment to Housing for Land Acquisition to Support New 
Housing Projects. For land acquisition to support new housing projects, 
your application must include evidence of a financial commitment and an 
ability to construct at least 25 percent of the housing units on the 
land proposed for acquisition. This evidence must consist of one (or 
more) of the following: a firm or conditional commitment to construct 
(or to finance the construction of) the units; documentation that an 
approvable application for the construction of these units has been 
submitted to a funding source or entity; or, documentation that these 
units are specifically identified in the Indian Housing Plan (IHP), 
(one-Year Financial Resources Narrative; Table 2, Financial Resources, 
Part I., Line 1E; and Table 2, Financial Resources, Part II) submitted 
by or on behalf of the applicant as an affordable housing resource with 
a commensurate commitment of Indian Housing Block Grant (IHBG) (also 
known as NAHBG) resources. If the IHP for the IHBG (also known as 
NAHBG) program year that coincides with the implementation of the ICDBG 
proposed project has not been submitted, you must provide an assurance 
that the IHP will specifically reference the proposed project. The IHP 
submission must occur within three years from the date the land is 
acquired and ready for development.
    d. Health Care Facilities. If you propose a facility that would 
provide health care services funded by the Indian Health Service (IHS), 
you must assure that the facility meets all applicable IHS facility 
requirements. We recognize that tribes that are contracting services 
from the IHS may establish other facility standards. These tribes must 
assure that these standards at least compare to nationally accepted 
minimum standards.
3. Program Related Threshold Requirements
    a. Outstanding ICDBG Obligation. According to 24 CFR 1003.301(a), 
an applicant who has an outstanding ICDBG obligation to HUD that is in 
arrears, or one that has not agreed to a repayment schedule will be 
disqualified from the competition.
    b. Compliance with Fair Housing and Civil Rights Laws. Applicants 
and subrecipients that are not federally recognized Indian tribes or 
their instrumentalities are subject to the Civil Rights threshold 
requirements found in the General Section. Federally recognized Indian 
tribes and their instrumentalities are subject to the requirements of: 
Title II of the Civil Rights Act of 1964, known as the Indian Civil 
Rights Act; Section 109 prohibitions against discrimination based on 
age, sex, religion and disability; the Age Discrimination Act of 1975; 
and Section 504 of the Rehabilitation Act of 1973. To be eligible to 
apply, there must be no outstanding violations of these civil rights 
provisions at the time of application.
4. Project Specific Threshold Requirements
    Applicants must meet all parts of the project specific threshold 
applicable to the proposed project. The thresholds are:
    a. Housing Rehabilitation Project Thresholds. In accordance with 24 
CFR 1003.302(a), for housing rehabilitation projects, you must adopt 
rehabilitation standards and rehabilitation policies before you submit 
an application. You must state that you have in place rehabilitation 
policies and standards that have been adopted in accordance with tribal 
law or practice. Do not submit your policies or standards with the 
application. You must also provide a written statement that project 
funds will be used to rehabilitate HUD-assisted houses only when the 
homebuyer's payments are current or the homebuyer is current in a 
repayment agreement except in emergency situation. For purposes of 
meeting this threshold, HUD-assisted houses are houses that are owned 
and managed by the tribe or tribally designated housing entity. The 
ONAP Administrator on a case-by-case basis may approve exceptions to 
this requirement.
    b. New Housing Construction Project Thresholds.
    1. In accordance with 24 CFR 1003.302(b), new housing construction 
can only be implemented when necessary through a Community Based 
Development Organization (CBDO). Eligible CBDOs are described in 24 CFR 
1003.204(c). You must provide documentation establishing that the 
entity implementing your new housing construction project qualifies as 
a CBDO.
    2. In accordance with 24 CFR 1003.302, you must have a current, in 
effect, tribal resolution adopting and identifying construction 
standards.
    3. In accordance with 24 CFR 1003.302, you must also include in 
your application documentation supporting the following:
    (a) All households to be assisted under a new housing construction 
project must be of low-or moderate-income status;
    (b) No other housing is available in the immediate reservation area 
that is suitable for the households to be assisted;
    (c) No other sources including an IHBG (also known as NAHBG) can 
meet the needs of the household(s) to be served; and
    (d) Rehabilitation of the unit occupied by the household(s) to be 
assisted is not economically feasible, or the household(s) to be housed 
currently is in an overcrowded house (more than one household per 
house), or the household to be assisted has no current residence.
    c. Economic Development Project Thresholds. In accordance with 24 
CFR 1003.302, for economic development assistance projects, you must 
provide a financial analysis. The financial analysis must demonstrate 
that the project is financially feasible and the project has a 
reasonable chance of success. The analysis must also demonstrate the 
public benefit resulting from the ICDBG assistance. The more funds you 
request, the greater public benefit you must demonstrate. The analysis 
must also establish that to the extent practicable, reasonable 
financial support will be committed from non-federal sources prior to 
disbursement of federal funds; any grant amount

[[Page 11733]]

provided will not substantially reduce the amount of non-federal 
financial support for the activity; not more than a reasonable rate of 
return on investment is provided to the owner; and that grant funds 
used for the project will be disbursed on a pro-rata basis with amounts 
from other sources.
    d. There are no project specific thresholds for Land Acquisition to 
Support New Housing, Homeownership Assistance, Public Facilities and 
Improvements, and Microenterprise Projects.
5. Public Service Projects
    Because there is a regulatory 15 percent cap on the amount of grant 
funds that may be used for public service activities, you may not 
receive a single purpose grant solely to fund public service 
activities. Your application, however, may contain a public service 
component for up to 15 percent of the total grant. This component may 
be unrelated to the other project(s) included in your application. If 
your application does not receive full funding, we will reduce the 
public service allocation proportionately so that it comprises no more 
than 15 percent of the total grant award. In making such reductions, 
the feasibility of the proposed project will be taken into 
consideration. If a proportionate reduction of the public service 
allocation renders such a project infeasible, the project will not be 
funded. A complete description of Public Service Projects is located at 
24 CFR part 1003.201.
6. Restrictions on Eligible Activities
    A complete description of activities that are eligible for ICDBG 
funding are identified at 24 CFR part 1003, subpart C. Please note that 
although this subpart has not yet been revised to include the 
restrictions on activity eligibility that were added to Section 105 of 
the CDBG statute by Section 588 of the Quality Housing and Work 
Responsibility Act of 1998, these restrictions apply. Specifically, 
ICDBG funds may not be used to assist directly in the relocation of any 
industrial or commercial plant, facility, or operation, from one area 
to another, if the relocation is likely to result in a significant loss 
of employment in the labor market area from which the relocation 
occurs. Rating Factors 2 and 3 included under Section V. specify many 
of the activities listed as eligible under part 1003, subpart C. Those 
listed include new housing construction (in certain circumstances as 
described in Rating Factors 2 and 3 in Section V.), housing 
rehabilitation, land acquisition to support new housing, homeownership 
assistance, public facilities and improvements, economic development, 
and microenterprise programs. However, the following eligible 
activities not clearly identified by the rating factors may be proposed 
and rated as described below. During the past few years, many tribes 
have experienced high incidences of mold growth in tribal homes and 
buildings. Renovation of affected buildings is eligible under housing 
rehabilitation or public facility improvement projects.
    a. Acquisition of property. This activity can be proposed as Land 
to Support New Housing or as part of New Housing Construction, Public 
Facilities and Improvements, or Economic Development depending on the 
purpose of the land acquisition to support new construction.
    b. Assistance to Institutions of Higher Learning. If such entities 
have the capacity, they can help the ICDBG grantees to implement 
eligible projects.
    c. Assistance to Community Based Development Organizations (CBDOs). 
Grantees may provide assistance to these organizations to undertake 
activities related to neighborhood revitalization, community economic 
development, or energy conservation.
    d. Clearance, Demolition. These activities can be proposed as part 
of Housing Rehabilitation, New Housing Construction, Public Facilities 
and Improvements, Economic Development, or Land to Support New Housing. 
Sec.  1003.201(d) states ``Demolition of HUD-assisted housing units may 
be undertaken only with the prior approval of HUD.''
    e. Code Enforcement. This activity can be proposed as Housing 
Rehabilitation. The activity must comply with the requirements at 24 
CFR 1003.202.
    f. Comprehensive Planning. This activity is eligible, and can be 
proposed, as part of any otherwise eligible project to the extent 
allowed by the 20 percent cap on the grant for planning/administration.
    g. Energy Efficiency. Associated activities can be proposed under 
Housing Rehabilitation or Public Facilities and Improvements depending 
upon the type of energy efficiency activity.
    h. Lead-Based Paint Evaluation and Abatement. These activities can 
be proposed under Housing Rehabilitation.
    i. Non-Federal Share. ICDBG funds can be used as a match for any 
non-ICDBG funding to the extent allowed by such funding and the 
activity is eligible under 24 CFR part 1003, subpart C.
    j. Privately and Publicly Owned Commercial or Industrial Buildings 
(real property improvements). These activities can be proposed under 
Economic Development. Privately owned commercial rehabilitation is 
subject to the requirements at 24 CFR 1003.202.
    k. Privately Owned Utilities. Assistance to privately owned 
utilities can be proposed under Public Facilities and Improvements.
    l. Removal of Architectural Barriers. This includes removing 
barriers that restrict mobility and access for elderly and persons with 
disabilities. In addition, accommodation should be made for persons 
with all varieties of disabilities to enable them to benefit from these 
activities. This activity can be proposed under Housing Rehabilitation 
or Public Facilities and Improvements depending upon the type of 
structure where the barrier will be removed.
7. Application Screening
    The Area ONAP will screen applications for single purpose grants. 
The Area ONAP will reject an application that fails this screening and 
will return the application unrated. The Area ONAP will accept your 
application if it meets all the criteria listed below as items a 
through f.
    a. Your application is received or submitted in accordance with the 
requirements set forth under Application and Submission Procedures in 
Section IV of this NOFA;
    b. You are eligible;
    c. The proposed project is eligible;
    d. Your application contains substantially all the components 
specified in Section IV. B. of this NOFA;
    e. Your application shows that at least 70 percent of the grant 
funds are to be used for activities that benefit low- and moderate-
income persons, in accordance with the requirements of 24 CFR 1003.208. 
For screening purposes only, HUD will use the 2000 census data if the 
data you submitted does not meet this screening requirement; and
    f. Only one ICDBG application may be submitted for each area within 
the jurisdiction of an entity eligible under 24 CFR 1003. An 
application may include more than one project, but it cannot exceed the 
grant ceilings listed in Section IV.

IV. Application and Submission Information

A. Addresses To Request Application Package

    Applicants are required to submit an electronic application unless 
they

[[Page 11734]]

receive a waiver of the requirement. See the General Section for 
information on electronic application submission, procedures for 
requesting a waiver, and timely submission and receipt requirements. 
All information required to complete a valid application is included in 
the General Section and this NOFA. Before preparing an application, 
applicants should carefully review the program description, ineligible 
activities, program and threshold requirements, and the General 
Section. Applicants should carefully review each rating factor listed 
in Section V of this NOFA, before writing a narrative response.
    Copies of the General Section and ICDBG NOFA may be downloaded from 
the grants.gov Web site at http://www.grants.gov/Apply. If you 
experience any problems with downloading the General Section or the 
ICDBG NOFA, call the Grants.gov help desk at 800-518-GRANTS.

B. Content and Form of Application Submission.

1. Application Information
    Indicate on the first page of each project submission, the type of 
project(s) being proposed: Economic Development, Homeownership 
Assistance, Housing Rehabilitation, Land Acquisition to Support New 
Housing, Microenterprise Programs, New Housing Construction or Public 
Facilities and Improvements. This will help to ensure that the 
appropriate project specific thresholds and rating subfactors will be 
applied. Narrative statements submitted to support your application 
should be individually labeled to reflect the item the narrative is 
responding to, e.g. Factor 1, Factor 2, etc. Applicants should not 
submit third party documents, such as audits, resolutions, policies, 
unless specifically asked to submit them. Additional information 
regarding electronic submissions can be found in the General Section.
    If you received a waiver to the electronic application submission 
requirements and are submitting a paper application, please use 
separate tabs for each rating factor and rating subfactor. In order to 
be rated, make sure the response is beneath the appropriate heading. 
Keep the responses in the same order as the NOFA. It is recommended 
that you limit your narrative explanations to 200 words or less and 
provide the necessary data such as a market analysis, a pro forma, 
housing survey data, etc., that support the response. Include all 
relevant material to a response under the same tab. Only include 
documentation that will clearly and concisely support your response to 
the rating criteria.
    HUD suggests that you do a preliminary rating for your project, 
providing a score according to the point system in Section V of this 
NOFA. This will show you how reviewers might score your project, and 
identify its strengths and weaknesses. This will help determine where 
improvements can be made prior to its submission. An application 
checklist has been posted at http://www.hud.gov/offices/adm/grants/fundsavail.cfm under the ICDBG program for your use in verifying that 
you have completed all required components.
2. Content of Application, Forms, and Required Elements
    The applicant must respond in narrative form to all five of the 
rating factors listed in Section V.A. of this NOFA. In addition, the 
applicant must submit all of the forms required in this section, along 
with other data listed below.
    a. Demographic data. You may submit data that are unpublished and 
not generally available in order to meet the requirements of this 
section. Your application must contain a statement that the following 
criteria have been met:
    (1) Generally available published data are substantially inaccurate 
or incomplete;
    (2) Data that you submit have been collected systematically and are 
statistically reliable;
    (3) Data are, to the greatest extent feasible, independently 
verifiable; and
    (4) Data differentiate between reservation and BIA service area 
populations, when applicable.
    b. Publication of Community Development Statement. You must prepare 
and publish or post the community development statement portion of your 
application according to the citizen participation requirements of 24 
CFR 1003.604. You may post or publish a statement that indicates that 
the entire Community Development Statement is available for public 
viewing and include the location, dates, and time it will be available 
for review.
    c. Application Submission. Your application must contain the items 
listed below.
    (1) Application for Federal Assistance (SF-424);
    (2) SF-424 SUPP, Supplement Survey on Ensuring Equal Opportunity 
for Applicants;
    (3) Applicant/Recipient Disclosure/Update Report (HUD-2880); and
    (4) Acknowledgement of Application Receipt (HUD-2993). (Only for 
applicants granted a waiver of the electronic submission requirements 
and who are submitting a paper application)
    If the application has been submitted by a tribal organization as 
defined in 24 CFR 1003.5(b), on behalf of an Indian tribe, you must 
submit concurring resolutions from the Indian tribe stating that the 
tribal organization is applying on the tribe's behalf. Applicants must 
submit the resolution by attaching it as a file to your electronic 
application submission, or sending it via facsimile transmittal.
    The other required items are as follows:
    (5) Community Development Statement that includes:
    (a) Components that address the general threshold requirement and 
the relevant project specific thresholds and rating factors;
    (b) A schedule for implementing the project (Form HUD-4125, 
Implementation Schedule); and
    (c) Cost information for each separate project, including specific 
activity costs, administration, planning, technical assistance, and 
total HUD share (Form HUD-4123, Cost Summary).
    (6) A map showing project location, if appropriate.
    (7) If the proposed project will result in displacement or 
temporary relocation, a statement that identifies:
    (a) The number of persons (families, individuals, businesses, and 
nonprofit organizations) occupying the property on the date of the 
submission of the application (or date of initial site control, if 
later);
    (b) The number to be displaced or temporarily relocated;
    (c) The estimated cost of relocation payments and other services;
    (d) The source of funds for relocation; and
    (e) The organization that will carry out the relocation activities.
    (8) If applicable, evidence of the disclosure required by 24 CFR 
1003.606(e) regarding conflict of interest.
    (9) If applicable, the demographic data statement described in 
Section IV.B. and Section V.A., Rating Factor 2 of this NOFA. The data 
accompanying the statement must identify the total number of persons 
benefiting from the project and the total number of low- and moderate-
income persons benefiting from the project. To be considered, 
supporting documentation must include all of the following: a sample 
copy of a completed survey form, an explanation of the methods used to 
collect the data, and a listing of incomes by household.

[[Page 11735]]

    (10) Optional submissions are:
    (a) You Are Our Client Grant Applicant Survey (HUD 2994-A) 
(Optional); and
    (b) Logic Model, HUD-96010.
3. Planning and Administrative Costs
    Applicants must report project planning and administration costs on 
Form HUD-4123, Cost Summary. Planning and administrative costs cannot 
exceed 20 percent of the grant. The following criteria applies to 
planning and administrative costs:
    a. Planning and administrative activities may only be funded in 
conjunction with a physical development activity.
    b. If you are submitting an application for more than one project, 
costs must be broken down by project. Submit one Form HUD-4123 for each 
proposed project in addition to a consolidated Form HUD-4123 that 
includes costs for all proposed projects.
    c. Do not include project costs (i.e. architectural/engineering, 
environmental, technical assistance, staff/overhead costs) directly 
related to project.

C. Submission Dates and Times

1. Application Submission Deadline
    The application deadline date is May 31, 2006. Applications 
submitted through http://www.Grants.gov/Apply must be received and 
validated by Grants.gov no later than 11:59:59 PM Eastern time on the 
application deadline date. Upon submission, Grants.gov will provide the 
applicant a confirmation of receipt and then validate the application. 
Within 24-48 hours of receipt, the application will be validated by 
Grants.gov. If the application does not pass validation, it will be 
rejected by Grants.gov and the application will be eliminated from 
further funding consideration. The General Section provides details of 
a validation check. HUD advises applicants to submit early so that if 
an application is rejected during the validation process, applicants 
can correct the errors and resubmit the application prior to the 
deadline date and time. If you are granted a waiver of the electronic 
submission requirements, and are submitting a paper application, your 
completed application (one original and two copies) must be received by 
HUD no later than 11:59:59 PM on the application deadline date. HUD 
will not accept any applications sent by e-mail or on a diskette, CD, 
or by facsimile unless HUD specifically requests an applicant to do so. 
Please carefully follow the instructions in Section IV F. of the 
General Section for detailed information regarding application 
submission, delivery, and timely receipt requirements.

D. Intergovernmental Review

    Indian tribes are not subject to the Intergovernmental Review 
process.

E. Funding Restrictions

1. Ineligible Activities
    In general, any activity that is not authorized under the 
provisions of 24 CFR 1003.201-1003.206 is ineligible to be assisted 
with ICDBG grant funds. The regulations at 24 CFR 1003.207 govern 
ineligible activities and should be referred to for details. The 
following guidance is provided for determining the eligibility of other 
activities frequently associated with ICDBG projects.
    a. Government Office Space. Buildings, or portions thereof, used 
predominantly for the general conduct of government cannot be assisted 
with ICDBG funds. Those buildings include, but are not limited to, 
local government office buildings, courthouses, and other headquarters 
of government where the governing body meets regularly. Buildings that 
contain both governmental and non-governmental services can be assisted 
as long as the ICDBG funds are used only for the non-governmental 
sections. An example of an ineligible building is a building to house 
the community development division or a tribal administration building. 
Your Area ONAP office should be consulted for projects of this nature.
    b. General Government Expenses. Except as authorized in the 
regulations or under OMB Circular A-87, expenses required to carry out 
the regular responsibilities of the unit of general local government 
are not eligible for assistance with ICDBG funds.
    c. Maintenance and Operation Expenses. In general, any expenses 
associated with repairing, operating, or maintaining public facilities 
and services are not eligible for assistance. Specific exceptions to 
this general rule are operating and maintenance expenses associated 
with public service activities [24 CFR 1003.201(e)], office space for 
program staff employed in carrying out the ICDBG program [24 CFR 
1003.206(a)(4)], and interim assistance [24 CFR 1003.201(f)]. For 
example, where a public service is being assisted with CDBG funds, the 
cost of operating and maintaining that portion of the facility in which 
the service is located is eligible as part of the public service. 
Examples of ineligible operating and maintenance expenses are routine 
and non-routine maintenance and repair of streets, parks, playgrounds, 
water and sewer facilities, neighborhood facilities, senior centers, 
centers for persons with disabilities, parking facilities, and similar 
public facilities and, payment of salaries for staff, utility costs, 
and similar expenses necessary for the operation of public works and 
facilities.
    d. New Housing Construction. The construction of new permanent 
residential structures and any program to subsidize or finance such new 
construction is ineligible unless carried out by a Community-Based 
Development Organization (CBDO) pursuant to 24 CFR 1003.204(a).
    e. Furnishings and Personal Property. In general, the purchase of 
equipment, fixtures, motor vehicles, furnishings, or other personal 
property not an integral structural fixture is ineligible. Exceptions 
include when such purchases are necessary for use in grant 
administration (24 CFR 1003.206); necessary and appropriate for use in 
a project carried out by a CBDO (24 CFR 1003.204); used in providing a 
public service (24 CFR 1003.201(e)); or used as fire fighting equipment 
(24 CFR 1003.201(c)(1)(ii)). However, ICDBG funds may be used to pay 
depreciation or use allowances (in accordance with OMB Circular A-87 or 
A-122 as applicable).
    f. Construction Tools and Equipment. The purchase of construction 
tools and equipment is generally ineligible. However, compensation for 
the use of such tools and equipment through leasing, depreciation, or 
use allowances pursuant to OMB Circulars A-87 and A-122, as applicable, 
for an otherwise eligible activity is eligible. Exceptions include 
construction tools and equipment purchased for use as part of a solid 
waste facility (24 CFR 1003.201(c)(1)(ii)) and construction tools only 
(not equipment) purchased for use in a housing rehabilitation project 
being administered by the recipient using the force account 
construction method (24 CFR 1003.202(b)(8)).
    g. Income Payments. In general, assistance shall not be used for 
income payments for housing or any other purpose. Income payments mean 
a series of subsistence-type grant payments made to an individual/
family for items such as food, clothing, housing (rent/mortgage) or 
utilities, but excludes emergency payments made over a period of up to 
three months to the provider of such items or services on behalf of an 
individual/family. Examples of ineligible income payments include the 
payments for income maintenance and housing allowances.

[[Page 11736]]

    2. Grant Ceilings. The authority to establish grant ceilings is 
found at 24 CFR 1003.100(b)(1). Grant ceilings are established for 
FY2006 funding at the following levels:

------------------------------------------------------------------------
           Area ONAP                    Population            Ceiling
------------------------------------------------------------------------
Eastern Woodlands..............  ALL....................        $600,000
Southern Plains................  ALL....................         800,000
Northern Plains................  6,001+.................       1,100,000
                                 0-6,000................         900,000
Southwest......................  50,001+................       5,500,000
                                 10,501-50,000..........       2,750,000
                                 7,501-10,500...........       2,200,000
                                 6,001-7,500............       1,100,000
                                 1,501-6,000............         825,000
                                 0-1,500................         605,000
Northwest......................  ALL....................         500,000
Alaska.........................  ALL....................         500,000
------------------------------------------------------------------------

    For the Southwest Area ONAP jurisdiction, the population used to 
determine ceiling amounts is the Native American population that 
resides on a reservation or rancheria.
    Applicants from the Southwest or the Northern Plains ONAP 
jurisdictions should contact that office before submitting an 
application if they are unsure of the population level to use to 
determine the ceiling amount. The Southwest or Northern Plains Area 
ONAP, as appropriate, must approve any corrections or revisions to 
Native American population data before you submit your application.

F. Other Submission Requirements

    1. Applications shall be submitted via www.Grants.gov/Apply by no 
later than the application deadline date and time stated in the NOFA.
    2. Mailing and Receipt Procedures. Applicants granted a waiver of 
the electronic submission requirement will receive specific mailing 
instructions with approval of the waiver. See 24 CFR Part 5.
    3. Addresses for Submitting Applications. HUD will only accept 
mailed applications if a waiver of the electronic delivery process has 
been approved by HUD. Information regarding electronic submission and 
waivers from the electronic submission requirement is located in the 
General Section. If a waiver of the electronic submission requirement 
is granted, submit the original signed application and two copies to 
the appropriate Area ONAP for your jurisdiction. A list identifying 
each Area ONAP jurisdiction is provided at http://www.hud.gov/offices/adm/grants/fundsavail.cfm under the ICDBG program.

V. Application Review Information

A. Criteria

    1. RC/EZ/EC-II: Bonus points described in the General Section for 
projects located in RC/EZ/EC-II will not be awarded under this NOFA.
    2. Rating Factors to Evaluate and Rate Applications: The factors 
for rating and ranking applications and the points for each factor are 
provided below. A maximum of 100 points may be awarded under Rating 
Factors 1 through 5. To be considered for funding, your application 
must receive a minimum of 20 points under rating factor 1 and an 
application score of at least 70 points. The following summarizes the 
points assigned to each rating factor and each rating subfactor and 
lists which rating subfactors apply to which project types. Please use 
this table to ensure you are addressing the appropriate rating 
subfactor for your project.

----------------------------------------------------------------------------------------------------------------
  Rating factor        Rating sub-  factor                Points                        Project type
----------------------------------------------------------------------------------------------------------------
1................  Total......................  40........................  Minimum of 20 Points Required.
                   1.a........................  10........................  All Project Types.
                   1.b........................  5 or 7*...................  All Project Types.
                   1.c........................  3 or 8*...................  All Project Types.
                   1.d........................  2 or 5*...................  All Project Types.
                   2.a........................  4 or 0*...................  All Project Types.
                   2.b........................  4 or 0*...................  All Project Types.
                   2.c........................  4 or 0*...................  All Project Types.
                   2.d........................  4 or 0*...................  All Project Types.
                   2.e........................  4 or 0*...................  All Project Types.
2................  Total......................  16........................
                   1..........................  4.........................  All Project Types.
                   2.a........................  12........................  Public Facilities and Improvements
                                                                             and Economic Development Projects.
                   2.b........................  12........................  New Housing Construction, Housing
                                                                             Rehabilitation, Land Acquisition to
                                                                             Support New Housing, and
                                                                             Homeownership Assistance Projects.
                   2.c........................  12........................  Microenterprise Programs.
3................  Total......................  30........................
                   1..........................  10........................  All Project Types.
                   2..........................  5.........................  All Project Types.
                   3..........................  1.........................  All Project Types.
                   4..........................  2.........................  All Project Types.
                   4.a........................  12........................  Public Facilities and Improvements.
                   4.b........................  12........................  New Housing Construction, Housing
                                                                             Rehabilitation, and Homeownership
                                                                             Assistance Projects.
                   4.c........................  12........................  Economic Development Projects.

[[Page 11737]]

 
                   4.d........................  12........................  Microenterprise Programs.
                   4.e........................  12........................  Land Acquisition to Support New
                                                                             Housing.
4................  Total......................  8.........................  All Project Types.
5                  Total......................  6.........................  All Project Types.
                   1..........................  2.........................  All Project Types.
                   2..........................  4.........................  All Project Types.
                                               ----------------------------
 Total...........  ...........................  100.......................  Minimum of 70 Points Required.
----------------------------------------------------------------------------------------------------------------
* The first number listed indicates the maximum number of points available to current ICDBG grantees under this
  subfactor. The second number indicates the maximum number of points available to new applicants.

Rating Factor 1: Capacity of the Applicant (40 Points)
    This factor addresses the extent to which you have the 
organizational resources necessary to successfully implement the 
proposed activities in accordance with your implementation schedule. If 
applicable, past performance in administering previous ICDBG grants 
will be taken into consideration. You must address the existence or 
availability of these resources for the specific type of activity for 
which you are applying. You must receive a minimum of 20 points under 
this factor for your proposed activity to be eligible for funding. HUD 
will not rate any projects further that do not receive a minimum of 20 
points under this factor. The implementation schedule and/or the Logic 
Model, Form HUD 96010, you submit for this factor will be measured 
against actual progress if you are funded.
    1. (20 points for current ICDBG grantees) (30 points for new 
applicants) Managerial, Technical, and Administrative Capability
    Your application must include a description demonstrating that you 
possess or can obtain managerial, technical, and/or administrative 
capability necessary to carry out the proposed project. Your 
application must address who will administer the project and how you 
plan to handle the technical aspects of executing the project in 
accordance with your implementation schedule. Typical documents that 
may be submitted include, but are not limited to, written summaries of 
qualifications and past experience of proposed staff, descriptions of 
staff responsibilities, and references or letters of endorsement from 
others who have worked with the proposed staff. Do not submit job 
descriptions or resumes.
    a. (10 points) Managerial and Technical Staff.
    The extent to which your application describes the roles/
responsibilities and the knowledge/experience of your overall proposed 
project director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing, and implementing 
projects in accordance with the implementation schedule for which 
funding is being requested. Experience will be judged in terms of 
recent, relevant, and successful experience of your staff to undertake 
eligible program activities. In rating this factor, HUD will consider 
experience within the last 5 years to be recent; experience pertaining 
to the specific activities being proposed to be relevant; and 
experience producing specific accomplishments to be successful. The 
more recent the experience and the more experience your own staff 
members who work on the project have in successfully conducting and 
completing similar activities, the greater the number of points you 
will receive for this rating factor.
    (10 Points). The applicant adequately describes the roles/
responsibilities and the knowledge/experience of its overall project 
director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing, and implementing 
projects for which funding is being requested. Staff experience as 
described in the application is recent (within 5 years), relevant 
(pertains to the specific activities being proposed) and successful 
(has produced specific accomplishments).
    (5 Points). The applicant adequately describes the roles/
responsibilities and the knowledge/experience of its overall project 
director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing and implementing 
projects for which funding is being requested. However, one of the 
following applies: staff experience as described in the application is 
not recent (not within 5 years), is not relevant (does not pertain to 
the specific activities being proposed), or is not successful (did not 
produce specific accomplishments).
    (0 Points). The applicant failed to adequately describe the roles/
responsibilities and the knowledge/experience of its overall project 
director and staff, including the day-to-day program manager, 
consultants, and contractors in planning, managing, and implementing 
projects for which funding is being requested or more than one of the 
following applies: staff experience as described in the application is 
not recent (not within 5 years), is not relevant (does not pertain to 
the specific activity being proposed), or is not successful (did not 
produce specific accomplishments).
    b. (5 points for current ICDBG grantees) (7 points for new 
applicants) Project Implementation Plan and Program Evaluation.
    The extent to which your project implementation plan identifies the 
specific tasks and timelines that you and your partner contractors and/
or sub grantees will undertake to complete your proposed project on 
time and within budget. The Project Implementation Schedule, Form HUD-
4125, may serve as this required schedule, provided that it is 
sufficiently detailed to demonstrate that you have clearly thought out 
your project implementation. The extent to which your project 
identifies, measures, and evaluates the specific benchmarks, outputs, 
outcomes, and/or goals of your project that enhance community 
viability. The Logic Model, Form HUD-96010, may serve as the format to 
address this information or you may provide a different format that 
provides the same information.
    (5 points for current ICDBG grantees) (7 points for new 
applicants). The applicant submitted a project implementation plan that 
clearly specifies project tasks and timelines. The documentation 
identifies the steps in place to make adjustments to the work plan if 
tasks are not completed within established time frames. The applicant 
submitted clear project benchmarks, outputs, outcomes, and/or targets 
and identified objectively

[[Page 11738]]

quantifiable program measures and/or evaluation process.
    (3 points for current ICDBG grantees) (4 points for new 
applicants). The applicant submitted a project implementation plan that 
specifies project tasks and timelines. The applicant submitted project 
benchmarks, outputs, outcomes, and/or targets for each; however, did 
not clearly identify objectively quantifiable program measures and/or 
the evaluation process.
    (0 points for current ICDBG grantees or new applicants). The 
applicant submitted a project implementation schedule that does not 
address all project tasks and timelines associated with the project. 
Project benchmarks, outputs, outcomes, and/or goals were not submitted, 
or if submitted, did not address either the quantifiable program 
measures and/or the evaluation process.
    c. (3 points for current ICDBG grantees) (8 points for new 
applicants) Financial Management.
    This subfactor evaluates the extent to which your application 
describes how your financial management systems will facilitate 
effective fiscal control over your proposed project and meet the 
requirements of 24 CFR part 85 and 24 CFR part 1003. You must also 
describe how you will apply your financial management systems to the 
specific project for which you are applying. The application will also 
be rated on the seriousness/significance of the findings related to 
your financial management system identified in your current audit. If 
you are required to have an audit but do not have a current audit, you 
must submit a letter from your Independent Public Accountant that is 
dated within the past 12 months stating that your financial management 
system complies with all applicable regulatory requirements. If you are 
not required to have an audit, you will automatically receive points 
for this portion of the subfactor if you provide the other information 
required by this subfactor. For purposes of this subfactor, a current 
audit is one which has been submitted to the Federal Audit 
Clearinghouse within 9 months of the end of the applicant's last fiscal 
year, or 30 days after receipt of the audit report from the auditor, 
whichever comes first. Do not submit financial management and/or 
internal control policies and procedures or your audit with the 
application.
    (3 points for current ICDBG grantees) (8 points for new 
applicants). The applicant clearly described how it will apply its 
financial management systems to the proposed project. The applicant's 
current audit does not contain any serious or significant findings 
related to its financial management system, or if there is no current 
audit, the applicant submitted a letter from its Independent Public 
Accountant stating that its financial management system complies with 
all applicable regulatory requirements.
    (2 points for current ICDBG grantees) (4 points for new 
applicants). The applicant's current audit does not contain any serious 
or significant findings related to its financial management system, or 
if there is no current audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements. The 
applicant did not describe how it would apply its financial management 
systems to the proposed project.
    (1 point for current ICDBG grantees) (2 points for new applicants). 
The applicant's current audit does not contain any serious or 
significant findings related to its financial management system, or if 
there is no current audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its financial management 
system complies with all applicable regulatory requirements. The 
applicant did not describe how it would apply its financial management 
systems to the proposed project.
    (0 points for current ICDBG grantees or new applicants). The 
applicant's current audit included serious or significant findings 
related to its financial management systems or if there is no current 
audit, the applicant did not submit a letter from its IPA stating its 
financial management systems comply with all regulatory requirements. 
The applicant did not describe how it would apply its financial 
management systems to the proposed project.
    d. (2 points for current ICDBG grantees) (5 points for new 
applicants) Procurement and Contract Management.
    This subfactor evaluates the extent to which your application 
describes how your procurement and contract management policies and 
procedures will facilitate effective procurement and contract control 
over your proposed project and meet the requirements of 24 CFR part 85 
and 24 CFR part 1003. You must also describe how you will apply your 
procurement and contract management systems to the specific project for 
which you are applying. The application will also be rated on the 
seriousness of the findings related to procurement and contract 
management identified in your current financial audit. If you are 
required to have an audit but do not have a current audit, you must 
submit a letter from your Independent Public Accountant stating that 
your procurement and contract management system complies with all 
applicable regulatory requirements. If you are not required to have an 
audit, you will automatically receive points for this portion of the 
subfactor if you provide the other information required by this 
subfactor. Do not submit procurement and contract management policies 
and procedures or your audit with the application.
    (2 points for current ICDBG grantees) (5 points for new 
applicants). The applicant clearly described how its procurement and 
contract management policies and procedures will facilitate effective 
procurement and contract control over the proposed project, and meet 
the requirements of 24 CFR part 85 and 24 CFR part 1003. The 
applicant's current audit does not contain any serious or significant 
findings related to its procurement and contract management system, or 
if there is no current audit, the applicant submitted a letter from its 
Independent Public Accountant stating that its procurement and contract 
management system complies with all applicable regulatory requirements.
    (1 point for current ICDBG grantees) (4 points for new applicants). 
The applicant's current audit does not contain any serious or 
significant findings related to its procurement or contract management 
system, or if there is no current audit, the applicant submitted a 
letter from its Independent Public Accountant stating that its 
procurement and contract management system complies with all applicable 
regulatory requirements. The applicant did not describe how it would 
apply its procurement and contract management systems to the proposed 
project.
    (0 points for current ICDBG grantees or new applicants). The 
applicant's current audit included serious or significant findings 
related to its procurement and contract management systems or if there 
is no current audit, the applicant did not submit a letter from its IPA 
stating its procurement and contract management systems comply with all 
regulatory requirements. The applicant did not describe how it would 
apply its procurement and contract management systems to the proposed 
project.
2. (20 Points for Current ICDBG Grantees) (0 Points for New Applicants) 
Past Performance
    HUD will evaluate your experience in producing products and reports 
in accordance with regulatory timelines for any previous grant programs 
undertaken

[[Page 11739]]

with HUD funds for the following performance measures. HUD reserves the 
right to take into account your past performance in meeting performance 
and reporting goals on any previous HUD awards. Applicants are not 
required to respond to the subfactors related to past performance. HUD 
will rely on information on file.
    a. (4 points for current ICDBG grantees) (0 points for new 
applicants). You are not more than 90 days behind schedule in meeting 
the time frames established in the HUD-approved Implementation Schedule 
for the ICDBG program.
    (1) (4 points). The applicant is not more than 90 days behind 
schedule in meeting the timeframes established in the HUD-approved 
implementation schedule.
    (2) (2 points). The applicant is not more than 120 days behind 
schedule in meeting the timeframes established in the HUD-approved 
implementation schedule.
    (3) (0 points). The applicant is more than 120 days behind schedule 
in meeting timeframes established in the HUD-approved implementation 
schedule.
    b. (4 points for current ICDBG grantees) (0 points for new 
applicants). Annual Status Reports (ASER) and Federal Cash Transaction 
Reports are submitted by the report submission deadlines. The ASER is 
due 45 days after the end of the Federal fiscal year on November 15. 
Federal Cash Transaction Reports are due quarterly on April 21, July 
21, October 20, and January 22.
    (1) (4 points). The applicant has submitted both the Annual Status 
and Evaluation Reports (ASER) and Federal Cash Transaction Reports for 
ICDBG programs by the report submission deadlines.
    (2) (2 points). The applicant has submitted either the Federal Cash 
Transaction Reports or the Annual Status and Evaluation Reports for 
ICDBG programs by the report submission deadline.
    (3) (0 points). The applicant has submitted neither of the required 
reports by the report submission deadline.
    c. (4 points for current ICDBG grantees) (0 points for new 
applicants). You have submitted close-out documents to HUD by the 
submission deadline. Close-out documents are required for the ICDBG 
program within 90 days of the date it is determined that the criteria 
for close-out at 24 CFR 1003.508 have been met.
    (1) (4 points). The applicant submitted close-out documents to HUD 
in accordance with the timeframe and criteria at Sec.  1003.508.
    (2) (0 points). The applicant has not submitted close-out documents 
to HUD as required by Sec.  1003.508.
    d. (4 points for current ICDBG grantees) (0 points for new 
applicants). You have submitted annual audits in accordance with OMB 
Circular A-133 and its compliance supplements. Do not submit your audit 
with the application.
    (1) (4 points). The applicant has submitted annual audits in 
accordance with OMB Circular A-133 and its compliance supplements, or 
if the applicant has not been required to submit an audit, it will 
receive 4 points.
    (2) (0 points). The applicant has not submitted annual audits in 
accordance with OMB Circular A-133 and its compliance supplements.
    e. (4 points for current ICDBG grantees) (0 points for new 
applicants). You have resolved ICDBG monitoring findings and controlled 
audit findings by the established target date or there are no findings 
in current reports. Do not submit responses to open monitoring or audit 
findings with the application.
    (1) (4 points). The applicant resolved open ICDBG monitoring 
findings and controlled audit findings by the established target date. 
If there were no open audit or ICDBG monitoring findings (current 
grantees only), the applicant will receive 2 points.
    (2) (0 points). The applicant has not resolved open ICDBG 
monitoring findings and controlled audit findings by the established 
target date.
Rating Factor 2: Need/Extent of the Problem (16 Points)
    This factor addresses the extent to which there is a need for the 
proposed project to address a documented problem among the intended 
beneficiaries.
    1. (Up to 4 points). Your application includes quantitative 
information demonstrating that the proposed project meets an essential 
community development need by providing outcomes that are critical to 
the viability of the community.
    2. (12 points). Your project benefits the neediest segment of the 
population, in accordance with the Program's primary objective defined 
at 24 CFR 1003.2. The criteria for this sub-factor vary according to 
the type of project for which you are applying. Please note that you 
may submit data that are unpublished and not generally available in 
order to meet the requirements of this section. However, to do so, you 
must submit a demographic data statement along with supporting 
documentation as described in Section IV.B. of this NOFA. For 
documenting persons employed by the project, you do not need to submit 
a demographic data statement and corresponding documentation. However, 
you do need to submit information that describes the nature of the jobs 
created or retained. Such information includes but is not limited to 
descriptions of proposed job responsibilities, salaries and the number 
of full-time equivalent positions. If you believe jobs will be retained 
as a result of the ICDBG project, include information that shows 
clearly and objectively, that jobs will be lost without the ICDBG 
project. Jobs that are retained only for the period of the grant will 
not count under this rating factor.
    a. Public Facilities and Improvements and Economic Development 
Projects. The proposed activities benefit the neediest segment of the 
population, as identified below. For economic development projects, you 
may consider beneficiaries of the project as persons served by the 
project and/or persons employed by the project, and jobs created or 
retained by the project.
    (1) (12 points). 85 percent or more of the beneficiaries are low- 
or moderate-income.
    (2) (8 points). At least 75 percent but less than 85 percent of the 
beneficiaries are low- or moderate-income.
    (3) (4 points). At least 55 percent but less than 75 percent of the 
beneficiaries are low- or moderate-income.
    (4) (0 points). Less than 55 percent of the beneficiaries are low- 
or moderate-income.
    b. New Housing Construction, Housing Rehabilitation, Land 
Acquisition to Support New Housing, and Homeownership Assistance 
Projects. The need for the proposed project is determined by utilizing 
data from the tribe's 2005 IHBG formula information. The ratio is based 
on the dollars allocated to a tribe under the IHBG program for Need 
divided by the sum of the number of AIAN households in the following 
categories:

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

This ratio is computed for each tribe and posted in the ``Factor 2 
Needs

[[Page 11740]]

Table'' that is available at http://www.hud.gov/offices/adm/grants/fundsavail.cfm under the ICDBG program.
    (1) (12 points). The dollar amount for the Indian tribe is $354-
$675 or the tribe's total FY2005 IHBG amount was $100,000 or less and 
the Needs Table indicates that the Indian tribe has no AIAN households 
experiencing income or housing problems.
    (2) (8 points). The dollar amount for the Indian tribe is $676-
$1,200.
    (3) (4 points). The dollar amount for the Indian tribe is $1,201-
$1,999.
    (4) (0 points). The dollar amount for the Indian tribe is $2,000 or 
higher, or the Needs Table indicates that the Indian tribe has no AIAN 
households experiencing income or housing problems.
    c. Microenterprise Programs. A microenterprise is a business that 
has five or fewer employees, one or more of whom owns the enterprise. 
The owner(s) of the microenterprise must be low-or moderate-income and 
the majority of the jobs created or retained will be for low-or 
moderate-income persons. To evaluate need, the nature of the jobs 
created or retained will be evaluated. The owners of the 
microenterprises are low- and moderate-income and:
    (1) (12 points). All employees are low-or moderate-income.
    (2) (8 points). At least 75 percent but less than 100 percent of 
the employees are low-or moderate-income.
    (3) (4 points). At least 50 percent but less than 75 percent of the 
employees are low-or moderate-income.
    (4) (0 points). Less than 50 percent of the employees are low- and 
moderate-income.
Rating Factor 3: Soundness of Approach (30 Points)
    This factor addresses the quality and anticipated effectiveness of 
your proposed project's outcomes in enhancing community viability and 
in meeting the needs you have identified in Rating Factor 2 and the 
commitment to sustain your proposed project. The populations that were 
described in demographics that documented need should be the same 
populations that will receive the primary benefit of the proposed 
project.
    1. (10 points). Description of and Rationale for Proposed Project.
    a. (10 points). The proposed project is a viable and cost effective 
approach to address the needs outlined under Rating Factor 2 of your 
application. The proposed project is described in detail and indicates 
why you believe the proposed project will be most effective in 
addressing the identified need. In order for an application to receive 
full credit under this factor, the application must include clear and 
sound measures of the proposed outputs and outcomes for how the 
community's viability will be enhanced, as presented in Rating Factor 
5. The application includes a description of the size, type and 
location of the project and a rationale for project design. If your 
application is for construction or rehabilitation projects, the 
application must also include anticipated cost savings due to 
innovative program design or construction methods. For land acquisition 
to support new housing projects, you must establish that there is a 
reasonable ratio between the number of net usable acres to be acquired 
and the number of low- and moderate-income households to benefit from 
the project.
    b. (5 points). The proposed project is a viable and cost effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The project is described in detail and indicates why you 
believe the project will be most effective in addressing the identified 
need. Proposed outcomes that will enhance the community's viability are 
included. The application includes a description of the size, type and 
location of the project as well as a rationale for project design. For 
land acquisition to support new housing projects, the applicant has 
established that there is a reasonable ratio between the number of net 
usable acres to be acquired and the number of low- and moderate-income 
households to benefit from this project. The application (for 
construction or rehabilitation projects) does not include anticipated 
cost savings due to innovative program design and/or construction 
methods.
    c. (3 points). The proposed project is a viable and cost effective 
approach to address the needs outlined under Rating Factor 2 of the 
application. The project is described and indicates why you believe the 
project will be most effective in addressing the identified need. 
Proposed outcomes are included but do not describe how the project will 
enhance community viability. The application includes a description of 
the size, type, and location of the project. For land acquisition to 
support new housing projects, the applicant has established that there 
is a reasonable ratio between the number of net usable acres to be 
acquired and the number of low- and moderate-income households to 
benefit from the project. The application (for construction or 
rehabilitation activities) does not include anticipated cost savings 
due to innovative program design and/or construction methods.
    d. (0 points). The proposed project is not a viable and cost 
effective approach to address the needs outlined under Rating Factor 2 
of the application. The proposed project is not described in detail 
with an indication of why the applicant believes the project will be 
most effective in addressing the identified need. Proposed outcomes 
describing how the project will enhance community viability are not 
included. For land acquisition to support new housing projects, the 
applicant has not established that there is a reasonable ratio between 
the number of net usable acres to be acquired and the number of low- 
and moderate-income households to benefit from the project. The 
application (for construction and rehabilitation activities) does not 
include anticipated cost savings due to innovative program design and/
or construction methods.
    2. (5 points). Budget and Cost Estimates.
    The quality, thoroughness, and reasonableness of the proposed 
project budget are documented. Cost estimates must be broken down by 
line item for each proposed activity, including planning and 
administration costs, and documented. You must provide a description of 
the qualifications of the person who prepared the cost estimate.
    3. (1 point). HUD Policy Priorities.
    Your application addresses the goals for ``Improving Our Nation's 
Communities'', or ``Energy Star'', two of HUD's 2006 Policy Priorities, 
as described in Section V. B. of the General Section. You must describe 
which one of these two Policy Priorities you select and describe how 
your activity will meet the applicable goals.
    4. (2 points). Intent to Meet Section 3 Requirements.
    Your application demonstrates how you will apply the Section 3 
requirements of the Housing and Urban Development Act of 1968 and the 
regulations in 24 CFR part 135 (Economic Opportunities for Low and Very 
Low Income Persons) to the proposed project. You must demonstrate how 
you will incorporate Section 3 principles, with goals for expanding 
opportunities for Section 3 residents and business concerns, to your 
proposed project. The purpose of Section 3 is to ensure that employment 
and other economic opportunities generated by federal financial 
assistance for housing and community development programs, shall, to 
the extent feasible, be directed toward low and very-low income persons 
(but not in derogation of compliance with Section

[[Page 11741]]

7(b) of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 4503(b))).
    5. (12 points). Commitment to Sustain Activities.
    Your application demonstrates your commitment to your community's 
viability by sustaining your proposed activities. The information 
provided is sufficient to determine that the project will proceed 
effectively.
    The criteria for this sub-factor vary according to the type of 
project for which you are applying.
    a. Public Facilities and Improvement Projects.
    (1) (12 points). If a tribe assumes operation and maintenance 
responsibilities for the public facilities and improvements, provide a 
written statement that the tribe has adopted the operation and 
maintenance plan and commits the necessary funds to provide for these 
responsibilities. In addition, describe how the operation and 
maintenance plan addresses maintenance, repairs, insurance, security, 
and replacement reserves and include a cost breakdown for annual 
expenses. If an entity other than the tribe commits to pay for 
operation and maintenance for the public facilities, a letter of 
commitment from the entity is included in the application that 
identifies the maintenance responsibilities and, if applicable, 
responsibilities for operations the entity will assume as well as 
necessary funds to provide for these responsibilities. A description of 
how the operation and maintenance plan addresses maintenance, repairs, 
insurance, security, and replacement reserves is not required when an 
entity other then the tribe assumes operation and maintenance 
responsibilities. For public facility buildings only, a commitment is 
included in the application that identifies the source of and commits 
the necessary operating funds for any recreation, social or other 
services to be provided. In addition, letters of commitment from 
service providers are included which address both operating expenses 
and space needs.
    (2) (8 points). If a tribe assumes operation and maintenance 
responsibilities for the public facilities and improvements, provide a 
written statement that the tribe has adopted the operation and 
maintenance plan and commits the necessary funds to provide for these 
responsibilities. In addition, a description was included that shows 
that the operation and maintenance plan addresses at least 4 of the 
following items (maintenance, repairs, insurance, security, and 
replacement reserves) but a satisfactory cost breakdown for annual 
expenses was not included. If an entity other than the tribe commits to 
pay for operation and maintenance for the public facilities and 
maintenance, a letter of commitment from the entity is included in the 
application that identifies the maintenance responsibilities and, if 
applicable, responsibilities for operations the entity will assume but 
no information committing the necessary funds to provide for these 
responsibilities is included. A description of how the operation and 
maintenance plan addresses maintenance, repairs, insurance, security, 
and replacement reserves is not required when an entity other than the 
tribe assumes operation and maintenance responsibilities. For community 
buildings only, a commitment is included in the application that 
identifies the source of and commits the necessary operating funds for 
any recreation, social or other services to be provided. In addition, 
letters of commitment from service providers are included which address 
both operating expenses and space needs. Information provided is 
sufficient to determine that the project will proceed effectively.
    (3) (4 points). If a tribe assumes operation and maintenance 
responsibilities for the public facilities and improvements, the 
application includes a written statement that the tribe has adopted the 
operation and maintenance plan and commits the necessary funds to 
provide for these responsibilities, or a description of the operation 
and maintenance plan is included that shows that the plan addresses at 
least 3 of the following items (maintenance, repairs, insurance, 
security, and replacement reserves). If an entity other than the tribe 
commits to pay for operation and maintenance for the public facilities 
and maintenance, the maintenance provider is identified and, if 
applicable, responsibilities for operations the entity will assume, but 
no letter of commitment is included. For public facility buildings 
only, no commitment is included in the application that identifies the 
source of and commits the necessary operating funds for any recreation, 
social or other services to be provided. However, letters of commitment 
to provide services are included but they do not address operating 
expenses and space needs. Information provided is sufficient to 
determine that the project will proceed effectively
    (4) (0 points). None of the above criteria is met.
    b. New Housing Construction, Housing Rehabilitation, and 
Homeownership Assistance Projects.
    (1) (12 points). The ongoing maintenance responsibilities are 
clearly identified for the tribe and/or the participants, as 
applicable. If the tribe or another entity is assuming maintenance 
responsibilities, then the applicant must describe the maintenance 
responsibilities and provide a commitment to that effect.
    (2) (8 points). Maintenance responsibilities for the tribe and/or 
participants are identified and described, but lacking in detail, and 
the commitment regarding maintenance responsibilities is submitted.
    (3) (4 points). Tribal maintenance responsibilities are identified 
but participant responsibilities are either not addressed or do not 
exist, or there is no commitment regarding maintenance 
responsibilities.
    (4) (0 points). None of the above criteria is met.
    c. Economic Development Projects.
    You must include information or documentation which addresses or 
provides all of the following in the application: a description of the 
organizational system and capacity of the entity that will operate the 
business; documents which show that formal provisions exist for 
separation of government functions from business operating decisions, 
an operating plan for the project, and the feasibility and market 
analysis of the proposed business activity and the financial viability 
of the project.
    (1) Appropriate documents to include in the application to address 
these items include:
    (a) Articles of incorporation, by-laws, resumes of key management 
positions and board members for the entity who will operate the 
business.
    (b) Business operating plan.
    (c) Market study no more than two years old and which has been 
conducted by an independent entity.
    (d) Feasibility study no more than two years old which indicates 
how the proposed business will capture a fair share of the market, and 
which has been conducted by an independent entity.
    (e) Detailed cost summary for the development of the project.
    (f) For the expansion of an existing business, copies of financial 
statements for the most recent three years (or the life of the 
business, if less than three years).
    (2) The submitted documentation will be evaluated to determine the 
project's financial chance for success. The following questions must be 
addressed to meet this requirement:

[[Page 11742]]

    (a) Does the business plan seem thorough and does the organization 
structure have quality control and responsibilities built in?
    (b) Does the business plan or market analysis indicate that a 
substantial market share is likely within five years?
    (c) Do the costs appear to be reasonable given projected income and 
information about inputs?
    (d) Does the business plan or cash flow analysis indicate that cash 
flow will be positive within the first year?
    (e) Is the financial statement clean with no indications of concern 
by the auditor?
    (12 points). All above documents applicable to the proposed project 
are included in your application and provide evidence that the 
project's chance for financial success is excellent.
    (6 points). All or most of the above documents applicable to the 
proposed project are included and provide evidence that the project's 
chance for financial success is reasonable.
    (0 points). Neither of the above criteria is met.
    d. Microenterprise Programs.
    (1) You must include the following information or documentation in 
the application that addresses or provides a description of how your 
microenterprise program will operate. Appropriate information to 
include in the application to address program operations includes:
    (a) Program description. A description of your microenterprise 
program including the types of assistance offered to microenterprise 
applicants and the types of entities eligible to apply for such 
assistance.
    (b) Processes for selecting applicants. A description of your 
processes for analyzing microenterprise applicants' business plans, 
market studies and financial feasibility. For credit programs, you must 
describe your process for determining the loan terms (i.e., interest 
rate, maximum loan amount, duration, loan servicing provisions) to be 
offered to individual microenterprise applicants.
    (2) (12 points). All of the above information or documentation 
applicable to the proposed project are thoroughly addressed in the 
application and the chances for success are excellent.
    (3) (6 points). All or most of the above information or 
documentation applicable to the proposed project are addressed in the 
application and the chances for success are reasonable.
    (4) (0 points). Neither of the above criteria is met.
    e. Land Acquisition Projects to Support New Housing.
    Submissions must include the results of a preliminary investigation 
conducted by a qualified independent entity demonstrating that the 
proposed site has suitable soil conditions for housing and related 
infrastructure, potable drinking water is accessible for a reasonable 
cost, access to utilities, vehicular access, drainage, nearby social 
and community services, and no known environmental problems.
    (1) (12 points). The submissions include all of the above-mentioned 
items and all necessary infrastructure is in place.
    (2) (6 points). The submissions demonstrate that the proposed 
site(s) is/are suitable for housing but that not all necessary 
infrastructure is in place. A detailed description of resources to be 
used and a detailed implementation schedule for development of all 
necessary infrastructure demonstrates that such infrastructure, as 
needed for proposed housing development, will be developed in time for 
such development, but no later than two years after site purchase.
    (3) (0 points). Neither of the above criteria is met.
Rating Factor 4: Leveraging Resources (8 Points)
    HUD believes that ICDBG funds can be used more effectively to 
benefit a larger number of Native American and Alaska Native persons 
and communities if projects are developed that use tribal resources and 
resources from other entities in conjunction with ICDBG funds. To 
encourage this, we will award points based on the percentage of non-
ICDBG resources provided relative to project costs as follows:

------------------------------------------------------------------------
              Non-ICDBG resources to project costs                Points
------------------------------------------------------------------------
Less than 4 percent.............................................       0
At least 4 percent but less than 11 percent.....................       2
At least 11 percent but less than 18 percent....................       4
At least 18 percent but less than 25 percent....................       6
25 percent or more..............................................       8
------------------------------------------------------------------------

    Contributions which could be considered as leveraged resources for 
point award include, but are not limited to: Tribal trust funds; loans 
from individuals or organizations; private foundations; businesses; 
state or federal loans or guarantees; other grants including IHBG (also 
known as NAHBG) funds; donated goods and services needed for the 
project; land needed for the project; and, direct administrative costs. 
With the exception of land acquisition, funds that have been expended 
on the project prior to application submission will not be counted as 
leverage. Applicants are reminded that environmental review 
requirements under 24 CFR part 58 apply to the commitment or use of 
both ICDBG and non-ICDBG funds in a leveraged project. See Section 
VI.B. of this NOFA for information related to this requirement.
    Contributions that will not be considered include, but are not 
limited to: Indirect administrative costs as identified in OMB Circular 
A-87, attachment A, section F; contributions of resources to pay for 
anticipated operations and maintenance costs of the proposed project; 
and, in the cases of expansions to existing facilities, the value of 
the existing facility.
    To be considered for point award, letters of firm or projected 
commitments, memoranda of understanding, or agreements to participate 
from any entity, including the tribe, which will be providing a 
contribution to the project, must accompany the application. The 
documentation must be received by HUD in the paper application package 
(if you have received a waiver of the electronic submission 
requirement) or for electronically submitted applications, the 
documentation must be scanned and submitted as part of the application 
documents or sent by facsimile transmittal (see the General Section). 
All documents submitted must be received by the application deadline 
dates and meet the timely receipt requirements to receive funding 
consideration.
    To demonstrate the commitment of tribal resources, the application 
must contain a written statement that identifies and commits the tribal 
resources to the project, subject to approval of the ICDBG assistance. 
In the case of IHBG funds, whether the tribe or a TDHE administers 
them, an approved IHP must identify and commit the IHBG resources to 
the project. Do not submit the IHP with your application. ONAP will 
rely on the most recently approved IHP on file. If the tribe/TDHE 
intends to include the leveraged commitment in a future IHP, the 
application must contain a written statement that identifies and 
commits the IHBG resources to the project subject to the same 
requirements as above.
    To demonstrate the commitment of a public agency, foundation, or 
other private party resources, a letter of commitment, memorandum of 
understanding, and/or agreement to participate, including any 
conditions to which the contribution may be subject, must be submitted 
with the application.

[[Page 11743]]

All letters of commitment must include the donor organization's name, 
the specific resource proposed, the dollar amount of the financial or 
in-kind resource and method for valuation, and the purpose of that 
resource within the proposed project. An official of the organization 
legally authorized to make commitments on behalf of the organization 
must sign the commitment.
    HUD recognizes that in some cases, firm commitments of non-tribal 
resources may not be obtainable by your tribe by the application 
submission deadline. For such projected resources, your application 
must include a statement from the contributing entity that describes 
why the firm commitment cannot be made at the current time and affirms 
that your tribe and the proposed project meets eligibility criteria for 
receiving the resource. In addition, a date by which the funding 
decisions will be made must be included. This date cannot be more than 
six months from the anticipated date of grant approval by HUD. Should 
HUD not receive notification of the firm commitment within 6 months of 
the date of grant approval, HUD will recapture the grant funds approved 
and will use them in accordance with the requirements of 24 CFR 
1003.102.
    In addition to the above requirements, for all contributions of 
goods, services and land, you must demonstrate that the donated items 
are necessary to the actual development of the project and include 
comparable costs that support the donation. Land valuation must be 
established using one of the following methods and the documentation 
must be contained in the application: A site specific appraisal no more 
than two years old; an appraisal of a nearby comparable site also no 
more than two years old; a reasonable extrapolation of land value based 
on current area realtor value guides; or, a reasonable extrapolation of 
land value based on recent sales of similar properties in the same 
area.
Rating Factor 5: Comprehensiveness and Coordination (6 Points)
    This factor addresses the extent to which your project planning and 
proposed implementation reflect a coordinated, community-based process 
of identifying and addressing needs including assisting beneficiaries 
and the program to achieve self-sufficiency/sustainability. The Logic 
Model, HUD Form 96010, is not required for Rating Factor 5 under the 
ICDBG program. However, applicants are encouraged to use this form to 
address program evaluation requirements under Rating Factor 1.(1).(b) 
of this NOFA, and measurable outputs and outcomes in Section (2) of 
this factor.
    1. (Up to 2 points). The application addresses the extent to which 
you have coordinated your proposed ICDBG activities with other 
organizations and/or tribal departments that are not providing direct 
financial support to your proposed work activities, but with which you 
share common goals and objectives and are working toward meeting these 
objectives in a holistic and comprehensive manner. For example, your 
project is consistent with and, to the extent possible, identified in 
the IHP (One-Year Financial Resources Narrative; Table 2, Financial 
Resources, Part I., Line 1E; and, Table 2, Financial Resources, Part 
II) submitted by you or on your behalf for the IHBG (also known as 
NAHBG) program. If the IHP for the IHBG (also known as NAHBG) program 
year that coincides with the implementation of the ICDBG proposed 
project has not been submitted, you must provide a written statement 
that when submitted, the IHP will specifically reference the proposed 
project.
    2. (Up to 4 points). Your proposed project will have measurable 
outputs and outcomes that will enhance community viability.
    Outputs must include, where applicable:
     Number of houses rehabilitated;
     Number of jobs created;
     Square feet for any public facility;
     Number of education or job training opportunities 
provided;
     Number of homeownership units constructed or financed;
     Number of businesses assisted (including number of 
minority/Native American);
     Number of families proposed to be assisted with a drug-
elimination program, or with a program to reduce or eliminate health 
related hazards.
    Outcomes must include, where appropriate:
     Reduction in the number of families living in substandard 
housing;
     Increased income resulting from employment generated by 
project;
     Increased quality of life due to services provided by the 
public facility;
     Increased economic self-sufficiency of recipients of 
program beneficiaries;
     Increase in homeownership rates;
     Reduction of drug-related crime or health related hazards.
    This year HUD is providing a Master Logic Model which is a 
Microsoft Excel TM file which features dropdown listings 
from which applicants may elect the items in each column that reflect 
their activity outputs and outcomes and copy. The Master Logic Model 
listing also identifies the unit of measure that HUD is interested in 
collecting for the output and outcome selected. In making the 
selections, applicants are to identify the appropriate estimated number 
of units of measure to be accomplished and identified for each output 
and outcome. The space next to the output and outcome is intended to 
capture the anticipated units of measure. Multiple outputs and outcomes 
may be selected per project. For FY2006, HUD is considering a new 
concept for the Logic Model. The new concept is a Return on Investment 
statement. HUD will be publishing a separate notice on the ROI concept. 
The Master Logic Model pick is incorporated into the form available as 
part of the ICDBG Instructions download from Grants.gov. Training on 
use of the dropdown form will be provided via Webcast. The schedule for 
Webcast training can be found at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

B. Reviews and Selection Process

1. Application Selection Process
    You must meet all of the applicable threshold requirements listed 
in Section III.C. Your application must meet all screening for 
acceptance requirements and all identified applicant and project 
specific thresholds. HUD will review each application and assign points 
in accordance with the selection factors described in this section.
2. Threshold Compliance
    The Area ONAP will review each application that passes the 
screening process to ensure that each applicant and each proposed 
project meets the applicant threshold requirements set forth in 24 CFR 
1003.301(a) and the project specific threshold requirements set forth 
in 24 CFR 1003.302 and III.C. of this NOFA.
3. Past Performance
    An applicant's past performance is evaluated under Rating Factor 1. 
Applicants are encouraged to address all performance-related criteria 
prior to submission of an application. An applicant must score a 
minimum of 20 points under Rating Factor 1 in order to meet the minimum 
point requirements outlined below in this NOFA.
4. Rating
    The Area ONAP will review and rate each project that meets the 
acceptance criteria and threshold requirements. After the applications 
are rated, a summary review of all applications will be conducted to 
ensure consistency in the application rating. The summary review will 
be performed by either the

[[Page 11744]]

Grants Management Director (or designee) or by a panel composed of up 
to three staff members.
    The total points for all rating factors are 100. A maximum of 100 
points may be awarded under Rating Factors 1 through 5.
5. Minimum Points
    To be considered for funding, your application must receive a 
minimum of 20 points under Rating Factor 1 and an application score of 
70 points.
6. Ranking
    All projects will be ranked against each other according to the 
point totals they receive, regardless of the type of project or 
component under which the points were awarded. Projects will be 
selected for funding based on the final ranking to the extent that 
funds are available. The Area ONAP will determine individual grant 
amounts in a manner consistent with the considerations set forth in 24 
CFR 1003.100(b)(2). Specifically, the Area ONAP may approve a grant 
amount less than the amount requested. In doing so, the Area ONAP may 
take into account the size of the applicant, the level of demand, the 
scale of the activity proposed relative to need and operational 
capacity, the number of persons to be served, the amount of funds 
required to achieve project objectives, and the reasonableness of the 
project costs. If the Area ONAP determines that there are not enough 
funds available to fund a project as proposed by the applicant, it may 
decline to fund that project and may fund the next highest-ranking 
project or projects for which adequate funds are available. The Area 
ONAP shall select, in rank order, additional projects for funding if 
one of the higher-ranking projects is not funded or if additional funds 
become available.
7. Tiebreakers
    When rating results in a tie among projects and insufficient 
resources remain to fund all tied projects, the Area ONAP will approve 
projects that can be fully funded over those that cannot be fully 
funded. When that does not resolve the tie, the Area ONAP will use the 
following factors in the order listed to resolve the tie:
    (a) The applicant that has not received an ICDBG over the longest 
period of time.
    (b) The applicant with the fewest active ICDBGs.
    (c) The project that would benefit the highest percentage of low- 
and moderate-income persons.
8. Technical Deficiencies and Pre-Award Requirements
    a. Technical Deficiencies: If there are technical deficiencies in 
successful applications, you must satisfactorily address these 
deficiencies before HUD can make a grant award. See the General Section 
at V.B.4. for information on curing deficiencies.
    b. Pre-award Requirements. Successful applicants may be required to 
provide supporting documentation concerning the management, 
maintenance, operation, or financing of proposed projects before a 
grant agreement can be executed. Such documentation may include 
additional specifications on the scope, magnitude, timing or method of 
implementing the project; or information to verify the commitment of 
other resources required to complete, operate, or maintain the proposed 
project. Applicants will be provided thirty (30) calendar days to 
respond to these requirements. No extensions will be provided. If you 
do not respond within the prescribed time period or you make an 
insufficient response, the Area ONAP will determine that you have not 
met the requirements and will withdraw the grant offer. You may not 
substitute new projects for those originally proposed in your 
application and any new information will not affect your project's 
rating and ranking. The Area ONAP will award, in accordance with the 
provisions of this NOFA, grant amounts that had been allocated for 
applicants unable to meet pre-award requirements.
9. Error and Appeals
    Judgments made within the provisions of this NOFA and the program 
regulations (24 CFR part 1003) are not subject to claims of error. You 
may bring arithmetic errors in the rating and ranking of applications 
to the attention of the Area ONAPs within 30 days of being informed of 
your score. Please see Section VI.A. of the General Section for further 
information regarding errors.
10. Performance and Compliance Actions of Funding Recipients
    HUD will measure and address the performance of and order 
compliance actions by funding recipients in accordance with the 
applicable standards and sanctions of their respective programs.

VI. Award Administration Information

A. Award Notices

    Awards are expected to be announced by October 31, 2006. As soon as 
rating and ranking are completed, the applicant has complied with any 
pre-award requirements, and Congressional Release has been obtained, a 
grant award letter, a grant agreement, and other forms and 
certifications will be mailed to the recipient for signature and return 
to the Area ONAP. The grant agreement, which is signed by HUD and the 
recipient, establishes the conditions by which both the Area ONAP and 
the recipient must abide during the life of the grant. All grants are 
conditioned upon the completion of all environmental obligations and 
approval of release of funds by the Area ONAP in accordance with the 
requirements of 24 CFR part 58. HUD may impose other grant conditions 
if additional actions or approvals are required before the use of 
funds.

B. Administrative and National Policy Requirements

1. Statutory and Regulatory Requirements
    a. Environmental Requirements. As required by 24 CFR 1003.605, 
ICDBG grantees must perform environmental reviews of ICDBG activities 
in accordance with 24 CFR part 58 (as amended 9/29/03). Grantees and 
other participants in the development process may not commit or expend 
any ICDBG or nonfederal funds on project activities (other than those 
listed in 24 CFR 58.22(f), 58.34 or 58.35(b)) until HUD has approved a 
Request for Release of Funds and environmental certification submitted 
by the grantee. The expenditure or commitment of ICDBG or nonfederal 
funds for such activities prior to HUD approval may result in the 
denial of assistance for the project or activities under consideration.
    b. Indian Preference. HUD has determined that the ICDBG program is 
subject to Section 7(b) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450e(b)). The provisions and requirements for 
implementing this section are in 24 CFR 1003.510.
    c. Anti-discrimination Provisions. Under the authority of Section 
107(e)(2) of the CDBG statute, HUD waived the requirement that 
recipients comply with the anti-discrimination provisions in Section 
109 of the CDBG statute with respect to race, color, and national 
origin. You must comply with the other prohibitions against 
discrimination in Section 109 (HUD's regulations for Section 109 are in 
24 CFR part 6) and with the Indian Civil Rights Act.
    d. Conflict of Interest. In addition to the conflict of interest 
requirements with respect to procurement transactions found in 24 CFR 
85.36 and

[[Page 11745]]

84.42, as applicable, the provisions of 24 CFR 1003.606 apply to such 
activities as the provision of assistance by the recipient or sub-
recipients to businesses, individuals, and other private entities under 
eligible activities that authorize such assistance.
    e. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Section 3 requirements apply to the ICDBG program, but as 
stated in 24 CFR 135.3(c), the procedures and requirements of 24 CFR 
part 135 apply to the maximum extent consistent with, but not in 
derogation of, compliance with Indian Preference.
2. OMB Circulars and Government-Wide Regulations Applicable to 
Financial Assistance Programs
    The policies, guidance and requirements of OMB Circular A-87, Cost 
Principles Applicable to Grants, Contracts and other Agreements with 
State and Local Governments; and OMB Circular A-122, Cost Principles 
for Nonprofit Organizations; and OMB Circular A-133, Audits of State 
and Local Governments, and Nonprofit Organizations; and the regulations 
at 24 CFR part 85, Administrative Requirements for Grants and 
Cooperative Agreements to State, Local and Federally Recognized Indian 
Tribal Governments apply to the award, acceptance, and use of 
assistance under the ICDBG program and to the remedies for 
noncompliance, except when inconsistent with the provisions of the 
Consolidated Appropriations Act, 2006 (Pub L. 109-115; approved 
November 30, 2005) or the ICDBG program regulations at 24 CFR part 
1003. Copies of the OMB Circulars may be obtained from EOP 
publications. Room 22000, New Executive Office Building, Washington, DC 
20503, telephone (202) 395-3080 (this is not a toll-free number) or 
(800) 877-8339 (TTY Federal Information Relay Service). Information may 
also be obtained from the OMB Web site at http://www.whitehouse.gov/omb/circulars/index.html.

C. Reporting

1. Post Award Reporting Requirements
    a. Quarterly Financial Reports. Grant recipients must submit 
quarterly to the Area ONAP a SF-272, Federal Cash Transaction Report. 
The report accounts for funds received and disbursed by the recipient.
    b. Annual Status and Evaluation Report. Recipients are required to 
submit this report in narrative form annually. The report is due 45 
days after the end of the Federal fiscal year and at the time of grant 
close-out. The report must include:
    (1) The narrative report must address the progress made in 
completing approved activities and include a list of work remaining, 
along with a revised implementation schedule if necessary. This should 
include progress on any outputs or outcomes specified in Rating Factor 
5 and incorporated into the final award document (applicants can use 
the logic model to address all or some of the narrative requirements). 
Further information regarding the Return on Investment(s) will be 
issued in a subsequent notice by HUD (see section V.A.2., Rating Factor 
5 of this NOFA for further information);
    (2) A breakdown of funds spent on each major project activity or 
category; and
    (3) If the project has been completed, an evaluation of the 
effectiveness of the project in meeting the community development needs 
of the grantee, as well as the final outputs and outcomes.
    c. Minority Business Enterprise Report. Recipients must submit this 
report on contract and subcontract activity during the first half of 
the fiscal year by April 10 and, by October 10 for the second half of 
the fiscal year.
    d. A close-out report must be submitted by the recipient within 90 
days of completion of grant activities. The report consists of the 
final Financial Status Report (forms SF 269 or 269A), the final Status 
and Evaluation Report including outposts and outcomes agreed upon in 
the final award document relating to Rating Factor 5 and the Close-Out 
Agreement. Further information regarding the Return on Investment(s) 
will be issued in a subsequent notice by HUD (see section V.A.2., 
Rating Factor 5 of this NOFA for further information).
    More information regarding these requirements may be found at 24 
CFR 1003.506 and 1003.508.

VII. Agency Contact(s)

A. General Questions

    You should direct general program questions to the Area ONAP 
serving your area or to Barbara Gallegos, at 602-379-7215. Persons with 
speech or hearing impairments may call HUD's TTY number (202) 708-0770, 
or 1-800-877-8339 (the Federal Information Relay Service TTY). Other 
than the ``800'' numbers, these numbers are not toll-free. You should 
direct questions concerning downloading the electronic application, 
registering with Grants.gov, or other questions regarding the 
electronic application to the Grants.gov support desk at 800-518-
GRANTS. You may also send an email to Grants.gov">Support@Grants.gov.

B. Technical Assistance

    Before the application submission deadline, HUD staff will be 
available to provide you with general guidance and technical assistance 
about the requirements in the General Section and this NOFA. However, 
HUD staff is not permitted to assist in preparing your application. 
Following selection of applicants, but before awards are made, HUD 
staff is available to assist in clarifying or confirming information 
that is a prerequisite to the offer of an award.

VIII. Other Information

A. NOFA Training

    Training for potential applicants on the requirements of the 
General Section, this NOFA, the Logic Model, and Grants.gov 
registration, will be provided by HUD via broadcast and webcast. 
Information on the training can be found in the General Section. The 
training schedule can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

B. Paperwork Reduction Act Statement

    The information collection requirements in this NOFA have been 
approved by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB 
control number 2577-0191. In accordance with the Paperwork Reduction 
Act, HUD may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection displays 
a valid OMB control number. Public reporting burden for the collection 
of information is estimated to average 43 hours per annum for the 
application and grant administration. This includes the time for 
collecting, reviewing, and reporting the data. The information will be 
used for grantee selection and monitoring the administration of funds. 
Response to this request for information is required in order to 
receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11746]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.006


[[Page 11747]]



Historically Black Colleges and Universities (HBCU) Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Policy Development and Research, Office of 
University Partnerships.
    B. Funding Opportunity Title: Historically Black Colleges and 
Universities (HBCU) Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Numbers: The Federal Register Number is FR-
5030-N-28. The OMB Approval Number is 2528-0235.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: The CFDA 
Number for is program is 14.520.
    F. Dates: The application deadline date is May 19, 2006. Please be 
sure to read the General Section for electronic application submission 
and receipt requirements.
    G. Additional Overview Content Information:
    1. Purpose of the Program: To assist Historically Black Colleges 
and Universities (HBCU) to expand their role and effectiveness in 
addressing community development needs in their localities, including 
neighborhood revitalization, housing and economic development, 
principally for persons of low- and moderate-income consistent with the 
purposes of Title I of the Housing and Community Development Act of 
1974, as amended.
    2. Award Information: In Fiscal Year (FY) 2006, approximately $8.9 
million has been made available by the Department of Housing and Urban 
Development Appropriations Act, 2006 (Pub. L. 109-115; approved Nov. 
30, 2005) of which up to $1,000,000 has been allocated to provide 
technical assistance. In addition, $2.5 million in previously 
unobligated funds are available for this program. HUD will award two 
types of grants under this program: Category I and Category II.
    a. Category I Grants will be awarded to provide critical resources 
and assistance to institutions that sustained in excess of $50 million 
in damage and destruction from hurricanes Katrina or Rita in FY 2005. 
No assistance may be provided for any expenses compensated through 
insurance or otherwise provided or paid by any other program, persons, 
and/or entity. Applicants can request up to $2,000,000 for a three-year 
(36 months) grant performance period.
    b. Category II Grants will be awarded to institutions to expand 
their role and effectiveness in addressing community development needs 
in their localities, or a designated disaster area including 
neighborhood revitalization, housing and economic development. 
Applicants can request up to $600,000 for a three-year (36 months) 
grant performance period.
    Approximately $6 million will be made available to fund Category I 
applicants. In addition, approximately $4.4 million will be made 
available to fund Category II applicants. If funding designated for 
Category I Applicants remains after all eligible applicants are 
awarded, the remaining funds will be made available to fund eligible 
Category II Applicants.
    Only one application can be submitted per institution. In addition, 
an applicant can only apply under one category. If multiple 
applications are submitted under one category, all will be 
disqualified. If an applicant submits applications under both funding 
categories, all applications will be disqualified.
    3. Eligible Applicants: Historically Black Colleges and 
Universities that meet the definition of Historically Black Colleges 
and Universities as determined by the Department of Education in 34 CFR 
608.2 in accordance with that Department's responsibilities under 
Executive Order 13256, dated February 12, 2002. Applicants must be 
institutions of higher education accredited by a national or regional 
accrediting agency recognized by the U.S. Department of Education.

Full Text of Announcement

I. Funding Opportunity Description

    The purpose of the Historically Black Colleges and Universities 
(HBCU) Program is to expand their role and effectiveness in addressing 
community development needs in their localities, including neighborhood 
revitalization, housing, and economic development, principally for 
persons of low- and moderate-income, consistent with the purpose of the 
Title I of Housing and Community Development Act of 1974, as amended.
    For the purposes of Category II Applicants applying under this 
program NOFA, the term ``locality'' includes any city, county, 
township, parish, village, or other general political subdivision of a 
state, or the U.S. Virgin Islands where the institution is located and 
the term ``target area'' is the area within the locality in which the 
institution will implement its proposed HBCU grant. If an institution 
wants to provide services/activities in a location other than the 
target area of that institution an applicant must provide justification 
for why they want to do so.

A. Authority

    HUD's authority for making funding available under this NOFA is the 
Department of Housing and Urban Development Appropriations Act, 2006 
(Pub. L. 109-115; approved Nov. 30, 2005). This program is being 
implemented through this NOFA and the policies governing its operation 
are contained herein.

B. Modifications

    Listed below are major modifications from the Fiscal Year (FY) 2005 
program-funding announcement:
    1. The 15 percent cap on the total grant amount that can be used on 
public service activities that benefit low- and moderate-income persons 
can now be waived. Institutions seeking to devote more than 15 percent 
of the grant funds to public service activities must include a written 
request in their application addressed to Darlene F. Williams, 
Assistant Secretary for Policy Development and Research. The written 
request must include the following information: (1) The basis for the 
request; (2) a description of the proposed public service activities; 
(3) the dollar amount dedicated to the proposed public service 
activities; and (4) a statement describing how the proposed activities 
meet the Community Development Block Grant eligibility requirements and 
at least one national objective. This letter must be included in the 
applicant's application.
    2. Commitment letters, memoranda of understanding and/or agreements 
are not required at the time of application submission but must be on 
file. Applicants selected for award will be required to submit the 
signed commitment letters, memoranda of understanding and/or agreements 
outlined in the application, within twenty (20) calendar days after 
initial contact from the Office of University Partnerships (OUP). OUP 
will provide specific instructions on how these documents must be 
submitted at that time. HUD will only request and consider the 
resources/organizations outlined in the application. If OUP does not 
receive those documents in the required format and allotted timeframe, 
an applicant will not receive points under this factor and the 
application will be rated and ranked to address this point change.
    3. Current HBCU grantees that have two or more active HBCU grants 
are no longer required to have drawn down 50 percent or more prior to 
this application deadline date to be eligible to apply for funding 
under this NOFA.
    4. All applicants submitting electronic applications must attach 
their narrative

[[Page 11748]]

responses to Rating Factors 1-5 as one attachment. PLEASE DO NOT ATTACH 
YOUR RESPONSE TO EACH FACTOR SEPARATELY.

II. Award Information

    In Fiscal Year (FY) 2006, approximately $8.9 million is made 
available for this program, of which up to $1,000,000 has been 
allocated to provide technical assistance. In addition $2.4 million in 
previously unobligated funds. HUD will award two types of grants under 
this program: Category I and Category II.
    A. Category I Grants will be awarded to provide critical resources 
and assistance to institutions that sustained in excess of $50 million 
in damage and destruction from hurricanes Katrina or Rita in FY2005. No 
assistance may by provided for any expenses compensated through 
insurance or otherwise provided or paid by any other program, persons, 
and/or entity. Applicants can request up to $2,000,000 for a three-year 
(36 months) grant performance period.
    B. Category II Grants will be awarded to expand institutions to 
their role and effectiveness in addressing community development needs 
in their localities, or a designated disaster area including 
neighborhood revitalization, housing and economic development. 
Applicants can request up to $600,000 for a three-year (36 months) 
grant performance period.
    Approximately $6 million will be made available to fund Category I 
applicants. In addition, approximately $4.4 million will be made 
available to fund Category II applicants. If funding designated for 
Category I Applicants remains after all eligible applicants are 
awarded, the remaining funds will be made available to fund eligible 
Category II Applicants.
    Only one application can be submitted per institution. In addition, 
an applicant can only apply under one category. If multiple 
applications are submitted under one category, all will be 
disqualified. If an applicant submits applications under both funding 
categories, all applications will be disqualified.

III. Eligibility Information

A. Eligible Applicants

    Historically Black Colleges and Universities as determined by the 
U.S. Department of Education in 34 CFR 608.2 in accordance with that 
Department's responsibilities under Executive Order 13256, dated 
February 12, 2002. All applicants must be institutions of higher 
education accredited by a national or regional accrediting agency 
recognized by the U.S. Department of Education.

B. Cost Sharing or Matching

    None Required.

C. Other

1. Eligible Activities
    Eligible activities are listed in 24 CFR part 570, subpart C, 
particularly Sec. Sec.  570.201 through 570.206. Information regarding 
these activities can be found at: www.hudclips.org (click on the Code 
of Federal Regulations for detailed information). a. Examples of 
eligible activities include, but are not limited to:
    (1) Acquisition of real property;
    (2) Clearance and demolition (Applicants applying for Category I 
funding may undertake eligible activities such as clearance and 
demolition or rehabilitation on their own campuses/facilities);
    (3) Rehabilitation of residential structures including lead-based 
paint hazard evaluation and reduction and making accessibility and 
visitability modifications in accordance with the requirements of 
Section 504 of the Rehabilitation Act of 1973;
    (4) Public facilities and improvements, such as water and sewer 
facilities and streets compliance with accessibility requirements 
including Section 504 of the Rehabilitation Act of 1973, the Fair 
Housing Act, and the American with Disabilities Act of 1990;
    (5) Special economic development activities described at 24 CFR 
570.203 and assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    (6) Assistance to community-based development organizations (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation projects, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD-approved 
local entitlement grantee, CDBG Neighborhood Revitalization Strategy 
(NRS) or HUD-approved State CDBG Community Revitalization Strategy 
(CRS);
    (7) Public service activities such as those general support 
activities that can help to stabilize a neighborhood and contribute to 
sustainable redevelopment of the area, including but not limited to 
such activities as those concerned with employment, crime prevention, 
child care, health care services, drug abuse, education, fair housing 
counseling, energy conservation, homebuyer down payment assistance, 
establishment and maintenance of Neighborhood Network centers in 
federally assisted or insured housing, job training and placement, and 
recreational needs;
    (8) Payments of reasonable grant administrative costs related to 
planning and execution of the project (e.g., preparation/submission of 
HUD reports). Detailed explanations of these costs are provided in the 
OMB circular (A-21 Cost Principals for Educational Institutions) that 
can be accessed at the White House Web site, www.whitehouse.gov/omb/circulars/index.html; and
    (9) Fair housing services designed to further the civil rights 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
familial status and/or disability aware of the range of housing 
opportunities available to them.
    b. Eligible activities funded under this program meet both the 
Community Development Block Grant (CDBG) Program eligibility 
requirements and at least one of the national objectives.
    c. The three national objectives of the Community Development Block 
Grant program are:
    (1) Benefit to low-or moderate-income persons;
    (2) Aid in the prevention or elimination of slums or blight; and
    (3) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
national objective are provided at 24 CFR 570.208.
    d. The CDBG publication entitled ``Community Development Block 
Grant Program Guide to National Objectives and Eligible Activities for 
Entitlement Communities'' describes the CDBG regulations, and a copy 
can be obtained from HUD's NOFA Information Center at 800-HUD-8929 or 
800-HUD-2209 for the hearing-impaired.
2. Audit Requirements
    See Section III.C. of the General Section.
3. Threshold Requirements Applicable to All Applicants
    All applicants must comply with the threshold requirements as 
defined in the General Section and the requirements listed below. 
Applications that do not meet these requirements will be

[[Page 11749]]

considered ineligible for funding and will be disqualified:
    a. The applicant must meet the eligibility requirements as defined 
in Section III.A.
    b. The maximum amount of funding an applicant can request under 
Category I Grants is $2,000,000 for a three-year (36 months) grant 
performance period. The maximum amount of funding an applicant can 
request for funding under Category II Grants is $600,000 for a three-
year (36 months) grant performance period.
    c. Only one application can be submitted per institution. In 
addition, an applicant can only apply under one category. If multiple 
applications are submitted under one category, all will be 
disqualified. If an applicant submits applications under both funding 
categories, all applications will be disqualified.
    d. Applicants must receive a minimum score of 75 points to be 
considered for funding.
    e. An applicant must have a DUNS number to receive HUD grant funds. 
(See the General Section).
    f. Electronic applications must be received and validated by 
grants.gov no later than 11:59:59 p.m. eastern time on the application 
deadline date of May 19, 2006.
4. Program Requirements
    In addition to the program requirements listed in Section III.C of 
the General Section, applicants must meet the following program 
requirements:
    a. All funds awarded are for a three-year (36 months) grant 
performance period.
    b. Applicants must ensure that not less than 51 percent of the 
aggregated expenditures of the grant benefit low- and moderate-income 
persons under the criteria specified in 24 CFR 570.208(a) or 
570.208(d)(5) or (6).
    c. Site Control. Where grant funds will be used for acquisition, 
rehabilitation, or new construction an applicant must demonstrate site 
control. Funds may be recaptured or deobligated from applicants that 
cannot demonstrate control of a suitable site within one year after the 
initial notification of award.
    d. Environmental Requirements. Selection for award does not 
constitute approval of any proposed sites. Following selection for 
award, HUD will perform an environmental review of properties proposed 
for assistance in accordance with 24 CFR part 50. The results of the 
environmental review may require that proposed activities be modified 
or proposed sites be rejected. Applicants are particularly cautioned 
not to undertake or commit funds for acquisition or development of 
proposed properties prior to HUD approval of specific properties or 
areas. An application constitutes an assurance that the institution 
will assist HUD to comply with part 50; Will supply HUD with all 
available and relevant information to perform an environmental review 
for each proposed property; will carry out mitigating measures required 
by HUD or select alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair, or construct property, 
and not commit or expend HUD or local funds for these program 
activities with respect to any eligible property until HUD's written 
approval of the property is received. In supplying HUD with 
environmental information, applicants should use the same guidance as 
provided in the HUD Notice CPD-05-07 entitled, ``Field Environmental 
Review Processing for Rural Housing and Economic Development (RHED) 
Grants'' issued August 30, 2005.
    Further information and assistance on HUD's environmental 
requirements is available at: http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/lawsregs/notices/2005/05-07.pdf.
    e. Labor Standards. Institutions and their sub-grantees, 
contractors and subcontractors must comply with the labor standards 
(Davis-Bacon) requirements referenced in 24 CFR 570.603.
    f. Economic Opportunities for Low-and Very-Low Income Persons 
(Section 3). The provisions of Section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) apply to this NOFA and 
requires that, to the greatest extent feasible, opportunities for 
training and employment be given to lower-income residents of the 
project and contracts for work in connection with the project be 
awarded in substantial part to persons residing in the area of the 
project. Regulations are located at 24 CFR part 135.

IV. Application and Submission Information

A. Addresses to Request Application Package

    Applicants may download the instructions to the application found 
on the Grants.gov Web site at http://www.grants.gov/Apply. If you have 
difficulty accessing the information you may call the Grants.gov 
Support Desk toll free at 800-518-GRANTS or e-mail your questions to 
Grants.gov">Support@Grants.gov. See the General Section for information regarding 
the registration process or ask for registration information from the 
Grants.gov Support Desk.

B. Content and Form of Application Submission

1. Forms
    The following forms are required for submission. Copies of these 
forms are available on line at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    a. Application for Federal Assistance (SF-424);
    b. Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
    c. Grant Application Detailed Budget (HUD-424-CB);
    d. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    e. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    f. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    g. Program Logic Model (HUD-96010);
    h. Budget-By-Activity (HUD-40076);
    i. Acknowledgement of Applicant Receipt (HUD-2993). Complete this 
form if you have received a waiver to the electronic application 
submission requirement. Applicants are not required to include this 
form;
    j. You Are Our Client Grant Applicant Survey (HUD-2994-A). 
Applicants are not required to complete this form; and
    k. Facsimile Transmittal Cover Page (HUD-96011). This form must be 
used as the cover page to transmit third party documents and other 
information. Applicants are advised to download the application 
package, complete the SF-424 first and it will pre-populate the 
Transmittal Cover page. The Transmittal Cover page will contain a 
unique identifier embedded in the page that will help HUD associate 
your faxed materials to your application. Please do not use your own 
fax sheet. HUD will not read any faxes that are sent without the HUD-
96011 fax transmittal cover page.
2. Certifications and Assurances
    Please read the General Section for detailed information on all 
Certifications and Assurances. All applications submitted through 
Grants.gov constitute an acknowledgement and agreement to all required 
certifications and assurances. Please include in your application each 
item listed below. Applicants submitting paper copy applications should 
submit the application in the following order:
    a. SF-424, Application for Federal Assistance. Please remember the 
following:

[[Page 11750]]

    (1) The full grant amount requested from HUD (entire three-years) 
should be entered, not the amount for just one year;
    (2) Include the name, title, address, telephone number, facsimile 
number, and e-mail address of the designated contact. This is the 
person who will receive all correspondence, therefore, please ensure 
the accuracy of the information;
    (3) The Employer Identification/Tax ID number;
    (4) The DUNS Number;
    (5) The Catalog of Federal Domestic Assistance Number for this 
program is 14.520;
    (6) The project's proposed start date and completion date. For the 
purpose of this application, the program start date should be December 
1, 2006; and
    (7) The signature of the Authorized Organization Representative 
(AOR) who by virtue of submitting an application via Grants.gov has 
been authenticated by the credential provider to submit applications on 
behalf of the Institution and approved by the eBusiness Point of 
Contact to submit an application via Grants.gov. The AOR must be able 
to make a legally binding agreement with HUD. For details on the 
Grants.gov registration process see HUD's Notice on Early Registration 
published in the Federal Register on December 9, 2005.
    b. Application Checklist. Applicants should use the checklist to 
ensure that they have all the required components of their application. 
Applicants that receive a waiver of the electronic application 
submission requirement must include a copy of the checklist in their 
application submission. Applicants submitting an electronic application 
should not submit the checklist. The checklist can be located in 
Appendix A.
    c. Abstract. Applicants must include no more than a two-page 
summary of the proposed project. Please include the following:
    (1) A clear description of the proposed project activities, where 
they will take place (be located), the target population that will be 
assisted, and the impact this project is expected to have on the 
community and institution;
    (2) A statement that the institution is an eligible institution 
because it is a fully accredited institution, the name of the 
accrediting agency and an assurance that the accrediting agency is 
recognized by the U.S. Department of Education;
    (3) The designated contact person, including phone number, 
facsimile number, and e-mail address (This is the person who will 
receive all correspondence; therefore, please ensure the accuracy of 
the information);
    (4) The principal director, if different from the designated 
contact person, for the project, including phone number, facsimile 
number, and e-mail address.
    d. Narrative statement addressing the Factors. HUD will use the 
narrative response to the ``Rating Factors'' to evaluate, rate, and 
rank applications. The narrative statement is the main source of 
information. Applicants are advised to review each factor carefully for 
program specific requirements. The response to each factor should be 
concise and contain only information relevant to the factor, yet 
detailed enough to address each factor fully. Please do not repeat 
material in response to the five factors; instead, focus on how well 
the proposal responds to each of the factors. Where there are 
subfactors each subfactor must be presented separately, with the short 
title of the subfactor presented. Make sure to address each subfactor 
and provide sufficient information about every element of the 
subfactor. The narrative section of an application must not exceed 50 
pages in length (excluding forms, budget narrative, assurances, and 
abstract) and must be submitted on 8\1/2\ by 11-inch paper, double-
spaced on one side of the paper, with one inch margins (from the top, 
bottom, and left to right side of the document) and printed in standard 
Times New Roman 12-point font. Each page of the narrative must include 
the applicant's name and be should be numbered. Note that although 
submitting pages in excess of the page limit will not disqualify an 
applicant, HUD will not consider the information on any excess pages. 
This exclusion may result in a lower score or failure to meet a 
threshold requirement. All applicants submitting electronic 
applications must attach their narrative responses to Rating Factors 1-
5 as one attachment. PLEASE DO NOT ATTACH YOUR RESPONSE TO EACH FACTOR 
SEPARATELY.
    e. Budget. The budget submission must include the following:
    (1) HUD-424-CB, ``Grant Application Detailed Budget.'' This form 
shows the total budget by year and by line item for the program 
activities to be carried out with the proposed HUD grant. Each year of 
the program should be presented separately. Applicants must also submit 
this form to reflect the total cost (summary) for the entire grant 
performance period (Grand Total).
    (2) HUD-40076-HBCU, ``Response Sheet, Budget-By-Activity'' This 
form must be used to document the entire three-year grant performance 
period. The form should include a listing of tasks to be completed for 
each activity necessary to be performed to implement the program, the 
overall costs for each activity, and the cost from each funding source. 
The budget-by-activity should clearly indicate the HUD grant amount and 
identify the source and dollar amount of the leveraged resources, if 
any.
    Make sure that the amounts shown on the SF-424, HUD-424-CB, HUD-
40076-HBCU and all other required program forms are consistent and the 
budget totals are correct. Remember to check addition in totaling the 
categories on all forms so that all items are included in the total. If 
there is an inconsistency between any of the required budget forms, the 
HUD-424-CB will be used. All budget forms must be completed fully. If 
an application is selected for award, the applicant may be required to 
provide greater specificity to the budget during grant agreement 
negotiations.
    (3) Budget Narrative. A narrative must be submitted that explains 
how the applicant arrived at the cost estimates for any line item over 
$5,000 cumulative. For example, an applicant proposes to construct a 
building using HUD funding totaling $200,000. The following costs 
estimate reflects this total. Foundation cost $75,000, electrical work 
$40,000, plumbing work $40,000, finishing work $35,000, and landscaping 
$10,000. The proposed cost estimates should be reasonable for the work 
to be performed and consistent with rates established for the level of 
expertise required to perform the work proposed in the geographical 
area. When necessary, quotes from various vendors or historical data 
should be used (please make sure they are kept on file and are 
available for review by HUD at any time). When an applicant proposes to 
use a consultant, the applicant must indicate whether there is a formal 
written agreement. For each consultant, please provide the name, if 
known, hourly or daily rate, and the estimated time on the project. 
Applicants must use a cost estimate based on historical data from the 
institution, and/or from a qualified firm (e.g., Architectural or 
Engineering firm), vendor, and/or qualified individual (e.g., 
independent architect or contractor) other than the institution for 
projects that involve rehabilitation of residential, commercial and/or 
industrial structures, and/or acquisition, construction, or 
installation of public facilities and improvements. Such an entity must 
be involved in the business of housing rehabilitation, construction 
and/or management. Equipment and contracts cannot be presented as a 
total estimated costs. For equipment,

[[Page 11751]]

applicants must provide a list by type and cost for each item. 
Applicants using contracts must provide an individual description and 
cost estimate for each contract. Construction costs must be broken down 
to indicate how funds will be utilized (e.g., demolition, foundation, 
exterior walls, roofing, electrical work, plumbing, finishing work, 
etc.)
    (4) Indirect costs. Indirect costs, if applicable, are allowable 
based on an established approved indirect cost rate. Applicants must 
have on file and submit to HUD if selected for funding a copy of their 
indirect cost rate agreement. Applicants who are selected for funding 
that do not have an approved indirect cost rate agreement, established 
by the cognizant federal agency), will be required to establish a rate. 
In such cases, HUD will issue an award with a provisional rate and 
assist applicants in having a rate established.
    f. Appendix. Applicants receiving a waiver of the electronic 
submission requirements and submitting a paper copy of the application 
must place all required forms in this section. An applicant SHOULD NOT 
submit resumes, or other back-up materials. If this information is 
included, it will not be considered during the review process.

C. Submission Dates and Times

    A complete application package must be received and validated 
electronically by the Grants.gov portal no later than 11:59:59 p.m. 
eastern time on or before the applications deadline date of May 19, 
2006. In an effort to address any issues with transmission of your 
application, applicants are strongly encouraged to submit their 
applications prior to the application deadline. This will allow an 
applicant enough time to make the necessary adjustments to meet the 
submission deadline. Please see the General Section for further 
instructions. Electronic faxes using the Facsimile Transmittal cover 
sheet (Form HUD-96011) contained in the electronic application must be 
received no later than 11:59:59 p.m. eastern time on the application 
submission deadline date.

D. Intergovernmental Review

    This program is excluded from an Intergovernmental Review.

E. Funding Restrictions

    Ineligible CDBG Activities are listed at 24 CFR 570.207. Ineligible 
activities include but are not limited to:
    1. Curriculum development and/or expansion of an institution's 
existing curriculum;
    2. General government expenses; and
    3. Political activities.

F. Other Submission Requirements

1. Application Submission and Receipt Procedure
    Please read the General Section carefully and completely for the 
submission and receipt procedures for all applications because failure 
to comply may disqualify your application.
2. Waiver of Electronic Submission Requirements
    Please refer to the General Section for further discussion. Paper 
applications will not be accepted from applicants that have not been 
granted a waiver. If an applicant is granted a waiver, the Office of 
University Partnerships will provide instructions for submission. 
Applicants that submit a paper application must be received by or 
before the application deadline date.

V. Application Review Information

A. Criteria

1. Rating Factor 1: Capacity of the Applicant and Relevant Experience 
(25 Points)
    This factor addresses the extent to which the institution has the 
resources necessary to successfully implement the proposed activities 
in a timely manner.
    a. Knowledge and Experience For Category I and First Time Category 
II Applicants (25 Points) For Previously Funded Category II Applicants 
(10 Points). In rating this subfactor, HUD will consider the extent to 
which the applicant clearly addresses the following:
    (1) Describe the knowledge and experience of the proposed project 
director and staff, including the day-to-day program manager, 
consultants (including technical assistance providers), and contractors 
in planning and managing the type of project for which funding is being 
requested; and
    (2) Clearly identify the following: key project team members, 
titles (e.g., project manager/coordinator, etc.), respective roles for 
the project staff, and a brief description of their relevant 
experience.
    If key personnel have not been hired, applicants must identify the 
position title, provide a description of duties and responsibilities, 
and describe the qualifications to be considered in the selection of 
personnel, including subcontractors and consultants.
    Experience will be judged in terms of recent and relevant knowledge 
and skills of the staff to undertake the proposed eligible program 
activities. HUD will consider experience within the last five (5) years 
to be recent and experience pertaining to similar activities to be 
relevant.
    b. Past Performance (15 points) For Previously Funded Category II 
Applicants. This subfactor will evaluate how well an applicant has 
performed successfully under HUD/HBCU grants. Applicants must 
demonstrate this by addressing the following information on the HUD-
40076-HBCU ``Response Sheet: (Performance Narrative) for all previously 
completed and open HBCU grants:
    (1) A list of all HUD/HBCU grants received, including the dollar 
amount awarded and the amount expended as of the date of this 
application. The HUD-40076-HBCU ``Response Sheet'' (Performance 
Narrative) form is located at the following Web site: http://www.hud.gov/offices/adm/grants/fundsavail.cfmin. The form should be 
filled out completely;
    (2) A description of the achievement of specific tasks, measurable 
objectives, and specific outcomes consistent with the approved 
timeline/work plan;
    (3) A comparison of the amount of proposed leveraged funds and/or 
resources to the amount that was actually leveraged;
    (4) A detailed description of compliance with all reporting 
requirements, including timeliness of submission, whether reports were 
complete and addressed all information (both narrative and financial) 
as required by the grant agreement; and
    (5) A list detailing the date the project(s) was completed, was it 
completed in the original three-year grant performance period; if not 
completed why (including when it was or will be completed);
    HUD will also review an applicant's past performance in managing 
funds, including, but not limited to: The ability to account for 
funding appropriately; timely use of funds received from HUD; meeting 
performance targets for completion of activities; timely submission of 
required progress reports and receipt of promised leveraged resources. 
In evaluating past performance, HUD reserves the right to deduct up to 
five (5) points from this rating score as a result of the information 
obtained from HUD's records (i.e., progress and financial reports, 
monitoring reports, Logic Model submissions, and amendments).
2. Rating Factor 2: Need/Extent of the Problem (15 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need(s). In addressing this factor,

[[Page 11752]]

applicants should provide, at a minimum, the following and must cite 
statistics and/or analyses contained in one or more current data 
sources that are sound and reliable.
    (1) Describe the need(s); and
    (2) Describe the importance of meeting the proposed needs. In 
rating this factor, HUD will consider only current data that is 
specific to the area where the proposed project activities will be 
carried out. Sources for localized data can be found at: www.ffiec.gov.
    HUD will also consider data collected within the last five (5) 
years to be current. To the extent that the targeted community's Five 
Year Consolidated Plan and Analysis of Impediments to Fair Housing 
Choice (AI) identify the level of the problem and the urgency in 
meeting the need, applicants should include references to these 
documents in response to this factor (this is applicable only to 
applicants applying for funding under Category II).
    Other reliable data sources include, but are not limited to, Census 
reports, HUD Continuum of Care gap analysis and its E-MAP (To find 
additional information go to HUD's Web site: http://www.hud.gov/emaps), 
law enforcement agency crime reports, Public Housing Agencies' 
Comprehensive Plans, community needs analyses such as provided by the 
United Way, the applicant's institution, and other sound, reliable an 
appropriate sources. Needs in terms of fulfilling court orders or 
consent decrees, settlements, conciliation agreements, and voluntary 
compliance agreements may also be addressed.
3. Rating Factor 3: Soundness of Approach (40 Points)
    This factor addresses the quality and effectiveness of the proposed 
work plan and the commitment of the institution to sustain the proposed 
activities.
    This factor will be evaluated based on the extent to which the 
proposed work plan demonstrates the following:
    a. Quality of the Work Plan. This subfactor will be evaluated on 
the extent to which an applicant provides a clear detailed description 
of the proposed project and anticipated accomplishments.
    (1) Specific Activities. For Category I Applicants (28 Points). For 
Category II Applicants (25 Points). The work plan must describe all 
proposed activities and major tasks required to successfully implement 
the proposed project and anticipated accomplishments. In addressing 
this subfactor, applicants must provide a clear description of the 
proposed activities and address the following:
    (a) Describe each activity required to successfully implement and 
complete the proposed project in measurable terms (e.g., the number of 
persons to be trained and employed; houses to be rehabilitated; or 
minority-owned businesses to be started, etc.);
    (b) List and describe how each activity meets one of the following 
Community Development Block Grant (CDBG) Program national objectives:
     Benefit low- and moderate-income persons;
     Aid in the prevention or elimination of slums or blight; 
or
     Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
objective are provided at 24 CFR 570.208;
    (c) Describe the major tasks required (in sequential order) to 
successfully implement and complete each activity. Include target 
completion dates for each task (in 6 month intervals, up to thirty-six 
(36) months);
    (d) Identify the key staff, as described in Factor 1, who will be 
responsible and accountable for completing each activity; and
    (e) Describe how the project director will work with the partners 
and citizens to accomplish the proposed activities.
    (2) (8 Points) Describe clearly how each proposed activity will:
    (a) Expands the role of the institution in the community 
(applicable only to Category II Applicants);
    (b) Address the needs identified in Factor 2;
    (c) Relate to and not duplicate other activities in the target 
area. Duplicative effort will be acceptable only if an applicant can 
demonstrate through documentation that there is a population in need 
that is not being served; and
    (d) Involve and empower citizens of the target area in the proposed 
project particularly through a committee that is representative of the 
target community (applicable only to Category II Applicants).
    b. (3 Points) Involvement of the Faculty and Students (For Category 
II Applicants Only). The applicant must describe how it proposes to 
integrate the institution's students and faculty into proposed project 
activities
    c. (2 Points) HUD Policy Priorities. To earn points under this 
subfactor, HUD requires applicants to undertake specific activities 
that will assist the Department in implementing its policy priorities 
that help the Department achieve its goals and objectives in FY 2007, 
when the majority of grant recipients will be reporting programmatic 
results and achievements. In addressing this subfactor, HUD will 
evaluate the extent to which a program will further and support HUD's 
priorities. The quality of the responses provided to one or more of 
HUD's priorities will determine the score an applicant can receive. 
Applicants must describe how each policy priority selected will be 
addressed. Applicants that just list a priority will receive no points. 
Please refer to the General Section for additional information about 
HUD's policy priorities.
    The total number of points an applicant can receive under this 
subfactor is two (2). Each policy priority addressed has a point value 
of one (1) point with the exception of the policy priority to remove 
regulatory barriers to affordable housing, which has a point value of 
up to two (2) points. To receive these two (2) points an applicant must 
indicate how this priority will be addressed and an applicant must 
indicate how this priority will be addressed and submit the completed 
questionnaire (HUD-27300) ``HUD's Initiative on Removal of Regulatory 
Barriers'' found in the General Section along with required 
documentation. It is up to the applicant to determine which of the 
policy priorities they elect to address to receive the available two 
(2) points.
    d. (2 Points) Economic Opportunities for Low- and Very-Low Income 
Persons (Provision of Section 3). This subfactor will be evaluated on 
the extent to which an applicant describes how it proposes to:
    (1) Provide opportunities to train and employ lower-income 
residents of the project area; and
    (2) Award substantial contracts to persons residing in the project 
area.
    Regulations regarding the provision of Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) can be located at 24 
CFR part 135.
4. Rating Factor 4: Leveraging Resources (8 Points)
    This factor addresses the ability of the applicant to secure 
resources that can be combined with HUD's grant funds to achieve the 
program's purpose.
    In evaluating this factor, HUD will consider how well the applicant 
has established partnerships with other entities to secure additional 
resources to increase the effectiveness of the proposed project 
activities. Resources

[[Page 11753]]

may include funding or in-kind contributions, such as services or 
equipment, allocated for the purpose(s) of the proposed project 
activities. Resources may be provided by governmental entities, public 
or private nonprofit organizations, for-profit private organizations, 
or other entities. Applicants may also establish partnerships with 
other program funding recipients to coordinate the use of resources in 
the target area. Overhead and other institutional costs (e.g., 
salaries, indirect costs, etc.) that the institution has waived may be 
counted. Examples of potential sources for outside assistance include:
     Federal, state, and local governments;
     Local or national nonprofit organizations;
     Financial institutions and/or private businesses;
     Foundations;
     Faith-based and other community-based organizations;
    To address this factor, an applicant must provide an outline in the 
application and have on file written commitment letters, memoranda of 
understanding and/or agreements that show the extent and firm 
commitment of all proposed leveraged resources (including any 
commitment of resources from the applicant's own institution) that 
address the following information for each leveraged resource/fund:
    (1) The name of the organization and the executive officer 
authorizing the funds/goods and/or services (Only applicable to the 
narrative section);
    (2) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and its use is not 
shown, the funding will not be counted);
    (3) A specific description of how each contribution is to be used 
toward the proposed activities;
    (4) The date the contribution will be made available and a 
statement that describes the duration of the contribution;
    (5) Any terms or conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (6) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services. (Only applicable to 
the written documentation) Please remember that only items eligible for 
funding under this program can be counted.
    Commitment letters, memoranda of understanding and/or agreements 
are not required at the time of application submission but you must 
have them on file. Applicants selected for award will be required to 
submit the signed commitment letters, memoranda of understanding and/or 
agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). Letters, memoranda of understanding, or agreements must be 
submitted on the provider's letterhead and should be addressed to 
Sherone Ivey, Acting Associate Deputy Assistant Secretary for 
University Partnerships. The date of the letter, memorandum of 
understanding, or agreement from the CEO of the provider organization 
must be dated no earlier than nine months prior to this published NOFA. 
OUP will provide specific instructions on how these documents must be 
submitted when contact is made with the applicant. HUD will only 
request and consider the resources/organizations that are listed in the 
outline submitted in the application. If OUP does not receive those 
documents in the required format and allotted timeframe, an applicant 
will not receive points under this factor and the application will be 
rated and ranked to address this point change.
5. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points)
    This factor reflects HUD's goal to embrace high standards of 
management and accountability. It measures the applicant's commitment 
to assess their performance to achieve the program's proposed 
objectives and goals. Applicants are required to develop an effective, 
quantifiable, outcome oriented evaluation plan for measuring 
performance and determining that objectives and goals have been 
achieved. The Logic Model is a summary of the narrative statements 
presented in Factors 1-4. Therefore, it should be consistent with the 
information contained in the narrative statements.
    ``Outcomes'' are benefits accruing to the community during or after 
participation in the HBCU program. Applicants must clearly identify the 
outcomes to be measured and achieved. Examples of outcomes include 
increased employment opportunities in the target community by a certain 
percentage, increased incomes/wages or other assets for persons 
trained, or enhanced family stability through the creation of 
affordable housing opportunities (e.g., increased assets to families 
and communities through the development of affordable housing).
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new affordable housing units, the number of 
homes that have been renovated, and the number of facilities that have 
been constructed or rehabilitated. Outputs should produce outcomes for 
the program. At a minimum, an applicant must address the following 
activities in the evaluation plan:
    a. Measurable objectives to be accomplished (e.g., the number of 
persons to be trained and employed; houses to be built pursuant to 24 
CFR 570.207 or rehabilitated; minority-owned businesses to be started);
    b. Measurable impacts the grant will have on the community in 
general and the target area or population; and
    c. The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the grant performance period.
    The information must be placed on a HUD-96010, Program Outcome 
Logic Model form. HUD has developed a new approach to completing this 
form. Please carefully read the General Section for instructions; 
training is available. A narrative is not required. However, if a 
narrative is provided, those pages will be included in the page count. 
(Form HUD-96010 will be excluded from the page count.)

B. Review and Selection Process

1. Application Selection Process.
    Two types of reviews will be conducted:
    a. A threshold review to determine an applicant's basic 
eligibility; and
    b. A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Rating Factors'' 
listed in Section V.A.
    Only those applications that pass the threshold review will receive 
a technical review.
2. Rating Panels
    To review and rate applications HUD may establish panels, which may 
include experts or consultants not currently employed by HUD to obtain 
certain expertise.
3. Ranking
    HUD will fund applications in rank order, until all available 
program funds are awarded. In order to be funded, an applicant must 
receive a minimum score of 75 points out of a possible 100 points. The 
RC/EZ/EC-II, as described in the General Section does not apply to this 
program. If two or more applications have the same number of

[[Page 11754]]

points, the application with the most points for Factor 3 shall be 
selected. If there is still a tie, the application with the most points 
for Factor 1 shall be selected. If there is still a tie, the 
application with the most points for Factor 2, 4 and then 5 shall be 
selected in that order until the tie is broken. HUD reserves the right 
to make selections out of rank order to provide for geographic 
distribution of grantees. HUD also reserves the right to reduce the 
amount of funding requested in order to fund as many highly ranked 
applications as possible. Additionally, if funds remain after funding 
the highest ranked applications, HUD may fund part of the next highest-
ranking application. If an applicant turns down an award offer, HUD 
will make an award to the next highest-ranking application. If funds 
remain after all selections have been made, the remaining funds will be 
carried over to the next funding cycle's competition.
4. Correction to Deficient Applications
    See the General Section.

C. Anticipated Announcement and Award Dates

    Announcements of awards are anticipated on or before September 30, 
2006.

VI. Award Administration Information

A. Award Notice

    After all selections have been made, HUD will notify all winning 
applications in writing. HUD may require winning applicants to 
participate in additional negotiations before receiving an official 
award. For further discussion on this matter, please refer to the 
General Section.

B. Administrative and National Policy Requirements

    Refer to Section VI.B. in the General Section.
    1. Debriefing. The General Section provides the procedures for 
requesting a debriefing. All requests for debriefings must be made in 
writing and submitted within thirty (30) calendar days of receipt of 
written notification to: Ophelia Wilson, Office of University 
Partnerships, Robert C. Weaver Federal Building, 451 Seventh Street, 
SW., Room 8130, Washington, DC 20410-6000.
    2. Administrative. Grants awarded under this NOFA will be governed 
by the provisions of 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations), A-21 (Cost Principles for Educational Institutions) and 
A-133 (Audits of States, Local Governments, and Non-Profit 
Organizations). Applicants can access the OMB circulars at the White 
House Web site at www.whitehouse.gov/omb/circulars/index.html.
    3. OMB Circulars and Governmentwide Regulations Applicable to 
Financial Assistance Programs. The General Section provides further 
discussion on this matter.
    4. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects. See the General 
Section for further discussion.
    5. Procurement of Recovered Materials. The General Section provides 
further discussion on the matter.
    6. Code of Conduct. See the General Section for further discussion.

C. Reporting

    All grant recipients under this NOFA are required to submit 
quarterly progress reports. The progress reports shall consist of two 
components, a narrative that must reflect the activities undertaken 
during the reporting period and a financial report that reflects costs 
incurred by budget line item, as well as a cumulative summary of costs 
incurred during the reporting.
    For each reporting period, as part of the required report to HUD, 
grant recipients must include a completed Logic Model form (HUD-96010), 
which identifies output and outcome achievements.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment (ROI) statement. HUD will be 
publishing a separate notice on the ROI concept.

VII. Agency Contacts

    Applicants may contact Ophelia Wilson at (202) 708-3061, extension 
4390 or Susan Brunson at (202) 708-3061, extension 3852. Persons with 
speech or hearing impairments may call the Federal Information Relay 
Service (TTY) at (800) 877-8339. Except for the ``800'' number, these 
numbers are not toll-free. Applicants may also reach Ms. Wilson via e-
mail at [email protected], and/or Ms. Brunson at [email protected].

VIII. Other Information

Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2528-0235. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 356 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, semi-annual and 
final reports. 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.

Appendix A--Application Checklist--HBCU

    This checklist identifies application submission requirements. 
Applicants are requested to use this checklist when preparing an 
application to ensure submission of all required elements. Applicants 
submitting an electronic application do not have to submit the 
checklist. Applicants that receive a waiver of the electronic 
application submission requirement must include a copy of the checklist 
in their application.
    Check off to ensure these items have been included in the 
application:

----SF-424 ``Application For Federal Assistance''
----Application Checklist (Applicants that submit paper applications 
must include the checklist in their applications)
----Abstract (must include no more than a two-page summary of the 
proposed project)

    Indicate the page number where each of the Factors are located:
    Narrative Statement Addressing the Rating Factors.
    The narrative section of an application must not exceed 50 pages in 
length (excluding forms, budget narrative and abstract). This 
information must be submitted on 8\1/2\ by 11-inch paper, double-spaced 
on one side of the paper, with one-inch margins (from the top, bottom, 
left, and right sides of the documents) and printed in standard Times 
New-Roman 12-point font.

----Factor I
----Factor II
----HUD-40076, ``Response Sheet Performance Narrative'' (If applicable)
----Factor III
----Factor IV

[[Page 11755]]

----Factor V
----HUD-96010 ``Logic Model''

    Check off to ensure these items have been included in the 
application:
Appendix

----Budget
----HUD 424-CB'' Grant Application Detailed Budget.''
----HUD-40076-HBCU ``Budget-By-Activity''
----Budget Narrative (No form provided and must be submitted for the 
total three-year grant period)

Appendix B (All Required Forms)

    The following forms are required for submission. All required forms 
are contained in the electronic application package.

----Application for Federal Assistance (SF-424);
----Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
----Grant Application Detailed Budget (HUD-424-CB);
----Disclosure of Lobbying Activities (SF-LLL), if applicable;
----America's Affordable Communities Initiative (HUD-27300), if 
applicable;
----Applicant/Recipient Disclosure/Update Report (HUD-2880);
----HUD-2993, Acknowledgement of Applicant Receipt (Only applicants 
that submit paper applications);
----You Are Our Client Grant Applicant Survey (HUD-2994-A);
----Response Sheet Performance Narrative (HUD-40076) if applicable;
----Program Logic Model (HUD-96010); and
----Facsimile Transmittal (HUD-96011) required as the cover page to 
third party documents transmitted by facsimile to HUD. See the General 
Section.

BILLING CODE 4210-01-P

[[Page 11756]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.007


[[Page 11757]]



Hispanic-Serving Institutions Assisting Communities (HSIAC) Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Policy Development and Research, Office of 
University Partnerships.
    B. Funding Opportunity Title: Hispanic-Serving Institutions 
Assisting Communities (HSIAC) Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Numbers: The Federal Register Number is FR-
5030-N-19. The OMB Approval Number is 2528-0198.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: The CDFA 
Number for this program is 14.514.
    F. Dates: The application deadline date is May 22, 2006. Please be 
sure to read the General Section for electronic application submission 
and receipt requirements.
    G. Additional Overview Content Information;
    1. Purpose of the Program: To assist Hispanic-Serving Institutions 
(HSI) expand their role and effectiveness in addressing community 
development needs in their localities, including neighborhood 
revitalization, housing, and economic development, principally for 
persons of low- and moderate-income, consistent with the purposes of 
Title I of the Housing and Community Development Act of 1974, as 
amended.
    2. Award Information: In Fiscal Year (FY) 2006, approximately $5.94 
million has been made available for this program by the Department of 
Housing and Urban Development Appropriations Act, 2006 (Pub. L. 109-
115; approved Nov. 30, 2005) and an additional $78,000 in carryover 
funds. An applicant can request up to $600,000 for a three-year (36 
months) grant performance period.
    3. Eligible Applicants: Nonprofit Hispanic-Serving Institutions 
that meet the definition of an HSI established in Title V of the 1998 
Amendments to the Higher Education Act of 1965 (Pub. L. 105-244; 
enacted October 7, 1998). In order to meet this definition, at least 25 
percent of the full-time undergraduate students enrolled in an 
institution must be Hispanic and not less than 50 percent of these 
Hispanic students must be low-income individuals. Institutions are not 
required to be on the list of eligible HSIs prepared by the U.S. 
Department of Education. However, an institution that is not on the 
list is required to provide a statement in the application that the 
institution meets the U.S. Department of Education's statutory 
definition of an HSI. In addition, all applicants must be institutions 
of higher education granting two-or four-year degrees that are fully 
accredited by a national or regional accrediting agency recognized by 
the U.S. Department of Education. If an applicant is one of several 
campuses of the same institution, the applicant may apply separately 
from the other campuses as long as the campus has a separate 
administrative structure and budget and meets the enrollment test 
outlined above.

Full Text of Announcement

I. Funding Opportunity Description

    The purpose of the Hispanic Serving Institutions Assisting 
Communities (HSIAC) Program is to assist Hispanic Serving Institutions 
(HSI) of higher education expand their role and effectiveness in 
addressing community development needs in their localities, including 
neighborhood revitalization, housing and economic development, 
principally for persons of low- and moderate-income consistent with the 
purpose of the Title I of the Housing and Community Development Act of 
1974, as amended.
    For the purpose of this program, the term ``locality'' includes any 
city, county, township, parish, village, or other general political 
subdivision of a state, Puerto Rico, or the U.S. Virgin Islands where 
the institution is located.
    A ``target area'' is the area within the locality in which the 
institution will implement its proposed HSIAC grant.

A. Authority

    HUD's authority for making this funding available under this NOFA 
is Department of Housing and Urban Development Appropriations Act, 2006 
(Pub. L. 109-115; approved Nov. 30, 2005). This program is being 
implemented through this NOFA and the policies governing its operation 
are contained herein.

B. Modifications

    Listed below are major modifications from the Fiscal Year (FY) 2005 
program-funding announcement:
    1. Commitment letters, memoranda of understandings and/or 
agreements are not required at the time of application submission but 
must be on file. Applicants selected for award will be required to 
submit the signed commitment letters, memoranda of understandings and/
or agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). OUP will provide specific instructions on how these documents 
must be submitted at that time. HUD will only request and consider the 
resources/organizations outlined in the application. If OUP does not 
receive those documents in the required format and allotted timeframe, 
an applicant will not receive points under this factor and the 
application will be rated and ranked to address this point change.
    In scoring this factor, HUD will rate an applicant that provides 
leveraging resources that are 15 percent or more of the amount 
requested under this program and that are properly documented, as 
listed, below will be awarded nine (9) points; applicants that provide 
leveraging resources that are 10-14 percent of the amount requested 
under this program and that are properly documented, as listed below, 
will be awarded six (6) points; applicants that provide leveraging 
resources that are 5-9 percent of the amount requested under this 
program and that are properly documented, as listed below, will be 
awarded three (3) points; applicants that provide leveraging resources 
that are less than 5 percent of the amount requested or resources are 
not properly documented will receive zero points.
    2. Current HSIAC grantees no longer have to draw down at least 75% 
of the funding awarded under past grants prior to this application 
deadline date to be eligible to apply for funding under this NOFA.
    3. All applicants must be institutions of higher education granting 
two-or four-year degrees that are accredited by a national or regional 
accrediting agency recognized by the U.S. Department of Education.
    4. All applicants submitting electronic applications must attach 
their narrative responses to Rating Factors 1-5 as one attachment. 
PLEASE DO NOT ATTACH YOUR RESPONSE TO EACH FACTOR SEPARATELY.

II. Award Information

    In Fiscal Year (FY) 2006, approximately $5.94 million is made 
available for this program and an additional $78,000 in carryover 
funds. An applicant can request up to $600,000 for a three-year (36 
months) grant performance period.

III. Eligibility Information

A. Eligible Applicants

    Nonprofit Hispanic-serving institutions that meet the definition of 
an HSI of higher education established in Title V of the 1998 
Amendments to the Higher Education Act of 1965 (Pub. L. 105-244; 
enacted October 7, 1998). In order to meet this definition, at least 25

[[Page 11758]]

percent of the full-time undergraduate students enrolled in an 
institution must be Hispanic and not less than 50 percent of these 
Hispanic students must be low-income individuals. Institutions are not 
required to be on the list of eligible HSIs prepared by the U.S. 
Department of Education. However, an institution that is not on the 
list is required to provide a statement in the application that the 
institution meets the U.S. Department of Education's statutory 
definition of an HSI as cited above. In addition, all applicants must 
be institutions of higher education granting two-or four-year degrees 
that are fully accredited by a national or regional accrediting agency 
recognized by the U.S. Department of Education. If an applicant is one 
of several campuses of the same institution, the applicant may apply 
separately from the other campuses as long as the campus has a separate 
administrative structure and budget and meets the enrollment test 
outlined above.

B. Cost Sharing or Matching

    None Required.

C. Other

    1. Eligible Activities. Eligible activities are listed in 24 CFR 
Part 570, subpart C, particularly Sec.  570.201 through 570.206. 
Information regarding these activities can be found at: 
www.hudclips.org (click on the Code of Federal Regulations for detailed 
information).
    a. Examples of eligible activities include, but are not limited to:
    (1) Acquisition of real property;
    (2) Clearance and demolition;
    (3) Rehabilitation of residential structures including lead-based 
paint hazard evaluation and reduction and making accessibility and 
visitabilty modifications in accordance with the requirements of 
Section 504 of the Rehabilitation Act of 1973;
    (4) Public facilities and improvements, such as water and sewer 
facilities and streets compliance with accessibility requirements, 
including Section 504 of the Rehabilitation Act of 1973, the Fair 
Housing Act, and the American with Disabilities Act of 1990;
    (5) Relocation payments and other assistance for permanently and 
temporarily relocated individuals, families, businesses, nonprofit 
organizations, and farm operations where the assistance is:
    (a) Required under the provisions of 24 CFR 570.606(b) or (c); or
    (b) Determined by the grantee to be appropriate under the 
provisions of 24 CFR 570.606(d);
    (6) Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a) (25) of the Housing and 
Community Development Act of 1974;
    (7) Special economic development activities described at 24 CFR 
570.203 and assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    (8) Assistance to community-based development organizations (CBDO) 
to carry out a CDBG neighborhood revitalization, community economic 
development, or energy conservation project, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD-approved 
local entitlement grantee, CDBG Neighborhood Revitalization Strategy 
(NRS) or HUD-approved State CDBG Community Revitalization Strategy 
(CRS);
    (9) Public service activities such as general support activities 
that can help to stabilize a neighborhood and contribute to sustainable 
redevelopment of the area, including but not limited to such activities 
as those concerned with employment, crime prevention, child care, 
health care services, drug abuse, education, housing counseling, energy 
conservation, homebuyer down payment assistance, establish and maintain 
Neighborhood Network centers in federally assisted or insured housing, 
job training and placement and recreational needs;
    (10) Up to 20 percent of the grant may be used for payments of 
reasonable grant administrative costs related to planning and execution 
of the project (e.g., preparation/submission of HUD reports). Detailed 
explanations of these costs are provided in OMB circular A-21 Cost 
Principals for Educational Institutions that can be accessed at the 
White House Web site at: www.whitehouse.gov/omb/circulars/index.html;
    (11) Fair housing services designed to further civil rights 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
familial status and/or disability aware of the range of housing 
opportunities available to them; and
    b. Each activity proposed for funding must meet the Community 
Development Block Grant (CDBG) Program eligibility requirements and at 
least one national objective.
    c. The three national objectives of the Community Development Block 
Grant program are:
    (1) Benefit to low-or moderate-income persons;
    (2) Aid in the prevention or elimination of slums or blight; and
    (3) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
national objectives are provided at 24 CFR 570.208.
    d. The CDBG publication entitled ``Community Development Block 
Grant Program Guide to National Objectives and Eligible Activities for 
Entitlement Communities'' describes the CDBG regulations, and a copy 
can be obtained from HUD's NOFA Information Center at 800-HUD-8929 or 
800-HUD-2209 for the hearing-impaired.
    2. Audit Requirements. See Section III.C. of the General Section.
    3. Threshold Requirements Applicable to all Applicants. All 
applicants must comply with the threshold requirements as defined in 
the General Section and the requirements listed below. Applications 
that do not meet these requirements will be considered ineligible for 
funding and will be disqualified.
    a. The applicant must meet the eligibility requirements as defined 
in Section III.A.
    b. The applicant may request up to $600,000.
    c. Only one application can be submitted per campus. If multiple 
applications are submitted, all will be disqualified. However, 
different campuses of the same university system are eligible to apply 
as long as they have an administrative and budgeting structure 
independent of the other campuses in the system.
    d. Institutions that received an HSIAC grant in FY2005 are not 
eligible to submit an application under this NOFA. If an institution 
received an HSIAC grant in FY2002, FY2003, or FY2004, the institution 
may apply under this NOFA as long as it proposes a different activity 
(activities) in their current project location, or proposes replicating 
their current project in a new location.
    e. Applicants must receive a minimum score of 75 points to be 
considered for funding.
    f. An applicant must have a DUNS number to receive HUD grant funds 
(See the General Section).
    g. Electronic applications must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on the application 
deadline date of May 22, 2006.

[[Page 11759]]

    4. Program Requirements. In addition to the program requirements 
listed in Section III.C of the General Section, applicants must meet 
the following program requirements:
    a. All funds awarded are for a three-year (36 months) grant 
performance period.
    b. Applicants must ensure that not less than 51 percent of the 
aggregated expenditures of a grant award are use to benefit low- and 
moderate-income persons under the criteria specified in 24 CFR 
570.208(a) or 570.208(d)(5) or (6).
    c. Site Control. Where grant funds will be used for acquisition, 
rehabilitation, or new construction an applicant must demonstrate site 
control. Funds may be recaptured or deobligated from applicants that 
cannot demonstrate control of a suitable site within one year after the 
initial notification of award.
    d. Environmental Requirements. Selection for award does not 
constitute approval of any proposed sites. Following selection for 
award, HUD will perform an environmental review of properties proposed 
for assistance in accordance with 24 CFR Part 50. The results of the 
environmental review may require that proposed activities be modified 
or proposed sites be rejected. Applicants are particularly cautioned 
not to undertake or commit funds for acquisition or development of 
proposed properties prior to HUD approval of specific properties or 
areas. An application constitutes an assurance that the institution 
will assist HUD to comply with part 50; will supply HUD with all 
available and relevant information to perform an environmental review 
for each proposed property; will carry out mitigating measures required 
by HUD or select alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair, or construct property, 
and not commit or expend HUD or local funds for these program 
activities with respect to any eligible property until HUD's written 
approval of the property is received. In supplying HUD with 
environmental information, applicants should use the same guidance as 
provided in the HUD Notice CPD-05-07 entitled, ``Field Environmental 
Review Processing for Rural Housing and Economic Development (RHED) 
grants'' issued August 30, 2005. The General Section provides further 
discussion of the environmental requirements. Further information and 
assistance on HUD's environmental requirements is available at: http://hudstage.hud.gov/utilities/intercept.cfm?/offices/cpd/lawsregs/notices/2005/05-07.pdf.
    e. Labor Standards. Institutions and their sub-grantees, 
contractors, and subcontractors must comply with the labor standards 
(Davis-Bacon) requirements referenced in 24 CFR 570.603.
    f. Economic Opportunities for Low- and Very-Low Income Persons 
(Section 3). The provisions of Section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) apply to this NOFA and 
requires that to the greatest extent feasible opportunities for 
training and employment be given to lower-income residents of the 
project and contracts for work in connection with the project be 
awarded in substantial part to person residing in the area of the 
project. Regulations are located at 24 CFR Part 135.

IV. Application and Submission Information

A. Addresses to Request Application Package

    Applicants may download the instructions to the application found 
on the Grants.gov Web site at http://www.Grants.gov./Apply. If you have 
difficulty accessing the information you may call the Grants.gov 
Support Desk toll free 800-518-GRANTS or e-mail your questions to 
Grants.gov">Support@Grants.gov. See the General Section for information regarding 
the registration process or ask for registration information from the 
Grants.gov Support Desk.

B. Content and Form of Application Submission

1. Forms
    The following forms are required for submission. Copies of these 
forms are available online at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    a. Application for Federal Assistance (SF-424);
    b. Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
    c. Grant Application Detailed Budget (HUD-424-CB);
    d. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    e. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    f. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    g. Program Logic Model (HUD-96010);
    h. Certification of Consistency with RC/EZ/EC-II Strategic Plan 
(HUD-2990), if applicable;
    i. Certification of Consistency with the Consolidated Plan (HUD-
2991), if applicable;
    j. Acknowledgement of Applicant Receipt (HUD-2993). Complete this 
form only if you have received a waiver to the electronic application 
submission requirement. Applicants submitting electronically are not 
required to include this form;
    k. Facsimile Transmittal Cover Page (HUD-96011). This form must be 
used as the cover page to transmit third party documents and other 
information. Applicants are advised to download the application 
package, complete the SF-424 first and it will pre-populate the 
Transmittal Cover page. The Transmittal Cover page will contain a 
unique identifier embedded in the page that will help HUD associate 
your faxed materials to your application. Please download the cover 
page and then make multiple copies to provide to any of the entities 
responsible for submitting faxed materials to HUD on your behalf. 
Please do not use your own fax sheet. HUD will not read any faxes that 
are sent without the HUD-96011 fax transmittal cover page; and
    l. You Are Our Client Grant Applicant Survey (HUD-2994-A). 
Applicants are not required to complete this form.
    2. Certifications and Assurances. Please read the General Section 
for detailed information on all Certifications and Assurances. All 
applications submitted through Grants.gov constitute an acknowledgement 
and agreement to all required certifications and assurances. Please 
include in your application each item listed below. Applicants 
submitting paper copy applications should submit the application in the 
following order:
    a. SF-424, Application for Federal Assistance. Please remember the 
following:
    (1) The full grant amount requested from HUD (entire three years) 
should be entered, not the amount for just one year;
    (2) Include the name, title, address, telephone number, facsimile 
number, and e-mail address of the designated contact. This is the 
person who will receive all correspondence; therefore, please ensure 
the accuracy of the information;
    (3) The Employer Identification/Tax ID;
    (4) The DUNS Number;
    (5) The Catalog of Federal Domestic Assistance Number for this 
program is 14.514;
    (6) The project's proposed start date and completion date. For the 
purpose of this application, the program start date should be December 
1, 2006; and
    (7) The signature of the Authorized Organization Representative 
(AOR) who, by virtue of submitting an application via Grants.gov, has 
been

[[Page 11760]]

authenticated by the credential provider to submit applications on 
behalf of the Institution and approved by the eBusiness Point of 
Contact to submit an application via Grants.gov. The AOR must be able 
to make a binding legal agreement with HUD. For details on the 
Grants.gov registration process see HUD's Notice on Early Registration 
published in the Federal Register on December 9, 2005.
    b. Application Checklist. Applicants should use the checklist to 
ensure that they have all the required components of their application. 
Applicants submitting an electronic application should not submit the 
checklist. Applicants that receive a waiver of the electronic 
application submission must include a copy of the checklist in their 
application submission. The checklist can be located in Appendix A.
    c. Abstract. Applicants must include no more than a two-page 
summary of the proposed project. Please include the following:
    (1) A clear description of the proposed project activities, where 
they will take place (be located), the target population that will be 
assisted, and the impact this project is expected to have on the 
community and institution;
    (2) A statement that the institution is an eligible institution 
because it is a two-or four-year fully accredited institution, the name 
of the accrediting agency and an assurance that the accrediting agency 
is recognized by the U.S. Department of Education;
    (3) A statement that the institution meets the definition of an 
Hispanic Serving Institution: At least 25 percent of the full-time 
undergraduate students enrolled in an institution must be Hispanic and 
not less than 50 percent of these Hispanic students must be low-income 
individuals;
    (4) The designated contact person, including phone number, 
facsimile number, and e-mail address (This is the person who will 
receive all correspondence; therefore please ensure the accuracy of the 
information);
    (5) The project director, if different from the designated contact 
person, for the project, including phone number, facsimile number, and 
e-mail address.
    d. Narrative statement addressing the Factors. HUD will use the 
narrative response to the ``Rating Factors'' to evaluate, rate, and 
rank applications. The narrative statement is the main source of 
information. Applicants are advised to review each factor carefully for 
program specific requirements. The response to each factor should be 
concise and contain only information relevant to the factor, yet 
detailed enough to address each factor fully. Please do not repeat 
material in response to the five factors; instead, focus on how well 
the proposal responds to each of the factors. Where there are 
subfactors, each subfactor must be presented separately, with the short 
title of the subfactor presented. Make sure to address each subfactor 
and provide sufficient information about every element of the 
subfactor. The narrative section of an application must not exceed 50 
pages in length (excluding forms, budget narrative, assurances, and 
abstract) and must be submitted on 8\1/2\ by 11-inch paper, double-
spaced on one side of the paper, with one inch margins (from the top, 
bottom and left to right side of the document) and printed in standard 
Times New Roman 12-point font. Each page of the narrative must include 
the applicant's name and be numbered. Note that although submitting 
pages in excess of the page limit will not disqualify an applicant, HUD 
will not consider the information on any excess pages. This exclusion 
may result in a lower score or failure to meet a threshold requirement. 
All applicants submitting electronic applications must attach their 
narrative responses to Rating Factors 1-5 as one attachment. PLEASE DO 
NOT ATTACH YOUR RESPONSE TO EACH FACTOR SEPARATELY.
    e. Budget. The budget submission must include the following:
    (1) HUD-424-CB, ``Grant Application Detailed Budget.'' This form 
shows the total budget by year and by line item for the program 
activities to be carried out with the proposed HUD grant. Each year of 
the program should be presented separately. Applicants must also submit 
this form to reflect the total cost for the entire grant performance 
period (Grand Total).
    Make sure that the amounts shown on the SF-424, the HUD-424-CB, and 
on all other required program forms are consistent and the budget 
totals are correct. Remember to check addition in totaling the 
categories on all forms so that all items are included in the total. If 
there is an inconsistency between any of the required budget forms, the 
HUD-424-CB will be used. All budget forms must be fully completed. If 
an application is selected for award, the applicant may be required to 
provide greater specificity to the budget during grant agreement 
negotiations.
    (2) Budget Narrative. A narrative must be submitted that explains 
how the applicant arrived at the cost estimates for any line item over 
$5,000 cumulative. For example, an applicant proposes to construct a 
building using HUD funding totaling $200,000. The following costs 
estimate reflects this total. Foundation cost $75,000, electrical work 
$40,000, plumbing work $40,000, finishing work $35,000, and landscaping 
$10,000. The proposed cost estimates should be reasonable for the work 
to be performed and consistent with rates established for the level of 
expertise required to perform the work proposed in the geographical 
area. When necessary, quotes from various vendors or historical data 
should be used (please make sure they are kept on file and are 
available for review by HUD at any time). All direct labor or salaries 
must be supported with mandated city/state pay scales, the Davis-Bacon 
rate, (if applicable) or other documentation. When an applicant 
proposes to use a consultant, the applicant must indicate whether there 
is a formal written agreement. For each consultant, please provide the 
name, if known, hourly or daily rate, and the estimated time on the 
project. Applicants must use cost estimates based on historical data 
from the institution and/or from a qualified firm (e.g., Architectural 
or Engineering firms), vendor, and/or qualified individual (e.g., 
independent architect or contractor) other than the institution for 
projects that involve rehabilitation of residential, commercial and/or 
industrial structures, and/or acquisition, construction, or 
installation of public facilities and improvements. Such an entity must 
be involved in the business of housing rehabilitation, construction 
and/or management. Equipment and contracts cannot be presented as a 
total estimated cost. For equipment, applicants must provide a list by 
type and cost for each item. Applicants using contracts must provide an 
individual description and cost estimate for each contract. 
Construction costs must be broken down to indicate how funds will be 
utilized (e.g., demolition, foundation, exterior walls, roofing, 
electrical work, plumbing, finishing work, etc.).
    (3) Indirect costs. Indirect costs, if applicable, are allowable 
based on an established approved indirect cost rate. Applicants must 
have on file, and submit to HUD if selected for award, a copy of their 
indirect cost rate agreement. Applicants who are selected for funding 
that do not have an approved indirect cost rate agreement, established 
by the cognizant federal agency, will be required to establish a rate. 
In such cases, HUD will issue an award with a provisional rate and 
assist applicants with the process of establishing a final rate.
    f. Appendix. Applicants receiving a waiver of the electronic 
submission requirements and submitting a paper copy of the application 
must place all

[[Page 11761]]

required forms in this section. An applicant SHOULD NOT submit resumes, 
or other back-up materials. If this information is included, it will 
not be considered during the review process.

C. Submission Dates and Times

    A complete application package must be received and validated 
electronically by the Grants.gov portal no later than 11:59:59 p.m. 
eastern time on or before the application deadline date of May 22, 
2006. In an effort to address any issues with transmission of your 
application, applicants are strongly encouraged to submit their 
applications prior to the application deadline. This will allow an 
applicant enough time to make the necessary adjustments to meet the 
submission deadline. Please see the General Section for further 
instructions. Electronic faxes using the Facsimile Transmittal cover 
sheet (Form HUD-96011) contained in the electronic application must be 
received no later than 11:59:59 p.m. eastern time on the application 
deadline date.

D. Intergovernmental Review

    This program is excluded from an Intergovernmental Review.

E. Funding Restrictions

    Ineligible CDBG Activities are listed at 24 CFR 570.207. Ineligible 
activities include but are not limited to:
    a. Curriculum development and/or expansion of an institution's 
existing curriculum;
    b. General government expenses;
    c. Political activities;
    d. Planning and administrative activities that would result in a 
grantee exceeding the 20 percent cost limitation on such activities; 
and
    e. Construction, renovation, expansion of an institution's own 
facilities.

F. Other Submission Requirements

1. Application Submission and Receipt Procedure
    Please read the General Section carefully and completely for the 
submission and receipt procedures for all applications because failure 
to comply may disqualify your application.
2. Waiver of Electronic Submission Requirement
    Please refer to the General Section for further discussion. Paper 
applications will not be accepted from applicants that have not been 
granted a waiver. If an applicant is granted a waiver, the Office of 
University Partnerships will provide instructions for submission. 
Applicants that submit a paper application must be received by or 
before the application deadline date.

V. Application Review Information

A. Criteria

1. Rating Factor 1: Capacity of the Applicant and Relevant Experience 
(25 Points)
    This factor addresses the extent to which the applicant has the 
resources necessary to successfully implement the proposed project in a 
timely manner.
    a. Knowledge and Experience For First Time Applicants (25 Points); 
For Previously Funded Applicants (10 Points). In rating this subfactor, 
HUD will consider how well an applicant clearly addresses the 
following:
    (1) Describe the knowledge and experience of the proposed project 
director and staff, including the day-to-day program manager/
coordinator, consultants (including technical assistance providers), 
and contractors in planning and managing the type of project for which 
funding is being requested; and
    (2) Clearly identify the following: key project team members, 
titles (e.g., project manager/coordinator, etc.), respective roles for 
the project staff, and a brief description of their relevant 
experience.
    If key personnel have not been hired, applicants must identify the 
position title, provide a description of duties and responsibilities, 
and describe the qualifications to be considered in the selection of 
personnel, including subcontractors and consultants.
    Experience will be judged in terms of recent and relevant knowledge 
and skills of the staff to undertake eligible program activities. HUD 
will consider experience within the last five (5) years to be recent 
and experience pertaining to similar activities to be relevant.
    b. Past Performance (15 Points) For Previously Funded Grant 
Applicants Only. This subfactor will evaluate how well an applicant has 
performed successfully under HUD/HSIAC grants. Applicants must 
demonstrate this by addressing the following information for all 
previously completed and open HUD/HSIAC grants:
    (1) A list of all HUD/HSIAC grants received, including the dollar 
amount awarded and the amount expended and obligated as of the date of 
this application;
    (2) A description of the achievement of specific tasks, measurable 
objectives, and specific outcomes consistent with the approved project 
management plan;
    (3) A list detailing the date the project(s) was completed, was it 
completed in the original three-year grant performance period; if not 
completed, why (including when it was or will be completed);
    (4) A comparison of the amount of proposed leveraged funds and/or 
resources to the amount that was actually leveraged; and
    (5) A detailed description of compliance with all reporting 
requirements, including timeliness of submission, whether reports were 
complete and addressed all information (both narrative and financial) 
as required by the grant agreement.
    HUD will also review an applicant's past performance in managing 
funds, including, but not limited to: The ability to account for 
funding appropriately; timely use of funds received from HUD; meeting 
performance targets for completion of activities; timely submission of 
required progress reports and receipt of promised leveraged resources. 
In evaluating past performance, HUD reserves the right to deduct up to 
five (5) points from this rating score as a result of the information 
obtained from HUD's records (i.e., progress and financial reports, 
monitoring reports, Logic Model submissions, and amendments).
2. Rating Factor 2: Need/Extent of the Problem (10 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need(s) in the target area. The need(s) 
described must be relevant to the activities for which funds are being 
requested. In addressing this factor, applicants should provide, at a 
minimum, the following and must cite statistics and/or analyses 
contained in at least one or more current data sources that are sound 
and reliable.
    (1) Describe the need(s); and
    (2) Describe the importance of meeting the proposed needs.
    In rating this factor, HUD will consider only current data that is 
specific to the area where the proposed project activities will be 
carried out. Sources for localized data can be found at: www.ffiec.gov.
    HUD will consider data collected within the last five (5) years to 
be current. To the extent that the targeted community's Five Year 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI) identify the level of the problem and the urgency in meeting the 
need, applicants should include references to these documents in the 
response to this factor.
    Other reliable data sources include, but are not limited to, Census 
reports,

[[Page 11762]]

HUD Continuum of Care gap analysis and its E-MAP (www.hud.gov/emaps), 
law enforcement agency crime reports, Public Housing Agencies' 
Comprehensive Plans, community needs analyses such as those provided by 
the United Way, the applicant's institution, and other sound, reliable 
and appropriate sources. Needs in terms of fulfilling court orders or 
consent decrees, settlements, conciliation agreements, and voluntary 
compliance agreements may also be addressed.
3. Rating Factor 3: Soundness of Approach (44 Points)
    This factor addresses the quality and effectiveness of the proposed 
work plan and the commitment of the institution to sustain the proposed 
activities.
    a. (37 Points) Quality of the Work Plan. This subfactor will be 
evaluated on the extent to which an applicant provides a clear detailed 
description of the proposed project and anticipated accomplishments.
    (1) (32 Points) Specific Activities. The work plan must describe 
all proposed activities and major tasks required to successfully 
implement the proposed project. In addressing this subfactor applicants 
must provide a clear description of the proposed activities and address 
the following:
    (a) Describe each activity to successfully implement and complete 
the proposed project in measurable terms (e.g., the number of persons 
to be trained and employed; houses to be built or rehabilitated; or 
minority owned businesses to be started, etc.);
    (b) List and describe how each activity meets one of the following 
Community Development Block Grant (CDBG) Program national objectives:
     Benefit low- and moderate-income persons;
     Aid in the prevention or elimination of slums or blight; 
or
     Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
objective are provided at 24 CFR 570.208;
    (c) Describe the major tasks required (in sequential order) to 
successfully implement and complete each project activity. Include 
target completion dates for these tasks (in 6 month intervals, up to 36 
months);
    (d) Identify the key staff, as described in Factor 1, who will be 
responsible for completing each task; and
    (e) Describe how the project director will work with the partners 
and citizens to accomplish the proposed activities.
    (2) (5 Points) Describe clearly how each proposed activity will:
    (a) Expands the role of the institution in the community;
    (b) Address the needs identified in Factor 2;
    (c) Relate to and not duplicate other activities in the target 
area. Duplicative effort will be acceptable only if an applicant can 
demonstrate through documentation that there is a population in need 
that is not being served; and
    (d) Involve and empower citizens of the target area in the proposed 
project.
    b. (3 Points) Involvement of the Faculty and Students. The 
applicant must describe how it proposes to integrate the institution's 
students and faculty into proposed project activities.
    c. (2 Points) HUD Policy Priorities. To earn points under this 
subfactor, HUD requires applicants to undertake specific activities 
that will assist the Department in implementing its policy priorities 
and that will help the Department achieve its goals and objectives in 
FY 2007, when the majority of grant recipients will be reporting 
programmatic results and achievements. In rating this subfactor, HUD 
will evaluate the extent to which a program will further and support 
HUD's priorities. The quality of the responses provided to one or more 
of HUD's priorities will determine the score an applicant can receive. 
Applicants must describe how each policy priority selected will be 
addressed. Applicants that just list a priority will receive no points.
    The total number of points an applicant can receive under this 
subfactor is two (2). Each policy priority addressed has a point value 
of one (1) point with the exception of the policy priority to remove 
regulatory barriers to affordable housing, which has a point value of 
up to two (2) points. To receive these two (2) points an applicant must 
indicate how this priority will be addressed and submit the completed 
questionnaire (HUD-27300) ``HUD's Initiative on Removal of Regulatory 
Barriers'' found in the General Section along with required 
documentation. It is up to the applicant to determine which of the 
policy priorities they elect to address to receive the available two 
(2) points.
    d. (2 Points) Economic Opportunities for Low- and Very-Low Income 
Persons (Provision of Section 3). This subfactor will be evaluated on 
the extent to which an applicant describes how it proposes to:
    (1) Provide opportunities to train and employ lower-income 
residents of the project area; and
    (2) Award substantial contracts to persons residing in the project 
area.
    Regulations regarding the provision of Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) can be located at 24 
CFR Part 135.
    4. Rating Factor 4: Leveraging Resources (9 Points)
    This factor addresses the ability of the applicant to secure 
resources that can be combined with HUD's grant funds to achieve the 
program's purpose.
    HUD will consider how well an applicant has established 
partnerships with other entities to secure additional resources to 
increase the effectiveness of the proposed project activities. 
Resources may include funding or in-kind contributions, such as 
services or equipment, allocated for the purpose(s) of the proposed 
project activities. Resources may be provided by governmental entities, 
public or private nonprofit organizations, for-profit private 
organizations, or other entities. Applicants may also establish 
partnerships with other program funding recipients to coordinate the 
use of resources in the target area. Overhead and other institutional 
costs (e.g., salaries, indirect costs, etc.) that the institution has 
waived may be counted.
    Examples of potential sources for outside assistance include:
     Federal, state, and local governments;
     Local or national nonprofit organizations;
     Financial institutions and/or private businesses;
     Foundations; and
     Faith-based and other community-based organizations.
    To address this factor, an applicant must provide an outline in the 
application and have on file written commitment letters, memoranda of 
understandings and/or agreements that show the extent and firm 
commitment of all proposed leveraged resources (including any 
commitment of resources from the applicant's own institution) that 
address the following information for each leveraged resource/fund:
    (1) The name of the organization and the executive officer 
authorizing the funds/goods and/or services (Only applicable to the 
narrative section);
    (2) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and its use is not 
shown, the funding will not be counted);

[[Page 11763]]

    (3) A specific description of how each contribution is to be used 
toward the proposed activities;
    (4) The date the contribution will be made available and a 
statement that describes the duration of the contribution;
    (5) Any terms or conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (6) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services (Only applicable to 
the written documentation). Please remember that only items eligible 
for funding under this program can be counted.
    Commitment letters, memoranda of understandings and/or agreements 
are not required at the time of application submission but you must 
have them on file. Applicants selected for award will be required to 
submit the signed commitment letters, memoranda of understandings and/
or agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). Letters, memoranda of understanding, or agreements must be 
submitted on the provider's letterhead and should be addressed to 
Sherone Ivey, Acting Associate Deputy Assistant Secretary for 
University Partnerships. The date of the letter, memorandum of 
understanding, or agreement from the CEO of the provider organization 
must be dated no earlier than nine months prior to this published NOFA. 
OUP will provide specific instructions on how these documents must be 
submitted when contact is made with the applicant. HUD will only 
request and consider the resources/organizations that are listed in the 
outline submitted in the application. If OUP does not receive those 
documents in the required format and allotted timeframe, an applicant 
will not receive points under this factor and the application will be 
rated and ranked to address this point change.
    In scoring this factor, HUD will award nine (9) points to an 
applicant that provides properly documented leveraging resources as 
listed in their application that are 15 percent or more of the amount 
requested under this program; six (6) points to applicants that provide 
properly documented leveraging resources as listed that are 10 to 14 
percent of the amount requested under this program; three (3) points to 
applicants that provide properly documented leveraging resources as 
listed that are 5 to 9 percent of the amount requested under this 
program; and zero (0) points to applicants that provide properly 
documented leveraging resources as listed that are less than 5 percent 
of the amount requested or resources are not properly documented.
5. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points)
    This factor reflects HUD's goal to embrace high standards of 
management and accountability. It measures the applicant's commitment 
to assess their performance to achieve the program's proposed 
objectives and goals. Applicants are required to develop an effective, 
quantifiable, outcome oriented evaluation plan for measuring 
performance and determining that objectives and goals have been 
achieved. The Logic Model is a summary of the narrative statements 
presented in Factors 1-4. Therefore, the information submitted on the 
logic model should be consistent with the information contained in the 
narrative statements.
    ``Outcomes'' are benefits accruing to institutions and/or 
communities during or after participation in the HSIAC program. 
Applicants must clearly identify the outcomes to be measured and 
achieved. Examples of outcomes include increased employment 
opportunities in the target community by a certain percentage, or 
enhanced family stability through the creation of affordable housing 
opportunities.
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new affordable housing units, the number of 
homes that have been renovated, and the number of community facilities 
that have been constructed or rehabilitated. Outputs should produce 
outcomes for the program. At a minimum an applicant must address the 
following activities in the evaluation plan:
    a. Measurable outputs to be accomplished, e.g., the number of 
persons to be trained and employed; houses to be built (pursuant to 24 
CFR 570.207) or rehabilitated; minority-owned businesses to be started;
    b. Measurable outcomes the grant will have on the community in 
general and the target area or population; and
    c. The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the grant performance period.
    The information must be place on a HUD-96010, Program Outcome Logic 
Model form. HUD has developed a new approach to completing this form. 
Please carefully read the General Section for instructions, training is 
available. (Form HUD-96010 will be excluded from the page count.) A 
narrative is not required. However, if a narrative is provided, those 
pages will be included in the page count.

B. Review and Selection Process

1. Application Selection Process
    Two types of reviews will be conducted:
    a. A threshold review to determine an applicant's basic 
eligibility; and
    b. A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Rating Factors'' 
listed in Section V, A.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.
2. Rating Panels
    To review and rate applications, HUD may establish panels, which 
may include experts or consultants not currently employed by HUD to 
obtain certain expertise.
3. Ranking
    HUD will fund applications in rank order, until all available 
program funds are awarded. In order to be funded, an applicant must 
receive a minimum score of 75 points out of a possible 102 points, 
which includes up to two bonus points that may be awarded for 
activities conducted in the RC/EZ/EC-II communities, as described in 
the General Section. If two or more applications have the same number 
of points, the application with the most points for Factor 3 shall be 
selected. If there is still a tie, the application with the most points 
for Factor 1 shall be selected. If there is still a tie, the 
application with the most points for Factors 2, 4 and then 5 shall be 
selected, in that order, until the tie is broken. HUD reserves the 
right to make selections out of rank order to provide for geographic 
distribution of grantees. HUD also reserves the right to reduce the 
amount of funding requested in order to fund as many highly ranked 
applications as possible. Additionally, if funds remain after funding 
the highest ranked applications, HUD may fund part of the next highest-
ranking application. If an applicant turns down an award offer, HUD 
will make an award to the next highest-ranking application. If funds 
remain after all selections have been made, the remaining funds will be 
carried over to the next funding cycle's competition.

[[Page 11764]]

4. Correction to Deficient Applications
    See the General Section.

C. Anticipated Announcement and Award Dates

    Announcements of awards are anticipated on or before September 30, 
2006.

VI. Award Administration Information

A. Award Notice

    After all selections have been made, HUD will notify all winning 
applicants in writing. HUD may require winning applicants to 
participate in additional negotiations before receiving an official 
award. For further discussion on this matter, please refer to the 
General Section.

B. Administrative and National Policy Requirements

    Refer to Section VI.B in the General Section.
    1. Debriefing. The General Section provides the procedures for 
requesting a debriefing. All requests for debriefings must be made in 
writing and submitted within thirty (30) calendar days of receipt of 
written notification to: Madlyn Wohlman-Rodriguez, Office of University 
Partnerships, Robert C. Weaver Federal Building 451 Seventh Street, SW, 
Room 8130 Washington, DC 20410-6000. Applicants may also write to Ms. 
Wohlman-Rodriguez via e-mail at [email protected].
    2. Administrative. Grants awarded under this NOFA will be governed 
by the provisions of 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations), A-21 (Cost Principles for Educational Institutions) and 
A-133 (Audits of States, Local Governments, and Non-Profit 
Organizations). Applicants can access the OMB circulars at the White 
House Web site at www.whitehouse.gov/omb/circulars/index.html.
    3. OMB Circulars and Governmentwide Regulations Applicable to 
Financial Assistance Programs. The General Section provides further 
discussion.
    4. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors Labor Relations on 
Federal and Federally Funded Construction Projects. See the General 
Section for further discussion.
    5. Procurement of Recovered Materials. The General Section provides 
further information.
    6. Executive Order 13166, Improving Access to Services For Persons 
With Limited English Proficiency (LEP). See the General Section for 
further discussion.
    7. Code of Conduct. See the General Section for further discussion.

C. Reporting

    All grant recipients under this NOFA are required to submit semi-
annual progress reports. The progress reports shall consist of two 
components, a narrative that must reflect the activities undertaken 
during the reporting period and a financial report that reflects costs 
incurred by budget line items, as well as a cumulative summary of costs 
incurred during the reporting period.
    For each reporting period, as part of the required report to HUD, 
grant recipients must include a completed Logic Model (HUD-96010), 
which identifies output and outcome achievements.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment (ROI) statement. HUD will be 
publishing a separate notice on the ROI concept.

VII. Agency Contacts

    Applicants may contact Madlyn Wohlman-Rodriguez at (202) 708-3061, 
extension 5939 or Susan Brunson, at (202) 708-3061, extension 3852. 
Persons with speech or hearing impairments may call the Federal 
Information Relay Service (TTY) at (800) 877-8339. Except for the 
``800'' number, these numbers are not toll-free. Applicants may also 
reach Ms. Rodriguez via email at [email protected], 
and/or Ms. Brunson at [email protected].

VIII. Other Information

Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2528-0198. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 59 hours per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application semi-annual and final reports. 
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.

Appendix A--Application Checklist--HSIAC

    This checklist identifies application submission requirements. 
Applicants are requested to use this checklist when preparing an 
application to ensure submission of all required elements. Applicants 
submitting an electronic application do not have to submit the 
checklist. Applicants that receive a waiver of the electronic 
application submission requirement must include a copy of the checklist 
in their application.
    Check off to ensure these items have been included in the 
application:

----SF-424 ``Application For Federal Assistance''
----Application Checklist (Applicants that submit paper applications 
must include the checklist in their applications)
----Abstract (must include no more than a two-page summary of the 
proposed project)
    Indicate the page number where each of the Factors is located:
    Narrative Statement Addressing the Rating Factors.
    The narrative section of an application must not exceed 50 pages in 
length (excluding forms, budget narrative and abstract). This 
information must be submitted on 8\1/2\ by 11-inch paper, double-spaced 
on one side of the paper, with one-inch margins (from the top, bottom, 
left, and right sides of the documents) and printed in standard Times 
New-Roman 12-point font.

----Factor I
----Factor II
----Factor III
----Factor IV
----Factor V
----HUD-96010 ``Logic Model''
    Check off to ensure these items have been included in the 
application:
----Appendix

----Budget
----HUD 424-CB'' Grant Application Detailed Budget''
----Budget Narrative (No form provided, but must be submitted for the 
total three-year grant period.

Appendix B (All Required Forms)

    The following forms are required for submission. All required forms 
are contained in the electronic application package.

----Application for Federal Assistance (SF-424);
----Survey on Ensuring Equal Opportunity for Applicants (SF-424

[[Page 11765]]

Supplement); Disclosure of Lobbying Activities (SF-LLL), if applicable;
----Grant Application Detailed Budget (HUD-424-CB);
----America's Affordable Communities Initiative (HUD-27300), if 
applicable;
----Applicant/Recipient Disclosure/Update Report (HUD-2880);
----Certification of Consistency with RC/EZ/EC-II Strategic Plan (HUD-
2990), if applicable;
----Certification of Consistency with the Consolidated Plan (HUD-2991), 
if applicable;
----Acknowledgement of Applicant Receipt (Only applicants who submit 
paper applications (HUD-2993);
----You Are Our Client Grant Applicant Survey (HUD-2994-A);
----Facsimile Transmittal (HUD-96011), to be used as the cover page to 
transmit third party documents via facsimile, if applicable (See 
General Section); and
----Logic Model (HUD-96010)

BILLING CODE 4210-01-P

[[Page 11766]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.008


[[Page 11767]]



Alaska Native/Native Hawaiian Institutions Assisting Communities (AN/
NHIAC) Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Policy Development and Research, Office of 
University Partnerships.
    B. Funding Opportunity Title: Alaska Native/Native Hawaiian 
Institutions Assisting Communities (AN/NHIAC) Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Numbers: The Federal Register Number is FR-
5030-N-20. The OMB Approval Number is 2528-0206.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: The CFDA 
Number for this program is 14.515.
    F. Dates: The application deadline date is May 19, 2006. Please be 
sure to read the General Section for electronic application submission 
and receipt requirements.
    G. Additional Overview Content Information.
    1. Purpose of the Program: To assist Alaska Native/Native Hawaiian 
Institutions (AN/NHI) of higher education expand their role and 
effectiveness in addressing community development needs in their 
localities, including neighborhood revitalization, housing, and 
economic development, principally for persons of low- and moderate-
income, consistent with the purposes of Title I of the Housing and 
Community Development Act of 1974, as amended.
    2. Award Information: In Fiscal Year (FY) 2006, approximately $2.97 
million has been made available for this program by the Department of 
Housing and Urban Development Appropriations Act, 2006 (Pub. L. 109-
115; approved Nov. 30, 2005) and an additional $238,000 in carryover 
funds. An applicant can request up to $800,000 for a three-year (36 
months) grant performance period.
    3. Eligible Applicant: Nonprofit Alaska Native and Native Hawaiian 
Institutions of Higher Education that meet the definitions of Alaska 
Native and Native Hawaiian Institutions of Higher Education established 
in Title III, Part A, Section 317 of the Higher Education Act of 1965, 
as amended by the Higher Education Amendments of 1998 (Pub. L. 105-244; 
enacted October 7, 1998). Institutions are not required to be on the 
list of eligible AN/NHIs prepared by the U.S. Department of Education. 
However, an institution that is not on the list is required to provide 
a statement in the application that the institution meets the U.S. 
Department of Education's statutory definition of an AN/NHI 
institution. In order to meet the definition of an Alaska Native 
Institution, at least 20 percent of the undergraduate headcount 
enrollment must be Alaska Native students. If an applicant is a Native 
Hawaiian institution, at least 10 percent of the undergraduate 
headcount enrollment must be Native Hawaiian students in order to meet 
this definition. In addition, all applicants must be fully accredited 
by a national or regional accrediting agency recognized by the U.S. 
Department of Education. If an applicant is one of several campuses of 
the same institution, the applicant may apply separately from the other 
campuses as long as the campus has a separate administrative structure 
and budget and meets the enrollment test outlined above.

Full Text of Announcement

I. Funding Opportunity Description

    The purpose of the Alaska Native/Native Hawaiian Institutions 
Assisting Communities (AN/NHIAC) Program is to assist Alaska Native/
Native Hawaiian Institutions (AN/NHI) of higher education expand their 
role and effectiveness in addressing community development needs in 
their localities, including neighborhood revitalization, housing, and 
economic development, principally for persons of low- and moderate-
income, consistent with the purposes of Title I of the Housing and 
Community Development Act of 1974, as amended.

A. Authority

    HUD's authority for making funding available under this NOFA is the 
Department of Housing and Urban Development Appropriations Act, 2006 
(Pub. L. 109-115; approved Nov. 30, 2005). This program is being 
implemented through this NOFA and the policies governing its operation 
are contained herein.

B. Modifications

    Listed below are major modifications from the Fiscal Year (FY) 2005 
program-funding announcement:
    1. Commitment letters, memoranda of understandings and/or 
agreements are not required at the time of application submission but 
must be on file. Applicants selected for award will be required to 
submit the signed commitment letters, memoranda of understandings and/
or agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). OUP will provide specific instructions on how these documents 
must be submitted at that time. HUD will only request and consider the 
resources/organizations outlined in the application. If OUP does not 
receive those documents in the required format and allotted timeframe, 
an applicant will not receive points under this factor and the 
application will be rated and ranked to address this point change.
    In scoring this factor, HUD will rate an applicant that provides 
leveraging resources that are 15 percent or more of the amount 
requested under this program and that are properly documented, as 
listed below, will be awarded nine (9) points; applicants that provide 
leveraging resources that are 10-14 percent of the amount requested 
under this program and that are properly documented, as listed below, 
will be awarded six (6) points; applicants that provide leveraging 
resources that are 5-9 percent of the amount requested under this 
program and that are properly documented, as listed below, will be 
awarded three (3) points; applicants that provide leveraging resources 
that are less than 5 percent of the amount requested or resources are 
not properly documented will receive zero points.
    2. All applicants submitting electronic applications must attach 
their narrative responses to Rating Factors 1-5 as one attachment. 
PLEASE DO NOT ATTACH YOUR RESPONSE TO EACH FACTOR SEPARATELY.

II. Award Information

    In Fiscal Year (FY) 2006, approximately $2.97 million is made 
available for this program and an additional $238,000 in carryover 
funds. HUD will award grants under this program to Alaska Native 
Institutions (ANI) and Native Hawaiian Institutions (NHI). An applicant 
can request up to $800,000 for a three-year (36 months) grant 
performance period.

III. Eligibility Information

A. Eligible Applicants

    Nonprofit Alaska Native and Native Hawaiian Institutions of Higher 
Education that meet the definitions of Alaska Native and Native 
Hawaiian Institutions of Higher Education established in Title III, 
Part A, Section 317 of the Higher Education Act of 1965, as amended by 
the Higher Education Amendments of 1998 (Pub. L. 105-244; enacted 
October 7, 1998). Institutions are not required to be on the list of 
eligible AN/NHIs prepared by the U.S. Department of Education. However,

[[Page 11768]]

an institution that is not on the list is required to provide a 
statement in the application that the institution meets the U.S. 
Department of Education's statutory definition of an AN/NHI 
institution. In order to meet the definition of an Alaska Native 
Institution, at least 20 percent of the undergraduate headcount 
enrollment must be Alaska Native students. If an applicant is a Native 
Hawaiian institution, at least 10 percent of the undergraduate 
headcount enrollment must be Native Hawaiian students in order to meet 
this definition. In addition, all applicants must be fully accredited 
by a national or regional accrediting agency recognized by the U.S. 
Department of Education. If an applicant is one of several campuses of 
the same institution, the applicant may apply separately from the other 
campuses as long as the campus has a separate administrative structure 
and budget and meets the enrollment test outlined above.

B. Cost Sharing or Matching

    None required.

C. Other

1. Eligible Activities
    Eligible activities are listed in 24 CFR Part 570, subpart C, 
particularly Sec.  570.201 through 570.206. Information regarding these 
activities can be found at: www.hudclips.org (click on the Code of 
Federal Regulations for detailed information).
    Eligible activities include, but are not limited to:
    a. Acquisition of real property;
    b. Clearance and demolition;
    c. Rehabilitation of residential structures and compliance with the 
accessibility requirements contained in Section 504 of the 
Rehabilitation Act of 1973;
    d. Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities and improvements, such as water and 
sewer facilities and streets; including lead-based paint hazard 
evaluation and reduction and compliance with the accessibility 
requirements contained in Section 504 of the Rehabilitation Act of 1973 
and Americans with Disabilities Act of 1990;
    e. Direct homeownership assistance to low- and moderate-income 
persons, as provided in section 105(a) (25) of the Housing and 
Community Development Act of 1974;
    f. Special economic development activities described at 24 CFR 
570.203 and assistance to facilitate economic development by providing 
technical or financial assistance for the establishment, stabilization, 
and expansion of microenterprises, including minority enterprises;
    g. Assistance to community-based development organizations (CBDO) 
to carry out neighborhood revitalization, community economic 
development, or energy conservation projects, in accordance with 24 CFR 
570.204. This could include activities in support of a HUD-approved 
local entitlement grantee, CDBG Neighborhood Revitalization Strategy 
(NRS) or HUD-approved State CDBG Community Revitalization Strategy 
(CRS);
    h. Public service activities such as general support activities 
that can help to stabilize a neighborhood and contribute to sustainable 
redevelopment of the area, including but not limited to such activities 
as those concerned with employment, crime prevention, child care, 
health care services, drug abuse, education, housing counseling, energy 
conservation, homebuyer down payment assistance, establish and maintain 
Neighborhood Network centers in federally assisted or insured housing, 
job training and placement and recreational needs;
    i. Fair housing services designed to further the civil rights 
objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all 
persons, without regard to race, color, religion, sex, national origin, 
familial status, and/or disability aware of the range of housing 
opportunities available to them;
    j. Up to 20 percent of the grant may be used for payments of 
reasonable grant administrative costs related to planning and execution 
of the project (e.g., preparation/submission of HUD reports, etc.). 
Detailed explanations of these costs are provided in the OMB circulars 
that can be accessed at the White House Web site at: 
www.whitehouse.gov/omb/circulars/index.html; and
    Each activity proposed for funding must meet the Community 
Development Block Grant (CDBG) Program eligibility requirements and at 
least one national objective.
    The three national objectives of the Community Development Block 
Grant program are:
    (1) Benefit to low-or moderate-income persons;
    (2) Aid in the prevention or elimination of slums or blight; and
    (3) Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
of these objectives are provided at 24 CFR 570.208.
    The CDBG publication entitled ``Community Development Block Grant 
Program Guide to National Objectives and Eligible Activities for 
Entitlement Communities'' describes the CDBG regulations, and a copy 
can be obtained from HUD's NOFA Information Center at 800-HUD-8929 or 
800-HUD-2209 for the hearing- or speech-impaired.
2. Audit Requirements
    See the General Section.
3. Threshold Requirements Applicable to All Applicants
    All applicants must comply with the threshold requirements as 
defined in the General Section and the requirements listed below. 
Applications that do not meet these requirements will be considered 
ineligible for funding and will be disqualified.
    a. The applicant must meet the eligibility requirements as defined 
in Section III.A
    b. The applicant may request up to $800,000.
    c. Only one application can be submitted per campus. If multiple 
applications are submitted, all will be disqualified. However, 
different campuses of the same university system are eligible to apply 
as long as they have an administrative and budgeting structure 
independent of the other campuses in the system.
    d. Institutions that received grants in FY 2005 are not eligible to 
submit an application under this NOFA.
    e. Applicants must receive a minimum score of 75 points to be 
considered for funding.
    f. An applicant must have a DUNS number to receive HUD grant funds 
(See the General Section).
    g. Electronic applications must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on the application 
deadline date of May 19, 2006.
4. Program Requirements
    In addition to the program requirements listed in Section III.C of 
the General Section, applicants must meet the following program 
requirements:
    a. All funds awarded are for a three-year (36 months) grant 
performance period.
    b. Applicants must ensure that not less than 51 percent of the 
aggregated expenditures of a grant award are used

[[Page 11769]]

to benefit low- and moderate-income persons under the criteria 
specified in 24 CFR 570.208(a) or 570.208(d)(5) or (6).
    c. Site Control. Where grant funds will be used for acquisition, 
rehabilitation, or new construction, an applicant must demonstrate site 
control. Funds may be recaptured or deobligated from applicants that 
cannot demonstrate control of a suitable site within one year after the 
initial notification of award.
    d. Environmental Requirements. Selection for award does not 
constitute approval of any proposed sites. Following selection for 
award, HUD will perform an environmental review of properties proposed 
for assistance in accordance with 24 CFR part 50. The results of the 
environmental review may require that proposed activities be modified 
or proposed sites be rejected. Applicants are particularly cautioned 
not to undertake or commit funds for acquisition or development of 
proposed properties prior to HUD approval of specific properties or 
areas. An application constitutes an assurance that the institution 
will assist HUD to comply with part 50; will supply HUD with all 
available and relevant information to perform an environmental review 
for each proposed property; will carry out mitigating measures required 
by HUD or select alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair, or construct property, 
and not commit or expend HUD or local funds for these program 
activities with respect to any eligible property until HUD's written 
approval of the property is received. In supplying HUD with 
environmental information, applicants should use the same guidance as 
provided in the HUD Notice CPD-05-07 entitled, ``Field Environmental 
Review Processing for Rural Housing and Economic Development (RHED) 
grants'' issued August 30, 2005. The General Section provides further 
discussion of the environmental requirements. Further information and 
assistance on HUD's environmental requirements is available at: http://hudstage.hud.gov/utilities/intercept.cfm?/offices/cpd/lawsregs/notices/2005/05-07.pdf.
    e. Labor Standards. Institutions and their subgrantees, 
contractors, and subcontractors must comply with the labor standards 
(Davis-Bacon) requirements referenced in 24 CFR 570.603.
    f. Economic Opportunities for Low- and Very-Low Income Persons 
(Section 3). The provisions of Section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) apply to this NOFA and 
requires that to the greatest extent feasible opportunities for 
training and employment be given to lower-income residents of the 
project and contracts for work in connection with the project be 
awarded in substantial part to persons residing in the area of the 
project. Regulations are located at 24 CFR Part 135.

IV. Application and Submission Information.

A. Address To Request Application Package

    Applicants may download the instructions to the application found 
on the Grants.gov Web site at http://www.Grants.gov./Apply. If you have 
difficulty accessing the information you may call the Grants.gov 
Support Desk toll free 800-518-GRANTS or e-mail your questions to 
Grants.gov">Support@Grants.gov. See the General Section for information regarding 
the registration process or ask for registration information from the 
Grants.gov Support Desk.

B. Content and Form of Application Submission

1. Forms
    The following forms are required for submission. Copies of these 
forms are available on line at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    a. Application for Federal Assistance (SF-424);
    b. Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
    c. Grant Application Detailed Budget (HUD-424-CB);
    d. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    e. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    f. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    g. Program Logic Model (HUD-96010);
    h. Acknowledgement of Applicant Receipt (HUD-2993). Complete this 
form only if you have received a waiver to the electronic application 
submission requirement. Applicants submitting electronically are not 
required to include this form;
    i. Facsimile Transmittal Cover Page (HUD-96011). This form must be 
used as the cover page to transmit third-party documents and other 
information. Applicants are advised to download the application 
package, complete the SF-424 first and it will pre-populate the 
Transmittal Cover page. The Transmittal Cover page will contain a 
unique identifier embedded in the page that will help HUD associate 
your faxed materials to your application. Please download the cover 
page and then make multiple copies to provide to any of the entities 
responsible for submitting faxed materials to HUD on your behalf. 
Please do not use your own fax sheet. HUD will not read any faxes that 
are sent without the HUD-96011 fax transmittal cover page; and
    j. You Are Our Client Grant Applicant Survey (HUD-2994-A). 
Applicants are not required to complete this form.
2. Certifications and Assurances
    Please read the General Section for detailed information on all 
Certifications and Assurances. All applications submitted through 
Grants.gov constitute an acknowledgement and agreement to all required 
certifications and assurances. Please include in your application each 
item listed below. Applicants submitting paper copy applications should 
submit the application in the following order:
    a. SF-424, Application for Federal Assistance. Please remember the 
following:
    (1) The full grant amount requested from HUD (entire three years) 
should be entered, not the amount for just one year;
    (2) Include the name, title, address, telephone number, facsimile 
number, and e-mail address of the designated contact, this is the 
person who will receive all correspondence; therefore, please ensure 
the accuracy of the information;
    (3) The Employer Identification/Tax ID number;
    (4) The DUNS Number;
    (5) The Catalog of Federal Domestic Assistance Number for this 
program is 14.515;
    (6) The project's proposed start date and completion date. For the 
purpose of this application, the program start date should be December 
1, 2006; and
    (7) The signature of the Authorized Organization Representative 
(AOR) who, by virtue of submitting an application via Grants.gov, has 
been authenticated by the credential provider to submit applications on 
behalf of the Institution and approved by the eBusiness Point of 
Contact to submit an application via Grants.gov. The AOR must be able 
to make a legally binding agreement with HUD. For details on the 
Grants.gov registration process see HUD's Notice on Early Registration 
published in the Federal Register on December 9, 2005 (70 FR 73331).
    b. Application Checklist. Applicants should use the checklist to 
ensure that they have all the required components of their application. 
Applicants submitting an electronic application

[[Page 11770]]

should not submit the checklist. Applicants that receive a waiver of 
the electronic application submission requirement must include a copy 
of the checklist in their application submission. The checklist can be 
located in Appendix A.
    c. Abstract. Applicants must include no more than a two-page 
summary of the proposed project. Please include the following:
    (1) A clear description of the proposed project activities, where 
they will take place (be located), the target population that will be 
assisted, and the impact this project is expected to have on the 
community and institution;
    (2) A statement that the institution is an eligible institution 
because it is a two-or four-year fully accredited institution, the name 
of the accrediting agency and an assurance that the accrediting agency 
is recognized by the U.S. Department of Education;
    (3) A statement that the institution meets the definition of an 
Alaska Native Institution, or a Native Hawaiian Institution, as 
appropriate;
    (4) The designated contact person, including phone number, 
facsimile number, and e-mail address. (This is the person who will 
receive all correspondence; therefore, please ensure the accuracy of 
the information);
    (5) The project director, if different from the designated contact 
person, for the project, including phone number, facsimile number, and 
e-mail address.
    d. Narrative statement addressing the Rating Factors. HUD will use 
the narrative response to the ``Rating Factors'' to evaluate, rate, and 
rank applications. The narrative statement is the main source of 
information. Applicants are advised to review each factor carefully for 
program specific requirements. The response to each factor should be 
concise and contain only information relevant to the factor, yet 
detailed enough to address each factor fully. Please do not repeat 
material in response to the five factors; instead, focus on how well 
the proposal responds to each of the factors. Where there are 
subfactors, each subfactor must be presented separately, with the short 
title of the subfactor presented. Make sure to address each subfactor 
and provide sufficient information about every element of the 
subfactor. The narrative section of an application must not exceed 50 
pages in length (excluding forms, budget narrative, assurances, and 
abstract) and must be submitted on 8\1/2\ by 11-inch paper, double-
spaced on one side of the paper, with one-inch margins (from the top, 
bottom and left to right side of the document) and printed in standard 
Times New Roman 12-point font. Each page of the narrative must include 
the applicant's name and should be numbered. Note that although 
submitting pages in excess of the page limit will not disqualify an 
applicant, HUD will not consider the information on any excess pages. 
This exclusion may result in a lower score or failure to meet a 
threshold requirement. All applicants submitting electronic 
applications must attach their narrative responses to Rating Factors 1-
5 as one attachment. PLEASE DO NOT ATTACH YOUR RESPONSE TO EACH FACTOR 
SEPARATELY.
    e. Budget. The budget submission must include the following:
    (1) HUD-424-CB, ``Grant Application Detailed Budget.'' This form 
shows the total budget by year and by line item for the program 
activities to be carried out with the proposed HUD grant. Each year of 
the program should be presented separately. Applicants must also submit 
this form to reflect the total cost for the entire grant performance 
period (Grand Total).
    Make sure that the amounts shown on the SF-424, the HUD-424-CB and 
on all other required program forms are consistent and the budget 
totals are correct. Remember to check addition in totaling the 
categories on all forms so that all items are included in the total. If 
there is any inconsistency between any of the required budget forms, 
the HUD-424-CB will be used. All budget forms must be fully completed. 
If an application is selected for award, the applicant may be required 
to provide greater specificity to the budget during grant agreement 
negotiations.
    (2) Budget Narrative. A narrative must be submitted that explains 
how the applicant arrived at the cost estimates for any line item over 
$5,000 cumulative. For example, an applicant proposes to construct a 
building using HUD funding totaling $200,000. The following cost 
estimate reflects this total. Foundation cost $75,000, electrical work 
$40,000, plumbing work $40,000, finishing work $35,000, and landscaping 
$10,000. The proposed cost estimates should be reasonable for the work 
to be performed and consistent with rates established for the level of 
expertise required to perform the work proposed in the geographical 
area. When necessary, quotes from various vendors or historical data 
should be used (please make sure they are kept on file and are 
available for review by HUD at any time). When an applicant proposes to 
use a consultant, the applicant must indicate whether there is a formal 
written agreement. For each consultant, please provide the name, if 
known, hourly or daily rate, and the estimated time on the project. 
Applicants must use cost estimates based on historical data from the 
institution and/or from a qualified firm (e.g., Architectural or 
Engineering firm), vendor, and/or qualified individual (e.g., 
independent architect or contractor) other than the institution for 
projects that involve rehabilitation of residential, commercial and/or 
industrial structures, and/or acquisition, construction, or 
installation of public facilities, and improvements. Such an entity 
must be involved in the business of housing rehabilitation, 
construction, and/or management. Equipment and contracts cannot be 
presented as a total estimated cost. For equipment, applicants must 
provide a list by type and cost for each item. Applicants using 
contracts must provide an individual description and cost estimate for 
each contract. Construction costs must be broken down to indicate how 
funds will be utilized (e.g., demolition, foundation, exterior walls, 
roofing, electrical work, plumbing, finishing work, etc.)
    (3) Indirect costs. Indirect costs, if applicable, are allowable 
based on an established approved indirect cost rate. Applicants must 
have on file, and submit to HUD if selected for award, a copy of their 
indirect cost rate agreement. Applicants who are selected for funding 
that do not have an approved indirect cost rate agreement, established 
by the cognizant federal agency, will be required to establish a rate. 
In such cases, HUD will issue an award with a provisional rate and 
assist applicants with the process of establishing a final rate.
    f. Appendix. Applicants receiving a waiver of the electronic 
submission requirements and submitting a paper copy of the application 
must place all required forms in this section. An applicant SHOULD NOT 
submit resumes, or other back-up materials. If this information is 
included, it will not be considered during the review process.

C. Submission Dates and Times

    A complete application package must be received and validated 
electronically by the Grants.gov no later than 11:59:59 p.m. eastern 
time on or before the application deadline date of May 19, 2006. In an 
effort to address any issues with transmission of your applications, 
applicants are strongly encouraged to submit their applications prior 
to the application deadline. This will allow an applicant enough time 
to make the necessary adjustments to meet the submission. Please see 
the General Section for further instructions.

[[Page 11771]]

Electronic faxes using the Facsimile Transmittal cover sheet (Form HUD-
96011) contained in the electronic application must be received no 
later than 11:59:59 p.m. eastern time on the application deadline date.

D. Intergovernmental Review

    This program is excluded from an Intergovernmental Review.

E. Funding Restrictions

    Ineligible CDBG Activities are listed at 24 CFR 570.207. Ineligible 
activities include but are not limited to:
    1. New construction of public housing;
    2. General government expenses;
    3. Political activities;
    4. Planning and administrative activities that would result in a 
grantee exceeding the 20 percent cost limitation on such activities;
    5. Development and/or expansion of an institution's existing 
curriculum when it is primarily to enhance the institution rather than 
to achieve the specific goals/objectives of the proposed project; and
    6. Construction, renovation, expansion of an institution's own 
facilities.

F. Other Submission Requirements

1. Application Submission and Receipt Procedure
    Please read the General Section carefully and completely for the 
submission and receipt procedures for all applications because failure 
to comply may disqualify your application.
2. Waiver of Electronic Submission Requirements
    Please refer to the General Section for further discussion. Paper 
applications will not be accepted from applicants that have not been 
granted a waiver. If an applicant is granted a waiver, the Office of 
University Partnerships will provide instructions for submission. 
Applicants that submit a paper application must be received by or 
before on the application deadline date.

V. Application Review Information

A. Criteria

1. Rating Factor 1: Capacity of the Applicant and Relevant Experience 
(25 Points)
    This factor addresses the extent to which the applicant has the 
resources necessary to successfully implement the proposed project in a 
timely manner.
    a. Knowledge and Experience. For First Time Applicants (25 Points) 
For Previously Funded Applicants (13 Points). In rating this subfactor, 
HUD will consider the extent to which the applicant clearly addresses 
the following:
    (1) Describe the knowledge and experience of the proposed project 
director and staff, including the day-to-day program manager/
coordinator, consultants (including technical assistance providers), 
and contractors in planning and managing the type of project for which 
funding is being requested; and
    (2) Clearly identify the following: key project team members, 
titles (e.g., project manager/coordinator, etc.), respective roles for 
the project staff, and a brief description of their relevant 
experience.
    If key personnel have not been hired, applicants must identify the 
position title, provide a description of duties and responsibilities, 
and describe the qualifications to be considered in the selection of 
personnel, including subcontractors and consultants.
    Experience will be judged in terms of recent and relevant knowledge 
and skills of the staff to undertake eligible program activities. HUD 
will consider experience within the last five (5) years to be recent 
and experience pertaining to similar activities to be relevant.
    b. Past Performance (12 Points) For Previously Funded Applicants 
Only. This subfactor will evaluate how well an applicant has performed 
successfully under HUD/AN/NHIAC grants. Applicants must demonstrate 
this by addressing the following information for all previously 
completed and open HUD/AN/NHIAC grants:
    (1) A list of all HUD/AN/NHIAC grants received, including the 
dollar amount awarded and the amount expended and obligated as of the 
date of this application;
    (2) A description of the achievement of specific tasks, measurable 
objectives, and specific outcomes consistent with the approved project 
management plan;
    (3) A list detailing the date the project(s) was completed, was it 
completed in the original three-year grant performance period; if not 
completed, why (including when it was or will be completed);
    (4) A comparison of the amount of proposed leveraged funds and/or 
resources to the amount that was actually leveraged; and
    (5) A detailed description of compliance with all reporting 
requirements, including timeliness of submission, whether reports were 
complete and addressed all information (both narrative and financial) 
as required by the grant agreement.
    HUD will also review an applicant's past performance in managing 
funds, including, but not limited to: The ability to account for 
funding appropriately; timely use of funds received from HUD; meeting 
performance targets for completion of activities. In evaluating past 
performance, HUD reserves the right to deduct up to five (5) points 
from this rating score as a result of the information obtained from 
HUD's records (i.e., progress and financial reports, monitoring 
reports, Logic Model submissions, and amendments).
2. Rating Factor 2: Need/Extent of the Problem (10 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program activities and an indication of the 
importance of meeting the need(s) in the target area. The need(s) 
described must be relevant to the activities for which funds are being 
requested. In addressing this factor, applicants should provide, at a 
minimum, the following and must cite statistics and/or analyses 
contained in at least one or more current data sources that are sound 
and reliable.
    (1) Describe the need(s); and
    (2) Describe the importance of meeting the proposed needs.
    In rating this factor, HUD will consider only current data that is 
specific to the area where the proposed project activities will be 
carried out. Sources for localized data can be found at: www.ffiec.gov.
    HUD will consider data collected within the last five (5) years to 
be current. To the extent that the targeted community's Five (5) Year 
Consolidated Plan and Analysis of Impediments to Fair Housing Choice 
(AI) identify the level of the problem and the urgency in meeting the 
need, applicants should include references to these documents in the 
response to this factor.
    Other reliable data sources include, but are not limited to, Census 
reports, HUD Continuum of Care gap analysis and its E-MAP (http://www.hud.gov/emaps), law enforcement agency crime reports, Public 
Housing Agencies' Comprehensive Plans, community needs analyses such as 
provided by the United Way, the applicant's institution, and other 
sound, reliable and appropriate sources. Needs in terms of fulfilling 
court orders or consent decrees, settlements, conciliation agreements, 
and voluntary compliance agreements may also be addressed.
3. Rating Factor 3: Soundness of Approach (44 Points)
    This factor addresses the quality and effectiveness of the proposed 
work plan

[[Page 11772]]

and the commitment of the institution to sustain the proposed 
activities.
    a. (37 Points) Quality of the Work Plan. This subfactor will be 
evaluated on the extent to which an applicant provides a clear detailed 
description of the proposed project and anticipated accomplishments.
    (1) (32 Points) Specific Activities. The work plan must describe 
all proposed activities and major tasks required to successfully 
implement the proposed project. In addressing this subfactor applicants 
must provide a clear description of the proposed activities and address 
the following:
    (a) Describe each activity to successfully implement and complete 
the proposed project in measurable terms (e.g., the number of homes 
that will be renovated, the number of jobs created, etc.);
    (b) List and describe how each activity meets one of the following 
Community Development Block Grant (CDBG) Program national objectives:
     Benefit low- and moderate-income persons;
     Aid in the prevention or elimination of slums or blight; 
or
     Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
objectives are provided at 24 CFR 570.208;
    (c) Describe the major tasks required (in sequential order) to 
successfully implement and complete each project activity. Include the 
target completion dates for these tasks (in 6 month intervals, up to 36 
months);
    (d) Identify key staff, as described in Factor 1, who will be 
responsible and accountable for completing each task; and
    (e) Describe how the project director will work with partners and 
citizens to accomplish the proposed activities.
    (2) (5 Points) Describe clearly how each proposed activity will:
    (a) Expand the role of the institution in the community;
    (b) Address the needs identified in Factor 2;
    (c) Relate to and not duplicate other activities in the target 
area. Duplicative effort will be acceptable only if an applicant can 
demonstrate through documentation that there is a population in need 
that is not being served; and
    (d) Involve and empower citizens of the target area in the proposed 
project.
    b. (3 Points) Involvement of the faculty and students. The 
applicant must describe how it proposes to integrate the institution's 
students and faculty into the proposed project activities.
    c. (2 Points) HUD Policy Priorities. To earn points under this 
subfactor, HUD requires applicants to undertake specific activities 
that will assist the Department in implementing its policy priorities 
and that help the Department achieve its goals and objectives in FY 
2007, when the majority of grant recipients will be reporting 
programmatic results and achievements. In rating this subfactor, HUD 
will evaluate the extent to which a program will further and support 
HUD's priorities. The quality of the responses provided to one or more 
of HUD's priorities will determine the score an applicant can receive. 
Applicants must describe how each policy priority selected will be 
addressed. Applicants that just list a priority will receive no points.
    The total number of points an applicant can receive under this 
subfactor is two (2). Each policy priority addressed has a point value 
of one (1) point with the exception of the policy priority to remove 
regulatory barriers to affordable housing, which has a point value of 
up to two (2) points. To receive these two (2) points an applicant must 
indicate how this priority will be addressed and submit the completed 
questionnaire (HUD-27300) ``HUD's Initiative on Removal of Regulatory 
Barriers'' found in the General Section along with required 
documentation. It is up to the applicant to determine which of the 
policy priorities they elect to address to receive the available two 
(2) points.
    d. (2 Points) Economic Opportunities for Low- and Very-Low Income 
Persons (Provision of Section 3). This subfactor will be evaluated on 
the extent to which an applicant describes how it proposes to:
    (1) Provide opportunities to train and employ lower-income 
residents of the project area; and
    (2) Award substantial contracts to persons residing in the project 
area.
    Regulations regarding the provision of Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) can be located at 24 
CFR Part 135.
4. Rating Factor 4: Leveraging Resources (9 Points)
    This factor addresses the ability of the applicant to secure 
resources that can be combined with HUD's grant funds to achieve the 
program's purpose.
    HUD will consider the extent to which the applicant established 
partnerships with other entities to secure additional resources to 
increase the effectiveness of the proposed project activities. 
Resources may include funding or in-kind contributions, such as 
services or equipment, allocated for the purpose(s) of the project 
activities. Resources may be provided by governmental entities, public 
or private nonprofit organizations, for-profit private organizations, 
or other entities. Applicants may also establish partnerships with 
other program funding recipients to coordinate the use of resources in 
the target area. Overhead and other institutional costs (e.g., 
salaries, indirect costs, etc.) that the institution has waived may be 
counted. Examples of potential sources for outside assistance include:
     Federal, state, and local governments
     Public Housing Agencies
     Local or national nonprofit organizations
     Financial institutions and/or private businesses
     Foundations
     Faith-based and other community-based organizations.
    To address this factor, an applicant must provide an outline in the 
application and have on file written commitment letters, memoranda of 
understandings and/or agreements that show the extent and firm 
commitment of all proposed leveraged resources (including any 
commitment of resources from the applicant's own institution) that 
address the following information for each leveraged resource/fund:
    (1) The name of the organization and the executive officer 
authorizing the funds/goods and/or services (Only applicable to the 
narrative section)
    (2) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and its use is not 
shown, the funding will not be counted);
    (3) A specific description of how each contribution is to be used 
toward the proposed activities;
    (4) The date the contribution will be made available and a 
statement that describes the duration of the contribution;
    (5) Any terms or conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (6) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services. (Only applicable to 
the written documentation) Please remember that only items eligible for 
funding under this program can be counted.

[[Page 11773]]

    Commitment letters, memoranda of understandings and/or agreements 
are not required at the time of application submission but you must 
have them on file. Applicants selected for award will be required to 
submit the signed commitment letters, memoranda of understandings and/
or agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). Letters, memoranda of understanding, or agreements must be 
submitted on the provider's letterhead and should be addressed to 
Sherone Ivey, Acting Associate Deputy Assistant Secretary for 
University Partnerships. The date of the letter, memorandum of 
understanding, or agreement from the CEO of the provider organization 
must be dated no earlier than nine months prior to this published NOFA. 
OUP will provide specific instructions on how these documents must be 
submitted when contact is made with the applicant. HUD will only 
request and consider the resources/organizations that are listed in the 
outline submitted in the application. If OUP does not receive those 
documents in the required format and allotted timeframe, an applicant 
will not receive points under this factor and the application will be 
rated and ranked to address this point change.
    In scoring this factor, HUD will award nine (9) points to an 
applicant that provides properly documented leveraging resources as 
listed in their application that are 15 percent or more of the amount 
requested under this program; six (6) points to applicants that provide 
properly documented leveraging resources as listed that are 10-14 
percent of the amount requested under this program; three (3) points to 
applicants that provide properly documented leveraging resources as 
listed that are 5-9 percent of the amount requested under this program; 
and zero (0) points to applicants that provide properly documented 
leveraging resources as listed that are less than 5 percent of the 
amount requested or resources are not properly documented.

5. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points)

    This factor reflects HUD's goal to embrace high standards of 
management and accountability. It measures the applicant's commitment 
to assess their performance to achieve the program's proposed 
objectives and goals. Applicants are required to develop an effective, 
quantifiable, outcome oriented evaluation plan for measuring 
performance and determining that objectives and goals have been 
achieved. The Logic Model is a summary of the narrative statements 
presented in Factors 1-4. Therefore, the information submitted on the 
logic model should be consistent with the information contained in the 
narrative statements.
    ``Outcomes'' are benefits accruing to institutions of higher 
education and/or communities during or after participation in the AN/
NHIAC program. Applicants must clearly identify the outcomes to be 
measured and achieved. Examples of outcomes include increased community 
development in the target community by a certain percentage, increased 
employment opportunities in the target community by a certain 
percentage, increased incomes/wages or other assets for persons 
trained, and/or enhanced family stability through the creation of 
affordable housing opportunities.
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct products of the program's activities. Examples of 
outputs are the number of new affordable housing units, the number of 
homes that have been renovated, and the number of facilities that have 
been constructed or rehabilitated. Outputs should produce outcomes for 
the program. At a minimum, an applicant must address the following 
activities in the evaluation plan:
    a. Measurable outputs to be accomplished (e.g., the number of 
persons to be trained and employed; houses to be built pursuant to 24 
CFR 570.207 or rehabilitated; minority-owned businesses to be started);
    b. Measurable outcomes the grant will have on the community in 
general and the target area or population; and
    c. The impact the grant will have on assisting the university to 
obtain additional resources to continue this type of work at the end of 
the grant performance period.
    The information must be placed on a HUD-96010, Program Logic Model 
form. HUD has developed a new approach to completing this form. Please 
carefully read the General Section for instructions, training is 
available. (Form HUD-96010 will be excluded from the page count.) A 
narrative is not required. However, if a narrative is provided, those 
pages will be included in the page count.

B. Review and Selection Process

1. Application Selection Process
    Two types of reviews will be conducted:
    a. A threshold review to determine an applicant's basic 
eligibility; and
    b. A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Rating Factors'' 
listed in Section V.A.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.
2. Rating Panels
    To review and rate applications, HUD may establish panels, which 
may include experts or consultants not currently employed by HUD to 
obtain certain expertise.
3. Ranking
    HUD will fund applications in rank order, until all available 
program funds are awarded. In order to be funded, an applicant must 
receive a minimum score of 75 points out of a possible 100 points for 
Factors 1 through 5. The RC/EZ/EC-II bonus points described in the 
General Section do not apply to this NOFA. If two or more applications 
have the same number of points, the application with the most points 
for Factor 3 shall be selected. If there is still a tie, the 
application with the most points for Factor 1 shall be selected. If 
there is still a tie, the application with the most points for Factors 
2, 4 and then 5 shall be selected, in that order, until the tie is 
broken. HUD reserves the right to make selections out of rank order to 
provide for geographic distribution of grantees.
    HUD also reserves the right to reduce the amount of funding 
requested in order to fund as many highly ranked applications as 
possible. Additionally, if funds remain after funding the highest 
ranked applications, HUD may fund part of the next highest-ranking 
application. If an applicant turns down an award offer, HUD will make 
an award to the next highest-ranking application. If funds remain after 
all selections have been made, the remaining funds will be carried over 
to the next funding cycle's competition.
4. Correction to Deficient Applications
    See the General Section.

C. Anticipated Announcement and Award Dates

    Announcements of awards are anticipated on or before September 30, 
2006.

VI. Award Administration Information

A. Award Notices

    After all selections have been made, HUD will notify all winning 
applicants

[[Page 11774]]

in writing. HUD may require winning applicants to participate in 
additional negotiations before receiving an official award. For further 
discussion on this matter, please refer to the General Section. B. 
Administrative and National Policy Requirements
    Refer to Section VI.B. of the General Section.
    1. Debriefing. The General Section provides the procedures for 
requesting a debriefing. All requests for debriefings must be made in 
writing and submitted within thirty (30) calendar days of receipt of 
written notification to: Sherone Ivey, Office of University 
Partnerships, Robert C. Weaver Federal Building; 451 Seventh Street, 
SW., Room 8106; Washington, DC 20410. Applicants may also write to Ms. 
Ivey via e-mail at [email protected].
    2. Administrative. Grants awarded under this NOFA will be governed 
by the provisions of 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations), A-21 (Cost Principles for Educational Institutions) and 
A-133 (Audits of States, Local Governments, and Non-Profit 
Organizations). Applicants can access the OMB circulars at the White 
House Web site at: www.whitehouse.gov/omb/circulars/index.html.
    3. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs. The General Section provides further 
discussion.
    4. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors Labor Relations on 
Federal and Federally Funded Construction Projects. See the General 
Section for further discussion.
    5. Procurement of Recovered Materials. See Section the General 
Section for further discussion.
    6. Executive Order 13166, Improving Access to Services For Persons 
With Limited English Proficiency (LEP). See the General Section for 
further discussion.
    7. Code of Conduct. See the General Section for further discussion.

C. Reporting

    All grant recipients under this NOFA are required to submit 
quarterly progress reports. The progress reports shall consist of two 
components, a narrative that must reflect the activities undertaken 
during the reporting period and a financial report that reflects costs 
incurred by budget line item, as well as a cumulative summary of cost 
incurred during the reporting period.
    For each reporting period, as part of the required report to HUD, 
grant recipients must include a completed Logic Model form (HUD-96010), 
which identifies output and outcome achievements.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment (ROI) statement. HUD will be 
publishing a separate notice on the ROI concept.

VII. Agency Contacts

    Applicants may contact Sherone Ivey at (202) 708-3061, extension 
4200 or Susan Brunson at (202) 708-3061, extension 3852. Persons with 
speech or hearing impairments may call the Federal Information Relay 
Service TTY at (800) 877-8339. Except for the ``800'' number, these 
numbers are not toll-free. Applicants may also reach Ms. Ivey via e-
mail at [email protected], and/or Ms. Brunson at [email protected].

VIII. Other Information: Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2528-0206. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 59 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, and final reports. 
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.

Appendix A--Application Checklist--AN/NHIAC

    This checklist identifies application submission requirements. 
Applicants are requested to use this checklist when preparing an 
application to ensure submission of all required elements. Applicants 
submitting an electronic application do not have to submit the 
checklist. Applicants that receive a waiver of the electronic 
application submission requirement should include a copy of the 
checklist in their application.
    Check off to ensure these items have been included in the 
application:

----SF-424 ``Application For Federal Assistance''
----Application Checklist (Applicants that submit paper applications 
must include the checklist in their applications)
----Abstract (must include no more than a two-page summary of the 
proposed project)

    Indicate the page number where each of the Factors is located:
    Narrative Statement Addressing the Rating Factors.
    The narrative section of an application must not exceed 50 pages in 
length (excluding forms, budget narrative and abstract). This 
information must be submitted on 8\1/2\ by 11-inch paper, double-spaced 
on one side of the paper, with one-inch margins (from the top, bottom, 
left, and right sides of the documents) and printed in standard Times 
New-Roman 12-point font.

----Factor I
----Factor II
----Factor III
----Factor IV
----Factor V
----HUD-96010 ``Logic Model''

    Check off to ensure these items have been included in the 
application:
    Appendix

----Budget
----HUD 424-CB ``Grant Application Detailed Budget''
----Budget Narrative (No form provided, but must be submitted for the 
total three-year grant period.

Appendix B (All Required Forms)

    The following forms are required for submission. All required forms 
are contained in the electronic application package.

----Application for Federal Assistance (SF-424);
----Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
----Disclosure of Lobbying Activities (SF-LLL);
----Grant Application Detailed Budget (HUD-424-CB);
----America's Affordable Communities Initiative (HUD-27300), if 
applicable;
----Applicant/Recipient Disclosure/Update Report (HUD-2880);
----Acknowledgement of Applicant Receipt (Only applicants who submit 
paper applications (HUD-2993);
----Facsimile Transmittal (HUD-96011), if applicable;
----You Are Our Client Grant Applicant Survey (HUD-2994-A); and

[[Page 11775]]

----Logic Model (HUD-96010).

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[GRAPHIC] [TIFF OMITTED] TN08MR06.009


[[Page 11776]]



Tribal Colleges and Universities Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Policy Development and Research, Office of 
University Partnerships.
    B. Funding Opportunity Title: Tribal Colleges and Universities 
Program (TCUP).
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Numbers: The Federal Register Number is FR-
5030-N-24. The OMB Approval Number is 2528-0215.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: The CFDA 
Number for this program is 14.519.
    F. Dates: The application deadline date is May 22, 2006. Please be 
sure to read the General Section for electronic application submission 
and receipt requirements.
    G. Additional Overview Content Information:
    1. Purpose of the Program. To assist Tribal Colleges and 
Universities (TCU) to build, expand, renovate, and equip their own 
facilities, and to expand the role of the TCUs into the community 
through the provision of needed services such as health programs, job 
training, and economic development activities.
    2. Award Information: In Fiscal Year (FY) 2006, approximately $2.5 
million has been made available for this program by the Department of 
Housing and Urban Development Appropriations Act, 2006 (Pub. L. 109-
115; approved Nov. 30, 2005) and an additional $643,000 in carryover 
funds. An applicant can request up to $600,000 for a three-year (36 
months) grant performance period.
    3. Eligible Applicants: Tribal Colleges and Universities that meet 
the definition of a TCU established in Title III of the 1998 Amendments 
to the Higher Education Act of 1965 (Pub. L. 105-244, approved October 
7, 1998). Institutions must be fully accredited or provide a statement 
in the abstract of the application that states the institution is a 
candidate for accreditation by a regional institutional accrediting 
association recognized by the U.S. Department of Education.

Full Text of Announcement

I. Funding Opportunity Description

    The purpose of this program is to assist Tribal Colleges and 
Universities (TCU) to build, expand, renovate, and equip their own 
facilities, and to expand the role of the TCUs into the community 
through the provision of needed services such as health programs, job 
training, and economic development activities.

A. Authority

    HUD's authority for making funding available under this NOFA is the 
Department of Housing and Urban Development Appropriations Act, 2006 
(Pub. L. 109-115; approved Nov. 30, 2005). This program is being 
implemented through this NOFA and the policies governing its operation 
are contained herein.

B. Modifications

    Listed below are major modifications from the Fiscal Year (FY) 2005 
program-funding announcement.
    1. The provision of public services and program delivery activities 
are now eligible under this program. The purpose of the Tribal Colleges 
and Universities Program has been modified to include expanding the 
role of the TCUs into the community through the provision of needed 
services such as health programs, job training, and economic 
development.
    2. Commitment letters, memoranda of understandings and/or 
agreements are not required at the time of application submission but 
must be on file. Applicants selected for award will be required to 
submit the signed commitment letters, memoranda of understandings and/
or agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). OUP will provide specific instructions on how these documents 
must be submitted at that time. HUD will only request and consider the 
resources/organizations outlined in the application. If OUP does not 
receive those documents in the required format and allotted timeframe, 
an applicant will not receive points under this factor and the 
application will be rated and ranked to address this point change.
    In scoring this factor, HUD will rate an applicant that provides 
leveraging resources that are 10 percent or more of the amount 
requested under this program and that are properly documented, as 
listed below, will be awarded nine (9) points; applicants that provide 
leveraging resources that are 7-9 percent of the amount requested under 
this program and that are properly documented, as listed below, will be 
awarded six (6) points; applicants that provide leveraging resources 
that are 4-6 percent of the amount requested under this program and 
that are properly documented, as listed below, will be awarded three 
(3) points; applicants that provide leveraging resources that are less 
than 4 percent of the amount requested or resources are not properly 
documented will receive zero points.
    3. All applicants submitting electronic applications must attach 
their narrative responses to Rating Factors 1-5 as one attachment. 
PLEASE DO NOT ATTACH YOUR RESPONSE TO EACH FACTOR SEPARATELY.

II. Award Information

    In Fiscal Year (FY) 2006, approximately $2.5 million is made 
available for this program and an additional $643,000 in carryover 
funds. An applicant can request up to $600,000 for a three-year (36 
months) grant performance period.

III. Eligibility Information

A. Eligible Applicants

    Tribal Colleges and Universities that meet the definition of a TCU 
established in Title III of the 1998 Amendments to the Higher Education 
Act of 1965 (Pub. L. 105-244, enacted October 7, 1998). Institutions 
must be fully accredited, or provide a statement in their application 
that verifies the institution is a candidate for accreditation, by a 
regional institutional accrediting association recognized by the U.S. 
Department of Education.

B. Cost Sharing or Matching

    None Required.

C. Other

    1. Eligible Activities: Eligible activities include building, 
expanding, renovating, and equipping facilities owned by the 
institution (a long-term lease for five years or more in duration is 
considered an acceptable form of ownership under this program). 
Buildings for which TCUP funding is used that also serve the community 
are eligible; however, the facilities must be predominantly (at least 
51 percent of the time) for the use of the institution (e.g., students, 
faculty, and staff). In addition, public services and program delivery 
activities for the community such as health programs, job training and 
economic development are eligible activities. Examples of eligible 
activities include, but are not limited to:
    a. Building a new facility (e.g., classrooms, administrative 
offices, health and cultural centers, gymnasium, technology centers, 
etc.);
    b. Renovating an existing or acquired facility;
    c. Expanding an existing or acquired facility;

[[Page 11777]]

    d. Equipping university facilities (e.g., lab equipment, library 
books, furniture, etc.); or
    e. Property acquisition;
    f. Health screening;
    g. Homeownership counseling/training;
    h. Technical assistance to establish, expand or stabilize micro-
enterprises;
    i. Crime, alcohol and/or drug-abuse prevention activities;
    j. Youth leadership development programs/activities;
    k. Tutoring/mentoring programs;
    l. Child care/development programs;
    m. Cultural activities/programs; and
    n. Applicants can use up to 20 percent of the grant for payments of 
reasonable grant administrative costs related to planning and execution 
of the project (e.g., preparation/submission of HUD reports, etc.). A 
detailed explanation of these costs is provided in the OMB circulars 
that can be accessed at the White House Web site at: http://www.whitehouse.gov/omb/circulars/index.html.
    Each activity proposed for funding must meet at least one of the 
following Community Development Block Grant (CDBG) Program national 
objectives:
     Benefit low- and moderate-income persons;
     Aid in the prevention or elimination of slums or blight; 
or
     Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
objectives are provided at 24 CFR 570.208. The CDBG publication 
entitled ``Community Development Block Grant Program Guide to National 
Objectives and Eligible Activities for Entitlement Communities'' 
describes the CDBG regulations, and a copy can be obtained from HUD's 
NOFA Information Center at 800-HUD-8929 or 800-HUD-2209 for the 
hearing-impaired.
    2. Audit Requirements. See Section III.C. of the General Section.
    3. Threshold Requirements Applicable to All Applicants. All 
applicants must comply with the threshold requirements as defined in 
the General Section and the requirements listed below. Applications 
that do not meet these requirements will be considered ineligible for 
funding and will be disqualified.
    a. The applicant must meet the eligibility requirements as defined 
in Section III.A.
    b. The applicant may request up to $600,000.
    c. Only one application can be submitted per campus. If multiple 
applications are submitted, all will be disqualified. However, 
different campuses of the same university system are eligible to apply 
as long as they have an administrative and budgeting structure 
independent of the other campuses in the system.
    d. Institutions that received grants in FY 2005 are not eligible to 
apply under this NOFA.
    e. Applicants must receive a minimum score of 75 points to be 
considered for funding.
    f. An applicant must have a DUNS number to receive HUD grant funds 
(See General Section).
    g. Electronic applications must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on the application 
deadline date May 22, 2006.
    4. Program Requirements. In addition to the standard requirements 
listed in Section III.C. of the General Section, applicants must meet 
the following program requirements:
    a. All funds awarded are for a three-year (36 months) grant 
performance period.
    b. While community-wide use of a facility (that is purchased, 
equipped, leased, renovated or built) is permissible under this 
program, the facility must be predominantly for the use of the 
institution (i.e., it must be used by the staff, faculty, and/or 
students at least 51 percent of the time).
    c. If a TCU is a part or instrumentality of a federally recognized 
tribe, the applicant must comply with the Indian Civil Rights Act (25 
U.S.C. 1301 et seq.) and all other applicable civil rights statues and 
authorities as set forth in 24 CFR 1000.12. If the TCU is not a part or 
instrumentality of a federally recognized tribe the applicant must 
comply with the Fair Housing Act (42 U.S.C. 3601-19) and implementing 
regulations at 24 CFR part 100 et seq., Title VI of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d-2000d-4) (Nondiscrimination in Federally 
Assisted Programs) and implementing regulations at 24 CFR part 1, 
Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 
794) and implementing regulation at 24 CFR Part 8, and Section 109 of 
Title One of the Housing and Community Development Act of 1974 (HCDA), 
as amended, with respect to nondiscrimination on the basis of age, sex, 
religion, or disability and implementing regulations at 24 CFR part 6.
    d. Labor Standards. Institutions and their subgrantees, contractors 
and subcontractors must comply with the labor standards (Davis-Bacon) 
requirements referenced in 24 CFR 570.603. However, in accordance with 
HCDA section 107(e)(2), the Secretary waives the provisions of HCDA 
section 110 with respect to the TCUP program for grants to a TCU that 
is part of a tribe, i.e., a TCU that is legally a department or other 
part of a tribal government, but not a TCU that is established under 
tribal law as an entity separate from the tribal government. If a TCU 
is not part of a tribe, the labor standards of HCDA section 110, as 
referenced in 24 CFR 570.603, apply to activities under the grant to 
the TCU.
    e. Environmental Requirements. Selection for award does not 
constitute approval of any proposed sites. Following selection for 
award, HUD will perform an environmental review of activities proposed 
for assistance in accordance with 24 CFR part 50. The results of the 
environmental review may require that proposed activities be modified 
or proposed sites be rejected. Applicants are particularly cautioned 
not to undertake or commit funds for acquisition or development of 
proposed properties prior to HUD approval of specific properties or 
areas. An application constitutes an assurance that the institution 
will assist HUD to comply with part 50; will supply HUD with all 
available and relevant information to perform an environmental review 
for each proposed property; will carry out mitigating measures required 
by HUD or select alternate property; and will not acquire, 
rehabilitate, convert, demolish, lease, repair, or construct property 
and not commit or expend HUD or local funds for these program 
activities with respect to any eligible property until HUD's written 
approval of the property is received. In supplying HUD with 
environmental information, applicants should use the same guidance as 
provided in the HUD Notice CPD-05-07 entitled, ``Field Environmental 
Review Processing for Rural Housing and Economic Development (RHED) 
grants'' issued August 30, 2005. The General Section provides further 
discussion of the environmental requirements. Further information and 
assistance on HUD's environmental requirements is available at: http://hudstage.hud.gov/utilities/intercept.cfm/offices/cpd/lawsregs/notices/2005/05-07.pdf.
    f. Site Control. Where grant funds will be used for acquisition, 
rehabilitation, or new construction an applicant must demonstrate site 
control. Funds may be recaptured or deobligated from applicants that 
cannot demonstrate

[[Page 11778]]

control of a suitable site within one year after the initial 
notification of award.
    g. Economic Opportunities for Low- and Very-Low Income Persons 
(Section 3). The provisions of Section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) apply to this NOFA and 
requires that to the greatest extent feasible opportunities for 
training and employment be given to lower-income residents of the 
project and contracts for work in connection with the project be 
awarded in substantial part to person residing in the area of the 
project. Regulations are located at 24 CFR Part 135.

IV. Application and Submission Information.

A. Address To Request Application Package

    Applicants may download the instructions to the application found 
on the Grants.gov Web site at http://www.Grants.gov./Apply. If you have 
difficulty accessing the information you may call the Grants.gov 
Support Desk toll free 800-518-GRANTS or e-mail your questions to 
Grants.gov">Support@Grants.gov. See the General Section for information regarding 
the registration process or ask for registration information from the 
Grants.gov Support Desk.

B. Content and Form of Application Submission

1. Forms
    The following forms are required for submission. Copies of these 
forms are available on line at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    a. Application for Federal Assistance (SF-424).
    b. Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
    c. Grant Application Detailed Budget (HUD-424-CB);
    d. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    e. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    f. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    g. Program Logic Model (HUD-96010);
    h. Acknowledgement of Applicant Receipt (HUD-2993). Complete this 
form only if you have received a waiver to the electronic application 
submission requirement. Applicants submitting electronically are not 
required to include this form;
    i. Facsimile Transmittal Cover Page (HUD-96011). This form must be 
used as the cover page to transmit third-party documents and other 
information. Applicants are advised to download the application 
package, complete the SF-424 first and it will pre-populate the 
Transmittal Cover page. The Transmittal Cover page will contain a 
unique identifier embedded in the page that will help HUD associate 
your faxed materials to your application. Please download the cover 
page and then make multiple copies to provide to any of the entities 
responsible for submitting faxed materials to HUD on your behalf. 
Please do not use your own fax cover sheet. HUD will not read any faxes 
that are sent without the HUD-96011 fax transmittal cover page; and
    j. You Are Our Client Survey (HUD-2994-A). (Optional)
2. Certifications and Assurances
    Please read the General Section for detailed information on all the 
Certifications and Assurances. All applications submitted through 
Grants.gov constitute an acknowledgement and agreement to all required 
certifications and assurances. Please include in your application each 
item listed below. Applicants submitting paper copy applications should 
submit the application in the following order:
    a. SF-424, Application for Federal Assistance. Please remember the 
following:
    (1) The full grant amount requested from HUD (entire three years) 
should be entered, not the amount for just one year;
    (2) Include the name, title, address, telephone number, facsimile 
number, and e-mail address of the designated contact. This person will 
receive all correspondence; therefore, please ensure the accuracy of 
the information;
    (3) The Employer Identification/Tax ID number;
    (4) The DUNS Number;
    (5) The Catalog of Federal Domestic Assistance Number for this 
program is 14.519;
    (6) The project's proposed start and completion dates. For the 
purpose of this application the program start date should be December 
1, 2006; and
    (7) The signature of the Authorized Organization Representative 
(AOR) who, by virtue of submitting an application via Grants.gov, has 
been authenticated by the credential provider to submit applications on 
behalf of the Institution and approved by the eBusiness Point of 
Contact to submit an application via Grants.gov. The AOR must be able 
to make a legally binding agreement with HUD. For details on the 
Grants.gov registration process, see HUD's Notice on Early Registration 
published in the Federal Register on December 9, 2005 (70 FR 73332).
    b. Application Checklist. Applicants should use the checklist to 
ensure that they have all the required components of their application. 
Applicants submitting an electronic application should not submit the 
checklist in their application. Applicants receiving a waiver of the 
electronic application submission requirement should include a copy of 
the checklist in their application submission. The checklist is located 
in Appendix A.
    c. Abstract. Applicants must include no more than a two-page 
summary of the proposed project. Please include the following:
    (1) A clear description of the proposed project activities, where 
they will take place (be located), the target population that will be 
assisted, and the impact this project is expected to have on the 
institution;
    (2) A statement that the institution is an eligible institution 
because it is a two-or four-year fully accredited institution, the name 
of the accrediting agency and an assurance that the accrediting agency 
is recognized by the U.S. Department of Education; or the applicant is 
a candidate for accreditation by a regional instructional accrediting 
association recognized by the U.S. Department of Education, including 
the name of the accrediting agency;
    (3) The designated contact person, including phone number, 
facsimile number, and e-mail address (This is the person who will 
receive all correspondence; therefore, please ensure the accuracy of 
the information);
    (4) The project director, if different from the designated contact 
person for the project, including phone number, facsimile number, and 
e-mail address.
    d. Narrative statement addressing the Rating Factors. HUD will use 
the narrative response to the ``Rating Factors'' to evaluate, rate, and 
rank applications. The narrative statement is the main source of 
information. Applicants are advised to review each factor carefully for 
program specific requirements. The response to each factor should be 
concise and contain only information relevant to the factor, yet 
detailed enough to address the factor fully. Please do not repeat 
material in response to the five factors; instead, focus on how well 
the proposal responds to each of the factors. Where there are 
subfactors, each subfactor must be presented separately, with the short 
title of the subfactor presented. Make sure to address each subfactor 
and provide sufficient information about every element of the 
subfactor. The

[[Page 11779]]

narrative section of an application must not exceed 50 pages in length 
(excluding forms, budget narrative, assurances, and abstract) and must 
be submitted on 8\1/2\ by 11-inch paper, double-spaced on one side of 
the paper, with one-inch margins (from the top, bottom and left to 
right side of the document) and printed in standard Times New Roman 12-
point font. Each page of the narrative must include the applicant's 
name and should be numbered. Note that although submitting pages in 
excess of the page limit will not disqualify an applicant, HUD will not 
consider the information on any excess pages. This exclusion may result 
in a lower score or failure to meet a threshold requirement. All 
applicants submitting electronic applications must attach their 
narrative responses to Rating Factors 1-5 as one attachment. PLEASE DO 
NOT ATTACH YOUR RESPONSE TO EACH FACTOR SEPARATELY.
    e. Budget. The budget submission must include the following:
    (1) HUD-424-CB, ``Grant Application Detailed Budget.'' This form 
shows the total budget by year and by line item for the program 
activities to be carried out with the proposed HUD grant. Each year of 
the program should be presented separately. Applicants must also submit 
this form to reflect the total cost for the entire grant performance 
period (Grand Total).
    Make sure that the amounts shown on the SF-424, HUD-424-CB, and all 
other required program forms are consistent and the budget totals are 
correct. Remember to check the addition in totaling the categories on 
all forms so that all items are included in the total. If there is any 
inconsistency between any of the required budget forms, the HUD-424-CB 
will be used. All budget forms must be fully completed. If an 
application is selected for award, the applicant may be required to 
provide greater specificity to the budget during grant agreement 
negotiations.
    (2) Budget Narrative. Applicants must submit a narrative that 
explains how the applicant arrived at the cost estimates for any line 
item over $5,000 cumulative. For example, an applicant proposes to 
construct an addition to an existing building, which will cost 
approximately $200,000. The following cost estimate reflects this 
total: Foundation cost $75,000, electrical work $40,000, plumbing work 
$40,000, interior finishing work $35,000 and landscaping $10,000. The 
proposed cost estimates should be reasonable for the work to be 
performed and consistent with rates established for the level of 
expertise required to perform the work proposed in the geographical 
area. When necessary, quotes from various vendors or historical data 
should be used (please make sure they are kept on file and are 
available for review by HUD at any time). All direct labor or salaries 
must be supported with mandated city/state pay scales, Davis-Bacon wage 
rates/tribally designated wage rate (as appropriate) or other 
documentation. When an applicant proposes to use a consultant, the 
applicant must indicate whether there is a formal written agreement. 
For each consultant, please provide the name, if known, hourly or daily 
fee, and the estimated time on the project. Applicants must use cost 
estimates based on historical data from the institution and/or from a 
qualified firm (e.g., Architectural or Engineering firm), vendor and/or 
qualified individual (e.g., independent architect or contractor) other 
than the institution for projects that involve rehabilitation of 
residential, commercial and/or industrial structures, and/or 
acquisition, construction, or installation of public facilities and 
improvements. Such an entity must be involved in the business of 
rehabilitation, construction, and/or management. Equipment and 
contracts cannot be presented as a total estimated figure. For 
equipment, applicants must provide a list by type and cost for each 
item. Applicants using contracts must provide an individual description 
and cost estimate for each contract. Construction costs must be broken 
down to indicate how funds will be utilized (e.g., demolition, 
foundation, exterior walls, roofing, electrical work, plumbing, 
finishing work, etc.)
    (3) Indirect costs. Indirect costs, if applicable, are allowable 
based on an established approved indirect cost rate. Applicants must 
have on file, and submit to HUD if selected for award, a copy of their 
indirect cost rate agreement. Applicants who are selected for funding 
that do not have an approved indirect cost rate agreement, established 
by the cognizant federal agency, will be required to establish a rate. 
In such cases, HUD will issue an award with a provisional rate and 
assist applicants with the process of establishing a final rate.
    f. Appendix. Applicants receiving a waiver of the electronic 
submission requirements and submitting a paper copy of the application 
must place all required forms in this section. An applicant SHOULD NOT 
submit resumes, or other back-up materials. If this information is 
included, it will not be considered during the review process.

C. Submission Dates and Times

    A complete application package must be received and validated 
electronically by the Grants.gov no later than 11:59:59 p.m. eastern 
time on or before the application deadline date of May 22, 2006. In an 
effort to address any issues with transmission of your application, 
applicants are strongly encouraged to submit their applications prior 
to the application deadline. This will allow an applicant enough time 
to make the necessary adjustments to meet the submission deadline in 
the event Grants.gov rejects the application. Please see the General 
Section for further instructions. Electronic faxes using the Facsimile 
Transmittal cover sheet (Form HUD-96011) contained in the electronic 
application must be received no later than 11:59:59 p.m. eastern time 
on the application deadline date.

D. Intergovernmental Review

    This program is excluded for an Intergovernmental Review.

E. Funding Restrictions

    Ineligible activities for funding under this program include, but 
are not limited to the following:
    1. Renovation of a facility in which the facility is not used at 
least 51 percent of the time by the institution;
    2. Rental space to another entity that operates a small business 
assistance center;
    3. Building of a new facility, where the activities are for non-
students or the activities are run primarily by an outside entity;
    4. Using more than 20 percent of the grant for payments of grant 
administrative costs related to planning and execution of the project 
(e.g., preparation/submission of HUD reports); and
    5. Curriculum development and/or expansion on an institution's 
existing curriculum.

F. Other Submission Requirements

1. Application Submission and Receipt Procedure
    Please read the General Section carefully and completely for the 
electronic submission and receipt procedures for all applications 
because failure to comply may disqualify your application.
2. Waiver of Electronic Submission Requirements
    Please refer to the General Section for further discussion. Paper 
applications will not be accepted from applicants that have not been 
granted a waiver. If

[[Page 11780]]

an applicant is granted a waiver, the Office of University Partnerships 
will provide instructions for submission. Paper application must be 
received by or before the application due date.

V. Application Review Information

A. Criteria

1. Rating Factor 1: Capacity of the Applicant and Relevant Experience 
(25 Points)
    This factor addresses the extent to which the applicant has the 
resources necessary to successfully implement the proposed activities 
in a timely manner.
    a. Knowledge and Experience. For First Time Applicants (25 Points), 
For Previously Funded Applicants (15 Points). In rating this subfactor, 
HUD will consider the extent to which the applicant clearly addresses 
the following:
    (1) Describe the knowledge and experience of the proposed project 
director and staff, including the day-to-day program manager/
coordinator, consultants (including technical assistance providers), 
and contractors in planning and managing the type of project for which 
funding is being requested; and
    (2) Clearly identify the following: Key project team members, 
titles (e.g., project manager/coordinator, etc.), respective roles for 
the project staff, and a brief description of their relevant 
experience.
    If key personnel have not been hired, applicants must identify the 
position title, provide a description of duties and responsibilities, 
and describe the qualifications to be considered in the selection of 
personnel, including subcontractors and consultants.
    Experience will be judged in terms of recent and relevant knowledge 
and skills of the staff to undertake eligible program activities. HUD 
will consider experience within the last five (5) years to be recent 
and experience pertaining to similar activities to be relevant.
    b. Past Performance (10 Points) For Previously Funded Grant 
Applicants Only. This subfactor will evaluate how well an applicant has 
performed successfully under HUD/TCUP grants. Applicants must 
demonstrate this by addressing the following information for all 
previously completed and open HUD/TCUP grants:
    (1) A list of all HUD/TCUP grants received, including the dollar 
amount awarded and the amount expended and obligated as of the date of 
this application;
    (2) A description of the achievement of specific tasks, measurable 
objectives, and specific outcomes consistent with the approved project 
management plan;
    (3) A list detailing the date the project(s) was completed, was it 
completed in the original three-year grant performance period; if not 
completed, why (including when it was or will be completed);
    (4) A comparison of the amount of proposed leveraged funds and/or 
resources to the amount that was actually leveraged; and
    (5) A detailed description of compliance with all reporting 
requirements, including timeliness of submission, whether reports were 
complete and addressed all information (both narrative and financial) 
as required by the grant agreement.
    HUD will also review an applicant's past performance in managing 
funds, including, but not limited to: The ability to account for 
funding appropriately; timely use of funds received from HUD; meeting 
performance targets for completion of activities. In evaluating past 
performance, HUD reserves the right to deduct up to five (5) points 
from this rating score as a result of the information obtained from 
HUD's records (i.e., progress and financial reports, monitoring 
reports, Logic Model submission, and amendments).
2. Rating Factor 2: Need/Extent of the Problem (10 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed project activities and an indication of the 
importance of meeting the need(s). The need(s) described must be 
relevant to activities for which funds are being requested. In 
addressing this factor, applicants should provide, at a minimum, the 
following and must cite statistics and/or analyses contained in at 
least one or more current data sources that are sound and reliable.
    (1) Describe the need(s); and
    (2) Describe the importance of meeting the proposed needs.
    In rating this factor, HUD will consider only current data that is 
specific to the area where the proposed project activities will be 
carried out. Reliable sources of data may include information that 
describes the need, such as a need to have a building renovated because 
it is 50 years old and is deteriorating; a new computer lab has been 
built, but the computers are obsolete; a library has been expanded, but 
the books are outdated, local/Tribal crime statistics, Indian Housing 
Plans, etc. When presenting data, include the source and date of the 
information.
3. Rating Factor 3: Soundness of Approach (44 Points)
    This factor addresses the quality and effectiveness of the proposed 
work plan and the commitment of the institution to sustain the proposed 
activities.
    a. (40 Points) Quality of Work Plan. HUD will evaluate this 
subfactor based on the extent to which an applicant provides a clear 
detailed description of the proposed project and anticipated 
accomplishments.
    (1) (35 Points) Specific Activities. The work plan must describe 
all of the proposed activities and major tasks required to successfully 
implement the proposed project. In addressing this subfactor applicants 
must provide a clear description of the proposed activities and address 
the following:
    (a) Describe all proposed activities in measurable terms (e.g., 
fifty or more students will be receiving computer literacy training, 
the number of new classes that will be taught as a result of building a 
new structure);
    (b) Describe the major tasks in sequential order necessary to 
successfully implement the proposed project. Include the target 
completion dates for the tasks (6 month intervals, up to 36 months);
    (c) List and describe how each activity meets one of the following 
Community Development Block Grant (CDBG) Program national objectives:
     Benefit low- and moderate-income persons;
     Aid in the prevention or elimination of slums or blight; 
or
     Meet other community development needs having a particular 
urgency because existing conditions pose a serious and immediate threat 
to the health and welfare of the community, and other financial 
resources are not available to meet such needs.
    Criteria for determining whether an activity addresses one or more 
objective are provided at 24 CFR 570.208;
    (d) Describe the measurable objectives that will be realized as a 
result of implementing the proposed project; and
    (e) Identify the key staff, as described in Factor 1, who will be 
responsible for completing each task.
    (2) (5 Points) Describe clearly how each proposed project activity 
will:
    (a) Address the needs identified in Factor 2; and
    (b) Relate to and not duplicate other activities in the target 
area.
    b. (2 Points) Involvement of the Faculty and Students. The 
applicant must describe how it proposes to integrate the institution's 
students and faculty into the proposed project activities.

[[Page 11781]]

    c. (2 Points) HUD Policy Priorities. To earn points under this 
subfactor, HUD requires applicants to undertake specific activities 
that will assist the Department in implementing its policy priorities 
and that help the Department achieve its goals and objectives in FY 
2007, when the majority of grant recipients will be reporting 
programmatic results and achievement. In addressing this subfactor, HUD 
will evaluate the extent to which a program will further and support 
HUD priorities. The quality of the responses provided to one or more of 
HUD's priorities will determine the score an applicant can receive. 
Applicants must describe how each policy priority is addressed. 
Applicants that just list a priority will receive no points.
    The total number of points an applicant can receive under this 
subfactor is two (2). Each policy priority addressed has a point value 
of one (1) point, with the exception of the policy priority related to 
removal of regulatory barriers to affordable housing, which has a value 
of up to two (2) points. To receive these two (2) points an applicant 
must indicate how this priority is addressed and submit the completed 
questionnaire (HUD-27300) ``HUD's Initiative on Removal of Regulatory 
Barriers'' found in the General Section along with required 
documentation. It is up to the applicant to determine which of the 
policy priorities they elect to address to receive the available two 
(2) points.
4. Rating Factor 4: Leveraging Resources (9 Points)
    This factor addresses the ability of the applicant to secure 
resources that can be combined with HUD's grant funds to achieve the 
program's purpose.
    HUD will consider the extent to which the applicant established 
partnerships with other entities to secure additional resources to 
increase the effectiveness of the proposed program activities. 
Resources may include funding or in-kind contributions, such as 
services or equipment, allocated for the purpose(s) of the proposed 
project. Resources can be provided by governmental entities (e.g., 
Tribal, federal, and/or state governments), public or private nonprofit 
organizations, for-profit private organizations, or other entities. 
Overhead and other institutional costs (e.g., salaries, indirect costs) 
that the institution has waived can be counted.
    Examples of potential sources for outside assistance include:
     Tribal, federal, state, and local governments.
     Tribally Designated Housing Entities.
     Local or national nonprofit organizations.
     Banks and/or private businesses.
     Foundations.
     Faith-based and other community-based organizations.
    To address this factor, an applicant must provide an outline in the 
application and have on file written commitment letters, memoranda of 
understandings and/or agreements that show the extent and firm 
commitment of all proposed leveraged resources (including any 
commitment of resources from the applicant's own institution) that 
address the following information for each leveraged resource/fund:
    (1) The name of the organization and the executive officer 
authorizing the funds/goods and/or services (Only applicable to the 
narrative section);
    (2) The cash amount contributed or dollar value of the in-kind 
goods and/or services committed (If a dollar amount and its use is not 
shown, the funding will not be counted);
    (3) A specific description of how each contribution is to be used 
toward the proposed activities;
    (4) The date the contribution will be made available and a 
statement that describes the duration of the contribution;
    (5) Any terms or conditions affecting the commitment, other than 
receipt of a HUD Grant; and
    (6) The signature of the appropriate executive officer authorized 
to commit the funds and/or goods and/or services. (Only applicable to 
the written documentation.) Please remember that only items eligible 
for funding under this program can be counted.
    Commitment letters, memoranda of understandings and/or agreements 
are not required at the time of application submission but must be on 
file. Applicants selected for award will be required to submit the 
signed commitment letters, memoranda of understandings and/or 
agreements outlined in the application, within twenty (20) calendar 
days after initial contact from the Office of University Partnerships 
(OUP). OUP will provide specific instructions on how these documents 
must be submitted at that time. Letters, memoranda of understanding, or 
agreements must be submitted on the provider's letterhead and should be 
addressed to Sherone Ivey, Acting Associate Deputy Assistant Secretary 
for University Partnerships. The date of the letter, memorandum of 
understanding, or agreement from the CEO of the provider organization 
must be dated no earlier than nine months prior to this published NOFA. 
OUP will provide specific instructions on how these documents must be 
submitted when contact is made with the applicant. HUD will only 
request and consider the resources/organizations outlined in the 
application. If OUP does not receive those documents in the required 
format and allotted timeframe, an applicant will not receive points 
under this factor and the application will be rated and ranked to 
address this point change.
    In scoring this factor, HUD will award nine (9) points to an 
applicant that provides properly documented leveraging resources as 
listed in their application that are 10 percent or more of the amount 
requested under this program; six (6) points to applicants that provide 
properly documented leveraging resources as listed that are 7-9 percent 
of the amount requested under this program; three (3) points to 
applicants that provide properly documented leveraging resources as 
listed that are 4-6 percent of the amount requested under this program; 
and zero (0) points to applicants that provide properly documented 
leveraging resources as listed that are less than 4 percent of the 
amount requested or resources are not properly documented.
5. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points)
    This factor reflects HUD's goal to embrace high standards of 
management and accountability. It measures the applicant's commitment 
to assess their performance to achieve the program's proposed 
objectives and goals. Applicants are required to develop an effective, 
quantifiable, outcome oriented evaluation plan for measuring 
performance and determining that objectives and goals have been 
achieved. The Logic Model is a summary of the narrative statements 
presented in Factors 1-4. Therefore, the information submitted on the 
logic model should be consistent with the information contained in the 
narrative statements.
    ``Outcomes'' are benefits accruing to institutions of higher 
education during or after participation in the TCUP program. Applicants 
must clearly identify the outcomes to be measured and achieved. 
Examples of outcomes include an increased number of campus facilities 
(e.g., newly built or renovated), an increased number of classroom 
spaces available, or an increased student enrollment and graduation 
rate.
    In addition, applicants must establish interim benchmarks and 
outputs that lead to the ultimate achievement of outcomes. ``Outputs'' 
are the direct

[[Page 11782]]

products of the project 's activities. Examples of outputs are the 
number of new facilities renovated, or the number of new dormitories 
built. Outputs should produce outcomes for the project. At a minimum, 
an applicant must address the following activities in the evaluation 
plan:
    a. Short-and-long term objectives to be achieved;
    b. Measurable impacts the grant will have on the university or the 
target population;
    This information must be included under this section on a HUD-
96010, Program Logic Model form. HUD has developed a new approach to 
completing this form. Please carefully read the General Section for 
instructions, training is available. (Form HUD-96010 will be excluded 
from the page count.) A narrative is not required. However, if a 
narrative is provided, those pages will be included in the page count.

B. Review and Selection Process

    1. Application Selection Process
    Two types of reviews will be conducted:
    a. A threshold review to determine an applicant's basic 
eligibility; and
    b. A technical review for all applications that pass the threshold 
review to rate and rank the application based on the ``Rating Factors'' 
listed in Section V.A. above.
    Only those applications that pass the threshold review will receive 
a technical review and be rated and ranked.
    2. Rating Panels. To review and rate applications, HUD may 
establish panels that may include experts or consultants not currently 
employed by HUD to obtain certain expertise.
    3. Ranking. HUD will fund applications in rank order, until all 
available program funds are awarded. In order to be funded, an 
applicant must receive a minimum score of 75 points out of a possible 
100 points to be considered for funding for Factors 1 through 5. The 
RC/EZ/EC-II bonus points described in the General Section do not apply 
to this NOFA. If two or more applications have the same number of 
points, the application with the most points for Factor 3 shall be 
selected. If there is still a tie, the application with the most points 
for Factor 1 shall be selected. If there is still a tie, the 
application with the most points for Factor 2, 4, and then 5 shall be 
selected in that order, until the tie is broken. HUD reserves the right 
to select out of rank order to provide for geographic distribution of 
grantees.
    HUD also reserves the right to reduce the amount of funding 
requested in order to fund as many highly ranked applications as 
possible. Additionally, if funds remain after funding the highest 
ranked applications, HUD may fund part of the next highest-ranking 
application. If an applicant turns down the award offer, HUD will make 
an award to the next highest-ranking application. If funds remain after 
all selections have been made, the remaining funds will be carried over 
to the next funding cycle's competition.
    4. Corrections to Deficient Applications. See the General Section.

C. Anticipated Announcement and Award Dates

    Announcements of awards are anticipated on or before September 30, 
2006.

VI. Award Administration Information

A. Award Notice

    After all selections have been made, HUD will notify all winning 
applicants in writing. HUD may require winning applicants to 
participate in additional negotiations before receiving an official 
award. For further discussion on this matter, please refer to the 
General Section.

B. Administrative and National Policy Requirements

    Refer to Section VI.B. of the General Section.
    1. Debriefing. The General Section provides the procedures for 
requesting a debriefing. All requests for debriefings must be made in 
writing and submitted within thirty (30) calendar days of receipt of 
written notification to: Sherone Ivey, Office of University 
Partnerships, Robert C. Weaver Federal Building, 451 Seventh Street, 
SW., Room 8106; Washington, DC 20410-6000. Applicants may also write to 
Ms. Ivey via e-mail at [email protected].
    2. Administrative. Grants awarded under this NOFA will be governed 
by the provisions of 24 CFR part 84 (Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations), A-21 (Cost Principles for Educational Institutions) and 
A-133 (Audits of States, Local Governments, and Non-Profit 
Organizations). Applicants can access the OMB circulars at the White 
House Web site at http://www.whitehouse.gov/omb/circulars/index.html.
    3. OMB Circulars and Governmentwide Regulations Applicable to 
Financial Assistance Programs. The General Section provides discussion 
of OMB circulars and governmentwide regulations.
    4. Code of Conduct. See the General Section for further discussion.
    5. Procurement of Recovered Materials. See the General Section for 
further discussion.
    6. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Toward Government Contractors' Labor Relations of 
Federal and Federally Funded Construction Projects. See the General 
Section for further discussion if applicable.
    7. Executive Order 13166, Improving Access to Services For Persons 
With Limited English Proficiency (LEP). See the General Section for 
further discussion.

C. Reporting

    All grant recipients under this NOFA are required to submit 
quarterly progress reports. The progress reports shall consist of two 
components, a narrative that must reflect the activities undertaken 
during the reporting period and a financial report that reflects costs 
incurred by budget line item, as well as a cumulative summary report 
during the reporting period.
    For each reporting period, as part of the required report to HUD, 
grant recipients must include a completed Logic Model (HUD-96010), 
which identifies output and outcome achievements.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment (ROI) statement. HUD will be 
publishing a separate notice on the ROI concept.

VII. Agency Contacts

    Applicants may contact Sherone Ivey at (202) 708-3061, extension 
4200, or Susan Brunson at (202) 708-3061, extension 3852. Persons with 
speech or hearing impairments may call the Federal Information Relay 
Service TTY at (800) 877-8339. Except for the ``800'' number, these 
numbers are not toll-free. Applicants may also reach Ms. Ivey via e-
mail at [email protected], and Ms. Brunson at [email protected].

VIII. Other

Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2528-0215. In accordance with the Paperwork

[[Page 11783]]

Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 68 hours per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application, quarterly 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.

Appendix A--Application Checklist--TCUP

    This checklist identifies application submission requirements. 
Applicants are requested to use this checklist when preparing an 
application to ensure submission of all required elements. Applicants 
submitting an electronic application do not have to submit the 
checklist. Applicants that receive a waiver of the electronic 
application submission requirement should include a copy of the 
checklist in their application.
    Check off to ensure these items have been included in the 
application:

----SF-424 ``Application For Federal Assistance''
----Application Checklist (Applicants that submit paper applications 
must include the checklist in their applications)
----Abstract (must include no more than a two-page summary of the 
proposed project)

    Indicate the page number where each of the Factors is located:
    Narrative Statement Addressing the Rating Factors.
    The narrative section of an application must not exceed 50 pages in 
length (excluding forms, budget narrative and abstract). This 
information must be submitted on 8\1/2\ by 11-inch paper, double-spaced 
on one side of the paper, with one-inch margins (from the top, bottom, 
and left and right sides of the documents) and printed in standard 
Times New Roman 12-point font.

----Factor I
----Factor II
----Factor III
----Factor IV
----Factor V
----HUD-96010 Logic Model

    Check off to ensure these items have been included in the 
application:
    Appendix

----Budget
----HUD 424-CB ``Grant Application Detailed Budget''
----Budget Narrative (No form provided, but must be submitted for the 
total three-year grant period.

Appendix B--All Required Forms

    The following forms are required for submission. All required forms 
are contained in the electronic application package.

----Application for Federal Assistance (SF-424);
----Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement);
----Disclosure of Lobbying Activities (SF-LLL); if applicable
----Grant Application Detailed Budget (HUD-424-CB);
----America's Affordable Communities Initiative (HUD-27300), if 
applicable;
----Applicant/Recipient Disclosure/Update Report (HUD-2880);
----Acknowledgement of Applicant Receipt (Only applicants who submit 
paper applications (HUD-2993);
----Client Comments and Suggestions (HUD-2994);
----You Are Our Client Survey (HUD-2994-A); and
----Logic Model (HUD-96010).
BILLING CODE 4210-01-P

[[Page 11784]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.010

BILLING CODE 4210-01-C

[[Page 11785]]

Fair Housing Initiatives Program

Overview Information:

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Fair Housing and Equal Opportunity.
    B. Funding Opportunity Title: Fair Housing Initiatives Program 
(FHIP).
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The OMB Approval Number is: 2529-
0033. The Federal Register number for this NOFA is: FR-5030-N-15.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): Private 
Enforcement Initiative (PEI); Education and Outreach Initiative (EOI) 
14.408.
    F. Dates: The application deadline date shall be on or before May 
17, 2006. Applications must be received and validated by Grants.gov no 
later than 11:59:59 p.m. on the application deadline date. Please see 
the General Section of the SuperNOFA (the General Section) for 
information on electronic deadline and timeliness requirements.
    G. Optional, Additional Overview Content Information
1. Funding Breakdown
    This year there are two initiatives, Private Enforcement and 
Education and Outreach Initiatives, and there are four components under 
each: The following is a breakdown of each Initiative:
    (a) Private Enforcement Initiative (PEI)
    (1) Hurricane Katrina Enforcement Component,
    (2) General Component,
    (3) Performance Based Funding Component, and
    (4) Subprime Lending Component.
    (b) Education and Outreach Initiative (EOI)
    (1) General Component.
    (2) Disability Component.
    (3) Subprime Lending Component.
    (4) Fair Housing Awareness Component.
    Please note that there are some new components this year. These are 
the PEI Enforcement and Subprime Lending Components and the EOI Fair 
Housing Awareness and Subprime Lending Components. Please see the chart 
located in this NOFA for information on each of these new components.
2. Electronic Applications
    For FY 2006, FHIP electronic applications will be available on 
www.Grants.gov/Find and http://www.grants.gov/Apply. For further 
instructions on electronic application submission requirements using 
Grants.gov, please read the General Section.
3. Fair Housing Initiatives Program (FHIP) Funding
    FHIP funds are used to increase compliance with the Fair Housing 
Act (the Act) and with substantially equivalent State and local fair 
housing laws. Approximately $18,100,000 in FY 2006 funds and any 
potential recapture is allocated to two (2) initiatives as follows:
    a. Private Enforcement Initiative (PEI) $13,900,000.
    b. Education and Outreach Initiative (EOI) $4,200,000.
4. Award Agreements
    HUD expects to award a cost reimbursable cooperative agreement or 
grant agreement to each applicant selected for award. Upon completion 
of negotiations, HUD reserves the right to use the funding instrument 
it determines is most appropriate.
5. Eligible Applicants
    Eligible applicants are Qualified Fair Housing Enforcement 
Organizations (QFHOs) and Fair Housing Enforcement Organizations 
(FHOs), see 24 CFR 125.103; public or private, for-profit or not-for-
profit organizations or institutions and other public or private 
entities that are formulating or carrying out programs to prevent or 
eliminate discriminatory housing practices (including entities that 
will be established as a result of receiving an award under this FHIP 
NOFA); agencies of State or local governments; and agencies that 
participate in the Fair Housing Assistance Program (FHAP).
6. Private Enforcement Initiative--Performance Based Funding Component
    Applicants awarded funding under the PEI--(PBFC) for FY 2006 will 
not be eligible to submit applications for additional FHIP funding for 
FY 2007 and FY 2008. Applicants awarded funding under this component 
will be eligible to apply for funding in FY 2009. Applicants awarded 
PBFC funding in FY 2005 are not eligible to submit applications for 
additional FHIP funding for FY 2006 and FY 2007.
7. Start Date
    For planning purposes, assume a start date no later than October 
19, 2006.

Full Text of Announcement

I. Funding Opportunity Description

    Authority. Section 561 of the Housing and Community Development Act 
of 1987, as amended (42 U.S.C. 3616), established the FHIP. The 
implementing regulations are found at 24 CFR part 125. If you are 
interested in applying for funding under the FHIP, please review 
carefully the General Section of the SuperNOFA (hereafter, the General 
Section), the FHIP Authorizing Statute (Sec. 561 of the Housing and 
Community Development Act of 1987, as amended), and the FHIP 
Regulations (24 CFR 125.103-501).

A. FHIP Initiatives and Components

    The FHIP assists fair housing activities that increase compliance 
with the Act and with substantially equivalent fair housing laws 
administered by State and local government agencies under the Fair 
Housing Assistance Program (FHAP).
1. Private Enforcement Initiative (PEI)
    This Initiative assists private, tax-exempt fair housing 
enforcement organizations in the investigation and enforcement of 
alleged violations of the Act and substantially equivalent State and 
local fair housing laws. Under this Initiative, there are four 
Components, the General Component, the Subprime Lending Component, the 
Hurricane Katrina Enforcement Component, and the Performance Based 
Funding Component.
2. Education and Outreach Initiative (EOI)
    This Initiative assists organizations that inform the public about 
their rights and obligations under the Act and substantially equivalent 
State and local fair housing laws. Applications are solicited for this 
Initiative under the EOI-Regional/Local/Community-Based Program (R/L/C-
B)--in which activities are conducted on a regional/local/community-
based level.
    Applicants who apply under EOI R/L/C-B may apply under one or more 
of the following Components, as follows: EOI General Component, EOI 
Disability Component. EOI Subprime Lending Component, and EOI Fair 
Housing Awareness Component.
    All applications submitted under EOI are required to describe a 
complaint referral process that results in referrals of fair housing 
complaints to HUD or Fair Housing Assistance Program (FHAP) 
substantially equivalent agencies. If funded, you will be required to 
develop your complaint referral process.

B. Other

    1. Program Definitions. The definitions that apply to this FHIP 
section of the NOFA are as follows:
    a. Broad-based proposals are those that include activities that are 
not limited to a single fair housing issue but instead, cover multiple 
issues related to

[[Page 11786]]

housing discrimination covered under the Act, such as: rental, sales, 
and financing of housing. (See also Full Service Projects below).
    b. Complainant means the person, including the Assistant Secretary 
for Fair Housing and Equal Opportunity at HUD, who files a complaint 
under Section 810 of the Fair Housing Act.
    c. Disability Advocacy Groups means organizations that 
traditionally have provided for the civil rights of persons with 
disabilities. This would include organizations such as Independent 
Living Centers and cross-disability legal services groups. Such 
organizations must be experienced in providing services to persons with 
a broad range of disabilities, including physical, cognitive, and 
psychiatric/mental disabilities. Such organizations must demonstrate 
actual involvement of persons with disabilities throughout their 
activities, including on staff and board levels.
    d. Enforcement proposals are potential complaints under the Act 
that are timely, jurisdictional, and well-developed, that could 
reasonably be expected to become enforcement actions if an impartial 
investigation found evidence supporting the allegations and the case 
proceeded to a resolution with HUD or FHAP agency involvement.
    e. Fair Housing Act means Title VIII of the Civil Rights Act of 
1968 as amended by the Fair Housing Amendments Act of 1988 (42 U.S.C. 
3600-3620).
    f. Fair Housing Assistance Program (FHAP) agencies mean State and 
local fair housing enforcement government agencies that receive FHAP 
funds because they administer laws deemed substantially equivalent to 
the Act, as described in 24 CFR 115.
    g. Fair Housing Enforcement Organization (FHO) means an 
organization engaged in fair housing activities as defined in 24 CFR 
125.103.
    h. Full-service projects must include the following enforcement-
related activities in the project application: Interviewing potential 
victims of discrimination; analyzing housing-related issues; taking 
complaints; testing; evaluating testing results; conducting preliminary 
investigations; conducting mediation; enforcing meritorious claims 
through litigation or referral to administrative enforcement agencies; 
and disseminating information about fair housing laws.
    i. Grassroots organizations (See General Section).
    j. Jurisdiction means that the complaint must be timely filed; the 
complainant must have standing; the respondent and the dwelling 
involved (where the complaint involves a provision or denial of a 
dwelling) must be covered by the Act; and the subject matter and the 
basis of the alleged discrimination, must constitute illegal practices 
as defined by the Act.
    k. Meritorious claims means enforcement activities by an 
organization that resulted in lawsuits, consent decrees, legal 
settlements, HUD or substantially equivalent agency (under 25 CFR 
115.6) conciliations and organization initiated settlements with the 
outcome of monetary awards for compensatory and/or punitive damages to 
plaintiffs or complaining parties, or other affirmative relief, 
including the provision of housing (24 CFR 125.103).
    l. Mortgages with unacceptable terms or conditions or resulting 
from unacceptable practices means a mortgage or a group or category of 
mortgages with one or more of the terms and conditions as specified 
under 24 CFR part 81.2.
    m. Operating budget means an organization's total planned budget 
expenditures from all sources, including the value of in-kind and 
monetary contributions, in the period for which funding is requested.
    n. Qualified Fair Housing Enforcement Organization (QFHO) means an 
organization engaged in fair housing activities as defined in 24 CFR 
125.103.
    o. Regional/Local/Community-Based Activities are defined at 24 CFR 
125.301(a) and (d).
    p. Rural Areas means the following:
    (1) A non-urban place having fewer than 2,500 inhabitants (within 
or outside of the metropolitan areas).
    (2) A county or parish with an urban population of 20,000 
inhabitants or less.
    (3) Territory, including its persons and housing units, in rural 
portions of ``extended cities.'' The Census Bureau identifies the rural 
portions of extended cities.
    (4) Open country that is not part of or associated with an urban 
area. The USDA describes ``open country'' as a site separated by open 
space from any adjacent densely populated urban area. Open space 
includes undeveloped land, agricultural land, or sparsely settled 
areas, but does not include physical barriers (such as rivers and 
canals), public parks, commercial and industrial developments, small 
areas reserved for recreational purposes, or open space set aside for 
future development.
    (5) Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    q. Traditional Civil Rights Organizations mean non-profit 
organizations or institutions and/or private entities with a history 
and primary mission of securing Federal civil rights protection for 
groups and individuals protected under the Act or substantially 
equivalent State or local laws and that are engaged in programs to 
reduce discriminatory housing practices.
    r. Underserved Areas mean jurisdictions where there are no Fair 
Housing Initiatives Program or Fair Housing Assistance Program agencies 
and where either no public or private fair housing enforcement 
organizations exist or the jurisdiction is not sufficiently served by 
one or more public or private enforcement fair housing organizations 
and there is a need for service.
    s. Underserved Populations mean groups of individuals who fall 
within one or more of the categories protected under the Act or who are 
also:
    (1) Of an immigrant population (especially racial and ethnic 
minorities who are not English-speaking or limited English proficient);
    (2) In rural populations,
    (3) The homeless,
    (4) Persons with disabilities who can be historically documented to 
have been subject to discriminatory practices not having been the focus 
of Federal, State or local fair housing enforcement efforts, and
    (5) Areas that are heavily impacted with minorities and there is 
inadequate protection and ability to provide service from the State or 
local government or private fair housing organizations.

II. Award Information

    For Fiscal Year 2006, $20,000,000 is appropriated for the Fair 
Housing Initiatives Program (FHIP). This appropriated amount may be 
supplemented by recaptured funds. Of this amount, approximately 
$18,100,000 is being made available on a competitive basis to eligible 
organizations responding to this FHIP NOFA. See chart for a breakdown 
by Initiative/Component.

A. Award Instrument

    The type of funding instrument HUD may offer a successful applicant 
which sets forth the relationship between HUD and the grantee will be a 
grant or cooperative agreement, where the principal purpose is the 
transfer of funds, property, services, or anything of value to the 
applicant to accomplish a public purpose. The agreement will identify 
the eligible activities to be undertaken, financial controls, and 
special conditions, including sanctions for violations of the 
agreement. HUD will determine the type of instrument

[[Page 11787]]

under which the award will be made and monitor progress to ensure that 
the grantee has achieved the objectives set out in the agreement. 
Failure to meet such objectives may be the basis for HUD determining 
the agreement to be in default and exercising available sanctions, 
including suspension, termination, and/or the recapture of funds. Also, 
HUD may refer violations or suspected violations to enforcement offices 
within HUD, the Department of Justice, or other enforcement 
authorities.
    If awarded as a Cooperative Agreement, HUD will also exercise the 
right to have substantial involvement by: Conducting quarterly reviews 
and approval of all proposed deliverables documented in the applicant's 
Work Plan or Statement of Work (SOW), and determining whether the 
agency meets all certification and assurance requirements. HUD will 
conduct this performance assessment, in part, by using the Logic Model 
submitted by the applicant and approved by HUD in the award agreement 
(rating Factor 5). If upon completion of this assessment by the 
Government Technical Representative (GTR) a determination is made that 
the quarterly requirements have not been met, the grantee will be 
obligated to provide additional information or make modifications to 
its work plan and activities, as necessary, in a timeframe to be 
established by the GTR.

B. Project Starting Period

    For planning purposes, assume a start date no later than October 
19, 2006.

III. Eligibility Information

A. Eligible Applicants and Activities

    The following chart details each FHIP Initiative/Component and the 
approximate Funding Available along with Eligible Applicants and 
Activities:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                        Allocation
        Initiative/Component              amount       Applicant eligibility        Project period              Award caps          Applicant eligible
                                         available                                                                                      activities
--------------------------------------------------------------------------------------------------------------------------------------------------------
Private Enforcement Initiative (PEI)      $5,100,000  Fair Housing             12-18 months              $275,000...............  Eligible activities
 General Component: Assists private,                   Enforcement                                                                 include: (1)
 tax-exempt fair housing enforcement                   Organizations (FHOs)                                                        Complaint intake of
 organizations in the investigation                    with at least one year                                                      allegations of
 and enforcement of alleged                            of experience in                                                            housing
 violations of the Fair Housing Act                    complaint intake,                                                           discrimination,
 and substantially equivalent State                    complaint                                                                   testing evaluating
 and local fair housing laws.                          investigation, testing                                                      testing results, or
                                                       for fair housing                                                            providing other
                                                       violations, and                                                             investigative and
                                                       meritorious claims in                                                       complaint support for
                                                       the two years prior to                                                      administrative and
                                                       the filing of the                                                           judicial enforcement
                                                       application (24 CFR                                                         of fair housing laws:
                                                       125.401(b)(2) and                                                           (2) Investigation of
                                                       Qualified Fair Housing                                                      individual complaints
                                                       Enforcement                                                                 and systemic housing
                                                       Organizations (QFHOs)                                                       discrimination for
                                                       with at least two                                                           further enforcement
                                                       years of enforcement                                                        processing by HUD
                                                       related experience as                                                       through testing and
                                                       noted above, and                                                            other investigative
                                                       meritorious claims in                                                       methods; (3)
                                                       the three years prior                                                       Mediation or other
                                                       to filing this                                                              voluntary resolution
                                                       application (24 CFR                                                         of allegations of
                                                       125.103).                                                                   fair housing
                                                                                                                                   discrimination after
                                                                                                                                   a complaint has been
                                                                                                                                   filed; and (4)
                                                                                                                                   litigating fair
                                                                                                                                   housing cases
                                                                                                                                   including procuring
                                                                                                                                   expert witnesses.
Private Enforcement Initiative (PEI)      $8,100,000  QFHOs and FHOs (with at  36 months                 $275,000 per year for a  See PEI above.
 Performance Based Funding Component                   least one year of                                  three-year duration,
 Assists private, tax-exempt fair                      enforcement related                                based upon
 housing enforcement organizations                     experience) who have                               appropriations.
 in the investigation and                              received excellent                                 Eligible PBFC
 enforcement of alleged violations                     performance reviews                                applicants must
 of the Fair Housing Act and                           for FHIP PEI awards                                receive a minimum
 substantially equivalent State and                    made in any two FY's                               score of 95 from the
 local fair housing laws.                              beginning with FY 2002                             FY '06 Technical
                                                       through FY 2004; and                               Evaluation Panel (TEP)
                                                       have received a                                    to be considered for
                                                       minimum score of 95 on                             funding.
                                                       the most recent of the
                                                       2 performance reviews
                                                       from their Government
                                                       Technical
                                                       Representative.

[[Page 11788]]

 
Private Enforcement Initiative              $300,000  See PEI above..........  12-18 months              $100,000...............  See PEI above.
 Hurricane Katrina Enforcement
 Component. Applicants must
 undertake fair housing enforcement
 activities in one of the Hurricane
 Katrina impacted areas in the
 states of Louisiana, Mississippi,
 Alabama, or Texas, or as a result
 of displacement of persons from
 areas impacted by Hurricane Katrina.
Private Enforcement Initiative (PEI)        $400,000  See PEI above..........  12-18 months              $50,000................  See PEI above.
 Subprime Lending Component. This
 component provides funds to assist,
 private fair-lending enforcement
 efforts to address discriminatory
 terms or conditions or resulting
 from discriminatory practices in
 the subprime mortgage market.
 Applicant must demonstrate
 experience conducting fair-lending
 enforcement in the subprime market.
 Such experience includes: pending
 complaints, investigations, or
 litigation alleging discriminatory,
 subprime lending practices; past
 litigation alleging subprime
 lending discrimination; fair-
 lending testing of subprime
 lenders; published reports that
 include analysis the applicant has
 done on racial patterns in subprime
 lending; and any past or pending
 investigation or litigation
 involving discriminatory, predatory
 lending. Applicant may use this
 funding for: steering to subprime
 loans, providing different terms
 based on prohibited bases, as well
 as assist with pending complaints,
 investigation, or litigation
 alleging discriminatory subprime or
 predatory lending; or support new
 fair lending investigations or
 litigation of discrimination into
 discriminatory predatory lending,
 or other discrimination in the
 subprime market.

[[Page 11789]]

 
Education and Outreach Initiative         $4,200,000  QFHOs FHOs, public or    12-18 months              $100,000...............  Eligible activities
 (EOI)--. EOI Regional, Local and                      private for profit or                                                       include but are not
 Community Based Program: Assists                      not for profit                                                              limited to conducting
 organizations that inform the                         organizations or                                                            educational symposia
 public about rights and obligations                   institutions, or other                                                      or other training,
 under the Fair Housing Act and                        public or private                                                           developing innovative
 substantially equivalent State and                    entities that carry                                                         fair housing
 local fair housing laws. Applicants                   out programs to                                                             activities or
 must develop a complaint referral                     prevent or eliminate                                                        materials into
 process so that funded activities                     discriminatory housing                                                      languages applicable
 will result in referrals to HUD of                    practices. This                                                             to your community
 fair housing complaints and other                     includes agencies of                                                        throughout your
 possible discriminatory housing                       State or local                                                              project area;
 practices.                                            governments and                                                             providing outreach
                                                       agencies that                                                               and information on
                                                       participate in the                                                          fair housing through
                                                       Fair Housing                                                                printed and
                                                       Assistance Program                                                          electronic media;
                                                       (FHAP). See FHIP NOFA-                                                      developing fair
                                                       Eligibility                                                                 housing curricula;
                                                       Information.                                                                providing outreach to
                                                                                                                                   persons with
                                                                                                                                   disabilities and
                                                                                                                                   their support
                                                                                                                                   organizations and
                                                                                                                                   service housing
                                                                                                                                   providers; and
                                                                                                                                   working with homeless
                                                                                                                                   activists or persons.
EOI General Component Open to             $2,700,000  Same as EOI above......  12-18 months              $100,000...............  For a list of Eligible
 applicants for all other fair                                                                                                     Activities See EOI
 housing education and outreach                                                                                                    above.
 activities.
EOI Disability Component Applicants         $900,000  Same as EOI above......  12-18 months              $100,000...............  See above.
 must emphasize the fair housing
 needs of persons with disabilities,
 so that persons with disabilities,
 housing providers and the general
 public better understand the rights
 and obligations under the Fair
 Housing Act and fully appreciate
 housing discrimination that persons
 with disabilities may encounter.
 The funded education and outreach
 activities must be provided to all
 persons protected under the Fair
 Housing Act.

[[Page 11790]]

 
EOI Subprime Lending Component              $300,000  Same as EOI above.       12-18 months              $50,000................  See above.
 Applicants must plan public events                    Applicants must have
 at a regional/local level which                       at least three years
 educates consumers on fair housing,                   experience in planning
 financial literacy, credit                            public conferences at
 management and how to avoid high-                     the community level.
 cost loans and abusive lending
 practices that violate the Fair
 Housing Act. Applicants must
 address in their project: (1)
 abusive lending practices and the
 fair housing implications to
 minority neighborhoods; and (2)
 legal approaches to confronting
 abusive lending practices,
 especially those linked to racial
 targeting and other potential
 violations of applicable fair
 housing laws.
EOI Fair Housing Awareness Component        $300,000  Same as EOI above......  12-18 months              $100,000...............  See above.
 Applicants must undertake fair
 housing education and outreach to
 individuals impacted by Hurricane
 Katrina Applicants must develop a
 methodology for educating persons
 about their fair housing rights
 under the Act in areas impacted by
 Hurricane Katrina in the states of
 Louisiana, Mississippi, Alabama,
 and Texas or as a result of
 displacement of persons.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Eligibility of Successor Organizations for PEI. HUD recognizes that 
QFHOs and FHOs may merge with each other or other organizations. The 
merger of a QFHO or an FHO with a new organization, that has a separate 
Employer Identification Number (EIN), does not confer QFHO or FHO 
status upon the successor. To determine whether the successor 
organization meets the eligibility requirements for this Initiative, 
HUD will look at the enforcement-related experience of the successor 
organization (based upon the successor organization's EIN). The 
successor organization is not eligible to apply under this Initiative 
unless it establishes in its application that it is a private, tax-
exempt organization with the requisite two years of enforcement related 
experience for a QFHO or one year experience for an FHO.

Administrative Costs

    Eligible administrative costs include leases for office space, 
under the following conditions:
    (1) The lease must be for existing facilities not requiring 
rehabilitation or construction;
    (2) No repairs or renovations of the property may be undertaken 
with Federal funds; and
    (3) Properties in the Coastal Barrier Resource System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased with Federal funds.
    B. Cost Sharing or Matching. No matching funds are required for the 
Education and Outreach or Private Enforcement Initiatives.

C. Other

1. Threshold Requirements
    Program Requirements for All Initiatives. In addition to the civil 
rights and other threshold requirements found in the General Section, 
FHIP program applications must also meet the following requirements:
    a. Protected Classes. All FHIP-funded projects must address housing 
discrimination based upon race, color, religion, sex, disability, 
familial status, or national origin. All services and activities must 
be available to the protected class members.
    b. Tax Exempt Status. Applicants for the PEI Initiative are 
ineligible for funding if they are not a 501(c)(3) tax-exempt 
organization as determined by the Internal Revenue Service (IRS) prior 
to the application deadline date.

[[Page 11791]]

    c. Name Check Review. See the General Section.
    d. Poor Performance. All applicants are ineligible for funding if 
they are a previous FHIP grantee that has received a ``Poor'' 
performance rating for its most recent performance rating from its 
Government Technical Representative (GTR). HUD will assess performance 
ratings for applicants who have received FHIP funding in FY 2002 
through FY 2004. If the applicant has received a ``poor'' performance 
rating for its most recent performance rating from its GTR, its 
application is ineligible for the FY 2006 competition. An applicant 
that does not agree with its determination of ineligibility for the FY 
2006 competition because of ``poor'' performance must address to HUD's 
satisfaction the factors resulting in the ``poor'' performance rating 
before the FHIP application deadline date. If the ``poor'' performance 
rating is not resolved to the Department's satisfaction before the 
application deadline date, the application is ineligible for the FY 
2006 FHIP NOFA competition. HUD is interested in improving the 
performance level of all grantees; therefore, applicants who are deemed 
ineligible because of a ``poor'' performance rating have the right and 
are encouraged to seek technical assistance from HUD to correct their 
performance in order to be eligible for future NOFA competition. 
Applicants who have received a ``poor'' performance prior to FY 2003 
must provide written documentation that they have implemented remedies 
to address those issues and concerns that contributed to a ``poor'' 
performance rating. This written documentation should be an addendum to 
the abstract.
    e. Suits Against the United States. An application is ineligible 
for funding if, as a current or past recipient of FHIP funds, the 
organization used any funds provided by HUD for the payment of expenses 
in connection with litigation against the United States (24 CFR 
125.104(f)).
    f. Other Litigation. An application is ineligible for funding if 
the organization used funds provided by HUD under this Program to 
settle a claim, satisfy a judgment, or fulfill a court order in any 
defensive litigation (24 CFR 125.104).
    g. Maximum award. Applicants are ineligible for funding if they 
request funding in excess of the maximum allowed under the Initiative 
or Component for which they are applying. In addition, inconsistencies 
in the amount requested and/or miscalculations that result in amounts 
over the maximum award will be considered excessive; therefore the 
application will be considered ineligible.
    h. Dun and Bradstreet Numbering System (DUNS) Numbering 
Requirement. Refer to General Section for information regarding the 
DUNS requirement. You will need a DUNS number to complete your 
electronic application as it is a mandatory field on the electronic 
application. The Grants.gov registration also requires use of the DUNS 
number.
    i. Majority of Eligible Activities. Greater than 50 percent of the 
activities and costs within the Statement of Work (SOW) and budget are 
fair housing related activities.
    j. Fair Housing Assistance Program (FHAP). FHAP agencies who are 
under a suspension based on agency performance, as designated under 24 
CFR Part 115.211(b) at time of application are ineligible for funding.
    k. Minimum TEP Score. Applicants must receive a minimum TEP score 
of 75 to be considered for funding.
    l. Application Preference. Applicants submitting multiple 
applications must state their preference for funding in the Abstract as 
applicants can only receive one award under the FHIP.
    m. Independence of Awards. The application submitted must be 
independent and capable of being implemented without reliance on the 
selection of other applications.
    n. Training funds. The proposed budget must set aside funds to 
participate in HUD mandatory sponsored or approved training in the 
amount of $7,000 for EOI and PEI components; and $7000 annually for a 
36-month duration for PBFC.
    Do not include amounts over the $7,000 (as appropriate) for the 
training set-aside in this category. If applicants do not include these 
funds in the budget and are selected for an award, HUD will modify the 
budget, reallocating the appropriate amount for training.
    o. Accessibility Requirements. All activities, facilities, and 
materials funded by this program must be accessible and visitable to 
persons with disabilities (24 CFR 8.2, 8.4, 8.6, and 8.54).
    p. Fair Housing Act. HUD expects applicants to address housing 
discrimination covered under the Act. HUD has determined there is a 
need to ensure equal opportunity and access to housing in communities 
across the nation.
    q. Research Activities. Applicants are ineligible for funding if 
between 90-100% of their project is aimed at research.
    r. Limited English Proficient (LEP). Applicants obtaining an award 
from HUD must provide access to program benefits and information to LEP 
individuals through translation and interpretive services in accordance 
with HUD's published LEP Guidance.
    s. OMB Circular. For-profit awardees are not allowed to earn a 
profit and must adhere to OMB Circular A-133.
    t. Single Audit Requirement. All applicants who have expended 
$500,000 or more in Federal financial assistance in a single year (this 
can be a program or fiscal year) must be audited in accordance with the 
OMB-A133 requirements as established in 24 CFR 84 and 85.
    u. Reimbursement Requirement. All PEI grantees are required to 
reimburse the Federal government for the amount of the grant from all 
settlements, conciliations, and agreements obtained as a result of the 
use of FHIP funds. As an alternative to returning these funds to HUD, 
grantees may choose to use the funds as program income to further fair 
housing activities. However, the use of funds for this purpose must be 
pre-approved in writing by the Government Technical Representative 
assigned to the grant.
2. Other Program Requirements by Initiative
    a. Under the PBFC, applicants must receive a minimum FY 2006 TEP 
score of 95 to be considered for funding.
    b. Under the PEI Subprime Lending Component, applicants must 
demonstrate experience conducting fair-lending enforcement in the 
subprime market. Such experience includes: pending complaints, 
investigations, or litigation alleging discriminatory, subprime lending 
practices; past litigation alleging subprime lending discrimination; 
fair-lending testing of subprime lenders; published reports that 
include analysis the applicant has done on racial and ethnic patterns 
in subprime lending; and any past or pending investigation or 
litigation involving discriminatory, predatory lending. Applicant may 
use this funding to: assist with pending complaints, investigation, or 
litigation alleging discriminatory sub-prime or predatory lending; or 
support new fair lending investigations or litigation of discriminatory 
predatory lending, or other discrimination in the subprime market.
    c. Under the PEI Hurricane Katrina Enforcement Component, 
applicants must undertake fair housing enforcement activities in areas 
impacted by Hurricane Katrina in the states of Louisiana, Mississippi, 
Alabama, or Texas; or areas which received

[[Page 11792]]

displaced persons as a result of Hurricane Katrina.
    d. Under the EOI Fair Housing Awareness Component, applicants must 
have three (3) years of experience and knowledge working with the local 
and State governments, social service and financial agencies within 
each of the states. HUD is particularly interested in applicants that 
present a plan to conduct outreach and address the needs of persons 
displaced as a result of Hurricane Katrina. The EOI plan can cover 
persons displaced within a state or persons that were displaced to a 
state.
    e. Under the EOI Subprime Lending Component, applicants must have 
at least three years experience in planning public conferences at the 
community level.
    3. Performance Measures and Products. For all Initiatives and 
Components. Applicants must submit a Logic Model (Form HUD 96010), 
which provides outputs and outcomes in their application. Applicants 
are also to identify the tools they will use to identify program 
progress against their proposed outputs and outcomes. See reporting 
requirements for reporting using the Logic Model and the frequency of 
the reporting. The form is located in the Instruction Download at 
http://www.Grants.gov/Apply for the FHIP program. The eLogic Model form 
is a Microsoft Excel TM form, which provides a drop down 
list from which you select the responses that best fit your proposed 
program of activities/outputs and outcomes. The form, in HTML fillable 
format and a text Logic Model Master file, is available on HUD's Web 
site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm for 
applicants that do not have access to Microsoft Excel TM. 
Training will be provided by satellite broadcast and webcast. The 
training materials and schedule will be available at the above HUD 
website. Applicants should check the site for dates and times for HUD 
training on the Logic Model.
    For FY 2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment statement. HUD will be 
publishing a separate notice on the ROI concept.
    4. Testing Requirements for PEI applicants. All applicants that 
propose testing must review the FHIP Regulation at 24 CFR Part 125.
    a. Review and Approval of Testing Methodology. If your application 
proposes testing, other than rental housing testing, HUD may require 
copies of the following documents to be reviewed and approved by HUD 
prior to your carrying out the testing activities.
    (1) The testing methodology to be used;
    (2) The training materials to be provided for testing; and
    (3) Other forms, protocols, cover letters, etc., used in the 
conduct of testing and reporting of results.
    If HUD has approved your testing methodology for FY 2004 and FY 
2005, there is no need to submit your testing methodology, unless you 
are revising the methodology that was approved by HUD. If changes are 
being made, or you have not had your testing methodology previously 
approved by HUD, you must submit information in your application.
    b. Retainer Fees. FHIP recipients are under specific restrictions 
regarding establishment of retainer agreements and recovery of legal 
fees from HUD funded cases. Data on fees, settlements and verdicts are 
public record and must be provided to HUD on an annual basis. Either 
the grantee or the individual(s) on whose behalf any action is filed 
cannot waive these provisions. For additional information on these 
provisions, please see http://www.hud.gov/offices/fheo/library/
index.cfm--Guidance.

IV. Application and Submission Information

    A. Requesting an Application Package. This section describes how 
you may obtain application forms and additional information about the 
FHIP program. Copies of the published General Section, FHIP NOFA and 
application forms may be downloaded from the Grants.gov Web site at 
http://www.grants.gov or if you have difficulty accessing the 
information you may receive customer support from Grants.gov by calling 
their help line at (800) 518-GRANTS or sending an e-mail to 
[email protected]. If you do not have internet access and you need to 
obtain a copy of the NOFA you can contact HUD's NOFA Information Center 
toll-free at (800) HUD-8929. Persons with hearing or speech impairments 
may also call toll-free at (800) HUD-2209.
    B. Content and Form of Application Submission. All applicants must 
read and adhere to Initiative-specific information. Applicants are 
encouraged to review the chart entitled ``Summary of Initiatives/
Components.'' To submit documents using the facsimile method, see the 
General Section for specific procedures governing facsimile submission.
    2. For All Applicants. The maximum narrative page requirement is 
ten (10) pages per factor. The narrative pages must be double-spaced. 
This includes all narrative text, titles and headings. (However, you 
may single space footnotes, quotations, references, captions, charts, 
forms, tables, figures and graphs). You are required to use 12-point 
type size. You must respond fully to each factor to obtain maximum 
points. Failure to provide narrative responses to all factors other 
than factor five or omitting requested information will result in less 
than the maximum points available for the given rating factor or sub-
factor. Failure to provide double-spaced, 12-point type size narrative 
responses will result in five points being deducted from your overall 
score (one point per factor).
    C. Submission Dates and Times. Applications must be received and 
validated by http://www.grants.gov no later than 11:59.59 p.m. eastern 
time on the application deadline date to be considered timely filed. 
Grants.gov will reject applications that do not meet the deadline 
requirement. See the General Section for further details.
    The chart below gives a brief description of all items to be 
included within the application:

------------------------------------------------------------------------
  Complete application package                         Required form or
      contains  application        Required content         format
------------------------------------------------------------------------
Cover sheet.....................  (per required       Form SF-424,
                                   form).              available from
                                                       (General
                                                       Section).
Survey for Ensuring Equal         (per required       SF-424 Supplement.
 Opportunity for Applicants.       form).
Budget information..............  (per required       Form SF-424CB and
                                   form).              SF-424CBW).
Disclosure of Lobbying            (per required       SF-LLL, if
 Activities.                       form).              applicable.
Applicant-Recipient Disclosure    (per required       HUD-2880.
 Update Report.                    form).
Certification of Consistency      (per required       HUD-2990.
 with RC/EZ/EC-IIs Strategic       form).
 Plan.
Program Outcome Logic Model.....  (per required       HUD-96010.
                                   form).

[[Page 11793]]

 
Race and Ethnic Data Reporting    (per required       HUD-27061.
 Form.                             form).
America's Affordable Communities  (per required       HUD-27300.
 Initiative.                       form).
Narrative.......................  Described in        Format described
                                   Section IV.B. of    in Section IV.B
                                   this announcement.  of this
                                                       announcement.
Letters from third parties        Third parties'      No specific form
 contributing to cost sharing.     affirmations of     or format.
                                   amounts of their
                                   commitments.
Addendum to Abstract--Correction  Written             No specific form
 of Poor Performance (as           documentation       or format.
 appropriate).                     that performance
                                   issues and
                                   concerns have
                                   been cured.
Project Abstract................  Short summary of    No specific form
                                   project             or format.
                                   activities, areas
                                   of concentration
                                   and persons to be
                                   served.
                                   Preference for
                                   funding.
------------------------------------------------------------------------

    D. Intergovernmental Review. Intergovernmental Review is not 
applicable to this program.
    E. Funding Restrictions. PEI Limitations for Education & Outreach--
There is a 10% limit on the amount of education and outreach related 
activities that can be funded in an enforcement award. If you exceed 
the limit, points will be deducted in the rating process and funds will 
be adjusted to maintain the required limitation.
    F. Other Submission Requirements. Electronic delivery via http://www.grants.gov/Apply is HUD's required method for application 
submission. Applicants interested in applying for FHIP funding must 
submit their applications electronically or request a waiver from the 
Assistant Secretary of FHEO. The request must state the basis for the 
waiver request. HUD's regulation on waivers, found in 24 CFR part 5, 
states that waivers can be granted for cause. Waiver requests must be 
submitted at least 20 days prior to the application deadline date. If 
you receive a waiver of the electronic application submission 
requirement, your application must be received by HUD no later than 
11:59:59 p.m. on the application deadline date. See the General Section 
for detailed instructions on how to submit applications using 
Grants.gov and the requirements and instructions for submitting a 
waiver request.

V. Application Review Information

A. Criteria for PEI and EOI Applications

1. Rating Factor 1: Capacity of Applicant and Relevant Organizational 
Experience (25 Points)
    You must describe staff expertise and your organization's ability 
to complete the proposed activities within the grant period.
    In General. You must describe your staffing plan and the extent to 
which you plan to add staff (employees) or contractors. If your 
application proposes using subcontractors and these subcontractor 
activities amount to more than 10 percent of your total activities, you 
must submit a separate budget for each subcontractor. Failure to 
include a separate budget will result in lower points being assessed to 
your application.
    a. Number and expertise of staff (this includes subcontractors and 
consultants). (5) Points for current FHIP grantees; (10) Points for New 
Applicants. You must complete a summary of staff expertise that will 
show sufficient, qualified staff who will be available to complete the 
proposed activities. This summary should include: Names of staff 
person(s), time each will spend on project, years of fair housing/civil 
rights experience for each person, titles of staff persons, and a brief 
paragraph on each staff member which outlines his or her experience. Do 
not include resumes, or other documents. Those that submit resumes or 
other lengthy documents on staff experience will have points deducted 
from their application based on exceeding the ten page submission 
requirement.
    To receive maximum points, your day-to-day program manager must 
devote a minimum of 75% of his/her time to the project, and this 
individual must be stationed in the metropolitan area where the project 
will be carried out. For day-to-day managers who do not have at least 
75% of their time devoted to the project, no points will be awarded 
under this sub-factor. For example, if the Executive Director is 
responsible for managing the overall program administrative activities, 
the application should reflect the Executive Director's time as 75%. 
You may not designate more than one person to fit this 75% criterion. 
Your application must also clearly identify those persons that are on 
staff at the time this application is submitted and those persons who 
will be assigned at a later date and indicate whether the staff person 
is assigned to work full-time or part-time (if part-time, indicate the 
percentage of time each person is assigned to the project).
    b. Organizational experience. (10) Points for current FHIP 
grantees; (15) Points for new applicants. In responding to this sub-
factor, you, the applicant, must show that your organization has:
    (1) Conducted a past project or projects similar in scope and 
complexity to the project proposed in this application (whether FHIP-
funded or not), or
    (2) Engaged in activities that, although not similar, are readily 
transferable to the proposed project.
    (3) If you are an existing FHIP grantee, you must provide details 
about the progress and outcomes of your previous grant.
    (4) You must provide a listing of all affiliate and/or subsidiary 
organizations, and identify which of these organizations will assist 
you in the development and/or implementation of any portion of your 
proposed FY2006 FHIP funded project. If you do not have any affiliate 
or subsidiaries, you should state this in your application.
    EOI applicants must show that they have engaged in projects that 
are Regional/Local/Community based. Experience will be judged in terms 
of recent, relevant and successful experience of your staff to 
undertake eligible activities. In rating this factor, HUD will consider 
experience within the last three years to be recent, experience 
pertaining to the specific activities to be relevant, and experience 
producing measurable accomplishments to be successful. The more recent 
the experience and the more experience your own staff members who work 
on the project have in successfully conducting and completing similar 
activities, the greater the number of points you will receive for this 
rating factor.
    (a) If you are applying for funding under PEI, you must provide the 
following information when responding to this sub-factor:
    (i) If you propose to conduct testing (other than rental or 
accessibility

[[Page 11794]]

testing), provide a brief narrative that documents that you have 
conducted successful testing in those areas.
    (ii) Discuss your compliance with the requirement to either 
reimburse the Federal government for compensation received from FHIP-
funded enforcement activities or use the compensation as program income 
to further fair housing activities. If you have not reimbursed the 
Federal government or used the funds as program income to further fair 
housing activities, explain why you have not. Also, state whether you 
reported to HUD any likely compensation that may result in such 
reimbursement or use for furthering fair housing. Two (2) points will 
be deducted for this sub-factor if you have not complied with the 
requirement.
    (iii) If you are submitting an application under the PEI Hurricane 
Katrina Enforcement Component, you must show that activities will be 
undertaken in one of the areas impacted by Hurricane Katrina in the 
states of Louisiana, Alabama, Mississippi, or Texas or in areas 
impacted by the displacement of persons as a result of Hurricane 
Katrina.
    (iv) If you are submitting an application under the PEI Subprime 
Lending Component, you must demonstrate experience in conducting fair-
lending enforcement in the subprime market. Such experience includes: 
pending complaints, investigations, or litigation alleging 
discriminatory, subprime lending practices; past litigation alleging 
subprime lending discrimination; fair-lending testing of subprime 
lenders; published reports that include analysis the applicant has done 
on racial patterns in subprime lending; and any past or pending 
investigation or litigation involving discriminatory, predatory 
lending. Applicant may use this funding for: steering to subprime 
loans, providing different terms based on prohibited bases, as well as 
assist with pending complaints, investigation, or litigation alleging 
discriminatory subprime or predatory lending; or support new fair 
lending investigations or litigation of discriminatory predatory 
lending, or other discrimination in the subprime market.
    (v) If you are submitting an application under the EOI Subprime 
Lending Component, you must show that you have the ability to plan 
public events at a regional/local level which educates consumers on 
fair housing, financial literacy, credit management and how to avoid 
high-cost loans and abusive lending practices that violate the Fair 
Housing Act. Applicants must address in their project: (1) abusive 
lending practices and the fair housing implications to minority 
neighborhoods; and (2) legal approaches to confronting abusive lending 
practices, especially those linked to racial targeting and other 
potential violations of applicable fair housing laws. In responding to 
this sub-factor, the applicant must describe the extent to which its 
and/or subcontractor's past activities have resulted in public events 
that have reached and impacted a large number of persons. Applicant 
must also show that it has experience in developing and implementing 
innovative strategies resulting in positive public response.
    c. Performance on past project(s). (10) Points for current FHIP 
grantees; (0) Points for new applicants. HUD will assess your 
organization's past performance in conducting activities relevant to 
your application. For current FHIPs, past performance will be assessed 
based on your most recent performance assessment received from your HUD 
Government Technical Representative (GTR) for the past two (2) complete 
fiscal years (FY 2003 and FY2004).
    This information will be provided to the Technical Evaluation Panel 
(TEP) by HUD staff. Based on past performance, the following points 
will be deducted from your score under this rating sub-factor:
    (1) 10 points out of 10 possible points will be deducted if you 
received a ``fair performance'' assessment;
    (2) 5 points out of 10 possible points will be deducted if you 
received a ``good performance'' assessment; and
    (3) 0 points will be deducted if you received an ``excellent 
performance'' assessment.
2. Rating Factor 2: Need/Distress/Extent of the Problem (20 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed activities to address documented fair housing 
problems in target area(s). You will be evaluated on the information 
that you submit that describes the fair housing need in the geographic 
area you propose to serve, its urgency and how your project is 
responsive to that need. Applicants should document and use the Housing 
Discrimination Study 2000 (HDS2000) sponsored by the Department of 
Housing and Urban Development and conducted by the Urban Institute in 
their applications, if applicable. HDS2000 is the third national 
paired-testing study sponsored by HUD to measure patterns of racial and 
ethnic discrimination in U.S. housing markets.
    a. Documentation of Need. To justify the need for your project, PEI 
and EOI applicants must describe the following:
    (1) The fair housing need, including:
    (a) Geographic area to be served and your proximity and experience 
within the area;
    (b) Populations that will be served--your project must serve all 
persons protected by the Act; and
    (c) The presence of housing discrimination, high segregation 
indices or other evidence of discrimination prohibited by the Act 
within the project area.
    (2) The urgency of the identified need. For example:
    (a) The potential consequences to persons if your application is 
not selected for funding;
    (b) The extent to which other organizations provide the services 
identified in your application;
    (c) Other sources that support the need and urgency for this 
project. (Do not include these sources within your application.) Please 
provide website information where these sources may be found. 
Applicants that provide detailed studies, including detailed 
consolidated plans for their referenced project area will have points 
deducted from this factor based upon the ten page submission 
requirement. For example, make reference to reports, statistics, or 
other data sources that you used that are sound and reliable, including 
but not limited to, HUD or other Federal, State or local government 
reports analyses, relevant economic and/or demographic data including 
those that show segregation, foundation reports and studies, news 
articles, and other information that relate to the identified need. 
Provide the Web site where these reports may be found for reference. 
Chapter V of the Fair Housing Planning Guide, Vol. 1 has other 
suggestions for supporting documentation. You may access the Guide from 
the HUD Web site at http://www.hud.gov./offices/adm/grants/
fundsavail.cfm.
    For all applicants: You must use sound data sources to identify the 
level of need and the urgency in meeting the need and provide Web site 
addresses for each data source (ex. Analysis of Impediments to Fair 
Housing Choice (AI), fair housing studies, etc.) For you to receive 
maximum points for this factor, there must be a direct relationship 
between your proposed activities, the outcomes to be accomplished, and 
the community or communities' fair housing needs, including your 
knowledge of and your proximity to the targeted area, and the purpose 
of the program funding.

[[Page 11795]]

    To the extent possible, the data you use should be specific to the 
area where the proposed activity will be carried out. For example, if 
you propose to test in areas impacted by Hurricane Katrina in the 
states of Louisiana, Mississippi, Alabama or Texas you should document 
the number of displaced persons relocated to those areas and the impact 
of the numbers of displaced persons upon existing fair housing 
services. You should document needs as they apply to the specific 
area(s) where activities will be targeted and your proximity to the 
target area, rather than the entire locality or State. If the data 
presented does not specifically represent your target area, you should 
discuss why the target area was proposed.
    (3) The link between the need and your proposed activities:
    (a) How the proposed activities augment or improve upon on-going 
efforts by public and private agencies, grass-roots faith-based and 
other community-based organizations and other organizations and 
institutions in the target area, and/or
    (b) Why, in light of other on-going efforts, the additional funding 
you are requesting is necessary.
    b. In addition, with respect to Documentation of Need, the 
following apply to specific FHIP Initiatives or Components:
    EOI-Disability Component. Your project must focus on persons with 
disabilities, however, you must serve all persons protected by the Act.
    EOI-Subprime Lending Component. Your project must document and 
describe your understanding of the problem and its pervasiveness and an 
understanding of how to plan public events used to address the need.
    PEI Subprime Lending Component. Your project must document that 
funds were used to assist private fair-lending enforcement efforts to 
address discrimination in the sub-prime mortgage market. Applicant 
should also document the need to: Assist with pending complaints, 
investigation, or litigation alleging discriminatory subprime lending; 
or support new fair lending investigations or litigation of 
discrimination in the subprime market.
3. Rating Factor 3: Soundness of Approach (35 Points)
    You must describe your project in detail, demonstrate how your 
project activities will support HUD's goals, propose suggested 
performance measures/outcomes in support of these goals, and identify 
current baseline conditions and target levels of the performance 
measures that you plan to achieve. Attach a Statement of Work (SOW) and 
budget. Your proposed activities must support HUD's policy priorities 
as referenced in the General Section.
    a. Support of Policy Priorities (8 Points). Describe how your 
proposed project will further and support HUD's policy priorities for 
FY 2006. HUD encourages applicants to undertake specific activities 
that will assist the Department in implementing its policy priorities 
and which will help the Department achieve its goals and objectives in 
FY 2006. HUD will evaluate the extent to which a program will further 
and support HUD's priorities. The quality of the responses provided to 
one or more of HUD's priorities will determine the score an applicant 
can receive. Applicants must describe how each policy priority selected 
will be addressed.
    Applicants that just list a priority will receive no points. Each 
policy priority addressed must discuss the geographic area to be served 
in relation to the project's purpose, the persons to be served and the 
methodology for carrying out these activities. Each policy priority has 
a point value of one point, with the exception of the policy priority 
to remove regulatory barriers to affordable housing which has a point 
value of up to 2 points; and, for EOI applicants only, promoting 
participation by grassroots faith-based and other community-based 
organizations, or partnering with an organization promoting 
participation in grassroots faith-based and other community-based 
organizations, which has a point value of up to 4 points. It is up to 
the applicant to determine which of the policy priorities to address to 
receive the available 8 points. To secure the possible 2 points for 
efforts to remove regulatory barriers to affordable housing, an 
applicant must submit the completed questionnaire (HUD 27300), and 
provide the required documentation. Please see the General Section for 
further information on Removal of Regulatory Barriers to Affordable 
Housing. The questionnaire is part of the electronic application 
package and is also found in the Appendix to the General Section. For 
the full list of each policy priority, please refer to the General 
Section.
    b. Proposed Statement of Work (SOW) and Information Requirements 
(17 Points). The SOW and budget are attachments that will not count 
toward the ten (10) page limit on the narrative response to this 
factor. However, points will be assigned based on the relevance of 
proposed activities to stated needs, attention to implementation steps, 
proposed activities consistent with organizational expertise and 
capacity and accuracy of the SOW and budget.
    Statement of Work--Submit a proposed SOW that comprehensively 
outlines in chronological order the administrative and program 
activities and tasks to be performed during the grant period. Your 
outline should identify all activities and tasks to be performed and by 
whom (e.g., you, a subcontractor, or partner), and the products that 
will be provided to HUD and when. You should also include a schedule of 
your activities and products (with interim implementation steps), staff 
allocation over the term of the project; staff acquisition and 
training; and activities of partners and/or subcontractors. Applicants 
should provide numbers on the projected clients to be served. Do not 
provide ranges or percentages, but a specific number of clients. These 
numbers should represent individuals to be served entirely with HUD 
FHIP funding. For the EOI Fair Housing Awareness Component, HUD 
anticipates that products will be available in at least seven languages 
plus English. The languages will include French, Korean, Laotian, 
Vietnamese, Chinese, Arabic, and Spanish. For the EOI Subprime Lending 
Component, deliverables may include brochures, Public Service 
Announcements (PSAs) for radio in both majority and minority markets 
and posters and other graphic materials. Graphic materials may include 
but are not limited to enlarged reproductions of existing HUD printed 
PSAs and HUD materials. Provide information on media markets coverage 
with specific protected class focus, as well as those with Limited 
English Proficiency and a method for distribution of the finished 
product.
    c. The Budget Form and the Budget Information (10 Points). HUD will 
also assess the soundness of your approach by evaluating the quality, 
thoroughness, and reasonableness of the budget and financial controls 
of your organization, including information on your proposed program 
cost categories. As part of your response, you must prepare a budget 
that is:
    (1) Reasonable in achieving the goals identified in your proposed 
SOW;
    (2) Relate tasks in the SOW to the proposed budget costs;
    (3) Cost-effective, and includes a brief discussion of the extent 
to which your proposed program is cost effective in achieving the 
anticipated results of the proposed activities in the targeted area. 
Applicants seeking funding to conduct activities in an area other than 
the applicant's State or locality must discuss the cost effectiveness 
of where

[[Page 11796]]

the activities will be conducted in relation to the location of the 
organization. HUD will look at the cost effectiveness of your travel to 
and from your location to the targeted area(s), personnel expenses for 
out-stationed personnel, contracts and sub-grantees, and other direct 
costs, which may include relocation expenses, and telecommunications 
expenses. Also, indicate how the proposed project is quantifiable based 
on the needs identified in Rating Factor 2.
    (4) Quantifiable based on the need identified in Factor 2, and
    (5) Justifiable for all cost categories in accordance with the cost 
categories indicated in the HUD-424 CB (see General Section Grant 
Application Detailed Budget). If you are awarded a grant or cooperative 
agreement under FHIP, staff will request that you include your approved 
indirect cost rate as part of your negotiations with HUD. If you do not 
have a Federally approved indirect cost rate and HUD is the cognizant 
agency, HUD will submit a request within 30 days after award to 
establish a rate. For information on indirect cost rates, you can 
review HUD's training on http://www.hud.gov./offices/adm/grants/
fundsavail.cfm.
    (6) Financial Management Capacity. Describe your organization's 
financial management system and your Board's contribution to the 
organization. In addition, discuss your capabilities in handling 
financial resources, dissemination to subcontracting affiliates, and 
maintenance of adequate accounting and internal control procedures.
    (7) Grant Application Detailed Budget Worksheet (HUD-424-CBW). The 
HUD-424-CBW must show the total cost of the project and indicate other 
sources of funds that will be used for the project. While the costs are 
based only on estimates, the budget narrative work plan may include 
information obtained from various vendors, or you may rely on 
historical data. Applicants must round all budget items to the nearest 
dollar.
    A written budget narrative work plan must accompany the proposed 
budget explaining each budget category listed and must explain each 
cost category. Failure to provide a written budget narrative work plan 
will result in 2 points being deducted from your application. It must 
explain each cost category you list. Where there are travel costs for 
subcontractors/consultants, you must show that the combined travel 
costs (per diem rates) are consistent with Federal Travel Regulations 
(41 CFR 301.11) and travel costs for the applicant's subcontractors 
and/or consultants do not exceed the rates and fees charged by local 
subcontractors and consultants. The narrative (which does not count 
toward the ten page limit) must address the Grant Application Detailed 
Budget.
4. Rating Factor 4: Leveraging Resources (5 Points)
    This factor addresses your ability to secure additional resources 
to support your project. Points will be awarded on the basis of the 
percentage of non-FHIP resources you have identified and how firm the 
commitment is for those resources.
    a. Firm Commitment of Leveraging. HUD requires you to secure 
resources from sources other than what is requested under this FHIP 
NOFA. Community resources may include funding or in-kind contributions, 
such as workspace or services or equipment, allocated to the purpose(s) 
of your proposal. Contributions from affiliates, subsidiaries, 
divisions, or employees of the applicant do not qualify as in-kind 
contributions. Resources may be provided by governmental entities 
(including other HUD programs if such costs are allowed by statute), 
public or private non-profit organizations, faith-based organizations, 
for-profit or civic private organizations, or other entities willing to 
work with you. In order to secure points you must establish leveraging 
of resources by identifying sources of contributors who have already 
provided to you letters of firm commitment from the organizations and/
or individuals who will support your project. Each letter of firm 
commitment must:
    (1) Identify the organization and/or individual committing 
resources to the project and identify any affiliation with the 
applicant,
    (2) Identify the sources and amounts of the leveraged resources 
(the total FHIP and non-FHIP amounts must match those in your proposed 
budget submitted under Factor 3), and
    (3) Describe how these resources will be used under your SOW. The 
letter must be signed by the individual or organization official 
legally able to make commitments for the organization. If the resources 
are in-kind or donated goods, the commitment letter must indicate the 
fair market value of those resources and describe how this fair market 
value was determined. (Do not include indirect costs within your in-
kind resources). In-kind matching and leveraging contributions, as well 
as Program Income must comply with 24 CFR 84.23 and 84.24 requirements. 
FHIP funds cannot be used for in-kind or donated services (for example, 
a current staff person on a FHIP-funded project). No points will be 
awarded for general letters of support endorsing the project from 
organizations, including elected officials on the local, State, or 
national levels, and/or individuals in your community. See General 
Section for instructions on how third party documents are to be 
submitted to HUD via the electronic submission process. For PEI and 
EOI, if your project will not be supported by non-FHIP resources, then 
you will not receive any points under this factor. Points will be 
assigned for each Initiative based on the following scale:
    One point will be awarded if less than 5% of the projects total 
costs come from non-FHIP resources.
    Two points will be awarded if between 5% and 10% of the project's 
total costs are from non-FHIP resources.
    Three points will be awarded if between 11% and 20% of the 
project's total costs are from non-FHIP resources.
    Four points will be awarded if between 21% and 30% of the project's 
total costs are from non-FHIP resources.
    Five points will be awarded if at least 31% of the project's total 
costs are from non-FHIP resources.
5. Rating Factor 5: Achieving Results and Program Evaluation (15 
Points)
    a. In evaluating this factor, HUD will assess the extent to which 
you demonstrate how you will measure success or results to be achieved 
that represent the work of your organization as set out in your budget. 
Applicants must select from the list of activities and outcomes 
detailed in the Logic Model for the Initiative applied for and should 
determine from these selections, their specific methods and measures to 
assess progress, evaluate program effectiveness, and identify program 
changes necessary to improve performance. This will ensure that 
performance measures are met and that grantees are establishing 
achievable realistic goals. Applicants who have identified outputs and 
outcome measurements and include means for assessing these 
measurements, tracking and monitoring performance goals and 
achievements against these commitments made in the application, will 
receive higher points than those that do not. To meet this Factor 
requirement, you must submit HUD's Logic Model.
    Instructions and a Microsoft Excel TM form are provided 
in the forms appended to the Instruction Download on www.Grants.gov/
APPLY. Applicants that do not have access to Microsoft Excel 
TM may obtain a copy of the form in HTML fillable format 
along with a

[[Page 11797]]

text format of the Master Logic Model listing, from HUD's Web site at 
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    A narrative response is not required for this factor as all 
applicants must use the Logic Model Form to respond to this Factor. 
Applicants that submit narrative responses rather than use the Logic 
Model Form will receive no points under this subfactor. Applicants 
should also review the Logic Model training which can be found at 
http://www.hud.gov/offices/adm/grants/training/training.cfm.
    b. In evaluating this Factor:
    (1) HUD will review the activities/outputs and outcomes units of 
measurement you selected and in relation to the needs of your intended 
audience or target populations;
    (2) Output. The direct products of the applicant's activities that 
lead to the ultimate achievement of outcomes. Examples of activities 
and outputs for PEI and EOI applicants can be found at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Applicants must select 
one or more activities from the listing of ``Fair Housing Services 
Provided'' that will be undertaken by your organization. Applicants who 
do not select from the list ``Fair Housing Services Provided'' or those 
who wish to add additional services to the list will not receive any 
points under this Factor.
    (3) Outcome. Demonstrate ability to measure outcomes so the major 
outcome is to increase awareness of fair housing laws and enforce the 
fair housing act. Outcomes are benefits provided to all protected class 
members as a result of education and outreach or fair housing 
enforcement activities; and, performance indicators the applicant 
expects to achieve or goals it hopes to meet over the term of the 
proposed grant. The Logic Model has a prepared list of activities, 
outcomes and indicators associated with Fair Housing. Applicants must 
choose from this list of ``Short-Term, Intermediate-Term, or Long-
Term'' outcomes that are provided as part of the FHIP NOFA. Applicants 
who do not select from the list ``Outcomes and Indicators'' will not 
receive any points under this Factor. You should assess progress and 
track performance in meeting the goals and objectives outlined in the 
work plan.
    Accountability can be achieved using specific measurement tools to 
assess the impact of your solutions. Examples include:
     Intake Instrument;
     Pre/Post Tests;
     Customer/Client Satisfaction Survey;
     Follow-up Survey;
     Observational Survey;
     Functioning scale; or
     Self-sufficiency scale.
    For the EOI-Disability Component, you should also demonstrate how 
the activities will assist the Department in implementing the New 
Freedom Initiative (see General Section).

B. Reviews and Selection Process

    1. Rating and Ranking. Although all rating factors are organized 
the same way for all FHIP initiatives, there are differences in 
application requirements and rating criteria, which are indicated 
throughout the Rating Factor instructions. Your application for funding 
will be evaluated competitively against all other applications 
submitted under one of the following Initiatives or Components:
    a. Private Enforcement Initiative (PEI)--
    (1) General Component (PEI-GC);
    (2) Performance Based Funding Component (PBFC);
    (3) Subprime Lending Component (PEI-SL);
    (4) Hurricane Katrina Enforcement Component (PEI-EC).
    b. Education and Outreach Initiative (EOI)--
    (1) General Component (EOI-GC);
    (2) Disability Component (EOI-DC);
    (3) Fair Housing Awareness Component--(EOI-FHAC);
    (4) Subprime Lending Component--(EOI-SL).
    For all initiatives, all eligible applications will be reviewed and 
points awarded based upon:
    1. Narrative responses to the Factors for Award and accompanying 
materials, and
    2. RC/EC/EZ-IIs bonus points, as applicable. Ineligible 
applications will not be ranked. The maximum number of points to be 
awarded for the Rating Factors is 100. See the General Section for 
information on Bonus Points.
    Only applications with a score of seventy-five (75) points or more 
will be considered of sufficient quality for funding. Generally, 
applications of sufficient quality for funding will be selected in rank 
order under each Initiative or Component.
    PBFC applicants will be evaluated competitively against other PBFC 
applicants who apply and have received two years of excellent 
performance reviews for FHIP PEI awards made in any two consecutive 
years from FY 2002 through FY 2004, as well as scoring a 95 on their 
most current performance review. These applicants will then be rated by 
the Technical Evaluation Panel and ranked by score. Only those 
applicants who receive a minimum final score of 95 or above from the 
TEP will be considered for funding under this Component.
    2. Tie Breaking. When two or more applications have the same total 
overall score, the application with the higher score under Rating 
Factor 3 will be ranked higher. If this does not break the tie, the 
application with the higher score under Rating Factor 1will be ranked 
higher. If this does not break the tie, the application requesting the 
lower amount of FHIP funding will be ranked higher. Finally, if this 
does not break the tie, the application with the higher score under 
Rating Factor 2 will be rated higher.
    For the PBFC, the tie breaking provision does not apply.
    3. Achieving Geographic Diversity of Awards. PEI and EOI: HUD 
reserves the right to apply geographic diversity, to ensure that, to 
the extent possible, applications from more States for each Initiative 
or Component are selected for funding. If the Selecting Official 
exercises this discretion, there will be two determinants used: (1) 
Geography and (2) score. Geographic diversity shall be applied to all 
qualified applications (applications of sufficient quality for 
funding--applications that received a score of 75 or more points) in 
each Initiative or Component in which the Selecting Official applies 
geographic diversity. The geographic diversity provision will be 
applied as follows: when there are two or more applications of 
sufficient quality from the same State, the application(s) with the 
lower score(s) will be moved to the end of the qualified queue. The 
applications moved to the end of the qualified queue will retain their 
geographic rank order. If sufficient funds remain, it is possible that 
applications moved to the end of the queue may be selected for award.
    For the PBFC, the geographic diversity provision does not apply.
    4. Adjustments to Funding. As provided in the General Section, HUD 
may approve an application for an amount lower than the amount 
requested, fund only portions of the application, withhold funds after 
approval, reallocate funds among activities and/or require that special 
conditions be added to the grant agreement, in accordance with 24 CFR 
84.14, the requirements of the General Section, or where:
    a. HUD determines the amount requested for one or more eligible 
activities is unreasonable or unnecessary;
    b. An ineligible activity is proposed in an otherwise eligible 
project;
    c. Insufficient amounts remain to fund the full amount requested in 
the

[[Page 11798]]

application, and HUD determines that partial funding is a viable 
option;
    d. The past record of key personnel warrants special conditions; 
or,
    e. Training funds are not reserved for FHIP training.
    5. Reallocation of Funds. If after all applications within funding 
range have been selected or obligations are completed in an Initiative 
and funds remain available, the Selecting Official or designee will 
have the discretion to reallocate leftover funds in rank order among 
Initiatives as follows:
    a. For EOI, any remaining funds from any component will be 
reallocated first within the Initiative; if after reallocating funds 
within the Initiative left over funds remain, they shall be reallocated 
to PEI;
    b. For PEI, any remaining funds from any component will be 
reallocated first within the Initiative, if after reallocating funds 
within the Initiative left over funds remain, they shall be reallocated 
to EOI.

C. Anticipated Announcement and Award Dates

    For planning purposes, anticipate an announcement date of September 
23, 2006 and an award date of September 29, 2006.

VI. Award Administration Information

A. Award Notices

    1. Applicant Notification and Award Procedures.
    a. Notification. No information about the review and award process 
will be available during the period of HUD evaluation, which begins on 
the application deadline date under this NOFA and lasts approximately 
90 days thereafter. However, you will be advised, in writing or by 
telephone, if HUD determines that your application is ineligible or has 
technical deficiencies which may be corrected as described in the 
General Section. HUD will communicate only with persons specifically 
identified in the application on the SF-424. HUD will not provide 
information about the application to third parties such as 
subcontractors.
    b. Negotiations. If you are selected, HUD will require you to 
participate in negotiations to determine the specific terms of your 
cooperative or grant agreement. HUD will follow the negotiation 
procedures described in the General Section. The selection is 
conditional and does not become final until the negotiations between 
the applicant and the Department are successfully concluded and the 
grant or cooperative agreement is signed and executed. HUD will 
negotiate only with the person identified in the application as the 
Director of the organization or if specifically identified in the 
application as the Project Director. HUD will not negotiate with any 
third party (i.e., a subcontractor, etc.). Grantees awarded funding who 
have had a `poor performance' rating in years prior to FY 2003, will be 
required to provide documentation of the agency's improved performance 
status during negotiations. The Grant Officer and Government Technical 
Representative will determine on a case-by-case basis if technical 
assistance or special conditions are required.
    Performance Based Funding Component-Applicants selected for funding 
under the PBFC will be required to submit a SOW that projects the 
agency's activities for a period of three years commensurate with the 
level of funding.
    c. Applicant Debriefing. After awards are announced, applicants may 
receive a debriefing on their application as described in the General 
Section. Materials provided during the debriefing will be the 
applicant's final scores for each rating factor and final evaluator 
comments for each rating factor. Applicants requesting a debriefing 
must send a written request to Annette Corley, Grant Officer, U.S. 
Department of Housing and Urban Development, FHIP/Support Division, 451 
7th Street SW., Room 5224, Washington, DC 20410. HUD will not release 
the names of applicants or their scores to third parties.

B. Administrative and National Policy Requirements

    1. Accessibility Requirements. All activities, facilities, and 
materials funded by this Program must be accessible to persons with 
disabilities (24 CFR 8.2, 8.4, 8.6, and 8.54).
    2. Protected Classes. All FHIP-funded projects must address housing 
discrimination based upon race, color, religion, sex, disability, 
familial status, or national origin.
    3. Environmental Requirements. In accordance with 24 CFR 
50.19(b)(3), (4), (9), (12), and (13) of HUD regulations, activities 
assisted under this program are categorically excluded from the 
requirements of the National Environmental Policy Act and are not 
subject to environmental review under related laws and authorities.
    4. Procurement of Recovered Materials. State agencies (FHAP 
agencies) and agencies of a political subdivision of a State that are 
using assistance under a HUD program NOFA for procurement, and any 
person contracting with such an agency with respect to work performed 
under an assisted contract, must comply with the requirements of 
Section 6002 of the Solid Waste Disposal Act, as amended by the 
Resource Conservation and Recovery Act. See General Section for 
details.
    5. Product Information. Press releases and any other product 
intended to be disseminated to the public must be submitted to the 
Government Technical Representative (GTR) two weeks before release for 
approval and acceptance.
    6. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women Owned Businesses. (See General 
Section).
    7. Payment Contingent on Completion. Payment of FHIP funds is made 
on a reimbursement basis. Payments are contingent on the satisfactory 
and timely completion of your project activities and products as 
reflected in your grant or cooperative agreement. Requests for funds 
must be accompanied by financial and progress reports.
    8. Copyright Materials. You may copyright any work that is eligible 
for copyright protection subject to HUD's right to reproduce, publish, 
or otherwise use your work for Federal purposes, and to authorize 
others to do so as required in 24 CFR 84.36.
    9. Complaints Against Awardees. Each FHIP award is overseen by a 
HUD Grant Officer (See http://www.hud.gov for list of Grant Officers 
per region). Complaints from the public against FHIP grantees should be 
forwarded to the Grant Officer. The Grant Officer's name and contact 
information is provided in the grant agreement. If, after notice and 
consideration of relevant information, the Grant Officer concludes that 
there has been inappropriate conduct, such as a violation of FHIP 
program requirements, terms or conditions of the grant, or any other 
applicable statute, regulation or other requirement, HUD will take 
appropriate action in accordance with 24 CFR 84.62. Such action may 
include: written reprimand; consideration of past performance in 
awarding future FHIP applications; repayment to HUD of funds received 
under the grant; or temporary or permanent denial of participation in 
the FHIP in accordance with 24 CFR part 24.
    10. Double Payments. If you are awarded funds under this NOFA, you 
(and any subcontractor or consultant) may not charge or claim credit 
for the activities performed under this project under any other 
Federally assisted project.
    11. Performance Sanctions. A grantee or subcontractor failing to 
comply with

[[Page 11799]]

the requirements set forth in its grant agreement will be liable for 
such sanctions as may be authorized by law, including repayment of 
improperly used funds, termination of further participation in the 
FHIP, and denial of further participation in programs of HUD or any 
Federal agency.

C. Reporting

    1. 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 (and instructions for its use), found on http://www.HUDclips.org, a comparable program form, or a comparable electronic 
data system for this purpose. Quarterly and as your project ends, you 
must report meaningful data derived from client feedback on how they 
benefited from your project's activities.
    2. Listed below is a sample-reporting document of activities and 
tasks to be performed by a FHIP Grantee.

                                            Administrative Activities
----------------------------------------------------------------------------------------------------------------
             Activities                         Tasks                  Submitted by            Submitted to
----------------------------------------------------------------------------------------------------------------
1. Complete HUD-22081 Race and       ...........................  45 Days...............  GTR/GTM
 Ethnic Data Reporting Form.
2. Complete HUD-28807 Disclosure     Submit Disclosure            When changes occur....  GTR/GTM
 Statements.                          Statement. If no changes
                                      occur, submit statement of
                                      no change with final
                                      report.
3. Complete SF-269A Financial        Submit SF-269A and Copy of   Quarterly.............  GTR/GTM
 Status Report and Written            Written Report.
 Quarterly Status Reports on All
 Activities.
4. Voucher for Payment.............  Submit payment request to    Per Payment Schedule..  GTR/GTM
                                      LOCCS.
5. Complete Listing of Current or    Submit listing for           45 Days and At end of   GTR/GTM
 Pending Grants/Contracts/Other       recipient and any            Grant.
 Financial Agreements.                contractors.
6. Prepare and Submit Draft of       Submit Draft of Report.      One month before end    GTR/GTM
 Final Report, including HUD 96010.   Report your eLogic Model     of grant term.
                                      Reporting your short- and
                                      intermediate term outputs
                                      and outcomes as contained
                                      in the eLogic Model
                                      submitted and approved in
                                      your grant agreement. Your
                                      report and eLogic Model
                                      should identify results
                                      ands benefits to date of
                                      the work accomplished
                                      under the FHIP award. In
                                      addition, the eLogic Model
                                      should include an
                                      attachment that addresses
                                      the management questions
                                      applicable to your work
                                      program. Complaint and
                                      testing activities should
                                      provide data on complaints
                                      received and tests
                                      conducted by basis,
                                      issues, and outcomes. This
                                      should include number of
                                      credible, legitimate
                                      complaints filed with HUD,
                                      a State or local Fair
                                      Housing Agency, Department
                                      of Justice or private
                                      litigator; and types of
                                      relief/results.
7. Complete Final Report and         Submit a copy of the Final   Within 90 days after    GTR/GTM
 Provide Copies of All Final          Report, including a final    end of grant term.
 Products Not Previously Submitted.   Logic Model with all
                                      outputs and outcomes
                                      identified, and management
                                      questions responded to.
                                      Submit all Final Products
                                      not previously submitted
                                      to GTR and GTM.
8. Submit 2 copies of Final Report   Submit detailed description  Within 90 days after    GTR/GTM
 and all final program products       of items submitted to GTR    end of grant term.
 produced under the Grant (with       and GTM.
 diskette, where feasible) to HUD.
----------------------------------------------------------------------------------------------------------------

VII. Agency Contacts

    You may contact Myron P. Newry or Denise L. Brooks, of the Office 
of Fair Housing and Equal Opportunity's FHIP Support Division, at 202-
708-0800 (this is not a toll-free number). Persons with hearing or 
speech impairments may contact the Division by calling 1-800-290-1617 
(this is a toll-free number).

VIII. Other Information

    1. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2529-0033. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to a collection of 
information unless the collection displays a currently valid OMB 
control number. Public reporting burdens for the collection of 
information is estimated to average 100 hours per annum per respondent 
for the application and grant administration. This includes the time 
for collecting, reviewing, and reporting the data for the application, 
semi-annual reports and final report. The information will be used for 
grantee selection and monitoring the administration of funds. Response 
to this request for information is required in order to receive the 
benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11800]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.011


[[Page 11801]]



Housing Counseling Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Single Family Housing.
    B. Funding Opportunity Title: Housing Counseling Program.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number is: FR-
5030-N-03. The OMB Approval number is: 2502-0261.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.169 
Housing Counseling Assistance Program.
    F. Dates: The application deadline date is May 23, 2006. Please see 
the General Section for application submission and timely receipt 
procedures.
    G. Available Funds: Approximately $39.08 million is made available 
for eligible applicants under this program NOFA.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. This program supports the delivery of a 
wide variety of housing counseling services to homebuyers, homeowners, 
low-to moderate-income renters, and the homeless. The primary 
objectives of the program are to expand homeownership opportunities and 
improve access to affordable housing. Counselors provide guidance and 
advice to help families and individuals improve their housing 
conditions and meet the responsibilities of tenancy and homeownership. 
Counselors also help borrowers avoid inflated appraisals, unreasonably 
high interest rates, unaffordable repayment terms, and other conditions 
that can result in a loss of equity, increased debt, default, and 
eventually foreclosure.
    Applicants funded through this program may also provide Home Equity 
Conversion Mortgage (HECM) counseling to elderly homeowners who seek to 
convert equity in their homes into income that can be used to pay for 
home improvements, medical costs, living expenses, or other expenses.
    B. Grant Applicant Categories. HUD will award a single 
comprehensive grant to qualified applicants through one of three 
categories: (1) Local Housing Counseling Agencies (LHCAs); (2) National 
and Regional Intermediaries (Intermediaries); and (3) State Housing 
Finance Agencies (SHFAs).
    Supplemental funding is available to qualified intermediaries for 
counseling and educational activities in conjunction with HUD's Home 
Equity Conversion Mortgage (HECM) Program.
    C. Authority. HUD's Housing Counseling Program is authorized by 
Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x).
    The Home Equity Conversion Mortgage (HECM) Program is authorized by 
section 255 of the National Housing Act (12 U.S.C. 1715z-20).

II. Award Information

    A. Amount Allocated. Of the approximately $41.58 million 
appropriated for housing counseling in FY 2006 under the Department of 
Housing and Urban Development Appropriations Act, 2006 (Pub. L. 109-
115; approved Nov. 30, 2005), approximately $39.08 million is available 
for eligible applicants under this NOFA. Specifically, approximately 
$36.08 million is available for comprehensive counseling, and $3.0 
million is available for HECM counseling.
    B. Specific Allocations. Funding is allocated to each Homeownership 
Center (HOC), regional HUD offices that oversee the Housing Counseling 
Program in their jurisdiction, by a formula that incorporates first-
time homebuyer rates, default rates, HECM endorsements, past 
performance by agencies in the jurisdiction, and minority homebuyers.

------------------------------------------------------------------------
                                                          Total amount
       Applicant categories          Who is eligible        available
------------------------------------------------------------------------
Category 1--LHCAs................  HUD-approved Local        $14,071,200
                                    Housing Counseling
                                    Agencies.
Category 2--Intermediaries.......  HUD-approved               22,844,000
                                    National and
                                    Regional
                                    Intermediaries.
Category 3--SHFAs................  State Housing               2,164,800
                                    Finance Agencies.
------------------------------------------------------------------------

    1. Category 1--Local Housing Counseling Agencies (LHCAs). 
Approximately $14,071,200 is available from HUD to directly fund HUD-
approved LHCAs. A LHCA can only request funding for its main office and 
branches located in the same state as the main office and/or located in 
one other contiguous state.
    Allocations for Category 1 by HOC are as follows: Atlanta 
$4,002,747, Denver $3,830,864, Philadelphia $3,870,451, and Santa Ana 
$2,367,138.
    2. Category 2--Intermediaries. Approximately $22,844,000 is 
available from HUD to directly fund HUD-approved Intermediaries, 
including $19,844,000 for comprehensive counseling and $3.0 million for 
HECM counseling.
    3. Category 3--State Housing Finance Agencies (SHFAs). 
Approximately $2,164,800 is available to fund SHFAs that provide 
housing counseling services directly or serve as intermediaries to 
Affiliates who offer housing counseling services. Allocations for 
Category 3 by HOC are as follows: Atlanta $615,886, Denver $589,259, 
Philadelphia $595,536, and Santa Ana $364,119.
    C. Individual Awards.
    1. Category 1. No individual LHCA may be awarded more than 
$200,000. HUD anticipates that the average total award for LHCAs will 
be approximately $45,000.
    2. Category 2. Awards for individual HUD-approved intermediaries 
may not exceed $5.5 million, which includes any HECM supplemental 
funding. The limit for Comprehensive Counseling is $2.5 million and the 
limit for HECM counseling is $3.0 million. HUD anticipates that the 
average total award for Intermediaries will be $1.3 million.
    3. Category 3. No individual SHFA may be awarded more than 
$450,000. HUD anticipates that the average total award for SHFAs will 
be approximately $145,000.
    D. Grant Period. Funds awarded shall be available for a period of 
12 calendar months.
    E. Award Instrument. HUD will use a Grant Agreement. All Housing 
Counseling Program awards will be made on a cost reimbursement basis.

III. Eligibility Information

A. Definitions

    1. Affiliate. An affiliate is a separately incorporated or 
organized housing counseling agency connected with an intermediary or 
SHFA for the purposes of its housing counseling program. To be eligible 
for a sub-grant an affiliate must be: (1) Duly organized and existing 
as a nonprofit, (2) in good standing under the laws of the state of its 
organization, and (3) authorized to do business in the states where it 
proposes to provide housing counseling services.

[[Page 11802]]

    2. Applicant. ``Applicant'' refers to a HUD-approved housing 
counseling agency or SHFA applying for a Housing Counseling grant from 
HUD through this NOFA. The term ``Applicant'' includes the agency's 
branch or branch offices identified in its application.
    3. Branch. ``Branch'' or ``Branch Office'' refers to an 
organizational and subordinate unit of an LHCA or Intermediary not 
separately incorporated or organized. A Branch or Branch Office must be 
in good standing under the laws of the state where it is authorized to 
do business and where it proposes to provide housing counseling 
services. A Branch or Branch Office cannot be an applicant, affiliate 
or sub-grantee.
    4. Grantee. ``Grantee'' refers to the HUD-approved housing 
counseling agencies or SHFAs that receive housing counseling funds from 
HUD through this NOFA. The term ``Grantee'' includes the agency's 
branch or branch offices identified in its application.
    5. HUD HECM Network Counselor. A ``HUD HECM Network Counselor'' is 
a housing counselor that has passed the HECM exam administered by HUD 
and/or its agent, and is approved by HUD to provide HECM counseling 
nationally by telephone.
    6. Intermediary. ``Intermediary'' refers to a HUD-approved national 
or regional organization that provides housing counseling services 
through its branches or affiliates.
    7. Local Housing Counseling Agency (LHCA). ``LHCA'' refers to a 
HUD-approved Local Housing Counseling Agency. LHCAs must be approved by 
one of HUD's four HOCs. Affiliates of HUD-approved Housing Counseling 
intermediaries are not HUD-approved LHCAs by virtue of their 
affiliation with the intermediary. They are, however, eligible to 
individually apply for HUD approval as an LHCA.
    8. State Housing Finance Agency (SHFA). For the purpose of this 
NOFA, a ``SHFA'' is the unique public body, agency, or instrumentality 
created by a specific act of a state legislature and empowered to 
finance activities designed to provide housing and related facilities 
and services, for example through land acquisition, construction or 
rehabilitation, throughout a state. The term state includes the fifty 
states, Puerto Rico, the District of Columbia, Guam, the Commonwealth 
of the Northern Mariana Islands, American Samoa, and the U.S. Virgin 
Islands.
    9. Sub-grantee. ``Sub-grantee'' refers to an organization to which 
the grantee awards a sub-grant, and which is accountable to the grantee 
for the use of the funds provided. A Sub-grantee may be separately 
incorporated or organized, but connected with an intermediary or SHFA 
for purposes of this NOFA.
    All Sub-grantees must be identified in the grantee's application. 
Under certain conditions, grantees may amend their Sub-grantee list 
after awards are made.

B. Eligible Applicants

    Eligible applicants include: HUD-approved Local Housing Counseling 
Agencies (LHCAs); HUD-approved national and regional intermediaries 
(Intermediaries); and State Housing Finance Agencies (SHFAs).

C. Cost Sharing or Matching

    No specific ratio is required. However, in order to receive points 
under Rating Factor 4, applicants are required to demonstrate the 
commitment of other private and public sources of funding to supplement 
HUD funding for the applicant's counseling program. HUD does not intend 
for the Housing Counseling grants to cover all costs incurred by an 
applicant.

D. Eligible Activities for Awards Under All Applicant Categories

    Grantees and sub-grantees will only be reimbursed for the 
applicable activities outlined in this Section.
    1. Individual counseling or group education/classes regarding the 
following topics:
    a. Pre-Purchase/Homebuying. This includes: evaluating mortgagor 
readiness; search assistance/mobility; fair housing, including how to 
recognize discrimination; budgeting for mortgage payments; money 
management (does not include administration of debt management plans 
whereby an organization pays bills on behalf of a client); selecting a 
real estate agent, and home inspection. This also may include guidance 
on: alternative sources of mortgage credit; how to apply for special 
programs available to potential homebuyers; how to identify and avoid 
predatory lending practices; locating housing that provides universal 
design and visitability; how to purchase a home using the Section 8 
Homeownership Voucher Program, and referrals to community services and 
regulatory agencies.
    Applicants that provide homebuyer education must also offer 
individual counseling that complements the group sessions.
    b. Resolving or Preventing Mortgage Delinquency or Default. This 
includes: restructuring debt, obtaining re-certification for mortgage 
subsidy, establishing reinstatement plans, seeking loan forbearance, 
and managing household finances. This can also include helping clients 
affected by predatory lending, foreclosure prevention strategies, 
explaining the foreclosure process, providing referrals to other 
sources, and assisting clients with locating alternative housing, or 
pursuing loss mitigation strategies.
    c. Non-Delinquency Post-Purchase, including Improving Mortgage 
Terms and Home Improvement. This includes information and advice on 
finding favorable mortgage loan terms, personal money management, and 
relations with lenders. It also includes: home improvement and 
rehabilitation; property maintenance; loan and grant options; the loan 
or grant application processes; what housing codes and housing 
enforcement procedures apply for the intended activity; accessibility 
codes and how to design features to provide accessibility for persons 
with disabilities; non-discriminatory lending and funding for persons 
who modify their dwellings to accommodate disabilities; visitability 
and universal design; how to specify and bid construction work; how to 
enter into construction contracts; and how to manage construction 
contracts, including actions to address the non-performance of 
contractors. Agencies that provide post-purchase education classes must 
also offer individual counseling to complement group sessions.
    d. Locating, Securing, or Maintaining Residence in Rental Housing. 
This refers to renter-related topics, including: helping clients obtain 
and utilize rent subsidies; pre-rental search assistance/mobility 
counseling; budgeting for rent payments; educating clients on 
landlords' and renters' rights; explaining the eviction process; 
ensuring clients understand their rights when faced with displacement; 
explaining the responsibility of the entity causing displacement; and 
providing assistance with locating alternate housing.
    e. Shelter or Services for the Homeless. Includes referrals to 
social, community, and homeless services such as emergency shelter or 
transitional housing.
    2. HECM Counseling--This includes providing the statutorily-
required counseling to individuals/families that may be eligible for, 
or are interested in obtaining, an FHA-insured Home Equity Conversion 
Mortgage (HECM). This counseling assists elderly homeowners who seek to 
convert equity in their homes into income that can be used to pay for 
home improvements, medical costs, living expenses, or other expenses.

[[Page 11803]]

    3. Marketing and Outreach Initiatives. This includes providing 
general information and materials about housing opportunities and 
issues, conducting informational campaigns, advocating with lenders for 
non-traditional lending standards, and raising awareness about critical 
housing topics, such as predatory lending or fair housing issues. 
(Note: affirmative fair housing outreach should be directed at those 
populations least likely to seek counseling services. To do so, it may 
be necessary to broaden the target areas or provide translation and 
interpretive services in languages other than English in order to reach 
a greater variety of racial and ethnic minorities.)
    4. Training to increase the capacity of housing counselors and 
program managers.
    5. Computer equipment/systems with the objective of improving the 
quality of counseling and education services available.
    6. Administrative Costs. For intermediaries and SHFAs, 
administrative costs associated with managing a network of housing 
counseling agencies and providing technical assistance.

E. Threshold Requirements

    Applications that do not meet all of the following Threshold 
Requirements are not eligible to receive an award from HUD.
    1. Applicants, and Sub-grantees, must meet the Threshold 
Requirements in the General Section.
    2. Minimum grant request. Applications must contain a request for 
comprehensive funds of not less than $20,000 from LHCAs, not less than 
$50,000 from SHFAs and not less than $200,000 from Intermediaries. 
Applications for lesser amounts will not be considered. Intermediaries 
must request a minimum of $500,000 for HECM supplemental funding. HUD 
will consider the amount of the comprehensive counseling grant being 
requested to be the value entered into box 15a on form SF-424. For 
intermediaries also requesting HECM supplemental funding, box 15a of 
Form SF-424 should reflect the total of the comprehensive request and 
the HECM supplemental request. For these intermediaries requesting 
both, the narrative response to Factor 3 must make clear the exact 
comprehensive and supplemental amounts being requested.
    3. Only HUD-approved Housing Counseling Agencies and SHFAs may 
apply. Applicants must be currently approved by HUD as an LHCA or as a 
housing counseling intermediary, and have secured HUD approval as a 
housing counseling agency by the publication date of this Housing 
Counseling Program NOFA. SHFAs are not required to be HUD-approved, but 
must meet the eligibility requirements listed in this NOFA.
    4. Applicants Requesting Supplemental HECM Funding. No separate 
application is needed to apply for supplemental funding. However, 
applicants requesting supplemental HECM funding must meet the following 
requirements:
    a. Request the supplemental funding by identifying in box 15a of 
Form SF-424 the total of the comprehensive request and the HECM 
supplemental request, and making clear in the narrative response to 
Factor 3 the exact comprehensive and supplemental amounts being 
requested;
    b. Identify HECM-related needs in the target community in its 
response to Rating Factor 2;
    c. Respond to all HECM-related requests for information throughout 
the NOFA;
    d. Include counseling and other related activities targeted at HECM 
clients over and above the proposed comprehensive counseling activities 
listed in response to the Rating Factors; and
    e. Indicate in the Rating Factors how many individuals will be 
served specifically with the requested supplemental funding for HECM 
counseling in addition to those served under the comprehensive 
counseling award. Be sure to clearly identify the total number 
projected to be served, the activities to be provided, and the output 
and outcome goals to be achieved with the supplemental funding.
    5. Recipients of Previous Housing Counseling Grants. Applicants 
that received a HUD Housing Counseling grant or grants through the 
FY2004 HUD Housing Counseling NOFA, and did not receive an extension 
approved by HUD, must have drawn-down at least 70 percent of award 
monies by December 31, 2005. Exceptions may be made for applicants that 
adequately demonstrate that performance projections for the period were 
exceeded with greater cost efficiency than originally proposed.

F. Other Program Requirements

    1. To receive a grant or subgrant under this Housing Counseling 
NOFA, all applicants and subgrantees (except SHFAs) must be:
    a. In good standing under the laws of the state of their 
organization; and
    b. Authorized to do business in the states where they propose to 
provide housing counseling services.
    c. All grantees and sub-grantees must make counseling offices and 
services accessible to persons with a wide range of disabilities and 
help persons locate suitable housing in locations throughout the 
applicant's community, target area, or metropolitan area, as defined by 
the applicant.
    2. Limits on Applications
    a. HUD-approved LHCAs. HUD-approved LHCAs may apply for and 
receive: one grant under Applicant Category 1; or one sub-grant from an 
intermediary or SHFA under Applicant Category 2 or 3, but not both. The 
only exception to this rule is that HUD-approved LHCAs with one or more 
HUD HECM Network Counselors may receive a sub-grant or be reimbursed 
exclusively for HECM counseling activities from a HUD-approved 
intermediary administering the HECM supplemental funds made available 
through this NOFA.
    Funded LHCAs may not make sub-grants to other HUD-approved LHCAs or 
non-HUD-approved entities.
    b. HUD-approved Intermediaries. HUD approved intermediaries may 
only apply for a grant under Applicant Category 2. HUD-approved 
intermediaries are also eligible for supplemental funding for HECM 
counseling.
    c. SHFAs. SHFAs may only apply for grants under Applicant Category 
3 for comprehensive counseling funds.
    3. Sub-grantees of Intermediaries and SHFAs.
    a. Sub-grantees of intermediaries and SHFAs are not required to be 
HUD-approved, although HUD-approved LHCAs may apply to an intermediary 
or SHFA as a sub-grantee.
    b. Intermediaries and SHFAs that award sub-grants to counseling 
agencies that are not HUD-approved must assure that the sub-grantee 
organizations meet or exceed HUD's approval standards, listed in 
Section III.C.4.c, Program Requirements.
    c. Sub-grantees must also be in compliance with all civil rights 
threshold requirements. Intermediaries that do not ensure their sub-
grantee's compliance with HUD standards may be prohibited from 
participating in the Housing Counseling Program. HUD will monitor sub-
grantees.
    d. To be eligible for funding under Categories 2 or 3, Sub-grantees 
or branches must not have directly applied for or received a grant 
under Category 1 of this NOFA, or applied for or received a sub-grant 
or funding from another intermediary or SHFA under Category 2 or 3 of 
this NOFA. Sub-grantees may apply for and receive funding from only one 
intermediary or SHFA under

[[Page 11804]]

Category 2 or 3, but not both. The only exception to this rule is that 
sub-grantees that have one or more HUD HECM Network Counselors that 
receive a sub-grant from an intermediary or SHFA under Category 2 or 3 
may also receive a sub-grant or be reimbursed exclusively for HECM 
counseling activities, from a HUD-approved intermediary administering 
the HECM supplemental funds made available through this NOFA.
    e. Intermediaries and SHFAs that make sub-grants must execute sub-
grant agreements with sub-grantees that clearly delineate the mutual 
responsibilities for program management, including appropriate time 
frames for reporting results to HUD. Intermediaries and SHFAs have wide 
discretion to decide how to allocate their HUD Housing Counseling 
funding among sub-grantees, with the understanding that a written 
record must be kept documenting and justifying funding decisions. This 
record must be made available to sub-grantees and to HUD.
    4. List of HUD-approved Housing Counseling Agencies. Pursuant to 
section 106(C)(5) of the Housing and Urban Development Act of 1968, HUD 
maintains a list of all HUD-approved and HUD-funded counseling 
agencies, including contact information that interested persons can 
access. All HUD-approved LHCAs and their branches, and all sub-grantees 
and branches that receive funding under Applicant Categories 2 and 3 of 
this NOFA will be placed on this list and must accept subsequent 
referrals, or when they do not provide the services sought, refer the 
person to another organization in the area that does provide the 
services.
    5. Non-Discrimination Requirement.
    a. Grant recipients and sub-grantees are prohibited from 
discriminating on behalf of or against any segment of the population in 
the provision of services or in outreach.
    b. Organizations funded under this program may not engage in 
inherently religious activities, such as worship, religious 
instruction, or proselytization, as part of the programs or services 
funded under this program. If an organization conducts such activities, 
these activities must be offered separately, in time or location, from 
the programs or services funded under this part, and participation must 
be voluntary for the HUD-funded programs or services.
    6. Indirect Cost Rate. Grantees that plan to use grant funds to 
cover direct costs only are not required to provide an indirect cost 
rate. However, Grantees that plan to use grant funds to cover any 
indirect costs must submit their approved indirect cost rate 
established by the cognizant federal agency. If the grantee does not 
have an established indirect cost rate, it will be required to develop 
and submit an indirect cost proposal to HUD, or the cognizant federal 
agency as applicable, for determination of an indirect cost rate that 
will govern the award. Applicants that do not have a previously 
established indirect cost rate with a federal agency shall submit an 
initial indirect cost rate proposal immediately after the applicant is 
advised that it will be offered a grant and, in no event, later than 
three months after the start date of the grant. OMB Circular A-122 
established the requirements to determine allowable direct and indirect 
costs and the preparation of indirect cost proposals, and can be found 
at http://www.whitehouse.gov/omb. Applicants can review Indirect Cost 
Training on http://www.hud.gov at: http://www.hud.gov/offices/adm/grants/training/training.cfm.
    7. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Section 3 does not apply to Housing Counseling Grants.
    8. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Woman-Owned Businesses. See the General 
Section for information on this topic.
    9. Subcontracting. Grantees and sub-grantees must deliver all of 
the counseling activities set forth in the applicant's work plan 
provided in Factor 3 of this NOFA. Subcontracting with other entities 
is permitted only in geographical areas where no HUD-approved housing 
counseling agency exists; however, the subcontractor must meet or 
exceed the standards for a HUD approved agency.
    10. Conflicts of Interest. See the General Section. In addition, a 
grantee or sub-grantee that is using grant funds to pay a subcontractor 
for housing counseling services pursuant to a housing counseling sub-
agreement is prohibited from having a controlling interest in that 
subcontractor or vice versa. In other words, a grantee or sub-grantee 
cannot use grant funds to pay for housing counseling services by a 
subcontractor, if the subcontractor is partially or fully-controlled by 
the grantee or sub-grantee, or affiliate or vice versa.
    11. Accessible Technology. See the General Section.
    12. Participation in HUD Sponsored Program Evaluation. See the 
General Section.

IV. Application and Submission Information

    A. Receiving an Application Package. Applicants may download the 
Instructions to the application found on the Grants.gov Web site at 
www.Grants.gov. The instructions contain the General Section and 
Program Section of the published NOFA as well as forms that you must 
complete and attach as a zip file to your application submission. If 
you have difficulty accessing the information you may call the 
Grants.gov Support desk toll free 800-518-GRANTS or e-mail your 
questions to Grants.gov">Support@Grants.gov.
    B. Content and Form of Application Submission. Please be sure to 
read the General Section for application deadline and timely receipt 
requirements as HUD is using electronic application submission via 
www.Grants.gov. In addition to the instructions in the General Section 
follow the instructions below:
    1. Size Limitations and Format for Narrative Statements. Applicants 
must be as specific and direct as possible. For LHCAs, the narrative 
portion (responses to all factors) must be limited to 50 double-spaced, 
12-point font, single-sided pages. Intermediaries and SHFAs are limited 
to a total of 100 double-spaced, 12-point font, single-sided pages for 
the narrative portion. Pages in excess of the size limit will not be 
read. Number the pages of the narrative statements and include a header 
that includes the applicant's name and the Rating Factor number and 
title. Within each narrative, clearly identify each sub-factor 
immediately above the response for that sub-factor.
    2. Application Checklist. The Application Checklist indicates 
forms, information, certifications and assurances that apply to this 
NOFA.

Housing Counseling NOFA Application Checklist

    a. SF-424, Application for Federal Assistance.
    b. SF-424 Supplement--Survey on Ensuring Equal Opportunity for 
Applicants (optional).
    c. HUD 424 CB, Grant Application Detailed Budget.
    d. SF-LLL, Disclosure of Lobbying Activities (if applicable).
    e. HUD-27300, Questionnaire for HUD's Initiative on Removal of 
Regulatory Barriers (optional regarding eligibility, but mandatory to 
receive credit in Factor 2 for the Regulatory Barriers policy 
priority).
    f. HUD-2880, Applicant/Recipient Disclosure/Update Report.
    g. HUD-2990, Certification of Consistency with the RC/EZ/EC-II

[[Page 11805]]

Strategic Plan (LHCAs only, if applicable).
    h. HUD-2991, Certification of Consistency with the Consolidated 
Plan (if applicable).
    i. HUD-2994, You Are Our Client Grant Applicant Survey (optional).
    j. HUD-96010, Program Outcome Logic Model.
    k. HUD-96011 Facsimile Transmittal Cover Page (to be used to 
transmit third party documents as part of your electronic application).
    l. HUD-9902, Housing Counseling Agency Fiscal Year Activity Report 
(only required for Applicants who did not electronically submit to HUD 
a form HUD-9902 for the period October 1, 2004 through September 30, 
2005, for example, applicants that received approval as a HUD housing 
counseling agency after September 30, 2005.
    m. SHFA Statutory Authority. SHFAs must submit evidence of their 
statutory authority to operate as a SHFA, as defined in this NOFA, and 
must submit evidence of their authority to apply for funds and 
subsequently use any funds awarded. Applicants should verify that their 
agency profile information is accurately represented in HUD's Housing 
Counseling System (HCS) and validate the information prior to 
submitting the grant application.
    n. List of all offices. Intermediaries must provide a list of the 
states in which they maintain offices, including the central office and 
all affiliates or branch offices. Provide this information for all 
affiliates and branch offices, not just the ones the applicant proposes 
to fund through this grant. Indicate with an asterisk or other notation 
those that will be funded through this grant and the amount, if known.
    o. Organization Description. Applicants must provide a brief 
description, no more than 225 words, of their organizational history 
and proposed grant activities, as they would like them to appear in the 
press release issued by HUD in the event that the applicant is funded 
through this NOFA.
    p. Narrative statements as required in this NOFA.
    C. Submission Dates and Times. Application Deadline Date and Proof 
of Timely Submission. The application deadline date is May 23, 2006. 
Please be sure to read the General Section for timely submission and 
receipt. Failure to follow the submission requirements and procedures 
may affect your ability to receive an award.
    D. Intergovernmental Review. The Housing Counseling Program is not 
subject to Intergovernmental Review.
    E. Funding Restrictions.
    1. Funding is limited to the eligible activities described in 
Section III.D of this NOFA.
    2. Pre-award Costs. Grantees may incur pre-award costs not more 
than 90 calendar days prior to the effective date of the grant 
agreement and only with prior approval from HUD. All pre-award costs 
are incurred at the applicant's risk and HUD has no obligation to 
reimburse such costs if the award is inadequate to cover such costs or 
the award offer is withdrawn because of the applicant's failure to 
satisfy the requirements of this NOFA.
    F. Other Submission Requirements. Applications must be submitted 
via the Grants.gov Web site at http://www.grants.gov/Apply by no later 
than the established deadline date and time. See the General Section 
for further information.

V. Application Review Information

    A. Criteria. The Factors for Award, and maximum points for each 
factor, are outlined below. These factors will be used to evaluate all 
applications. The maximum number of points for each applicant is 102 
for LHCAs and 100 for all other applicants.
    1. Bonus Points--``RC/EZ/EC-II.'' ONLY LHCAs are eligible for 2 
bonus points. See the General Section for information regarding ``RC/
EZ/EC-II'' bonus points.
    2. Additional Information. HUD may rely on information from 
performance reports, financial status information, monitoring reports, 
audit reports, and other information available to HUD to make score 
determinations to any relevant Rating Factor.
    3. Responses to Factors for Award. Responses to the following 
rating factors should provide HUD with detailed quantitative and 
qualitative information and relevant examples regarding the housing 
counseling work of the organization. The Rating Factors contain 
requests for additional information from applicants interested in 
supplemental HECM funding.
    In responses to the various factors and sub-factors, intermediaries 
and SHFAs should not submit a separate response for each proposed sub-
grantee and branch, but should provide a brief profile of each and 
summary response for their entire network, highlighting individual 
activities, partnerships, needs and/or results when appropriate.
    a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (30 Points).
    HUD uses responses to this Rating Factor to evaluate the readiness 
and ability of an applicant and proposed sub-grantee and branch staff, 
to immediately begin, and successfully implement, the proposed work 
plan detailed in Rating Factor 3. HUD will also evaluate how 
effectively the applicant managed work plan adjustments that may have 
been required if performance targets were not met within established 
timeframes and how often work plan adjustments were required.
    (1) Applicants must provide the following information to support 
evaluation of this Rating Factor. Information may be provided in a 
chart or table.
    (a) Number of full-time (35 hours + per week) housing counselors 
working for the applicant and, if applicable, proposed sub-grantees or 
branches;
    (b) Number of part-time housing counselors working for the 
applicant and, if applicable, proposed sub-grantees or branches;
    (c) Number of bilingual housing counselors working for the 
applicant and, if applicable, proposed sub-grantees or branches;
    (d) Average years of housing counseling experience for housing 
counselors working for the applicant and, if applicable, proposed sub-
grantees or branches;
    (e) Average years of housing counseling program management 
experience for the project director(s) for the applicant and, if 
applicable, proposed sub-grantees or branches;
    (f) Average years of related experience, such as experience in 
mortgage lending, for counselors and project managers;
    (g) For intermediaries and SHFAs, the number of sub-grantees and 
branches that received funding from the applicant through a FY 2004 HUD 
housing counseling grant(s), if applicable, covering the period October 
1, 2004-September 30, 2005.
    (2) Knowledge and Experience (11 points).
    Using the information provided above, demonstrate that the 
applicant, including proposed sub-grantees and branches, has sufficient 
personnel with the relevant knowledge and experience to implement the 
proposed activities in a timely and effective manner, and bilingual 
language skills, if appropriate.
    Specifically, for LHCAs, scoring will be based on the number of 
years of recent and relevant experience of Housing Counseling Program 
project directors and recent housing counseling and relevant experience 
of housing counselors.
    For intermediaries and SHFAs, scoring will be based on: The number 
of years of recent and relevant experience of project directors of 
proposed sub-

[[Page 11806]]

grantees and branches; the number of years of recent housing counseling 
and relevant experience of counselors in proposed sub-grantees and 
branches; and the number of years, for key intermediary or SHFA 
personnel, of recent experience running a housing counseling program 
consisting of a network of multiple housing counseling agencies. HUD 
will award higher scores to applicants with more experienced staff and 
management.
    Related experience, such as experience in mortgage lending, will 
also be considered, but will not be weighted as heavily in the scoring 
as direct housing counseling or housing counseling program management 
experience. HUD will also factor in other information that demonstrates 
the capacity of the applicant, such as relevant staff trainings and 
certifications. In scoring this section, HUD will evaluate whether the 
applicant has experience providing the proposed services. HUD will 
award higher scores to applicants with staff and management that have 
the greatest combination of experience, training and demonstrated 
competency.
    (a) Submit the names and titles of employees, including 
subcontractors and consultants who will perform the activities proposed 
in the applicant's work plan in Rating Factor 3. Clerical staff should 
not be listed. Describe each employee's, subcontractor's, or 
consultant's current housing counseling duties and responsibilities, 
experience in providing one-on-one and group counseling (describe each 
separately), relevant professional background and experience, and 
bilingual language skills, if applicable. Experience is relevant if it 
corresponds directly to projects of a similar scale and purpose. 
Provide the number of years of experience for each position listed, and 
indicate where and when each position was held. Indicate whether the 
position was full-time or part-time, and in the case of part-time 
positions, provide the number of hours per week. LHCAs may provide 
individual descriptions of staff limited to one page. These 
descriptions do not count toward narrative page limitations. 
Intermediaries and SHFAs acting as intermediaries should summarize in a 
single chart, for each applicable employee, subcontractor, and 
consultant of proposed sub-grantees or branches, the number of years of 
direct counseling or counseling program management experience, and the 
number of years of relevant experience. Total each column. Do not 
submit individual resumes for sub-grantee staff. HUD staff will verify 
experience information submitted during monitoring reviews.
    Applicants for HECM supplemental funding must specify the HECM 
experience of project directors, HUD HECM Network Counselors and the 
organization. They must also indicate the number of HUD HECM Network 
Counselors that are in the applicant's network at the time of 
application, and that the applicant proposes to fund with the requested 
award.
    (b) Indicate for all housing counselors and project directors the 
specialized trainings received within the last two years relevant to 
the proposed activities, including specific trainings regarding FHA 
programs. Include when the training was received and who provided it. 
Do not include on-the-job training. Applicants that seek supplemental 
funds for HECM counseling must indicate what relevant training 
counselors received to prepare them as HECM counselors.
    (c) Indicate which housing counselors are certified housing or 
financial counselors. Describe what type of certification is held, who 
provided it, when the certification was received, and if applicable, 
the date certification expires.
    (d) Indicate if the applicant, affiliates and branches, utilized an 
on-line Client Management System during the grant period October 1, 
2004, to September 30, 2005. Applicants that use a web-based system 
during this period will be awarded more points than applicants that did 
not utilize a web-based system.
    Identify the system and describe what data is input and if 
applicable, how the system analyzes client data, what reports are 
generated using the system and whether or not it is web-based. If 
applicable, indicate how the system is used to advise clients about 
their mortgage options including eligibility for FHA or other types of 
financing. If the applicant does not currently use an on-line or web-
based system but plans to in the coming grant period, October 1, 2006 
through September 30, 2007, indicate which system will be used, whether 
or not it is web based, and how its use will be implemented in terms of 
training employees to use it and its ability to improve client services 
and generate reports.
    (3) Grant and Program Requirement Compliance (14 points).
    In scoring this Section, HUD will evaluate how well the applicant 
met the Program requirements, including reporting and grant document 
execution, if applicable, for the period October 1, 2004, to September 
30, 2005, and its ability to spend all grant funds allotted.
    If the applicant did not receive an FY 2004 HUD grant, it must 
provide a response, with sufficient detail for HUD to evaluate 
compliance, based on activities and requirements under other sources of 
funding, such as other federal, state, or local grant awards. Identify 
the source(s) and amount(s) of funds used for housing counseling. 
Provide relevant contact information for the agencies or organizations 
administering these programs so HUD can verify that the information you 
report is accurate.
    (a) Grantee Requirements. HUD will evaluate the applicant's 
performance with regard to the timeliness and completeness with which 
the applicant satisfied grant requirements, including grant document 
execution, grant reporting requirements including quarterly (if 
applicable), mid-term and final reports,
    (b) Form HUD-9902. HUD will deduct points if the applicant was 
required to submit a form HUD-9902 for the period October 1, 2004 
through September 30, 2005, but failed to do so in a timely manner.
    (c) Expending Grant Funds. If grant awards were not fully expended 
during the grant period October 1, 2004, to September 30, 2005, provide 
an explanation as to the reason why and the steps the applicant has 
taken to ensure that future funding will be expended according to the 
terms of the grant agreement. To receive full credit, either 100 
percent of grant funds must have been expended in a timely manner or 
all goals must have been achieved prior to expending 100 percent of 
grant funds. If goals were achieved with fewer funds, state so and 
briefly provide details of efficiencies realized (if any).
    (d) Biennial Performance Reviews. Significant findings on biennial 
performance reviews conducted by HUD staff will be taken into 
consideration when scoring this section.
    (e) Housing Counseling System (HCS). HUD will evaluate applicant's 
timeliness and effectiveness in validating and updating agency 
information in HCS. Intermediaries and SHFAs must describe procedures 
and quality control measures used to verify sub-grantee, and if 
applicable branch or affiliate, information is validated in HCS on a 
regular basis.
    (4) Management--Goals and Results (5 points).
    In scoring this section, HUD will compare applicant goals and 
actual results for the period October 1, 2004 through September 30, 
2005, and evaluate subsequent changes in approach resulting from any 
differences, if applicable. HUD's primary concern is

[[Page 11807]]

how the applicant managed change, when needed, within the organization 
as well as a clear and reasonable explanation as to why goals were not 
met, or why they were exceeded, and what steps were taken 
organizationally to accommodate either scenario.
    For applicants that received a FY 2004 housing counseling grant 
covering the period October 1, 2004 to September 30, 2005, HUD will 
compare the projections made in the Program Outcome Logic Model, Form 
HUD-96010 submitted with the FY2004 Housing Counseling NOFA, including 
any adjustments based on actual award amounts, to the corresponding 
actual results for that period reported by the applicant in the Form 
HUD-9902 submitted to HUD.
    Applicants who did not receive a FY 2004 Housing Counseling Grant 
and therefore did not finalize outcome projections, or who are recently 
approved, or who were a sub-grantee of an intermediary or SHFA for the 
period of October 1, 2004 through September 30, 2005, and are now 
applying for funding under the LHCA category must indicate the 
detailed, quantifiable goals the organization set for itself for the 
period covering October 1, 2004 to September 30, 2005, or for the 12 
month period ending December 31, 2005 if more appropriate to the 
Applicant's or other grant-requiring reporting schedule. Also provide 
the actual results corresponding to these goals and explain any 
differences in goals versus actual results and indicate what 
measurement reporting tools were used as well as describe the 
evaluation process. Form HUD-96010-1, Logic Model Instructions, which 
is part of Form HUD-96010, provides information regarding measurement 
reporting tools and the evaluation process. If describing goals 
corresponding to other grant programs or sources of funding, provide 
relevant contact information for the agencies or organizations 
administering those programs so HUD can verify that the goals and 
corresponding achievements you report are accurate.
    b. Rating Factor 2: Need/Extent of the Problem (12 Points).
    This factor addresses the extent to which there is a need for 
funding the proposed activities described in the applicant's work plan, 
and the degree to which the applicant's work plan substantively 
addresses departmental policy priorities.
    (1) Needs Data (6 points).
    Provide current or recent economic and demographic data, and any 
other evidence that demonstrates housing counseling need relevant to 
the target area. All proposed activities in Factor 3 must have 
corresponding need-related data. Sources for all data provided must be 
clearly cited. Do not submit copies of reports or tables.
    To the extent that the community the applicant serves has 
documented need in its Consolidated Plan, Analysis of Impediments to 
Fair Housing Choice (AI), or other planning documents, provide these in 
the response. Economic and demographic data must include persons with 
disabilities located in the target area. The U.S. Census Bureau, for 
example, maintains disability data by state, county, and metropolitan 
statistical area (MSA) at the following Web site: http://www.census.gov/hhes/www/disability.html.
    Additionally, the HUD USER Research Information Service and 
Clearinghouse, available at http://www.huduser.org/, allows users to 
search over 800 HUD publications by subjects and keywords.
    In scoring this Section, HUD will evaluate the degree to which the 
applicant provides current or recent economic and demographic data, and 
any other evidence that demonstrates housing counseling need relevant 
to the target area and the activities proposed in projected work plan 
activities detailed in Rating Factor 3. Applicants that fail to 
identify current or recent objective data will not receive full points 
for this factor.
    (2) Departmental Policy Priorities (6 points).
    The Departmental policy priorities are described in detail in the 
General Section. Of those listed, the following five apply to the 
Housing Counseling Program for the purpose of this NOFA. Indicate if 
and describe how the applicant's work plan substantively addresses each 
of these departmental policy priorities. Applicants are advised to 
review the policy priorities in the General Section, to assure they 
fully understand the meaning of each, prior to responding to this sub-
factor.
    In scoring this section, the applicant will receive one point for 
each of the departmental policy priorities (a)-(d) that the projected 
work plan in Factor 3 substantively addresses. Up to 2 points are 
available for priority (e). The General Section and HUD's Notices 
identify how policy priority points will be awarded. Copies of HUD's 
notices published on this issue, can be found on HUD's Web site at 
http://www.hud.gov/grants/index.cfm.
    (a) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency.
    (b) Providing Full and Equal Access to Grassroots, Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation.
    (c) Participation of Minority-Serving Institutions in HUD Programs. 
Identify partnerships with minority-serving institutions of higher 
learning such as colleges and trade schools.
    (d) Participation in Energy Star. Applicants must provide 
information on how they promote or plan to promote Energy Star 
materials and practices and buildings constructed to Energy Star 
standards to homebuyers, renters and other applicable counseling 
clients. Describe any outreach activities previously conducted and/or 
planned to promote Energy Star products.
    (e) Removal of Regulatory Barriers to Affordable Housing. Under 
this policy priority, higher rating points are available to (1) 
governmental applicants that are able to demonstrate successful efforts 
in removing regulatory barriers to affordable housing and (2) 
nongovernmental applicants that are associated with jurisdictions that 
have undertaken successful efforts in removing barriers. To obtain the 
policy priority points for efforts to successfully remove regulatory 
barriers, applicants must complete form HUD-27300, ``Questionnaire for 
HUD's Initiative on Removal of Regulatory Barriers.'' A limited number 
of questions on form HUD-27300 expressly request the applicant to 
provide brief documentation with its response. Other questions require 
that, for each affirmative statement made, the applicant supply a 
reference, URL or brief statement indicating where the back-up 
information may be found, and a point of contact, including a telephone 
number or e-mail address. Applicants that do not provide the required 
URL references or other back-up documentation will not be eligible for 
the points associated with this policy priority.
    c. Rating Factor 3: Soundness of Approach/Scope of Housing 
Counseling Services (35 Points).
    This factor addresses the quality and effectiveness of the 
applicant's historical and proposed housing counseling activities.
    (1) Historical Performance--Quality and Complexity of Services (8 
Points).
    In scoring this section, HUD will evaluate the quality of, the 
variety of, and the level of effort and time associated with the 
housing counseling services provided by the applicant during the period 
October 1, 2004 through September 30, 2005. Responses

[[Page 11808]]

should contain ``Historical Performance'' as part of the heading for 
the response. Applicants must provide the following information:
    (a) Average hours of housing counseling per client, for the period 
October 1, 2004, through September 30, 2005, for each of the following 
service types, including follow-up, the applicant organization 
provides:
    (i) Pre-purchase Counseling.
    (ii) Homebuyer Education.
    (iii) Delinquency/Default Counseling.
    (iv) Non-Delinquency Post-Purchase Counseling.
    (v) Home Equity Conversion Mortgage (HECM) Counseling.
    (vi) Post-Purchase Education.
    (vii) Rental Counseling.
    (viii) Homeless/Displacement Counseling.
    (ix) Predatory Lending Counseling.
    (x) Homeownership Voucher Counseling and Education.
    (xi) Other (describe).
    Describe the level of effort and time required to provide the 
housing counseling services described and to meet the needs of clients. 
Explain the average counseling time per client figures above. Scoring 
will be based on the degree to which the applicant demonstrates, as 
compared to other applicants, that sufficient time and resources were 
devoted to ensure that clients received quality counseling.
    (b) Types of Counseling and Services Offered: HUD will retrieve 
this information from the HUD-9902 and the Housing Counseling System 
(HCS). Verify that the information in these sources is accurate. If 
applicant received supplemental funding and the services offered were 
not captured on the HUD-9902, they must describe their activities in 
detail. Scoring of the variety of housing counseling services offered 
is weighted to provide the most points for HECM and Post Purchase 
Default/Loss Mitigation counseling.
    (c) Group Education and One-On-One Counseling. For the period 
October 1, 2004, through September 30, 2005, HUD will retrieve from 
Section 6 of form HUD-9902, the number of clients that participated in 
Homebuyer Education Workshops or other types of classes offered as 
group sessions and will retrieve from Section 7a-e, the number of 
clients that participated in one-on-one counseling. Applicants should 
explain the figures provided in Form HUD-9902 regarding group session 
participation and one-on-one counseling. Describe how clients come to 
participate in one or the other, the relationship between the two, and 
the role that each plays in the applicant's overall service provision. 
Estimate the percentage of clients participating in both group 
education sessions and one-on-one counseling. Scorers will evaluate the 
extent to which an agency encouraged and provided one-on-one 
counseling, which HUD considers the most effective form of housing 
counseling, instead of over-relying on homebuyer education workshops 
and other forms of group sessions.
    (2) Historical Performance--Impact/Outcomes (9 points).
    To score this Section, HUD will evaluate the applicant's 
performance for the period October 1, 2004, to September 30, 2005. The 
quantity of clients the applicant served will be compared to similar 
applicants providing similar services. Clients served numbers will also 
be analyzed in the context of the applicant's total housing counseling 
budget for the same period, FY2004. HUD will also consider the degree 
to which the services provided were time and resource intensive. 
Additionally, for intermediaries and SHFAs, HUD will evaluate the 
geographic coverage and scope of the applicant's activities for the 
period October 1, 2004, through September 30, 2005, including the 
number of states served by affiliates or branches, if applicable, and 
the overall size of the housing counseling network during that period.
    (a) Cost per client. Clients served figures will be obtained from 
the Form HUD-9902 for the period October 1, 2004 through September 30, 
2005, submitted to HUD by the applicant, which reflects activities 
funded both with HUD housing counseling grant funds, if applicable, and 
with other leveraged resources. Applicants that were not required to 
submit Form HUD-9902 for the period October 1, 2004 through September 
30, 2005 must complete one as part of this application. In addition, 
the applicant must provide the following information.
    (i) FY 2005 total housing counseling budget, covering the period 
October 1, 2004-September 30, 2005, including HUD housing counseling 
grant(s) or sub-grants, if applicable, as well as other resources 
leveraged specifically for housing counseling. Do not include funds for 
down payment or closing cost assistance, Individual Development 
Accounts, emergency services, or other resources not used for the 
direct provision of housing counseling.
    (ii) Indicate how location, type of counseling, client type, and 
expenses may have affected client volume. Justify expenses and explain 
why they were reasonable, strategic, and appropriate.
    (b) Percentage of Grant Funding Passed Through: Intermediaries and 
SHFAs that received one or more FY 2004 HUD housing counseling grant, 
for the grant period October 1, 2004, to September 30, 2005, must also 
indicate what percentage of their grant(s) was passed through directly 
to sub-grantees or branches, and explain how funds not passed through 
were spent.
    LHCAs applying under Applicant Category 1 that received one or more 
FY 2004 HUD housing counseling grants for the grant period October 1, 
2004, to September 30, 2005, must indicate what percentage of their 
grant(s) was spent on the salaries and benefits of housing counselors 
and project directors. Explain how other funds were spent.
    Applicants that did not receive a FY 2004 HUD housing counseling 
grant must characterize their performance through other housing 
counseling funding sources, for example other federal, state or local 
government grants, providing as much detail, similar to that requested 
above, as possible.
    (c) Geographic Coverage: Intermediaries and SHFAs must identify the 
sub-grantees, affiliates and branches, and corresponding states, to 
which the applicant provided housing counseling funding, for the period 
October 1, 2004, through September 30, 2005, through:
    (i) FY 2004 HUD housing counseling grant funds, if applicable.
    (ii) All housing counseling resources.
    (3) Projected Performance/Work Plan--Quality and Complexity of 
Services (9 points).
    This section involves information on housing counseling services to 
be conducted during the period October 1, 2006, through September 30, 
2007. In scoring this Section, HUD will consider the types and variety 
of housing counseling and education services being offered, and other 
activities occurring in support of the applicant's housing counseling 
program.
    HUD will also evaluate the quality of the applicant's proposed 
housing counseling services, and level of effort and time associated 
with providing the proposed counseling services to the number of 
clients it estimates it will serve. Scoring will be based on the degree 
to which the applicant demonstrates, as compared to other applicants, 
that for each type of counseling service delivered, average, greater 
than average or less than average time and resources will be devoted to 
ensure that clients receive quality counseling.
    Applicants must provide the following information, which will be 
used in conjunction with responses in Rating Factor 5, as a basis to 
support the scoring of the sub-factors below. There must be consistency 
between Rating

[[Page 11809]]

Factor 3 and the projected outputs and outcomes in Rating Factor 5. 
Responses must contain ``Projected Performance'' as part of the heading 
for the response.
    (a) Describe the various types of housing counseling and education 
services, and if applicable intermediary activities, the applicant 
proposes to undertake, and identify the geographic area the services 
will cover. Also, describe planned follow-up activities, if applicable. 
Proposed services and activities must relate to the needs identified in 
Rating Factor 2. Scoring of the variety of housing counseling services 
offered is weighted to provide the most points for one-on-one 
counseling regarding HECM and Post Purchase Default/Loss Mitigation. To 
be eligible for the full points available for these service types, 
applicants proposing to provide HECM and/or Default/Loss Mitigation 
counseling must have prior HUD-approval to provide these services.
    Intermediaries and SHFAs acting as intermediaries should describe 
in detail their plans to train proposed sub-grantees and branches, 
provide technical assistance, and evaluate compliance with program 
requirements, for example through site visits.
    (b) Average hours of housing counseling time the applicant 
estimates per client, for each of the activities listed in part (a), 
including follow-up. If the projected average times are the same as 
those listed for the period covering October 1, 2004-September 30, 
2005, the applicant may simply state so in lieu of listing them again 
here.
    Also provide the proposed average hourly labor-rate for housing 
counselors working for the applicant, affiliates, or branch network, if 
applicable, including benefits.
    (c) Indicate the names and titles of employees, including 
subcontractors and consultants, allocated to each proposed activity, as 
well as the corresponding staff hours for each task, and demonstrate 
that the applicant has the human resources to accomplish the proposed 
activities and serve the number of individuals the applicant proposes 
to serve. The staff information should include who from Rating Factor 1 
will be involved and any new staff, subcontractors or consultants that 
will be hired for the October 1, 2006-September 30, 2007 grant period.
    For intermediaries and SHFAs, the total number of sub-grantees and 
branches, and corresponding number of states, that the applicant 
estimates will receive funding through the proposed FY 2006 HUD Housing 
Counseling Grant during the grant period October 1, 2006, to September 
30, 2007. If applying for HECM supplemental funding, indicate the 
number of sub-grantees and branches the applicant estimates for 
comprehensive counseling, and for any HECM supplemental funding 
requested.
    (d) Describe plans to effectively serve and/or communicate with 
persons with limited English proficiency (LEP) and persons with 
disabilities who require alternative formats, for example materials 
that are available in languages other than English.
    (e) Intermediaries and SHFAs must also:
    (i) Describe the housing counseling and education activities to be 
provided by proposed sub-grantees and branches, explicitly stating the 
types of services to be offered, preferably in a chart.
    (ii) Describe the applicant's legal relationship with sub-grantees 
(i.e. membership organization, field, or branch office, subsidiary 
organization, etc.).
    (iii) Explain the process that will be used to determine sub-
grantee funding levels and distribute funds. If applicable, indicate 
how sub-grantee funding levels are adjusted on an on-going basis based 
on performance.
    (4) Projected Performance/Work Plan--Coordination (5 points).
    HUD will consider the extent to which, as compared to similar 
applicants, the applicant can demonstrate it will coordinate proposed 
activities with other organizations, and if applicable with other 
services and products offered by the applicant's organization, in a 
manner that benefits their clients. Scoring will also be based on the 
degree to which the applicant takes steps to avoid conflicts of 
interest, and discloses to clients that they have a choice in matters 
such as the loan product they choose and the house that they purchase.
    (a) Describe partnerships and efforts to coordinate proposed 
activities with other organizations, including, but not limited to, 
emergency and social services providers, lending organizations, 
homeowner insurance providers, down payment and closing cost assistance 
programs, nonprofit housing providers, and local or state government. 
For example, describe agreements with lenders regarding non-traditional 
lending standards or participation in the Consolidated Planning process 
or the Analysis of Impediments. Any written agreements or memoranda of 
understanding in place should be described. These agreements and 
memoranda of understanding will be reviewed by HUD staff as a part of 
the biennial reviews and on-site monitoring visits. Applicants should 
also highlight internal products and functions, such as loan products 
available to clients, down payment and closing cost assistance 
programs, as well as internal affordable housing programs that can be a 
resource for clients.
    Applicants requesting HECM supplemental funding should highlight 
the partnerships or internal products that are relevant to HECM 
activities.
    (b) Describe plans to avoid conflicts of interest, such as methods 
for disclosing to participants that they are free to choose lenders, 
loan products, and homes, regardless of the recommendations made by 
counselors. To receive full credit in this Section, the applicant must 
state their plan and describe the disclosure forms and materials used 
by the applicant to communicate to clients that, while affordable 
homes, lending products and other forms of assistance might be 
available through the applicant, and partnerships in which the 
applicant has entered, the client is under no obligation to utilize 
these services. These plans and disclosures will be reviewed by HUD 
staff as a part of the biennial reviews and on-site monitoring visits.
    (5) Projected Performance/Work Plan--Coverage/Efficient Use of 
Resources (4 points).
    In scoring this Section, HUD will evaluate the geographic coverage 
of the applicant's proposed activities, and spending decisions.
    (a) Percentage of Grant Funding To Be Passed Through: 
Intermediaries and SHFAs must indicate what percentage of their 
proposed award will be passed through directly to sub-grantees and 
branches, and explain how funds not passed through will be spent.
    LHCAs that apply under Applicant Category 1 must indicate what 
percentage of their proposed award will be spent on the salaries and 
benefits of housing counselors and project directors. Explain in detail 
how other proposed funds will be spent.
    (b) Geographic Coverage: Intermediaries and SHFAs must identify the 
sub-grantees and branches, and corresponding states, the applicant 
proposes will receive funding through this grant award. Indicate which, 
if any proposed sub-grantees and branches, serve Colonias. In the event 
that an intermediary is also applying for HECM supplemental funding, 
indicate the agencies and corresponding states in which the HUD HECM 
Network counselors you propose to fund are located. Applicants unable 
to precisely identify proposed sub-grantees and branches to receive 
funding through the proposed grant must identify the most

[[Page 11810]]

likely sub-grantees and branches, based on past experience, and explain 
what process will be used to select actual sub-grantees and branches. 
Pursuant to the applicable regulations at 24 CFR 84.82(d)(3)(iii) and 
85.30(d)(4), grantees must receive HUD's prior written approval for 
sub-grants.
    d. Rating Factor 4: Leveraging Resources (10 Points).
    HUD housing counseling grants are not intended to fully fund an 
applicant's housing counseling program, or that of its sub-grantees. 
All organizations that use housing counseling grant funds are expected 
to seek other private and public sources of funding for housing 
counseling to supplement HUD funding. Any agency that does not have 
other resources available will receive no points for this factor.
    Applicants will be evaluated based on their ability to show that 
they have obtained additional resources for their housing counseling 
activities, for the period October 1, 2006-September 30, 2007, 
including: direct financial assistance; in-kind contributions, such as 
services, equipment, office space, labor; etc. Resources may be 
provided by governmental entities, public or private nonprofit 
organizations, for-profit private organizations, or other entities 
committed to providing assistance. Grantees will be required to 
maintain evidence that leveraged funds were actually provided to the 
agency. These files will be reviewed by HUD staff as a part of the 
biennial reviews and on-site monitoring visits.
    (1) Applicants must provide a comprehensive list of all leveraged 
funds and in-kind contributions being claimed. Include the amount and 
the source. All contributions, including cash and third party in-kind, 
shall be accepted as part of the recipient's cost sharing or matching 
when such contributions meet all of the criteria set forth in 24 CFR 
84.23.
    (2) Additionally, resources provided by the applicant may count as 
leveraged resources. These amounts must include only funds that will 
directly result in the provision of housing counseling services, but 
not resources for activities such as down payment and closing cost 
assistance, IDA programs, and emergency services.
    (3) Intermediaries and SHFAs should include information on 
leveraged resources for only anticipated sub-grantees and branches that 
will be funded through this application.
    (4) Points for this factor will be awarded based on the 
satisfactory level of leveraging and financial sustainability and the 
percentage of the applicant's total housing counseling budget that the 
requested HUD housing counseling funds would represent. The amount of 
grant funds requested will impact the ratio used to score this factor, 
as this factor evaluates the proposed HUD grant as a percentage of the 
total counseling budget. For example, a LHCA requesting the maximum 
comprehensive grant amount of $200,000 with leveraged funds equaling 
that grant will only receive 7 points. If that same LHCA requests only 
$140,000 with the same leveraged funds of $200,000, the score will be 
8. Depending on organization type, the following scales will be used to 
determine scores for this factor:

LHCAs and SHFAs

1-25%--10 points
26-40%--9 points
41-48%--8 points
49-55%--7 points
56-65%--6 points
66-75%--5 points
76-85%--4 points
86-91%--3 points
92-95%--2 points
96-99%--1 point

Intermediaries

1-15%--10 points
16-23%--9 points
24-29%--8 points
30-35%--7 points
36-41%--6 points
42-47%--5 points
48-53%--4 points
54-59%--3 points
60-65%--2 points
66-99%--1 point

    e. Rating Factor 5: Achieving Results and Program Evaluation (13 
points).
    This factor emphasizes HUD's determination to ensure that 
applicants meet commitments made in their applications and grant 
agreements and assess their performance in achieving agreed upon 
performance goals. This reflects HUD's Strategic goal to embrace high 
standards of ethics, management and accountability.
    The purpose of this factor is for the applicant to identify 
projected outputs and outcomes corresponding to the proposed workplan 
in Factor 3. The developed logic model submitted with the application 
will serve as a reporting tool for applicants selected to receive an 
award, allowing HUD to compare proposed program outputs and outcomes 
with actual results. In scoring this Factor, HUD will consider the 
appropriateness of the goals given the award the applicant is applying 
for and evaluate the proposed outputs and outcomes for their 
effectiveness and efficiency in delivering housing counseling services 
to the population to be serviced. Additionally, scorers will evaluate 
the extent to which an applicant's proposal includes one-on-one 
counseling or encourages affiliates to undertake one-on-one counseling. 
HUD considers one-on-one counseling the most effective form of housing 
counseling, as compared to homebuyer education workshops and other 
forms of group sessions.
    (1) Program Outcome Logic Model (2 points).
    This year HUD has created a new method for completing the Logic 
Model form. Applicants will now be able to select appropriate outputs 
and outcomes from a series of ``pick lists'' for the Housing Counseling 
Program. The pick list can be found in the form HUD-96010 in the 
Grants.gov Housing Counseling Program Instructions Download. Using the 
pick list, for each column of the logic model, applicants can select 
and insert their outputs and outcomes in the appropriate columns of the 
Logic Model.
    The pick lists also provide for an associate unit of measure for 
each output and outcome, and applicants must utilize the measure 
provided that is associated to the activity. Applicants must identify 
projected output and outcome values that correspond to the unit of 
measure. For example, insert whole numbers, not percentages, when the 
unit of measure is ``Households''.
    These amounts should represent results to be achieved entirely as a 
result of the HUD housing counseling funding. If, in reality, various 
funding sources will contribute to the services provided each 
individual, the applicant must prorate their response to reflect a 
figure representing services provided with only funding from the 
proposed grant. HUD will ultimately compare these output projections 
with actual accomplishments reported in the form HUD-9902, so 
applicants should make their projections based on what they expect to 
achieve for reporting on the HUD-9902. In other words, applicants are 
projecting what their future form HUD-9902 will look like. In addition, 
HUD has provided a series of management questions, which awardees will 
be expected to respond to in reporting back to HUD. The management 
questions place a framework around the data you will be reporting to 
HUD. The management questions are included in the Logic Model and 
applicants should use them as a guide to understanding what HUD is 
interested in learning about the major element of your program. HUD 
will provide training on the Logic Model through webcasts and detailed 
step-by-step instructions for using the new form

[[Page 11811]]

and format. The schedule for the webcasts and instructions can be found 
at http://www.hud.gov/offices/adm/grants/fundsavail.cfm For FY2006, HUD 
is considering a new concept for the Logic Model. The new concept is a 
Return on Investment (ROI) statement. HUD will be publishing a separate 
notice on the ROI concept.
    Applicants must complete and submit Form HUD-96010. Applicants will 
be scored based on how the applicant's Form HUD-96010 corresponds to 
the narrative responses for Factor 2 and 3. To receive full credit, the 
Form HUD 96010 must identify:
    (a) Outputs.
    Outputs are the direct products of the applicant's activities that 
lead to the ultimate achievement of outcomes. Based on the proposed 
work plan in Factor 3 and the amount being requested through this NOFA, 
applicants should select the appropriate outputs and their associated 
units of measure from the choices provided in the pick list, and 
provide the corresponding number to be achieved for each proposed 
output.
    If requesting supplemental funding, indicate the specific number of 
households the applicant projects it, or if applicable, sub-grantees 
and branches, will serve under the comprehensive counseling portion of 
the requested award and with requested HECM supplemental funding.
    (b) Outcomes.
    Outcomes are benefits accruing to the households as a result of 
participation in the program. Outcomes are performance indicators the 
applicant expects to achieve or goals it hopes to meet over the term of 
the proposed grant. Using the pick lists provided, applicants should 
select each appropriate outcome and associated unit of measure related 
to the proposed work plan, and provide the corresponding number to be 
achieved for each proposed outcome. Projected outcomes should reflect 
the number you expect to report in the HUD Housing Counseling Grant 
Activities column on the Form HUD-9902.
    The proposed outcomes the applicant provides will be compared to 
actual results in the measurement of grant performance and future grant 
application evaluations.
    (2) Projected Performance/Work Plan--Impact (6 points).
    In scoring this Section, HUD will evaluate the proposed outputs 
from the logic model, specifically the number of clients that the 
applicant estimates will be served under the proposed HUD grant, by the 
applicant and sub-grantees, if applicable, for the grant period October 
1, 2006, to September 30, 2007. Scoring will be based on the cost per 
client, compared historical averages for similar services and similar 
applicants. Proposed clients served numbers will also be analyzed in 
the context of budget, costs, spending decisions, the types of services 
provided, level of effort expended, etc.
    (a) Provide a context for, or qualify the number of clients the 
applicant projects to serve with the proposed HUD grant. Indicate how 
location, counseling and client types, and expenses may affect client 
volume, and whether the impact will be short-term or long-term. Justify 
proposed expenses and explain why they are reasonable, strategic, and 
appropriate for the counseling activities identified above.
    (3) Projected Performance--Group Education and One-On-One 
Counseling. (3 points)
    HUD will utilize logic model output projections to evaluate what 
percentage of total clients the applicant estimates will participate in 
group education, what percentage will participate in one-on-one 
counseling, and what percentage will participate in both group sessions 
and one-on-one counseling. Describe how clients are selected for one or 
the other, the relationship between the two, and the role that each 
will play in the overall service provision. Scorers will evaluate the 
extent to which an agency plans to encourage and provide one-on-one 
counseling, which HUD considers the most effective form of housing 
counseling, instead of over-relying on homebuyer education workshops 
and other forms of group sessions.
    (4) Evaluation Plan. (2 points)
    Applicants must also submit an evaluation plan for how they are 
going to track actual accomplishments against anticipated achievements 
and ensure that the program can provide the services projected to be 
delivered and outcomes projected to be achieved.
    (a) Information Collection. Describe the applicant's procedures for 
measuring outputs and outcomes. Describe follow-up activities with 
clients to collect outcome information.
    (b) Data Analysis and Work Plan Adjustments. Indicate how the 
information will be evaluated, and the steps the applicant has in place 
to make adjustments to the work plan if performance targets are not met 
within established timeframes. National and regional intermediaries and 
SHFAs should indicate if and how the performance of sub-grantees and 
branch offices affects current and future sub-grants and allocations.
    B. Review and Selection Process. Two types of reviews will be 
conducted.
    1. Technical Review. First, each application will be reviewed for 
technical sufficiency, in other words, whether the application meets 
the threshold requirements set out in this NOFA and the General Section 
and whether all required forms have been submitted. The General Section 
provides the procedures for corrections to deficient applications.
    2. General Review. The second review considers the responses to the 
rating factors outlined above and other relevant information. 
Applications will be evaluated competitively, and ranked against all 
other applicants that applied in the same funding category.
    3. Rating Panels. Detailed information on the rating review panels 
appears in the General Section.
    4. Minimum Score for Fundable Applications. The minimum score for 
fundable applications is 75 points.
    5. Funding Methodology.
    a. Comprehensive Counseling. The following funding formula will be 
used to calculate the comprehensive counseling portion of the awards 
under Categories 1-3. Only applicants who receive a score of 75 points 
or above will be considered eligible for funding. All eligible 
applicants will then be funded in proportion to the score they receive. 
Regarding the comprehensive counseling portion of an award, all 
grantees will receive the lower of either the comprehensive award 
amount determined with the formula, or the amount actually requested by 
the applicant. HUD will consider the amount of the comprehensive 
counseling grant being requested to be the value entered into box 15a 
on form SF-424. For intermediaries also requesting HECM supplemental 
funding, box 15a of Form SF-424 should reflect the total of the 
comprehensive request and the HECM supplemental request. For these 
intermediaries requesting both, the narrative response to Factor 3 must 
make clear the exact comprehensive and supplemental amounts being 
requested. The formula will work as follows for each category:
    (1) Funding Round 1. Every applicant that scores 75 points or above 
will receive a base award ($20,000 for LHCAs; $50,000 for SHFAs; and 
$200,000 for intermediaries). The total number of applicants receiving 
the base award will be multiplied by the relevant base amount, and that 
amount will be subtracted from the total amount available under the 
Category, or in the cases of Categories 1 and 3, available to the HOC.
    (2) Funding Round 2. Then, the remaining balance after funding the

[[Page 11812]]

Round 1 base awards will be divided by the total number of points all 
applicants in that Category, and HOC in the cases of Categories 1 and 
3, score that are above the 75-point cutoff. The calculation will 
result in a dollar value for each point. The number of points that all 
applicants in a Category, and in a HOC in the cases of Categories 1 and 
3, score above the 75 point base will be multiplied by that dollar 
value. The result of that calculation will be added to the base award. 
Any remaining funds after this calculation will carry over into the 
next funding round.
    (3) This same methodology will be used for each subsequent round of 
funding until all available funds are awarded, or until all eligible 
applicants are funded to the maximum dollar amount allowed. Subsequent 
rounds of calculations, if needed, will distribute remaining funds to 
applicants that scored above 95 points, 91-95 points, 86-90 points, and 
80-85 points, respectively.
    b. Supplemental Funding. The same methodology described above in 
section a will be used to distribute the available HECM supplemental 
funds. Regarding supplemental funding, all grantees will receive the 
lower of either the supplemental award amount determined with the 
formula, or the specific amount of supplemental funding actually 
requested by the applicant. Each applicant will only submit one 
application and receive a score based on the application for the 
comprehensive counseling grant. Comprehensive counseling funds will be 
allocated based on this score. Subsequently, for HECM supplemental 
funding, responses to each rating factor will be evaluated on a yes/no, 
adequate/inadequate basis. An adequate response will result in a score 
for the supplemental funding identical to the comprehensive score on 
each respective rating factor. An inadequate supplemental response will 
result in a 1-point deduction from the comprehensive score. After all 
five rating factors have been evaluated, the adjusted ratings will 
result in a distinct score for the HECM supplemental funds. This method 
will result in scores for supplemental funding that may be equal to the 
comprehensive score, or up to five points less than the comprehensive 
score. In no case can an applicant receive a higher score on an 
application for supplemental funding than it received on its 
comprehensive application. An applicant will receive a separate score 
for its application for comprehensive counseling, and for HECM 
supplemental funding. The base award for the HECM supplemental funding 
will be $40,000 for intermediaries. Only applicants scoring 75 points 
or above are eligible for supplemental funding. However, because of the 
limited amount of funds available, all applicants scoring 75 points or 
above are not guaranteed supplemental funding. The top two scoring 
intermediary applicants (scoring 75 points or above) that are eligible 
for HECM supplemental funds, and have not already been fully funded in 
accordance with the funding methodology described in this section, will 
receive supplemental HECM funding.
    6. Reallocation of Unspent Funds. If funds designated for a 
specific grant Category, HOC, or for supplemental funding remain 
unspent after the formulas have been run and award recommendations are 
determined, HUD may, at its discretion, reallocate those funds to any 
other funding Category or supplemental funding area under this NOFA. 
Additionally, HUD may reallocate unspent funds to any HOC jurisdiction 
or to HUD Headquarters for awards under this NOFA. HUD may also 
reallocate unspent funds for housing counseling support activities. Any 
reallocation will be based on demand and unmet need.

VI. Award Administration Information

    A. Award Notices: Following selection, applicants will receive 
notification from HUD regarding their application.
    1. Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR part 4 provide that HUD will publish a notice in the Federal 
Register to notify the public of all decisions made by the Department. 
Please see the General Section for more information on this topic.
    2. Debriefing. Applicants may receive a debriefing on their 
application submission. Please see the General Section for a further 
discussion of the time frame in which the debriefing request may be 
submitted.
    B. Administrative and National Policy Requirements:
    1. Environmental Requirements. In accordance with 24 CFR 
50.19(b)(9) and (12) of the HUD regulations, activities assisted under 
this program are categorically excluded from the requirements of the 
National Environmental Policy Act and are not subject to environmental 
review under the related laws and authorities.
    2. Audit Requirements. Grantees that expend $500,000 or more in 
federal financial assistance in a single year (this can be program year 
or fiscal year) must be audited in accordance with the OMB requirements 
as established in 24 CFR Part 84. Additional information regarding this 
requirement can be accessed at the following Web site: http://harvester.census.gov/sac.
    3. Other Matters.
    a. Relocation. See the General Section.
    b. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs. See the General Section.
    c. Prohibition Against Lobbying Activities. See the General 
Section.
    d. Procurement of Recovered Materials. See the General Section.
    f. Executive Order 13279 Equal Protection of the Laws for Faith-
Based and Community Organizations. See the General Section.
    g. Salary Limitation for Consultants. See the General Section.
    h. Executive Order 13132, Federalism. See the General Section.
    i. Sense of Congress. See the General Section.
    C. Reporting:
    1. Fiscal Year Activity Report. Grantees are required to submit 
Form HUD-9902, Fiscal Year Activity Report, via HUD's web-based Housing 
Counseling System (HCS). The information compiled from this report 
provides HUD with its primary means of measuring program performance.
    2. Program Outcome Logic Model. If the actual award amount differs 
from the proposed award, Grantees are required to submit an updated 
Form HUD-96010, Program Outcome Logic Model before the grant agreement 
will be executed. Additionally, Grantees will be required to submit an 
updated Form HUD-96010, Program Outcome Logic Model, reflecting actual 
achievements, with each quarterly, midterm and final report, in 
accordance with the reporting requirements of the grant agreement. The 
information in this form provides the primary means through which HUD 
will monitor the ongoing performance of the grantee.

VII. Agency Contact(s)

    A. Technical Assistance. For technical assistance in downloading or 
submitting an application package using www.Grants.gov, contact the 
Grants.gov support desk at 800-518-Grants or by sending an e-mail to 
[email protected].
    B. Programmatic Information. For program related information, LHCAs 
and SHFAs should contact the HOC serving their area, as indicated 
below. Intermediaries should contact HUD Headquarters, Program Support 
Division at (202) 708-0317 (this is not a toll-free number). Hearing 
and speech challenged persons may access the

[[Page 11813]]

telephone numbers listed below by calling the Federal Information Relay 
Service at 800-877-8339.

------------------------------------------------------------------------
          Homeownership Center                        States
------------------------------------------------------------------------
Philadelphia Homeownership Center, Ms.   Connecticut, Delaware, District
 Brenda Bellisario, Acting Director,      of Columbia, Maine, Maryland,
 Program Support Division, Wannamaker     Massachusetts, Michigan, New
 Building, 100 Penn Square East, 12th     Hampshire, New Jersey, New
 Fl, Philadelphia, PA 19107-3389. For     York, Ohio, Pennsylvania,
 programmatic information contact:        Rhode Island, Vermont,
 Robert Wright, [email protected]    Virginia, West Virginia.
 (215) 656-0527 x3406.
Atlanta Homeownership Center, Ms. Gayle  Alabama, Puerto Rico, Florida,
 Knowlson, Director, Program Support      Georgia, Illinois, Indiana,
 Division, 40 Marietta Street, 8th        Kentucky, Mississippi, North
 Floor, Atlanta, GA 30303-2806. For       Carolina, South Carolina,
 programmatic information contact: E.     Tennessee.
 Carolyn Hogans, [email protected] (404) 331-5001, x2129.
Denver Homeownership Center, Ms. Irma    Arkansas, Colorado, Iowa,
 Devich, Director, Program Support        Kansas, Louisiana, Minnesota,
 Division, 1670 Broadway, Denver, CO      Missouri, Montana, Nebraska,
 80202-4801, For programmatic             New Mexico, North Dakota,
 information contact: 303-672-5200, Vic   Oklahoma, South Dakota, Texas,
 Karels x1995, Victor--E.--               Utah, Wisconsin, Wyoming.
 [email protected] Jonna Munson x1987,
 [email protected].
Santa Ana Homeownership Center, Mr.      Alaska, Arizona, California,
 Jerrold Mayer, Director, Program         Hawaii, Oregon, Idaho, Nevada,
 Support Division, Santa Ana Federal      Washington.
 Building, 34 Civic Center Plaza, Room
 7015, Santa Ana, CA 92701-4003, For
 programmatic information contact:
 Rhonda J. Rivera, [email protected] 1-888-827-5605 x3210.
------------------------------------------------------------------------

VIII. Other Information

    A. Satellite Broadcast. HUD will hold an informational broadcast 
via satellite for potential applicants to learn more about the program, 
the FY 2006 Logic Model requirements, and the application. For more 
information about the date and time of the broadcast, consult the HUD 
Web site at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    B. Public Access, Documentation, and Disclosure. See the General 
Section for more information on this topic.
    C. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2502-0261. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number. Public reporting burden for the collection of 
information is estimated to average 68 hours per annum per respondent 
for the application and grant administration. This includes the time 
for collecting, reviewing, and reporting the data for the application, 
semi-annual 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.

BILLING CODE 4210-01-P

[[Page 11814]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.012


[[Page 11815]]



Lead-Based Paint Hazard Control Grant Program, Lead Hazard Reduction 
Demonstration Grant Program, and Operation Lead Elimination Action 
Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Healthy Homes and Lead Hazard Control.
    B. Funding Opportunity Title: Lead-Based Paint Hazard Control 
Program and Lead Hazard Reduction Demonstration Program and Operation 
Lead Elimination Action Program (LEAP).
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: FR-5030-N-13; OMB Approval Number 
2539-0015.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.900 
Lead-Based Paint Hazard Control in Privately Owned Housing and 14.905 
Lead Hazard Reduction Demonstration Program, and 14.903 Operation Lead 
Elimination Action Program.
    F. Dates: Applications must be received and validated by Grants.gov 
no later than 11:59:59 p.m. Eastern Time on June 7, 2006. See the 
General Section for specific instructions regarding application 
submission.
    G. Optional, Additional Overview Content Information:
    1. Purpose of the Program.
    a. The purpose of the Lead-Based Paint Hazard Control Program is to 
assist states, Native American Tribes and local governments in 
undertaking comprehensive programs to identify and control lead-based 
paint hazards in eligible privately owned housing for rental or owner-
occupants.
    b. The purpose of the Lead Hazard Reduction Demonstration Program 
is the same as the Lead Hazard Control, but the Lead Hazard Reduction 
Demonstration Program is targeted for urban jurisdictions with the 
highest lead-based paint hazard control needs.
    c. The purpose of the Operation Lead Elimination Action Program 
(LEAP) is to provide grants to private sector and nonprofit 
organizations to leverage funds for addressing lead hazards in 
privately owned housing units and eliminating lead poisoning as a major 
public health threat to young children.
    2. Available Funds. Approximately $159,136,036 million (Lead Hazard 
Control Program, Lead Hazard Reduction Program and Lead Elimination 
Action Program (LEAP)).
    3. Eligible Applicants.
    a. To be eligible to apply for funding under the Lead-Based Paint 
Hazard Control Program, the applicant must be a state, Native American 
Tribe, city, county, or other unit of local government. Multiple units 
of a local government (or multiple local governments) may apply as a 
consortium; however, you must identify a lead applicant that will be 
responsible for ensuring compliance with all requirements specified in 
this NOFA. State government and Native American tribal applicants must 
have an EPA approved State Program for certification of lead-based 
paint contractors, inspectors, and risk assessors in accordance with 40 
CFR part 745 in effect on the application deadline date to be eligible 
to apply for Lead-Based Paint Hazard Control Program funds.
    b. To be eligible to apply for the Lead Hazard Reduction 
Demonstration Program, the applicant must be a city, county, or other 
unit of local government. States and Indian Tribes may apply on behalf 
of units of local government within their jurisdiction, if the local 
government designates the state or the Indian Tribe as their applicant. 
Multiple units of a local government (or multiple local governments) 
may apply as part of a consortium; however, you must identify a prime 
applicant that will be responsible for ensuring compliance with all 
requirements specified in this NOFA. State government and Native 
American tribal applicants must have an EPA approved State Program for 
certification of lead-based paint contractors, inspectors, and risk 
assessors in accordance with 40 CFR part 745 in effect on the 
application deadline date to be eligible to apply for Lead Hazard 
Reduction Demonstration Grant funds.
    c. To be eligible to apply for funding under the Operation Lead 
Elimination Action Program (LEAP), the applicant must be a non-profit 
or for-profit entity or firm. For-profit institutions are not allowed 
to earn a fee. Colleges and Universities are also eligible to apply. 
National and local groups are encouraged to apply. States, cities, 
counties and units of local government and their departments are not 
eligible.
    4. Match. See NOFA Criteria by Grant Program Chart in Section III. 
Eligibility Information.

Full Text of Announcement

Section I. Funding Opportunity Description

A. Program Description

    The Lead-Based Paint Hazard Control Program and the Lead Hazard 
Reduction Demonstration Program are authorized by Section 1011 of the 
Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X of 
the Housing and Community Development Act of 1992, Pub. L. 102-550). 
HUD's authority for making funding available under this NOFA for the 
Lead-Based Paint Hazard Control Program, and the Lead Hazard Reduction 
Demonstration Program is the Transportation, Treasury, and Housing and 
Urban Development, the Judiciary, the District of Columbia, Independent 
Agencies Appropriations Act, 2006 (Pub. L. 109-115; approved November 
30, 2005). The Lead-Based Paint Hazard Control Grant Program assists 
states, Native American Tribes and local governments in undertaking 
programs for the identification and control of lead-based paint hazards 
in eligible privately owned rental and owner-occupied housing units. 
The Lead Hazard Reduction Demonstration Program has the same goal as 
Lead Hazard Control Program, but is targeted for urban jurisdictions 
with the highest lead-based paint hazard control needs. The purpose of 
the Operation Lead Elimination Action Program (LEAP) is to provide 
grants to private sector and nonprofit organizations to leverage funds 
for addressing lead hazards in privately owned housing units and 
eliminating lead poisoning as a major public health threat to young 
children. Refer to the HUD Web site http://www.hud.gov/offices/lead/lhc/index.cfm for instructions on downloading the table, ``Eligibility 
of HUD Assisted Housing,'' that lists the HUD-associated housing 
programs that meet the definition of eligible housing under this NOFA. 
HUD is interested in promoting lead hazard control approaches that 
result in the reduction of elevated blood lead levels in children for 
the maximum number of low-income families with children under six years 
of age, for the longest period of time, and that demonstrate techniques 
which are cost-effective, efficient, and replicable elsewhere. For 
purposes of this NOFA, ``children under six years of age'' are defined 
as children up to six years of age. Refer to the HUD Web site http://www.hud.gov/offices/lead/lhc/index.cfm, for instructions on how to 
obtain copies of Title X, HUD's Lead-Safe Housing Regulation, and the 
companion interpretive guidance publication. If you are a hearing-or 
speech-impaired person, you may reach the telephone number via TTY by 
calling the toll-free Federal Information Relay Service at 1-800-877-
8339.
    Because lead-based paint is a national problem, these funds will be 
awarded to programs that will fulfill the following objectives:

[[Page 11816]]

    1. Maximize the combination of children less than six years of age 
protected from lead poisoning and housing units where lead-hazards are 
controlled;
    2. Target the reduction of elevated blood lead levels in children 
for the maximum number of low-income families with children less than 
six years of age, for the longest period of time;
    3. Stimulate lower-cost and cost-effective methods and approaches 
to lead hazard control work that can be replicated;
    4. Build local capacity to safely and effectively address lead 
hazards during lead hazard control, renovation, remodeling, and 
maintenance activities by integrating lead safe work practices into 
housing maintenance, repair, weatherization, rehabilitation and other 
programs that will continue beyond the grant period;
    5. Affirmatively further fair housing and environmental justice;
    6. Develop a comprehensive community approach to address lead 
hazards in housing by mobilizing public and private resources, 
involving cooperation among all levels of government, the private 
sector, and grassroots community-based nonprofit organizations, 
including faith-based organizations, to develop cost-effective methods 
for identifying and controlling lead-based paint hazards;
    7. Establish a public registry (listing) of lead-safe housing or 
inclusion of the lead-safe status of properties in a publicly 
accessible address-based property information system to be 
affirmatively marketed to families with young children; and
    8. To the greatest extent feasible, promote job training, 
employment, and other economic opportunities for low-income and 
minority residents and businesses that are owned by and/or employ 
minorities and low-income persons as defined in 24 CFR 135.5 (see 59 FR 
33881, June 30, 1994).

B. Changes in the FY 2006 Competitive NOFA

    1. The Lead-Based Paint Hazard Control Program, Lead Hazard 
Reduction Demonstration Program, and Operation LEAP are included in 
this single NOFA.
    2. The Competitive Performance-Based Renewal category, under the 
Lead Hazard Control Grant Program, is not offered in this NOFA.
    3. Direct lead hazard control activities are detailed below at 
Section 3 C 1.
    4. Number of pages for the rating factor responses has been 
increased from 15 to 20 pages.
    5. Funding requests greater than the maximum amount for the grant 
program will be deemed ineligible and not reviewed.

Section II. Award Information

A. Funding Available

    From current and past years' funding, approximately $84,911,331 
will be available for the Lead-Based Paint Hazard Control Program, 
approximately $59,615,180 will be available for the Lead-Based Paint 
Hazard Reduction Grant Program, and approximately $14,609,525 will be 
available for Operation Lead Elimination Action Program (LEAP).
    1. Approximately 32 to approximately 40 grants will be awarded to 
applicants for the Lead-Based Paint Hazard Control Program. In 
addition, HUD will award a grant for $3,000,000 in fiscal year 2005 
funds to the City of Charleston, 823 Meeting Street, Charleston, SC 
29403, to resolve a funding error under the fiscal year 2004 Lead-Based 
Paint Hazard Control Program NOFA, in accordance with Sec. VI.A.3 of 
the fiscal year 2004 General Section. Approximately 10 to approximately 
12 grants will be awarded to applicants for the Lead Hazard Reduction 
Demonstration Program, and approximately 4 to approximately 6 grants 
will be awarded to applicants for Operation LEAP. Grant award amounts 
for the Lead-Based Paint Hazard Control Program shall be from 
approximately $1 million up to a maximum of $3 million per grant, for 
the Lead Hazard Reduction Demonstration Program, from approximately $1 
million up to a maximum of $4 million, and for Operation Lead 
Elimination Action Program (LEAP) a maximum of $2 million per grant. 
Applications for amounts larger than the applicable maximum amount for 
a program will be deemed ineligible and will not be reviewed.
    2. The project duration shall be up to 36 months for all grant 
recipients. Period of performance extensions for delays due to 
exceptional conditions beyond the grantee's control will be considered 
by HUD in accordance with 24 CFR 84.25(e)(2) or 85.30(d)(2), as 
applicable, and the OHHLHC Program Guide. Such extensions, when 
granted, are one time only, and for no longer than a period of one year 
from the original period of performance end date.

B. Contracts or Other Formal Arrangements

    1. If selected for funding, grantees are required to maintain a 
contract administration system to ensure sub-grantee and contractor 
conformance with the terms, conditions, and specifications of 
contracts. Grantees must enter into written contracts or agreements 
with sub-grantees and contractors, which identify specific services to 
be provided such as staffing requirements, time periods for the 
performance of work, project budget, and total amount of compensation 
to be provided; methods and documentation requirements for obtaining 
reimbursement of expenses; record keeping and reporting requirements; 
requirements placed upon the sub-grantee or contractor to comply with 
applicable federal laws, regulations, circulars, and Executive Orders; 
and provisions providing the grantee with access to financial and other 
documents and files for the purpose of monitoring sub-grantee or 
contractor performance and compliance with the local contract or 
agreement, and applicable Federal laws, regulations, circulars and 
Executive orders.
    2. All applicants are encouraged to enter into formal arrangements 
with grassroots community-based nonprofit organizations, including 
faith-based organizations, or other community-based organizations, 
particularly if such organizations will be reimbursed for eligible 
activities under this NOFA. (This does not apply to Native American 
Tribes.) These formal arrangements could be a contract, a Memorandum of 
Understanding (MOU), a Memorandum of Agreement (MOA), or a letter of 
commitment. Such relationships should be established prior to the 
actual execution of an award or within 120 days of the effective start 
date of the grant agreement.

Section III. Eligibility Information

    See the General Section for additional eligibility requirements 
applicable to HUD Programs.

A. Eligible Applicants

    See chart below that describes eligible applicants, required match, 
and an amount for direct activities required for each of the three 
programs.

[[Page 11817]]



                                      NOFA Criteria by Grant Program Chart
----------------------------------------------------------------------------------------------------------------
                                                                           Percent of HUD Award
                                                        --------------------------------------------------------
            Programs               Eligible applicants                         Direct lead       Administrative
                                                               Match         hazard  control       and other
                                                                                  costs         allowable costs
----------------------------------------------------------------------------------------------------------------
Lead Hazard Control Program      State, Native American  Minimum 10%......  Minimum 65%......  Administrative
 (LHC).                           Tribe, city, county,                                          Maximum 10%.
                                  or other unit of                                              Balance may be
                                  local government.                                             used for Other
                                  Multiple units of a                                           Allowable Costs.
                                  local government (or
                                  multiple local
                                  governments) may
                                  apply as part of a
                                  consortium.
Lead Hazard Reduction            City, county, or other  Minimum 25%......  Minimum 90%......  Administrative
 Demonstration.                   unit of local                                                 Maximum 10%.
                                  government. Multiple                                          Balance may be
                                  units of a local                                              used for Other
                                  government (or                                                Allowable Costs.
                                  multiple local
                                  governments) may
                                  apply as part of a
                                  consortium.
Operation Lead Elimination       For-profit entity or    No match           Minimum 65%......  Administrative
 Action Program.                  firm. (not to earn a    requirement.                          Maximum 10%.
                                  fee); Non-profit                                              Balance may be
                                  entities; Colleges                                            used for Other
                                  and Universities; and                                         Allowable Costs.
                                  National and Local
                                  Groups.
----------------------------------------------------------------------------------------------------------------

    1. Fiscal Year 2005 awardees of any of the three competitive 
programs detailed in this NOFA, including the Lead-Based Paint Hazard 
Control, Lead Hazard Reduction Demonstration and Operation LEAP, are 
not eligible to apply for any of these three programs during this 
competitive NOFA cycle.
    2. Applicants may submit only one application for each of the three 
competitive programs covered by this NOFA.

B. Cost Sharing or Matching

    This section applies to all three grant programs.
    See NOFA Criteria by Grant Program Chart above. If an applicant 
does not include the minimum 10 percent for lead hazard control or 25 
percent for Lead Hazard Reduction Demonstration match requirements in 
the application, it will be considered ineligible for an award. 
Matching and/or leverage contributions may be in the form of cash 
including private sector funding, or in-kind (non-cash) contributions 
or a combination of these sources. With the exception of Community 
Development Block Grant (CDBG) funds, or other programs that only allow 
their funds to be considered local funds and therefore eligible to be 
used as matching funds, federal funds may not be used to satisfy any 
statutorily required matching requirement, as applicable. Federal funds 
may be used, however, for contributions above the statutory (10 and 25 
percent match) requirement. Program match shall be limited to 
contributions, which would be eligible for payment from grant funds, 
and may be in the form of cash, including private sector funding, or 
in-kind (non-cash) contributions or a combination of these sources. The 
applicant must submit a letter of commitment for the match from each 
organization other than itself that is providing a match, whether cash 
and/or in-kind. The letter must indicate the amount and source of 
match, and detail how the matching funds will be specifically dedicated 
to and integrated into supporting the proposed grant program. The 
signature of the authorized official on the Form SF-424 commits 
matching or other contributed resources of the applicant organization. 
A separate letter from the applicant organization is not required.

C. Other

    1. Eligible Costs and Activities. This section applies to all three 
grant programs unless otherwise specified.
    All lead hazard control activities funded under the Lead-Based 
Paint Hazard Control Program, the Lead Hazard Reduction Demonstration 
Program and Operation LEAP must be conducted in compliance with the 
applicable requirements of HUD's Lead-Safe Housing Regulation, 24 CFR 
part 35, and the companion Interpretive Guidance publication. 
Activities must also comply with any additional requirements in effect 
under a state or Tribal Lead-Based Paint Training and Certification 
Program that has been authorized by the EPA pursuant to 40 CFR 745.320. 
There are, in general, four categories of eligible costs under each 
competitive grant program included in this NOFA, including: direct 
costs for lead-based paint hazard identification and control 
activities, other direct costs, indirect costs, and administrative 
costs.
    a. Description of Direct Lead-Based Paint Hazard Identification and 
Control Activities. Direct costs are defined as the allocable portion 
of allowable costs incurred directly for the purposes of the grant. 
Direct costs for lead hazard control activities consist of lead dust, 
soil and paint-chip testing and associated laboratory costs, the 
purchase or lease of a maximum of two X-ray fluorescence analyzers used 
by the grant program (if not otherwise available) and necessary 
maintenance during the grant period, combined lead paint inspection and 
risk assessments, interim controls, abatement of lead-based paint or 
lead-based paint hazards (but see section C.1(a)(6) for abatement 
limitations), occupant protection and temporary relocation of occupants 
when lead hazard control intervention work supported by this program is 
conducted in a unit, and clearance examinations. Direct costs for lead-
based paint hazard identification and control activities do not include 
blood lead testing of residents or workers, housing rehabilitation 
beyond what is specifically required to carry out effective lead hazard 
control, and training, community education and outreach, applied 
research, purchase of supplies or equipment, or administrative costs 
without which the hazard control could not be completed and maintained.
    (1) Performing lead dust, soil and paint-chip testing, combined 
lead-based paint inspections and risk assessments, and engineering and 
architectural activities that are required for, and in direct support 
of, interim control and lead hazard abatement work, of eligible housing 
units constructed prior to 1978 to determine the presence of lead-based 
paint and/or lead hazards from paint, dust, or soil through the use of 
acceptable testing procedures.
    (2) All laboratory analysis in support of required testing and 
evaluation under this NOFA must be conducted by a laboratory recognized 
for the analysis by the EPA National Lead Laboratory Accreditation 
Program (NLLAP).
    (3) All lead-based paint testing results, summaries of lead-based 
paintwork, and clearances must be

[[Page 11818]]

provided to the owner of the unit, together with a notice describing 
the owner's legal duty to disclose the results to tenants and buyers. 
Files must contain verifiable evidence, such as a signed and dated 
receipt. Refer to 24 CFR 35.125 of the Lead Safe Housing Regulation.
    (4) All lead-based paint hazards identified in a housing unit or 
common area of multifamily housing enrolled in this grant program must 
be controlled or eliminated by either of the following strategies or a 
combination of the two.
    (5) Interim Controls. According to the HUD Guidelines, interim 
controls of lead-based paint hazards including lead-contaminated dust 
and soil in housing must include specialized cleaning techniques to 
address lead dust.
    (6) Lead-Based Paint Hazard Abatement. Abatement is regarded as 
complete abatement of all lead-based paint or lead-based paint hazards 
and is only authorized in states or localities that require complete 
abatement by law. HUD does not consider abatement of all lead hazards 
to be cost effective in most circumstances; therefore, a grantee must 
make a special request in writing prior to conducting complete 
abatement of lead hazards. Abatement of lead-contaminated soil should 
be limited to areas with bare soil in the immediate vicinity of the 
structure (i.e., the drip line or foundation of the unit being treated, 
and children's play areas).
    (7) Undertaking minimal housing rehabilitation activities that are 
specifically required to carry out effective hazard control, and 
without which the hazard control could not be completed and maintained. 
These grant funds may be used for lead hazard control work done in 
conjunction with other housing rehabilitation programs, to the extent 
practicable. HUD encourages integration of this grant program with 
housing rehabilitation, maintenance, weatherization, and other energy 
conservation activities.
    (8) Carrying out temporary relocation of families and individuals 
during the period in which hazard control is conducted and until the 
time the affected unit receives clearance for re-occupancy. If families 
or individuals are temporarily relocated in a project which utilizes 
Community Development Block Grant funds, the guidance and requirements 
of 24 CFR 570.606(b)(2)(i)(D)(1)-(3) must be met. HUD recommends you 
review these regulations when preparing your proposal.
    (9) Conducting clearance dust-wipe testing and laboratory analysis.
    b. Description of Eligible Other Direct Costs.
    (1) Purchasing or leasing supplies having a per-unit cost under 
$5,000 (except for the purchase or lease of up to two X-ray florescence 
analyzers used by the grant program).
    (2) Performing blood lead testing and air sampling to protect the 
health of the hazard control workers, supervisors, and contractors.
    (3) Conducting targeted community awareness, affirmative marketing, 
education or outreach programs on lead hazard control and lead 
poisoning prevention designed to increase the ability of the program to 
deliver lead hazard control services including educating owners of 
rental properties, tenants, and others on the Residential Lead-Based 
Paint Hazard Reduction Act, Lead-Safe Housing Rule, and applicable 
provisions of the Fair Housing Act especially as it pertains to 
familial status (e.g., families with children) and disability 
discrimination, offering educational materials in languages that are 
common in the community other than English, consistent with HUD's 
published LEP Recipient Guidance, 68 FR 70968, and providing training 
on lead-safe maintenance and renovation practices and management. Upon 
request, this also would include making all materials available in 
alternative formats to persons with disabilities (e.g., Braille, audio, 
and large type).
    (4) Supporting data collection, analysis, and evaluation of grant 
program activities. This includes compiling and delivering such data as 
may be required by HUD. This activity is an item under other direct 
costs.
    (5) Preparing a final report at the conclusion of grant activities.
    (6) Conducting required pre-hazard control blood lead testing of 
children under six years of age residing in or frequently visiting 
units undergoing lead hazard control work.
    (7) Providing resources to build capacity for lead-safe housing and 
lead hazard control, including free delivery of HUD-approved lead-safe 
work practices training courses for housing rehabilitation contractors, 
rehabilitation workers, homeowners, renters, painters, remodelers, 
maintenance staff, and others conducting renovation, rehabilitation, 
maintenance or other work in private housing; free delivery of lead 
sampling technician training, lead-based paint worker or contractor 
certification training; and subsidies for licensing or certification 
fees to low-income persons seeking credentials as lead-based paint 
workers or contractors or lead sampling technicians.
    (8) Conducting planning, coordination, and training activities to 
comply with HUD's Lead-Safe Housing Regulation (24 CFR part 35, 
subparts B-R). These activities should support the expansion of a 
workforce properly trained in lead-safe work practices which is 
available to conduct interim controls on HUD-assisted housing covered 
by these regulations.
    (9) Conducting outreach and related activities that are directly 
tied to a matching and/or leveraging strategy, and that will result in 
increased lead hazard control activities in low-income privately owned 
or owner-occupied housing with lead-based paint hazards. If applicants 
propose outreach and/or related activities, keep in mind that these 
activities must be tied to a leveraging strategy. Therefore, you must 
describe when and what this activity will match and/or leverage, and 
how it will be used to address a lead hazard.
    (10) Lead hazard control activities tied directly to a matching 
and/or leveraging strategy and conducted in low- and very low-income 
eligible privately owned owner-occupied or investor-owned rental units. 
All units must be occupied by a family with a child under the age of 
six, except rental properties must be occupied by a family with a child 
under the age of six, or preference provided to a low- and very low-
income family with a child under age six and the rents must be 
affordable for a minimum of 3 years after completion of the final lead 
clearance.
    (11) Participating in applied research, studies, or developing 
information systems to enhance the delivery, analysis, or conduct of 
lead hazard control activities, or to facilitate targeting and 
consolidating resources to further childhood lead poisoning prevention 
efforts.
    c. For reference to the Administrative Cost requirements, please 
see http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    d. For reference to the Indirect Cost requirements, please see 
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    2. Eligibility of HUD-Assisted Housing. The table ``Eligibility of 
HUD-Assisted Housing,'' posted at http://www.hud.gov/offices/adm/grants/fundsavail.cfm, lists the housing units that may participate 
under each of the three competitive programs detailed in this NOFA. 
Only those HUD-assisted units on the list are eligible to participate 
and receive Lead-Based Paint Hazard Control Grant, Lead Hazard 
Reduction Demonstration Grant and Operation LEAP funds.
    3. Threshold Requirements. As an eligible applicant, you must meet 
all of the threshold requirements in Section III.C of the General 
Section as well as

[[Page 11819]]

any specific threshold requirements listed in this subsection. 
Applications will not be funded if they do not meet the threshold 
requirements.
    a. Applicants under the Lead-Based Paint Hazard Control Program are 
required to match 10 percent of the funds requested with other funds or 
resources, while a 25 percent match is required for the Lead Hazard 
Reduction Demonstration Grant Program. There is no match requirement 
for Operation LEAP.
    b. Applicants under the Lead Hazard Reduction Demonstration Program 
must have at least 3,500 pre-1940 occupied rental housing units in 
order to apply under the Lead Hazard Reduction Demonstration Program. 
Failure to provide the number of pre-1940 occupied rental units 
referenced in the Factor 2 Table (Form HUD 96013) will result in the 
application not being rated or ranked. Multiple local governments may 
apply as part of a consortium in an effort to meet the required number 
(3,500) of occupied rental units; however, you must identify a prime 
applicant that will be responsible for ensuring compliance with all 
requirements under this NOFA. No minimum requirement for the number of 
pre-1940 occupied units for Lead Hazard Control and Operation LEAP.
    c. All applicants under the Lead Hazard Reduction Demonstration 
Program must provide the actual number of children with documented 
elevated blood lead levels residing within the jurisdiction(s) where 
the lead hazard control work will be conducted for the 2002, 2003 and 
2004 complete calendar years and identify the source of the data. 
Failure to provide these data will result in the application not being 
rated or ranked.
    d. EPA Authorization. If you are a state government or Native 
American Tribal government, you must have an EPA-authorized Lead-Based 
Paint Training and Certification Program in effect on the application 
deadline date to be eligible to apply for Lead Based Paint Hazard 
Control Grant funds. The approval date in the Federal Register notice 
published by the EPA will be used in determining the Training and 
Certification status of the applicant state or Native American Tribal 
government. If you do not have an EPA authorized program, the 
application will not be rated or ranked.
    e. DUNS Requirement. You will need a Dun and Bradstreet Universal 
Data Numbering System (DUNS) number in order to register and submit 
your electronic application through http://www.grants.gov. Refer to the 
General Section for more information.
    f. Consolidated Plans. (This requirement does not apply to Native 
American Tribes.) You must submit, as an appendix, the current lead-
based paint element from the approved Consolidated Plan or the 
jurisdiction(s) where the lead hazard control will be conducted. In 
lieu of submitting a hard copy of the lead-based paint element from the 
current consolidated plan(s), you may substitute a Web site address. 
The Web site must contain the lead-based paint element of the current 
Consolidated Plan(s). If the jurisdiction does not have a currently 
approved Consolidated Plan, but it is otherwise eligible for this grant 
program, you must include the jurisdiction's abbreviated Consolidated 
Plan, which includes a lead-based paint hazard control strategy 
developed in accordance with 24 CFR 91.235.
    g. An applicant requesting a funding amount greater than the 
maximum grant award amount will be deemed ineligible and not reviewed.
    4. Environmental Requirements. a. Recipients of lead-based paint 
hazard control grants and lead hazard reduction demonstration grants 
must comply with 24 CFR part 58, Environmental Review Procedures for 
Entities Assuming HUD Environmental Responsibilities and must carry out 
environmental review responsibilities as a responsible entity under 
part 58.
    b. Properties assisted with Operation LEAP funds under the 
Department of Housing and Urban Development Appropriations Act, 2006, 
are covered by the provisions of section 305(c) of the Multifamily 
Housing Property Disposition Reform Act of 1994, which are implemented 
by HUD regulations at 24 CFR part 58. Under part 58, a responsible 
entity, usually the unit of general local government, must assume the 
environmental review responsibilities for activities funded under 
Operation LEAP. Under 24 CFR 58.11, if a responsible entity or the 
recipient objects to the responsible entity performing the 
environmental review for Operation LEAP activities, HUD may designate 
another responsible entity to perform the review or may perform the 
environmental review itself under the provisions of 24 CFR part 50.
    c. For all grants under this NOFA, recipients and other 
participants in the project are prohibited from undertaking, or 
committing or expending HUD or non-HUD funds (including HUD leveraged 
or match funds) on a project or activities under this NOFA (other than 
activities listed in 24 CFR 58.34, 58.35(b) or 58.22(f)) until the 
responsible entity completes an environmental review and the applicant 
submits and HUD approves a Request for the Release of Funds and the 
responsible entity's environmental certification (both on form HUD 
7015.15) or, in the case of Operation LEAP grants where HUD has 
determined to perform the environmental review under part 50, HUD has 
completed the review and notified the grantee of its approval. The 
results of the environmental reviews may require that proposed 
activities be modified or proposed sites rejected. For part 58 
procedures, see http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm. For assistance, contact Karen Choi, the Office 
of Healthy Homes and Lead Hazard Control Environmental Officer at (213) 
534-2458 (this is not a toll-free-number) or the HUD Environmental 
Review Officer in the HUD Field Office serving your area. If you are a 
hearing-or speech-impaired person, you may reach the telephone number 
via TTY by calling the toll-free Federal Information Relay Service at 
1-800-877-8339. Recipients of a grant under these funded programs will 
be given additional guidance in these environmental responsibilities.
    5. Administrative and Other Requirements. If awarded, the applicant 
must comply with the requirements below and maintain appropriate 
documentation to demonstrate compliance with the requirements specified 
below. The requirements apply to all grant programs unless otherwise 
specified.
    a. Lead-Based Paint Hazard Reduction Act (Title X of the Housing 
and Community Development Act of 1992), Section 1011 of Title X. 
Section 217 of Public Law 104-134 (the Omnibus Consolidated Rescissions 
and Appropriations Act of 1996, 110 Stat. 1321, approved April 26, 
1996) amended Section 1011(a) of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992 (Title X) to read as follows:
    Section 1011. Grants for Lead-Based Paint Hazard Reduction in 
Target Housing
    ``(a) General Authority. The Secretary is authorized to provide 
grants to eligible applicants to evaluate and reduce lead-based paint 
hazards in housing that is not federally assisted housing, federally 
owned housing, or public housing, in accordance with the provisions of 
this section. Grants shall only be made under this section to provide 
assistance for housing that meets the following criteria--
    (1) For grants made to assist rental housing, at least 50 percent 
of the units must be occupied by or made available

[[Page 11820]]

to families with incomes at or below 50 percent of the area median 
income level and the remaining units shall be occupied or made 
available to families with incomes at or below 80 percent of the area 
median income level, and in all cases the landlord shall give priority 
in renting units assisted under this section, for not less than 3 years 
following the completion of lead abatement activities, to families with 
a child under the age of six years, except that buildings with five or 
more units may have 20 percent of the units occupied by families with 
incomes above 80 percent of area median income level;
    (2) For grants made to assist housing owned by owner-occupants, all 
units assisted with grants under this section shall be the principal 
residence of families with income at or below 80 percent of the area 
median income level, and not less than 90 percent of the units assisted 
with grants under this section shall be occupied by a child under the 
age of six years or shall be units where a child under the age of six 
years spends a significant amount of time visiting * * *''
    (1) Certified and Trained Performers. Funded activities must be 
conducted by persons qualified for the activities according to 24 CFR 
part 35, subparts B-R (possessing certification as abatement 
contractors, risk assessors, inspectors, abatement workers, or sampling 
technicians, or others having been trained in a HUD-approved course in 
lead-safe work practices).
    (2) Lead hazard evaluation and control work must be conducted in 
compliance with HUD's Lead Safe Housing Rule, 24 CFR part 35, the HUD 
Guidelines, and applicable federal, state and local regulations and 
guidance.
    6. Prohibited Practices. You must not engage in the following 
prohibited practices:
    a. Open flame burning or torching;
    b. Machine sanding or grinding without a high-efficiency 
particulate air (HEPA) exhaust control;
    c. Uncontained hydroblasting or high-pressure wash;
    d. Abrasive blasting or sandblasting without HEPA exhaust control;
    e. Heat guns operating above 1,100 degrees Fahrenheit;
    f. Chemical paint strippers containing methylene chloride or other 
volatile hazardous chemicals in a poorly ventilated space; and
    g. Dry scraping or dry sanding, except scraping in conjunction with 
heat guns or around electrical outlets or when treating no more than 
two square feet in any one interior room or space, or totaling no more 
than 20 square feet on exterior surfaces.
    7. Written Policies and Procedures. You must have clearly 
established, written policies and procedures for eligibility, program 
marketing, unit selection, expediting work on homes occupied by 
children with elevated blood lead levels, and all phases of lead hazard 
control, including risk assessment, inspection, development of 
specifications, pre-hazard control blood lead testing, financing, 
temporary relocation and clearance testing. Grantees, subcontractors, 
sub-grantees, sub-recipients, and their contractors must adhere to 
these policies and procedures.
    8. Continued Availability of Lead-Safe Housing to Low-Income 
Families. Units in which lead hazards have been controlled under this 
program shall be occupied by or continue to be available to low-income 
residents as required by Title X (Section 1011). You must maintain a 
publicly available registry (listing) of units in which lead hazards 
have been controlled and ensure that these units are affirmatively 
marketed to agencies and families as suitable housing for families with 
children less than six years of age. The grantee must also provide the 
owner with the lead hazard evaluation and control information generated 
by activities under this grant, so that the owner can comply with his/
her disclosure requirements under 24 CFR part 35, Subpart A.
    9. Testing. In developing your application budget, include costs 
for lead paint inspection, risk assessment, and clearance testing for 
each dwelling that will receive lead hazard control, as follows:
    a. General. All testing and sampling shall comply with the Lead 
Safe Housing and conform to the current HUD Guidelines, the EPA lead 
hazard standards at 40 CFR part 745, and federal, state, or tribal 
regulations developed as part of the appropriate contractor 
certification program, whichever is more stringent. It is particularly 
important to provide this full cycle of testing for lead hazard 
control, including interim controls.
    b. Lead-Based Paint and Lead-Based Paint Hazard Identification. A 
combined lead-based paint inspection and risk assessment is required.
    c. Clearance Testing. If rehabilitation is conducted in conjunction 
with lead hazard control, clearance may be conducted either after the 
lead hazard control work is completed, and again after any subsequent 
rehabilitation work is completed, or after all of the lead hazard 
control and rehabilitation work is completed. Clearance shall be 
successfully completed before re-occupancy.
    10. Blood lead testing. Each child under six years of age should be 
tested for lead poisoning within the six months preceding the lead 
hazard control work. Any child with an elevated blood lead level must 
be referred for appropriate medical follow-up. The standards for such 
testing are described in the Centers for Disease Control and Prevention 
(CDC) publications Preventing Lead Poisoning in Young Children (1991), 
and Screening Young Children for Lead Poisoning: Guidance for State and 
Local Public Health Officials (1997).
    11. Cooperation With Related Research and Evaluation. You shall 
cooperate fully with any research or evaluation sponsored by HUD, CDC, 
EPA or other government agency and associated with this grant program, 
including preservation of project data and records and compiling 
requested information in formats provided by the researchers, 
evaluators or HUD. This also may include the compiling of certain 
relevant local demographic, dwelling unit, and participant data not 
contemplated in your original proposal. Participant data shall be 
subject to the Privacy Rule of the Health Insurance Portability and 
Accountability Act of 1996 (HIPAA). HIPAA and the Privacy Rule can be 
found at http://www.hhs.gov/ocr/hipaa.
    12. Data collection. You will be required to collect, maintain, and 
provide to HUD the data necessary to document and evaluate grant 
program outputs and outcomes.
    13. Financial Control. Financial control systems shall be 
established including methods and procedures to ensure that only grant 
eligible expenses are charged to the grant as reimbursable expenses or 
project match; that appropriate documentation of time worked on and 
charged to the grant is maintained; and that no more than 10 percent of 
grant funds are used for administrative costs and that indirect cost 
allocation plans are updated annually.
    14. Section 3 Employment Opportunities. Please refer to Section 
III.C of the General Section. The requirements of Section 3 of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) are 
applicable to this program. This sub-factor will be evaluated on the 
extent to which an applicant describes how it proposes to:
    a. Provide opportunities to train and employ lower-income residents 
of the project area; and
    b. Award substantial contracts to persons residing in the project 
area.

[[Page 11821]]

    Applicants that demonstrate their responsiveness to the section 3 
requirement may receive up to 2 rating points. Annual submission of 
Form HUD-60002 is required.
    Regulations regarding the provision of Section 3 of the Housing and 
Urban Development Act of 1968 can be located at 24 CFR part 135.
    15. Replacing Existing Resources. Funds received under the grant 
programs covered under this NOFA shall not be used to replace existing 
community resources dedicated to any ongoing project.
    16. Certifications and Assurances. By signing the SF-424, you are 
agreeing to the certifications and assurances listed in the General 
Section and this NOFA.
    17. Code of Conduct. If awarded assistance, you will be required, 
prior to entering into a grant agreement with HUD, to submit a copy of 
your Code of Conduct and describe the methods you will use to ensure 
that all officers, employees, and agents of your organization are aware 
of your Code of Conduct. Refer to the General Section for information 
about conducting business in accordance with HUD's core values and 
ethical standards.
    18. Lead-Safe Work Practice Training Activities. Applicants under 
the Lead-Based Paint Hazard Control Grant Program are encouraged to 
provide resources to promote the expansion of a workforce properly 
trained in lead-safe work practices and which is available to conduct 
interim controls and/or lead hazard abatement as well as follow lead-
safe work practices while performing work on HUD assisted housing units 
and to safely repair, rehabilitate, and maintain other privately owned 
residential property. The effort is permissible under the Lead Hazard 
Reduction Demonstration Program, when funded as part of the 10 percent 
remaining after direct lead hazard control activities are funded under 
this program.
    19. Coordination Among Critical Agencies. If awarded assistance 
under the Lead-Based Paint Hazard Control or Lead Hazard Reduction 
Demonstration programs, applicants shall participate in the state-wide 
or jurisdiction-wide strategic plan to eliminate childhood lead 
poisoning as a major public health problem by 2010, or assist in the 
development of one plan in states or localities that do not have such a 
plan. The CDC strategic elimination plans for state and local childhood 
lead poisoning prevention programs can be downloaded from http://www.cdc.gov/nceh/lead/Strategic%20Elim%20Plans/strategicplans.htm.
    Additionally, if awarded lead hazard control and lead hazard 
demonstration funds, applicants shall enter into or extend existing 
collaborative agreements or arrangements with childhood lead poisoning 
prevention programs among health agencies, housing agencies, community 
development agencies, and code enforcement agencies (or equivalent) for 
their target area(s) local jurisdiction(s), and, for state or tribal 
applicants, with their state or tribal health agencies, housing 
agencies, development agencies, and code enforcement agencies (or 
equivalent). Agreements or arrangements must describe how the health 
department and the housing and/or development agency have or will 
consider enrolling housing units (or multifamily buildings) in which 
one or more children under age 6 years have elevated blood lead levels, 
with priority to housing where repeated and/or severe cases of 
childhood lead poisoning have occurred. (Because of the presence of a 
variety of priorities, it is not a requirement that units with lead-
poisoned children be enrolled, but the process for giving such units 
high priority should be described and implemented.) HUD encourages 
Operation LEAP applicants to enter into such agreements.
    20. Work Plan. Upon award, a work plan shall be developed and 
consist of the measurable quarterly performance goals and specific 
time-phased objectives established for each of the major activities and 
tasks required to implement the program. These major activities and 
tasks are outlined in the Quarterly Progress Reporting System (Form 
HUD-96006) and include: Program Management and Capacity Building 
including data collection and program evaluation; Community Education, 
Outreach and Training; and Lead Hazard Activities including testing, 
interventions conducted, and temporary relocation.
    a. Describe how lead hazard units, especially those known to house 
elevated blood lead levels of children under six years of age, will be 
identified, selected, prioritized, and considered for treatment under 
this grant and/or other programs of the grantee or grantee's team 
members. An elevated blood lead level is defined as an excessive 
absorption of lead that is a confirmed concentration of ten (10) 
micrograms of lead per deciliter of whole blood.
    You must demonstrate how you consider housing units identified by 
local health and child welfare agencies where incidences of childhood 
lead poisoning have occurred, particularly those where multiple 
poisonings have been reported, for enrollment into lead hazard control 
treatment programs, as well as demonstrate the use of other sources of 
information on high priority housing;
    b. Your work plan should address your jurisdiction's Consolidated 
Plan goals for pursuing community planning and development and housing 
programs relative to lead and other housing-related issues that affect 
the health of residents. The work plan must include a detailed strategy 
to:
    (1) Obtain data from state or local health departments or from 
families themselves (either directly, for example, through service 
organizations that families distribute their information) on the 
addresses of housing units in which children have been identified as 
lead poisoned, as required by 24 CFR 91.100(a)(2); and
    (2) Continue or enter into collaborative agreements or arrangements 
with applicable state or local health and child welfare agencies, 
community development organizations, and housing agencies and/or other 
housing organizations to team with HUD Lead Hazard Control, Lead Hazard 
Reduction Demonstration, and LEAP grantees to identify and address 
childhood lead poisoning in the jurisdiction collaboratively, and 
describe the methods for coordinating among these agencies.
    (3) Demonstrate specific steps and/or actions that will be taken to 
ensure that other resources in the community are utilized to increase 
funding, to locate and provide training, and to link with other local 
programs engaged in lead hazard control activities;
    (4) Describe how the project will be managed, and the timeline for 
staffing the program, establishing a lead-based paint contractor pool, 
and obtaining HUD approval for the Request for the Release of Funds 
(HUD Form 7015.15);
    (5) Describe how assistance and funding will flow from you to the 
actual performers of the hazard reduction work;
    (6) Describe the selection process for sub-grantees, sub-
contractors, or sub-recipients;
    (7) Describe the financing mechanism used to support lead hazard 
control work in units (name of administering agency, eligibility 
requirements, type of financing (grant, forgivable or deferred loans, 
private sector financing, etc.)), any owner matching requirement, and 
the terms, conditions, and amounts of assistance available, include 
affordability terms and forgiveness and recapture of funds provisions;
    (8) Perform combined lead-based paint inspection and risk 
assessment

[[Page 11822]]

testing procedures using the HUD Guidelines, applicable sections of the 
Lead Safe Housing Regulations and EPA standards to identify lead 
hazards and to conduct clearance testing.
    (9) Describe the process for developing work specifications and 
bids on properties selected for lead hazard control work;
    (10) The specific intervention methods and clearance procedures to 
be conducted for units enrolled and treated;
    (11) The number of rental-occupied, vacant, and owner-occupied 
units, including the number of single-family and multifamily units, 
proposed for interim controls and hazard abatement;
    (12) The occupant protection and relocation plan that will be 
carried out for residents required to be out of their homes during 
hazard control activities;
    (13) The education, outreach, and training activities to be 
undertaken by the program;
    (14) The overall outcomes for community education, outreach, and 
training activities, including the number of events and the number of 
individuals to receive education, outreach, and training.
    (15) The blood lead testing and other health measures to be 
undertaken to protect children under six years of age and other 
occupants of units undergoing lead hazard control work; and
    (16) The evaluation process used to measure program performance, 
with particular attention given to program performance in the five key 
areas evaluated by OHHLHC on a quarterly basis ( NOFA Rating Factor 5 
response): Number of units inspected and risk assessed; number of units 
cleared of lead hazards; the amount of grant funds disbursed through 
the Line of Credit Control System (LOCCS); the number of persons 
reached through outreach and education efforts; and the number of 
persons trained in lead hazard control courses. For Operation LEAP, 
only the quarterly assessment will include one additional performance 
measure which is the amount of leverage.
    (17) The grantee's accounting, finance, and internal audit 
procedures.
    (a) Procedures for obtaining funding through government resources, 
match, leverage, and other contributed resources,
    (b) Procedures for the procurement process and the reimbursement 
process of vendors, contractors, and sub-grantees
    (18) Quarterly performance benchmarks. The benchmarks for a 36-
month grant are on the Work Plan Development Worksheet with Minimum 
Benchmark Standards for 36 Months--Form HUD-96008, (You can download 
Form HUD-96008 at http://www.hudclips.org/subnonhud/html/forms.htm. and 
can also find it on the HUD OHHLHC Web site at: http://www.hud.gov/offices/lead/lhc/index.cfm.
    The development of your work plan should include and reflect the 
benchmark standards. All applicants are required to complete the Factor 
3 Table--Soundness of Approach, and the Work Plan Development Worksheet 
with Minimum Benchmark Standards for 36 Months--Form HUD-96008.
    21. Detailed budget. A detailed budget submission which identifies 
the total budget (federal share and matching and/or leverage 
contribution) identified on Form HUD-424 CBW with supporting narrative 
and cost justifications for all budget categories of your grant 
request. You must provide a separate estimate for the overall grant 
management element (Administrative Costs), which is more fully defined 
in Section IV.E of this NOFA. All applicants must provide a detailed 
budget for any subcontractors, sub-grantees, or sub-recipients 
receiving greater than 10 percent of the federal budget request. In the 
event of a discrepancy between grant amounts requested in various 
sections of the application, the amount you indicate on the Form SF-424 
will govern as the correct value.
    22. Institutional Review Board (IRB). Indicate if your program 
includes conducting research involving human subjects in a manner which 
requires IRB approval and periodic monitoring under 24 CFR part 60, 
which incorporates the Department of Health and Human Service's 
regulations, at 45 CFR part 46. For additional information on what 
constitutes human subjects, research or how to obtain an institutional 
assurance, see the Department of Health and Human Services, Office of 
Human Research Protection (OHRP) Web site at http://www.hhs.gov/ohrp.

Section IV. Application and Submission Procedures

A. Address To Request Application Package

    See the General Section for specific procedures concerning the 
electronic application submission requirements.
    Guidebook and Further Information: If you have difficulty accessing 
the information, you may call the help desk help line at (800) 518-
GRANTS or e-mailing [email protected]. If you are hearing impaired you 
may reach the numbers above through (800) HUD-2209 (TTY) (these are 
toll-free numbers).

B. Content and Form of Application Submission

    Applicants eligible to apply under this NOFA are to follow the 
submission requirements described in Section IV.C.1.a. below:
    1. Applicant Information.
    a. Application Format. The application narrative response to the 
Rating Factors from new and eligible prior grantees is limited to a 
maximum of 20 pages (excluding appendices and worksheets) of size 8\1/
2\'' x 11'' using a 12-point (minimum) font with not less than \3/4\'' 
margins on all sides. Materials provided in the appendices should 
directly apply to the specific rating factor narrative. Applicants are 
strongly urged not to submit information that is not required and/or 
requested by the NOFA or does not directly apply to a specific 
narrative response. The narrative rating responses should be submitted 
as a single Microsoft Word document file. All attachments must identify 
the related factor in the footer by providing the rating factor and the 
page number (e.g., Factor 1 Attachment, pg. 1), and should be submitted 
as a single zip file, attachment to the electronic application.
    b. Application Checklist (Voluntary). Your application must contain 
all of the required information noted in this NOFA and the General 
Section. These items include the standard forms, and the certifications 
and assurances listed in the General Section that are applicable to 
this NOFA. The forms required for application submission and 
instructions can be found in the application at http://www.grants.gov. 
The ``Checklist and Submission Table of Contents'' below includes a 
list of the required items needed for submitting a complete application 
and receiving consideration for funding. Inclusion of this ``Checklist 
and Submission Table of Contents'' with your proposal is recommended 
but not required.

Checklist and Submission Table of Contents

     Application Checklist (Paper copy applications only).
     Applicant Abstract (limited to a maximum of 2 pages).
     Rating Factor Response (limited to a maximum of 20 
narrative pages plus the following forms).
    1. Capacity of the Applicant and Relevant Organizational 
Experience--Form HUD-96012.
    2. Needs/Extent of the Problem--Form HUD-96013.
    3. Soundness of Approach (Work Plan/Budget)--Form HUD-96014;
    4. Leveraging and Matching Resources--Form HUD-96015

[[Page 11823]]

    5. Achieving Results and Program Evaluation--Logic Model--Form HUD-
96010
     Materials to be submitted in response to rating factors 
(does not count towards 20-page limit).
    Application for Federal Assistance--Form SF-424.
    Survey on Ensuring Equal Opportunity for Applicants--Form SF-424 
Supplement.
    Grant Application Detailed Budget Worksheet--HUD-424 CBW, Total 
Budget (Federal Share and Matching) with Supporting Narrative and Cost 
Justification.
    Disclosure and Update Report--Form HUD-2880.0
    Certification of Consistency with the RC/EZ/EC--II Strategic Plan--
Form HUD-2990.
    Certification of Consistency with the Consolidated Plan--Form HUD-
2991.
    Disclosure of Lobbying Activities (if applicable)--Form SF-LLL.
    Development Worksheet with Minimum Benchmark Standards (36 Months) 
Form HUD-96008.
    Facsimile Transmittal (for electronic applications)--Form HUD-
96011.
    Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers, including the required information (if applicable)--Form HUD-
27300, including required documentation or URL references--
    You Are Our Client Survey--Form HUD-2994-A (optional).
     Threshold Requirements.
    Only those applications that meet the threshold review requirements 
will be rated and ranked. Threshold requirements are identified below:
    a. Lead-Based Paint Element in Consolidated Plan.
    b. 10 Percent (Lead Hazard Control Program) or 25 Percent (Lead 
Hazard Reduction Demonstration Program) Matching Contribution and no 
match requirement for Operation LEAP.
    c. Funding request no greater than the maximum amount for the grant 
program.
     Material in support of the Rating Factors (20 page limit).
    Budget Narrative.
    Match, Leverage, and other sources of contributed resources. Submit 
an itemized breakout of your required matching contribution, including:
    a. Letters or other evidence of commitment from donors; and
    b. The amounts and sources of contributed resources, including 
donated in-kind services.
    c. Applicant Contributors. Provide contracts, Memoranda of 
Understanding or Agreement, letters of commitment or other 
documentation describing the proposed roles of agencies, local broad-
based task forces, participating grassroots community-based nonprofit 
organizations, including faith-based organizations, local businesses, 
and others working with the program.
    d. Consolidated Plan Element. (This requirement does not apply to 
Native American Tribes). You must submit as an appendix a current lead-
based paint element from your current approved Consolidated Plan or the 
jurisdiction(s) where the lead hazard control work will be conducted. 
In lieu of submitting a hard copy of the lead-based paint element from 
your current consolidated plan, you may substitute a Web-site address. 
The Web-site must link directly to the lead-based paint element of a 
current Consolidated Plan. If your jurisdiction does not have a 
currently approved Consolidated Plan, but it is otherwise eligible for 
this grant program, you must also include your jurisdiction's 
abbreviated Consolidated Plan, which includes a lead-based paint hazard 
control strategy in accordance with 24 CFR 91.235. You should include 
the discussion of any lead-based paint issues in your jurisdiction's 
Analysis of Impediments, particularly as it addresses your target 
areas.

C. Submission Dates and Times

    Application Submission Dates: The application deadline date is June 
7, 2006. Refer to the General Section for timely submission 
requirements.

D. Intergovernmental Review

    Not required.

E. Funding Restrictions

    1. Ineligible Activities. You may not use grant funds for any of 
the following ineligible activities:
    a. Purchase of real property.
    b. Purchase or lease of supplies having a per-unit cost in excess 
of $5,000, except for the purchase and lease of up to two X-ray 
fluorescence analyzers used by the grant program;
    c. Chelation or other medical treatment costs related to children 
with Elevated Blood Lead levels (EBLs). Non-federal funds used to cover 
these costs may be counted as part of the required matching 
contribution.
    d. Lead hazard control activities in publicly owned housing, or 
project-based Section 8 housing (this housing stock is not eligible 
under Section 1011 of the Lead-Based Paint Hazard Reduction Act).
    e. Activities that do not comply with the Coastal Barrier Resources 
Act (16 U.S.C. 3501).
    f. Lead-hazard control or rehabilitation of a building or 
manufactured home that is located in an area identified by the Federal 
Emergency Management Agency (FEMA) under the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4001-4128) as having special flood hazards 
unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    (2) Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    (3) Please see http://www.hud.gov/offices/adm/grants/fundsavail.cfm 
for reference to the Administrative Cost requirements.
    (4) Please see http://www.hud.gov/offices/adm/grants/fundsavail.cfm 
for reference to the Indirect Cost requirements.

F. Other Submission Requirements

    Applicants are required to submit applications electronically via 
the Web site http://www.grants.gov. See section IV.F of the General 
Section for additional information on the electronic process and how to 
request a waiver from the requirement if necessary.

Section V. Application Review Information

A. Criteria

    The following section applies to all applicants unless otherwise 
specified.
1. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience (Up to 20 Points Maximum for All Applicants)
    a. Capacity of the Applicant (10 points). This rating factor 
addresses your organizational capacity necessary to successfully 
implement the proposed activities in an efficient manner. All 
applicants must respond to this Rating Factor, including completing the 
Factor 1 Table. The technical merit or threshold compliance of the 
applicant will be rated unless otherwise specified. The ``applicant'' 
includes the applicant organization as a whole, the applicant staff, 
including key personnel responsible for implementing the program, 
grassroots community-based nonprofit organizations, including faith-

[[Page 11824]]

based organizations, sub-contractors, consultants, sub-recipients, and 
members of consortia that are firmly committed to your program.
    Applicants are to list by name and/or position title all key 
personnel, whether currently vacant or contingent upon an award, 
including the percentage of time to be dedicated to the proposed 
program. Key personnel should include, at a minimum, one Project 
Director and one Program Manager. The applicant must describe the 
relevant knowledge and experience of the Project Director and Program 
Manager, and any additional key personnel, who will carry out program 
activities, including the time commitment of each to the proposed 
program. The applicant must describe the proposed roles and 
responsibilities of each key personnel, including any/all relevant 
current or previous experience in the planning and management of large, 
complex and interdisciplinary programs involving housing rehabilitation 
or lead hazard control, childhood lead poisoning prevention, or similar 
work. The day-to-day program manager must be experienced in the 
management of housing rehabilitation or lead hazard control, childhood 
lead poisoning prevention, or similar work involving project 
management, and must be dedicated to the proposed program for a minimum 
of 75 percent of the time. If awarded two or three grants under this 
NOFA, HUD grantees will negotiate 100 percent of total time spent on 
the grants. Additional program staff experience, roles, 
responsibilities and time commitment must also be described.
    Similarly, applicants must list and describe sub-grantees and sub-
contractor organizations that will provide services and carry out 
critical activities for the proposed grant program, including their 
capacity, as demonstrated by experience in initiating and implementing 
related environmental, health, or housing projects. List key personnel 
from each sub-grantee or sub-contractor organization who will provide 
services, their respective roles and responsibilities on the proposed 
program and the time to be dedicated to the proposed program.
    The applicant must demonstrate that it has sufficient personnel or 
will have the capability to retain qualified experts or professionals, 
and be prepared to perform lead-based paint hazard evaluation, lead-
based paint hazard control intervention work, and other proposed 
activities within 120 days of the effective date of the grant award. 
HUD reserves the right to terminate the grant if sufficient personnel 
or qualified experts are not retained within this 120-day period. 
R[eacute]sum[eacute]s (for up to three key personnel) or position 
descriptions for those key personnel to be hired, and organizational 
charts for the grant program must be submitted. Factor 1 Table--Key 
Personnel and Partners, must be completed and submitted.
    b. Relevant Organization Experience (10 points).
    (1) New Applicants. In rating this factor, HUD will consider a new 
applicant's recent, relevant, and demonstrated experience in 
undertaking eligible program activities. Organizational capacity should 
be demonstrated in a table that describes prior experience in 
initiating and implementing lead hazard control efforts and/or related 
environmental, health or housing projects or programs. Applicants must 
indicate how this prior experience will be used in carrying out the 
proposed comprehensive Lead-Based Paint Hazard Control, Lead Hazard 
Reduction Demonstration and Operation LEAP Grant Programs.
    The applicant should include, as an appendix item to this rating 
factor, 1-2-page r[eacute]sum[eacute] of up to three key personnel 
responsible for the grant (e.g., project director, program manager, 
etc). Include a table that lists the relevant and most recent 
experience in initiating and implementing lead hazard control efforts 
and/or related environmental, health or housing projects or programs 
and/or grants awarded (which may also include philanthropic/foundation 
awards for LEAP applicants) that you currently manage or have 
previously managed within the past three years (e.g., Lead Hazard 
Control, CDBG Housing Rehabilitation, Childhood Lead Poisoning 
Prevention Program, Healthy Homes Demonstration, Weatherization, 
Operation LEAP, etc.), an organizational chart for the overall 
organization and the project/grant program, and include the following 
details for each project:
     Federal/state/local/private agency providing the project;
     Title of the project; and
     Name of the Project Director and Program Manager.
     Dollar amount of the project;
     Deliverables planned;
     Deliverables and accomplishments achieved;
     Start and end date of the project;
     Whether or not the project was completed on time;
     Discussion of any significant obstacles and how they were 
resolved.
    HUD's evaluation process will consider an applicant's past 
performance record as reported to HUD in effectively organizing and 
managing its grant operations, in meeting performance and work plan 
benchmarks and goals, and in managing funds, including its ability to 
account for funds appropriately, the timely use of funds received 
either from HUD or other federal, state or local programs, and meeting 
performance milestones. HUD may also use other information relating to 
these items from sources at hand, including public sources such as 
newspapers, Inspector General or Government Accountability Office 
Reports or Findings, hotline complaints, or other sources of 
information that possess merit.
    (2) Current or previous grantee under any of this NOFA's programs. 
HUD will evaluate the applicant's quarterly performance reports for the 
last four (4) quarters as of the most recent reporting year. Based on 
the overall performance rating of the last 4 reporting quarters under 
the OHHLHC Quarterly Progress Reporting System, up to a maximum of 10 
points will be awarded based on the combination of green, yellow, or 
red performance ratings.
2. Rating Factor 2: Need/Extent of the Problem (20 Points Maximum for 
Lead-Based Paint Hazard Control and Lead Hazard Reduction Demonstration 
Programs, and 10 Points Maximum for Operation LEAP)
    This factor refers to whether or not the community where eligible 
lead hazard control activities will be conducted has significant lead-
based paint hazards to be addressed and an urgent need for HUD funding 
to address the problem in your identified target area(s). Each 
applicant will be evaluated and scored in this rating factor based on 
documented need as evidenced by thorough, credible, and applicable data 
and information. The applicant is to complete the Factor 2 Table--Need/
Extent of the Problem.
    Multiple tables (one per target area) are permissible. Provide the 
number of children less than 6 years of age in the target and 
jurisdiction area(s). The data submitted to HUD may be verified using 
data available from the Census, HUD user, other data available to HUD 
and/or in cooperation with the CDC. Points will be awarded in this 
rating factor based on the information documenting the number of 
children with an elevated blood lead level, the number of pre-1978 
housing units (use pre-1980 data, if pre-1978 data are unavailable), 
and the number and percentage of families with incomes at or below 80% 
of the Area Medium Income as determined by HUD within your jurisdiction 
and/or target areas.
    a. Points will be awarded based on the documented number of 
children with an

[[Page 11825]]

EBL entered in the Rating Factor 2 table. Documented Number of Children 
with an Elevated Blood Lead (EBL) (10 Points Maximum for Lead-Based 
Paint Hazard Control and Lead Hazard Reduction Demonstration Programs, 
and 3 Points Maximum for Operation LEAP). Provide the actual number of 
children documented as having an elevated blood lead (EBL) residing 
within the jurisdiction where the lead hazard control work will be 
conducted for the most recent complete calendar year and identify the 
source of the data. HUD will accept data for the most recent of the 
following calendar years: 2003, 2004, and 2005. States must report the 
number in the city, county, or other area where funds will actually be 
used. Consortia of local governments must report the number in the 
cities or counties making up the consortium. Operation LEAP applicants 
must report the EBL data from the designated targeted areas. For the 
purposes of this application, the ``documented number of children'' 
with an EBL is based on the CDC level of concern. A child under six 
years of age with a blood lead level test result equal to or greater 
than 10 micrograms of lead per deciliter of blood, based on a test that 
was performed by a medical health care provider, is considered to have 
an EBL. The actual number of children with an EBL (not an estimate) 
must be included in this application in order to receive points for 
this sub-factor. Do not send the children's names or addresses or other 
identifiers. Failure to provide this number in the application means 
that no points will be awarded for this sub-factor. For you to receive 
maximum points for this rating factor, there must be a direct and 
substantial relationship between your proposed lead hazard control 
activities, Consolidated Plan's lead element, and the documented 
community needs. Since an objective of the program is to prevent at-
risk children from being poisoned, specific attention must be paid to 
documenting the identified need as it applies to any selected targeted 
area(s). Applicants shall complete the Factor 2 Table.
    b. Points will be awarded based on the documented housing market 
data relevant to the specified target area(s) entered in the Rating 
Factor 2 table. (5 Points for Lead-Based Paint Hazard Control and Lead 
Hazard Reduction Demonstration Programs, and 3 Points Maximum for 
Operation LEAP). Points will be awarded for the number of pre-1940 
housing units in the applicant's jurisdiction(s) according to the 
table, ``Points Awarded for Number of Pre-1940 Occupied Rental Housing 
Units in Target Area,'' that can be downloaded from http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Housing Age for the following sub-
categories: Pre-1940, 1940-1949, 1950-1959, 1960-1969, 1970-1979 and 
1980 or newer (Census information includes 1970-1979 category). The 
table shows the number of points awarded based on the number of pre-
1940 housing units in the grant target area(s).
    c. Points will be awarded based on the documented percentage of 
very-low (income less than 50 percent of the area median) and low- 
(income less than 80 percent of the area median) income families, as 
determined by HUD and entered in the Rating Factor 2 table (5 Points 
Maximum for Lead-Based Paint Hazard Control and Lead Hazard Reduction 
Demonstration Grant Programs and 4 Points Maximum for Operation LEAP). 
``Points Awarded for Number of Very Low and Low-Income Percentages of 
Families in Target Area'' can be downloaded from http://www.hud.gov/offices/adm/grants/fundsavail.cfm. The table shows the number of points 
awarded based on the number of very low and low-income percentages of 
families in target area(s).
3. Rating Factor 3: Soundness of Approach (40 Points Maximum for All 
Applicants)
    Applicants for these grant programs shall complete the Rating 
Factor 3 Table Soundness of Approach. All Applicants: Based on analysis 
of internal historical data, lead hazard control grant programs average 
approximately 1 unit for every $8,000 of grant and matching/leveraged 
dollars spent. It is, therefore, anticipated that all programs under 
this NOFA will meet or exceed this standard. If your particular work 
plan will exceed this unit per grant and match or leverage threshold, 
you will be expected to justify and explain the cost per unit ratio. 
This factor addresses the quantity, quality and cost-effectiveness of 
your proposed work plan. The work plan should include specific, 
measurable, and time-phased objectives for each major program activity 
and should reflect benchmark performance standards for unit production, 
expenditures, obtaining match/leverage funds, community outreach and 
education, skills training, and other activities including accounting 
for program activities. These benchmark standards as well as policy 
guidance on developing work plans are available at the HUD Web site: 
http://www.hud.gov/offices/lead/grantfrm/hudgrantee.cfm. This policy 
guidance provides a sample format and outline for developing a Work 
Plan.
    Applicants for Lead-Based Paint Hazard Control and Lead Hazard 
Reduction Demonstration Programs should describe the proposed 
activities and provide HUD with measurable outcome results to be 
achieved with the requested funds. Measurable outcome results should be 
stated in terms relevant to the purpose of the program funds as a 
direct result of the work performed within the performance period of 
the grant (e.g., estimated number of units to be made lead-safe, 
estimated number of children living in units made lead-safe, estimated 
number of persons to be trained to perform lead hazard control 
activities, estimated number of educational programs to be presented 
and/or the number of persons to be served by such programs, and the 
basis for these estimates). Each proposed activity must be eligible in 
accordance with the requirements of this NOFA and meet statutory 
requirements for assistance to low- and very low-income persons.
    Applicants for the Operation Lead Elimination Action Program (LEAP) 
should describe in detail their approach for leveraging private sector 
resources. LEAP is intended to leverage significant private sector 
resources that will then be used to address lead hazards in privately 
owned housing occupied by low- and moderate-income families with 
children less than 6 years of age. Keeping in mind that HUD's Lead-
Based Paint Hazard Control grants average approximately 1 unit for 
every $8,000 of grant and matching dollars spent, therefore, a LEAP 
program should meet or exceed this performance using private resources. 
HUD expects that the leveraged funds in comparison to the HUD funds 
would be substantially greater (for example, a grant applicant is 
proposing to use $4 million in private sector resources with $2 million 
in LEAP funds (a 2:1 ratio)). The number of units the applicant would 
expect to control by these resources would be approximately 500 units. 
Your application should indicate in Rating Factor 4--Leveraging--the 
extent of funding you commit to leverage. Your application should 
include in this Rating Factor 3 your approach for obtaining the 
leveraged funding and your approach to controlling lead-based paint 
hazards in housing using the HUD and leveraged funds.
    a. Lead Hazard Control Work Plan Strategy (20 Points all 
Applicants): Describe the overall work plan goals and time-phased 
strategy to complete work within the 36-month period of performance 
(Form HUD-96008). Describe the methods, schedule and milestones that 
will be used to identify

[[Page 11826]]

and control lead-based paint hazards and to achieve the desired project 
outcomes. Include summary information about the estimated numbers of 
clients to be contacted, units and families enrolled, units to receive 
risk assessments and inspections, units to receive lead hazard control 
work, individuals or groups to be trained, and individuals and groups 
to be reached through education and/or outreach activities.
    Additionally, provide responses to the following: Program 
Management. Describe the overall approach to implement the proposed 
program. Describe how the program will be organized, managed and 
staffed.
    (1) Program Administration and Financial Management. Describe the 
approach and method to successfully administer the proposed program.
    (a) Include details about staff and project oversight/monitoring, 
contract administration (to ensure sub-grantees and contractors conform 
to the terms, conditions and specifications of contracts or other 
formal agreements), and how assistance and funding will flow from the 
grantee to those who will perform work under the proposed program.
    (b) Explain how your proposed technical approach addresses local 
conditions and needs, e.g., especially maximizing the number of 
children protected from lead hazards.
    (c) Discuss the lead hazard control financing strategy, including 
financing eligibility requirements, terms, conditions, dollar limits, 
amounts available for lead hazard control work in the various 
categories (explain) of housing intended for intervention (e.g., 
single-family, multi-family, vacant, owner- or tenant-occupied), and 
who is responsible for establishing, administering and overseeing this 
aspect of the program. Describe how recapture of grants or loan funds 
to owners of assisted units will occur when recipients fail to comply 
with any terms and conditions of the financing arrangement (e.g., 
failure to comply with affordability, affirmatively marketing and 
providing priority to renting units to families with children under six 
years of age, sale of property, etc.). Explain the assistance 
instrument (e.g., grants, deferred loans and/or forgivable loans and 
the basis and schedule for forgiveness), and the role of other 
resources such as private sector financing and matching requirements, 
if any, from rental property owners. Identify the process and those 
responsible for coordination and payment between the program and 
contractors performing the work.
    (2) Program Start-Up. Describe program start-up activities during 
the first 120 days of the grant.
    (a) Provide information about internal and external capacity-
building steps necessary to ensure a smooth and timely start-up phase. 
Provide detailed information about hiring staff, training staff or 
other organizations to provide the knowledge and skills required to 
address lead hazard control, including establishment of a qualified 
contractor pool, and lead poisoning prevention actions that are 
essential for successfully implementing your program (e.g., education, 
testing, housing interventions).
    (b) Include a description of how sub-grantees, sub-contractors or 
sub-recipients are selected to carry out intended activities. If these 
entities have already committed to the program, provide a detailed 
description of previous or existing goals, accomplishments and outcomes 
relative to such collaborative agreements or arrangements with and 
among these agencies. If these collaborative agreements or arrangements 
have not yet been entered into, provide a detailed description to 
address plans and strategies to do so.
    (c) Describe your proposed involvement of grassroots community-
based nonprofit organizations, including faith-based organizations, in 
the proposed activities including the development of consortia. These 
activities may include outreach, community education, marketing, 
inspection, and housing evaluations and interventions.
    (d) Explain the environmental review and Request for Release of 
Funds process, and who is responsible, to obtain the required HUD 
approval for intended lead hazard control work on eligible, enrolled 
units. Include a description of the steps to be taken, and who will be 
responsible, to comply with applicable environmental reviews for 
individual projects.
    (3) Outreach, Recruitment and Unit Enrollment. Describe the methods 
and strategies, including the individuals and/or sub-grantees, sub-
recipients or contractors responsible for marketing and outreach to 
intended target area(s) and/or residents, including recruitment and 
enrollment activities to supply the program with sufficient numbers of 
eligible clients within an established timeframe.
    (a) Describe how you will identify, select, prioritize and enroll 
eligible housing units in which you will undertake lead hazard control 
interventions, especially those known to house EBL children. Include 
the number of eligible privately owned housing units, including the 
number of owner-occupied, rental, vacant, single and/or multi-family 
units to be enrolled.
    (b) Discuss the eligibility criteria for unit selection, who will 
identify and how the program will identify units that meet these 
criteria.
    (c) Describe measures you will perform to sustain recruitment. The 
staff is responsible for both monitoring recruitment status and 
implementing the measures identified to sustain recruitment.
    (d) Discuss possible recruitment problems, impediments that you 
anticipate to recruitment, probability of dropouts and plans to over-
recruit to compensate for dropouts.
    (e) Explain how you will obtain data from state or local health 
departments on the addresses of housing units in which children have 
been identified as lead poisoned. Explain how referrals of eligible 
units will be obtained from childhood lead poisoning prevention 
programs, other health care or housing agencies or health providers 
that serve children.
    (f) Discuss how referrals from the Section 8, Housing Choice 
Voucher program and other agencies that provide housing assistance to 
low-income households with children, including CDBG, HOME Investment 
Partnerships Program-funded housing programs, Weatherization or other 
sources, will be received and processed.
    (g) Describe how you will obtain information in order to document 
the occupants of units assisted, meet the Title X income and family 
composition requirements by identifying key staff who will certify as 
to the eligibility of each unit assisted, based on the determination of 
income, and when required, the presence of a child or children under 
six years of age.
    (h) Discuss the degree to which your proposed program focuses on 
eligible privately owned housing units occupied or to be occupied by 
low-income families with children under six years of age. Include in 
this discussion, details on how you will consider, prioritize and treat 
units known to house one or more lead poisoned children.
    (i) Describe your planned approach to control lead hazards in 
vacant and/or occupied units before children are poisoned.
    (j) Indicate how you intend to respond to the needs of EBL children 
housed in units located outside of the target area(s).
    (k) Address the issue of patient confidentiality per the 
requirements of the Health Insurance Portability and Accountability Act 
of 1996 (HIPAA), as

[[Page 11827]]

it relates to the release of addresses of units where children have 
been poisoned by lead-based paint hazards within your jurisdiction(s). 
Provide thorough details of all security measures to be taken to ensure 
that the privacy of patient information obtained for the purposes of 
public health services conducted through the lead hazard control 
program will be safeguarded.
    b. Technical Approach/Lead Hazard Control Intervention (10 Points 
for all Applicants). Applicants shall describe the technical approach 
and associated costs for testing enrolled units, blood-lead testing of 
children in enrolled units, lead hazard control methods and strategies, 
occupant protection and temporary relocation.
    Describe who will perform the process of conducting combined lead-
based paint inspections and risk assessments in eligible privately 
owned housing to confirm the presence of lead-based paint hazards in 
enrolled units to receive lead hazard control work. Explain how you 
will ensure that all information regarding lead hazard control work, 
lead-based paint test results, etc. are provided to property owners, 
including the provision of a statement describing the owner's legal 
obligation to disclose the results to tenants (before initial leasing, 
or before lease renewal with changes) and buyers (prior to sale) per 
the requirements of 24 CFR part 35, subpart A. Disclosure of other 
identified housing-related health or safety hazards to the owner of the 
unit, for purposes of remediation, is encouraged but not required. 
Describe your testing methods, schedule, and costs for combined lead-
based paint inspections and risk assessments and clearance 
examinations. If you propose to use a more restrictive standard than 
the HUD/EPA thresholds (e.g., less than 0.5 percent or 1.0 milligrams/
square centimeter for lead in paint, or less than 40, 250, 400 
micrograms/square foot for lead in dust on floors, sills and troughs, 
respectively, or less than 400 parts per million (ppm) in bare soil in 
children's play areas and 1200 ppm for bare soil in the rest of the 
yard) identify the standard(s) that will be used. All testing shall be 
performed in accordance with applicable regulations.
    (1) Describe the methods, measures and cost for performing blood 
lead testing in children less than six years of age.
    (a) Describe strategies to increase blood lead testing of children 
within the target area(s).
    (b) Explain who will be responsible for ensuring and how you will 
ensure that all children less than six years of age who occupy units to 
be assisted with lead hazard control work receive blood lead testing 
within six months of commencement of work on the unit.
    (c) Identify the individual responsible for and measures to ensure 
that children identified with an elevated blood-lead level are referred 
to appropriate medical care and how patient confidentiality, privacy 
and the security of medical information is protected as required by the 
Health Insurance Portability and Accountability Act of 1996 (HIPAA).
    (2) Describe the lead hazard control methods and strategies you 
will undertake and the number of single family and multi-family units 
that you will treat for each method selected (e.g., interim controls 
and/or hazard abatement), including the estimated cost for each 
strategy per unit type and the basis for those estimates. Applicants 
should assume that interim controls are the preferred approach for 
their strategies and project unit output targets accordingly.
    (a) Discuss efforts to incorporate cost-effective lead hazard 
control methods.
    (b) If applicants maintain that approaches other than interim 
controls are necessary, a justification is necessary. For example, 
abatement might be justified in an area where significant amounts of 
low-income housing stock are highly distressed or where lead hazard 
control work is being combined with rehabilitation. Where highly 
distressed housing stock exists, applicants should explain why options 
for households to move to lead-safe housing are not viable.
    (c) Complete abatement in all lead-based painted surfaces in all 
units is generally not an accepted strategy. In cases where only a few 
surfaces have identified lead-based paint hazards and abatement is 
cost-effective, the applicant must provide a detailed rationale for 
selecting complete abatement as a strategy.
    (3) Indicate the individual or entity responsible for, and describe 
the process for developing the work specifications and the lead hazard 
control contractor bid and selection process (i.e., the contracting) on 
properties selected for lead hazard control work. Explain the 
management process to ensure the cost-effectiveness of intended lead 
hazard control methods. Explain the coordination of germane activities 
among lead hazard control, rehabilitation, weatherization, and other 
contractors performing work other than lead hazard control.
    (4) Describe your plan and the individual(s) responsible for 
occupant protection and the temporary relocation (Information on 
Relocation Guidelines will appear on the Web site) of occupants of 
units selected to receive lead hazard control work. Describe strategies 
to avoid overnight relocation in small-scale projects consistent with 
applicable subsections of HUD's Lead Safe Housing Regulations. Your 
plan should address the use of safe houses and other temporary housing 
arrangements, storage of household goods, stipends, incentives, etc.
    (5) Describe who will ensure and how the applicant will ensure that 
contractors, property owners and maintenance personnel performing 
interim controls and lead hazard abatement work are properly trained 
and/or certified, and how work will be monitored and supervised to 
ensure that contractors perform work of reasonable quality in 
compliance with work specifications and applicable federal regulations.
    (6) Provide a realistic schedule for completing key program 
activities and outputs, by quarter, so that all activities and outputs 
can be completed before or within the grant period of performance. Key 
production activities include unit enrollment, lead-based paint 
inspection and risk assessments, completion and clearance of units.
    (7) Describe the estimated elapsed timeframe for treating a typical 
unit that will receive lead hazard control work, from referral and 
intake to completion and clearance. Estimate the amount of time 
required to treat a typical unit to receive lead hazard control work. 
Explain how the program will accommodate emergency referrals (e.g., 
units occupied by a child under six years of age with an EBL).
    (8) Describe the workflow and production control methods. Provide 
guidelines and/or flowcharts that demonstrate the agency and team 
member responsibilities for each step in the unit production process 
(from intake and enrollment to completion and clearance of units). 
Describe how coordination and hand-offs from individuals or agencies to 
and from each step in the unit production process will be carried out. 
Discuss how the actual production status of units, from intake and 
enrollment to completion and clearance, will be monitored, and how and 
when impediments to production will be identified and remedied.
    (9) Explain how the proposed program will integrate and stage 
proposed lead hazard control activities with rehabilitation (or 
weatherization, Healthy Homes Demonstration, etc.). Identify the 
individuals and agencies to coordinate these efforts and the number of 
units anticipated to be blended from these other programs and 
resources.

[[Page 11828]]

    c. Economic Opportunity (Up to 7 maximum points for all 
applicants). Describe the individual or agency responsible for the 
promotion, recruitment, and provision of training in lead-safe work 
practices and other lead certification disciplines (e.g., supervisor, 
worker, risk assessor, inspector, etc.) to individuals and contractors 
in housing related trades, such as painters, remodelers, renovators, 
maintenance personnel, rehabilitation specialists, and others. Also, 
describe the methods you will employ to promote, recruit and provide 
the training.
    (1) Section 3 Requirement (2 of 7 points). Detail the means to be 
used to provide appropriate economic opportunities to residents and 
businesses of the target area, in compliance with Section 3 of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and HUD's 
implementing rules at 24 CFR part 135. Describe how you will accomplish 
said Section 3 requirements by identifying the number of individuals to 
receive such training per discipline, the schedule for delivering said 
training opportunities for low and very low-income persons living 
within the applicant's jurisdiction, and how trained individuals will 
be linked to employment opportunities with businesses owned by low and 
very low-income persons living within the grantee's jurisdiction.
    (2) Lead Hazard Control Outreach and Coordination (5 of 7 points).
    (a) Coordination on Health Programs.
    (i) Describe your involvement in coordination among critical 
agencies, including participation in the CDC state-wide or 
jurisdiction-wide strategic plan to eliminate childhood lead poisoning 
by 2010.
    (ii) Describe your involvement in collaborative agreements or 
arrangements with childhood lead poisoning prevention programs among 
health agencies, housing agencies, community development agencies, and 
code enforcement agencies (or equivalent) for the target jurisdiction, 
as applicable. Applicants shall include a description of their previous 
or existing goals, accomplishments, and outcomes relative to such 
collaborative agreements or arrangements with and among these agencies. 
If these collaborative agreements or arrangements have not yet been 
entered into, a detailed description to address plans and strategies to 
do so shall be provided.
    (iii) Describe the learning opportunities to be made available to 
community members, including families, workers, small businesses and 
others, to help develop a strategic community health education model 
that identifies lead-related health hazards and their solutions, and 
educates community members and affects wider efforts in the applicant's 
targeted area. Applicants shall discuss the opportunity-to-learn 
approaches to educate children, parents, workers, business people, and 
other community members about lead poisoning prevention and lead hazard 
control. Include how the proposed educational program will continue to 
meet the needs of those children already living in units to receive 
lead hazard control work.
    (b) Lead Hazard Control Outreach and Community Private Sector 
Involvement.
    (i) Applicants are encouraged to solicit participation of 
grassroots community-based and private sector organizations, including 
faith-based organizations to accomplish outreach and community 
involvement activities intended to build long-term capacity to sustain 
accomplishments in the target area.
    (ii) Describe the role of grassroots community-based nonprofit 
organizations, including faith-based organizations, in specific program 
activities (e.g., hazard evaluation and control, monitoring, awareness, 
education and outreach within the community).
    (c) Proposed Methods of Communication and Outreach.
    (i) Describe how the applicant will ensure that outreach and 
related education commitments by sub-grantees and/or sub-contractors 
will be honored and executed.
    (ii) Identify the individuals and/or entities responsible for 
community education and the delivery methods. Include a brief 
description of the proposed curriculum or subjects to be communicated, 
and the groups to be targeted to receive said education.
    (iii) Explain how the intended education program(s) will be 
culturally sensitive, targeted, and linguistically appropriate. 
Identify the means available to supply the educational materials in 
other languages (identify all that apply) common to the community.
    (iv) Include the estimated number of individuals to receive the 
intended education and the estimated number of events to be delivered.
    (d) Affirmatively Furthering Fair Housing.
    (i) Describe strategies and methodologies that affirmatively 
further fair housing and increase access to lead-safe housing for all 
segments of the population: homeowners, owners of rental properties, 
and tenants.
    (ii) Identify who will ensure and how the applicant will ensure 
that the program will continue to affirmatively market and match 
treated units with low-income families with children less than six 
years of age in the future.
    (iii) Explain how this outreach strategy will avoid housing 
discrimination against families with young children, and how families 
will have adequate, lead-safe housing choices in the future. This 
strategy could include plans to develop and implement a registry of 
lead-safe housing that is available to the public, or to incorporate 
the inclusion of the lead-safe status of properties in another publicly 
accessible address-based property information system. The strategy 
could also include affirmatively marketing your services to those 
populations least likely to apply and who may not be served by any of 
the organizations working with you or the grantee team.
    d. HUD's Departmental Policy Priorities and Consolidated Plan (6 
Points for all applicants; each policy priority is 1 point, except 
Removal of Regulatory Barriers (#4) is 2 rating points--HUD Form 27300 
is required to receive point (s)). Indicate if, and describe how, you 
will address any of HUD's departmental policy priorities (see General 
Section for more detailed explanation of HUD's policy priorities). 
Applicants shall also provide evidence of the priority that the 
community's Consolidated Plan and Analysis of Impediments to Fair 
Housing Choice has placed on addressing the needs described.
    The policy priorities that are applicable to this NOFA, and which 
the applicant should address, are: (1) Improving our Nation's 
Communities (focus on distressed communities); (2) Providing Full and 
Equal Access to Grassroots Community-based Nonprofit Organizations, 
including Faith-based Organizations in HUD Program Implementation; (3) 
Participation of Minority-Serving Institutions in HUD Programs; (4) 
Removal of Regulatory Barriers to Affordable Housing; and (5) Promoting 
Energy Efficiency and Energy Star. HUD expects the applicants to 
implement Energy Star building techniques and utilize Energy Star 
appliances whenever activities of the grant afford the opportunity. 
(For information on Energy Star Programs and Appliances, see http://www.epa.gov/epahome/athome.htm.
    (1) Describe how the proposed program would contribute to 
satisfying the stated needs in the Consolidated Plan or Indian Housing 
Plan, and

[[Page 11829]]

eliminate impediments identified in the Analysis of Impediments (AI).
    (2) Describe how your strategy will provide long-term benefits to 
families with children less than six years of age.
    e. Data Collection and other Program Support Activities (2 points 
for all applicants).
    (1) Identify and discuss the specific methods you will use (in 
addition to HUD reporting requirements) to document activities, 
progress, program effectiveness, and how changes necessary to improve 
performance will be identified and implemented. Explain who is 
responsible and how you will collect, document and report on 
information collected.
    (2) Describe how databases, including Web sites, computer, paper or 
other formats, will incorporate the provisions of the Privacy Act of 
1974, such that the addresses of enrolled, treated and/or cleared 
housing units shall not include personal information that could 
identify any child affected.
    (3) Provide a detailed description of any proposed participation in 
research activities, studies, or development of information systems 
designed to enhance the delivery, analysis, or conduct of lead hazard 
control activities, or that will facilitate the targeting and pooling 
of resources to further childhood lead poisoning prevention efforts. If 
you are proposing to participate in research activities, describe the 
objectives, methodology, and impact of the proposed research 
activities.
4. Rating Factor 4: Matching and Leveraging Resources (10 Points 
Maximum for Lead-Based Paint Hazard Control and Lead Hazard Reduction 
Demonstration Program, and 20 Points Maximum for Operation LEAP)
    This rating factor applies to all programs unless otherwise 
specified. This factor addresses your ability to obtain other community 
and private sector funds that can be combined with HUD's program 
resources to achieve program objectives. In evaluating this factor, HUD 
will primarily consider the amount of match and/or leveraged funding 
you commit to provide (in relation to the amount of HUD funding you 
request). In evaluating this factor, HUD will consider the extent to 
which you have established working relationships with other entities to 
get additional funds or commitments to increase the effectiveness of 
the proposed program activities. Describe how you will obtain 
information in order to document the occupants of units assisted to 
meet Title X income and family composition requirements. Identify the 
key staff who will certify as to the eligibility of each unit assisted 
under the grant based on the determination of income, and when 
required, the presence of a child under six years of age. Funds may 
include cash or in-kind contributions of services, equipment, or 
supplies allocated to the proposed program. Funds may be provided by 
governmental entities, public, or private organizations, and other 
entities teaming with you. Matching and other contribution arrangements 
(other funds not meant for direct eligible activities under this 
program) with rental property owners may have the benefits of 
increasing the efficiency of public lead hazard identification and 
control expenditures and creating a financial stake for rental property 
owners in the quality of lead hazard control work. Contractual or other 
formal relationships with grassroots community-based nonprofit 
organizations, including faith-based organizations, are a requirement 
for state and local government applicants. Documentation of 
relationships with grassroots community-based nonprofit organizations, 
including faith-based organizations, must be provided in this 
application in the form of either signed agreements or commitment 
letters from organization officials who have the authority to commit 
the organization. This requirement does not apply to Native American 
Tribe applicants. You also may team with other program funding 
recipients to coordinate the use of funds in your target area(s).
    a. Strategy and Approach (5 points Lead-Based Paint Hazard Control 
and Lead Hazard Reduction Demonstration Program, and 15 points maximum 
for Operation LEAP).
    (1) Describe the proposed strategy for leveraging (e.g., private 
sector for Operation LEAP and public and private for Lead-Based Paint 
Hazard Control and Lead Hazard Reduction Demonstration Program) 
resources including:
    (a) Target audiences/constituencies;
    (b) Use of contractors/subgrantees/team organizations and their 
method of selection;
    (c) Methods of outreach/promotion;
    (d) Types of leveraging to be employed;
    (e) Proposed use and distribution of funds/resources leveraged;
    (f) Overall project management and coordination; and
    (g) Proposed schedule of activities within the 36-month period of 
performance;
    b. Matching and/or Leveraging Contributions (5 maximum points for 
all applicants). Points based on the documented leverage funding will 
be awarded based on the charts below.
    (1) Matching and leveraged funds must be shown to be specifically 
dedicated to and integrated into supporting activities. Refer to 
Section III.B, Cost Sharing or Matching Requirements for additional 
information. Project match and/or leverage shall be limited to 
contributions which would be eligible for payment from grant funds, and 
may be in the form of cash, including private sector funding, or in-
kind (non-cash) contributions or a combination of these resources. 
Leverage may be in the form of cash from private sector funding or 
other resources or in the form of non-cash contributions or a 
combination of these resources. You may not include any federal funds 
as part of the match, unless those funds are specifically permitted by 
statute to be used as matching funds, such as CDBG funds. Other funds 
from the private sector or other sources committed to the program that 
exceed the required match, if any, will provide points for this rating 
factor. Contributions (match funds or other contributed resources) 
above any statutory minimum match may include funds from other 
federally funded programs, and/or state, local, charity, nonprofit or 
for-profit entities. The signature of the authorized official on the 
Form SF-424 commits matching or other contributed resources of the 
applicant organization.
    Staff in-kind contributions should be given a monetary value based 
on the local market value of the staff skills; you are responsible for 
tracking the number of labor hours provided in the match for each labor 
category. If you do not provide letters from contributors specifying 
details and the amount of the actual contributions, those contributions 
will not be counted. Contributions required of rental property owners 
may be included as part of your match. You should document and provide 
the amount of the match and/or leverage from each funding source.
    Applicants will not receive full points under this rating factor if 
they do not submit evidence of a firm commitment and the appropriate 
use of match and/or leveraged resources under the grant program. Such 
evidence must be provided in the form of letters of firm commitment, 
memoranda of understanding, or other signed agreements to participate 
from those entities identified as team members in your application. 
Each letter of commitment, memorandum of understanding, or agreement to 
participate should include the

[[Page 11830]]

organization's name, the proposed level of commitment, and the 
responsibilities as they relate to your proposed program. The 
commitment must be signed by an official of the organization legally 
able to make commitments on behalf of the organization and should be 
submitted at the time of the application submission. Describe the role 
of grassroots community-based nonprofit organizations, including faith-
based organizations, in specific program activities, such as hazard 
evaluation and control; monitoring; and awareness, education, and 
outreach within the community. Describe how you will ensure that 
commitments to sub-grantees specified in your proposal will be honored 
and executed, contingent upon an award from HUD.
    The applicant is encouraged to employ creativity and initiative in 
achieving the objectives of the program. Some examples of possible 
strategies/approaches include the following:
    (a) Enlisting the support and resource commitment of financial 
institutions, foundations, private industry, the general public, 
property owners, and others to make residential housing lead-safe and 
eliminate lead poisoning as a public health threat to children;
    (b) Soliciting the support of national building materials 
providers, building component manufacturers, and housing-related 
national retail outlets to donate money and/or materials to lead hazard 
control programs in housing and health departments, landlords and 
owner-occupants to eliminate lead-based paint hazards in privately 
owned low-income dwellings. For example, a window, wallboard, or paint 
manufacturer/retailer could donate or coordinate the donation and 
distribution of windows, wallboard, or paint to lead-based paint hazard 
control and/or lead hazard control elements of rehabilitation projects 
throughout the country. This strategy could also include the 
distribution of discount coupons for purchases of paint or other 
materials from national suppliers for lead-based paint hazard control 
projects;
    (c) Forming teams with banks or other mortgage or financial 
institutions willing to provide no- or low-interest home improvement 
loans to finance lead hazard control activities and abatement measures 
among low-income recipients who would not otherwise be served. By 
participating, banks could fulfill a major element of their 
responsibilities under the Community Reinvestment Act;
    (d) Forming teams to facilitate the coordination and distribution 
of donated building materials, such as windows, trim molding, or paint, 
etc. to local projects involved in lead hazard control programs;
    (e) Identifying and facilitating the availability and use of 
temporary relocation facilities for families who need to move out of 
their dwellings while lead hazard control work is being undertaken. For 
example, hotel chains, colleges, and other lead-safe sites could be 
contacted to make housing available for the temporary relocation of 
families during lead hazard control;
    (f) Working with landlords, tenant groups and others to form 
consortia or otherwise engage landlords and owner-occupants to enroll 
their eligible housing units in local lead hazard control or 
rehabilitation programs. The applicant should obtain commitments from 
landlords to provide matching resources for work to be done on their 
units. For example, the lead hazard control program could offer 
landlords grant funds for replacement windows if the landlords 
contribute the cost of additional repairs (such as basic system 
upgrades, or other rehabilitation work including painting and 
maintenance) that is associated with lead hazard control. To encourage 
such commitments, efforts should be made to educate landlords about the 
primary benefits (effect on children's health) and supplementary 
benefits that can result from lead hazard reduction work such as 
improving an apartment's physical condition and marketability;
    (g) Expanding dust testing and clearance testing, especially in 
high-risk communities;
    (h) Promoting homebuilder, remodeler, or contractor associations to 
coordinate efforts to reduce lead hazards by contributing technical 
assistance, training, presentations and materials and/or labor to lead 
hazard control efforts;
    (i) Encouraging landscaping firms, nurseries, and landscape 
architects to contribute lead-safe soil, mulch, and other forms of 
vegetation cover and shrubbery designed to mitigate lead contamination 
of soil around the exterior/perimeter and play areas of affected 
housing units;
    (j) Working with health, housing, and community development 
organizations or other entities to conduct lead poisoning prevention 
activities, including efforts to plan, participate in, and/or 
facilitate strategic planning to eliminate lead poisoning as a public 
health threat to young children by 2010. As part of this effort, the 
applicant should describe the process for considering enrolling housing 
units (or multi-family buildings) in which one or more children under 
age 6 years have EBLs, with priority to housing where repeated and/or 
severe cases of childhood lead poisoning have occurred. (Because of the 
presence of a variety of priorities, it is not a requirement that units 
with lead-poisoned children be enrolled, but the process for giving 
such units high priority should be described and implemented.);
    (k) Working with grassroots nonprofit community organizations, 
including faith-based or other community-based organizations, that are 
committed to improving the quality of life of young children in high 
risk housing; and
    (l) Providing training for significant numbers of trades people to 
implement lead-safe work practices, such as window replacement and 
weatherization work

                        Operation LEAP Applicants
------------------------------------------------------------------------
                                                                Points
 Documented leverage above requested HUD amount  (percent)     awarded
------------------------------------------------------------------------
<=50.......................................................            0
>50-<=100..................................................            1
>100-<=150.................................................            2
>150-<=200.................................................            3
>200-<=300.................................................            4
>300.......................................................            5
------------------------------------------------------------------------


                     Lead Hazard Control Applicants
------------------------------------------------------------------------
 Documented match and other contributions of the requested      Points
                   HUD amount  (percent)                       awarded
------------------------------------------------------------------------
10.........................................................            0
>10-<=20...................................................            1
>20-<=30...................................................            2
>30-<=40...................................................            3
>40-<=50...................................................            4
>50........................................................            5
------------------------------------------------------------------------


             Lead Hazard Reduction Demonstration Applicants
------------------------------------------------------------------------
 Documented match and other contributions of the requested      Points
                   HUD amount  (percent)                       awarded
------------------------------------------------------------------------
25.........................................................            0
>25-<=30...................................................            1
>30-<=35...................................................            2
>35-<=40...................................................            3
>40-<=50...................................................            4
>50........................................................            5
------------------------------------------------------------------------

5. Rating Factor 5: Achieving Results and Program Evaluation (10 Points 
Maximum for All Applicants)
    This rating factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability.
    a. Describe in detail your needs and service activities, identify 
the outputs

[[Page 11831]]

and short-term, intermediate-term and long-term outcomes (5 points).
    (1) State clearly the project activities including specific goals 
(``benchmarks'') of each activity and how you will achieve those goals.
    (2) Describe how you will measure the results. Provide your goals, 
inputs, activities, outcomes and performance benchmarks (goals) for the 
entire grant period. In the narrative, explain how you will document 
and track your goals, program activities, and schedules. Identify the 
procedures you will follow to make adjustments to your work plan to 
improve performance if benchmarks are not met within established 
timeframes.
    b. Logic Model (5 points).
    (1) Applicants must complete and return the Form HUD-96010. 
Information about developing a Logic Model is available at: http://www.hud.gov/offices/admin/grants/fundsavail.cfm. HUD is moving to a 
standardized ``Master'' Logic Model from which you can select needs, 
activities, and outcomes appropriate to your program. See the General 
Section for detailed information on use of the ``Master'' Logic Model. 
HUD is requiring grantees to use program-specific questions to self-
evaluate the management and performance of their program. Training on 
HUD's logic model and the reporting requirements for addressing the 
Management questions will be provided via satellite broadcast. In 
evaluating Rating Factor 5, HUD will consider how you have described 
the benefits and outcome measures of your program. HUD will also 
consider the evaluation plan, to ensure the project is on schedule and 
within budget. For FY2006, HUD is considering a new concept for the 
Logic Model. The new concept is a Return on Investment statement. HUD 
will be publishing a separate notice on the ROI concept.
    (2) Performance indicators should be objectively quantifiable and 
should measure actual achievements against anticipated achievements. 
Step 1. The planning component of the logic model should identify the 
problem or need and develop a plan. Step 2. The intervention component 
of the logic model should identify the kinds of services, activities, 
and outputs projected. Step 3. The impact component of the logic model 
should identify the projected outcomes. Step 4. The accountability 
(phase one) component of the logic model should include data sources, 
measurement, and reporting tools. Step 5. The accountability (phase 
two) component of the logic model should include the evaluation 
methodology or the evaluation process. As a planning tool, the logic 
model can provide the statement of need and also provide the rationale 
for the proposed service or activity. For goals or benchmarks, the 
logic model can provide a set of quantifiable goals including 
timeframes. These goals allow you, the applicant, and HUD to monitor 
and assess your progress in achieving your program work plan. The 
process for the achievement of outcome goals should include identifying 
the expected outcome and the estimated number needed to achieve the 
goal or the expected outcome in terms of the community impact or 
changes in economic and social status. The following describes what are 
measurement-reporting tools. Some examples are survey instruments; 
attendance log; case report; pre-post tests; or waiting lists. Describe 
where data are maintained, for example, central databases; individual 
case records; specialized access databases, tax assessor databases; and 
local precinct. Also, identify the location where the database is 
maintained, updated, etc., for example, on-site, subcontractor, or 
specify (e.g., identify what the other is).
6. Bonus Points (2 Rating Points for All Programs)
    This NOFA provides for the award of two bonus points for eligible 
activities/projects that the applicant proposes to locate in federally 
designated Empowerment Zones (EZs), Renewal Communities (RCs), or 
Enterprise Communities designated by United States Department of 
Agriculture (USDA) in round II (EC-IIs) and that are certified to be 
consistent with the area's strategic plan or RC Tax Incentive 
Utilization Plan (TIUP). Discuss whether any of the proposed activities 
will occur in any of these areas and how they will benefit the 
residents of those zones or communities. Applicants must submit a 
completed Certification of Consistency with the RC/EZ/EC-II Strategic 
Plan--Form HUD-2990, and also meet the requirements listed in the 
General Section for a possible award of two bonus points.

B. Reviews and Selection Process

1. Rating and Ranking. Please Refer to the General Section
    a. Only those applications that meet the threshold review 
requirements will be rated and ranked. HUD intends to fund the highest 
ranked applications in each category receiving a minimum score of 75 
within the limits of funding.
    b. Remaining Funds. Refer to the General Section for HUD's 
procedures if funds remain after all selections have been made within a 
category.
    c. The scoring criteria to be used to award the maximum points for 
this NOFA are how fully and thoroughly the applicant answers each item 
listed in each rating factor. Criteria may be obtained at http://www.hud.gov/offices/lead/index.cfm.
2. Factors for Award Used To Rate and Rank Applications
    a. Implementing HUD's Strategic Framework and Demonstrating 
Results. HUD is committed to ensuring that programs result in the 
achievement of HUD's strategic mission. To support this effort, grant 
applications submitted for HUD programs will be rated on how well they 
tie proposed outcomes to HUD's policy priorities and Annual Goals and 
Objectives, and the quality of proposed Evaluation and Monitoring 
Plans.
    b. The maximum number of points to be awarded is 102. This maximum 
includes two bonus points as described in the General Section.
    c. The factors for rating and ranking eligible grantees under all 
categories, and the maximum points for each factor are stated below:

------------------------------------------------------------------------
                                                     Maximum points
                                               -------------------------
                Rating factors                    LHC * &
                                                  LHRD **      LEAP ***
------------------------------------------------------------------------
1. Capacity of the Applicant and Relevant                20           20
 Organizational Experience....................
2. Need/Extent of the Problem.................           20           10
3. Soundness of Approach......................           40           40
4. Matching and Leveraging Resources..........           10           20
5. Achieving Results and Program Evaluation...           10           10
Empowerment Zone, Renewal Zones and Enterprise            2            2
 Community (II), Bonus Points.................
                                               -------------------------

[[Page 11832]]

 
    Total.....................................          102         102
------------------------------------------------------------------------
* Lead-Based Paint Hazard Control.
** Lead Hazard Reduction Demonstration.
*** Operation Lead Elimination Action Program.

Section VI. Award Administration Information: Refer to the General 
Section for Additional Details on Award Administration

A. Award Notices

    1. Successful applicants will receive a letter from the Office of 
Healthy Homes and Lead Hazard Control Grant Officer indicating that 
they have been selected for an award. This letter will provide 
additional details regarding the effective start date of the grant and 
any additional data and information to be submitted to execute a grant 
agreement. This letter is not an authorization to begin work or incur 
costs under the grant. A fully executed grant agreement is the 
authorizing document. Unsuccessful applicants will also be notified 
that their application was not selected for an award and will be 
afforded an opportunity to request a debriefing on the unsuccessful 
application according to the procedures outlined in the General 
Section.
    2. Negotiation. Refer to the General Section for additional 
details.
    3. Adjustments to Funding. Refer to the General Section for 
additional details.

B. Administrative and National Policy Requirements

    Refer to the General Section for additional details regarding the 
Administrative and National Policy Requirements applicable to HUD 
Programs.
    1. Flood Disaster Protection Act. Under the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), you may not use these 
grant funds for lead-hazard control or rehabilitation of a building or 
manufactured home that is 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 in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    2. National Historic Preservation Act. The National Historic 
Preservation Act of 1966 (16 U.S.C. 470) and the regulations at 36 CFR 
part 800 apply to the lead-hazard control or rehabilitation activities 
that are undertaken pursuant to this NOFA.
    3. Waste Disposal. You must handle waste disposal according to the 
requirements of the appropriate local, state, and federal regulatory 
agencies. You must handle disposal of wastes from hazard control 
activities that contain lead-based paint, but are not classified as 
hazardous in accordance with state or local law or the HUD Guidelines 
for the Evaluation and Control of Lead-Based Hazards in Housing (HUD 
Guidelines). The Guidelines are available from the HUD Web site at: 
http://www.hud.gov/offices/lead/guidelines/hudguidelines/index.cfm.
    4. Worker Protection Procedures. You must observe the procedures 
for worker protection established in the HUD Guidelines, as well as the 
requirements of the Occupational Health and Safety Administration 
(OSHA) (29 CFR 1926.62, Lead Exposure in Construction), or the state or 
local occupational safety and health regulations, whichever are most 
protective. If other applicable requirements contain more stringent 
requirements than the HUD Guidelines, the more rigorous standards shall 
be followed.
    5. Davis-Bacon Act. The Davis-Bacon Act does not apply to these 
programs. However, if you use grant funds in conjunction with other 
federal programs in which Davis-Bacon prevailing wage rates apply, then 
Davis-Bacon provisions will apply to the extent required under the 
other federal programs.
    6. Procurement of Recovered Materials. See the General Section for 
information concerning this requirement.
    7. Executive Order 13202. Refer to the General Section.

C. Reporting

    Successful applicants will be required to submit quarterly, annual, 
and final program and financial reports according to the requirements 
of the Office of Healthy Homes and Lead Hazard Control. Your quarterly, 
annual and final report must include a completed Logic Model form HUD-
96010, approved and incorporated into your award agreement, showing 
specific outputs and outcome results against those proposed and 
accepted as part of your approved grant agreement. For specific 
reporting requirements, see policy guidance: http://www.hud.gov/offices/lead/index.cfm. Specific guidance and additional details will 
be provided to successful applicants.

Section VII. Agency Contact(s)

    For Further Information and Technical Assistance: You may contact 
Jonnette Hawkins, Director, Program Management and Assurance Division, 
Office of Healthy Homes and Lead Hazard Control, 451 Seventh Street, 
SW., Washington, DC 20410-3000, telephone (202) 755-1785, extension 
7593 (this is not a toll-free number) facsimile (202) 755-1000, e-mail: 
[email protected] (use underscores). For grants 
administrative questions, you may contact Ms. Curtissa L. Coleman, 
Office of Healthy Homes and Lead Hazard Control; telephone (202) 755-
1785, extension 7580 (this is not a toll-free number) or via e-mail at 
[email protected]. If you are a hearing-or speech-impaired 
person, you may reach the above telephone number via TTY by calling the 
toll-free Federal Information Relay Service at 1-800-877-8339.

Section VIII. Other Information

    For additional general, technical, and grant program information 
pertaining to the Office of Healthy Homes and Lead Hazard Control, 
visit: http://www.hud.gov/offices/lead.

Section IX. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the

[[Page 11833]]

Office of Management and Budget (OMB) under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2539-
0015. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor, and a person is not required to respond to a 
collection of information unless the collection displays a currently 
valid OMB control number. Public reporting burden for the collection of 
information is estimated to average 80 hours per application and 16 
hours per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application, semi-annual reports, and final 
report. The information will be used for grantee selection and 
monitoring the administration of funds. Response to this request for 
information is required in order to receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11834]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.013


[[Page 11835]]



Lead Technical Studies and Healthy Homes Technical Studies Programs

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Healthy Homes and Lead Hazard Control.
    B. Funding Opportunity Title: Lead Technical Studies and Healthy 
Homes Technical Studies.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Funding Opportunity Number is: 
FR-5030-N-29. The OMB Paperwork Approval number is: 2539-0015.
    E. Catalog of Federal Domestic Assistance (CFDA) Numbers: 14.902, 
Lead Technical Studies Grant Program, and 14.906, Healthy Homes 
Technical Studies Grant Program.
    F. Dates: The application deadline date is June 6, 2006. 
Applications submitted through http://www.grants.gov must be received 
and validated by grants.gov no later than 11:59:59 pm eastern time on 
the application deadline date. See the General Section IV, regarding 
application submission procedures and timely filing requirements.
    G. Additional Overview Content Information: 1. Purpose: To fund 
technical studies to improve existing methods for detecting and 
controlling lead-based paint and other housing-related health and 
safety hazards, to develop new methods to detect and control these 
hazards, and to improve our knowledge of lead-based paint and other 
housing-related health hazards.
    2. Available funding: The total amount to be awarded is 
approximately $5.75 million, of which approximately $3.75 million is 
for Lead Technical Studies and approximately $2 million is for Healthy 
Homes Technical Studies.
    3. Anticipated awards: The anticipated amounts and numbers of 
individual awards for the Lead Technical Studies Program will be 
approximately 3 to approximately 10 awards, ranging from approximately 
$200,000 to a maximum of $1 million. The anticipated amounts and number 
of individual awards for the Healthy Homes Technical Studies Program 
will be approximately 2 to approximately 5 awards, ranging from 
approximately $200,000 to a maximum of $1 million. In addition, there 
will be one award in each technical studies program to correct funding 
errors made in the fiscal year 2004 Technical Studies NOFAs.
    4. Type of awards: Cooperative agreements, with substantial 
involvement of the government will be awarded (see Paragraph II.C for a 
description of substantial involvement).
    5. Eligible applicants: Academic, not-for-profit and for-profit 
institutions located in the U.S., state and units of local general 
government, and federally recognized Native American tribes are 
eligible to apply. For-profit firms are not allowed to earn a fee 
(i.e., make a profit from the project).
    6. Cost sharing or ``matching'' is not required; however, applicant 
``leveraging'' contributions are encouraged (see Section V.A.4.d).
    7. There is no limit on the number of applications that each 
applicant may submit.
    8. The applications for this NOFA can be found at http://
www.grants.gov. The application is an electronic application. You must 
be registered at http://www.grants.gov to submit your application. 
Registration is a multi-step process, and HUD recommends that you allow 
at least 10 days to complete the registration process. The General 
Section contains information on submission requirements and procedures. 
Please carefully review the General Section before reading the program 
section so that you understand the Grants.gov electronic application 
process.

Full Text of Announcement

I. Funding Opportunity Description

A. Purpose of the Programs

    The overall goal of both the Lead and the Healthy Homes Technical 
Studies programs is to gain knowledge to improve the efficacy and cost-
effectiveness of methods for evaluation and control of lead-based paint 
and other housing related health and safety hazards. This also supports 
HUD's Strategic Goal to Strengthen Communities and the associated 
policy priority to Improve Our Nation's Communities by improving the 
environmental health and safety of families living in public and 
privately owned housing.

B. Program Description

    HUD is funding studies to improve HUD's knowledge of lead-based 
paint hazards and other housing-related health hazards, and to improve 
or develop new hazard assessment and control methods, with a focus on 
the key residential health and safety hazards. Key hazards are 
discussed in Appendix A of this NOFA. A list of references that serves 
as the basis for the information provided in this NOFA is provided as 
Appendix B to this NOFA. Both Appendix A and Appendix B of this NOFA 
can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm).
1. General Goals
    a. Lead Technical Studies (LTS). The overall goal of the Lead 
Technical Studies grant program is to gain knowledge to improve the 
efficacy and cost-effectiveness of methods for evaluation and control 
of residential lead-based paint hazards.
    Through the Lead Technical Studies Program, HUD is working to 
fulfill the requirements of sections 1051 and 1052 of the Residential 
Lead-Based Paint Hazard Reduction Act of 1992 (Title X) (42 U.S.C. 4854 
and 4854a) which directs HUD to conduct research on topics which 
include the development of ``improved methods for evaluating [and] 
reducing lead-based paint hazards in housing,'' among others.
    Brief descriptions of active and previously funded lead technical 
studies projects can be found on HUD's Web site at http://www.hud.gov/offices/lead/techstudies/index.cfm. Where appropriate, you are strongly 
encouraged to ensure that your proposed study builds upon HUD-sponsored 
work that has been previously completed, in addition to other relevant 
research (i.e., that contained in government reports and in the 
published literature).
    The results of the technical studies will be used in part to update 
HUD's Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing (Guidelines). For supporting references, including 
where to find the Guidelines, see Appendix B on HUD's Web site at 
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    b. Healthy Homes Technical Studies (HHTS). The overall goals and 
objectives of the Healthy Home Initiative (HHI), which includes the 
HHTS Program and the Healthy Homes Demonstration Grant Program (see the 
Healthy Homes Demonstration Grant Program NOFA published in this 
SuperNOFA), are to:
    (1) Mobilize public and private resources, involving cooperation 
among all levels of government, the private sector, grassroots 
community-based organizations, including faith-based organizations, and 
other non-profit organizations, to develop the most promising, cost-
effective methods for identifying and controlling housing-related 
hazards; and
    (2) Build local capacity to operate sustainable programs that will 
continue to prevent, minimize, and control housing-related hazards in 
low- and very low-income residences when HUD funding is exhausted.

[[Page 11836]]

    The HHI departs from the more traditional approach of attempting to 
correct one hazard at a time. HUD is interested in promoting approaches 
that are cost-effective and efficient and result in the reduction of 
health threats for the maximum number of residents, and in particular, 
low-income children.
    In April 1999, HUD submitted a preliminary plan that described the 
HHI to Congress. The submission (Summary and Full Report), and a 
description of the HHI are available on the HUD Web site at http://www.hud.gov/offices/lead/hhi/index.cfm.
    In addition to deficiencies in basic housing facilities that may 
impact health, changes in the U.S. housing stock and more sophisticated 
epidemiological methods and biomedical research have led to the 
identification of new and often more subtle health hazards in the 
residential environment (e.g., asthma triggers). While such hazards 
will tend to be found disproportionately in housing that is substandard 
(e.g., structural problems, lack of adequate heat, poor maintenance, 
etc.), such housing-related environmental hazards may also exist in 
housing that is otherwise of good quality. Appendix A of this NOFA 
briefly describes the key housing-associated health and injury hazards 
HUD considers targets for intervention. HUD has also developed resource 
papers on a number of topics of importance under the HHI, including 
mold, environmental aspects of asthma, carbon monoxide, and 
unintentional injuries. These resource papers can be downloaded at 
http://www.hud.gov/offices/lead/hhi.
    Brief descriptions of current and recently completed Healthy Homes 
Technical Studies projects and grantee contact information can be found 
on the HUD Web site at http://www.hud.gov/offices/lead/hhi/hhigranteeinfo.cfm.
2. Community Participation
    HUD believes that it is important for researchers to incorporate 
some aspect of meaningful community participation in the development 
and implementation of studies that are conducted in communities and/or 
involve significant interaction with community residents. Community 
participation can improve study effectiveness in various ways, 
including the development of more appropriate research objectives, 
improving recruitment and retention of study participants, improving 
participants' involvement in and understanding of the study, improving 
ongoing communication between researchers and the affected community, 
and more effectively disseminating study findings. HUD encourages 
applicants to consider using a ``community based participatory research 
(CBPR)'' approach, where applicable, in study design and 
implementation. (See e.g., the report published by the National 
Institute of Environmental Health Sciences titled ``Successful Models 
of Community-Based Participatory Research'' at: http://www.niehs.nih.gov/translat/pubs.htm). CBPR is characterized by 
substantial community input in all phases of a study (i.e., design, 
implementation, data interpretation, conclusions, and communication of 
results).

C. Authority

    The lead technical studies program is authorized under sections 
1011(g)(1), 1011(o), and 1051-1053 of the Residential Lead Based Paint 
Hazard Reduction Act of 1992 (Title X of the Housing and Community 
Development Act of 1992, 42 U.S.C. 4851 et seq.). The Healthy Homes 
technical studies program is authorized under sections 501 and 502 of 
the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 and 
1701z-2). Fiscal Year 2006 funds for both programs are authorized under 
Public Law 109-115, 119 Stat. 2396, approved November 30, 2005.

II. Award Information

A. Funding Available

    Approximately $3.75 million in fiscal year 2006 funds is available 
for Lead Technical Studies. In addition, HUD will award a grant for 
$745,471 in fiscal year 2005 funds to the Regents of the University of 
California, Irvine, 300 University Towers, Irvine, CA 92697-7600, to 
resolve a funding error under the fiscal year 2004 Lead Technical 
Studies Program NOFA, in accordance with Sec. VI.A.3 of the fiscal year 
2004 General Section. Approximately $2 million is available for Healthy 
Homes Technical Studies, of which HUD will award $829,880 to Advanced 
Energy, 909 Capability Drive, Suite 2100, Raleigh, NC 27606, to resolve 
a funding error under the fiscal year 2004 Healthy Homes Technical 
Studies Program NOFA, in accordance with Sec. VI.A.3 of the fiscal year 
2004 General Section. Cooperative agreements will be awarded on a 
competitive basis following evaluation of all eligible proposals 
according to the rating factors described in Section V.A.4 of this 
NOFA. HUD anticipates that approximately three to ten awards will be 
made for the Lead Technical Studies Program, and that 2 to 5 awards 
will be made for the Healthy Homes Technical Studies Program with 
awards ranging from approximately $200,000 to no more than $1 million 
for each program. Applications for additional work related to existing 
HUD-funded technical studies (i.e., for work outside of the scope of 
the original agreement) are eligible to compete with applications for 
new awards. These applications will be evaluated in the same manner as 
new applicants.

B. Anticipated Start Date and Period of Performance for New Grants

    The start date for new awards is expected to be October 1, 2006. 
The period of performance cannot exceed 36 months from the time of 
award. The proposed performance period should include adequate time for 
project components such as the Institutional Review Board process, if 
required, the recruitment of new staff and/or study participants, and 
the development of new instrumentation or methods (e.g., analytical 
methods), all of which have been found to delay projects in the past. 
Period of performance extensions for delays due to exceptional 
conditions beyond the grantee's control will be considered for approval 
by HUD in accordance with 24 CFR 85.25(d)(2) or 85.30(e)(2), as 
applicable, and the OHHLHC Program Guide. If approved, grantees will be 
eligible to receive a single extension of up to 12 months in length. 
Applicants are encouraged to plan studies with shorter performance 
periods than 36 months; however, when developing your schedule, you 
should consider the possibility that issues may arise that could cause 
delays.

C. Type of Award Instrument

    Awards will be made as cooperative agreements. Anticipated 
substantial involvement by HUD staff for cooperative agreements may 
include, but will not be limited to:
    1. Review and suggestion of amendments to the study design, 
including: Study objectives; field sampling plan; data collection 
methods; sample handling and preparation; and sample and data analysis.
    2. Review and provision of technical recommendations in response to 
quarterly progress reports (e.g., amendments to study design based on 
preliminary results).
    3. Review and provision of technical recommendations on the journal 
article(s) and final study report (including electronic format for 
submission of research data).
    4. Requirements for peer review of scientific data in accord with 
the Office of Management and Budget Information Quality Guidelines. All 
HUD-sponsored research is subject to the OMB Final

[[Page 11837]]

Information Quality Bulletin for Peer Review (70 FR 2664-2677, January 
14, 2005) prior to its public dissemination. In accordance with 
paragraph II.2 of the Bulletin, HUD will not need further peer review 
conducted on information that has already been subjected to adequate 
peer review. Therefore grantees must provide enough information on 
their peer review process for HUD to determine whether additional 
review is needed.

III. Eligibility Information

A. Eligible Applicants

    Academic and not-for-profit institutions located in the U.S., state 
and units of local general government, and federally recognized Native 
American tribes are eligible under all existing authorizations. For-
profit firms also are eligible; however, they are not allowed to earn a 
profit from the project. Applications to supplement existing projects 
are eligible to compete with applications for new awards. Federal 
agencies are not eligible to submit applications. The General Section 
identifies threshold requirements that must be met for an organization 
to receive an award.

B. Cost Sharing or Matching

    Cost sharing or matching is not required. In rating your 
application, however, you will receive a higher score under Rating 
Factor 4 if you provide evidence of significant leveraging.

C. Eligible Activities

1. Lead Technical Studies
    HUD is interested in the following lead technical studies topics:
    a. Development of alternative or improved clearance methods. The 
clearance of a dwelling following lead hazard control activities is 
achieved by collecting dust-wipe samples following a standard protocol, 
with subsequent analysis of the samples by a laboratory recognized 
under the National Lead Laboratory Accreditation Program (NLLAP). Lead 
hazard control costs could be reduced if immediate clearance results 
could be obtained in the field. Existing techniques that can be used to 
analyze dust samples in the field include the use of portable X-ray 
fluorescence (XRF) analyzers and anodic stripping voltammetry (ASV) 
instruments. It is theoretically possible to also employ colorimetric 
methods to analyze clearance samples. These techniques can be used in a 
screening context in which a ``failure'' would indicate the need for 
additional cleaning before definitive clearance wipe samples are 
collected for analysis by an appropriate laboratory. It is possible for 
an organization using a field-based technology to achieve recognition 
as a portable laboratory under NLLAP; however, it is HUD's 
understanding that, to date, this has not been done. HUD is interested 
in funding research that improves the performance of portable 
analytical technologies for lead dust-wipe analysis with the ultimate 
goal of improving the feasibility for such technologies to be used to 
conduct definitive analyses in the field.
    HUD has funded research for the on-site use of X-ray Fluorescence 
(XRF) for dust wipe lead analysis and does not intend to fund 
additional work on this topic through this NOFA.
    b. Reducing exterior soil and dust-lead hazards. Studies have shown 
that lead in exterior dust and soil can be an important source of lead 
exposure to young children, both through direct contact and indirectly 
when tracked or blown into the home. HUD has funded several studies 
that have assessed approaches to reducing the risk posed by this large 
environmental lead reservoir. Examples of these studies have focused on 
the following topics: reducing the bioavailability (as determined using 
in vitro testing) of lead in soil through the addition of composted 
biosolids or other additives; reducing soil hazards in urban yards 
through targeted landscaping (e.g., raised beds, improving ground 
cover); reducing exterior dust-lead levels through exterior building 
treatments and street and sidewalk cleaning; and reducing surface soil-
lead hazards by overlaying clean soil with grass cover (see, e.g.: 
Binns et al., 2004 and Farfel et al., 2005 in Appendix B).
    Additional study is needed to assess the long-term effectiveness of 
interim controls to reduce soil and exterior dust-lead hazards. 
Research is also needed to develop interim controls and strategies for 
exterior dust and soil that are reasonable in cost, feasible to 
implement, and which do not require frequent maintenance to retain 
their effectiveness. Also, the relationship between control of soil 
lead hazards and interior dust lead levels has not been adequately 
described.
    c. Effectiveness of Ongoing Maintenance Program Activities in 
Controlling Lead-Based Paint Hazards. There are few studies directly 
assessing the effectiveness of ongoing lead-based paint maintenance 
programs. HUD is interested in evaluating the effectiveness and 
feasibility of ongoing lead-based paint maintenance programs, 
identifying program components for which particular implementation 
difficulties exist, and evaluating proposed measures for overcoming 
those difficulties. Such an evaluation of program components could 
address whether and how technically-acceptable and cost-effective work 
practices are selected and implemented, how effectively supervisors 
monitor work activities to ensure that lead-based paint hazards are 
controlled and that dust and debris are contained and cleaned up during 
and after work, and how well clearance procedures (including necessary 
re-cleaning) are integrated into the maintenance program, among other 
factors.
    d. Use of Available Databases to Evaluate the Efficacy of Lead 
Hazard Control Activities. Public databases can be used to help target 
and assess the effectiveness of lead hazard control activities. 
Examples of this include the use of census data to identify 
neighborhoods that are at high risk for lead poisoning (e.g., age and 
value of housing used in combination with indicators of socioeconomic 
status) and the use of blood-lead screening data to target dwellings 
that have been associated with repeated identification of resident 
children with elevated blood-lead levels. Geographic Information 
Systems (GIS) have also been successfully used as a tool to help target 
high-risk housing. At a broader level, serial blood-lead screening data 
could be used to assess the effectiveness of lead hazard control 
activities or laws that require lead hazard control treatments in high 
risk housing (e.g., by comparing community screening results before and 
after laws were enacted while accounting for the overall downward trend 
in blood lead levels). HUD is interested in studies that assess 
effective and creative uses of public databases to improve the efficacy 
of lead hazard control programs (e.g., targeting neighborhoods), assess 
the effectiveness of enforcement and lead hazard control activities and 
regulations, and other uses of these data that further the goal of 
improving methods for the identification and control of residential 
lead-based paint hazards. Applicants proposing projects under this 
topic area should focus primarily on the use of existing data as 
opposed to the collection of new data through field activities. An 
applicant must demonstrate why the collection of any new data is 
important in the context of a proposed study (e.g., to validate a model 
developed using publicly available data) and that there is a limited 
amount of new data being collected.
    e. Other Focus Areas that are Consistent with the Overall Goals of 
HUD's Lead Technical Studies Program.

[[Page 11838]]

HUD will consider funding applications for technical studies on other 
topics that are consistent with the overall goals and objectives of the 
LTS program, as described above. In such instances, for an applicant to 
receive an award, it is necessary that the applicant describe in 
sufficient detail how the proposed study is consistent with the overall 
lead technical studies program goals and objectives.

    Note: A limited amount of lead hazard control activities, which 
are construction as opposed to research, may be conducted as part of 
a project (see Section IV.E.8 of this NOFA).

2. Healthy Homes Technical Studies
    HUD hopes to advance the recognition and control of residential 
health and safety hazards and more closely examine the link between 
housing and health. The overall objectives of the HHTS studies projects 
to be funded through this NOFA include, but are not limited to:
    a. Development and evaluation of low-cost test methods and 
protocols for identification and assessment of housing-related hazards;
    b. Development and assessment of cost-effective methods for 
reducing or eliminating housing-related hazards;
    c. Evaluation of the effectiveness of housing interventions and 
public education campaigns, and barriers and incentives affecting 
future use of the most cost-effective strategies;
    d. Investigation of the epidemiology of housing-related hazards and 
illness and injuries associated with these hazards, with an emphasis on 
children's health;
    e. Evaluation of residential health and safety hazard assessment 
and control methodologies and approaches (including both existing 
methods and the evaluation of improved or novel approaches);
    f. Analysis of existing data or justified generation of limited new 
data to improve knowledge regarding the prevalence and severity of 
specific hazards in various classes of housing, with a focus on low-
income housing. Specific examples include:
    (1) The prevalence of carbon monoxide and other indoor air quality 
hazards;
    (2) The prevalence and patterns of moisture problems and biological 
contaminants associated with excess moisture (e.g., fungi, mold, 
bacteria, dust mites);
    (3) The prevalence of specific childhood injury hazards in housing; 
and
    (4) Improved understanding of the relationship between a 
residential exposure and childhood illness or injury.
    Applicants that propose this type of study should discuss how the 
knowledge that is gained from the study could be used in a program to 
reduce these hazards in target communities.
    g. Low-cost analytical techniques and instruments for the rapid, 
on- and off-site determination of environmental contaminants of concern 
(e.g., bioaerosols, pesticides, allergens). HUD's primary interest is 
in the improvement of existing instruments or methods, and not in the 
development of new technologies or instruments. The OHHLHC has noted 
that these types of studies pose a high risk of experiencing 
significant delays. Applicants seeking to develop new technologies/
instruments should discuss why, if funded, their proposed project would 
be unlikely to experience significant delays in its completion.
    h. Objectives of particular interest to HUD include:
    (1) Improving or assessing the efficacy of current methods for 
residential Integrated Pest Management (IPM). IPM approaches focus on 
the use of economical means for managing pests, which incorporate 
information on the life cycles of pests and their interaction with the 
environment, while minimizing hazards to people, property, and the 
environment. HUD is particularly interested in IPM methods for reducing 
cockroach and/or rodent populations in multifamily housing, with an 
emphasis on low-income housing.
    (2) Controlling excess moisture by reducing migration through the 
building envelope and condensation of water vapor on interior surfaces, 
with an emphasis on low-cost interventions for low-income housing;
    (3) Improving indoor air quality, such as through cost-effective 
approaches to upgrading residential ventilation or improving control/
management of combustion appliances. Applicants should discuss how 
proposed approaches might affect residential energy costs (e.g., 
increasing air exchange rates resulting in an increase in heating 
costs);
    (4) Dust control measures (e.g., preventing track-in of exterior 
dust and soil, improved methods for interior dust cleaning) have been 
identified as key areas in the HHI Preliminary Plan;
    (5) Evaluating the effectiveness of education and outreach methods 
designed to provide at-risk families with the knowledge to adopt self-
protective behaviors with respect to housing-related health hazards.
    (6) Other Focus Areas that are Consistent with the Overall Goals of 
HUD's Healthy Homes Technical Studies Program. HUD will consider 
funding applications for technical studies on other topics that are 
consistent with the overall goals and objectives of the HHTS program, 
as described above. In such instances, for an applicant to receive an 
award, it is necessary that the applicant describe in sufficient detail 
how the proposed study is consistent with the overall healthy homes 
technical studies program goals and objectives.
    i. General Information. In proposing to conduct a study on a 
particular topic, applicants should consider:
    (1) The ``fit'' of the proposed hazard assessment and/or control 
methods within the overall goal of addressing ``priority'' health and 
safety hazards in a cost-effective manner;
    (2) The efficacy of the proposed methods for hazard control and 
risk reduction (e.g., how long is effective hazard reduction 
maintained);
    (3) Where and how these methods would be applied and tested, and/or 
perform demonstration activities; and
    (4) The degree to which the study will help develop practical, 
widely applicable methods and protocols or improve our understanding of 
a residential health hazard.
    Applications for a study for which the sole or primary focus is on 
lead-based paint hazards are ineligible for funding under the HHTS 
program. Such studies should be submitted for funding under the Lead 
Technical Studies Program.
    Applicants should consider the efficiencies that might be gained by 
working cooperatively with one or more recipients of HUD's Healthy 
Homes Demonstration and/or Lead Hazard Control grants, which are widely 
distributed throughout the U.S. Information on current grantees is 
available at hhtp://www.hud.gov/offices/lead.
    You may address one or more of the technical studies topic areas 
within your proposal, or submit separate applications for different 
topic areas.


    Note: A limited amount of hazard control activities, which are 
construction as opposed to research, may be conducted as part of an 
HHTS project (see Section IV.E.8 of this NOFA).

D. Other

    1. Threshold Requirements Applicable to all Applicants.
    To be scored and ranked under the Rating Factors, and thus be 
eligible to receive funds from HUD, you must meet all of the threshold 
requirements

[[Page 11839]]

described in the General Section. Threshold requirements include 
Eligibility, Compliance with Fair Housing and Civil Rights Laws, 
Conducting Business in Accordance with Core Values and Ethical 
Standards, Delinquent Federal Debts, and Pre-Award Accounting System 
Surveys.
    2. Program Requirements.
    The following requirements are applicable to both Healthy Homes 
Technical Studies and Lead Technical Studies Programs:
    a. Program Performance. Grantees shall take all reasonable steps to 
accomplish all activities within the approved period of performance. 
HUD reserves the right to terminate the grant prior to the expiration 
of the period of performance if the grantee fails to make reasonable 
progress in implementing the approved program of activities or fails to 
comply with the terms of the grant agreement.
    b. Regulatory Compliance. Grantees must comply with all relevant 
federal, state, and local regulations regarding exposure to and proper 
disposal of hazardous materials.
    c. Blood Lead Testing. Any blood lead testing, blood lead level 
test results, medical referral, or follow-up for children under six 
years of age will be conducted according to the recommendations of the 
Centers for Disease Control and Prevention (CDC), Preventing Lead 
Poisoning in Young Children (see Appendix B of this NOFA).
    d. Restricted Use of Funds. HUD technical studies grant funds will 
not replace existing resources dedicated to any ongoing project.
    e. Laboratory Analysis for Lead. Laboratory analysis covered by the 
NLLAP will be conducted by a laboratory recognized under the program.
    f. Human Research. Human research subjects will be protected from 
research risks in conformance with Federal Policy for the Protection of 
Human Subjects, required by HUD at 24 CFR 60.101, which incorporates 
the Department of Health and Human Services (DHHS) Protection of Human 
Subjects regulation at 45 CFR part 46.
    g. OSHA Compliance. The requirements of the Occupational Safety and 
Health Administration (OSHA) (e.g., 29 CFR part 1910 and/or 1926, as 
applicable) or the state or local occupational safety and health 
regulations, whichever are most stringent, will be met;
    h. Civil Rights. The institution administering the grant must meet 
the civil rights threshold set forth in the General Section.
    i. Disclosure. All test results and other information in pre-1978 
housing related to lead-based paint or lead-based paint hazards must be 
provided to the owner of the unit, together with a statement describing 
the owner's legal duty to disclose the knowledge of lead-based paint 
and its hazards to tenants (before initial leasing, or before lease 
renewal with changes) and buyers (before sale) (24 CFR Part 35, subpart 
A). Disclosure of other identified housing-related health or safety 
hazards to the owner of the unit, for purposes of remediation, is 
encouraged but not required.
    j. Privacy. Submission of any information on the properties to 
databases (whether web site, computer, paper, or other format) of 
addresses of identified, treated or cleared housing units is subject to 
the protections of the Privacy Act of 1974, and shall not include any 
personal information that could identify any child affected. You should 
also check to ensure you meet state privacy regulations.
    k. Applicants must incorporate meaningful community involvement 
into any study that requires a significant level of interaction with a 
community during implementation (e.g., projects being conducted within 
occupied dwellings or which involve surveys of community residents). 
The term community refers to a variety of populations comprised of 
persons who have commonalities that can be identified (e.g., based on 
geographic location, ethnicity, health condition, common interests). 
Applicants should identify the community that is most relevant to their 
particular project. There are many different approaches to involving 
the community in the conception, design, and implementation of a study 
and the subsequent dissemination of findings. Examples include but are 
not limited to: establishing a structured approach to obtain community 
input and feedback (e.g., through a community advisory board); 
including one or more community-based organizations as study partners; 
employing community residents to recruit study participants and collect 
data; and enlisting the community in the dissemination of findings and 
translation of results into improved policies and/or practices. A 
discussion of community involvement in research involving housing-
related health hazards can be found in Chapter 5 of the Institute of 
Medicine publication titled ``Ethical Considerations for Research on 
Housing-Related Health Hazards Involving Children'' (see Appendix B for 
more information on this report).
    l. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). This program is subject to the requirements of Section 3 
of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u). 
Section 3 requires recipients to ensure that, to the greatest extent 
feasible, training, employment, and other economic opportunities will 
be directed to low- and very low-income persons, particularly those who 
are recipients of government assistance for housing, and to businesses 
which provide economic opportunities to low- and very low-income 
persons. The regulations may be found at 24 CFR part 135.
    m. Standardized Dust Sampling Protocol and Quality Control 
Requirements. Grantees collecting samples of settled dust from 
participant homes for environmental allergen analyses (e.g., cockroach, 
dust mite) will be required to use a standard dust sampling protocol, 
unless there is a strong justification to use an alternate protocol 
(e.g., the study involves the development of an alternative sampling 
method). The HUD protocol can be found on the OHHLHC website at: http://www.hud.gov/offices/lead/hhi/hhiresources.cfm. Grantees conducting 
these analyses will also be required to include quality control dust 
samples, provided by OHHLHC at no cost to the grantee, with the samples 
that are submitted for laboratory analyses. For the purpose of 
budgeting laboratory costs, you should assume that five percent of your 
total allergen dust samples would consist of QC samples.
    3. DUNS Requirement.
    Refer to the General Section for information regarding the DUNS 
requirement. A DUNS number must be provided for the institution that is 
submitting an application. Your DUNS number must be included in your 
electronic application submission. Be sure to use the DUNS number that 
you have registered as an Authorized Organization Representative (AOR) 
with Grants.gov and that your eBusiness Point of Contact has authorized 
you to submit an application on behalf of the applicant organization 
(see the General Section for details about the Grants.gov registration 
process).

IV. Application and Submission Information

    If you are interested in applying for funding under this program, 
please review carefully the General Section and the following 
additional information.

[[Page 11840]]

A. Addresses To Request Application Package

    All the information required to submit an application is contained 
in the program section of this NOFA and the General Section. 
Applications can be downloaded from the Web at: https://apply.grants.gov/forms_apps_idx.html http://www.grants.gov/APPLY. If 
you have difficulty accessing the information you may call the 
Grants.gov helpline toll-free at (800) 518-GRANTS (4726) from Monday to 
Friday from 7 a.m. to 9 p.m. eastern time, or send an e-mail to 
[email protected].

B. Content and Form of Application Submission

    1. Applicant Data. Your application must contain the items listed 
in this section. These items include the standard forms contained in 
the General Section that are applicable to this funding announcement 
(collectively referred to as the ``standard forms''). Copies of these 
forms are available on line at http://www.hud.gov/offices/adm/grants/nofa06/nofaforms.cfm. The required items are:
    a. Application Abstract. An abstract with the project title, the 
names and affiliations of all investigators, and a summary of the 
objectives, expected results, and study design (two-page maximum) must 
be included in the proposal.
    b. All forms as required by the General Section. However, forms 
HUD-2991 (Certification of Consistency with the Consolidated Plan) and 
HUD-27061 (Race and Ethnicity Data) are not required with the 
application for these programs.
    c. Materials Submitted. A project description/narrative statement 
addressing the rating factors for award under the program (LTS or HHTS) 
for which you are applying. The narrative statement must be identified 
in accordance with each factor for award (Rating Factors 1 through 5). 
Number the pages of your narrative statement and include a header and a 
footer that provides the name of the applicant and the name of the HUD 
program to which you are applying. The project description or narrative 
must be included in the responses to the rating factors. The response 
to the rating factors should not exceed a total of 25 pages, single-
sided, with a minimum 12-point font. Any pages in excess of this limit 
will not be read. The points you receive for each Rating Factor will be 
based on the portion of your narrative statement that you submit in 
response to that particular factor, supplemented by any appendices that 
are referenced in your response and discussed in that portion of your 
narrative statement. Supporting materials that are not referenced or 
discussed in your responses to the individual rating factors will not 
be considered. Additional materials (e.g., appendices) must be 
submitted with your application according the directions in the General 
Section. The footer on the pages of these materials should accurately 
describe the Factor that they are supporting.
    d. Evidence of leveraging/partnerships. You should provide evidence 
of leveraging/partnerships by submitting the following with your 
application: Letters of firm commitment; memoranda of understanding; 
and/or agreements to participate by those entities identified as 
partners in the project efforts. Each document of commitment must 
include the organization's name, proposed level of commitment (with 
monetary value) and responsibilities as they relate to specific 
activities or tasks of your proposed program. The commitment must also 
be signed by an official of the organization legally able to make 
commitments on behalf of the organization.
    e. Institutional Review Boards. In conformance with the Common Rule 
(Federal Policy for the Protection of Human Subjects, codified by HUD 
at 24 CFR part 60.101, which incorporates the DHHS regulation at 45 CFR 
part 46), if your research involves human subjects, your organization 
must provide an assurance (e.g., a letter signed by an appropriate 
official) that the research has been reviewed and approved by an 
Institutional Review Board (IRB) before you can initiate activities 
that require IRB approval. To be eligible for these funds, before 
initiating such activities you must also provide the number for your 
organization's assurance (i.e., an ``institutional assurance'') that 
has been approved by the Department of Health and Human Service's 
Office for Human Research Protections (OHRP). For additional 
information on what constitutes human subject research or how to obtain 
an institutional assurance see the OHRP Web site at http://www.hhs.gov/ohrp/.
    f. Supporting Materials. Include the resumes of the principal 
investigator and other key personnel and other materials that are 
needed in your response to the rating factors (e.g., organizational 
chart, letters of commitment, a list of references cited in your 
responses to the rating factors). Each resume shall not exceed three 
pages, and is limited to information that is relevant in assessing the 
qualifications and experience of key personnel to conduct and/or manage 
the proposed technical studies. This information will not be counted 
towards the Rating Factors narrative 25-page limit.
    g. Additional Information. Submit other optional information 
provided in support of your application following the directions in the 
General Section. These additional optional materials must not exceed 20 
pages. Any pages in excess of this limit will not be read. h. Budget. 
Include a total budget with supporting cost justification for all 
budget categories of the federal grant request. Use the budget format 
discussed in Rating Factor 3, Section V.A.4.c, below. In completing the 
budget forms and justification, you should address the following 
elements:
    (1) Direct Labor costs, including all full- and part-time staff 
required for the planning and implementation phases of the project. 
These costs should be based on full time equivalent (FTE) or hours per 
year (hours/year) (i.e., one FTE equals 2,080 hours/year);
    (2) Allowance for one trip to HUD Headquarters in Washington, DC, 
for each year of your grant, planning each trip for two people. The 
first trip will occur shortly after grant award for a stay of two or 
three days, depending on the location, and the remaining trips will 
have a stay of one or two days, depending on the location;
    (3) A separate budget proposal for each subrecipient receiving more 
than 10 percent of the total federal budget request;
    (4) Supporting documentation for salaries and prices of materials 
and equipment, upon request; and
    (5) Indirect Cost Rates. Organizations that have a federally 
negotiated indirect cost rate should use that rate and the appropriate 
base. The documentation will be verified during award negotiations. 
Organizations that do not have a federally negotiated rate schedule 
must obtain a rate from their cognizant federal agency, otherwise the 
organization will be required to obtain a negotiated rate through HUD.

Checklist for Technical Studies Program Applicants

Item
    (1) Applicant Abstract (limited to a 2-pages).
    (2) Rating Factor Responses (Total narrative response limited to 25 
pages).
    (a) Capacity of the Applicant and Relevant Organizational 
Experience (22 points).
    (b) Need/Extent of the Problem (15 points).
    (c) Soundness of Approach (45 points).

[[Page 11841]]

    (d) Leveraging Resources (8 points).
    (e) Achieving Results and Program Evaluation (10 points).
    (3) Required materials in response to rating factors (does not 
count towards 25-page limit).
    (a) Resumes of Key Personnel (limited to 3 pages per resume).
    (b) Organizational Chart.
    (c) Letters of Commitment (if applicable)--Letters of commitment 
should include language defining the activities to be performed, the 
contributions to be made, and the monetary value of each.


    Note: HUD recommends against including letters of support that 
do not commit services, materials, or funds; they will not add to 
the consideration of your application.


    (4) Optional material in support of the Rating Factors (20 page 
limit).
    (5) Required Forms and Budget Material.
    (a) Form SF 424 (Application for Federal Assistance).
    (b) Form HUD-424-CBW (Budget Worksheet).
    (c) Form HUD-96010 (Logic Model Form).
    (d) Form SF 424 Supplement (Survey on Ensuring Equal Opportunity 
for Applicants) (to be completed by private nonprofit organizations 
only).
    (e) Form SF LLL (Disclosure of Lobbying Activities, if applicable).
    (f) Form HUD-2880 (Applicant/ Recipient Disclosure/Update Report)
    (g) Form HUD-2990 (Certification of Consistency with the RC/EZ/EC-
II Strategic Plan, required only for applicants who are seeking these 
bonus points).
    (h) Form HUD 2994-A (You Are Our Client Grant Applicant Survey, 
Optional).
    (i) Form HUD-96011 (Facsimile Transmittal, for electronic 
applications) (Used as the cover page to transmit third party documents 
and other information designed for each specific application for 
tracking purposes. HUD will not read faxes that do not use the HUD-
96011 as the cover page to the fax).

C. Submission Dates and Times

    Electronic applications must be received and validated by 
Grants.gov on or before 11:59:59 p.m. eastern time on June 6, 2006. All 
narrative files and any scanned documents must be submitted as a single 
zip file attachment to the electronic application. Refer to the General 
Section for specific application submission instructions including 
acceptable submission dates, times, methods, acceptable proof of 
application submission and receipt procedures, and other information 
regarding application submission. Materials associated with your 
electronic application submitted by facsimile transmission must also be 
received by 11:59:59 p.m. eastern time on the application deadline 
date. See the General Section for information on how to submit third 
party letters and other documents as part of your electronic submission 
utilizing form HUD-96011, Facsimile Transmittal.

D. Intergovernmental Review

    This NOFA is excluded from the requirement of an Intergovernmental 
Review.

E. Funding Restrictions

    1. Administrative Costs. There is a 10 percent maximum allowance 
for administrative costs. Additional information about allowable 
administrative costs is provided in Appendix C of this NOFA, which is 
available at: http//www.hud.gov/offices/adm/grants/fundsavail.cfm.
    2. Purchase of Real Property. The purchase of real property is not 
an allowable cost under this program.
    3. Purchase or Lease of Equipment. The purchase or lease of 
equipment having a per unit cost in excess of $5,000 is not an 
allowable cost, unless prior written approval is obtained from HUD.
    4. Medical treatment. Medical treatment costs are not allowable 
under this program.
    5. Profit. For profit institutions are not allowed to earn a 
profit.
    6. You must comply with the Coastal Barrier Resources Act (16 
U.S.C. 3501).
    7. You may not conduct lead-based paint or healthy home hazard 
control activities or related work that constitutes construction, 
reconstruction, repair or improvement (as referenced in Section 3(a)(4) 
of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128)) of 
a building or mobile home which is 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 in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.
    8. Construction activities. The amount of HUD technical studies 
grant funds used for lead-based paint hazard control activities may not 
exceed 10% of the total HUD funds awarded under the LTS application. 
The amount of HUD technical studies grant funds used for construction 
activities may not exceed 50% of the of the total HUD funds awarded 
under the HHTS application.

F. Other Submission Requirements

    1. Application Submission and Receipt Procedure. Please read the 
General Section carefully and completely for the electronic submission 
and receipt procedures for all applications because failure to comply 
may disqualify your application.
    2. Waiver of Electronic Submission Requirements. Applicants must 
submit their request to waive the electronic application requirement at 
least 30 days before the submission deadline date by e-mail to [email protected] or by fax to (202) 755-1000. The submission must 
address all items identified in the General Section. HUD will provide 
its decision regarding the request. If you are granted a waiver of the 
electronic application submission, the program office will provide 
instructions for submission. HUD will only accept alternate submissions 
from applicants whose waiver request was granted that are received no 
later than 11:59:59 pm eastern time on the application deadline date. 
The applicant must retain documentation to prove its waiver request was 
actually received by HUD (e.g., FAX transmittal report showing 
telephone number dialed and number of pages successfully transmitted).

V. Application Review Information

A. Criteria

    1. Threshold Requirements. Applications that meet all of the 
threshold requirements will be eligible to be scored and ranked, based 
on the total number of points allocated for each of the rating factors 
described in Section V.A.4 of this NOFA. Your application must receive 
a total score of at least 75 points to remain in consideration for 
funding.
    2. Award Factors. Each of the five factors is weighted as indicated 
by the number of points that are assigned to it. The maximum score that 
can be attained is 102 points. Applicants should be certain that each 
of these factors is adequately addressed in the project

[[Page 11842]]

description and accompanying materials.
    Applicants are eligible to receive up to two bonus points for 
projects located within federally designated Renewable Communities 
(RCs), Empowerment Zones (EZs), or Enterprise Communities (ECs) 
designated by USDA in round II (EC-IIs) (collectively referred to as 
RC/EZ/EC-IIs), and which will serve the residents of these communities 
(see the General Section). In order to be eligible for these bonus 
points, applicants must meet the requirements of the General Section 
and submit a completed form HUD-2990, with descriptive language in the 
budget discussion describing the actual work that is to be done in 
these communities.
    3. Rating Factors. a. Rating Factor 1: Capacity of the Applicant 
and Relevant Organizational Experience (22 Points). This factor 
addresses the extent to which you have the ability and organizational 
resources necessary to successfully implement your proposed activities 
in a timely manner. The rating of your application will include any 
sub-grantees, consultants, sub-recipients, and members of consortia 
that are firmly committed to the project (generally, ``subordinate 
organizations''). In rating this factor, HUD will consider the extent 
to which your application demonstrates:
    (1) The capability and qualifications of the principal investigator 
and key personnel (14 points). HUD will assess the qualifications of 
these people to carry out the proposed study as evidenced by academic 
background, relevant publications, and recent (within the past 10 
years) relevant research experience. Publications and research 
experience are considered relevant if they required the acquisition and 
use of knowledge and skills that can be applied in the planning and 
execution of the technical study that is proposed under this NOFA; and
    (2) Past performance of the study team in managing similar projects 
(8 points). HUD will evaluate your demonstrated ability to successfully 
manage various aspects of a complex technical study in such areas as 
logistics, study personnel management, data management, quality 
control, community study involvement (if applicable), and report 
writing, as well as overall success in project completion (i.e., 
projects completed on time and within budget). You should also 
demonstrate that your project would have adequate administrative 
support, including clerical and specialized support in areas such as 
accounting and equipment maintenance.
    If applicable, provide the number and title of current and past 
OHHLHC grants as well as past performance of the organization 
(applicant or partners) on other grant(s) or project(s) related to 
environmental health and safety issues, or other experience in a 
similar program. Provide details about the nature of the project, the 
funding agency, and your performance (e.g., timely completion, 
achievement of desired outcomes). If your organization has an active 
OHHLHC grant or cooperative agreement, provide a description of the 
progress and outcomes achieved under that award. (This may include an 
updated logic model.)
    If you completed one or more HUD-funded Technical Studies grants, 
your performance will be evaluated in terms of achievements made under 
the previous grant(s).
    b. Rating Factor 2: Need/Extent of the Problem (15 Points). This 
factor addresses the extent to which there is a need for your proposed 
technical study. In responding to this factor, you should document in 
detail how your project would make a significant contribution towards 
achieving some or all of HUD's stated goals and objectives for one or 
more of the topic areas described in Section I.B.1.a (LTS) or I.B.1.b 
(HHTS), as appropriate for the program to which you are applying. For 
example, you should demonstrate how your proposed study addresses a 
need with respect to the development of improved methods for the 
assessment and control of residential lead-based paint hazards or 
addresses a need associated with an important housing-related health 
hazard, with an emphasis on children's health. This is especially 
important for applicants that are proposing to study a lead or healthy 
homes topic that is not highlighted as a priority area by HUD in 
section I.C of this NOFA; such applicants that do not provide 
supporting language to demonstrate this will not receive points under 
this rating factor. Specific topics to be addressed for this factor 
include (five points for each item):
    (1) A concise review of the research need that is addressed in your 
study and why it is high priority with respect to the program. For HHTS 
applicants, include available documented rates of illness or injury 
associated with the hazard or hazards that you are addressing, 
including local, regional, and national data, as applicable.
    (2) A discussion of how your proposed project would significantly 
advance the current state of knowledge for your focus area, especially 
with respect to the development of practical solutions.
    (3) A discussion on how you anticipate your study findings will be 
used to improve current methods for assessing or mitigating the hazards 
under study. Indicate why the method/protocol that would be improved 
through your study would likely be widely adopted (e.g., low cost, 
easily replicated, lack of other options).
    c. Rating Factor 3: Soundness of Approach (45 Points). This factor 
addresses the quality of your proposed technical study plan. Specific 
components include:
    (1) Soundness of the study design (22 points). The project 
description/study design must be thorough and feasible, and reflect 
your knowledge of the relevant scientific literature, which should be 
thoroughly cited in your application. You should clearly describe how 
your study builds upon the current state of knowledge for your focus 
area. If possible, your study should be designed to address testable 
hypotheses that are clearly stated. Your study design should be 
statistically based with adequate power to test your stated hypotheses. 
The study design should be presented as a logical sequence of steps or 
phases with individual tasks described for each phase. You should 
identify any important ``decision points'' in your study plan and you 
should discuss plans for data management, analysis and archiving. HUD 
has observed that studies can miss targeted performance timelines 
because of delays in the IRB approval process or unexpected 
difficulties with recruiting study participants. If applicable, 
describe actions that you will take to minimize the possibility that 
your study would experience delays in these areas (e.g., understanding 
likely IRB requirements in advance, planning on additional avenues for 
recruitment).
    If you are proposing to conduct a study that includes a significant 
level of community interaction (e.g., studies involving participant 
recruitment, survey research, environmental sampling on private 
property), describe your plan for meaningful involvement of the 
affected community in your proposed study. You should define the 
community of interest with respect to your proposed study and discuss 
why your proposed approach to community involvement will make a 
meaningful contribution to your study and to the community.
    (2) Policy Priorities (5 points). Indicate if your proposed study 
will address any of the FY 2006 policy priorities that are applicable 
to this NOFA (see the General Section for additional details

[[Page 11843]]

regarding these policy priorities). You will receive one point under 
Rating Factor 3(2) for each of the applicable FY 2006 policy priorities 
that are found in the General Section and applicable to the Technical 
Studies NOFA that are adequately addressed in your application, with 
the exception of ``Removal of Barriers to Affordable Housing,'' for 
which you can receive up to two points (see the General Section). 
Policy priorities that are applicable to the Lead Technical Studies 
Program NOFA are: (1) Improving our Nation's Communities (focus on 
distressed communities); (2) Providing Full and Equal Access to Grass-
Roots Faith-based and other Community-based Organizations in HUD 
Program Implementation; (3) Participation of Minority -Serving 
Institutions in HUD Programs, and (4) Removal of Barriers to Affordable 
Housing.
    (3) Quality assurance mechanisms (8 points). You must describe the 
quality assurance mechanisms that will be integrated into your project 
design to ensure the validity and quality of the results. Applicants 
that receive awards will be required to submit a Quality Assurance Plan 
to HUD (see paragraph VI.C.2).
    (a) Areas to be addressed include, but are not limited to: 
Acceptance criteria for data quality, procedures for selection of 
samples/sample sites, sample handling, measurement and analysis, pre-
testing and validation of questionnaires or surveys, measures to ensure 
accuracy during data management, and any standard/nonstandard quality 
assurance/control procedures to be followed. Documents (e.g., 
government reports, peer-reviewed academic literature) that provide the 
basis for your quality assurance mechanisms should be cited.
    (b) If your project involves human subjects in a manner that 
requires IRB approval and periodic monitoring, address how you will 
obtain such approval. Before you can receive funds from HUD for 
activities that require IRB approval, you must provide an assurance 
that your study has been reviewed and approved by an IRB and evidence 
of your organization's ``institutional assurance.'' Describe how you 
will provide informed consent (e.g., from the subjects, their parents 
or their guardians, as applicable) to help ensure their understanding 
of, and consent to, the elements of informed consent, such as the 
purposes, benefits and risks of the research. Describe how this 
information will be provided and how the consent will be collected. For 
example, describe your use of ``plain language'' forms, flyers and 
verbal scripts, and how you plan to work with families with limited 
English proficiency or primary languages other than English, and with 
families including persons with disabilities.
    (c) For the collection of data using instruments, such as surveys 
and visual assessment tools, describe the procedures that you will 
follow to ensure accurate data capture and transfer. Also, describe any 
research done (or planned) to validate the instrument.
    (4) Project management plan (6 points). The proposal should include 
a management plan that provides a schedule for the completion of major 
tasks, with associated benchmarks and major study milestones, and major 
deliverables, with an indication that there will be adequate resources 
(e.g., personnel, financial) to successfully meet the proposed 
schedule. The major tasks and benchmarks/deliverables identified in the 
management plan should be consistent with those identified in the Logic 
Model (see description under Rating Factor 5). You should include 
preparation of one or more articles for peer-reviewed academic journals 
and submission of the draft(s) to the journal(s) after HUD acceptance 
during the agreed upon performance period of your grant. The final 
deliverable can be submitted to HUD during the agreed upon period of 
performance or during the 90-day closeout period following award 
expiration.
    (5) Budget Proposal (4 points).
    (a) Your budget proposal should thoroughly estimate all applicable 
direct and indirect costs, and be presented in a clear and coherent 
format in accordance with the requirements listed in the General 
Section. HUD is not required to approve or fund all proposed 
activities. You must thoroughly document and justify all budget 
categories and costs (Form HUD-424-CBW) and all major tasks, for 
yourself, sub-recipients, major subcontractors, joint venture 
participants, or others contributing resources to the project. A 
separate budget must be provided for partners who are proposed to 
receive more than 10 percent of the federal budget request.
    (b) Your narrative justification associated with these budgeted 
costs should be submitted as part of the Total Budget (Federal Share 
and Matching), but is not included in the 25-page limit for this 
submission.
    (c) The application will not be rated on the proposed cost; 
however, cost will be considered in addition to the rated factors to 
determine the proposal most advantageous to the Federal Government. 
Cost will be the deciding factor when proposals ranked under the listed 
factors are considered acceptable and are substantially equal.
    d. Rating Factor 4: Leveraging Resources (8 Points). Your proposal 
should demonstrate that the effectiveness of HUD's Technical Studies 
grant funds is being increased by securing other public and/or private 
resources or by structuring the project in a cost-effective manner, 
such as integrating the project into an existing study (either funded 
by HUD or another source) that will be concurrent with your proposed 
study. Resources may include funding or in-kind contributions (such as 
services, facilities or equipment) allocated to the purpose(s) of your 
project. Staff and in-kind contributions should be assigned a monetary 
value.
    You should provide evidence of leveraging/partnerships by 
submitting: Letters of firm commitment, memoranda of understanding, 
and/or agreements to participate from those entities identified as 
partners in the project efforts. Each document must include the 
organization's name, proposed level of commitment (with monetary value) 
and responsibilities as they relate to specific activities or tasks of 
your proposed program. The commitment must also be signed by an 
official of the organization legally able to make commitments on behalf 
of the organization. Simple letters that only indicate support of the 
proposed study are not sufficient.
    e. Rating Factor 5: Achieving Results and Program Evaluation (10 
Points). This factor emphasizes HUD's commitment to ensuring that 
applicants keep promises made in their applications and assess their 
performance to ensure performance goals are met. Achieving results 
means you, the applicant, have clearly identified the benefits or 
outcomes of your program. Outcomes are ultimate goals. Benchmarks or 
outputs are interim activities or products that lead to the ultimate 
achievement of your goals.
    Program evaluation requires that you, the applicant, identify 
program outcomes, interim products or benchmarks, and indicators that 
will allow you to measure your performance. Performance indicators 
should be objectively quantifiable and measure actual achievements 
against anticipated goals. Your evaluation plan should identify what 
you are going to measure, how you are going to measure it, and the 
steps you have in place to make adjustments to your work plan if 
performance targets are not met within established timeframes.

[[Page 11844]]

    This rating factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability. In evaluating this factor, HUD 
will consider how you have described the procedures you will follow to 
have reliable outcome measures and performance, so that the project 
will be recognized as being of high quality that provides benefits to 
the community.
    In your response to this Rating Factor, discuss the performance 
goals for your project and identify specific outcome measures. Describe 
how the outcome information will be obtained, documented, and reported. 
You must complete and return the eLogic Model TM Form HUD-
96010 included in the download instructions found as part of the 
application at http://www.Grants.gov/Apply. You must show your proposed 
project short-term, intermediate, long-term and final results. 
Instructions on the Logic model is contained in the General Section and 
instructions that are contained in Tab 1 of the electronic form. The 
form features drop down menus from which to select and construct the 
Logic Model response relevant to your proposal. The Master Logic Model 
is on the HUD Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm and the electronic version is in the instruction 
download at http://www.Grants.gov/APPLY under the program NOFA.
    Also, in responding to this factor, you should:
    (1) Identify benchmarks that you will use to track the progress of 
your study;
    (2) Identify important study milestones (e.g., the end of specific 
phases in a multiphase study, recruitment of study participants, 
developing a new analytical protocol), which should also be clearly 
indicated in your study timeline. Also identify potential obstacles in 
meeting these objectives, and discuss how you would respond to these 
obstacles;
    (3) For FY2006, HUD is considering a new concept for the Logic 
Model. The new concept is a Return on Investment statement. HUD will be 
publishing a separate notice on the ROI concept.

B. Review and Selection Process

    1. Corrections to Deficient Applications. The General Section 
provides the procedures for correcting deficient applications.
    2. Rating and Ranking. Awards will be made in rank order for each 
type of Technical Studies Program applications (Lead or Healthy Homes), 
within the limits of funding availability for the program.
    a. Partial Funding. In the selection process, HUD reserves the 
right to offer partial funding to any or all applicants. If you are 
offered a reduced grant amount, you will have a maximum of 14 calendar 
days to accept such a reduced award. If you fail to respond within the 
14-day limit, you shall be considered to have declined the award.
    b. Remaining Funds. See the General Section for HUD's procedures if 
funds remain after all selections have been made within either type of 
Technical Studies Program.

VI. Award Administration Information

A. Award Notices

    1. Notice of Award. Applicants who have been selected for award 
will be notified by letter from the Grant Officer. The letter will 
state the program for which the application has been selected, the 
amount the applicant is eligible to receive, and the name of the 
Government Technical Representative (GTR). This letter is not an 
authorization to begin work or incur costs under the award. An executed 
grant or cooperative agreement is the authorizing document.
    HUD may require that all the selected applicants participate in 
negotiations to determine the specific terms of the grant agreement and 
budget. If you accept the terms and conditions of the grant, you must 
return your signed grant agreement by the date specified during 
negotiation. In cases where HUD cannot successfully conclude 
negotiations with a selected applicant or a selected applicant fails to 
provide HUD with requested information, an award will not be made to 
that applicant. In this instance, HUD may offer an award, and proceed 
with negotiations with the next highest-ranking applicant. After 
receiving the letter, additional instructions on how to have the grant 
account entered into HUD's Line of Credit Control System (LOCCS) 
payment system or its successor will be provided. Other forms and 
program requirements will also be provided.
    In accordance with OMB Circular A-133 (Audits of States, Local 
Governments and Non-Profit Organizations), grantees expending $500,000 
in Federal funds within a program or fiscal year must submit their 
completed audit-reporting package along with the Data Collection Form 
(SF-SAC) to the Single Audit Clearinghouse, the address can be obtained 
from their Web site. The SF-SAC can be downloaded at http://harvester.census.gov/sac/.
    2. Debriefing. The General Section provides the procedures 
applicants should follow for requesting a debriefing.

B. Administrative and National Policy Requirements

1. Environmental Requirements
    a. Eligible Construction and Rehabilitation Activities.
    (1) A Technical Studies award does not constitute approval of 
specific sites where activities that are subject to environmental 
review may be carried out. Recipients conducting eligible construction 
and rehabilitation activities must comply with 24 CFR part 58, 
``Environmental Review Procedures for Entities Assuming HUD 
Environmental Responsibilities''. Recipients that are States, units of 
general local government or Indian tribes must carry out environmental 
review responsibilities as a responsible entity under part 58. Where 
the recipient is not a State, unit of general local government or 
Indian tribe, a responsible entity, usually the unit of general local 
government or Indian tribe, must assume the environmental review 
responsibilities for construction or rehabilitation activities funded 
under this NOFA. Under 24 CFR 58.11, where the recipient is not a 
State, unit of general local government or Indian tribe, if a 
responsible entity or the recipient objects to the responsible entity 
performing the environmental review, HUD may designate another 
responsible entity to perform the review or may perform the 
environmental review itself under the provisions of 24 CFR part 50. In 
such cases, following grant award execution, HUD will be responsible 
for ensuring that any necessary environmental reviews are completed. 
See paragraph (2) below for additional assistance.
    (2) For all grants under this NOFA, recipients and other 
participants in the project are prohibited from undertaking, or 
committing or expending HUD or non-HUD funds (including HUD leveraged 
or match funds) on, a project or activities under this NOFA (other than 
activities listed in 24 CFR 58.34, 58.35(b) or 58.22(f)) until the 
responsible entity completes an environmental review and the applicant 
submits and HUD approves a Request for the Release of Funds and the 
responsible entity's environmental certification (both on form HUD 
7015.15) or, in the case where the recipient is not a State, unit of 
general local government or Indian tribe and HUD has determined to 
perform the environmental review under part 50, HUD has completed the 
review and notified the grantee of its approval. The results of the 
environmental reviews may require that proposed activities be modified 
or proposed sites rejected. For

[[Page 11845]]

part 58 procedures, see http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm. For assistance, contact Karen Choi, the Office 
of Healthy Homes and Lead Hazard Control Environmental Officer at (213) 
534-2458 (this is not a toll free-number) or the HUD Environmental 
Review Officer in the HUD Field Office serving your area. If you are a 
hearing-or speech-impaired person, you may reach the telephone number 
via TTY by calling 1-800-HUD-2209. Recipients of a grant under these 
funded programs will be given additional guidance in these 
environmental responsibilities.
    b. All other activities not related to construction and 
rehabilitation activities are categorically excluded from the 
requirements of the National Environmental Policy Act of 1969 (42 
U.S.C. 4321) and are not subject to environmental review under the 
related laws and authorities.
    2. Program Performance. Awardees shall take all reasonable steps to 
accomplish all HUD-funded activities within the approved period of 
performance. HUD reserves the right to terminate the grant or 
cooperative agreement prior to the expiration of the period of 
performance if an awardee fails to make reasonable progress in 
implementing the approved program of activities.
    3. Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. If awarded assistance under this NOFA, prior to 
entering into a grant agreement with HUD, you will be required to 
submit a copy of your code of conduct and describe the methods you will 
use to ensure that all officers, employees, and agents of your 
organization are aware of your code of conduct. See the General Section 
for information about conducting business in accordance with HUD's core 
values and ethical standards.
    4. Participation in HUD-Sponsored Program Evaluation. See the 
General Section.
    5. Removal of Barriers to Affordable Housing. See the General 
Section.
    6. HUD Reform Act of 1989. The provisions of the HUD Reform Act of 
1989 that apply to this NOFA are explained in the General Section.
    7. Audit Requirements. Any grant recipient that expends $500,000 or 
more in federal financial assistance in a single year must meet the 
audit requirements established in 24 CFR parts 84 and 85 in accordance 
with OMB Circular A-133.
    8. Executive Order 13202. Compliance with HUD regulations at 24 CFR 
5.108 that implement Executive Order 13202, ``Preservation of Open 
Competition and Government Neutrality Towards Government Contractors' 
Labor Relations on Federal and Federally-Funded Construction 
Projects'', is a condition of receipt of assistance under this NOFA.


    Note: This Order only applies to construction work.


    9. Procurement of Recovered Materials. See the General Section for 
information concerning this requirement.

C. Reporting

    1. Post Award Reporting Requirements. Final budget and work plans 
are due 60 days after the start date.
    2. Quality Assurance Plan (QAP). Successful applicants will be 
required to submit a Quality Assurance Plan to HUD prior to initiating 
work under the grant. This is a streamlined version of the format used 
by some other federal agencies, and is intended to help ensure the 
accuracy and validity of the data that you will collect under the 
grant. You should plan for this and include it in your study work plan. 
See http://www.hud.gov/offices/lead, for the QAP template for this 
program.
    3. Progress Reporting. Progress reporting is required on a 
quarterly basis. Project benchmarks and milestones will be tracked 
using a benchmark spreadsheet that uses the benchmarks and milestones 
identified in the Logic Model form (HUD-96010) approved and 
incorporated into your award agreement. For specific reporting 
requirements, see policy guidance at: http://www.hud.gov/offices/lead.
    4. Racial and Ethnic Beneficiary Data. HUD does not require 
grantees to collect racial and ethnic beneficiary data for this 
program. Grantees conducting studies that do not involve people, such 
as those confined to the laboratory or certain types of environmental 
sampling, will not be required to submit Form-27061 to HUD. If, 
however, racial and ethnic data are collected and reported as part of a 
study funded under this program NOFA, you must use the Office of 
Management and Budget's Standards for the Collection of Racial and 
Ethnic Data as presented on Form HUD-27061, Racial and Ethnic Data 
Reporting Form (and instructions for its use), found on http://
www.grants.gov.
    5. Final Report. The grant agreement will specify the requirements 
for final reporting (e.g., final technical report and final project 
benchmarks and milestones achieved against the proposed benchmarks and 
milestones in the Logic Model which was approved and incorporated into 
your award agreement).
    6. Draft Scientific Manuscript(s). Copies of materials to be 
submitted for publication, at least one of which should be peer-
reviewed.

VII. Agency Contact(s)

    For technical help in downloading an application from Grants.gov or 
submitting an application via Grants.gov, call the Grants.gov help desk 
at 800-518-GRANTS. For programmatic questions on the Lead Technical 
Studies program, you may contact Dr. Robert Weisberg, Office of Healthy 
Homes and Lead Hazard Control, at (202) 755-1785, extension 7687 (this 
is not a toll-free number) or via e-mail at [email protected]. For programmatic questions on the Healthy Homes 
Technical Studies program, you may contact Dr. Peter Ashley, Office of 
Healthy Homes and Lead Hazard Control, at (202) 755-1785, extension 
7595 (this is not a toll-free number) or via e-mail at [email protected]. For grants administrative questions, you may contact 
Ms. Curtissa L. Coleman, Office of Healthy Homes and Lead Hazard 
Control, at telephone (202) 755-1785, extension 7580 (this is not a 
toll-free number) or via e-mail at [email protected]. If 
you are a hearing- or speech-impaired person, you may reach the above 
telephone numbers through TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339.

VIII. Other Information

A. Other Office of Healthy Homes and Lead Hazard Control Information

    For additional general, technical, and grant program information 
pertaining to the Office of Healthy Homes and Lead Hazard Control, 
visit http://www.hud.gov/offices/lead.

B. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2539-0015. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 80 hours per respondent for the application and 16 hours per

[[Page 11846]]

respondent hours per annum per respondent for grant administration. 
This includes the time for collecting, reviewing, and reporting the 
data for the application, quarterly 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.

C. Appendices

    Appendices A, B and C to this NOFA are available from HUD's Web 
site at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
BILLING CODE 4210-01-P

[[Page 11847]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.014


[[Page 11848]]



Lead Outreach Grant Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Healthy Homes and Lead Hazard Control (OHHLHC).
    B. Funding Opportunity Title: Lead Outreach Grant Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is: FR-
5030-N-17. The OMB approval number is 2539-0015.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.904, 
Lead Outreach Grant Program.
    F. Dates: The application deadline date is June 6, 2006.
    G. Additional Important Information:
    1. Overall Purpose. This funding opportunity is to provide funding 
for information dissemination about lead poisoning prevention through 
outreach, training and education, and certain technical assistance 
activities.
    2. Available Funds. Approximately $2 million is available under 
this program.
    3. Number of Awards. Approximately between 8-12 grants will be 
awarded.
    4. Type of Awards. The awards will be made as cooperative 
agreements.
    5. Eligible Applicants. Academic and non-for-profit institutions 
located in the U.S., state and local governments, and federally 
recognized Native American tribes are eligible under all existing 
authorizations. For-profit firms also are eligible; however, they are 
not allowed to earn a fee (i.e., no profit can be made from the 
project).
    6. Matching Requirements and Leveraging. Ten (10) percent match is 
required by the applicant. See Section III.B. for more information on 
match and leverage.
    7. Application information. Applications for this NOFA can be found 
at www.grants.gov. Applications must be received and validated by 
www.grants.gov no later than 11:59:59 PM eastern time on the 
application deadline date of June 6, 2006.
    8. Limitations on Applications. There are three categories of 
activity under this NOFA. Applicants must submit a completed 
application for each category for which they are applying.

Full Text of Announcement

I. Funding Opportunity Description

    Background information about lead, lead-based paint hazards and 
other information applicable to all OHHLHC NOFAs can be found on the 
OHHLHC's Web site at: www.hud.gov/offices/adm/grants/fundsavail.cfm.

A. Purpose of the Program

    The purpose of this program is to:
    1. Raise public awareness of childhood lead poisoning prevention 
and proper lead hazard identification and control methods for at-risk 
communities and children, especially underserved populations and 
minorities;
    2. Provide training and education: (A) Develop a sustainable 
national or regional/local capacity of trained and educated 
individuals. (B) Educate certain groups about lead hazards; educate 
tenants and homeowners so they can report lead hazards to property 
owners, managers and/or public health or housing officials, as 
appropriate.
    3. Provide technical assistance to grantees under OHHLHC's Lead 
Elimination Action Program (``LEAP''), Lead Hazard Control, Lead 
Technical Studies, and Lead Reduction Demonstration programs on grant 
management and lead technical issues.

B. Authority

    The authority for this program is sections 1011(e)(8) and (g)(1) of 
the Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X 
of the Housing and Community Development Act of 1992), and the 
Department of Housing and Urban Development Appropriations Act, 2006 
(Pub. L. 109-115, 119 Stat. 2396; approved November 30, 2005).

C. Changes in the FY 2006 Competitive NOFA

    Listed below are major changes from the FY 2005 Lead Outreach NOFA:
    1. Applicants may choose to apply for any or all of the three 
categories: (1) Outreach; (2) training and education and/or; (3) 
technical assistance to OHHLHC grantees. Applicants must submit a 
completed application for each category for which they are applying.
    2. Eligible activities relate to the category of activity selected 
and are narrowly identified.
    3. For-profit organizations are eligible to apply.
    4. Referral or enrollment of units in treatment programs is not 
required.
    5. Ten (10) percent match is required for eligibility. Leveraging 
beyond the match, though not required, will enable applicants to obtain 
points.
    6. All grantees funded under this program must use existing 
outreach, training curricula and technical assistance documents unless 
they adequately justify the need to create new ones.
    7. HUD has specified application format requirements.

II. Terms of Award

A. Available Funding

    Approximately $2 million in fiscal year 2006 and prior year funds 
is available under this program. Available funds will be divided among 
three activity categories: Community Outreach: Approximately $1.2 
million (approximately 5 cooperative agreements); Training and 
Education: Approximately $400,000 (approximately 2 cooperative 
agreements); OHHLHC Lead Grantee Technical Assistance: Approximately 
$400,000 (approximately 2 cooperative agreements). Technical Assistance 
applicants can apply for the nation as a whole and/or for one or more 
of the geographic areas:
    (1) Eastern United States. (HUD Region I (New England: CT, MA, ME, 
NH, RI, VT), Region II (NJ, NY), Region III (Mid-Atlantic: DC, DE, MD, 
PA, VA, WV), Region IV (Southeast: AL, MS, FL, KY, NC, GA, PR, SC, 
TN));
    (2) Central United States. (HUD Region V (Midwest: IL, IN, MI, MN, 
OH, WI), VI (Southwest: AR, LA, NM, OK, TX), VII (Great Plains: IA, MO, 
KS, NE), and VIII (Rocky Mountains: CO, MT, ND, SD, UT, WY)); and
    (3) Western United States. (HUD Region IX (Pacific/Hawaii: AZ, CA, 
HI, NV) and Region X (Northwest: AK, ID, OR, WA)).

B. Type of Award and Period of Performance

    Awards will be made as cooperative agreements with substantial 
government involvement. The anticipated start dates for new awards is 
expected to be October 1, 2006. The period of performance is 24 months 
from date of award.

III. Eligibility Information

A. Eligible Applicants

    Academic and not-for-profit institutions located in the U.S., state 
and local governments, and federally recognized Native American Tribes 
are eligible under all existing authorizations. For-profit firms also 
are eligible; however, they are not allowed to earn a fee (i.e., no 
profit can be made from the project). Existing OHHLHC grantees of (or 
applicants to) the following programs are not eligible to apply as 
applicants, subrecipients or contractors under this NOFA: lead hazard 
control, lead hazard reduction demonstration, Lead Elimination Action 
Program (LEAP), or Lead Technical Studies.

[[Page 11849]]

B. Cost Sharing or Matching Requirements

    Applicants must provide a matching contribution of at least 10 
percent of the requested cooperative agreement sum. Matching 
contributions may be in the form of cash, including private sector 
funding, or in-kind (non-cash) contributions or a combination of these 
sources. Program match shall be limited to contributions, which would 
be eligible for payment from cooperative agreement funds, and may be in 
the form of cash, including private sector funding, or in-kind (non-
cash) contributions or a combination of these sources. The applicant 
must submit a letter of commitment for the match from each organization 
other than itself that is providing a match, whether cash and/or in-
kind. The letter must indicate the amount and source of the match, and 
detail how the matching funds will be specifically dedicated to and 
integrated into supporting the proposed cooperative agreement program. 
The signature of the authorized official on the Form SF-424 commits 
matching or other contributed resources of the applicant organization. 
A separate letter from the applicant is not required.

C. Other

    1. Threshold Requirements. Applicants must also meet the threshold 
requirements of the General Section, including the Civil Rights 
threshold.
    2. Program Requirements and Program Priorities. This section 
consists of both general requirements for all three activity categories 
followed by specific program requirements for each activity category. 
Although it is possible that, in a particular community, one or more of 
these policy priorities may not be appropriate, applicants should 
conform to the following policies or explain their proposed deviation 
from them:
    a. General.
    (1) All activities under this program must assist the regional/
local area to develop or implement a strategy to eliminate lead 
poisoning, target at-risk populations or areas, and implement programs 
to meet those populations' information needs.
    (2) All grantees' regular, routine activities must provide 
information to owners and low-income occupants about regional/local 
resources for housing rehabilitation and lead hazard control programs.
    (3) All applicants are encouraged to target minority populations 
and utilize minority media in an effort to achieve diversity in 
outreach and educational efforts.
    (4) All printed products are to be submitted to HUD for review and 
in final form as deliverables in electronic format suitable for web 
posting.
    (5) Each awardee is expected to manage their program and use a 
project management tool, such as a logic model, to manage and evaluate 
their programs' effectiveness and modify their strategies as needed to 
achieve the greatest return on HUD's investment. Often, modest 
additional actions to gather information about results would enable 
grantees to better measure the impact of their outreach and education 
efforts.
    (6) Each awardee will be assigned a GTR (Government Technical 
Representative) at Headquarters, who will provide oversight and approve 
grantees' activities and deliverables. The Government Technical Monitor 
(GTM) will be the Healthy Homes Field Representative for the awardee's 
region. When planning and conducting activities to be held in the GTM's 
region, awardees shall inform the GTM of its plans and activities, 
consider the GTM's input and recommendations and report to the GTM (in 
addition to any other reporting requirements) the accomplishments of 
the assistance. However, the GTR has the ultimate authority to monitor 
the performance and approve deliverables and drawdowns.
    b. Specific program requirements for each of the three activity 
categories.
    (1) Outreach providers must:
    (a) Increase lead awareness among the general public;
    (b) Provide information to owners and low-income occupants about 
regional/local resources for housing rehabilitation and lead hazard 
control programs; and
    (c) Create a detailed outreach strategy as part of their work plan.
    (2) Training and Education providers must:
    (a) meet a documented regional/local need for:
    (i) sustainable capacity of lead-safety trained workers and/or EPA-
or state-certified lead professionals; or
    (ii) structured education of other groups about lead poisoning 
prevention and control;
    (b) target a specific, appropriate audience;
    (c) use a HUD-approved curriculum for all interim controls training 
and specify training materials to be used;
    (d) provide plans for sustainability including train-the-trainer 
programs.
    (3) TA providers must:
    (a) Observe the following priorities for content of TA:
    (i) performance of assessment, intervention or clearance goals 
according to work plan,
    (ii) improvement in the ability of grantees to design and implement 
programs that reflect sound management and fiscal controls,
    (iii) adequate documentation of income eligibility,
    (iv) adequate monitoring of subgrantees/subrecipients,
    (v) adequate monitoring and documenting of match and/or leverage 
funds, as applicable,
    (vi) compliance with Title X rules regarding the presence of 
children less than six years of age in assisted, owner-occupied units, 
and
    (vii) organizational, management and financial management controls.
    3. Description of National TA and Regional/local TA. Two types of 
technical assistance (TA) may be performed under this NOFA: National 
and Regional/local TA.
    a. National TA activities are those that address, at a nationwide 
level, one or more of the program activities and/or priorities 
identified in Section III of this NOFA. National TA activities may 
include the development of written products (if adequately justified), 
development of online materials and training courses, delivery of 
training courses previously approved by HUD, organization and delivery 
of workshops and conferences, and delivery of direct TA as part of a 
national program.
    b. Regional/local TA activities also must address the priorities 
identified in this NOFA. However, the Regional/local TA is targeted to 
the specific needs of OHHLHC's grantees in the regional area in which 
the TA is proposed. Regional/local TA activities are limited to the 
development of need assessments, direct TA to certain OHHLHC grantees, 
organization and delivery of workshops and conferences, and 
customization and delivery of previously HUD-approved trainings. 
Regional/local TA providers must notify regional/local HUD field 
offices of proposed activities, as appropriate. All TA activities will 
be administered by a Government Technical Representative (GTR) at HUD 
Headquarters and Government Technical Monitors (GTM) in various regions 
of the U.S. For more information on OHHLHC's grantees or a list of 
HUD's Healthy Homes Representatives and their regional distribution, 
please visit http://www.hud.gov/offices/lead. Information about HUD's 
field office locations may also be obtained on HUD's Web site at: 
http://www.hud.gov/localoffices.cfm.
    4. Demand-Response System. TA providers must operate within the 
structure of OHHLHC's demand-response system. Under the demand-response 
system, TA providers are required to:

[[Page 11850]]

    a. When requested by a GTR, market the availability of their 
services to existing and potential recipients within the jurisdictions 
in which the assistance will be delivered;
    b. Respond to requests for assistance from the TA provider's GTR;
    c. When requested by its GTR, conduct a needs assessment to 
identify the type and nature of the assistance needed by the recipient 
of the assistance; and,
    d. Obtain its GTR's approval before responding to direct requests 
for technical assistance from OHHLHC personnel or grantees.
    5. Training. All training activities performed under this program 
must conform to the following requirements:
    a. Design the course materials as ''step-in'' packages so that HUD 
or other TA providers may independently conduct the course on their 
own;
    b. Make the course materials available to the GTR in sufficient 
time for review (minimum of three weeks) and receive concurrence from 
the GTR on the content and quality prior to delivery;
    c. Provide all course materials in an electronic format that will 
permit wide distribution among TA providers, field offices, and HUD 
grantees;
    d. Arrange for delivery of the training with HUD participation when 
requested by the GTR;
    e. Establish minimum enrollments for deliveries of training 
courses; implement and disseminate fair course cancellation policies;
    f. Deliver HUD-approved training courses that have been designed 
and developed by others on a ''step-in'' basis when requested; and
    g. For Interim Controls (Lead Safe Work Practices), training 
providers must comply with HUD's Interim Criteria to Evaluate Training 
Courses in Lead-Safe Work Practices. The costs associated with 
attending these required sessions are eligible under the cooperative 
agreement.

D. Policies Applicable to All Categories in This NOFA

    1. Awardees must use or minimally adapt existing outreach, training 
and technical assistance documents unless they can adequately justify 
in their application that a dire need exists in their community to 
create new ones. Before creating a new product (such as a brochure, 
curriculum or technical document), grantees must investigate if a 
similar item already exists and can be used or revised with a level of 
effort lower than would be spent creating a new equivalent product. 
Applicants must ensure that materials are appropriate for the target 
populations, including persons with Limited English Proficiency (LEP), 
and for visually impaired or other disabled persons (see Eligible 
Activities, below). All new products and adaptations/translations must 
be submitted to HUD as deliverables, in electronic format suitable for 
Web posting.
    2. For use under this program, all documents in languages other 
than English must be culturally neutral (understandable by speakers of 
all dialects of the target language). Translators must be certified by 
the American Translators Association. Quality reviews are required for 
all translations. Translations will not be allowed for federal 
documents that have been translated into the target language. Awardees 
are responsible to determine if a translation already exists.
    3. Grantees are expected to communicate and coordinate, as 
appropriate, with other HUD program personnel and field offices at the 
direction of the GTR.
    4. All training activities must conform to the training 
requirements applicable to TA providers as described in this NOFA.

E. Eligible Activities

    Consideration will only be given to proposed activities that are 
specifically listed as eligible in this NOFA. Other work activities, 
although they may be supportive of lead hazard control grantees or 
their activities, are ineligible. All activities must address childhood 
lead poisoning prevention and/or control at the national and/or 
regional/local levels. Eligible activities relate to the three activity 
categories. The following section lists category-specific eligible 
activities.
    1. Activities Eligible under the Community Outreach Category:
    a. Door-to-door canvasses, small-group meetings, community meeting 
visits, health fairs, conducting presentations or speaking engagements 
to inform the public and owners of housing, including owners receiving 
rehabilitation or other tax credits, about programs that can assist in 
the control of the identified hazards; other activities to publicize or 
conduct events that highlight lead hazards in the home environment;
    b. Earned media (no-cost PSAs, news stories in radio, print, or TV 
to raise public awareness and promoting name recognition for treatment 
program);
    c. Advertising (paid ads on buses, billboards, etc.);
    d. Use of collateral materials and campaign props and incentives. 
These materials include outreach brochures and printed materials, 
visual presentations, giveaways with phone numbers/ contact information 
on Outreach Provider, mascots, cleaning kits, meals not to exceed $10 
in value per meal per person, etc., but not training materials (see 
Training and Education category). Outreach materials and props can 
support general outreach and education efforts. However, the budget 
must include details of the items including cost per item. All 
expenditures made by a grantee must be linked to specific outreach 
activities and listed in the approved budget.
    e. Development and maintenance of infrastructure and support such 
as telephone hotlines and web sites;
    f. Entering into working arrangements with regional/local non-
profit organizations, including grassroots community-based 
organizations, faith-based organizations; chambers of commerce; public 
and private social service agencies; corporations, retailers, 
construction organizations, or unions for the purpose of coordinating 
or conducting joint outreach activities.
    g. Other outreach activities designed to disseminate information to 
targeted populations identified as being at-risk of lead poisoning;
    h. Making materials available in alternative formats for persons 
with disabilities (e.g., Braille, audio, large type) upon request, and 
providing materials in languages other than English that are common in 
the community, consistent with HUD's published Limited English 
Proficiency (LEP) Recipient Guidance, 68 FR 70968 (see above);
    i. Program administration in accordance with the guidelines 
established under funding restrictions;
    j. Program evaluation and assessment activities to improve the 
effectiveness of present and future outreach efforts and to measure 
whether efforts have successfully been targeted to at risk populations;
    k. Innovative use of funds to provide direct technical expertise 
and assistance to regional/local community groups, residents, and other 
appropriate community stakeholders to resolve regional/local lead 
poisoning problems, as approved by the GTR;
    2. Activities Eligible under the Training and Education Category:
    a. Delivery of HUD-approved (or state-approved, as applicable) 
Lead-Safe Work Practices (Interim Controls), EPA-or state-approved lead 
training, or Lead Awareness training curricula to the target audience, 
visual assessment training;
    b. Training regional/local residents and businesses, including 
retail paint sales associates and managers, on

[[Page 11851]]

identifying and preventing lead-based paint hazards, and lead-safe 
maintenance and renovation work practices, etc.;
    c. Educating tenants, owners, housing inspectors, and others about 
HUD's lead safety regulations, including the Lead Disclosure Rule (24 
CFR part 35), regional/local building codes, and HUD's Housing Quality 
Standards (HQS) and Uniform Physical Condition Standards (UPCS), as 
applicable;
    d. Training curriculum design, development, maintenance and 
evaluation; preparing training materials, including photographs or 
other graphics. (Compliance with copyright laws is the responsibility 
of the grantee);
    e. Applying for or maintaining curriculum/provider jurisdictional 
or HUD approval (as applicable);
    f. Promoting or marketing training courses directly or through 
partnerships with organizations conducting outreach;
    g. Delivery of formal or one-on-one or group educational or 
training sessions in classrooms, homes or other locations;
    h. Delivery of informal one-on-one or group educational sessions, 
workshops or demonstrations in homes or other locations (cleaning 
techniques, etc.);
    i. Participation in training-related partnerships and task forces; 
and,
    j. Auditing course delivery, training, mentoring and evaluating 
trainers to increase lead safety training capacity.
    3. Activities Eligible under the Technical Assistance (TA) 
Category: Funds may be used to provide TA to grantees, their sub-
grantees and contractors of OHHLHC's grant programs for the following 
activities:
    a. Provide technical and/or general programmatic assistance to 
OHHLHC grantees in need of such assistance to develop recommendations 
for facilitating the quick and cost-effective implementation of Grantee 
work plans. Eligible activities for the TA category include 
communication with the GTR of the grant receiving TA, its GTM and grant 
officer, as described below.
    (1) Maintain liaison with the grantee, GTR for the grant receiving 
TA, GTM, and Grant Officer to help avoid resolve grant performance 
problems and resolve them when they occur.
    (2) Review grantee documents and records of operations, staff 
communications, grantee field and/or financial performance (within the 
limits of confidentiality), as well as meet with program personnel and 
partners.
    (3) Provide the GTR of the grant receiving TA and Grant Officer 
with copies of all correspondence issued to the grantee pertinent to 
activities for which the technical assistance is being provided.
    (4) Make recommendations to the GTR of the grant receiving TA on:
    (a) Program design;
    (b) Program management; and
    (c) Marketing.
    (5) Provide the GTR of the grant receiving TA with a final written 
TA report.
    b. TA activities also include, but are not limited to, reporting, 
developing or providing written information such as papers, manuals, 
guides, and brochures; needs assessments; and training.

IV. Application and Submission Information

A. Address To Request Application Package

    All the information required to submit an application can be 
downloaded from the Web at: http://www.grants.gov. Consult the General 
Section for more information. If you have difficulty accessing the 
information, you may call the Grants.gov helpline toll-free at (800) 
518-GRANTS or e-mail [email protected].

B. Content and Form of Application Submission

    1. Application Format. Because of the electronic submission 
process, proposals must conform to the formatting requirements below to 
be eligible. All material submitted must be required or be in support 
of the narrative response to the rating factors. Any material, whether 
required or supplemental, that is not properly located in the 
application, and referenced and discussed within the narrative 
statement as described below, will not be rated. The narrative response 
to all rating factors (see below) must be submitted within a single 
electronic file within the zip file attached to the application. The 
narrative response to the five rating factors may not exceed 25 pages 
(excluding required additional materials and worksheets, see below) 
equivalent to one-side only on 8\1/2\ x 11 inch paper using a standard 
12-point font with not less than \3/4\ inch margins on all sides. Each 
attachment or appendix must be an individual electronic file. All pages 
must be numbered in order starting with the cover page and continuing 
through the appendices.
    2. Prohibition on Materials Not Required. Submission of materials 
other than those specified as allowable by this NOFA are prohibited. 
Reviewers will not consider other resumes, reports, charts, letters, or 
any other documents attached to the application.
    3. Required Application Contents: Applications must contain all of 
the information required by this NOFA, including the following items:
    a. Application Abstract. An abstract is required. It may not exceed 
2 pages in length, and must summarize the proposed project, including 
the objectives, proposed activities and expected results, the dollar 
amount requested, and contact information for the applicant and project 
partners. The abstract will be used for developing the Congressional 
Release and Public Announcement if the application is funded.
    b. Narrative Response. A narrative statement with supporting 
required forms and other documents addressing the five rating factors 
for award is required. This portion of the application consists of a 
narrative response to each of the five rating factors (25-page limit), 
specific HUD-required forms documents (which do not count toward the 
page limit), and optional supplemental material (20-page limit). Pages 
in excess of these limits will not be read. Each of Rating Factors 1-5 
has an associated required form (HUD-96012, HUD-96013, HUD-96014, HUD-
96015, and HUD-96010, respectively) that does not count toward the page 
limits, and must be located immediately after the response to that 
rating factor (see list of forms, below). Applicants are advised to 
review each factor carefully for program specific requirements. The 
response to each factor should be concise and contain only information 
relevant to the factor, but detailed enough to address each factor 
fully. Please do not repeat material in response to the five factors; 
instead, focus on how well the proposal responds to each of the 
factors. In factors where there are sub-factors, each sub-factor must 
be presented separately, with the short title of the sub-factor 
presented. Make sure to address each sub-factor and provide sufficient 
information about every element of the sub-factor. All information 
relative to a given rating factor MUST be contained in the narrative 
for that rating factor. If it is found in a different rating factor, IT 
WILL NOT BE CONSIDERED. In addition, supplemental material that is not 
referenced and discussed within that portion of the narrative will not 
be considered.
    c. In addition to the abstract and narrative response described 
above, the following materials (which do not count toward the page 
limits) must be included in the locations specified: resumes, process 
flow diagram for the project (not the employer's organizational chart), 
budget, and other required forms. The standard forms can be found in 
the application package on Grants.gov and on HUD's Web site.

[[Page 11852]]

    (1) Resumes and a process flow diagram for your project must be 
placed immediately following the narrative response to Rating Factor 1. 
Resumes for project director, day-to-day program manager and up to 3 
key personnel (limited to 3 pages per resume for a maximum of 15 pages 
total) are required. (See Rating Factor 1.)
    (2) Include a detailed budget for any subcontractors, subgrantees, 
or subrecipients receiving greater than 10 percent of the federal 
budget request. Use the budget format discussed in Rating Factor 3.
    (3) Form HUD-96010, Logic Model, must be placed immediately 
following Rating Factor 5.
    (4) General letters of support have no value and are discouraged.
    d. Applicants are encouraged to use the following checklist to 
ensure that all required materials have been prepared and submitted. Do 
not submit the checklist (see below) with the application.

Checklist for Applicants

     Abstract (limited to 2 pages).
     Required information supporting Rating Factors.
    1. Capacity of the Applicant and Relevant Organizational Experience 
plus Form HUD-96012; Resumes of Proposed Project Director, Day-to-day 
Program Manager and up to 3 Key Personnel; Project Organization Chart.
    2. Need/Extent of the Problem plus Form HUD-96013.
    3. Soundness of Approach plus Form HUD-96014; budget forms and 
narrative budget justification.
    4. Matching and Leveraging Resources plus Forms HUD-96015, 
Leveraging Resources; Letters of Commitment attached immediately after 
Rating Factor 4.
    5. Achieving Results and Program Evaluation plus HUD-96010 Logic 
Model.
     Additional Material Supporting the Rating Factors 
(attachments, appendices, etc.: 20-page limit).
     Complete List of Required Forms and Budget Material.
     Form SF-424 (Application for Federal Assistance).
     Form HUD-CBW (Budget Worksheet).
     Form SF-424 Supplement (Survey on Ensuring Equal 
Opportunity for Applicants) (to be completed by private nonprofit 
organizations only).
     Form SF-LLL (if applicable) (Disclosure of Lobbying 
Activities).
     Form HUD-2880 (Applicant/Recipient Disclosure/Update 
Report).
     Form-2990 Certification of Consistency with the EZ/EC 
Strategic Plan (required only for applicants who are seeking these 
bonus points).
     Form HUD-2994A You Are Our Client Grant Applicant Survey 
(Optional).
     Form HUD-27300 Removal of Regulatory Barriers (if 
applicable) (up to 2 points can be awarded).
     Rating Factor Forms:
    [ctrcir] Rating Factor 1: HUD-96012.
    [ctrcir] Rating Factor 2: HUD-96013.
    [ctrcir] Rating Factor 3: HUD-96014.
    [ctrcir] Rating Factor 4: HUD-96015.
    [ctrcir] Rating Factor 5: HUD-96010.
    [ctrcir] Form HUD-96011 Facsimile Transmittal, for electronic 
applications (used as the cover page to transmit third-party documents 
and other documentation designed for each specific application for 
tracking purposes. HUD will not read faxes that do not use the HUD-
96011 as the cover page to the fax).

C. Submission Dates and Times

    Application Submission Dates: The application deadline date is June 
6, 2006. Refer to the General Section for additional requirements 
including registration requirements, deadline dates, Grants.gov 
validation, proof of delivery, and other information regarding 
electronic application submission via www.grants.gov.

D. Intergovernmental Review

    Not applicable to this program. See 24 CFR part 52.

E. Funding Restrictions

    1. Administrative Costs. Administrative costs are eligible. 
Administrative costs are the awardee's allowable direct and indirect 
costs for the overall management, coordination, monitoring, and 
evaluation for the program. No more than 10 percent of the funds can be 
used for administrative costs. This applies to applicants electing to 
serve as a conduit to sub-recipients, who will in turn perform the 
direct program activities eligible under this NOFA. Applicants are 
responsible for reviewing the important information about 
administrative costs that apply to this NOFA, which is posted on the 
OHHLHC's Web site at: http://www.hud.gov/offices/lead. Eligible 
administrative costs include leases for office space, under the 
following conditions:
    (1) The lease must be for existing facilities not requiring 
rehabilitation or construction;
    (2) No repairs or renovations of the property may be undertaken 
with federal funds:
    (3) Properties in the Coastal Barrier Resources System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased with federal funds.
    2. HUD will not fund the following ineligible activities:
    a. Purchase of real property.
    b. Purchase or lease of equipment having a per-unit cost in excess 
of $5,000, unless prior written approval is obtained from HUD.
    c. Identification of lead-based paint or hazards, hazard reduction 
(including, interim controls or abatement), rehabilitation, remodeling, 
maintenance, repair, or any other construction work, blood lead testing 
of adults or children, laboratory analysis, medical treatment, 
clearance examinations and visual assessment.
    d. Activities, by parties following a determination of non-
compliance, required in order to fulfill court orders or consent 
decrees, settlements, conciliation agreements, or other compliance 
agreements.
    e. Renovations or construction work on office space leased for the 
program.

F. Other Submission Requirements

    Applications are required to be submitted electronically via the 
Web site http://www.grants.gov. See Section IV.F of the General Section 
for additional information on the electronic process. Waivers may only 
be granted for cause. See General Section for further discussion.

V. Application Review Information

A. Criteria

    1. Following threshold review, applications will be reviewed by an 
Application Review Panel (ARP) which will assign each application a 
score based on the rating factors. Awards will be made separately in 
rank order within the limits of funding availability.
    2. HUD may use other information from sources at hand, such as 
Department records, newspapers, Inspector General or Government 
Accounting Office Reports or Findings, hotline complaints, or other 
sources of information that have been proven to have merit. HUD may 
also request additional information from successful applicants as 
conditions of award. If the applicant fails to provide the information 
at that time, the award will not be made.
    3. Factors for Award Used to Evaluate and Rate Application. The 
factors for rating and ranking applicants, and maximum points for each 
factor, are provided below. The maximum number of points to be awarded 
is 102, including the two (2) RC/EZ/EC-II bonus points. A specific 
number of

[[Page 11853]]

points is assigned to each rating factor. Applicants should be certain 
that these factors are adequately addressed in the project description 
and accompanying materials. Do not assume that HUD has any information 
about you or your project.
    4. Rating Factors for All Categories.
    a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience (20 points). This factor includes information 
about the organization, its individual employees and partners, and past 
performance. Higher points will be given for more recent, relevant 
experience of high quality. The following areas will be evaluated: 
organizational capacity, experience and past performance (for previous 
grantees), individual staff and participants' qualifications including 
education and experience, and specific qualifications related to the 
categories of activities under this NOFA.
    (1) Organizational Experience. This sub-factor addresses the extent 
to which the applicant has the organizational experience necessary to 
successfully implement the proposed activities in a timely manner. HUD 
will evaluate the organization's experience in initiating, 
implementing, and evaluating related outreach, health education and 
training, technical assistance and recruitment projects, or solving 
community problems directly related to this program. In rating this 
sub-factor, HUD will consider the extent to which the proposal 
demonstrates organizational experience that is recent and relevant. HUD 
will consider organizational experience within the last five (5) years 
to be recent and experience pertaining to activities of similar scope 
to be relevant.
    (a) Describe whether you have sufficient personnel, or will be able 
to quickly hire qualified experts or professionals to begin your 
proposed project within 30 days of award, if funded.
    (b) Describe how the principal components of your project 
organization will participate in, or support, your project, and how you 
propose to coordinate with your partners. Include a project-specific 
organizational chart indicating the organizational capacities of and 
interrelationships among the various entities involved in the project.
    (c) Past performance in previous projects with an emphasis on 
health education, outreach and recruitment, training and education, or 
technical assistance. This sub-factor evaluates the extent to which an 
applicant has performed previous work successfully. Provide details 
about the nature of projects performed through grants or contracts. 
Applicants failing to disclose previous grants or contracts with OHHLHC 
or HUD may be deemed ineligible for award. Provide the following 
specific information:
    (i) A detailed list outlining the achievement of specific tasks, 
measurable objectives (benchmarks) and outcomes consistent with the 
approved timeline/work plan;
    (ii) Comparison of proposed required match funds and resources in a 
previous grant with what was actually matched; and,
    (iii) A detailed list outlining the timeliness and completeness of 
complying with all reporting requirements. In addressing timeliness, 
compare when reports were due with when they were actually submitted.
    (2) Individual Qualifications:
    (a) Project Director and Day-to-Day Project Manager. Identify the 
individuals proposed to serve as the proposed overall project director 
and day-to-day project manager. The terms ``Project Director'' and 
``Day-to-Day Project Manager'' must be used in the application to earn 
points for individuals having these responsibilities, regardless of 
their current, employer-assigned position titles. Describe their 
individual qualifications that will enable them to function effectively 
in their assigned roles. Include knowledge, work experience, management 
experience, education, training, and publications. Include specific 
projects they have performed involving planning and managing large and 
complex interdisciplinary outreach, educational or TA programs, 
especially those involving housing, public health, or environmental 
initiatives.
    (b) Other Key Personnel. Identify up to three additional key 
personnel. For each, provide individual qualifications, experience, 
percentage commitment to the project, salary costs to be paid by funds 
from this program, and role in the proposed project. You must provide 
resumes (or position descriptions and copies of job announcements 
including salary range, for vacant positions) for the project director, 
project manager, and three additional key personnel.
    (c) Sub-recipients (sub-grantees, subcontractors and consultants). 
Include descriptions of their experience and qualifications. Detail 
their grant and financial management experience. You may find it useful 
to include a table indicating the name, position and percentage 
contribution of participating individuals, specifying organizational 
affiliation. Describe who is responsible for quality control of 
processes and materials produced by sub-recipients.
    (3) In addition to other eligibility criteria and knowledge of 
OHHLHC's grant programs, category applicants must also demonstrate 
specific capacity as follows:
    (a) Outreach Providers: specific capacity to provide outreach 
services, such as holding community meetings, health fairs, adapting 
printed materials, writing public service announcements, etc. 
Applications that include development and distribution of media 
products in languages other than English must include a discussion of 
the applicant's (or sub-grantee's/contractor's) expertise in those 
languages and in meeting the informational needs of non-English-
speaking, underserved populations. Outreach grantees involving face-to-
face interaction with the community should have staff that are well-
trained, motivated, committed to the program, and reflect the 
characteristics of the target community.
    (b) Training and Education Providers: Specific capacity to provide 
the type of training programs proposed.
    (c) Technical Assistance Providers: Specific capacity to provide 
technical assistance services related to grant management and lead-
based paint technical issues. Applicants may use in-house staff, sub-
contractors, sub-grantees, and regional/local organizations with the 
requisite experience and capabilities. Where appropriate, applicants 
should make use of TA providers located in the jurisdiction receiving 
services. This draws upon regional/local expertise and persons familiar 
with the opportunities and resources available in the area to be served 
while reducing travel and other costs associated with delivery of 
services.
    b. Rating Factor 2: Need/Extent of the Problem (10 Points). This 
factor addresses the extent to which there is a need for funding the 
proposed program activities and an indication of the importance of 
meeting the need(s) in the target area. The proposal will be evaluated 
on the extent to which the level of need for the proposed activities 
and the importance of meeting the need(s) are documented. Applicants 
must use statistics or other analyses contained in at least one or more 
current data sources that are sound and reliable. In rating this 
factor, HUD will consider data collected within the last five (5) years 
to be current. The data used must be specific to the area where the 
proposed activities will be carried out (for projects with specific 
regional/local target areas, do not apply the data to the entire 
regional/locality or state). To receive maximum points for this factor,

[[Page 11854]]

proposals addressing one or a few communities must explain the extent 
to which the targeted community's Five Year Consolidated Plan(s) and 
Analysis(es) of Impediments to Fair Housing Choice (AI) identify the 
level of the problem and the urgency in meeting the need. Applicants 
proposing TA services on a regional or national basis may demonstrate 
the extent to which there is a regional or national need to address 
deficiencies in Consolidated Plans. Sources for regional/localized data 
can be found at: http://www.ffiec.gov. Other reliable sources of data 
include, but are not limited to, Census reports, HUD Continuum of Care 
gap analysis and its E-Map (to find additional information, go to HUD's 
Web site: http://www.hud.gov/emaps), Comprehensive Plans, community 
needs analyses such as provided by the United Way, the applicant's 
institution, and other sound, reliable, and appropriate sources. Needs 
in terms of fulfilling court orders or consent decrees, settlements, 
conciliation agreements, and voluntary compliance agreements may also 
be addressed. TA providers may identify their specific areas of 
expertise and relate them to a demonstrated need.
    c. Rating Factor 3: Soundness of Approach (40 Points). This factor 
contains three sub-factors:
    (1) Your goals and objectives,
    (2) The quality and cost-effectiveness of your proposed work plan, 
and
    (3) Proposed budget.
    Higher points will be given to applications that contain approaches 
with clearly articulated goals, activities and sub-activities, and 
demonstrate a logical progression of implementation steps.
    (1) Project Goals (10 Points). Describe:
    (a) The goals and objectives for your project based on the need 
described under Rating Factor 2, and
    (b) How proposed activities would address your goals and HUD's 
policy priorities. See the General Section for information on HUD's 
policy priorities. The policy priorities that are applicable to the 
Lead Outreach grant NOFA and that are eligible for one point each are: 
(1) Improving our Nation's Communities (focus on distressed 
communities); and (2) providing full and equal access to grass-roots 
faith-based and other community-based organizations in HUD program 
implementation. Removal of regulatory barriers to affordable housing is 
eligible for up to 2 points provided the required documentation, as 
specified in form HUD 27300 (Removal of Regulatory Barriers), is part 
of the application submission to HUD. Applicants may also provide a Web 
site URL for a Web site where the required documentation is readily 
accessible for use.
    (2) Work Plan (20 Points). This portion of the response will be 
evaluated based on the extent to which the proposed work plan 
demonstrates the following:
    (a) The general approach and overall strategy to achieve stated 
goals. For maximum points for this factor, clearly define the 
relationship between a community's needs (goals) and proposed 
activities;
    (b) Specific, measurable and time-phased objectives for each major 
program activity, accompanied by a complementary schedule indicating 
proposed date(s) of completion (in three-month intervals);
    (c) Specific services and/or activities. The work plan must 
identify all major tasks and list all proposed activities in sequential 
order. Describe in detail how you will identify and serve participants 
receiving services, especially participants in high-risk groups and 
communities, vulnerable populations and persons traditionally 
underserved. Include a brief, concise outreach strategy or marketing 
plan, as applicable, in the work plan and list on the Logic Model 
(submitted under Rating Factor 5). Applicants must identify their 
approaches to overcoming poor response, attendance or participation 
difficulties. Explain how you will ensure that proposed activities do 
not duplicate activities by others for the target area previously 
completed or currently underway;
    (d) Identify the personnel responsible for major tasks;
    (e) Products or outputs and expected outcomes or impacts;
    (f) Proposed methods to research existing materials or develop new 
ones, and print and disseminate materials for outreach, training or TA. 
Describe how you will ensure that materials will be of consistently 
high quality and technically sound;
    (g) The quality of the plan to manage the project. Include details 
about your management and financial systems, and how you will track and 
ensure the cost-effectiveness of expenditures and will link them to 
specific activities;
    (h) How you propose to coordinate with HUD field offices and HUD 
program personnel, as applicable, in their applications; and
    (i) A detailed description of how you will make materials available 
in alternative formats for persons with disabilities (e.g., Braille, 
audio, large type) upon request, and provide materials in languages 
other than English that are common in the community, consistent with 
HUD's published Limited English Proficiency (LEP) Recipient Guidance, 
68 FR 70968.
    (j) Institutionalization (applies to outreach and training category 
applicants only). A detailed description of how the applicant plans to 
mainstream lead poisoning prevention into its regular, permanent 
programs. To evaluate institutionalization, HUD will evaluate the 
extent to which the applicant (and partners) demonstrate:
    (i) Commitment to undertake project activities in the future;
    (ii) Support and involvement of the applicant's organizational 
leadership;
    (iii) Commitment to include lead-related work in decisions 
affecting policy and program development; and,
    (iv) Evidence of mainstreaming of permanent lead safety content 
into programmatic materials, outreach, training, and technical 
assistance initiatives.
    In evaluating this sub-factor, HUD will also assess the probability 
of success of the program, the significance of the tasks identified, 
and how realistic the proposed time frames are. HUD will consider the 
extent to which proposals in the outreach category demonstrate the 
following characteristics derived from HUD's evaluation of successful 
outreach activities in its grant programs:
     Well-functioning, effective program;
     Solid communication capabilities;
     Participation in community events and presentation at 
small group meetings;
     Well-known and respected in the community;
     Staff that reflect the linguistic and ethnic 
characteristics of the target community;
     Establish good communication and coordination with sub-
grantees;
     Sub-grantees whose primary mission has a clear connection 
to protecting children from lead poisoning;
     Sub-grantees who are respected in their communities, 
capable of performing their required duties, and view lead safety as a 
critical component of serving the target community.
    (3) Budget Justification (10 Points). HUD is not required to 
approve or fund all proposed activities. Your budget will be evaluated 
for its reasonableness, clear justification, and consistency with the 
work plan. Submit a narrative justification associated with the budget 
that documents and explains all budget categories and costs for each 
major task of the work plan. Identify the source of funds as HUD, match 
or leverage. Each budget page should identify the entity and project 
year to which it applies. Higher points will be awarded for greater 
percentages of sub-contracting

[[Page 11855]]

and substantive work performed by grassroots organizations, including 
faith-based and other community-based non-profit organizations, Fair 
Housing Organizations, advocates for various minority and ethnic 
groups, and persons with disabilities.
    In completing the budget forms and justification, you should 
address the following specific elements:
    (a) Direct Labor. Direct Labor costs should include all full- and 
part-time staff required for the planning and implementation phases of 
the project. These costs should be based on full time equivalent (FTE) 
or hours per year (hours/year) (i.e., one FTE equals 2,080 hours/year);
    (b) Travel to HUD Meetings. You should budget for three trips to 
HUD Headquarters in Washington, DC, planning each trip for two people 
for 2 or 3 days, depending on your location;
    (c) Sub-grantee and Sub-recipient Budgets. A separate budget 
proposal must be provided for any sub-recipient(s) receiving greater 
than 10 percent of the total federal budget request;
    (d) Provide supporting documentation for salaries and cost of 
materials and equipment;
    (e) Federally Negotiated Indirect Cost Rate. Organizations that 
have a federally negotiated indirect cost rate should provide 
documentation of that rate. Organizations not having a federally 
negotiated rate schedule must obtain a rate from their cognizant 
federal agency. Applicant and sub-grantee budgets should reference only 
their own indirect cost rates.
    d. Rating Factor 4: (15 points). This factor evaluates ability to: 
(1) Contribute matching resources from your organization; (2) leverage 
(secure) other public and/or private sector resources (such as 
financing, supplies, or services) that can be added to HUD's funds to 
perform eligible activities; and, (3) sustain your proposed project 
from sources other than HUD. Ten (10) percent matching is required for 
funding eligibility and represents the applicant's contribution to the 
project. Leveraging, from entities other than the applicant, is not 
required for eligibility. Higher points will be awarded for higher 
percentages of matched and/or leveraged resources, compared to the 
amount of HUD funds requested. To receive points for match and 
leverage, all contributions promised during the period of performance 
must be expressed in dollar values and documented in a commitment 
letter submitted with the application from a responsible official of 
each contributing organization. Matching funds must be provided 
unconditionally. Indirect costs cannot be used as matching 
contributions in excess of the required ten (10) percent match. For 
more information on matching and leveraging resources, see OHHLHC's Web 
site at www.hud.gov/offices/lead.
    e. Rating Factor 5: Achieving Results and Program Evaluation (15 
points). This rating factor reflects HUD's goal to embrace high 
standards of ethics, management, and accountability. Describe in detail 
your needs and service activities, identify the outputs and short-term, 
intermediate-term and long-term outcomes. State clearly the project 
activities including specific goals (``benchmarks'') of each activity 
and how you will achieve those goals. Describe how you will measure the 
results. Provide your goals, inputs, activities, outcomes and 
performance benchmarks (goals) for the entire grant period. In the 
narrative, explain how you will document and track your goals, program 
activities, and schedules. Identify the procedures you will follow to 
make adjustments to your work plan to improve performance if benchmarks 
are not met within established timeframes.
    Applicants must complete and return the Logic Model Form HUD-90610. 
HUD is moving to a standardized ``Master'' Logic Model from which you 
can select needs, activities, and outcomes appropriate to your program. 
See the General Section for detailed information on use of the 
``Master'' Logic Model. HUD is requiring grantees to use program-
specific questions to self-evaluate the management and performance of 
their program. For FY2006, HUD is considering a new concept for the 
Logic Model. The new concept is a Return on Investment statement. HUD 
will be publishing a separate notice on the ROI concept. Training on 
HUD's Logic Model and reporting requirements for addressing the 
Management questions will be provided via satellite broadcast. In 
evaluating Rating Factor 5, HUD will consider how you have described 
the benefits and outcome measures of your program. HUD will also 
consider the evaluation plan, to ensure the project is on schedule and 
within budget. Information about developing a Logic Model is available 
at: http://www.hud.gov/offices/admin/grants/fundsavail.cfm.
    f. Bonus Points for Federally Designated Zones and Communities (2 
points). HUD will award two bonus points to each application that 
includes a valid form HUD-2990 certifying that the proposed activities/
projects in the application are consistent with the strategic plan for 
an empowerment zone (EZ) designated by HUD or the United States 
Department of Agriculture (USDA), the tax incentive utilization plan 
for an urban or rural renewal community designated by HUD (RC), or the 
strategic plan for an enterprise community designated in round II by 
USDA (EC-II) and that the proposed activities/projects will be located 
within the RC/EZ/EC-II identified above and are intended to serve the 
residents. A listing of the RC/EZ/EC-IIs is available on the Internet 
at http://www.hud.gov/cr.

B. Reviews and Selection Process

    1. Rating and Ranking. Awards will be made in rank order for 
applications within the limits of funds available.
    2. Partial Funding. In the selection process, HUD reserves the 
right to offer partial funding to any or all applicants. If you are 
offered a reduced grant amount, you will have a maximum of 14 calendar 
days to accept such a reduced award. If you fail to respond within the 
14-day limit, you shall be considered to have declined the award. 
Please see the General Section for a discussion of adjustments to 
funding that may be made by HUD during the selection process.
    3. Remaining Funds. See the General Section for HUD's procedures if 
funds remain after all selections have been made.
    4. Minimum Points for Award. Your application must receive a total 
score of at least 75 points to be considered for funding.

C. Anticipated Announcement and Award Dates

    HUD anticipates announcing awards under this program on or about 
October 1, 2006.

VI. Award Administration Information

A. Award Notices

    1. Notice of Award. Applicants that have been selected for award 
will be notified by letter from the Grant Officer. The letter will 
state the program for which the application has been selected, the 
amount the grantee is eligible to receive, and the name of the 
Government Technical Representative (GTR). This letter is not an 
authorization to begin work or incur costs under the grant.
    2. Negotiations. HUD may require that selected applicants 
participate in negotiations to determine the specific terms of the 
grant agreement and budget. In cases where HUD cannot successfully 
conclude negotiations with a selected applicant or a selected

[[Page 11856]]

applicant fails to provide HUD with requested information, an award 
will not be made to that applicant. In this instance, HUD may offer an 
award, and proceed with negotiations with the next highest-ranking 
applicant. If you accept the terms and conditions of the grant, you 
must return your signed grant agreement by the date specified during 
negotiation.
    3. Award Adjustments. Additionally, HUD may adjust the amount of 
funds allocated for specific geographical areas to fund National TA 
providers and other TA providers for activities that cannot be fully 
budgeted for or estimated by HUD at the time this NOFA was published. 
HUD may also require selected applicants, as a condition of funding, to 
provide coverage on a geographically broader basis than proposed in 
order to supplement or strengthen the TA network in terms of the size 
of the area covered and types and scope of TA proposed. If funds remain 
after all selections have been made, the remaining funds may be 
redistributed for Local TA and/or used for National TA, or made 
available for other TA program competitions.
    4. LOCCS Payment System. After receiving the letter, additional 
instructions on how to have the grant account entered into HUD's Line 
of Credit Control System (LOCCS) payment system will be provided. Other 
forms and program requirements will also be provided.
    5. Start of Work. All awardees are expected to commence activity 
immediately upon completion of budget and work plan negotiations, and 
execution of the grant agreement.
    6. Applicant Debriefing. See the General Section for information 
regarding unsuccessful applicant debriefing.

B. Administrative and National Policy Requirements

    1. Environmental Review. In accordance with 24 CFR 50.19(b)(2), 
(b)(3) and (b)(9), activities assisted under this program are 
categorically excluded from the requirements of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321) and are not subject 
to environmental review under the related laws and authorities.
    2. HUD Reform Act of 1989. Applicants must comply with the 
requirements for funding competitions established by the HUD Reform Act 
of 1989 (42 U.S.C. 3531 et seq.) as defined in the General Section.
    3. Audit Requirements. Any grant recipient that expends $500,000 or 
more in federal financial assistance in a single year must meet the 
audit requirements established in 24 CFR parts 84 and 85 in accordance 
with OMB Circular A-133. In accordance with OMB Circular A-133 (Audits 
of States, Regional/local Governments and Non-Profit Organizations), 
grantees will have to submit their completed audit-reporting package 
along with the Data Collection Form (SF-SAC) to the Single Audit 
Clearinghouse, at the address obtained from their Web site. The SF-SAC 
can be downloaded at: http://harvester.census.gov/sac/.
    4. Timely Hiring of Staff. HUD reserves the right to terminate 
grant awards made to applicants that fail to timely hire (within 90 
days of award) staff to fill key positions identified in the 
applicant's proposal as vacant.
    5. Executive Order 13202. Compliance with HUD regulations at 24 CFR 
5.108 that implement Executive Order 13202, ``Preservation of Open 
Competition and Government Neutrality Towards Government Contractors' 
Labor Relations on Federal and Federally Funded Construction 
Projects'', is a condition of receipt of assistance under this NOFA.
    6. Procurement of Recovered Materials. See the General Section for 
further information.
    7. Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. Refer to the General Section for information about 
conducting business in accordance with HUD's core values and ethical 
standards.

C. Reporting

    The following items are Post-Award Reporting Requirements.
    1. Final Budget and Work Plan. Final budget and work plans are due 
60 days after the effective date of the grant.
    2. Racial and Ethnic Data Reporting Form. For all activities that 
involve working directly with beneficiaries, HUD requires that funded 
recipients collect racial and ethnic beneficiary data. HUD does not 
require Outreach awardees to report ethnic and racial beneficiary data 
as part of their application package. However, such data must be 
reported annually, at a minimum, during the implementation of your 
program. You must use the Office of Management and Budget's Standards 
for the Collection of Racial and Ethnic Data to report these data, 
using Form HUD-27061, Racial and Ethnic Data Reporting Form, found on 
www.grants.gov, along with instructions for its use, or a comparable 
electronic data system for this purpose.
    3. Progress reporting. Progress reporting is done on a quarterly 
basis. For specific reporting requirements, see policy guidance at: 
http://www.hud.gov/offices/lead. OHHLHC awardees submit quarterly 
reports via an on-line reporting system. Beginning in FY 2006, OHHLHC 
will use the awardee's Logic Model to measure its performance. The 
quarterly report must reflect all benchmarks (output goals) and 
proposed outcomes (results) that are indicated on the Logic Model with 
an associated cost estimate. Attaching a dollar value to the outputs 
and outcomes enables awardees to meet HUD's reporting requirements.
    4. Final Report. An overall final grant report, due at the 
completion of the grant, will detail activities (e.g., the number of 
low-income housing units enrolled in lead hazard treatment programs as 
a result of activities performed under this grant, number and type of 
materials produced, activities conducted, evaluation of the various 
outreach and educational methods used, findings, and recommended future 
actions at the conclusion of grant activities). The final report shall 
include final project benchmarks and milestones achieved against the 
proposed benchmarks and milestones in the Logic Model (Form HUD-96010) 
approved and incorporated into your award agreement.

VII. Agency Contacts

    For programmatic questions, you may contact Jonnette Hawkins, 
Office of Healthy Homes and Lead Hazard Control; telephone (202) 755-
1785, extension 7593 (this is not a toll-free number) or via e-mail at 
[email protected]. For grants administrative questions, you 
may contact Mr. Royal Rucker, Office of Healthy Homes and Lead Hazard 
Control; telephone (202) 755-1785, extension 7584 (this is not a toll-
free number) or via e-mail at Royal A. [email protected]. If neither of 
these individuals is available, you may contact the Office's general 
Lead Regulations hotline, at (202) 755-1785, extension 7698. Your call 
will be forwarded in one business day for subsequent response by the 
appropriate staff. If you are a hearing-or speech-impaired person, you 
may reach the above telephone numbers through TTY by calling the toll-
free Federal Information Relay Service at 800-877-8339.

VIII. Other Information

    For additional information about this NOFA, program, or for 
general, technical, and grant program information pertaining to the 
Office of Healthy Homes and Lead Hazard

[[Page 11857]]

Control, visit: http://www.hud.gov/offices/lead.

IX. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2539-0015. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 80 hours per annum per respondent for the application and 16 
hours per annum for grant administration. This includes the time for 
collecting, reviewing, and reporting the data for the application, 
semi-annual reports, and final report. The information will be used for 
grantee selection and monitoring the administration of funds. Response 
to this request for information is required in order to receive the 
benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11858]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.015


[[Page 11859]]



Healthy Homes Demonstration Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Healthy Homes and Lead Hazard Control (OHHLHC).
    B. Funding Opportunity Title: Healthy Homes Demonstration Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is: FR-
5030-N-10. The OMB Paperwork approval number is: 2539-0015.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.901 
Healthy Homes Demonstration Program.
    F. Dates: The application deadline date is June 7, 2006. 
Applications submitted through http://www.grants.gov must be received 
and validated by grants.gov no later than 11:59:59 pm eastern time on 
the application deadline date. See the General Section IV, regarding 
application submission procedures and timely filing requirements.
    G. Additional Overview Content Information. 1. Purpose of the 
Program. The purpose of the Healthy Homes Demonstration Program is to 
develop, demonstrate, and promote cost-effective, preventive measures 
to correct multiple safety and health hazards in the home environment 
that produce serious diseases and injuries in children of low-income 
families.
    2. Available Funds. HUD anticipates that approximately $4,370,000 
million in fiscal year 2006 and prior year funds will be available.
    3. Number of Awards. Approximately four to approximately six 
cooperative agreements will be awarded ranging up to a maximum of 
$1,000,000, and an award will be made to resolve a funding error under 
the fiscal year 2004 Healthy Homes Demonstration NOFA.
    4. Eligible Applicants. Include not-for-profit institutions and 
for-profit firms, located in the U.S., state and local governments, 
federally recognized Indian Tribes, and colleges and universities. For-
profit firms are not allowed to make a profit from the project.
    5. Type of award. Cooperative Agreement.
    6. Match. None required, but strongly encouraged.
    7. Limitations. There are no limitations on the number of 
applications that each applicant can submit.
    8. Information on application. The applications for this NOFA can 
be found at www.grants.gov. The General Section contains information 
about Grants.gov registration, submission requirements, and submission 
procedures.

Full Text of Announcement

I. Funding Opportunity Description

A. Background

    The Healthy Homes Demonstration Program is a part of HUD's Healthy 
Homes Initiative (HHI). In April 1999, HUD submitted to Congress a 
preliminary plan containing a full description of the HHI. This 
description (Summary and Full Report) is available on the HUD Web site 
at: http://www.hud.gov/offices/lead/reports/HHIFull.pdf; this site also 
contains additional information on the HHI and a link to its Web site.
    HUD believes that it is important for grantees to incorporate 
meaningful community participation, to the greatest extent possible, in 
the development and implementation of programs that are conducted in 
communities and/or involve significant interaction with community 
residents. Community participation can improve program effectiveness in 
various ways, including the development of more salient program 
objectives, recruitment and retention of study participants, 
participants' understanding of the program, ongoing communication, and 
more effectively disseminating study findings.
    HUD encourages applicants to consider using a ``community based 
participatory research (CBPR)'' approach, where applicable, in study 
design and implementation. (See, e.g., the report published by the 
National Institute of Environmental Health Sciences titled ``Successful 
Models of Community-Based Participatory Research'' at: http://www.niehs.nih.gov/translat/pubs.htm). CBPR is characterized by 
substantial community input in all phases of a study (i.e., design, 
implementation, data interpretation, conclusions, and communication of 
results). The HHI seeks proposals that provide a coordinated approach 
to address multiple hazards caused by a limited number of building 
deficiencies. The HHI approach should result in substantial savings 
since separate visits to a home by an inspector, public health nurse, 
or outreach worker can add significant costs.
    In addition to deficiencies in basic housing facilities that may 
impact health, changes in the U.S. housing stock and more sophisticated 
epidemiological methods and biomedical research have led to the 
identification of new and often more subtle health hazards in the 
residential environment. While such health hazards will tend to be 
found disproportionately in housing that is substandard (e.g., 
structural problems, lack of adequate heat, etc.), these environmental 
health hazards also exist in housing that is otherwise of good quality. 
A brief description of the housing-associated health and injury hazards 
HUD considers key targets for intervention can be found on HUD's 
website at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm. The 
website also lists some of the references that serve as the basis for 
the information provided in the Healthy Homes Demonstration Program 
NOFA.

B. Healthy Homes Initiative Goals

    1. Develop and implement demonstration projects that address 
multiple housing-related problems affecting the health of children;
    2. Mobilize public and private resources, involving cooperation 
among all levels of government, the private sector, and grassroots 
community-based, nonprofit organizations, including faith-based 
organizations, to develop the most promising, cost-effective methods 
for identifying and controlling housing-based health hazards;
    3. Build local capacity to operate sustainable programs that will 
prevent and control housing-based health hazards in low- and very low-
income residences when HUD funding is exhausted; and
    4. Affirmatively further fair housing and environmental justice. 
HUD encourages applicants to undertake specific activities that will 
assist the Department in implementing its Policy Priorities. HUD's 
fiscal year 2006 Policy Priorities are discussed in the General 
Section.

C. Healthy Homes Demonstration Objectives

    The objectives of the Healthy Homes Demonstration Program include 
direct remediations, (that include assessment of housing-related 
hazards), education and outreach and capacity building. HUD recognizes 
that, in many cases, activities may meet multiple objectives. Awardees 
must expend at least 65% of grant funds on direct remediations in the 
home.
    1. Direct remediations that target children in homes where 
environmental triggers may be contributing to the child's illness may 
include the following kinds of activities:
    a. As part of your targeted home intervention program, development 
of cost-effective protocols for identifying homes that are candidates 
for remediations, identifying health hazards

[[Page 11860]]

in these homes, and screening out homes where structural or other 
factors (e.g., cost) make remediations impractical;
    b. As part of your targeted home intervention program, development 
of appropriately scaled, flexible, cost-effective and efficient 
assessment and intervention strategies that take into account the range 
of unhealthy conditions encountered in housing, that maximize the 
number of housing units that receive remediations and the number of 
positive or negative health outcomes as a result. HUD believes health 
outcomes are an important component of this NOFA and wants to assess 
how remediations affect the health of the population being served, and 
be able to compare with the population at large. Therefore any health 
outcome, positive, negative or neutral, should be documented where 
appropriate.
    c. As part of your targeted home intervention programs, development 
of methodologies for evaluating intervention effectiveness and 
assessing the effect of the intervention on resident or program 
participant health.
    2. Education and outreach that furthers the goal of protecting 
children from environmentally induced illness, including:
    a. Targeting, through education and outreach, specific high-risk 
communities and other identified audiences such as homeowners, 
landlords, health care deliverers, pregnant women, children, 
residential construction contractors, maintenance personnel, housing 
inspectors, real estate professionals, home buyers, and low-income 
minority families;
    b. Development and delivery of public outreach programs that 
provide information about effective methods for preventing housing-
related childhood diseases and injuries, and promote the use of these 
remediations, especially in low- and very low-income residences;
    c. Increased public awareness of housing-related health hazards 
that threaten children, through the use of media strategies using 
print, radio and television, including the use of minority media and 
provision of materials in alternative formats and materials for 
populations with Limited English Proficiency (LEP)).
    3. Capacity Building in the target community to assure Healthy 
Homes programs are sustained beyond the life of the award period, 
including:
    a. Development of local capacity in target areas for target groups 
to operate sustainable programs to prevent and control housing-based 
health hazards.
    The authority for this program is sections 501 and 502 of the 
Housing and Urban Development Act of 1970 and the Consolidated 
Appropriations Act, 2006 (Transportation, Treasury, Housing and Urban 
Development, the Judiciary, the District of Columbia, and Independent 
Agencies Appropriations Act, 2006 Public Law 109-115, 119 Stat. 2396, 
approved: November 30, 2006.)

II. Award Information

A. Funding Available

    Approximately $4,370,000 million in fiscal year 2006 funds are 
available for the Healthy Homes Demonstration Program cooperative 
agreements, of which HUD will award a grant of $1,000,000 in fiscal 
year 2006 funds to Self-Help, Inc., Avon, MA, to resolve a funding 
error under the fiscal year 2004 Healthy Homes Demonstration Program 
NOFA, in accordance with Sec. VI.A.3 of the fiscal year 2004 General 
Section. HUD anticipates that approximately four to six cooperative 
agreements will be awarded, ranging up to and including $1,000,000.
    Applicants may wish to review of currently funded grants on the 
Healthy Homes Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm/offics/adm/grants/fundsavail.cfm.

B. Anticipated Start Date and Period of Performance for New Cooperative 
Agreements

    The start date for new Cooperative Agreements is expected to be 
October 1, 2006, with a period of performance not to exceed 36 months. 
Applicants may need to plan studies with performance periods less than 
36 months, if necessary to include adequate time for the Institutional 
Review Board process, recruitment of study participants, and 
development of new methods (e.g., survey forms, data base, etc).

III. Eligibility Information

A. Eligible Applicants

    Eligible applicants include not-for-profit institutions and for-
profit firms, located in the U.S., state and local governments, and 
federally recognized Indian Tribes. For-profit firms are not allowed to 
make a profit from the project.

B. Cost Sharing or Matching

    Cost sharing or matching is not required. In rating your 
application, however, HUD will award a higher score under Rating Factor 
4 if you provide evidence of significant leveraging.

C. Other

1. Threshold Requirements Applicable to All Applicants Under the 
SuperNOFA
    As an applicant, you must meet all the threshold requirements 
described in the General Section. Applications that do not address the 
threshold items will not be funded. Cooperative agreements will be 
awarded on a competitive basis following evaluation of all proposals 
according to the rating factors described in this NOFA. A minimum score 
of 75 out of a possible 102, which includes up to 2 bonus points for 
activities proposed to be located in RC/EZ/EC-II communities is 
required for award consideration.
2. Eligible Activities
    The following activities and support tasks are eligible under the 
Healthy Homes Demonstration Program.
    a. Evaluating housing to determine the presence of health hazards 
(e.g., moisture intrusion, mold growth, pests and allergens, unvented 
appliances, exposed steam pipes or radiators, deteriorated lead-based 
paint) through the use of accepted assessment procedures.
    b. Remediating existing housing-based health hazards and addressing 
conditions that could recur.
    c. Undertaking rehabilitation activities to effectively control 
housing-based health hazards, without which the intervention could not 
be completed and maintained. Funds under this program may only be used 
to address lead-based hazards at the de minims level (see 24 CFR 
35.1350(d)). Such lead hazard evaluation and/or controls may not be a 
principal focus of the cooperative agreement or grant. (Lead hazard 
evaluation control activities are carried out under HUD's Lead-Based 
Paint Hazard Control Grant Program, Lead Hazard Demonstration Grant 
Program, Operation Lead Elimination Action Program, and Lead Outreach 
Grant Program.) For information about conducting de minims remediation 
for lead-based paint hazards, refer to the HUD Guidelines for the 
Evaluation and Control of Lead-Based Hazards in Housing (HUD 
Guidelines). The Guidelines and/or applicable regulations may be 
downloaded from HUD's Web site at www.hud.gov/offices/lead/leadsaferule/LSFRFinal_21June04.rte.
    d. Carrying out temporary relocation of families and individuals 
while the remediation is conducted and until the time the affected unit 
receives clearance for re-occupancy. See the General Section and 
Section VI.B.4 of this NOFA

[[Page 11861]]

for discussion of regulations that apply when relocating families.
    e. Environmental sampling and medical testing to protect the health 
of the intervention workers, supervisors, and contractors, unless 
reimbursable from another source.
    f. Conducting testing, analysis, and mitigation for lead, mold, 
carbon monoxide and/or other housing-related health hazards as 
appropriate, following generally accepted standards or criteria. A 
laboratory recognized by the Environmental Protection Agency's (EPA's) 
National Lead Laboratory Accreditation Program (NLLAP) must analyze 
clearance dust samples related to lead-based paint. Samples to be 
analyzed for fungible submitted to a laboratory accredited in the 
Environmental Microbiological Laboratory Accreditation Program (EMLAP), 
administered by the American Industrial Hygiene Association (AIHA).
    g. Carrying out necessary architectural, engineering and work 
specification development and other construction management services.
    h. Providing training on Healthy Homes practices to homeowners, 
renters, painters, remodelers, and housing maintenance staff working in 
low- or very low-income housing.
    i. Providing cleaning supplies for hazard intervention and hazard 
control to grassroots community-based nonprofit organizations, 
including faith-based organizations, for use by homeowners and tenants 
in low-income housing, or to such homeowners and tenants directly. (See 
the General Section for more information about grassroots community-
based nonprofit organizations, including faith-based organizations.)
    j. Providing modest incentives (financial or other, i.e. coupons 
for a video rental, coupons for groceries; stipends for completion of 
surveys, child care, cleaning kits, etc.) subject to approval by HUD, 
to encourage recruitment and retention in the interventions, 
participation in educational and training activities and other program-
related functions.
    k. Conducting community education programs on environmental health 
and safety hazards. Materials should be available in alternative 
formats for persons with disabilities (e.g., Braille, audio, large 
type) upon request, and in languages other than English that are common 
in the community, consistent with HUD's published ``Limited English 
Proficiency (LEP) Recipient Guidance'' (see http://www.hud.gov/offices/fheo/promotingFH/LEP/cfm).
    l. Securing liability insurance for housing-related health hazard 
evaluation and control activities. This is not considered an 
administrative cost.
    m. Supporting data collection, analysis, and evaluation of project 
activities. (As a condition of the receipt of financial assistance 
under this NOFA, all successful applicants will be required to 
cooperate with all HUD staff and contractors performing HUD funded 
research and evaluation studies.)
3. Program Requirements
    In addition to the program requirements in the General Section, 
applicants must also meet the following program requirements.
    a. Institutional Review Board (IRB) Approval. In conformance with 
the Common Rule (Federal Policy for the Protection of Human Subjects, 
codified by HUD at 24 CFR 60.101), if your grant activities include 
research involving human subjects, your organization must provide an 
assurance (e.g., a letter signed by an appropriate official) that the 
research has been reviewed and approved by an IRB before you can 
initiate activities that require IRB approval. You must also provide 
the number for your organization's assurance (i.e., an ``institutional 
assurance'') that has been approved by the Department of Health and 
Human Service's Office of Human Research Protections (OHRP). For 
additional information on what constitutes human subject research or 
how to obtain an institutional assurance see the OHRP Web site at: 
http://www.hhs.gov/ohrp.
    b. HIPAA Authorization. The Privacy Rule of the Health Insurance 
Portability and Accountability Act of 1996 requires covered entities 
that transmit health information electronically (health care providers, 
health plans, etc.) to protect that information. This may be 
accomplished by obtaining authorization from the patient or parent, 
obtaining a waiver of authorization from an IRB or HIPAA Privacy Board 
or de-identifying data. You should identify whether your proposal will 
fall under the HIPAA Privacy Rule and if so how you plan to address 
these requirements. Additional information on HIPAA and the Privacy 
Rule can be found at http://www.hhs.gov/ocr/hipaa.
    c. Community Involvement. Applicants must incorporate meaningful 
community involvement throughout the entire program in any study that 
requires a significant level of interaction with a community (e.g., 
projects being conducted within occupied dwellings or which involve 
surveys of community residents). A community is made up of various 
groups of persons who have commonalities that can be identified (e.g., 
based on geographic location, ethnicity, health condition, common 
interests). Applicants should identify the community that is most 
relevant to their particular project. There are many different 
approaches to involving the community in the conception, design, and 
implementation of a project and the subsequent dissemination of 
findings. Examples include, but are not limited to: Establishing a 
structured approach to obtain community input and feedback (e.g., 
through a community advisory board); including one or more community-
based organizations as study partners; employing community residents to 
recruit study participants and collect data; and enlisting the 
community in the dissemination of findings and translation of results 
into improved policies and/or practices. A discussion of community 
involvement in research involving housing-related health hazards can be 
found in Chapter 5 of the Institute of Medicine publication titled 
``Ethical Considerations for Research on Housing-Related Health Hazards 
Involving Children,'' at: http://www.iom.edu/cms/12552/26004/2981.aspx.
    d. Program Performance. Awardees shall take all reasonable steps to 
accomplish all healthy homes activities within the approved period of 
performance. HUD will closely monitor the awardee's performance with 
particular attention to completion of specified activities, 
deliverables and milestones, and number of units proposed to be 
assessed or to receive remediation. Any previous requests for no cost 
extensions will be taken into account when evaluating the capacity of 
the applicant to do the work under Rating Factor 1.
    e. Work Activities. All lead hazard control activities must be 
conducted in compliance with HUD's Lead-Safe Housing Rule, 24 CFR Part 
35. Grantees must also comply with any additional requirements in 
effect under a state or Native American Tribal Lead-Based Paint 
Training and Certification Program that has been authorized by the EPA 
pursuant to 40 CFR 745.320.
    f. Compliance with Lead Disclosure Rule. All lead-based paint and 
lead-based paint hazard test and hazard reduction results must be 
provided to the owner of the unit, with a statement describing the 
owner's legal duty to disclose the results to tenants (before initial 
leasing, or before lease renewal with changes) and buyers (before sale) 
if the housing was constructed before 1978 (24 CFR Part 35, subpart A). 
This information may only be used for

[[Page 11862]]

purposes of remediation of hazards in the unit and not for retribution/
eviction. Disclosure of other identified housing-related health or 
safety hazards to the owner of the unit, for purposes of remediation, 
is encouraged but not required.
    g. Integrated Pest Management. All pest control activities shall 
incorporate the principles and methods of integrated pest management 
(IPM). In technical terms, IPM is the coordinated use of pest and 
environmental information with available pest control methods to 
prevent unacceptable levels of pest damage by the most economical means 
and with the least possible hazard to people, property, and the 
environment. The IPM approach emphasizes a targeted use of pesticides 
that limits the possibility of human exposure (e.g., as opposed to 
wide-spread applications) and includes interventions based on the 
behavior of the target pest (e.g., preventing access to food or water). 
One source for information on IPM is Environmental Health Watch; you 
can download information from its web site: http://www.ehw.org/Asthma/ASTH_Cockroach_Control.htm.
    h. Dust Sampling Protocol. Awardees collecting samples of settled 
dust from participant homes for environmental allergen analyses (e.g., 
cockroach, dust mite) will be required to use a standard dust sampling 
protocol, unless there is a strong justification to use an alternate 
protocol. The HUD protocol is posted on the OHHLHC Web site at: http://www.hud.gov/offices/lead/techstudies/allergen-dust-sample.protocol.doc. 
Awardees conducting these analyses will also be required to include 
quality control dust samples, provided by OHHLHC at no cost, with the 
samples that are submitted for laboratory analyses. For the purpose of 
budgeting laboratory costs, assume that 5% of your total allergen dust 
samples would consist of QC samples.
    i. Hazardous Waste Disposal. Awardees must follow procedures for 
hazardous waste disposal as required by the EPA (e.g., 40 CFR parts 61, 
260-282, 300-374, and/or 700-799, as applicable), the Department of 
Transportation (e.g., 49 CFR parts 171-177), and/or appropriate state 
or local regulatory agencies.
    j. Worker Protection Procedures. Awardees must comply with the 
procedures for worker protection established in the HUD Guidelines as 
well as the requirements of OHSA, e.g., 29 CFR part 1910 and/or 1926, 
as applicable, or the state or local occupational safety and health 
regulations, whichever are more stringent.
    k. Written Policies and Procedures. You must have written policies 
and procedures for all phases of interventions, including evaluation, 
development of specifications, financing, occupant relocation, 
independent project inspection, and clearance testing (e.g., for mold, 
lead, carbon monoxide or other hazards, as applicable). You and all 
your subcontractors, sub-recipients, and their contractors must comply 
with these policies and procedures.
    l. Data Collection and Provision. You must collect, maintain, and 
provide to HUD the data necessary to document the various approaches 
used to evaluate and control housing-based health hazards, including 
evaluation and control methods, building conditions, medical and 
familial information (with confidentiality of individually-identifiable 
information ensured) in order to determine the effectiveness and 
relative cost of these methods.
    m. Section 3 Employment Opportunities. Recipients of assistance in 
the Healthy Homes Demonstration Program must comply with Section 3 of 
the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u 
(Economic Opportunities for Low- and Very Low-Income Persons in 
Connection with Assisted Projects) and the HUD regulations at 24 CFR 
part 135, including the reporting requirements of subpart E. See 
Section V, Rating Factor 3 for recommendations for implementing Section 
3 Employment Opportunities.
    n. Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. If awarded assistance under the Healthy Homes 
Demonstration NOFA, you will be required to submit a copy of your code 
of conduct and describe the methods you will use to ensure that all 
officers, employees, and agents of your organization are aware of your 
code of conduct. If you previously submitted your Code of Conduct to 
HUD and it appears in the listing on HUD's Web site at http://www.hud.gov/offices/adm/grants/codeofconduct/conduct.cfm, you do not 
have to resubmit the information unless there has been a change in the 
legal name, address or authorizing official for your organization. See 
the General Section for information about conducting business in 
accordance with HUD's core values and ethical standards.
4. DUNS Requirement
    Refer to the General Section for information regarding the DUNS 
requirement.

IV. Application and Submission Information

A. Web Address To Access an Application Package

    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 helpline toll-free at (800) 518-GRANTS or e-
mail [email protected]. Helpline customer representatives will assist 
you in accessing the information.

B. Content and Form of Application Submission

    The following provides instructions on the items to be submitted as 
part of the application. See the General Section for instructions for 
submitting third party documents and electronic files.
    1. An abstract describing the goals and objectives of your proposed 
program (2-page limit, single-spaced, 12-point standard font, \3/4\-
inch margins) must be included in the proposal. The abstract should 
include the title of your proposed project, the name, mailing address 
and telephone number of the principal contact person for the primary 
entity and the same information for sub-contractors, partners, etc.
    2. A narrative statement addressing the rating factors for award. 
Number the pages of your narrative statement and include a header and a 
footer that provides the name of the applicant and the name of the 
program to which you are applying. Narrative statements provided as 
part of the application should be individually labeled to identify the 
rating factor to which the narrative is responding (e.g. Factor 1, 
Capacity, etc.). You are strongly advised to use the format of the NOFA 
as an outline for discussion of your rating factors. The overall 
response to the rating factors must not exceed a total of 25 pages 
including all rating factors (single-sided, single-spaced, 12 point 
standard font, \3/4\-inch margins). Any pages in excess of this limit 
will not be read.
    3. The score for each rating factor will be based on the rating 
factor's numbered portion of your narrative statement, supplemented by 
materials referenced and discussed in that portion of your narrative 
statement. Information relative to a given rating factor must be 
contained in the narrative for that rating factor. If it is found in 
another rating factor, it will not be considered. In addition, 
supplemental material that is not referenced and discussed within the 
narrative statements will not be rated.

[[Page 11863]]

    4. The position descriptions and resumes, if available, of your 
project director and project manager and up to three additional key 
personnel (in accordance with Rating Factor 1), not to exceed 2 pages 
each (single-spaced, 12-point font with \3/4\-inch margins). This 
information will not be counted toward the page limit.
    5. Any attachments, materials, references, or other relevant 
information that directly support the narrative must not exceed 20 
pages for your entire application. Any pages in excess of this limit 
will not be read. See the General Section for instructions for 
submitting third party documents or material not readily available in 
electronic format.
    6. A detailed budget with supporting justification for all budget 
categories of your funding request, in accordance with Rating Factor 3, 
(2)(b). This information will not be counted towards the page limits. 
In completing the budget forms and justification, you should address 
the following elements:
    a. Direct Labor costs should include all full- and part-time staff 
required for the planning and implementation phases of the project. 
These costs should be based on full time equivalent (FTE) or hours per 
year (hours/year) (i.e., one FTE equals 2,080 hours/year).
    b. You should budget for three trips for two people to HUD 
Headquarters in Washington, DC, assuming a 2-3 day stay.
    c. A separate budget proposal should be provided for any sub-
recipients receiving more than 10 percent of the total federal budget 
request.
    d. You should be prepared to provide supporting documentation for 
salaries and prices of materials and equipment upon request.
    e. Organizations that have a federally negotiated indirect cost 
rate should use that rate and the appropriate base. Other organizations 
should submit their proposal with their suggested indirect rate. If 
they are funded and HUD is the cognizant agency, it will set a rate; 
otherwise HUD will request the cognizant federal agency to set the 
rate.
    f. You should submit a copy of the negotiated rate agreements for 
fringe benefits and indirect costs, if applicable, as an attachment to 
the budget sheets.
    7. Applicants are encouraged to use the following checklist to 
ensure that all required materials have been prepared and submitted. 
You are not required to submit this checklist with your application.

Checklist for Healthy Homes Demonstration Program Applicants

     Applicant Abstract (limited to 2 pages).
     Rating Factor Responses (Total narrative response limited 
to 25 pages).
    1. Capacity of the Applicant and Relevant Organizational 
Experience--Form HUD 96012.
    2. Need/Extent of the Problem-Form HUD-96016.
    3. Soundness of Approach.
    4. Leveraging Resources--Form HUD-96015.
    5. Achieving Results and Program Evaluation--Form HUD-96010 Logic 
Model.
     Required materials in response to rating factors (does not 
count towards 25-page limit).
    Form SF 424 Application for Federal Assistance.
    Form HUD-424-CB Grant Application Detailed Budget Work Sheet.
    Form SF-424 Supplement Survey on Ensuring Equal Opportunity for 
Applicants (to be completed by private nonprofit organizations only).
    Form SF-LLL Disclosure of Lobbying Activities.
    Form HUD-2880 Applicant/Recipient Disclosure/Update Report.
    Form HUD-2990 Certification of Consistency with the RC/EZ/EC-II 
Strategic Plan (if applicable).
    Form HUD-96011 Facsimile Transmittal to be used as the cover page 
for faxing third party information for electronic applications only. 
See the General Section.
    Resumes of Key Personnel (limited to 2 pages per resume).
    Organizational Chart.
    Letters of Commitment (if applicable).
    Form HUD-2994-A You are Our Client Grant Applicant Survey 
(Optional).
     Optional material in support of the Rating Factors (20 
page limit).

C. Submission Dates and Times

    Electronic applications must be submitted and received and 
validated by Grants.gov on or before 11:59:59 p.m. eastern time on June 
7, 2006. All narrative files and any scanned documents must be 
submitted as a zip file, single attachment to the electronic 
application. Refer to the General Section for additional submission 
requirements. Materials associated to your electronic application 
submitted by facsimile transmission must also be received by 11:59:59 
p.m. eastern time on the application submission date. Applicants 
submitting a waiver from electronic submission must submit their 
request at least 15 days before the application due date. If a waiver 
request is approved, the applicant will receive instructions for 
submitting the paper application. All paper applications must be 
received at the appropriate HUD office(s) by the deadline date.

D. Intergovernmental Review

    Not required for this submission.

E. Funding Restrictions

    1. Administrative Costs. There is a 10% maximum allowance for 
administrative costs. Additional information about allowable 
administrative costs is provided in Appendix D of this NOFA at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    2. Purchase of Real Property is not permitted.
    3. Purchase or lease of equipment having a per unit cost in excess 
of $5,000 is not permitted, unless prior written approval is obtained 
from HUD.
    4. Medical costs are not permitted.
    5. For-profit organizations cannot receive a fee or profit.
    6. Applicants must comply with the Coastal Barrier Resources Act 
(16 U.S.C. 3501).
    7. Awardees may not use grant funds for hazard control of a 
building or manufactured home that is located in an area identified by 
the Federal Emergency Management Agency (FEMA) under the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128) as having special flood 
hazards unless:
    a. The community in which the area is situated is participating in 
the National Flood Insurance Program in accordance with the applicable 
regulations (44 CFR parts 59-79), or less than a year has passed since 
FEMA notification regarding these hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance on the property is obtained in 
accordance with section 102(a) of the Flood Disaster Protection Act (42 
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance 
is obtained and maintained for the appropriate amount and term.

F. Other Submission Requirements

    HUD requires applicants to submit applications electronically 
through www.grants.gov unless you request and are granted a waiver to 
the electronic submission requirements. See the General Section.

V. Application Review Information

A. Criteria

1. Rating and Ranking
    Applications will be reviewed by an Application Review Panel (ARP) 
which will assign each application a numerical

[[Page 11864]]

score based on the rating factors presented below. The ARP chairperson 
initially selects and provides at least one application to panel 
members to score during a calibration round to ensure that all panel 
members are consistent in their interpretation of the rating factors. 
When the calibration round is completed, each application is reviewed 
and scored by at least two panel members who will assign a score based 
on the rating factors. Each factor is weighted as indicated by the 
number of points that are attainable for it. An average score is then 
computed for each application. The ARP chair may call upon an advisor 
to the ARP to review and comment on a proposal; however, the advisor 
does not score the application. Nonetheless, advisor comments will be 
documented and retained as a part of the record. The ARP holds a final 
meeting to identify the top-ranking applications to be recommended for 
funding. Awards will be made separately in rank order within the limits 
of funding availability. The maximum score that can be assigned to an 
application is 102 points.
    Applicants are eligible to receive up to two bonus points for 
projects located within federally designated Renewable Communities 
(RCs), Empowerment Zones (EZs), or Enterprise Communities (ECs) 
designated by USDA in round II (EC-IIs) (collectively referred to as 
RC/EZ/EC-IIs), and which will serve the residents of these communities 
(see the General Section). In order to be eligible for the bonus 
points, applicants must submit a completed Form HUD-2990.
2. Rating Factors
    The factors for rating and ranking applicants, and maximum points 
for each factor, are provided below. Applicants should be certain that 
these factors are adequately addressed in the narrative relevant to the 
rating factors and the accompanying materials. Please refer to the 
guide to Scoring of Rating Factors at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm/offices/adm/grants/fundsavail.cfm.
    a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience (15 Points). This factor addresses your 
organizational capacity necessary to successfully implement your 
proposed activities in a timely manner. The rating of you or your staff 
includes any grassroots community-based nonprofit organizations, 
including faith-based organizations, sub-contractors, consultants, sub-
recipients, and members of consortia that are firmly committed to your 
project. HUD strongly encourages the formation and development of 
consortia in implementing your project goals. Applicants that either 
are or propose to partner, fund, or sub-contract with grassroots 
community-based nonprofit organizations, including faith-based 
organizations, in conducting their work programs will receive higher 
rating points as specified in the General Section. In rating this 
factor, HUD will consider the four items listed below.
    (1) Capacity and Qualifications of Principal Investigator and Key 
Personnel. (6 points). Describe your recent, relevant, and successful 
demonstrated experience in undertaking eligible program activities. 
Describe the knowledge and experience of the proposed overall project 
director and day-to-day project manager in planning and managing large 
and complex interdisciplinary programs, especially those involving 
housing, public health, or environmental programs. Include information 
on your project staff, their experience with housing and health 
programs, percentage commitment to the project, and position titles. 
Project directors should make a time commitment of at least 20% and 
project manager's time commitment should be at least 50%. Resumes of up 
to two pages each and position descriptions for up to three key 
personnel in addition to the project director and project manager, and 
a clearly delineated organizational chart for the Healthy Homes project 
you propose, must be included in your application submission. Position 
descriptions and copies of job announcements (including salary range, 
percent time commitment, specifying percentage covered by the grant) 
should be included for any key positions that are currently vacant or 
contingent upon an award. Document that you have sufficient personnel, 
or will be able to quickly retain qualified personnel to begin your 
project immediately, and to perform activities in a timely and 
effective fashion. Successful applicants must hire all key staff 
positions identified in the proposal as vacant or required in the award 
agreement within 120 days of award. Describe how principal components 
of your organization will participate in, or support, your project.
    (2) Qualifications of Applicant and Partner Organizations (4 
points). Include names, descriptions of the experience and 
qualifications of subcontractors. Document how you propose to 
coordinate with and monitor sub-contractors, including frequency of 
meetings, on site inspections and submission of formal monthly or 
quarterly reports. Discuss your communication and coordination with 
partners, including partner responsibilities, meeting frequency, etc. 
If partners are community-based grassroots, non-profit organizations, 
including faith-based organizations, include documentation 
demonstrating their community-based grassroots status, such as 
organizational profile, 501(c)(3) status, Social Services budget. 
(Lengthy documents are not required. Face pages or extracted relevant 
text is adequate.)
    (3) Past Performance of the Organization (5 points). This section 
refers to applicants who have any prior experience in another Healthy 
Homes or Lead Hazard Control grant, another grant related to 
environmental health and safety issues, or other experience in a 
similar program. Provide details about the nature of the project, the 
funding agency, and your performance, relative to performance measures 
and the achievement of desired housing- and health-related outcomes. If 
your organization is an existing Healthy Homes grantee, provide a 
description of the progress and outcomes achieved in that grant. 
Current grantees that are on or ahead of target may earn one point 
based on their demonstrated ability to date. If you received previous 
Healthy Homes Demonstration funding, you will be evaluated in terms of 
cumulative progress and achievements under the previous grant.
    You must complete and submit the Factor 1, Table 1, posted at 
www.hud.gov/offices/adm/grants/fundsavail.cfm, to support narrative 
information. This table in supporting materials for your application. 
It will not be counted towards your page limit.
    b. Rating Factor 2: Need/Extent of the Problem (15 Points). This 
factor addresses the extent for your proposed activities to document 
healthy homes and housing-related hazards in your target area(s) and 
target group(s).
    (1) Target Area for Proposed Activities (5 points). Specifically 
identify a target area for your proposed activities. Document a 
critical level of need for your proposed activities in this target area 
by providing data documenting targeted groups that are traditionally 
underserved or have special needs. For a maximum score, data provided 
should specifically represent the target area, rather than general 
statistics or information pertinent to a larger geographic area. If 
specific statistics are not available, discuss why this is the case.
    HUD will award two bonus points to each application that includes a 
valid Form HUD 2990 certifying that the activities/projects in the 
application are consistent with the strategic plan for an empowerment 
zone (EZ) designated by

[[Page 11865]]

HUD or the United States Department of Agriculture (USDA), the tax 
incentive utilization plan for an urban or rural renewal community 
designated by HUD (RC), or the strategic plan for an enterprise 
community designated in round II by USDA (EZ-II), and that the proposed 
activities/projects will be located within the RC/EZ/EC-II identified 
above and are intended to serve the residents.
    (2) Link to Housing based Health Hazard (10 points). Your 
documentation should summarize available data linking housing-based 
health hazards to disease or injuries to children in your target area. 
Examples of data that might be used to demonstrate need include:
    (a) Economic and demographic data (3 points) including poverty and 
unemployment rates and the number and percentage of low- and very low-
income families with incomes less than 50 percent and 80 percent of the 
median income, respectively, as determined by HUD, for the area. 
Statistics that describe low- and very-low income families are 
available at: http://factfinder.census.gov/home/saff/main.HTML?lang=en. 
Applicants should also consult local data sources, such as city 
government web sites, for target area data.
    (b) Rates of childhood illnesses (4 points) (e.g., asthma, elevated 
blood lead levels) or injuries (e.g., falls, burns) among children 
residing in your target areas that could be caused or exacerbated by 
exposure to conditions in the home environment; and
    (c) The age and condition of housing (3 points). In responding, 
provide data available in your jurisdiction's currently approved 
Consolidated Plan and the Analysis of Impediments to Fair Housing 
Choice (AI) or Indian Housing Plan or derived from current census data 
or from other sources of comparable quality.
    c. Rating Factor 3: Soundness of Approach (50 Points). (1) Approach 
for Implementing the Project (36 points). HUD is interested in 
comparability among the Healthy Homes Programs, in order to further 
standardize outcomes and performance measures. As a result, we have 
provided at http://www.hud.gov/offices/adm/grants/fundsavail.cfm/offices/adm/grants/fundsavail.cfm, a standardized approach for 
implementing home remediations. Applicants are encouraged to use this 
model for carrying out your project activities and designing and 
implementing your work plan.
    (a) Project Approach (3 points). Describe your approach to 
implement your proposed project. In particular describe the methods, 
schedule and milestones that will be used to identify and control 
housing-based health hazards and to achieve the desired improvements in 
the health of the families you serve. Include summary information about 
the estimated numbers of clients to be contacted, clients enrolled, 
units to be assessed, units to receive remediations, individuals to be 
trained, and individuals or groups that will be reached through 
education or outreach activities. Health outcome measures, such as 
pediatric asthma hospitalizations, emergency room visits for asthma, 
falls, burns, etc., should be documented to the extent possible. The 
use of tables to describe schedule, milestones and summary data is 
encouraged.
    (b) Start up (4 Points). (i) Describe the process you intend to 
follow for obtaining IRB approval and HIPAA Authorization, if 
necessary. In particular, identify the organization that will review 
your project and provide a timeframe.
    (ii) Provide detailed information regarding how program staff and, 
where applicable, partnering organizations will be trained in the 
disciplines needed to successfully implement your project (e.g., 
resident education, assessments and remediations). Include an outline 
of training curricula, a description of qualifications of trainers, and 
describe how individuals or groups to be trained will be selected.
    (iii) If you are proposing to conduct a study or intervention that 
includes a significant level of community interaction (e.g., resident 
recruitment, home-based remediations, data collection, environmental 
sampling on private property) describe your plan for meaningful 
involvement of the affected community in your proposed study. You 
should define the community of interest with respect to your proposed 
project and discuss why your proposed approach to community involvement 
will make a meaningful contribution to your project and to the 
community.
    (iv) Describe any proposed involvement of grassroots community-
based, nonprofit organizations, including faith-based organizations, in 
the proposed activities including the development of consortia. These 
activities may include outreach, community education, marketing, 
inspection, and housing evaluations and remediations.
    (c) Outreach and Recruitment (7 Points). (i) Describe how you will 
identify, select, prioritize, and enroll units of housing in which you 
will undertake housing-based health hazard remediations, targeting low-
income families with young children under the age of six (72 months) to 
the extent feasible.
    (ii) Describe measures you will perform to sustain recruitment, 
including incentives, and the staff responsible for both monitoring 
recruitment status and implementing the measures identified to sustain 
recruitment.
    (iii) Discuss possible recruitment problems, impediments that you 
anticipate, probability of dropouts and plans to over-recruit to 
compensate for dropouts.
    (iv) Discuss strategies to address the effect of the Health 
Insurance Portability and Accountability Act (HIPAA) on your 
recruitment, if applicable.
    (v) Describe how you will provide appropriate program information 
and gain informed consent from the subjects, their parents and 
guardians, as applicable. Describe how you will ensure that 
participants understand and consent to the elements of the program such 
as the purposes, benefits and risks of the research activities.
    (vi) Describe your proposed methods to reach high-risk groups and 
communities, vulnerable populations and persons traditionally 
underserved.
    (vii) Describe how you will affirmatively further fair housing, 
which would include, but not be limited to: Affirmative marketing of 
the program to those least likely to apply based on race, color, sex, 
familial status, national origin, religion, or disability, (especially 
when persons in these demographic groups are generally not served by 
the grassroots community-based, nonprofit organizations, including 
faith-based organizations or other partner organizations); providing 
materials in alternative formats for persons with disabilities; 
providing materials in languages other than English for individuals 
with limited English proficiency and their families; assuring long-term 
residency by families currently living in the community; and assuring 
that priority for treated units go to those who need the features 
(treatment) of the unit.
    (d) Unit Assessments, Occupant Health Surveys and Medical Referrals 
(3 Points). (i) Describe the assessment tools your project will employ 
to establish baseline data for unit condition, knowledge of program 
participant and/or the health of the occupant(s). These tools include 
questionnaires, visual assessment protocols and environmental sampling 
and analysis.
    (ii) Describe your process for evaluating units of housing in which 
you will undertake housing-based

[[Page 11866]]

health hazard remediations. Provide the estimated total number of 
owner-occupied and/or rental units in which you will perform 
assessments and conduct remediations.
    (iii) Describe the process to be followed for referring children 
for medical case management when needed. Describe the organizations 
that will be involved in this process and their prior experience 
serving the target population(s).
    (e) Remediations (7 Points). (i) Describe your process for the 
development of work specifications for the selected physical 
remediations.
    (ii) Discuss your process to select and obtain contractors for 
conducting remediations in selected units and provide details about the 
competitive bidding process.
    (iii) Discuss efforts to incorporate cost-effective methods to 
address multiple environmental health and safety hazards, and describe 
the specific remediations you will employ to control housing-based 
health hazards before children are affected; and/or to control these 
hazards in units where children have already been treated for illnesses 
or injuries associated with housing-based health hazards (e.g., burns, 
lead poisoning, asthma). In your budget submission, provide an estimate 
of the cost of each intervention (material costs and labor costs 
associated with installation) and an estimate of costs projected per 
unit.
    (iv) Discuss how you will assure that the contractor will comply 
with all applicable Federal regulations.
    (v) Describe the financing strategy, including eligibility 
requirements, terms, conditions, and amounts available, to be employed 
for conducting housing remediations. You must discuss the way funds 
will be administered (e.g., use of grants, deferred loans, forgivable 
loans, other resources, private sector financing, etc.) as well as the 
agency that will administer the process.
    (vi) Describe your plan for the relocation of occupants of units 
selected for intervention, if temporary relocation is necessary (see 
Section VI, below). Address the use of safe houses and other housing 
arrangements, storage of household goods, stipends, incentives, etc., 
and the source of funding for relocation.
    (vii) Describe your plan for ensuring right of return and/or first 
referral for occupants of units selected for intervention who have had 
to move for intervention to occur.
    (f) Community Education, Outreach and Capacity Building/Training (3 
Points). (i) Describe your proposed methods for community and/or 
targeted education and training. These should include community 
awareness, education, training, and outreach programs that support your 
work plan and are culturally sensitive and targeted appropriately. 
Provide information about specific educational/outreach activities with 
quantitative data (number of individuals to be reached, etc.) and a 
description of the intended audience.
    (ii) Discuss if Healthy Homes training programs will be expanded to 
include public housing agencies or Tribally Designated Housing Entities 
and other potential collaborators, such as grassroots community-based, 
nonprofit organizations, including faith-based organizations, and if 
so, your plan for doing this.
    (g) HUD's Departmental Policy Priorities (6 Points). Indicate if, 
and describe how, you will address any of HUD's departmental policy 
priorities (see General Section). You will receive points for each of 
the applicable FY 2006 policy priorities that are adequately addressed 
in your application to a maximum of six points. Policy priorities that 
are applicable to the Healthy Homes Demonstration NOFA are: (1) 
Improving our Nation's Communities (focus on distressed communities); 
(2) Providing Full and Equal Access to Grassroots Community-based, 
Nonprofit Organizations, including Faith-based Organizations in HUD 
Program Implementation; (3) Participation of Minority-Serving 
Institutions in HUD Programs; (4) Removal of Regulatory Barriers to 
Affordable Housing; and (5) Promoting Energy Efficiency and Energy 
Star. HUD expects the applicant to implement Energy Star building 
techniques and utilize Energy Star appliances whenever activities of 
the grant afford the opportunity. For information on Energy Star 
Programs and Appliances, see http://oaspub.epa.gov/webi/meta_first_new2.try_these_first; and energystar.gov.
    Each policy priority is worth one point, except for policy priority 
(4), Removal of Regulatory Barriers to Affordable Housing, which is 
worth up to 2 points, provided the applicant responds to this policy 
priority as described in this NOFA and submits the required 
documentation as described in Form HUD 27300. Applicants may also 
provide a URL website address where the documentation can be readily 
found.
    (h) Economic Opportunity (3 points). To the greatest extent 
feasible, your project should promote job training, employment, and 
other economic opportunities for low-income and minority residents and 
businesses which are owned by, and/or employ, low-income and minority 
residents as defined in 24 CFR 135.5.
    (i) Describe how you or your partners will comply with Section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and 
HUD's implementing rules at 24 CFR part 135 by:
    (A) Providing training and employment opportunities for low- and 
very low-income persons living within the awardee's jurisdiction, and 
by
    (B) Purchasing goods and supplies, or contracting for services from 
businesses owned by low- and very low-income persons living within the 
targeted jurisdiction; information about Section 3 requirements is 
available at, http://www.hud.gov/offices/adm/grants/fundsavil.cfm;
    (ii) Describe how your proposed project will provide opportunities 
for self-sufficiency, particularly for persons enrolled in welfare-to-
work programs, or providing educational and job training opportunities; 
and
    (iii) Describe the extent to which your proposed activities will 
occur within a federally designated Renewable Community (RC), 
Empowerment Zone (EZ), or Enterprise Community designated by USDA in 
round II (EC-II) as defined in the General Section.
    (2) Approach for Managing the Project (9 points). Considering your 
project goals and objectives, describe how you will manage the project. 
Provide information on the general management approach including a 
management plan that:
    (a) Incorporates appropriate project objectives, major tasks/
activities, responsible entities, performance goals, and the process 
that you will utilize to assign, track and monitor the performance of 
major tasks and activities. (All specific activities necessary to 
complete the proposed project must be included in the task.)
    (b) Provides a schedule of milestones and deliverables for the 
completion of major tasks and activities, and the delivery of interim 
and final products.
    (c) Discusses coordination with sub-recipients, partners and staff.
    (d) Describes all quality assurance activities and associated 
corrective actions.
    (3) Budget Justification (5 points). HUD will not review any grant 
application with an award request greater than $1,000,000. Your 
proposed budget will be evaluated for the extent to which it is 
reasonable, clearly justified, and consistent with the project 
management plan and intended use of program funds. HUD is not required 
to

[[Page 11867]]

approve or fund all proposed activities. Your detailed budget should be 
submitted using Form ``HUD-CBW.'' An electronic copy is available at: 
www.grants.gov. You must thoroughly document and justify all budget 
categories and costs and all major tasks for yourself, sub-recipients, 
partners, major subcontractors, joint venture participants, or others 
contributing resources to the project. Include a 2-page (maximum) 
narrative that describes clearly and in detail your budgeted costs for 
each required program element (major task) included in your overall 
plan. (You may include this narrative along with the budget forms; it 
will not count toward the 25-page limit.) Include a separate, detailed 
budget for any sub-grantee who would receive 10% or more of the grant 
funding.
    d. Rating Factor 4: Leveraging Resources (5 Points). This factor 
addresses your ability to secure other community resources (e.g., 
financing, supplies, or services) that can be combined with HUD's 
resources to achieve project purposes. These community resources may be 
contributions from organizations such as the applicant, partners, or 
other organizations not directly involved in the project. Resources may 
also be provided by state and local governmental entities.
    (1) HUD will consider the extent to which you have developed 
partnerships or consortia to secure additional resources to increase 
the effectiveness of your proposed project. Describe how other 
organizations will participate in or support your project. Resources 
may include funding or in-kind contributions (e.g., labor, fringe 
benefits, services, supplies, or equipment) budgeted for your proposed 
project. Include in the narrative the details of the commitment, the 
amount being leveraged, or if the commitment is in-kind, the specific 
names, percent of time, supplies and other resources, and value of each 
commitment.
    (2) The signature of the authorized official on the Form SF-424 
commits matching or other contributed resources of the applicant 
organization. The applicant must obtain a letter of commitment from 
each organization other than itself that is providing a match, whether 
cash or in-kind. The letter must describe the contributed resource(s) 
that will be used in your project and the dollar value of each 
contribution. Staff and in-kind contributions should be given a market-
based monetary value. Each letter of commitment, memorandum of 
understanding, or agreement to participate shall include the 
organization's name and the proposed level of commitment and 
responsibilities as they relate to the proposed project. The commitment 
must be signed by an official legally able to make commitments on 
behalf of the organization and dated prior to the deadline date for 
this NOFA application.
    (3) Include information to address the following elements. (i) The 
extent to which you have coordinated your activities with other known 
organizations that are not directly participating in your proposed work 
activities, but with which you share common goals and objectives.
    (A) Describe your plan for integrating and coordinating housing-
based health hazard interventions with other housing-related activities 
(e.g., rehabilitation, weatherization, correction of code violations, 
and other similar work).
    (B) Describe your plans to generate and use public subsidies or 
other resources, such as loan funds, to finance future interventions to 
prevent and control housing-based health hazards, particularly in 
families with children under the age of six years (72 months) living in 
low- and very low-income housing.
    (ii) The extent to which your project exhibits the potential to be 
financially self-sustaining by decreasing dependence on federal funding 
and relying more on state, local and private funding to continue 
healthy homes activities after the funding period is completed.
    Applicants are to complete the Factor 4 table, Leveraging Resources 
that is posted at www.hud.gov/offices/adm/grants/fundsavail.cfm/offices/adm/grants/fundsavail.cfm.
    e. Rating Factor 5: Achieving Results and Program Evaluation (15 
points). This rating factor reflects HUD's goal to embrace high 
standards of ethics, management and accountability. HUD is committed to 
ensuring that applicants keep promises made in their applications and 
assess their performance to ensure that performance goals are met. In 
your response to this rating factor, you are to discuss the performance 
goals for your project, and identify specific outcome measures. 
Identify and discuss the specific methods you will use to measure 
progress towards your goals, track and report results of assessments 
and remediations, and evaluate the effectiveness of remediations; 
identify important project milestones (e.g., the end of specific phases 
in a multi-phased project) and deliverables specific to your project 
timeline; and identify milestones that are critical to achieving 
project objectives (e.g., developing questionnaires or protocols, 
hiring staff, recruitment of participants, and IRB approval and/or 
HIPAA Authorization, if applicable); identify benchmarks such as number 
of units that received intervention, percent of remediations that 
occurred in high-risk communities, etc., that you will use to track the 
progress of your project.
    Identify how your project will be held accountable for meeting 
project goals, objectives, and the actions undertaken in implementing 
the program. Provide assurances that work plans and performance 
measures developed for your project will be achieved in a timely and 
cost-effective manner.
    Your project should focus particular attention on identifying 
specific resident, or program participant, health outcomes and describe 
how these outcomes will be measured. Resident health outcomes do not 
necessarily require medical testing, such as spirometry or documenting 
blood lead levels, and may be assessed using questionnaires or other 
tools. Careful attention should be given to the relationship between 
the program's remediations (e.g., physical changes in the environment, 
changes to cleaning protocols, in-home training or provision of 
education materials) and the effect on resident health.
    In evaluating Rating Factor 5, HUD will consider how you have 
described the benefits and outcome measures of your program. HUD will 
also consider the proposed objectives and performance objectives 
relative to cost and achieving the purpose of the program, as well as 
the evaluation plan, to ensure the project is on schedule and within 
budget.
    You must complete and return the Form HUD-96010. HUD is moving to a 
standardized ``Master'' Logic Model with drop down menus from which you 
can select needs, activities, and outcomes appropriate to your program. 
See the General Section for detailed information on use of the 
``Master'' Logic Model. HUD is requiring grantees to use program-
specific questions to self-evaluate the management and performance of 
their program. For FY2006, HUD is considering a new concept for the 
Logic Model. The new concept is a Return on Investment statement. HUD 
will be publishing a separate notice on the ROI concept. Training on 
HUD's logic model will be provided via satellite broadcast.

[[Page 11868]]

B. Reviews and Selection Process

    The review and selection process is provided in the General 
Section. The General Section also provides the procedures for 
correcting deficient applications.

VI. Award Administration Information

A. Award Notices

1. Applicants Selected for Award
    Successful applicants will receive a letter from the Office of 
Healthy Homes and Lead Hazard Control Grant Officer providing details 
regarding the effective start date of the cooperative agreement and any 
additional data and information to be submitted to execute a 
cooperative agreement. This letter is not an authorization to begin 
work or incur costs under the cooperative agreement or grant.
    HUD may require that all the awardees participate in negotiations 
to determine the specific terms of the cooperative agreement or grant 
and budget. Should HUD not be able to successfully conclude 
negotiations with a selected applicant, an award will not be made. If 
the applicant accepts the terms and conditions of the cooperative 
agreement, a signed cooperative agreement must be returned by the date 
specified. Instructions on how to have the cooperative agreement 
account entered into HUD's Line of Credit Control System (LOCCS) 
payment system will be provided. Other forms and program requirements 
will be provided. In accordance with OMB Circular A-133 (Audits of 
States, Local Governments and Nonprofit Organizations), awardees will 
have to submit their completed audit-reporting package along with the 
Data Collection Form (SF-SAC) to the Single Audit Clearinghouse. The 
address can be obtained from their Web site. The SF-SAC can be 
downloaded at: http://harvester.census.gov/sac/.
    2. Debriefing. The General Section provides the procedures for 
applicants to request a debriefing.

B. Administrative and National Policy Requirements

1. Environmental Requirements
    Under the Consolidated Appropriations Act, 2006, the provisions of 
section 305(c) of the Multifamily Housing Property Disposition Reform 
Act of 1994, implemented by HUD regulations at 24 CFR part 58, 
``Environmental Review Procedures for Entities Assuming HUD 
Environmental Responsibilities,'' are applicable to properties assisted 
with Healthy Homes Demonstration Grant funds. In accordance with part 
58, applicants under this NOFA that are States, units of general local 
governments or Indian Tribes must act as the responsible entity and 
assume the environmental review responsibilities for activities funded 
under this NOFA. Other applicants must arrange for the unit of general 
local government or Indian Tribe to act as the responsible entity. 
Under 24 CFR 58.11, if a non-recipient responsible entity objects to 
performing the environmental review, or if a recipient that is not a 
responsible entity objects to the local or tribal government performing 
the environmental review, HUD may designate another responsible entity 
to perform the review or may perform the environmental review itself 
under the provisions of 24 CFR part 50. Healthy Homes Demonstration 
grant applicants and other participants in activities under this NOFA 
may not undertake, or commit or expend federal or non-federal funds 
(including HUD-leveraged or match funds) for housing interventions, 
related rehabilitation or other physical activities until the 
responsible entity completes an environmental review and the applicant 
submits and obtains HUD approval of a request for release of funds and 
the responsible entity's environmental certification in accordance with 
part 58 (or until HUD has completed an environmental review under part 
50). The results of environmental reviews on individual projects may 
require that proposed activities be modified or proposed sites 
rejected. For assistance, contact Karen Choi, the Office of Healthy 
Homes and Lead Hazard Control Environmental Officer at (213) 534-2458 
(this is not a toll-free number) or the HUD Environmental Review 
Officer in the HUD Field Office serving your area. If you are a 
hearing- or speech-impaired person, you may reach the telephone number 
via TTY by calling the toll-free Federal Information Relay Service at 
1-800-877-8339. Recipients of a cooperative agreement under this NOFA 
will be given guidance in these responsibilities.
2. Executive Order 13202
    ``Preservation of Open Competition and Government Neutrality 
Towards Government Contractors' Labor Relations on Federal and 
Federally-Funded Construction Projects.'' See General Section for 
information concerning this requirement.
3. Procurement of Recovered Materials
    See the General Section for information concerning this 
requirement.
4. Relocation
    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 statutes and regulations. 
Specifically, this type of move is covered by the acquisition policies 
and procedures and the relocation requirements of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (URA), as amended, and the implementing government wide regulation 
at 49 CFR part 24. The relocation requirements of the URA and the 
government wide regulations 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. While the Healthy Homes Demonstration 
Grant Program is not HUD assistance, the grantee must relocate families 
to decent, safe and sanitary housing, and should use the URA as 
guidance for doing so. If families or individuals are temporarily 
relocated in a project which utilizes Community Development Block Grant 
funds, the guidance and requirements of 24 CFR 570.606(b)(2)(i)(D)(1)-
(3) must be met. HUD recommends you review these regulations when 
preparing your proposal. (They can be downloaded from the Government 
Printing Office Web site at http://www.gpoaccess.gov/cfr/ by entering 
``24 CFR 570.606'' in quotes without any spaces in the Quick Search 
box.) See Section III.C of the General Section for additional 
information about relocation.
5. Davis-Bacon Act
    The Davis-Bacon Act does not apply to this program. However, if 
program funds are used in conjunction with other federal programs in 
which Davis-Bacon prevailing wage rates apply, then Davis-Bacon 
provisions would apply to the extent required under the other federal 
programs.
6. Audit Requirements
    Any grant recipient that spends $500,000 or more in federal 
financial assistance in a single year must meet the audit requirements 
established in 24 CFR part 84 or 85, as applicable, in accordance with 
OMB Circular A-133.

[[Page 11869]]

C. Reporting

    Successful applicants will be required to submit quarterly and 
final program and financial reports according the requirements of the 
Office of Healthy Homes and Lead Hazard Control. Specific guidance and 
additional details will be provided to successful applicants. The 
following items are a part of OHHLHC reporting requirements.
    1. Final Work Plan and Budget are due prior to the effective start 
of the cooperative agreement.
    2. Quality Assurance Plan (QAP). Successful Healthy Homes 
Demonstration applicants that will be collecting housing, demographic 
or environmental data in a formalized manner for use in assessing 
effectiveness of the approaches being demonstrated under the 
cooperative agreement or grant will be required to submit a Quality 
Assurance Plan (QAP) to HUD prior to initiating work under the 
cooperative agreement or grant. This is a streamlined version of the 
format used by some other federal agencies, and is intended to help 
ensure the accuracy and validity of the data that you will collect 
under the cooperative agreement or grant. (See the HUD Office of 
Healthy Homes and Lead Hazard Control's Internet site, www.hud.gov/offices/lead, for the QAP template). Your proposed project activities 
should include developing this QAP. The QAP will be submitted to HUD as 
a part of your work plan.3. Progress reports are due on a quarterly 
basis. Project benchmarks and milestones will be tracked using a 
benchmark spreadsheet that uses the benchmarks and milestones 
identified in the Logic Model form (HUD-96010) approved and 
incorporated into your award agreement. For specific reporting 
requirements, see policy guidance: www.hud.gov/offices/lead.
    4. A final report is due at the end of the project period, which 
includes final project benchmarks and milestones achieved against the 
proposed benchmarks and milestones in the Logic Model (HUD-96010) 
approved and incorporated into your award agreement. Specific 
information on all reporting requirements will be provided to 
successful applicants.
    5. Racial and Ethnic Beneficiary Data. HUD does not require Healthy 
Homes Demonstration Grantees to report ethnic and racial beneficiary 
data as part of their initial application package. However, such data 
must be reported on an annual basis, at a minimum, during the 
implementation of your cooperative agreement. You must use the Office 
of Management and Budget's Standards for the Collection of Racial and 
Ethnic Data to report these data, using Form HUD-27061, Racial and 
Ethnic Data Reporting Form, found on www.grants.gov, along with 
instructions for its use.

VII. Agency Contacts

    For questions related to the application process, you may contact 
the Grants.gov helpline at 800-518-GRANTS. For programmatic questions, 
you may contact by writing: Emily Williams, Director; Healthy Homes 
Division; Department of Housing and Urban Development; Office of 
Healthy Homes and Lead Hazard Control; 451 Seventh Street, SW., Room 
P3206; Washington, DC 20410-3000; or by telephone by calling (336) 547-
4002, extension 2067 (this is not a toll-free number); or via e-mail 
at: [email protected]. For administrative questions, you may 
contact Curtissa L. Coleman, Grants Officer, at the address above or by 
telephone at: (202) 755-1785, extension 7580 (this is not a toll-free 
number) or via e-mail at: [email protected]. If you are 
hearing or speech-impaired, you may reach the above telephone numbers 
via TTY by calling the toll-free Federal Information Relay Service at 
800-877-8339.

VIII. Other Information

A. HUD Reform Act

    The provisions of the HUD Reform Act of 1989 that apply to this 
NOFA are discussed in the General Section. Refer to the General Section 
for details regarding other information on submitting a complete 
application that meets HUD requirements. For additional general, 
technical, and program information pertaining to the Office of Healthy 
Homes and Lead Hazard Control, visit: http://www.hud.gov/healthyhomes.

B. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2539-0015. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 80 hours per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application, semi-annual reports, and final 
report. The information will be used for awardee selection and 
monitoring the administration of funds. Response to this request for 
information is required in order to receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11870]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.016


[[Page 11871]]



Brownfields Economic Development Initiative (BEDI)

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title: Brownfields Economic Development 
Initiative.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-14. The OMB approval number is 2506-0153.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 
Brownfields Economic Development Initiative (BEDI), 14.246.
    F. Dates: The application deadline date is June 14, 2006. 
Applications must be received and validated by http://www.grants.gov no 
later than 11:59:59 p.m. on the application deadline date. Please see 
the General Section for information on electronic deadline and 
timeliness requirements.
    G. Optional, Additional Overview Content Information: BEDI funds 
are used to enhance the security of a loan guaranteed by HUD under 
Section 108 of the Housing and Community Development Act of 1974, as 
amended, for the same brownfields economic development project, or to 
improve the viability of a brownfields economic development project 
financed with the Section 108-guaranteed loan, in order to stimulate 
economic development by local governments and private sector parties at 
brownfields sites and to return those sites to productive, economic 
reuse. All BEDI grants must be used in conjunction with a new Section 
108-guaranteed loan commitment.
    HUD encourages brownfields economic development projects that 
propose the redevelopment of a brownfield site through new investments 
by identified private sector parties in addition to BEDI/Section 108 
financing and that will directly result in new business or job 
creation, increases in the local tax base or other near-term, 
measurable economic benefits.
    Those interested in applying for funding under this program should 
review carefully the General Section and the following additional 
information.

Full Text of Announcement

I. Funding Opportunity Description

A. Authority

    BEDI is authorized pursuant to Section 108(q), Title I, Housing and 
Community Development Act of 1974, as amended, (42 U.S.C. 5301); 24 CFR 
part 570.

B. Program Description

    BEDI is designed to help local governments redevelop brownfields, 
defined in this NOFA as abandoned, idled, or underutilized real 
property, including industrial and commercial facilities, where 
expansion or redevelopment is complicated by the presence or potential 
presence of environmental contamination. A BEDI grant award will be 
conditioned upon, and must be used in conjunction with, a new (i.e., 
not previously approved) Section 108-guaranteed loan commitment. Both 
Section 108 loan guarantee proceeds and BEDI grant funds are initially 
made available by HUD to units of general local government eligible for 
assistance under HUD's Community Development Block Grant (CDBG) program 
(specifically, the Entitlement and State programs, certain 
jurisdictions in the state of Hawaii under the Small Cities program, 
and the insular areas of Guam, American Samoa, the Northern Mariana 
Islands, and the Virgin Islands). A local government may re-loan the 
Section 108 loan proceeds and provide BEDI funds to a business or other 
public entity eligible to carry out a specific approved brownfields 
economic development project, or the public entity may carry out the 
eligible project itself. In either case, BEDI grant funds and the 
Section 108 proceeds must be used to support the same eligible BEDI 
project.
    Under this program, CDBG entitlement and non-entitlement grantees 
(and states for state-assisted non-entitlement jurisdictions) pledge 
their continuing CDBG allocations as security for the Section 108 loans 
guaranteed by HUD. BEDI grant funds are intended to reduce grantees' 
potential loss of future CDBG allocations by:
    1. Strengthening the economic feasibility of a project financed 
with Section 108 funds (and thereby increasing the probability that the 
project will generate enough cash to repay the guaranteed loan);
    2. Directly enhancing the security of the Section 108-guaranteed 
loan; or
    3. Employing a combination of these or other risk mitigation 
techniques.
    BEDI funds must be used as the stimulus for local governments and/
or private sector parties to commence redevelopment or continue phased 
redevelopment efforts of brownfields sites where contamination is 
present or potentially present and a redevelopment plan exists. HUD 
desires to see BEDI and Section 108 funds used to finance projects and 
activities that involve investment in the brownfields site by an 
identified private sector party that will provide near-term results and 
measurable economic benefits, such as job creation and increases in the 
local tax base.

C. Program Definitions

    Unless otherwise defined herein, terms defined in this NOFA shall 
have the same respective meanings as provided for in 24 CFR part 570.
    Act means Title I Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.).
    Application means a single set of documents, including a request 
for Section 108 loan guarantee assistance, submitted by an eligible 
applicant for BEDI grant funds, in accordance with the provisions of 
this NOFA to finance a brownfields economic development project. 
Section IV.B.1(c) of this NOFA provides additional information on the 
nature and forms of Section 108 loan guarantee requests that must be 
submitted to HUD along with each BEDI application.
    Brownfields means abandoned, idled, or under-used real property 
(including industrial and commercial facilities) where expansion or 
redevelopment is complicated by the presence or potential presence of 
contamination.
    Brownfields Economic Development Initiative (BEDI) funds means the 
appropriated funds made available for the competition under this NOFA 
from any available appropriation.
    Brownfields Economic Development Initiative (BEDI) project or 
brownfields economic development project means a single activity, or a 
group of activities constituting a planned, continuous, single 
undertaking, that is eligible under Section 108(q) of the Act and under 
24 CFR 570.703 and projected to create or retain businesses or jobs, 
provide area or housing benefit to low- and moderate-income persons, 
redevelop blighted areas or sites, or otherwise lead to measurable 
economic benefits from redevelopment of one or more brownfields sites 
within five years.
    CDBG funds means those funds collectively so defined at 24 CFR 
570.3, including grant funds received pursuant to Section 108(q) and 
this NOFA.
    Economic Development Initiative (EDI) grant means the provision of 
economic development grant assistance under Section 108(q) of the Act, 
as authorized by Section 232 of the Multifamily Housing Property 
Disposition Reform Act of 1994 (Pub. L. 103-233, approved April 11, 
1994).

[[Page 11872]]

    EPA means the U.S. Environmental Protection Agency.
    Firm Commitment means either a written agreement or letter of 
understanding by which an applicant or a third party:
    (1) Agrees to perform an activity or provide resources as specified 
in the application, and demonstrates their relationship to the proposed 
BEDI/Section 108 project;
    (2) Specifies the dollar value of the commitment and demonstrates 
that it has the financial and organizational capacity to deliver the 
resources necessary to successfully complete the activity; and
    (3) Irrevocably commits the resources to the activity either 
through cash or in-kind services or contributions; if any portion is to 
be financed through a grant or loan from another public or private 
organization, that institution's grant or loan commitment must be 
firmly committed as well.
    Any such agreement or letter of understanding shall be understood 
as being contingent upon receipt of the BEDI grant. Funds expended 
prior to the submission of the BEDI application will not be considered 
as firmly committed funds for purposes of this NOFA.
    Additional information related to firm commitments of other 
resources is provided in Section V.A.1 of this NOFA, Rating Factor 4 
(Leveraging of Other Financial Resources). See Section IV.F.3.d. of the 
General Section for instructions on how third party documents are to be 
submitted electronically.
    Showcase Community means an applicant chosen by the federal 
government's Brownfields National Partnership for inclusion in the 
federal government's Brownfields Showcase Communities program. A list 
of the federally designated Brownfield Showcase Communities is provided 
on the HUD website, at http://www.hud.gov.
    Strategic Plan means a strategy or course of action developed and 
agreed to by the nominating local government(s) and state(s) and 
submitted in partial fulfillment of the application requirements for an 
Empowerment Zone, Enterprise Community, or a Renewal Community, 
designated pursuant to 24 CFR parts 597, 598 or 599.

D. Program Background

    HUD has multiple programs that are intended to stimulate economic 
and community development and promote economic revitalization of 
distressed areas, and which can be effectively employed to address and 
remedy brownfields conditions. Primary among HUD's resources are the 
Community Development Block Grant (CDBG) program and the Section 108 
loan guarantee program.
    1. CDBG. The CDBG program provides grant funds by formula to local 
governments (either directly or through states) to carry out community 
and economic development activities ($3.7 billion appropriated in FY 
2006). The Section 108 loan guarantee program provides CDBG-eligible 
communities with a source of financing for economic development, public 
facilities, and other eligible large-scale physical development 
projects. HUD is authorized pursuant to Section 108 to guarantee notes 
issued by CDBG entitlement communities and non-entitlement units of 
general local government eligible to receive funds under the CDBG 
States' program, as well as certain non-entitlement units of general 
local government in the state of Hawaii funded under 24 CFR part 570, 
subpart F. The Section 108 program is subject to the regulations 
applicable to the CDBG program at 24 CFR part 570 as described in 24 
CFR part 570, subpart M.
    2. Section 108 Loan Guarantees. The loan guarantee authority for 
the Section 108 program is estimated at $225 million including $135 
million in loan guarantee authority for FY 2006 and loan guarantee 
authority that is still available under the FY 2005 appropriation.
    Under this program, communities (states and insular areas, as 
applicable) are required to pledge their continuing CDBG allocations as 
security for loans guaranteed by HUD. The Section 108 program, however, 
does not require CDBG funds to be escrowed for loan repayment (unless 
such an arrangement is specifically negotiated as loan security and 
included in the applicable ``Contract for Loan Guarantee Assistance''). 
This means that a community can ordinarily continue to spend its 
existing allocation for other CDBG purposes, unless needed for loan 
repayment.
    3. Additional Security for Section 108 Loan Guarantees. Applicants 
should be aware of the need to provide additional security for the 
Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3). Although a 
public entity (and the corresponding state for a state-assisted non-
entitlement entity) is required by the Act to pledge its current and 
future CDBG allocations as security for the Section 108 loan guarantee, 
it will usually be required to furnish additional collateral. In most 
cases, the additional collateral consists (in whole or in part) of the 
asset financed with the Section 108 loan funds (e.g., a loan made to a 
business as part of an economic development project and the related 
mortgage from the business). Applications proposing uses for BEDI 
funding that directly enhance the value of the assets securing the 
Section 108 loan will help ensure that the project-based asset(s) will 
satisfy the additional collateral requirements.
    4. Integration of Other Government Economic Development and 
Brownfields Programs. HUD encourages local governments which are 
assisted by (a) other federal or state economic development programs, 
(b) other federal brownfields programs (e.g., the federal Brownfields 
Showcase Community program, EPA's Assessment, Revolving Loan Fund 
Cleanup or Grant programs), or (c) state-supported brownfields 
programs, to integrate efforts arising from those programs in 
developing projects for assistance under HUD's BEDI and Section 108 
programs. Applicants should elaborate upon these ties in their response 
to the rating factors, where appropriate, in Section V.A.1 of this NOFA 
(e.g., ``Capacity of the Applicant,'' ``Soundness of Approach,'' or 
``Leveraging Resources,''--Rating Factors 1, 3, and 4, respectively.)

II. Award Information

A. Available Funds

    HUD has available approximately $10 million for grant awards under 
this BEDI NOFA, consisting of $10 million through appropriations under 
the FY2006 Consolidated Appropriations Act (Pub. L. 109-115, approved 
December 1, 2005. These funds are authorized by Section 108(q) of the 
Act (as described above). If any additional funds become available for 
the BEDI program during FY2006, including through the deobligation and 
recapture of previous BEDI awards, HUD may either fund additional 
applicants in accordance with this NOFA, or may add these funds to 
funds available for future competitions pursuant to Section 108(q) of 
the Act.

B. Maximum Award

    The maximum amount of a BEDI award under this competition is $1 
million per project. An application in excess of $1 million will be 
reduced to the extent HUD determines that such a reduction is 
appropriate and the project remains feasible.

C. Limitations on Grant Amounts

    1. Ratio of Section 108-Guaranteed Loan to BEDI Grant. HUD expects 
to

[[Page 11873]]

approve BEDI grant amounts for approvable applications with a range of 
ratios of BEDI grant funds awarded to new Section 108-guaranteed loan 
commitments for the same project, but the minimum ratio must be $1.00 
of Section 108-guaranteed loan commitments for every $1.00 of BEDI 
grant funds in order to receive consideration for funding. Section 
V.A.1, Rating Factor 4 (Leveraging of Resources), provides additional 
information on the required ratio of BEDI to Section 108 funds.
    2. Reduction or Deobligation of BEDI Grant Award.
    a. After selection, but prior to grant award, if HUD determines 
that an application can be funded at a lesser BEDI grant amount than 
requested and still be feasible and consistent with the proposed plan 
and the purposes of the Act, it reserves the right to reduce the amount 
of the BEDI award and/or increase the required Section 108 loan 
guarantee commitment.
    b. In the event a BEDI grant is awarded and has been reduced below 
the original request (e.g., the application contained some activities 
that were ineligible, exceeded the $2 million cap, or there were 
insufficient funds to fund the last competitive application at the full 
amount requested), the applicant will be required to modify the project 
plans and application to conform to the terms of HUD approval before 
HUD will execute a grant agreement.
    c. HUD also may proportionately reduce or deobligate the BEDI award 
if a grantee does not submit an approvable Section 108 loan guarantee 
application, issue Section 108-guaranteed obligations, and receive loan 
guarantee proceeds on a timely basis, (including any extension 
authorized by HUD), in the amount required by the BEDI/108 leveraging 
ratio, which will be approved by HUD as a special condition of the BEDI 
grant award (see Section IV.B.1(c)(2) of this NOFA).
    3. Increased Request for Section 108 Loan Guarantee Assistance. In 
the case of a requested increase in guarantee assistance for a project 
with a previously approved Section 108 loan guarantee commitment (as 
further discussed in Section IV.B.1(c)(4)), the BEDI assistance 
approved will be based only on the additional amount of Section 108 
loan guarantee assistance requested.

III. Eligibility Information

A. Eligible Applicants

    Any public entity eligible to apply for Section 108 loan guarantee 
assistance in accordance with 24 CFR 570.702, including Guam, the 
Northern Marianas, American Samoa, and the Virgin Islands for FY 2006, 
may apply for BEDI grant assistance under Section 108(q). Eligible 
applicants are CDBG entitlement units of general local government and 
non-entitlement units of general local government eligible to receive 
loan guarantees under 24 CFR part 570, subpart M. Urban Counties, as 
defined at 24 CFR 570.3 and 570.307, are eligible applicants for BEDI 
funds; units of general local government that participate in an Urban 
County program are not independently eligible applicants. For non-
entitlement applicants other than those subject to 24 CFR part 570, 
subpart F (which applies only to the state of Hawaii), applicants are 
required to provide evidence in the BEDI application from an authorized 
official of the state agency responsible for administering the State 
CDBG program stating that it supports the related Section 108 loan with 
a pledge of its CDBG allocations pursuant to the requirements of 24 CFR 
570.705(b)(2). Such evidence must be provided by form HUD-40122, titled 
``SECTION 108 LOAN GUARANTEE: State Certifications Related to Non-
entitlement Public Entities.'' This form may be downloaded as part of 
the application package from the Internet at www.grants.gov/. Non-
entitlement public entities in 49 states and Puerto Rico are eligible 
to participate in the Section 108 and BEDI programs, with assistance of 
the state's or commonwealth's pledge of CDBG allocations. The non-
entitlement entities in Hawaii are able to make their own repayment 
pledge since they now receive a fixed amount of annual CDBG funding.

B. Cost Sharing or Matching

    As described further in Section V.A.1 of this NOFA, under Rating 
Factor 4 (Leveraging of Resources), applications which evidence a 
greater level of other funds firmly committed to the BEDI project will 
receive more points under Rating Factor 4. In addition, a BEDI grant 
must be used with at least an equal amount of Section 108 loan 
guarantee proceeds for the same brownfields economic development 
project.

C. Program Threshold Requirements

1. Eligible Activities and National Objectives
    a. Applicants for BEDI grant funds and Section 108 loan guarantee 
funds must demonstrate that funds will be used for activities listed at 
24 CFR 570.703 and carried out as part of a BEDI project as defined in 
this NOFA and meet the CDBG requirements at 24 CFR Sections 570.200, 
570.208 and 570.209, as applicable. All applicants must clearly 
identify in their narrative response to Rating Factor 3 (Soundness of 
Approach) in Section V.A.1 of this NOFA each of the eligible activities 
that will be carried out under 24 CFR 570.703.
    With respect to BEDI projects that include a housing component, 
applicants are cautioned that the eligible activities at 24 CFR 570.703 
do not allow BEDI and Section 108 funds to be used to finance the costs 
of the construction of housing, unless such construction is undertaken 
by a Community Based Development Organization (CBDO) or a not-for-
profit organization serving the development needs of a community in a 
non-entitlement area as part of a community economic development 
project, in accordance with 24 CFR 570.703(i)(2) and 24 CFR 
570.204(a)(2). Provisions of 24 CFR 570.703(j) that authorized the use 
of BEDI or Section 108 funds for housing construction have expired and 
are no longer applicable, as the statute referenced therein is no 
longer in effect. For projects that include the construction of 
housing, BEDI and Section 108 funds may be used to finance activities 
necessary to construct such housing, such as acquisition and related 
demolition and clearance on the acquired site, site improvements, 
public facilities and other eligible activities subject to each of the 
eligible activity provisions at 24 CFR 570.703; and
    b. Applicants must demonstrate that each activity assisted with 
Section 108 loan guarantee or BEDI funds will meet a national objective 
of the CDBG program as described in 24 CFR 570.208. All applicants must 
clearly identify in their narrative response to Rating Factor 3 
(Soundness of Approach) in Section V.A.1 of this NOFA, the CDBG 
national objective to be achieved by the proposed project and provide 
the appropriate CDBG national objective regulatory citation found at 24 
CFR 570.208. Applicants must also address, when applicable, how the 
proposed activities will comply with the public benefit standards of 
the CDBG program as reflected in the regulation at 24 CFR 570.209.
    c. A grantee's aggregate use of its CDBG funds, including any 
Section 108 loan guarantee proceeds and Section 108(q) (BEDI) funds 
provided pursuant to this NOFA, must comply with the CDBG primary 
objective requirements as described in Section 101(c) of the Act and 24 
CFR 570.200(a)(3) for entitlement grantees, or 24 CFR 570.484

[[Page 11874]]

in the case of a recipient under a state's program, requiring that, 
over the period of time specified in the applicant's (or State's) CDBG 
certification, not less than 70 percent of the aggregate expenditures 
of CDBG funds be expended for activities benefiting low- and moderate-
income persons under the criteria of 24 CFR 570.208(a) or 570.208(d)(5) 
or (6).
2. Brownfields Redevelopment
    As described further in Section V.A.1 of this NOFA, in the 
narrative response to Rating Factor 3 (Soundness of Approach) 
applicants must: (1) Describe the nature and extent of the brownfields 
problem(s) actually or potentially affecting the site and/or 
structure(s) already on the site; and (2) how the proposed activities 
will contribute to redevelopment of the site and/or structures.
3. General Section Threshold Requirements
    a. Applicants should carefully review the threshold requirements 
found in Section III.C of the General Section that could result in the 
failure to receive funding under this program. Applicants for BEDI 
grant funds must comply with the statutory, regulatory, threshold, and 
public policy requirements listed in the General Section, except as 
otherwise specifically provided in this NOFA. In particular, applicants 
should carefully review those provisions that could result in the 
failure to receive funding, including the DUNS Number Requirement, 
Compliance with Fair Housing and Civil Rights Laws, provisions relating 
to Delinquent Federal Debts, and the Name Check Review.
    b. The Dun and Bradstreet Universal Numbering System (DUNS) Number 
Requirement. Refer to the General Section for information regarding the 
DUNS requirement. You will need to obtain a DUNS number to receive an 
award from HUD. You will also need a DUNS number to complete your 
electronic application as it is a mandatory field on the electronic 
application. The Grants.gov registration also requires use of the DUNS 
number, and Grants.gov registration.
    c. The maximum number of points to be awarded under this NOFA is 
104. To be eligible for funding, a BEDI application must obtain a total 
score of at least 75 points. All applications meeting program and 
General Section threshold requirements will be rated under the 
selection criteria provided in Section V.A.1 below.
4. Other Program Requirements
    a. BEDI Funding Request. A single BEDI application must contain a 
request for funds for a single BEDI/108 project. The application must 
propose activities expected to result in redevelopment of one or more 
brownfields sites. An applicant may submit an additional application 
for each additional unrelated BEDI/108 project, but in no event will 
HUD rate and rank more than one BEDI project per application.
    b. Related Section 108 Loan Guarantee Request. The request for 
Section 108 Loan Guarantee assistance must provide for a minimum ratio 
of $1.00 of requested Section 108 loan guarantee commitments for every 
$1.00 of BEDI grant funds requested, or a higher ratio, as needed for 
the project.
    c. Nonentitlement Applications. Applications submitted by 
nonentitlement public entities (except for those in Hawaii and the 
insular areas which now receive fixed amounts of CDBG funds annually) 
must provide for the state or commonwealth's certification agreeing to 
pledge its CDBG allocations to receive funding consideration, as 
evidenced by form HUD-40122. See the General Section instructions for 
submission of third party documents.
    d. Narrative Response to Rating Factors. Each BEDI application must 
provide narrative statements in response to each of the rating factors 
below in Section V.A.1 of this NOFA.
    e. Time Frame for Submission of Section 108 Applications. All 
applications for Section 108 Loan Guarantee Assistance required for 
approved BEDI projects must be submitted within 60 days of written 
notice of BEDI selection, as provided for in Section IV.B.1(c)(2) of 
this NOFA.
    f. HUD Environmental Requirements. Beginning with the submission of 
a BEDI application through and after HUD's award of BEDI grant funds, 
pursuant to 24 CFR 570.604, each project or activity assisted under 
this program is subject to the provisions of 24 CFR part 58. This 
includes limitations on the commitment of HUD and non-HUD funds by the 
BEDI grantee and Section 108 public entity, as well as other 
participants in the development process, prior to the completion of 
environmental review, notification, and release of funds. Neither grant 
nor loan funds can be disbursed by HUD until a request for release of 
funds is submitted and the requirements of 24 CFR part 58 have been 
met. All public entities, including non-entitlement public entities, 
shall submit the request for release of funds and related 
certification, required pursuant to 24 CFR part 58, to the appropriate 
HUD field office for each project to be assisted.
    g. Compliance with Environmental and Other Laws. An award of BEDI 
funding does not, in any way, relieve the applicant or third party 
users of BEDI funds from compliance with all applicable federal, state, 
and local laws and regulations, particularly those addressing the 
environment. Applicants are further advised that HUD may require 
evidence that any project involving remediation has been or will be 
carried out in accordance with applicable law, including voluntary 
clean up programs.
    h. CDBG Program Regulations. In addition to 24 CFR 570.701 
(Definitions), 570.702 (Eligible applicants), and 570.703 (Eligible 
activities), the CDBG regulatory requirements cited in 24 CFR 570.707, 
including subparts J (Grant Administration), K (Other Program 
Requirements), and O (Performance Reviews), also govern the use of BEDI 
funds, as applicable.
    i. Obligation to Affirmatively Further Fair Housing. All BEDI 
grantees are obliged to affirmatively further fair housing, even when 
the proposed activities do not appear to be directly related to 
housing. Therefore, applicants that propose to use BEDI funds must 
include in their applications an explanation of how they propose to 
further fair housing opportunities for persons on the basis of race, 
color, national origin, sex, religion, familial status, or disability. 
Applicants should respond to this requirement in Section V.A.1 of this 
NOFA, under Rating Factor 3, subfactor (1)(b). Affirmative activities 
include, but are not limited to: initial and periodic assessments of 
the extent to which affordable and accessible housing opportunities are 
provided or denied to persons by race, color, national origin, sex, 
religion, familial status, or disability; outreach to persons in 
underserved population groups or advocacy organizations representing 
such persons; affirmative fair marketing of job or housing 
opportunities; furthering housing choice; addressing environmental 
justice concerns; or ensuring that employment, housing and other 
benefits of the BEDI grant are made available to those individuals and 
families living at or near the brownfields site prior to its 
redevelopment.
    j. Policy Priorities. Applicants are reminded of the Department's 
Policy Priorities for FY 2006 found in Section V.B. of the General 
Section, several of which apply to this NOFA, as described

[[Page 11875]]

in Section V.A.1 below, under Rating Factor 5 (Achieving Results and 
Program Evaluation).
    k. Ineligible Sites. Applicants must propose sites that currently 
meet the definition of brownfields in this program section. Applicants 
may not propose projects on sites which are: (i) Listed or proposed to 
be listed on EPA's National Priority List (NPL); (ii) subject to 
unilateral administrative orders, court orders, administrative consent 
orders or judicial consent decrees issued or entered into by parties 
under the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended (CERCLA); or (iii) subject to the 
jurisdiction, custody, or control of the United States Government. In 
order to be eligible to receive an award under this program, applicants 
will be required in Section V.A.1, Rating Factor 3, Soundness of 
Approach, to indicate that the proposed BEDI project will not be 
undertaken at an ineligible site as provided herein.
    l. Prior Approved Section 108--Guaranteed Loans. BEDI grant 
assistance cannot be used to leverage a Section 108 loan guarantee 
approved prior to the date of HUD's announcement of a BEDI grant 
pursuant to this SuperNOFA, unless the applicant requests to deobligate 
previously approved commitment authority as provided in Section 
IV.B.1(c)(5) of this NOFA. In no event, however, may a previously 
approved Section 108 commitment to be used with a prior BEDI or EDI 
award be subject to such deobligation. In an instance where a pending 
application for Section 108 assistance is to be leveraged by the 
proposed BEDI grant, the BEDI grant may be awarded before HUD approval 
of the Section 108 commitment if HUD determines that such award will 
further the purposes of the Act.
    m. Use of Section 108 Solely for Security. A BEDI award will not be 
made if the Section 108 request contained in the application (See 
Section IV.B.1(c) of this NOFA) calls for the use of the Section 108-
guaranteed obligation solely as security for other financing on the 
project.

IV. Application and Submission Information

A. Addresses To Request Application Package

    1. Copies of the published NOFAs and application forms for HUD 
programs announced through NOFA may be downloaded from the Grants.gov 
Web site at http://www.grants.gov/Find; if you have difficulty 
accessing the information you may receive customer support from 
Grants.gov by calling their Support Desk at (800) 518-GRANTS, or 
sending an e-mail to [email protected]@grants.gov. The 
operators will assist you in accessing the information. The hours of 
the Support Desk are 7 a.m. to 9 p.m. Eastern time.
    2. Satellite Broadcasts. HUD will hold informational broadcasts via 
satellite for potential applicants to learn more about the BEDI program 
and the preparation of BEDI application(s). For more information about 
the date and time of the broadcast, consult the Web site http://www.hud.gov.

B. Content and Form of Application Submission

1. Content of Application
    A complete application for a BEDI grant under this NOFA must 
contain the items listed below. The standard forms that are required 
for the BEDI application can also be found in the General Section. 
Applicants by signing the SF-424 are also agreeing to the 
Certifications and Assurances found in the General Section and this 
NOFA. Additional program forms, excluding such items as narratives or 
letters, etc. also referred to as the ``non-standard forms'', HUD-40122 
and HUD-40123, are included with this NOFA. All forms required for 
application submission can be found in the application package and 
instructions on http://www.grants.gov for the BEDI program.
    a. Checklist and Submission Table of Contents indicating the 
submission items included in the application can be found in Section 
VIII, Appendix A, of this NOFA. Applicants are not required to submit 
the Checklist but are encouraged to review it to ensure that they have 
submitted a complete application.
    b. EDI/BEDI/Section 108 Funding Eligibility Statement. A completed 
EDI/BEDI/Section 108 Funding Eligibility Statement (Exhibit D of form 
HUD-40123).
    c. Request for Loan Guarantee Assistance. A request for loan 
guarantee assistance under Section 108, with the project name clearly 
identified (and the same name of the BEDI project being applied for), 
as further described below. Full application requirements for the 
Section 108 program are found at 24 CFR 570.704. Non-entitlement 
applicants (except those in Hawaii and the insular areas) must 
accompany this request with the State Certifications Related to 
Nonentitlement Public Entities (form HUD-40122) in order to be 
considered for BEDI funding.
    The request for loan guarantee assistance may take any of the five 
forms defined in paragraphs (1), (2), (3), (4), or (5) below. 
Notwithstanding the form of the request for new Section 108 loan 
guarantee assistance, the applicant must include citations to the 
specific regulatory subsection supporting activity eligibility and 
National Objectives compliance for the Section 108 funds described in 
the application. (See Section III.C.1 of this NOFA.) Both the BEDI and 
Section 108 funds must be used in conjunction with the same BEDI 
project. Applicants are encouraged to consult with HUD's Financial 
Management Division in Headquarters CPD, at (202) 708-1871, before 
submission of 108 and/or BEDI applications if unsure of CDBG national 
objectives, eligibility of activities, program benefits citations and 
the tests thereof. The request for new Section 108 guarantee assistance 
may be presented in any of the following ways:
    (1) Concurrent Application Submitted Under Separate Cover. A 
complete application for a new Section 108 loan guarantee(s), including 
the documents listed at 24 CFR 570.704(b), submitted under separate 
cover in accordance with the procedures in Section IV.F.3 below. Any 
full application for loan guarantee assistance under Section 108 must 
also be submitted to the appropriate HUD field office concurrently with 
its submission to Headquarters. As described further in Section V.A.1, 
in Rating Factor 3 (Soundness of Approach), two points will be awarded 
for the submission of a full Section 108 loan guarantee application 
with a BEDI application.
    (2) Subsequent Application. A brief description (not to exceed 
three pages) of the project to be applied for in a subsequent new 
Section 108 loan guarantee application(s). Such a 108 application(s) 
shall be submitted within 60 days of written notice of BEDI selection, 
with HUD reserving the right to extend such period on a case-by-case 
basis where HUD determines there is evidence of good cause. BEDI awards 
will be conditioned on approval of actual Section 108 loan commitments 
and loan guarantee proceeds in a specific ratio of BEDI funds to 
Section 108 funds as approved by HUD in the BEDI award. The description 
provided in the BEDI application must be sufficient to support the 
basic eligibility of the proposed project and activities for Section 
108 assistance. (See Section III.C.1 of this NOFA.)
    (3) Pending, Unapproved Application. A request to use the BEDI 
grant award in conjunction with a pending, unapproved Section 108 loan 
guarantee

[[Page 11876]]

application. The request must identify the project name associated with 
the pending application and the date of submission. Any proposed 
amendment to the pending Section 108 application must be submitted 
under separate cover, as provided for in Section IV.F.3 below. An 
applicant's request to use the BEDI award in conjunction with a pending 
application shall be deemed by HUD to constitute a request to suspend 
separate processing of the Section 108 application. The Section 108 
application will not be approved until, on, or after the date of the 
related BEDI award.
    (4) Increase to a Project Assisted Under a Previously Approved 
Application. A request for Section 108 loan guarantee assistance 
(analogous to Section IV.B.1(c)(1) or (2) above of this section) may 
propose new Section 108 guarantee assistance in addition to the amount 
of Section 108 assistance for a project assisted under a previously 
approved Section 108 application. However, any amount of Section 108 
loan guarantee authority approved before HUD's announcement of a BEDI 
grant for the same project is not eligible to be used in conjunction 
with a BEDI grant under this NOFA.
    (5) Deobligation of Previously Approved Section 108 Authority Plus 
a New Request. A request to deobligate a previous commitment of Section 
108 loan guarantee authority to the applicant that is no longer to be 
used by the applicant (except for an amount required as a condition of 
a previously approved BEDI or EDI award), combined with a new request 
or application for Section 108 loan guarantee assistance. Such request 
or application may be a full application as provided for in paragraph 
(1) above, a request for 108 assistance submitted within 60 days as 
provided for in paragraph (2) above, a pending unapproved application 
as provided for in paragraph (3) above, or an increase to a project 
assisted under a previously approved application as provided in 
paragraph (4) above.
    (6) In no event may a Section 108 loan guarantee amount that is 
required to be used in conjunction with a previously approved BEDI or 
EDI grant award as of the date of the submission of the application, 
whether or not the Section 108 loan guarantee has been approved as of 
the date of this NOFA, be used in conjunction with a new BEDI award 
under this NOFA. For example, if a public entity has a previously 
approved Section 108 loan guarantee commitment of $12 million, even if 
none of the funds have been utilized, or if the public entity had 
previously been awarded a BEDI grant of $1 million and had agreed to 
submit a Section 108 loan application for $10 million in support of 
that BEDI grant, the public entity's application under this NOFA must 
propose to increase the amount of its total Section 108 loan guarantee 
commitments beyond those amounts to which it has previously agreed 
(i.e., the $12 million or $10 million Section 108 loan guarantee 
commitments in this example).
    d. Narrative Responses to Factors for Award (not to exceed 15 
double-spaced, 8\1/2\ x 11 inch single-sided pages, with one-inch 
margins on all sides, for all responses):
    (1) Rating Factor 1: Capacity and Relevant Organizational 
Experience. Provide a narrative indicating the capacity of the 
applicant's organization and staff and any known third parties to 
perform the work for which it is requesting funding.
    (2) Rating Factor 2: Need Statement Identifying the level of 
Distress/Extent of the Problem. Provide a narrative statement including 
any documentation supporting the statement of need, accompanied by a 
completed Exhibit A of form HUD-40123. (See the General Section for 
instructions for submitting documentation found in the download 
instructions.)
    (3) Rating Factor 3: Soundness of Approach. Include the CDBG 
eligible activities, the CDBG National Objective, the source and nature 
of the present or potential environmental contamination, the budget, 
and the time frame for conducting activities and providing project 
benefits to address the needs identified in Rating Factor 2 in the 
narrative response, accompanied by Exhibits B and C of form HUD-40123.
    (4) Rating Factor 4: Leveraging Resources. The response to this 
factor should include any letters of firm commitment as defined in 
Section I.C of this NOFA, and any evidence of financial capacity or 
CDBG resolutions, as appropriate. Such letters, evidence or resolution 
must be submitted under the procedures provided for in Section IV.F of 
the General Section.
    (5) Rating Factor 5: Achieving Results and Program Evaluation. 
Provide a narrative response to this factor, accompanied by the logic 
model provided in the General Section (Form HUD-96010) and, if 
applicable, form HUD-27300, relating to the removal of regulatory 
barriers to affordable housing, with required documentation.
2. Forms, Certifications, and Assurances
    a. In addition to any forms submitted in response to Section IV.B.1 
above, the following forms and certifications must also be submitted in 
accordance with the General Section and may be found in the General 
Section:
    (1) Application for Federal Assistance (SF-424);
    (2) Applicant/Recipient Disclosure/Update Report, HUD-2880; and, if 
applicable,
    (3) Certification of Consistency With RC/EZ/EC-II Strategic Plan, 
HUD-2990, if applicable;
    (4) Certification of Consistency with the Consolidated Plan (HUD-
2991) if applicable;
    (5) Disclosure of Lobbying Activities (SF-LLL); if applicable;
    (6) Acknowledgement of Application Receipt (HUD-2993) (For use with 
paper application submissions);
    (7) You Are Our Client Grant Applicant Survey (HUD-2994-A) 
(Optional);
    (8) Program Outcome Logic Model (HUD-96010);
    (9) Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD-27300) with supporting documentation or URL references;
    (10) Facsimile Transmittal (HUD-96011) (For use with electronic 
applications to provide third-party letters and other documentation in 
accordance with the instructions found in the General Section;
    (11) Section 108 Loan Guarantee (State Certifications Related to 
Non-entitlement Public Entities) (HUD-40122), if applicable, and
    (12) Responses to BEDI Application Rating Factors (HUD-40123, 
Exhibits A through D).

C. Submission Dates and Times

1. Application Submission Date
    Applications submitted through http://www.grants.gov must be 
received and validated by Grants.gov no later than 11:59:59 p.m. 
Eastern time on the application deadline date. If an applicant receives 
a waiver of the electronic application requirement, the paper 
application must be received by the application deadline date. The 
approval to submit a paper copy application will provide detailed 
submission instructions. Please see the General Section for further 
information on application submission and timely receipt requirements.
    Be sure to provide a Project Name in Line 11 of the SF-424 
(Application for Federal Assistance), and all references to the related 
Section 108 application should use the same project title. Be sure to 
complete the SF-424 cover page first and then download the rest of the 
forms, as the information from the cover page will be pre-populated. In 
addition a brief (one or two paragraph)

[[Page 11877]]

description of all the activities (not just those to be funded with 
BEDI and 108 funds) comprising the proposed project should be provided, 
preceding the narrative statements in response to the Rating Factors. 
This project description does not count against the 15-page overall 
limitation.
2. Proof of Timely Submission
    Please see Section IVF. of the General Section for information 
regarding proof of timely submission.

D. Intergovernmental Review

    BEDI is not subject to the provisions of Executive Order 12372, 
``Intergovernmental Review of Federal Programs.''

E. Funding Restrictions

1. Repayment of Section 108 Principal
    The planned use of BEDI funds for the specific purpose of repayment 
of the principal amount of a Section 108-guaranteed loan is not an 
eligible activity under 24 CFR 570.703 and therefore should not be 
proposed in a BEDI application. Under the ``debt service reserve'' 
eligible activity at 24 CFR 570.703(k), however, the planned use of a 
limited amount of BEDI funds for the repayment of the principal of a 
Section 108-guaranteed loan is permissible if justified and approved by 
HUD under a particular application. Such a debt service reserve may be 
justified in the context of a loan loss reserve set up to support a 
``loan pool'' consisting of a number of smaller third party loans. For 
example, the corresponding principal amount of the Section 108 loan 
might be repaid from a debt service reserve when a third party loan 
defaults and liquidation of security for the third party loan by or on 
behalf of the Section 108 borrower/BEDI grantee does not yield enough 
cash to redeem or defease the amount of Section 108 principal 
corresponding to the defaulted third party loan. A debt service reserve 
may also be proposed and set up in an amount reasonable to pay 
principal and/or interest on a Section 108-guaranteed loan for a 
limited period, such as the start up period for an assisted business, 
or a construction period, when the cash flow resulting from the primary 
Section 108 or BEDI-funded activity would not be sufficient to support 
repayment. HUD requires the applicant to provide information sufficient 
to support the reasonableness of the amount of a debt reserve in 
relation to its purpose. For any Section 108- and BEDI-assisted 
project, HUD will have rights under the Section 108 Contract for Loan 
Guarantee Assistance to use undisbursed BEDI funds to make payment on, 
or to defease, the Section 108 loan if HUD deems that action necessary 
in order to avoid the need for HUD to make a payment under its Section 
108 loan guarantee from non-CDBG funds.
2. Subordination of Section 108 Obligations
    Section 108 loan obligations may not be subordinated, directly or 
indirectly, to federally tax-exempt obligations. Pursuant to Office of 
Management and Budget (OMB) Circular A-129 (Rev.) Appendix A, Sections 
II.2.c. and d., (Policies for Federal Credit Programs and Non-Tax 
Receivables), Section 108-guaranteed loan funds may not, directly or 
indirectly, support federally tax-exempt obligations.
3. Remediation by Responsible Parties
    BEDI grant funds shall not be used in any manner by grantees to 
provide public or private sector entities with funding to remediate 
conditions caused by their own actions, where the public entity (or 
other known prospective beneficiary of the proposed BEDI grant) has 
been determined responsible for causation and remediation by order of a 
court or a federal, state, or local regulatory agency, or is 
responsible for the remediation as part of a settlement approved by 
such a court or agency. Applicants will be required under Rating Factor 
3, Soundness of Approach, to indicate that the proposed BEDI project 
will not be used to provide assistance.
4. Denial of Funding for Lack of Prior Performance
    HUD may deny funding consideration to all applicants that fail to 
submit a full and complete Section 108 loan application pursuant to 24 
CFR 570.704(b) in connection with a prior award of BEDI or competitive 
EDI grants on or before the application submission deadline under this 
NOFA.

F. Other Submission Requirements

1. Application Submission and Receipt Procedure
    HUD requires applicants to submit applications electronically 
through http://www.grants.gov. Applicants must submit their 
applications electronically via the website http://www.grants.gov 
unless you request and are granted a waiver to the electronic 
submission requirements. This site has easy to follow step-by-step 
instructions that will enable you to apply for HUD assistance.
    Please read the General Section carefully and completely for the 
submission and receipt procedures for all applications because failure 
to comply may disqualify your application.
2. Wavier of Electronic Submission Requirements
    Please refer to Section IV.F of the General Section for 
instructions on how to seek a waiver to the electronic submission 
requirement.
3. Submission of Concurrent Section 108 Application Under Separate 
Cover
    Applicants that apply via Grants.gov should submit the Section 108 
Loan Guarantee application using the mailing instructions below.
    a. The Section 108 Loan Guarantee application should have the 
Project Title in Box 11 of the SF-424 as the related BEDI project.
    b. Concurrent Section 108 Application deadline date. Applicants 
choosing to submit a concurrent and complete Section 108 application as 
provided for in Section IV.B.1(c) of this NOFA above, must be received 
no later than the BEDI application deadline date, to the addresses 
shown below, in order to receive points under Section V.A.1, Rating 
Factor 3, of this NOFA.
    The concurrent Section 108 application must be received no later 
than 11:59:59 p.m. by the United States Postal Service in accordance 
with the instructions in the General Section. The required number of 
copies should be sent to the locations indicated below. If HUD receives 
at least one completed concurrent Section 108 application at either HUD 
Headquarters or the appropriate HUD Field Office, HUD will utilize the 
complete application for its review purposes, provided it meets the 
deadline and timely submission requirements.
    c. Proof of Timely Submission. Proof of timely submission of a 
concurrent Section 108 application shall be determined under the 
provisions of the General Section related to mailed applications.
    d. Address for Submitting Concurrent Section 108 Applications to 
HUD Headquarters. Submit the concurrent Section 108 application to: HUD 
Headquarters; Robert C. Weaver Federal Building; 451 Seventh Street, 
SW., Room 7251; Washington, DC 20410, Attention: BEDI/Section 108 
Application.
    When submitting the concurrent Section 108 application, please 
specify BEDI/Section 108 Application on any label or mailing container, 
and include the applicant's name, mailing address (including zip code), 
street address (if different from mailing address), and zip

[[Page 11878]]

code, and voice and facsimile telephone numbers (including area code), 
along with the contact person's name, and voice and facsimile telephone 
numbers (including area code), and email address, if available.
    e. Concurrent Section 108 Applications to HUD Field Offices. At the 
same time the concurrent Section 108 application is submitted to HUD 
Headquarters, an additional copy should be submitted to the Community 
Planning and Development Division of the appropriate HUD field office 
for the applicant's jurisdiction. A listing of CPD Offices and mailing 
addresses can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    f. Concurrent Section 108 Application Submission Procedures. A 
concurrent Section 108 application submitted pursuant to this NOFA 
shall be subject to the application submission procedures for other 
mailed applications provided for in Section IV.F of the General 
Section. Subsequent and pending Section 108 applications are not 
subject to the above submission procedures.

V. Application Review Information

A. Criteria

1. Factors for Award Used to Evaluate and Rate Applications
    a. Response to Factors for Award. The applicant must provide in 
narrative form responses to each of the rating factors below. HUD will 
evaluate all applications for funding assistance based on the following 
factors, the responses to which demonstrate the quality of the proposed 
project or activities, and the applicant's capacity and commitment to 
use the BEDI funds in accordance with the purposes of the Act. As part 
of the application review, HUD reserves the right to contact its local 
field offices for the purpose of verifying information submitted by the 
applicant.
    b. Responses to Rating Factors 1-5. Responses to Rating Factors 1-5 
below shall not exceed 15 double-spaced, 8\1/2\ x 11 inch single-sided 
pages, with one-inch margins on all sides, for all responses.
2. Rating Factors for Award
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Experience (20 Points Maximum)
    This Factor addresses the extent to which the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. The rating of the applicant 
will include any subcontractors, consultants, and sub-recipients that 
are firmly committed to participate in the activities described in the 
application. In responding to subfactors (1) and (2) of this Factor, 
applications that merely summarize the amount of funds received, spent, 
or managed will receive fewer points than those providing specific 
measurable information on program activities undertaken, outcomes of 
these activities and their accomplishments. In rating this Factor, HUD 
will consider the following:
    (1) Applicant Capacity (Up to 10 points). The applicant should 
demonstrate that it has the organization, the staff, and the financial 
resources in place to implement the specific steps required to 
successfully carry out its proposed BEDI/Section 108 project. The 
applicant should offer evidence of this capacity through a description 
that includes:
    (a) Performance in the administration of its CDBG, HOME, or other 
HUD programs, including a description of successfully completed 
projects and other outcomes or accomplishments under these programs. In 
addition to citing specific projects, outcomes, or accomplishments, 
CDBG entitlement recipients must also indicate the extent to which the 
applicant has met the HUD standard that the total amount of its 
undisbursed entitlement grant funds may not be more than 1.5 times the 
entitlement grant amount for the current program year (see 24 CFR 
570.902(a)(1)(i). All applicants must also identify any unresolved 
monitoring or audit findings by HUD with respect to the applicant's 
administration of HUD programs.
    (b) Performance, if any, in carrying out economic development 
projects similar to that proposed, including brownfields economic 
development or redevelopment projects, if any, and if applicable, the 
ability to conduct prudent underwriting;
    (c) If an applicant has received a federal Renewal Community/
Empowerment Zone/Enterprise Community designation (including Enhanced 
Enterprise Community (EEC) designation), it must provide information on 
the status of its capacity to achieve state and local commitments 
identified in its local implementation plan, including maximizing the 
federal tax benefits made available. Applicants that have been 
designated as a Renewal Community (RC), Empowerment Zone (EZ), or 
Enterprise Community (EC/EEC) must respond to this subfactor even if 
the proposed brownfields economic development project is not to be 
located within the boundaries of the designated RC/EZ/EC-II; and
    (d) An applicant that has previously received a BEDI or a 
competitive EDI grant award or, within the past five years, a Section 
108-guaranteed loan commitment, must describe the status of the 
implementation of those project(s) assisted with any BEDI or 
competitive EDI funds or with any Section 108-guaranteed loan funds so 
approved within the last five years. An applicant must address any 
delays that have been encountered and the actions it is taking to 
overcome any such delays in carrying out the project(s) in a timely 
manner.
    If HUD has not applied the performance standard applicable to all 
previous BEDI grantees referenced in Section III.C.1.(c), then for any 
such previously funded BEDI or competitive EDI grant projects, or for 
those Section 108-guaranteed loan projects committed within the past 
five years, HUD will award more rating points for applications 
providing evidence of achievement of specific measurable outcomes in 
carrying out approved activities funded with such guaranteed loan or 
grant funds.
    If any of the rating criteria listed under (a) through (d) above do 
not apply to an application, the rating for this subfactor (1) shall be 
based solely upon the other applicable criteria. If the applicant has 
no prior relevant experience, the rating for this Factor shall be based 
on the capacity of its partner(s), if any, as stated below.
    (2) Partner Capacity (Up to 10 points). In response to this 
subfactor (2), the applicant should describe the experience and 
performance of subrecipients, private developers and other businesses, 
nonprofit organizations (including grassroots faith-based and other 
community-based organizations), and other entities, if any, that have a 
role in implementing the proposed BEDI/108 program. Applicants are 
encouraged to identify specific economic development or other projects 
undertaken by each entity, which reflect the capacity of each entity to 
fulfill its responsibilities under the proposed brownfields economic 
development project, including the location, scale, and timeframe for 
completion of other relevant projects. If there are no third parties 
participating with the applicant in the proposed project, the 10 points 
available under this subfactor (2) will be added to the 10 points 
available under subfactor (1), with a maximum of 20 possible points 
then available under subfactor (1).
    Experience will be judged in terms of recent (i.e., within the past 
5 years) and successful performance of activities

[[Page 11879]]

relevant to those proposed in the BEDI application. The more recent and 
extensive the positive experience, the greater the number of points 
that will be awarded for this Factor.
    In addition to the application, HUD also may rely on information at 
hand or available from public sources such as newspapers, from 
performance and/or monitoring reports, Inspector General or Government 
Accounting Office reports or findings, hotline complaints that have 
been proven to have merit, audit reports, and other reliable public 
information in rating this Factor.
Rating Factor 2: Distress/Extent of the Problem (15 Points Maximum)
    This Factor addresses the extent to which there is need for funding 
the proposed activities based on levels of distress in both the 
jurisdiction of the public entity that is the applicant and the 
geographic or target area that will benefit from the project. 
Applications will be evaluated on the extent to which the level of 
distress for the target area is documented and compared with national 
data and data for the jurisdiction.
    In applying this Factor, HUD will consider current levels of 
distress in the target area, as defined in standard geographic terms by 
the applicant. This may be Census Tract(s) or Block Groups immediately 
surrounding the project site up to a radius of one-half mile, or it may 
be the target area to be served by the proposed project. HUD will also 
consider the current levels of distress in the applicant public 
entity's jurisdiction, if different from the target area. The applicant 
should describe the nature of the distress that the project is designed 
to address and the rationale for its definition of the area to be 
benefited. Examples of project beneficiaries may include: (a) those 
receiving or using products or services produced by the project, and 
(b) those employed by the project.
    Notwithstanding the above, an applicant proposing a project to be 
located outside the applicant's jurisdiction or the target area for 
which benefits are claimed could still receive points under this Factor 
if a clear rationale is provided linking the proposed project location 
and the benefits to be derived by persons living in the target area or 
the applicant jurisdiction.
    To the extent that the applicant's Consolidated Plan, its Analysis 
of Impediments to Fair Housing choice (AI), and/or its Anti-Poverty 
Strategy found therein identify the level of distress in the 
jurisdiction and the target area in which the project is to be carried 
out, references to such documents should be included in preparing the 
response to this Factor. Applications that fail to reference these 
sources will receive fewer points under this Factor.
    Applicants should provide data that address the following specific 
indicators of distress:
    (1) Poverty Rate (Up to 5 points). Data should be provided in both 
absolute and percentage form (i.e., whole numbers and percents) for 
both the target area and the applicant's jurisdiction as a whole; an 
application that compares the local poverty rate in the following 
manner to the national average at the time of submission will receive 
points under this section as follows:
    (a) A poverty rate in the target area that is less than the 
national average, but that is greater than the rate for the applicant's 
jurisdiction: (2 points);
    (b) A poverty rate in the target area that is at least equal to, 
but less than twice, the national average: (3 points);
    (c) A poverty rate in the target area that is twice or more the 
national average: (5 points).
    (2) Unemployment Rate (Up to 5 points). An application that 
compares the local unemployment rate for the applicant's jurisdiction 
and the target area in the following manner to the national average at 
the time of submission will receive points under this subfactor as 
follows:
    (a) An unemployment rate in the target area that is less than the 
national average, but that is greater than the rate for the applicant's 
jurisdiction: (2 points);
    (b) An unemployment rate in the target area that is at least equal 
to, but less than twice, the national average: (3 points);
    (c) An unemployment rate in the target area that is twice or more 
the national average: (5 points).
    (3) Other Indicators of Social and/or Economic Decline (Up to 5 
points). Applicants should provide other indicators of social or 
economic decline that best capture the applicant's local situation. 
Examples that could be provided under this section include information 
demonstrating the target area and the jurisdiction's stagnant or 
falling tax base, including recent (within the last three years) 
commercial or industrial closings, downturns or layoffs; housing 
conditions, such as the number and percentage of substandard and/or 
overcrowded units; rent burden (defined as average housing cost divided 
by average income) for both the target area and jurisdiction; local 
crime statistics. The response to this subfactor (3) should paint a 
picture of the extent of need and distress in the target area and 
jurisdiction.
    HUD requires use of sound and reliable data (e.g., U.S. Census 
data, state statistical reports, university studies/reports that are 
verifiable) to support distress levels cited in each application. A 
source for all information along with the publication or origination 
date must also be provided. Updated Census data are available as 
follows for the listed indicators:
    Unemployment rate: Unemployment rates are estimated monthly for 
counties, with a two-month lag by the Bureau of Labor Statistics, while 
census tract unemployment rates are available through the 2000 U.S. 
Census;
    Poverty rate: Poverty rates are provided through the 2000 U.S. 
Census and are estimated every two years, with a three-year lag. Census 
and other relevant data can be accessed through http://www.ffiec.gov/. 
In rating applications under this Factor, HUD reserves the right to 
consider sources of available objective data other than, or in addition 
to, those provided by applicants, in order to compare such data to 
those provided by applicants.
Rating Factor 3: Soundness of Approach (35 Points Maximum)
    This Factor addresses the quality and cost-effectiveness of the 
proposed plan for the brownfields economic development project. 
Applications that do not propose the productive reuse of a specific, 
identified site or sites and that do not result in near-term, 
measurable economic benefits, such as projects that involve only the 
preparation of a site for potential future reuse by an unidentified 
party, or the capitalization of a loan pool for loans to unidentified 
borrowers, will receive fewer points under this Factor. The 
relationship between the proposed site or sites, the proposed eligible 
activities and the community needs and purposes of the program funding 
must be clearly described, as set forth below, in order to receive 
points for this Factor. In rating this Factor, HUD will consider the 
following:
    (1) Consistency/Appropriateness of Proposed Activities With 
Identified Needs (Up to 3 points). In response to this subfactor, the 
applicant should describe:
    (a) the extent to which the proposed plan for use of BEDI grant/
Section 108-guaranteed loan funds will address the needs described in 
Rating Factor 2 above regarding the distress and extent of the problem 
in the target area or area to be benefited and the long-term benefit 
for current residents of the target area. The applicant should provide 
a clear

[[Page 11880]]

and quantified explanation of this relationship;
    (b) any unmet needs identified in the jurisdiction's Consolidated 
Plan and pursuant to Section III.C.4(j) of this NOFA, any impediments 
to fair housing identified in the jurisdiction's Analysis of 
Impediments to Fair Housing Choice, that will be directly addressed by 
the proposed project. See Section III.C.4(j) of this NOFA for examples 
of general affirmative fair housing actions that may be undertaken to 
address a jurisdiction's Analysis of Impediments to Fair Housing 
Choice; and
    (c) the activities that will be carried out with the BEDI grant 
funds, and the nature and extent of the brownfields problem(s) actually 
or potentially affecting the site and/or structure(s) already on the 
site. This response must also indicate that the proposed assistance 
will not be used to provide funding to parties to remediate conditions 
caused by their own actions for which they have been determined to be 
legally responsible, and that the proposed brownfields site is not 
ineligible, as provided in Section IV.E.4 of this NOFA. This 
information relates to a threshold factor as well as a rating factor, 
as described in Section III.C.2 of this NOFA. Applications that fail to 
respond satisfactorily to this subfactor (c) shall not receive funding 
consideration.
    (2) Eligible Activities and CDBG National Objectives (Up to 8 
points). The applicant must describe how the proposed uses of BEDI 
funds will qualify as eligible activities under 24 CFR 570.703 
governing the Section 108-guaranteed loan program, and also will meet 
the National Objectives of the CDBG program under 24 CFR 570.208. In 
describing how the proposed uses will meet the National Objectives of 
the CDBG program and the activity eligibility requirements of the 
Section 108 program, applications must also include citations to the 
specific regulatory subsections supporting eligibility of activities 
and compliance with National Objectives. (See Section III.C.1 of this 
NOFA). This information relates to a threshold factor as well as a 
rating factor, as described in Section III.C.1 of this NOFA. 
Applications that fail to respond satisfactorily to this subfactor (2) 
shall not receive funding consideration.
    (3) Project Readiness (12 points overall, with (a)-(d) worth up to 
10 points collectively, and (e) up to 2 points). In responding to this 
subfactor (3), the applicant should demonstrate the extent to which the 
redevelopment plan for the brownfields site is logical, feasible, and 
likely to achieve its stated purpose and the extent to which the 
project will directly result in the productive reuse of the site and 
the delivery of near-term, measurable economic benefits. The 
applicant's response should demonstrate the extent to which the project 
is likely to be completed within a maximum of five years from the date 
of the BEDI award and will produce near-term, measurable economic 
benefits. Points for this subfactor will be awarded based upon the 
extent to which the following critical benchmarks for the redevelopment 
plan have been met or are approaching completion.
    (a) Environmental Investigation. This subfactor (a) will consider 
the extent to which the presence or potential presence of environmental 
contamination of the project site is known or understood. Proposed 
projects on sites where the nature and degree of environmental 
contamination is not well-quantified, where no environmental 
investigation has commenced, or that are the subject of on-going 
litigation or environmental enforcement actions will receive fewer 
points under this subfactor (a). Similarly, fewer points will be 
awarded to proposed projects at sites with exceptionally expensive 
contamination problems that may be beyond the scope of the BEDI and 
Section 108 programs' financial resources or other resources firmly 
committed to the project as described in the application, and sites 
subject to pending and current litigation that may not be available for 
remediation and development or redevelopment in a time frame that will 
produce near-term and measurable economic benefits through the use of 
BEDI and Section 108 funds. Alternatively, any applicant indicating the 
completion of environmental assessment or review and the issuance of 
HUD approval for a Request for Release of Funds for the project under 
24 CFR part 58 will receive more points under this subfactor.
    (b) Site Control. This subfactor (b) will consider the extent to 
which control of the proposed project site has been secured or is being 
sought. Points for this subfactor (b) will be awarded based upon the 
degree of site control secured by the applicant or its development 
partner. Projects, for instance, in which negotiation or litigation 
related to site control are underway or continuing are eligible, but 
will receive fewer points than projects in which an option to purchase 
has been secured. Projects in which the applicant or its development 
partner has secured site control through acquisition, long-term lease, 
eminent domain or other means at the time of application will receive 
full points under this subfactor (b). In responding to this subfactor 
(b), applicants are encouraged to accompany their narrative response 
with a map indicating the boundaries of the proposed site or sites on 
which BEDI-assisted improvements are proposed. Any map included as part 
of the application must be submitted in accordance with the submission 
procedures provided for in the General Section and will not be counted 
in the fifteen page limitation on the narrative response to the Rating 
Factors as provided in Section V.A.1(b) of this NOFA.
    (c) Legislative, Regulatory, and Other Approvals. This subfactor 
(c) will consider the extent to which any required local legislative 
approvals, regulatory permits, zoning classifications, environmental 
regulatory approvals, waivers, general, and special use permits, 
assessment district designations, public easements or rights-of-way, or 
other similar approvals have been secured or are being sought. The 
greater the number of outstanding legislative, regulatory, or other 
approvals required and not yet secured, the fewer points will be 
awarded. In the case of a CDBG entitlement unit of general local 
government, such as a county, proposing to undertake a BEDI project 
within the jurisdiction of another CDBG entitlement unit of general 
local government, such as a city or other jurisdiction within that 
county, the applicant should also include a letter of support from the 
jurisdiction in which the BEDI project would be located.
    (d) User Agreements. This subfactor (d) will consider the extent to 
which any development agreements, tenant leases, memoranda of 
understanding, or other agreements integral to returning the site to 
productive reuse and producing near-term measurable economic benefits, 
have been secured or are being sought. Applicants proposing projects 
that do not provide for new investment by an identified, committed 
private entity and the return of a brownfields site to productive 
reuse, with accompanying near-term, measurable economic benefits, will 
receive fewer points under this subfactor (d).
    (e) Delivery of Economic Benefits. The response to this subfactor 
(e) must include the time frame in which the measurable economic 
benefits are to be delivered. For multi-phase projects, the response to 
this subfactor (e) must clearly delineate the different phases of the 
project and indicate whether or not they are to be funded by BEDI/
Section

[[Page 11881]]

108 funds. Brownfields economic development projects that provide near-
term, measurable economic benefits directly through the creation or 
retention of jobs will receive a greater number of points under this 
subfactor (e).
    (1) Timeframe for Delivery of Economic Benefits. In response to 
this subfactor (3), the applicant should also provide a specific 
schedule (with both beginning and end dates) for carrying out the 
project and identify all interim measurable benchmarks (acquisition, 
demolition, site improvements, relocation, construction, provision of 
jobs mandated under Section 3, as described in (2) below, etc.) to be 
accomplished. The applicant should also include a proposed schedule for 
drawing down all funds necessary to complete the project, including 
BEDI and Section 108 funds.
    (2) Intent to Meet Section 3 Requirements. To the extent possible, 
applicants must ensure that training, employment, and other economic 
opportunities will be directed to low- and very-low income persons, 
particularly those who are recipients of government assistance for 
housing, and business concerns that provide economic opportunities to 
low- and very low-income persons, as required under 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).
    (4) Section 108 Application (Up to 2 points). BEDI applications 
accompanied by a request for new Section 108 Loan Guarantee assistance 
as evidenced by a full and complete Section 108 application as provided 
for in 24 CFR 570.704, and submitted concurrently under separate cover 
as provided for in Section IV.F.3 of the NOFA, will receive up to two 
points for this subfactor (4). BEDI applications accompanied by a 
request to use the BEDI grant award in conjunction with a currently 
pending but unapproved Section 108 loan guarantee application (together 
with any amendments needed for consistency with the BEDI application) 
for the same project described in the BEDI application, will also 
receive up to two points under this subfactor (4).
    (5) Financial Feasibility/Need (Up to 10 points). The applicant 
should demonstrate the economic necessity of the proposed BEDI and 
Section 108 funds and the extent to which the project is not 
financially feasible in the absence of such funds. In responding to 
this subfactor (5), applicants are encouraged to accompany their 
narrative response, as appropriate, with development and operating 
``pro formas'' or similar analyses of the proposed project financing. 
Such pro forma or other financial analysis will not be counted in the 
fifteen-page limitation on the narrative response to the Rating Factors 
as provided in Section V.A.1(b) of this NOFA. In the narrative 
response, applicants must clearly address the question of why the BEDI 
funds are critical to the success of this project by providing the 
following items:
    (a) Use of BEDI and Section 108 Funds to Fill Financing Gaps. The 
applicant must provide an economic rationale that demonstrates how the 
use of the BEDI and Section 108 funds will directly impact the 
financial feasibility of the proposed project. The response should 
discuss the critical gaps that exist in financing the proposed project, 
why those gaps exist and how the BEDI and Section 108 funds will be 
used to fill those gaps. The narrative response, including any pro 
forma or similar analysis, should demonstrate how the proposed BEDI and 
Section 108 financing will yield economic benefits critical to the 
success of the project, including, for example, increased rates of 
return or debt coverage ratios, reduced rents or other similar 
financial outcomes necessary to attract private investment.
    (b) Project Costs and Financial Requirements. A funding sources and 
uses statement must also be provided that specifies the source of funds 
for each identified use or activity (Exhibit C of form HUD-40123), 
along with the derivation of project costs.
Rating Factor 4: Leveraging Resources (15 Points Maximum)
    In evaluating this Factor, HUD will consider the extent to which 
the response demonstrates the likelihood that the project will leverage 
both Section 108 loan and other public or private funds as part of the 
total project resources. Points for this Factor will be awarded in two 
parts, for the following:
    (1) Leverage of Section 108 funds (Up to 8 points). The minimum 
ratio of Section 108 funds to BEDI funds in any project may not be less 
than 1:1. Points will be awarded based upon the extent to which the 
proposed project leverages an amount of Section 108 funds greater than 
a 1:1 ratio. If the application has a ratio of 1:1, it will not receive 
any points under this subfactor. The higher the ratio of additional new 
Section 108 funds to BEDI funds proposed in an application, the more 
points it will receive under this subfactor. (See Sections II.C.1 and 
Section VI.B.1(a) of this NOFA regarding the conditioning of BEDI 
awards on achievement of a specific BEDI/Section 108 leveraging ratio.)
    (2) Leverage of Other Financial Resources (Up to 7 points). HUD 
will evaluate the extent to which other funds (public or private) are 
leveraged by BEDI grant funds, and the extent to which such other funds 
are firmly committed to the project. This could include the use of CDBG 
funds, other federal or state grants or loans, local government general 
funds, project equity or commercial financing provided by private 
sources or funds from nonprofit organizations or other sources. In 
order to receive points for other public and privately committed funds 
under this subfactor (2), letters of firm commitment, evidence of 
financial capacity and, for CDBG funds, the resolution of the local 
governing body, must be submitted for the proposed BEDI project in 
accordance with the submission procedures for third party documents 
provided in Section IV.F. of the General Section. In addition:
    (a) Applicants must provide evidence that there is a firm 
commitment for such funds as defined in Section I.C. of this NOFA.
    (b) If a commitment is to be self-financed, such as a commitment by 
a private developer to provide a specified amount of equity investment 
in the project, the party making that commitment must evidence its 
financial capacity through the submission of a corporate or personal 
financial statement or other appropriate means in order to receive 
points under this subfactor (2).
    (c) For Applicants Committing CDBG Funds: In order for an 
applicant's commitment of CDBG funds to be accepted by HUD as 
additional financing for a BEDI project, a resolution from the local 
governing body (e.g., city/borough council) authorizing the amount and 
permitted uses of the funds must be provided.
    All such funds may also be committed subject to completion of a 
satisfactory environmental review required under 24 CFR Part 58 for the 
project for purposes of this section.
Rating Factor 5: Achieving Results and Program Evaluation (15 Points 
Maximum)
    This Factor emphasizes HUD's commitment to ensuring that applicants 
maintain commitments made in their applications and assess their 
performance to ensure that performance goals are met. This Factor also 
evaluates the extent to which the results of the proposed BEDI project 
will address the policy priorities of the Department. In

[[Page 11882]]

addition to a narrative response, applicants must complete the logic 
model provided in the General Section (form HUD-96010) in order to 
receive points under this Factor. Applicants seeking policy priority 
points for the removal of regulatory barriers to affordable housing as 
provided for in subfactor (2)(v) of this Factor, must also complete 
form HUD-27300.
    (1) Performance Measurement Plan (Up to 12 points). HUD requires 
applicants to develop an effective, quantifiable, outcome oriented 
performance measurement plan for assessing performance and determining 
that BEDI project goals have been met. The applicant's response to this 
subfactor (1) should identify: (a) Each of the specific project 
outcomes for the proposed BEDI project; (b) all interim benchmarks or 
outputs of the project and the associated time frames for meeting each 
interim benchmark or output, i.e., the near-term measurable economic 
benefits to be achieved, such as the number of jobs created or retained 
and the time frame for creation or retention; and (c) the performance 
indicators selected by the applicant to measure its achievement of the 
identified project outputs and project outcomes. The performance 
indicators selected by the applicant should be objectively quantifiable 
and measure actual achievements against anticipated results. The 
response to this subfactor (1) should identify what will be measured, 
how it will be measured, and the procedures or plans that are in place 
to make adjustments to the project redevelopment plan if performance 
targets are not met within established time frames.
    In response to this subfactor (1), applicants should address any of 
the applicable outcomes or ultimate goals identified for the BEDI 
project. Examples of such outcomes or goals include increased property 
values, or home sales prices, as a result of a series of coordinated 
neighborhood activities; the amount of increased wages resulting from 
the creation or retention of jobs; increased business sales volume in 
revitalized neighborhoods; or the amount of any increased land value 
that results from the BEDI project. Applicants should propose 
quantifiable outcomes or goals related to the benefits expected for the 
neighborhood or for persons assisted, as part of the evaluation plan.
    (2) Policy Priorities (Up to 3 points). The applicant's response to 
this subfactor (2) should address how the project will address any of 
the following policy priorities of the Department, as further detailed 
in Section V.B. of the General Section. A maximum of three points shall 
be awarded to applicants that demonstrate how the proposed BEDI project 
addresses two or more of the following policy priorities, with the 
number of points afforded to each policy priority indicated below:
    (a) The extent to which the proposed project will improve the 
quality of life in the nation's communities, by bringing private 
capital to distressed communities (1 point);
    (b) The extent to which the proposed project will finance business 
investments that will grow new businesses or maintain and expand 
existing businesses (1 point);
    (c) The extent to which the proposed project will create decent 
jobs for low-income persons (1 point);
    (d) The extent to which the project will increase affordable 
housing and homeownership opportunities in environmentally healthy and 
revitalized neighborhoods for low- and moderate-income persons, persons 
with a disability, the elderly, minorities, and persons with limited 
English proficiency (1 point);
    (e) The extent to which the project will assist in breaking down 
regulatory barriers that impede the availability of affordable housing, 
accompanied by form HUD-27300). To receive points for this factor the 
applicant must submit the required documentation or reference to a 
URL(s) where the information can be found. (up to 2 points); and,
    (f) The extent to which the project will utilize energy-efficient 
solutions in the design or operating phases, including the purchase and 
use of Energy Star-labeled products and/or combined heat and power 
(CHP, or cogeneration) in buildings, where applicable.) (See Section 
V.B of the General Section, Promoting Energy Efficiency and Adopting 
Energy Star, for more information (1 point).
3. Bonus Points
    An application may receive up to four bonus points, until the 
maximum of four points are achieved. Two bonus points may be awarded 
for each of the following:
    a. HUD will award two bonus points to each application that 
includes a valid form HUD-2990 certifying that the proposed activities/
projects in the application are consistent with the strategic plan for 
an empowerment zone (EZ) designated by HUD or the United States 
Department of Agriculture (USDA), the tax incentive utilization plan 
for an urban or rural renewal community designated by HUD (RC), or the 
strategic plan for an enterprise community designated in Round II by 
USDA (EC-II), and that the proposed activities/projects will be located 
within the RC/EZ/EC-II mentioned above and are intended to serve the 
residents of the Zone. A listing of the RC/EZ/EC-IIs is available on 
the Internet at http://www.hud.gov/cr;
    b. Two bonus points will also be awarded for projects that are 
located in Brownfields Showcase Communities designated by EPA. A list 
of the federally designated Brownfields Showcase Communities is 
available from the SuperNOFA Information Center or through the HUD 
website, http://www.hud.gov.

B. Reviews and Selection Process

    1. Reviews and Selection Process. All applications meeting BEDI 
program and other threshold requirements will be rated under the 
selection criteria in Section V.A. of this NOFA. Applications will be 
selected for funding as follows:
    a. Fundable BEDI grant applications must meet the program threshold 
and submission requirements of this NOFA and the other threshold 
requirements stipulated in Section III.C. of the General Section or 
they will not be ranked.
    b. All BEDI grant applications that meet threshold requirements 
will be ranked separately in order of points assigned with the 
applications receiving more points ranked above those receiving fewer 
points.
    c. In the event two or more applications are given the same score, 
but there are insufficient funds to fund all of the tied applications, 
the application(s) with the highest score(s) on Rating Factor 3 shall 
be selected. If there is still a tie, the following Factors will be 
considered sequentially, with the application having the high score on 
each Factor in the following order taking precedence until the tie is 
broken: Rating Factor 1, Rating Factor 2, Rating Factor 4, and Rating 
Factor 5.
    d. Fundable BEDI applications will be funded in rank order until 
the total aggregate amount of the approvable applications funded is 
equal to the maximum amount available in the competition (subject to 
the limitations described in Section II.C above).
    e. In the event an insufficient number of applications meeting the 
program thresholds are received to award the full amount of BEDI funds 
appropriated and available under this NOFA, HUD may consider for 
funding those applications that did not meet the performance standards 
found in Section III.C.1.(c) above.
    2. Corrections to Deficient Applications. Section V.B. of the

[[Page 11883]]

General Section provides the procedures for corrections to deficient 
applications.

C. Anticipated Announcement and Award Dates

    Historically, BEDI awardees have been notified of the approval of 
BEDI applications within approximately 90 days of the application 
deadline.

VI. Award Administration Information

A. Award Notices

1. Notice of Award and Obligation
    BEDI award recipients will receive written notice of approval of 
their applications and the related terms and conditions of the award. 
An authorized official of the applicant receiving a BEDI award will be 
required to sign and return an acceptance of the BEDI award. BEDI funds 
shall be obligated for an approved application upon the return of a 
signed acceptance of the award to HUD and a countersignature of that 
acceptance by an authorized HUD official.
2. Award Disbursements and Amendments
    a. Timing of Section 108 Approval and BEDI Grant Disbursements.
    (1) To the extent a full and complete Section 108 application is 
submitted with the BEDI grant application, HUD will evaluate the 
Section 108 application immediately following the competition for BEDI 
grant funds. Note that for those applicants that are granted a waiver 
to the electronic submission process, the 108 application must be 
submitted to the appropriate HUD field office concurrently with 
submission to Headquarters.
    (2) Notwithstanding any earlier obligation or award of BEDI funds 
to a grantee, or execution of a grant agreement, HUD will not permit 
the grantee to draw down BEDI funds before the issuance and at least 
partial funding of the obligations evidencing the related Section 108-
guaranteed loan.
    (3) Pursuant to the Consolidated Appropriations Act, 2005 (under 
the ``Brownfields Redevelopment'' heading) and 31 U.S.C. 1552, FY 2006 
BEDI funds must be obligated (i.e., awarded) by HUD by September 30, 
2007, and must be disbursed by HUD to the grantee by September 30, 
2012. HUD reserves the right, however, to require earlier disbursement 
under a BEDI grant agreement. Accordingly, a BEDI awardee must ensure 
the timely submission of its Section 108 Loan Guarantee application, 
the execution of the Section 108 Contract for Loan Guarantee Assistance 
and BEDI Grant Agreement, and the issuance of the Section 108 Loan 
Guarantee Note.
3. Applicant Debriefing
    Section VI.A. of the General Section provides information on 
applicant requests for a debriefing. Applicants requesting to be 
debriefed must send a written request to the contact person for the 
BEDI program, Mr. William Seedyke, at the address listed in Section VII 
of this NOFA.

B. Administrative and National Policy Requirements

1. Terms and Conditions
    a. Ratio of BEDI to Section 108 Loan Guarantee Funds. Because the 
proposed ratio of BEDI funds to Section 108 funds presented in an 
approved BEDI application represents an applicant's financial 
commitment to a BEDI project, HUD will condition the BEDI grant award 
on the grantee's achievement of that specific ratio. The failure of the 
grantee to meet that condition by obtaining timely HUD approval of a 
commitment for, and issuance of, the required Section 108 guaranteed 
obligations ratio may result in the cancellation and recapture of all 
or a proportionate share of the BEDI grant award.
    b. Approval of Section 108 Loan Guarantee Application and 
Disbursement of Funds. As a condition of any award under this NOFA, if 
the related Section 108 application has not been submitted and approved 
within 10 months of written HUD notification of selection for potential 
funding under this NOFA, HUD may deobligate the BEDI funds. BEDI grant 
awards and grant agreements will contain conditions requiring grantees 
to adhere to time frames mutually agreed on by the applicant/grantee 
and HUD for implementing proposed projects and drawing Section 108 and 
BEDI funds. If BEDI grant funds and Section 108 loan proceeds are not 
disbursed to the applicant within the time frames specified in the BEDI 
grant agreement, HUD reserves the right to cancel the award and 
recapture all or a portion of the BEDI funds, as applicable under the 
grant agreement.
    c. BEDI Application Amendments. Any modifications or amendments to 
an application approved pursuant to this NOFA, whether requested by the 
applicant or by HUD, must be within the scope of the approved original 
BEDI application in all respects material to rating the application, 
unless HUD determines that the revised application remains within the 
competitive range and is otherwise approvable under this NOFA. In 
addition, if the applicant proposes an amendment after the period 
during which appropriated funds are available for obligation (for 
FY2006 BEDI funds, after September 30, 2007), HUD will be unable to 
approve any amendment which materially changes the scope, purpose, or 
need for the original award, as determined by HUD. In such a case, the 
unused BEDI funds must be deobligated and returned to the U.S. 
Treasury.
2. Environmental Justice
    a. Executive Order 12898 (Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations) directs 
federal agencies to develop strategies to address environmental 
justice. Environmental justice seeks to rectify the disproportionately 
high burden of environmental pollution that is often borne by low-
income, minority, and other disadvantaged communities, and to ensure 
community involvement in policies and programs addressing this issue.
    b. HUD expects that projects presented for BEDI funding will 
integrate environmental justice concerns and provide measurable 
economic benefits for affected communities and their current residents 
for the long term.
3. Economic Opportunities for Low- and Very Low-Income Persons (Section 
3)
    Recipients of assistance under this NOFA must comply with Section 3 
of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701 
(Economic Opportunities for Low- and Very Low-Income Persons in 
Connection with Assisted Projects) and the HUD regulations at 24 CFR 
part 135, including the reporting requirements at subpart E. Section 3 
requires recipients to ensure that, to the greatest extent feasible, 
training, employment, and other economic opportunities will be directed 
to low- and very-low income persons, particularly those who are 
recipients of government assistance for housing, and business concerns 
that provide economic opportunities to low- and very low-income 
persons.
4. Other National Requirements
    BEDI applicants are directed to the Section III.C of the General 
Section, which provides the statutory, regulatory, threshold, and 
public policy requirements applicable to all HUD grantees. In 
particular, BEDI applicants should carefully review provisions relating 
to Executive Order 13202 (Preservation of Open Competition and 
Government Neutrality Toward Government Contractors' Labor

[[Page 11884]]

Relations on Federal and Federally Funded Construction Projects) and 
federal laws governing the procurement of recovered materials.

C. Reporting

    CDBG regulations at 24 CFR 570.507 (for metropolitan city and urban 
counties) and 24 CFR 570.491 (for state grantees) require the 
submission of a Consolidated Annual Performance Evaluation Report 
(CAPER) describing the use of CDBG funds during the program year. 24 
CFR 570.3 defines CDBG funds to include BEDI grants, and accordingly, 
grantees must report specifically on the use of BEDI grant funds and 
Section 108 loan guarantee proceeds in the CAPER. CAPER requirements 
for the collection and reporting of racial and ethnic data also apply 
to the use of BEDI and Section 108 guaranteed loan proceeds. These data 
are to be reported in the CAPER using the Race and Ethnic Data 
Reporting form (HUD-27061). For each reporting period, as part of the 
required report to HUD, grant recipients must also include a completed 
Logic Model (form HUD-96010), which identifies output and outcome 
achievements and responses to the management questions.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment statement. HUD will be 
publishing a separate notice on the ROI concept.

VII. Agency Contact

    For technical assistance in completing your registration with 
Grants.gov or in using the electronic application, please contact the 
Grants.gov Support Desk by calling 800-518-GRANTS or by sending an 
email to Grants.gov">Support@Grants.gov. For assistance with program related 
questions, please contact William Seedyke, BEDI Program Coordinator; 
Office of Economic Development; U.S. Department of Housing and Urban 
Development; 451 Seventh Street, SW, Room 7140; Washington, DC 20410; 
telephone (202) 708-3484, extension 4445 (this is not a toll-free 
number). Hearing or speech challenged persons may call the Federal 
Information Relay Service at 800-877-8339 (this is a toll-free number). 
Before the application submission date, HUD staff will be available to 
provide general guidance and assistance about this BEDI NOFA. However, 
HUD staff is not permitted to assist in preparing a BEDI application. 
Following selection of applicants, but before awards are made, HUD 
staff are available to assist in clarifying or confirming information 
that is a prerequisite to the offer of an award by HUD. In addition, 
the Section 108 Loan Guarantee program is not a competitive program and 
therefore is not subject to those provisions of the HUD Reform Act 
pertaining to competitions that do not permit HUD staff to assist in 
the preparation of applications. HUD staff are available to provide 
advice and assistance to develop Section 108 loan applications.

VIII. Other Information

Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2506-0153. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to, a collection of information unless the collection displays 
a current OMB control number. Public reporting burden for the 
collection of information is estimated to average 2000 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 and for the annual report. The information will be used 
for grantee selection and monitoring and the administration of funds. 
Response to this request for information is required in order to 
receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11885]]

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[[Page 11887]]



Youthbuild

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title: Youthbuild.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The OMB approval number is 2506-
0142. The Federal Register number is FR-5030-N-07.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.243, 
Youthbuild Program.
    F. Dates: The application deadline date is on or before June 9, 
2006. Please see the General Section of the SuperNOFA (the General 
Section) for application submission and receipt procedures. Please note 
that this year, all applications must be submitted electronically using 
http://www.grants.gov, as described in Section IV.F of the General 
Section.
    G. Additional Overview Content Information: 1. Purpose of the 
Program. The purpose of the Youthbuild program is to assist 
disadvantaged young adults between the ages of 16 and 24 years of age 
in distressed communities to: (1) Complete their high school education; 
(2) provide on-site construction training experiences which result in 
the rehabilitation or construction of housing for homeless persons and 
low- and very low-income families; (3) foster leadership skills; (4) 
further opportunities for placement in apprenticeship programs; and (5) 
promote economic self-sufficiency for program participants.
    2. Available Funds. Approximately $46,035,000 in appropriated funds 
and carry over is available for Fiscal Year (FY) 2006, plus any funds 
available through recapture, minus any amount needed to correct errors.
    3. Eligible Applicants. Eligible applicants are public or private 
nonprofit organizations that include grassroots community-based 
organizations inclusive of faith-based organizations, state or local 
housing agencies or authorities, state or units of local government, or 
any entity eligible to provide education and employment training under 
other federal employment training programs, as further defined in HUD's 
regulation at 24 CFR 585.4.
    4. Match. None.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    The purposes of the Youthbuild Program are to:
    1. Provide economically disadvantaged young adults with 
opportunities to obtain an educational experience that will enhance 
their employment skills, as a means to achieving self-sufficiency;
    2. Foster the development of leadership skills and commitment to 
community;
    3. Expand the supply of permanent affordable housing for homeless 
and low- and very low-income persons by providing implementation 
grants;
    4. Provide disadvantaged young adults with meaningful on-site 
training experiences in housing construction and rehabilitation that 
will enable them to render a service to their communities by helping to 
meet the housing needs of homeless persons and low-income families; and
    5. Give to the greatest extent possible, job training, employment, 
contracting, and other economic opportunities to low-income young 
adults.

B. Desirable Elements of a Youthbuild Program

    You should document the extent to which HUD's initiatives are 
furthered by the proposed activities including:
    1. Providing increased homeownership and rental opportunities for 
low- and moderate-income persons, persons with disabilities, the 
elderly, minorities, and families with limited English proficiency;
    2. Improving our nation's communities;
    3. Encouraging accessible design features;
    4. Providing full and equal access to grassroots faith-based and 
other community based organizations in HUD program implementation; and
    5. Ending chronic homelessness.

C. Definitions

    1. Rural Area. A rural area is defined in one of five ways:
    a. A non-urban place having fewer than 2,500 inhabitants (within or 
outside of metropolitan areas).
    b. A county or parish with an urban population of 20,000 
inhabitants or fewer.
    c. Territory, including its persons and housing units, in rural 
portions of ``extended cities.'' The Census Bureau identifies the rural 
portions of extended cities.
    d. Open country, which is not part of or associated with an urban 
area. The United States Department of Agriculture (USDA) describes 
``open country'' as a site separated by open space from any adjacent 
densely populated urban area. Open space includes undeveloped land, 
agricultural land or sparsely settled areas but does not include 
physical barriers (such as rivers and canals), public parks, commercial 
and industrial developments, small areas reserved for recreational 
purposes, and open space set aside for future development.
    e. Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    2. Underserved Area. An underserved area is defined as an area 
comprised of census tracts with the following economic distress 
criteria:
    a. A census tract where the unemployment remains high (50 percent 
or more above the nation's unemployment rate) and
    b. A census tract where high rates of poverty (50 percent or more 
above the national average) persist.

II. Award Information

A. Available Funds

    Approximately $ 46,035,000 in funding is made available for this FY 
2006 Youthbuild NOFA, which includes any carry over from previous 
appropriated funds, plus any FY 2006 funds appropriated by Congress, 
plus any funds available through recapture, minus any amount needed to 
correct errors.

B. Authority

    This program is authorized under subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act, as added by section 
164 of the Housing and Community Development Act of 1992 (Pub. L. 102-
550, 106 Stat. 3723, 42 U.S.C. 12899). The Youthbuild Program 
regulations are found in 24 CFR part 585.

C. Funding Categories

    HUD will award up to $ 46,035,000 on a competitive basis. Funds 
will be divided among three categories of grants as described below. 
Pursuant to section 402 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12870), in each fiscal year, the Secretary shall 
reserve five percent of the amounts available for activities for 
technical assistance, as described in section 458 (42 U.S.C. 12899g).
    1. Category 1 Grants. New Applicants. HUD will award up to 
$4,800,000 for new applicants that have not previously received 
implementation grants since

[[Page 11888]]

the inception of the Youthbuild Program and that have elected not to 
apply under Category 2 or 3.
    2. Category 2 Grants. Grants up to $700,000. HUD will award up to 
$37,275,000. Any eligible applicant can apply in Category 2.
    3. Category 3 Grants. Underserved and Rural Areas. HUD will award 
approximately $3,960,000 for grants to organizations serving clients in 
underserved and rural areas as defined in this NOFA.
    4. Selection of Category. You must indicate in your project 
abstract which funding category you are applying for. Category 3 
applicants must designate which definition(s) under Section I.C. is 
(are) applicable.
    5. Grant Period. You must expend funds awarded within 30 months of 
the effective date of the grant agreement.
    6. Maximum Awards. The maximum award for a Youthbuild grant is 
$700,000 for Category 2 grants. The maximum amount of award for 
Categories 1 and 3 grants is $400,000.

III. Eligibility Information

A. Eligible Applicants

    Eligible applicants are public or private nonprofit organizations 
which include grassroots community-based organizations inclusive of 
faith-based organizations, state or local housing agencies or 
authorities, states or units of local government, or any entity 
eligible to provide education and employment training under other 
federal employment training programs as further defined in HUD's 
regulation at 24 CFR 585.4.

B. Cost Sharing or Matching

    No match required.

C. Other

1. Eligible Activities
    a. Work and activities associated with the acquisition, 
architectural design and engineering, rehabilitation or construction of 
housing, as defined in HUD's regulations at 24 CFR 585.305.
    b. Relocation payments and other assistance required to comply with 
HUD's regulation at 24 CFR 585.308;
    c. Costs of ongoing training and technical assistance needs related 
to carrying out a Youthbuild program and in-house staff training;
    d. Education, job training, counseling, employment, leadership 
development services, and optional activities that meet the needs of 
the participants including entrepreneurial training, driver education, 
apprenticeship opportunities, financial literacy, credit counseling, 
and assistance programs for those with learning disabilities;
    e. Outreach to potential participants;
    f. Wages, benefits, and need-based stipends for participants; and
    g. Administrative costs must not exceed eight percent of the grant 
award, as required by the FY 2006 Consolidated Appropriations Act. HUD 
encourages you to use grant funds for outreach, recruitment, training, 
and other services for the participants that facilitate program 
implementation. Please refer to HUD's regulation at 24 CFR 585.305 for 
further details on eligible activities.
2. Threshold Requirements
    All applicants must comply with the threshold requirements defined 
in the General Section and the requirements listed below to receive an 
award. Applications that do not meet these requirements will be 
considered ineligible for funding.
    a. Eligible Participants. Participants in a Youthbuild program must 
be very low-income high school dropouts between the ages of 16 and 24, 
inclusive, at the time of enrollment. Up to 25 percent of participants 
may be above very low-income, or may be high school graduates (or 
equivalent), but must have educational needs (such as lack of reading, 
writing, and communication skills) that justify their participation in 
the program.
    b. Youthbuild Program Components. Applications that receive 
assistance under this program must contain the three components 
described as follows:
    (1) Educational and job training services;
    (2) Leadership training, counseling, and other support activities; 
and
    (3) On-site training through actual housing rehabilitation and/or 
new construction work.
    c. Identification of and Access to Property. Your application must 
identify the location of the site(s) or property(ies) (e.g., addresses, 
parcel numbers, etc.) that will be used for on-site construction. Your 
application MUST contain a letter from the property owner or property 
management company or companies allowing access to the housing site(s) 
for on-site construction training. HUD will deem ineligible any 
application that fails to specifically identify the location of the on-
site construction, including evidence of site access. Guidance on 
evidence of site access is as follows:
    (1) If the applicant has a contract or option to purchase the 
property, you should include a copy of the contract or option; and
    (2) If a third party owns the property or has a contract or option 
to purchase, that third party must provide a letter to you stating the 
nature of the ownership and specifically providing you with access to 
the property for the purposes of the program and the time frame in 
which the property will be available. In the case of a contract or 
option, include a copy of the document.
    d. Minimum Score. In order to be considered eligible for funding, 
your application must receive a minimum score of 75, including a 
minimum of 10 points in Factor 1.
    e. DUNS Requirement. Refer to the General Section for information 
regarding the DUNS requirement. You will need to obtain a DUNS number 
to submit your application on line using http://www.grants.gov and to 
receive an award from HUD.
    f. Civil Rights Threshold Requirement. Applicants must meet all of 
the applicable threshold requirements of Section III.C.2.c of the 
General Section regarding Fair Housing and Civil Rights laws, statutes, 
regulations and Executive orders as enumerated in 24 CFR 5.105(a).
    g. Potential Environmental Disqualification. HUD reserves the right 
to disqualify an application where one or more environmental thresholds 
identified in the instructions section of the Youthbuild NOFA located 
at http://www.hud.gov/offices/adm/grants/fundsavail.cfm are exceeded if 
HUD determines that it cannot conduct the environmental review and 
satisfactorily complete the review within the HUD application review 
period. (See 24 CFR 585.307.) You must indicate, as part of your 
application package if your project will, or will not, include 
construction, rehabilitation, leasing or acquisition activities that 
will require an environmental compliance review as detailed in the 
instructions section of the Youthbuild NOFA. Environmental thresholds 
that are explained in the instructions section require that forms 
2C13a, 2C13b, or 2C13c and 2C15 be completed if you are proposing 
construction, rehabilitation, leasing or acquisition activities with 
HUD funds.
    h. Consistency with Consolidated Plan. You must provide the 
required certification that the proposed activities are consistent with 
the HUD-approved Consolidated Plan in accordance with 24 CFR part 91.
    i. If you have received a Youthbuild grant and it is greater than 
24 months old and you have not drawn down at least 50 percent of the 
total HUD grant funds as of the application submission date for this 
NOFA, you will not be eligible to receive a FY 2006 Youthbuild grant.

[[Page 11889]]

3. Program Requirements
    In addition to the program requirements listed below, applicants 
must comply with the program requirements in Section III.C of the 
General Section.
    a. Locational Limitations. You may submit more than one application 
in the current competition if your program's participant recruitment 
and housing areas are in different jurisdictions. Each application you 
submit may only propose activities to carry out one Youthbuild program, 
i.e., to start a new Youthbuild program or to fund new classes of 
Youthbuild participants for an existing program.
    b. Site Selection. In determining the site or the location of a 
federally assisted facility, you may not select sites that will exclude 
or have the effect of excluding qualified persons with disabilities, or 
otherwise subject them to discrimination.
    c. New Construction, Substantial Alterations, or Other Alterations. 
If you undertake New Construction, Substantial Alterations, or Other 
Alterations, it must conform to the accessibility standards outlined in 
the regulations implementing the Rehabilitation Act of 1973 at 24 CFR 
part 8, specifically Sec. Sec.  8.22, 8.23(a) and Sec.  8.23(b). In 
addition, if you undertake construction of multifamily housing with 
four or more dwelling units, you must also meet the design and 
construction requirements of the Fair Housing Act. See 24 CFR part 100, 
at Sec.  100.205.
    d. Training Requirement. Each program must be structured so that 50 
percent of each participant's time is spent in on-site training and the 
other 50 percent in educational training.
    e. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Section 3 of the Housing and Urban Development Act of 
1968, (12 U.S.C. 1701u) is applicable. Section 3 requires recipients to 
ensure that, to the greatest extent feasible, training, employment, and 
other economic opportunities will be directed to low- and very-low 
income persons, particularly those who are recipients of government 
assistance for housing, and business concerns which provide economic 
opportunities to low- and very low-income persons. The regulations are 
at 24 CFR part 135.
    f. Participation in Local Workforce Investment Act One-Stop Center. 
Youthbuild grantees are mandatory partners in one-stop centers 
authorized by the Workforce Investment Act of 1998 (Pub.L. 105-220).
    g. First time applicants. If you are a first-time applicant 
applying for funding under Category 1, you must have a graduating class 
of not more than 20 participants.
    h. Environmental Reviews. Environmental procedures apply when you 
propose to use Youthbuild funds to cover any costs for the lease, 
acquisition, rehabilitation, or new construction of real property 
proposed for housing development costs. Environmental procedures do not 
apply to your application when you propose to use Youthbuild funds 
solely to cover costs for classroom and/or on-the-job construction 
training and support services.
    You must indicate, as part of your application package if your 
project will, or will not, include construction, rehabilitation, 
leasing or acquisition activities that will require an environmental 
compliance review as detailed in the instructions section at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. If your project is 
subject to an environmental compliance review, you must submit the 
relevant information in the required forms as part of your application 
package to facilitate HUD's decisionmaking in accordance with the 
environmental procedures and standards set forth in HUD's regulation at 
24 CFR 585.307. The Website link contains the detailed description and 
relevant forms of all environmental laws and rules that apply--the 
National Environmental Policy Act, the National Historic Preservation 
Act, the Clean Water and Clean Air Acts, the Endangered Species Act, 
the Scenic Rivers Act, national floodplain and wetland policies, 
national flood insurance requirement, Coastal Barriers Resource Act, 
and HUD noise and explosive hazards policies.

IV. Application and Submission Information: (See the General Section)

A. Addresses To Request Application Package

    There is no application kit for the FY2006 Youthbuild NOFA. This 
NOFA clearly describes the requirements for completing a successful 
application and all forms and certifications needed to complete your 
application are included in the General and Youthbuild Sections of the 
SuperNOFA, which can be downloaded from http://www.Grants.gov/Apply.

B. Content and Form of Application Submission

    Be sure to read the application submission instructions in the 
General Section and below carefully.
1. Response to NOFA Page Limitation
    The narrative responses to all factors identified in Section V of 
this NOFA must not exceed 15 single sided pages of text based on an 8.5 
by 11 inch paper, using a standard 12 point font, with lines double-
spaced. Submitting pages in excess of the page limit will not 
disqualify your application. However, HUD will not review or consider 
information on any excess pages.
2. Application Items
    Your application must contain the items listed below including the 
standard forms, certifications, and assurances listed in the General 
Section that are applicable to this funding. The standard forms and the 
program specific forms or information needed to evaluate your 
application can be found at Grants.gov or http://www.hud.gov. General 
letters of support not associated with specific cash or in-kind 
commitments have no bearing on the rating of your application.

----------------------------------------------------------------------------------------------------------------
          What to submit                Required content       Required form or format       When to submit
----------------------------------------------------------------------------------------------------------------
Project abstract.................  Category applying for (if  Narrative...............  Application deadline
                                    Category 3, specify                                  date.
                                    which definition(s)
                                    under ``rural and
                                    underserved'' is(are)
                                    applicable); Amount of
                                    funds requested;
                                    Location of project,
                                    including census
                                    tract(s); Number of
                                    participants to be
                                    trained; Number of
                                    houses to be
                                    constructed; Number of
                                    houses to be rehabbed;
                                    Major partners.
Application......................  .........................  SF-424..................  Application deadline
                                                                                         date.

[[Page 11890]]

 
Survey on Ensuring Equal           .........................  SF-424 supplement.......  Application deadline
 Opportunity for Applicants.                                                             date.
Budget information...............  Total Youthbuild Grant     Youthbuild Form 4A (HUD-  Application deadline
                                    Budget.                    40211.6).                 date.
Rating Factors: Narrative          Described in Section V of  Narrative and Youthbuild  Application deadline
 addressing 5 rating factors.       this announcement.         Form 4B (HUD-40211.7).    date.
Non-Housing Program Resources and  Described in Section V of  Youthbuild Form 4B (HUD-  Application deadline
 accompanying letters of            this announcement.         40211.7).                 date.
 commitment for non-housing
 program resources.
Logic Model Form.................  Described in Section V of  HUD-96010...............  Application deadline
                                    this announcement and                                date.
                                    form instructions.
Applicant/Recipient Disclosure/    Required for all           HUD-2880................  Application deadline
 Update Form.                       applicants.                                          date.
Disclosure of Lobby Activities     Required if applicant has  SF-LLL (use SF-LLL-A      Application deadline
 (if applicable).                   lobbied.                   Continuation Sheet if     date.
                                                               needed).
Certification of Consistency with  If applying for RC/EZ/EC   HUD-2990................  Application deadline
 RC/EZ/EC-II Plan.                  Round II bonus points.                               date.
Certification of Consistency with  Required.................  HUD-2991................  Application deadline
 Consolidated Plan.                                                                      date.
Acknowledgment of Application      Optional if applicant has  HUD-2993................  Application deadline
 Receipt.                           been granted a waiver of                             date.
                                    the mandatory electronic
                                    submission and is
                                    submitting a paper
                                    application.
You Are Our Client Grant           Optional, to help HUD      HUD-2994-A..............  Application deadline
 Applicant Survey.                  improve its NOFA process.                            date.
----------------------------------------------------------------------------------------------------------------
                  Youthbuild Program Specific Forms/information (required for all applications)
----------------------------------------------------------------------------------------------------------------
Exhibit 2C (Housing Site           .........................  HUD-40211...............  Application deadline
 Description).                                                                           date.
Exhibit 2C10 (Individual Housing   .........................  HUD-40211.1.............  Application deadline
 Project Site) Estimate.                                                                 date.
Accompanying letters of            .........................  ........................  Application deadline
 commitment to cover costs of                                                            date.
 lease, acquisition,
 rehabilitation or new
 construction of real property
 Site Access Letter(s).
----------------------------------------------------------------------------------------------------------------
  Youthbuild Program Specific Forms (only if applicant proposes to use Youthbuild funds for lease, acquisition,
                              rehabilitation, or new construction of real property)
----------------------------------------------------------------------------------------------------------------
Exhibit 2C13a (Housing Project     .........................  HUD-40211.2.............  Application deadline
 Certifications for Residential                                                          date.
 Rental Units.
Exhibit 2C13b (Housing Project     .........................  HUD-40211.3.............  Application deadline
 Certifications for Transitional                                                         date.
 Housing).
Exhibit 2C13c (Housing Project     .........................  HUD-40211.4.............  Application deadline
 Certifications for                                                                      date.
 Homeownership).
Exhibit 2C15 (Environmental        .........................  HUD-40211.5.............  Application deadline
 Threshold Information for a                                                             date.
 Property Proposed for YB
 Funding).
Questionnaire for HUD's            .........................  HUD-27300...............  Application deadline
 Initiative on Removal of                                                                date.
 Regulatory Barriers.
Facsimile Transmittal............  To be used when            HUD-96011...............  On or before the
                                    submitting third party                               application deadline
                                    letters or other                                     date.
                                    documents that you
                                    cannot attach as an
                                    electronic file to your
                                    application.
----------------------------------------------------------------------------------------------------------------

C. Submission Dates and Times

    Applications must be received and validated by Grants.gov no later 
than 11:59:59 p.m. Eastern time on the application deadline date of 
June 9, 2006. HUD must receive paper copy applications from applicants 
that received a waiver no later than 11:59:59 p.m. on the application 
deadline date. See the General Section for application submission and 
timely receipt procedures.

D. Intergovernmental Review

    The Youthbuild program is subject to Intergovernmental Review under 
Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.'' See the General Section for further discussion of the 
Executive

[[Page 11891]]

Order and HUD's implementing regulations.

E. Funding Restrictions

    Administrative costs must not exceed eight percent of the grant 
award.

V. Application Review Information

    The factors for rating and ranking applicants are provided below. 
The maximum number of points for the program is 102. This includes two 
bonus points, as described in Section V. F below.

A. Rating Factor 1. Capacity of the Applicant and Relevant 
Organizational Experience (20 Points, Minimum 10 Points)

    This factor addresses the qualifications and experience of the 
applicant and participating parties to implement a successful 
Youthbuild program in accordance with your work plan as further 
described in Factor 3. HUD will evaluate information provided 
documenting recent capability. Experience within the last 5 years is 
considered recent. HUD will take into account the applicant's past 
performance and may deduct points for previous inability to demonstrate 
performance. HUD will evaluate the following sub-factors:
    1. Team Member Composition and Experience (5 points). Your 
experience and the experience of your project director, core staff 
competencies including your day-to-day program manager, consultants, 
and contractors. You must demonstrate that your program manager has the 
background, experience, and capacity to implement all of the program 
components of the proposed work plan, as evidenced by recent work 
experience in managing projects of the same or similar size, dollar 
amount, types of activities, and beneficiaries as those proposed in 
your work plan. If any gaps exist in your experience or organizational 
structure to carry out the program, describe how you will fill those 
gaps including the hiring of consultants or other outside parties.
    2. Organizational Structure (5 points). You should provide a clear 
description of how your organizational structure will operate to carry 
out your work plan. You should describe the structure of your 
organization (include an organizational chart), management structure, 
including reporting relationships of key staff, a system for 
coordinating with outside contractors or third party service providers, 
a mechanism for an internal and external auditing relationship, in 
accordance with OMB Circular (No. A-133), ``Audits of State and Local 
Governments and Non-Profit Organizations,'' and an accounting system 
which meets federal accounting system requirements.
    3. Achievement of Performance Outcomes (10 points). The objectives 
and accomplishments of your past experience in conducting similar 
activities. You must describe your past project objectives and 
accomplishments that are similar to those of your proposed work plan to 
show your effectiveness and timeliness in managing similar projects. If 
you have received similar grants including previous Youthbuild grants, 
you must describe the effectiveness of your administration, including 
timeliness and meeting performance results from performance reports. In 
addressing timeliness of reports, you must compare when your reports 
were due with when they were actually submitted. You must describe your 
achievements, including specific measurable outcome objectives: Number 
of youths recruited, trained, and received GEDs; number of youths 
obtaining jobs (i.e., those that are a part of a career path or 
apprenticeship program) and job retention statistics; number of youths 
participating in apprenticeships and number of housing units 
rehabilitated or constructed and made available for low- and very low-
income persons. Previously generated outcomes should include the 
following: (1) Percent that entered employment or enrolled in education 
and/or training first quarter after program exit, (2) percent of 
participants that earned a diploma, GED, or certificate, (3) percent 
that have attained literacy and numeracy skills by participants, (4) 
annual cost per participant.
    Also, you must describe the extent to which you or participating 
partners have been successful in past education, training and 
employment programs and activities, including federally funded 
Youthbuild programs. In applying the rating criteria, HUD will take 
into consideration your performance (including meeting target dates and 
schedules) as reported.
    The more recent, relevant, and successful the experience of the 
proposed team members, organization and other participating entities in 
relation to the work plan, the greater the number of points you will 
receive. For previous and existing Youthbuild grantees, applicants that 
can demonstrate a closer and greater linkage between the expected 
outcomes and the previously generated outcomes will receive a higher 
score for this Factor. Applicants that have been slow to draw funds and 
therefore appear not to be making progress in completing their program 
activities will receive lower rating points than applicants that have a 
pattern and practice of drawing funds in a timely manner consistent 
with timely progress in meeting program activity goals and objectives.

B. Rating Factor 2: Need/Extent of the Problem (21 Points)

    This Factor addresses the extent to which there is need for funding 
the proposed activities based on levels of distress and an indication 
of the urgency of meeting the need/distress in the applicant's target 
area. Applications will be evaluated on the extent to which the level 
of need for the proposed activity and the urgency in meeting the need 
are documented and compared to the target area and national data.
    1. HUD will consider current levels of distress for the area (i.e., 
Census Tract(s) or Block Groups) immediately surrounding the project 
site or the target area to be served by the proposed project, and in 
the nation. This means that an application that provides data that show 
levels of distress in the target area expressed as a percent greater 
than the national average will be rated higher.
    Notwithstanding the above, an applicant proposing a project to be 
located outside the target area could still receive points under the 
Distress Factor if a clear rationale and linkage is provided linking 
the proposed project location and the benefits to be derived by persons 
living in more distressed area(s) of the applicant's target area.
    2. Applicants should provide data that address indicators of 
distress, as follows:
    a. Poverty (5 points)--data should be provided in both whole 
numbers and percentages for the target area(s); an application that 
compares the local poverty rate in the following manner to the national 
average at the time of submission will receive points under this 
section as follows:

(1) Less than the national average--0 point
(2) Equal to but less than twice the national average--1 point
(3) Twice but less than three times the national average--3 points
(4) Three or more times the national average--5 points

    b. Unemployment (5 points)--for the project area;

(1) Less than the national average--0 point
(2) Equal to but less than twice the national average--1 point
(3) Twice but less than three times the national average--2 points
(4) Three but less than four times the national average--3 points

[[Page 11892]]

(5) Four but less than five times the national average--4 points
(6) Five or more times the national average--5 points

    c. High School Dropouts (8 points)--for the project area;

(1) Less than the national average--0 point
(2) Equal to but less than twice the national average--2 points
(3) Twice but less than three times the national average--4 points
(4) Three but less than four times the national average--6 points
(5) Four but less than five times the national average--7points
(6) Five or more times the national average--8 points

    d. Concrete examples of social and/or economic decline that best 
capture the applicant's local situation (3 points). Examples that could 
be provided are information on the community's stagnant or falling tax 
base, including recent commercial or industrial closings, housing 
conditions, such as the number and percentage of substandard and/or 
overcrowded units, rent burden (defined as average housing cost divided 
by average income) for the target area and urgency in addressing 
problems facing youth, local crime statistics, etc.
    3. When rating applications HUD reserves the right to consider 
sources of available objective data, such as the U.S. Census, in 
addition to those provided by applicants, and to compare such data to 
those provided by applicants and local crime statistics for the project 
site.
    HUD requires use of sound and reliable data (e.g., U.S. Census 
data, state statistical reports, university studies/reports that are 
verifiable) to support distress levels cited in each application. A 
source for all information including the publication or origination 
date must be provided. Updated Census data are available as follows for 
the listed indicators: a. Unemployment rate--estimated monthly, with a 
two-month lag; b. High School Dropout rate using the status rate--2000 
data; c. Poverty rate--2000 Census data at the tract level.

C. Rating Factor 3: Soundness of Approach (37 Points)

    This Factor addresses your proposed workplan and budget and the 
extent to which your proposed program is coordinated with other ongoing 
and related activities in the area you propose to serve and how well 
your program outcomes result in increased independence and empowerment 
to your beneficiaries at the conclusion of the grant period. HUD will 
evaluate the extent to which your application meets the following 
elements:
    1. Youthbuild Program Work Plan: For each component, HUD will 
consider the overall quality and feasibility of your proposed work plan 
and budget that must be consistent with the Youthbuild program as 
measured by your specific activities and outcomes. You will receive a 
greater number of points if the program components are consistent with 
the purpose of the Youthbuild program, your project goals and the 
resources provided. Letters describing specific resources or services 
to be contributed by non-applicant organizations must be included in 
your application.
    Specifically, HUD will consider the following categories when 
assessing your proposed work plan:
    a. Program Components. (15 points)
    (1) Outreach strategy, recruitment strategy, and selection 
activities. Points will be awarded based upon overall quality and 
feasibility of the outreach, recruitment and selection activities, the 
number and types of outreach activities, number of youths to be 
recruited including eligible participants who are harder to reach and 
comprehensiveness of the local selection process.
    In evaluating this category, HUD will consider your selection 
strategies and your specific outreach efforts to recruit or contact:
    (a) Potential eligible participants who are unlikely to be aware of 
this program (because of race, color, national origin, religion, 
ethnicity, sex, or disability);
    (b) Young women, young women with dependent children, and persons 
receiving public assistance; and
    (c) Public agencies, courts, homeless shelters, local school 
systems, local workforce development systems, one-stop centers and 
community-based organizations, etc.
    (2) Educational and job training services and activities. Points 
will be awarded based upon the qualifications of instructors and 
proposed wages and stipends for youth participants. In evaluating this 
category, HUD will consider:
    (a) The types of in-class academic and vocational instruction you 
will provide;
    (b) The number and qualifications of program instructors and ratio 
of instructors to participants;
    (c) Scheduling plan for classroom and on-the-job training needed to 
meet program requirements and ensure timely completion of your program; 
and
    (d) Reasonable payments to participants of wages, stipends, and 
incentives. Wages or stipends for on-site construction training must be 
at least federal minimum wage.
    (3) Leadership development. Points will be awarded based upon your 
proposed leadership curriculum, qualifications of instructors, and the 
impact of the proposed leadership activities on the target area. You 
must describe the leadership development training you will offer to 
participants and strategies for providing the training to build group 
cohesion and peer support.
    (4) Support services. You must assess the need for counseling and 
referral services during each stage of program implementation: Outreach 
strategy, recruitment strategy, youths interviewed and not selected for 
the program, program participants, youths who drop out of the program, 
and graduates of the program. Describe how the participant needs will 
be addressed, document counseling and referral services to be offered 
to participants, the type of counseling, social services, and/or need-
based stipends you will provide.
    (5) Follow-up assistance and support activities to program 
graduates. You must describe the type of proposed assistance and 
support which should be based upon an assessment of the needs of the 
program graduates and should include continued linkage to the local 
Youthbuild program, counseling, and social service referral services.
    (6) On-site training. Points will be awarded based upon the 
experience of proposed instructors, number of youth to be trained, and 
wages or stipends for participants. HUD will consider:
    (a) The housing construction or rehabilitation activities 
participants will undertake at the site(s) to be used for the on-site 
training component of the program as provided in the training 
curriculum and methodology for carrying out on-site training;
    (b) Qualification and number of on-site supervisors;
    (c) Ratio of trainers to participants;
    (d) Number of participants per site; and
    (e) Amounts, wages, and/or stipends you will pay to participants 
during on-site work. Amounts must be at least federal minimum wage.
    b. Strategy for Job Placement. (2 points).
    (1) For applicants that have not received a prior Youthbuild award. 
HUD will evaluate the quality and feasibility of your proposed strategy 
to place youth participants in permanent jobs. You will be rated on the 
following factors: (a) Proposed number of youth to obtain jobs that 
promote economic self-sufficiency (i.e., those that are a part of 
career paths or apprenticeship programs); (b) proposed number of youths 
who will continue post-

[[Page 11893]]

secondary or secondary education; and (c) proposed number of youths to 
receive entrepreneurship training.
    (2) For Youthbuild grantees who have grants that are at least 24 
months old. In addition to the information in section V.C.2.b(1) above, 
provide the actual number of program participants that met each 
criterion in section V.C.2.b(1)(a), V.C.2.b(1)(b) and V.C.2.b(1)(c) as 
a percent of the total program participants served.
    2. Coordination Elements:--5 points as distributed below.
    a. Coordination of activities (2 points). The extent to which you 
have coordinated your activities with other known organizations that 
are not directly in your proposed work activities, but with which you 
share common goals and objectives and are working toward meeting these 
objectives in a holistic and comprehensive manner. The goal of 
coordination is to ensure that programs do not operate in isolation. 
The more your activities are coordinated with other agencies in your 
service area, the more points you will receive. An example of 
coordination of activities would be the applicant's partnership with an 
existing child day care facility (which is not funded by program) that 
provides day care services to the Youthbuild participants during the 
hours they are being trained.
    b. Self-Sufficiency (1 point). Describe how your program will 
provide participants the ability to achieve: Independent living, 
economic empowerment, educational opportunities, housing choice or an 
improved environment that is free from environmental hazards such as 
lead hazards, brownfields, overcrowded housing, etc.
    c. Sustainability (2 points). For applicants that have not received 
a prior Youthbuild award, describe how your program will be financially 
self-sustaining by decreasing dependence on Youthbuild funding and 
relying more on state, local, and private funding so your activities 
can be continued after your grant award is complete. For previous 
Youthbuild grantees, describe how your program demonstrates a 
progression of reduced reliance on HUD's Youthbuild funds, as either a 
reduced Youthbuild grant amount or increased overall program level with 
Youthbuild as a declining share of the total.
    c. Housing Program Priority (10 points). HUD will assign Housing 
Program Priority points to all applications that contain evidence that 
housing resources from other federal, state, local, or private sources 
are available and firmly committed to cover all costs, in full, for the 
following housing activities for the proposed Youthbuild program: 
Acquisition, architect and engineering fees, construction, and 
rehabilitation. Forms 2C, Housing Site Description, and 2C10, 
Youthbuild Grant Individual Housing Project Site Estimate, must be 
completed to receive the Housing Program Priority points. Applications 
that do not include proper documentation of firm financial commitments 
of non-Youthbuild resources or propose to use Youthbuild grant funds, 
in whole or in part, or do not evidence site control, for any one of 
the housing activities listed above will not receive housing program 
priority points. For an applicant to receive the housing program 
priority points, each letter of commitment to cover the costs of the 
above activities must include the following:
    (1) The organization's name;
    (2) The applicant's name;
    (3) The proposed program;
    (4) The proposed amount of commitment and which housing 
activity(ies) (i.e., acquisition, architect and engineering fees, 
construction, and rehabilitation) the commitment represent(s);
    (5) A signature by an official of the organization legally able to 
make commitments on behalf of the organization with a statement 
confirming that the authority remains in effect for a period stated in 
the commitment;
    (6) If the contribution is cash, the applicant, the applicant's 
partner(s) or contributing entity must evidence its financial 
capability through a corporate or personal financial statement or other 
appropriate means. If any portion of the committed activity is to be 
financed through a lending institution, the participant must evidence 
the institution's commitment to fund the commitment;
    (7) Affirm that its investment is contingent only upon receipt of 
FY2006 Youthbuild funds and state a willingness on the part of the 
signatory to sign a legally binding commitment not earlier than the 
date this NOFA is published and (conditioned on HUD's environmental 
review and approval of a property, where applicable) upon award of the 
grant.
    d. Policy Priorities (5 points). Policy Priorities are further 
defined in the General Section. Applicants should document the extent 
HUD's policy priorities for Youthbuild listed below are enhanced by the 
proposed activities. Applicants that include activities that can result 
in the achievement of these departmental policy priorities, will 
receive higher rating points. The four departmental policy priorities 
for Youthbuild are:
    (1) Ending chronic homelessness (1 point);
    (2) Removal of regulatory barriers to affordable housing (up to 2 
points) You must complete Form HUD-27300, Questionnaire for HUD's 
Initiative on Removal of Regulatory Barriers and provide the requested 
documentation to receive points for this policy priority. See the 
General Section for a discussion of how points are allocated.
    (3) Participation in Energy Star (1 point). Applicants must state 
how they incorporate this priority into their application in order to 
receive the one point.
    (4) Encouraging Accessible Design Features--Visitability and 
Universal design. (1 point). Applicants must state the extent to which 
the proposed design incorporates visitability standards and universal 
design in projects involving construction or rehabilitation. See the 
General Section for further information about this policy priority.

D. Rating Factor 4: Leveraging of Non-Housing Resources (10 Points)

    This Factor addresses the ability of the applicant to secure non-
housing resources from its program partners. HUD will evaluate the 
extent to which firm commitments of resources are obtained from 
federal, state, local, private, and nonprofit sources. The applicant 
will receive points based upon the ratio of committed non-HUD resources 
for non-housing activities compared to the amount of Youthbuild funds 
requested in the application. (Exhibit 4B Non-Housing Program Resources 
must be completed and you must provide letters of firm commitment from 
the donor with the amount of cash or in-kind contribution). Applicants 
submitting letters of commitment without the Exhibit 4 completed will 
not receive points for this Rating Factor. Each commitment described on 
Exhibit 4B for this Factor must have a firm commitment letter. In 
addition, the amount of the commitment in each letter must match the 
amount listed on the Form 4B.
    HUD will consider the level of resources obtained for cash or in-
kind contributions to cover the following kinds of areas:
     Social services (i.e., counseling and training);
     Use of existing vocational, adult, and bilingual 
educational courses;
     Donation of labor, resource personnel, supplies, teaching 
materials, classroom, and/or meeting space.

[[Page 11894]]

    1. Firm commitment for non-housing resources. Each letter of 
commitment to cover the costs of the above activities must include the 
following:
    a. The organization's name;
    b. The applicant's name;
    c. The proposed program;
    d. The proposed amount of commitment and which non-housing 
activity(ies) the commitment represent(s);
    e. A signature by an official of the organization legally able to 
make commitments on behalf of the organization with a statement 
confirming that the authority remains in effect for a period stated in 
the commitment;
    f. An affirmation that its investment is contingent only upon 
receipt of FY2005 Youthbuild funds and a statement of willingness on 
the part of the signatory to sign a legally binding commitment not 
earlier than the date this NOFA is published.
    2. Resources from other federal, state, local governments, or 
private entities. HUD encourages use of existing federal, state, local 
governments, or private and nonprofit housing programs as part of your 
Youthbuild program. In addition, HUD encourages use of other non-
Youthbuild funds available for vocational, adult, and bilingual 
education programs, or for job training under the Workforce Investment 
Act and the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996 (48 U.S.C. 1601 et seq.).

E. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points)

    This factor emphasizes HUD's commitment to ensure that applicants 
keep promises made in their application to rigorously assess their 
performance and ensure performance goals are met. Achieving results 
means you, the applicant, have clearly identified the benefits, or 
outcomes of your program. Outcomes are ultimate goals. Performance 
indicators are the quantifiable measures of proposed and actual 
achievements. Benchmarks or outputs are interim activities or products 
that lead to the ultimate achievement of your goals. Performance 
measurement requires that you identify program outcomes, interim 
products or benchmarks, and performance indicators that will allow you 
to assess your performance. Performance indicators must be quantified 
and measure actual achievements against anticipated achievements. You 
should identify what you are going to measure, how you are going to 
measure it, and the steps you have in place to make adjustments to your 
work plan if performance targets are not met within established 
timeframes. Applicants are required to complete the Logic Model form 
HUD-96010 to receive any points under this factor. This rating factor 
reflects HUD's goal to embrace high standards of ethics, management and 
accountability.
    The highest rated applications under this factor will have a clear 
plan with measurable performance indicators to address the Youthbuild 
program's outcome goals--to provide economically disadvantaged youth 
with opportunities to attain an educational experience that will 
enhance their employment skills as a means of achieving self-
sufficiency. The application may also optionally address other related 
indicators of relevant outcomes.
    At a minimum, your Logic Model must include the following program 
output measures:
     Number of participants enrolled in the program;
     Number of participants that graduate;
     Number of housing units constructed;
     Number of housing units rehabilitated;
     Number and percent of GEDs or certificates attained by 
participants (for percentage calculation, numerator: the number of 
participants who attain a diploma, GED or certificate; denominator: 
Those who are participating in the Youthbuild program).
     Number and percent of graduates placed in employment or 
education (for percentage calculation, numerator: The number of 
graduates who have entered employment or enrolled in post secondary 
education; denominator: the number of graduates from the Youthbuild 
program); and
     Number and percentage of participants who made literacy 
and numeracy gains (measures the increase in literacy and numeracy 
skills of participants through a common assessment tool administered at 
program registration and regular intervals thereafter); for percentage 
calculation, numerator: the number of Youthbuild program participants 
who increase one or more education functioning levels; denominator: the 
number of Youthbuild program participants who have completed a year in 
the program).
     Efficiency or annual cost per participant (numerator: 
grant amount; denominator: number of Youthbuild participants.)
    An applicant should agree to cooperate with any HUD-approved 
evaluation by making staff available for interview, providing lists of 
participants and their contact information, and making available files 
under appropriate assurance of confidentiality of records.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment statement. HUD will be 
publishing a separate notice on the ROI concept.

F. Bonus Points (2 Points)

    HUD will award two bonus points to each application that includes a 
valid form HUD-2990 certifying that the proposed activities/projects in 
the application are consistent with the strategic plan for an 
empowerment zone (EZ) designated by HUD or the United States Department 
of Agriculture (USDA), the tax incentive utilization plan for an urban 
or rural renewal community designated by HUD (RC), or the strategic 
plan for an enterprise community designated in round II by USDA (EC-II) 
and that the proposed activities/projects will be located within the 
RC/EZ/EC-II identified above and are intended to serve the residents. A 
listing of the RC/EZ/EC-IIs is available on the Internet at http://www.hud.gov/cr. Your application must contain the completed 
certification form HUD-2990 to be considered for RC/EZ/EC-II bonus 
points.

VI. Reviews and Selection Process

A. Rating and Ranking

    1. General. To review and rate applications, HUD may establish 
panels including officials from other federal agencies and outside 
experts or consultants to obtain certain expertise and outside points 
of view.
    2. Rating. All applications for funding will be evaluated against 
the rating factors described in Section V. of this NOFA.
    3. Ranking. Applications will be ranked separately within each of 
the three funding categories. Applications will be selected for funding 
in accordance with their rank order in each category.
    4. Eligibility for Selection. To be eligible for funding, an 
application must have an overall minimum score of 75 points, including 
a minimum score of 10 points in Factor 1. If two or more applications 
are rated fundable and have the same score, but there are insufficient 
funds to fund all of them, HUD will select the application(s) with the 
highest score for Rating Factor 3 (Soundness of Approach). If two or 
more applications still have the same score, the highest score in the 
following factors will be selected sequentially

[[Page 11895]]

until one highest score can be determined: Rating Factor 1 (Capacity of 
the Applicant and Relevant Organization); Rating Factor 4 (Leveraging 
of Resources) and Rating Factor 2 (Need/Extent of the Problem).
    5. Adjustments to Funding. Any available funds that remain after 
all applications within funding range have been selected or obligated 
will be reallocated between categories 1 and 2 by rank order between 
applications at the discretion of the selecting official or designee. 
Category 3 funds are appropriated as a set-aside, and can not be 
reallocated.
    6. Corrections to Deficient Applications. The General Section 
provides the procedures for corrections to deficient applications.

B. Anticipated Announcement and Award Dates

    HUD anticipates making award announcements no later than four 
months after the application submission deadline date.

VII. Award Administration Information

A. Award Notices

    1. Notification of Approval or Disapproval. HUD will notify you 
whether or not you have been selected for an award. If you are 
selected, HUD's notice to you of the amount of the grant award based on 
the approved application will constitute HUD's CONDITIONAL approval, 
subject to negotiation and execution of the grant agreement by HUD.
    2. Application Debriefing. Applicants who wish to have a debriefing 
of their application must send a written request to: Youthbuild Program 
Office; Office of Economic Development; Office of Community Planning 
and Development; 451 Seventh Street, SW., Room 7136; Washington, DC 
20410-7000. Debriefing information can be found in the General Section 
of the SuperNOFA.

B. Administrative and National Policy Requirements

    1. Applicable OMB Circulars. Please refer to the General Section.
    2. Applicable Executive Orders and Statutes. Please note that 
Executive Order 13202, ``Preservation of Open Government Neutrality 
Towards Government Contractors' Labor Relations on Federal and 
Federally Funded Construction Contracts'' and Section 6002 of the Solid 
Waste Disposal Act covering the procurement of recovered materials may 
be applicable (see the General Section.)
    3. Executive Order 13166, Improving Access To Services For Persons 
With Limited English Proficiency (LEP). Consistent with Executive Order 
13166, ``Improving Access to Services for Persons with Limited English 
Proficiency,'' issued on August 11, 2000, all HUD recipients should 
take reasonable steps to provide certain materials and information 
available in languages other than English. The determination as to what 
materials, languages, and modes of translation/interpretation services 
should be used shall be based upon:
    a. The specific needs and capabilities of the LEP populations among 
the award recipient's program beneficiaries and potential beneficiaries 
of assistance (e.g. tenants, community residents, counselees, trainees, 
etc.);
    b. The recipient's primary and major program purposes;
    c. Resources of the recipient and size of the program; and
    d. Local housing, demographic, and community conditions and needs. 
HUD's LEP recipient Guidance was published in the Federal Register (68 
FR 70967) on December 19, 2003 and further guidance may be found at 
http://www.lep.gov.
    4. Reporting Requirements:
    a. Progress reports and Logic Model reporting. Youthbuild grantees 
are required to submit progress reports to the appropriate HUD field 
office in accordance with 24 CFR Part 585.403, using HUD Form 40201. If 
you receive a FY 2006 Youthbuild award, you will be required to update 
your Logic Model periodically, addressing the time schedule, 
accomplishments to date and results and submit it to HUD in conjunction 
within the timeframes established for the Youthbuild progress reports. 
See Logic Model information in the General Section.
    b. Racial and Ethnic Data reporting. HUD requires that funded 
recipients collect racial data and ethnic beneficiary data. HUD 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 http://www.HUDclips.org, a 
comparable program form, or a comparable electronic data system for 
this purpose.

VIII. Agency Contact(s)

    For technical assistance in downloading an application package from 
Grants.gov/Apply, contact the Grants.gov help desk at 800-518-Grants or 
send an e-mail to [email protected].
    For programmatic information concerning the Youthbuild program, 
contact Ms. Phyllis Williams, Community Planning and Development 
Specialist; Office of Economic Development; Office of Community 
Planning and Development; U.S. Department of Housing and Urban 
Development; 451 Seventh Street, SW., Room 7149; Washington, DC 20410-
7000; telephone (202) 708-2035 (this is not a toll-free number). 
Persons with speech or hearing impairments may access this number via 
TTY by calling the toll-free Federal Information Relay Service at 800-
877-8339. Prior to the application deadline, HUD's staff will be 
available to provide general guidance on the application submission 
process and location of information, but not guidance in preparing your 
application.

A. Satellite Broadcast

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

B. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2506-0142. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 45 hours per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application, semi-annual reports, and final 
report. The information will be used for grantee selection and 
monitoring the administration of funds. Response to this request for 
information is required in order to receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11896]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.019


[[Page 11897]]



Housing Choice Voucher Family Self-Sufficiency Program Coordinators

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Public and Indian Housing, Office of Public 
Housing and Voucher Programs.
    B. Funding Opportunity Title: Housing Choice Voucher (HCV) Family 
Self-Sufficiency (FSS) Program Coordinators.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-14. The OMB approval number for this program is 2577-0178.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.871, 
Section 8 Housing Choice Vouchers.
    F. Dates: The application deadline date is May 16, 2006. Please see 
the General Section for timely receipt requirements.
    G. Additional Overview Content Information: The purpose of the HCV 
FSS program is to promote the development of local strategies to 
coordinate the use of assistance under the HCV program with public and 
private resources to enable participating families to increase earned 
income, reduce or eliminate the need for welfare assistance, and make 
progress toward economic independence and self-sufficiency. The FSS 
program and this FSS NOFA support the Department's strategic goal of 
helping HUD-assisted renters make progress toward self-sufficiency. The 
FSS program provides critical tools that can be used by communities to 
support welfare reform and help families develop new skills that will 
lead to economic self-sufficiency. As a result of their participation 
in the FSS program, many families have achieved stable, well-paid 
employment. An FSS program coordinator assures that program 
participants are linked to the supportive services they need to achieve 
self-sufficiency.

Full Text of Announcement

I. Funding Opportunity Description

A. Authority and Program Description

    Public Law 109-115, 119 Stat. 2396, approved November 30, 2005, 
allows funding for program coordinators under the HCV FSS program. 
Through annual NOFAs, HUD has provided funding to public housing 
agencies (PHAs) that are operating HCV FSS programs to enable those 
PHAs to employ program coordinators to support their HCV FSS programs. 
In the Fiscal Year (FY) 2006 HCV FSS Program Coordinator NOFA, HUD is 
again making funding available to PHAs to employ FSS program 
coordinators and FSS homeownership program coordinators for one year. 
Funding priority under this NOFA will be provided to applicants with 
Public Housing Information Center (PIC) data confirming that their FSS 
families have purchased homes and to applicants whose PIC data 
demonstrate program accomplishments such as increased HCV FSS program 
size, increased earned income of program participants, and families 
successfully completing their FSS contracts. HUD will accept 
applications from both new and renewal PHAs that have HUD approval to 
administer an HCV FSS program. PHAs funded under the HCV FSS NOFA in 
FY2005 are considered ``renewal'' PHAs in this NOFA. These renewal PHAs 
are invited to apply for funds to continue previously funded HCV FSS 
program coordinator and FSS homeownership coordinator positions that 
they have filled.
    Because of the importance of the FSS program in helping families 
increase earned income and develop assets, HUD will also accept 
applications from ``new'' PHAs, PHAs that do not qualify as renewal 
PHAs as defined under this FSS NOFA. The maximum number of positions 
that a new applicant PHA, including new PHA joint applicants, may 
receive is one full-time FSS program coordinator.
    To support the Department's initiatives on Colonias, a selection 
preference is again included in this NOFA for ``new'' applicant PHAs 
that provide services and support to rural under-served communities in 
the Southwest Border regions of Arizona, California, New Mexico, and 
Texas. See Section III.C.3.c. of this NOFA for requirements that must 
be met to qualify for the Colonias preference.
    PHAs are encouraged to outreach to persons with disabilities who 
are HCV program participants and might be interested in participating 
in the FSS program and to include agencies on their FSS Program 
Coordinating Committee (PCC) that work with and provide services for 
families with disabilities.
    Applicants must administer the FSS program in accordance with HUD 
regulations and requirements in 24 CFR Part 984 which govern the HCV 
FSS Program and must comply with the existing HCV program requirements, 
notices and guidebooks.

B. Number of Positions for Which Eligible PHAs May Apply

    Eligible PHAs may apply for funding for HCV FSS program coordinator 
positions under this NOFA as follows:
    1. Renewal PHA Applicants. PHAs that qualify as eligible renewal 
PHA applicants under this NOFA may apply for continuation of each FSS 
coordinator position, including homeownership coordinator positions, 
awarded under the HCV FSS NOFA in FY2005 that has been filled by the 
PHA.
    2. New PHA Applicants. New PHA applicants may apply for HCV FSS 
program coordinator positions as follows: (a) Up to one full-time HCV 
FSS coordinator position for a PHA applicant with HUD approval to 
administer a HCV FSS program of 25 or more FSS slots. (b) Up to one 
full-time HCV FSS coordinator position per application for joint PHA 
applicants that together have HUD approval to administer a total of at 
least 25 HCV FSS slots.

C. Definitions

    The following definitions apply to the funding available under this 
NOFA.
    1. Renewal PHA Applicant. A PHA or PHAs that received funding under 
the HCV FSS NOFA in FY2005.
    2. New PHA Applicant. PHAs that did not receive funding under the 
HCV FSS NOFA in FY2005 that have HUD approval to administer a HCV FSS 
program of at least 25 slots or that fulfill the 25 slot minimum by 
applying jointly with one or more other PHAs.
    3. FSS Program Size. The total number of HCV FSS program slots 
identified in the PHA's HUD-approved FSS Action Plan, or if requested 
by Moving to Work (MTW) PHA applicants, the number of slots in the 
applicant's MTW agreement. The total may include both voluntary and 
mandatory HCV FSS program slots. This number is used in determining the 
eligibility of new applicant PHAs under this NOFA.
    4. Qualifying FSS Homeownership Program. Qualifying homeownership 
programs include the HCV Homeownership Program and other programs 
administered by the PHA or other entities that prepare HCV program FSS 
participants for making the transition from renting to homeownership.
    5. The Number of HCV FSS Program Participants. The total number of 
families shown in HUD's PIC data system or applicable MTW report as 
enrolled in the applicant's HCV FSS program at the end of a calendar 
year plus those families that successfully

[[Page 11898]]

completed their FSS contracts, during that calendar year.
    6. Percentage of Families with Positive FSS Escrow Balances. A 
percentage that will be computed by HUD and used to determine funding 
order of priority 2 applicants under this NOFA. It is the sum of the 
number of HCV FSS families with positive escrow balances and the number 
of families that successfully completed their FSS contracts as a 
percentage of HCV FSS families with FSS progress reports. This 
calculation will be made using data for the period from December 31, 
2004 through December 31, 2005 that has been submitted to HUD on the 
Form HUD-50058. For MTW applicants, a comparable reporting source may 
be used.
    7. HCV Program Size. The number of HCVs in a PHA's program as 
determined by HUD using Voucher Management System (VMS) data.
    8. HCV FSS Program Size Increase Percentage. A percentage 
calculated for renewal PHA applicants whose number of HCV FSS 
participants in calendar year 2005 is higher than their calendar year 
2004 number of participants.

II. Award Information

A. Available Funds

    This NOFA announces the availability of approximately $47 million 
in FY2006 to employ FSS program and FSS homeownership coordinators for 
the HCV FSS program. If additional funding becomes available during 
FY2006, HUD may increase the amount available for coordinators under 
this NOFA. A maximum of $65,000 is available for each full-time 
coordinator position funded. Salaries are to be based on local 
comparables. The funding will be provided as a one-year HCV funding 
increment under the PHA's Annual Contributions Contract (ACC). HUD 
reserves the right to adjust funding for renewal positions in order to 
ensure a fair and reasonable distribution of funding.

III. Eligibility Information

A. Eligible Applicants.

    PHAs eligible to apply for funding under this NOFA are:
    1. Renewal PHA Applicants. Those PHAs that received funding under 
the HCV FSS NOFA in FY2005. To continue to qualify as renewal PHAs, the 
FY2006 application of joint applicants must include at least one PHA 
applicant that meets this standard. Joint applicants can change the 
lead PHA in their FY2006 application. A PHA that was originally funded 
as part of a joint application that wishes to now apply separately 
would continue to be considered a renewal PHA applicant for funding 
purposes, but must be able to meet the FSS minimum program size 
requirement of a HUD-approved HCV FSS program of at least 25 slots that 
applies to new applicant PHAs.
    2. New PHA Applicants. PHAs that were not funded under the HCV FSS 
NOFA in FY2005. The new applicant PHA must be authorized through its 
HUD-approved FSS Action Plan to administer an HCV FSS program of at 
least 25 slots, or be a PHA with HUD approval to administer an HCV FSS 
program of fewer than 25 slots that applies jointly with one or more 
other PHAs so that together they have HUD approval to administer at 
least 25 HCV FSS slots. Joint applicants must specify a lead co-
applicant that will receive and administer the FSS program coordinator 
funding.
    3. MTW PHAs. New and renewal PHAs that are under MTW agreements 
with HUD may qualify for funding under this NOFA if the PHA administers 
an FSS program. When determining the size of a new applicant MTW PHA's 
HUD-approved FSS program, the PHA may request that the number of FSS 
slots reflected in the PHA's MTW agreement be used instead of the 
number in the PHA's FSS Action Plan.
    4. Troubled PHAs. a. A PHA that has been designated by HUD as a 
troubled PHA under the Section Eight Management Assessment Program 
(SEMAP), or that has serious program management findings from Inspector 
General audits or serious outstanding HUD management review or 
Independent Public Accountant (IPA) audit findings for the PHA's HCV or 
Moderate Rehabilitation programs that are resolved prior to this NOFA's 
application due date is eligible to apply under this NOFA. Serious 
program management findings are those that would cast doubt on the 
capacity of the PHA to administer its HCV FSS program in accordance 
with applicable HUD regulatory and statutory requirements.
    b. A PHA whose SEMAP troubled designation has not been removed by 
HUD or whose major program management findings or other significant 
program compliance problems have not been resolved by the application 
due date may apply if it meets the requirements stated in Section 
III.C.3.e. of this NOFA.

B. Cost Sharing or Matching

    None required.

C. Other

    1. Eligible Activities. Funds awarded to PHAs under this FSS NOFA 
may only be used to pay salaries and fringe benefits of HCV FSS program 
staff. Funding may be used to employ or otherwise retain for one year 
the services of HCV FSS program coordinators and HCV FSS homeownership 
coordinators. FSS coordinator support positions funded under previous 
FSS NOFAs that made funding available for such FSS positions may be 
continued. A part-time program coordinator may be retained where 
appropriate.
    2. Threshold Requirements.
    a. All Applicants.
    (1) Each applicant must qualify as an eligible PHA under Section 
III.A. of this NOFA and must have submitted their FSS application by 
the application due date and in the format required in Section IV. of 
this NOFA.
    (2) All applications must include a Dun and Bradstreet Universal 
Numbering System (DUNS) number. (See the General Section for further 
information about the DUNS number requirement.)
    (3) Civil Rights Thresholds, Non-discrimination, Affirmatively 
Furthering Fair Housing. A copy of each applicant PHA's most recent 
plan for Affirmatively Furthering Fair Housing for the HCV program must 
be on file at the PHA's local HUD field office by the application due 
date of this NOFA. All applicants must comply with these requirements 
and with Section III.C. of the General Section. Section 3 of the 
Housing and Urban Development Act of 1968 does not apply to this 
program.
    (4) The PHA must have a financial management system that meets 
federal standards. See the General Section regarding those applicants 
that may be subject to HUD's arranging for a pre-award survey of an 
applicant's financial management system.
    (5) Applicants must comply with the requirements for funding 
competitions established by the HUD Reform Act of 1989 (42 U.S.C. 3531 
et seq.) and other requirements as defined in the General Section.
    b. Renewal Applicants.
    (1) Continued funding for existing coordinator positions. In 
addition to meeting the requirements of Section III.A. of this FSS 
NOFA, renewal PHA applicants must continue to operate an HCV FSS 
program, have filled eligible FSS program coordinator positions for 
which they are seeking renewal funding, executed FSS contracts of 
participation with HCV FSS program families and submitted reports on 
participant

[[Page 11899]]

families to HUD via the form HUD-50058.
    c. New Applicants. New applicants must meet the requirements of 
Section III.A. and Section III. C.2.a of this FSS NOFA.
    3. Program Requirements.
    a. Salary Comparables. For all positions requested under this NOFA, 
evidence of salary comparability to similar positions in the local 
jurisdiction must be kept on file in the PHA office.
    b. FSS Action Plan. The requirements for the FSS Action Plan are 
stated in 24 CFR 984.201. For a new PHA applicant to qualify for 
funding under this NOFA, the PHA's initial FSS Action Plan or amendment 
to change the number of HCV FSS slots in the PHA's previously HUD-
approved FSS Action Plan must be submitted to and approved by the PHA's 
local HUD field office prior to the application due date of this FSS 
NOFA. An FSS Action Plan can be updated by means of a simple one-page 
addendum that reflects the total number of HCV FSS slots (voluntary and 
/or mandatory slots) the PHA intends to fill. New PHA applicants with 
previously approved HCV FSS Action Plans may wish to confirm the number 
of HUD-approved slots their local HUD field office has on record for 
the PHA. A new applicant MTW PHA may request that the number of FSS 
slots in its MTW agreement be used instead of the number of slots in 
the PHA's FSS Action Plan.
    c. Colonias Preference. New applicant PHAs claiming the Colonias 
preference must meet the requirements of Sections III.A., III.C.2.a. 
and III.C.2.c. of this FSS NOFA and must operate in a Southwest border 
area that contains Colonia communities and administer programs that 
include outreach to members of those Colonia communities. Attachment A 
of this NOFA provides a listing of PHAs in Arizona, California, New 
Mexico, and Texas that HUD has identified as operating in areas 
containing Colonia communities. PHAs not listed in Attachment A that 
are claiming the Colonias preference will be required to submit a 
written request that HUD determine their eligibility for the 
preference. The request must be submitted prior to the application due 
date and must be sent to Lorenzo ``Larry'' Reyes, Coordinator, SW 
Border Colonias and Migrant Farmworker Initiative, Office of 
Departmental Operations and Coordination, Room 3120, Department of 
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 
20410.
    d. Homeownership Preferences. See priority funding categories in 
Section V.B.2. of this FSS NOFA. Reported HCV FSS home purchase numbers 
will be subject to post audit.
    e. Troubled PHAs. A PHA whose SEMAP troubled designation has not 
been removed by HUD or that has major program management findings or 
other significant program compliance problems that have not been 
resolved by the application due date, may apply if the PHA submits an 
application that designates another organization or entity that is 
acceptable to HUD and that:
    (1) Includes an agreement by the other organization or entity to 
administer the FSS program on behalf of the PHA; and
    (2) In the instance of a PHA with unresolved major program 
management findings, includes a statement that outlines the steps the 
PHA is taking to resolve the program findings.
    Immediately after the publication of this NOFA, the Office of 
Public Housing in the local HUD field office will notify, in writing, 
those PHAs that have been designated by HUD as troubled under SEMAP, 
and those PHAs with unresolved major program management findings or 
other significant program compliance problems that are not eligible to 
apply without such an agreement. Concurrently, the local HUD field 
office will provide a copy of each such written notification to the 
Director of the Grants Management Center.
    f. Conducting Business in Accordance with Core Values and Ethical 
Standards. To reflect core values, all PHAs shall develop and maintain 
a written code of conduct in the PHA administrative plan that:
    (1) Requires compliance with the conflict of interest requirements 
of the HCV Program at 24 CFR 982.161; and
    (2) Prohibits the solicitation or acceptance of gifts or 
gratuities, in excess of a nominal value, by any officer or employee of 
the PHA, or any contractor, subcontractor, or agent of the PHA. The 
PHA's administrative plan shall state PHA policies concerning PHA 
administrative and disciplinary remedies for violation of the PHA code 
of conduct. The PHA shall inform all officers, employees, and agents of 
its organization of the PHA's code of conduct. See General Section for 
additional information on the Code of Conduct requirement.

IV. Application and Submission Information

A. Addresses To Request Application Package

    1. Web site. A copy of this funding announcement for the HCV FSS 
Program may be downloaded from the following Web site: www.grants.gov.
    2. Further Information. When requesting information, please refer 
to the name of the program you are interested in. The NOFA Information 
Center opens for business simultaneously with the publication of the 
SuperNOFA. You can also obtain information on this NOFA and download 
application information for this NOFA through the Web site, 
www.grants.gov.
    3. Technical Assistance. See Section VII. of this FSS funding 
announcement.

B. Content and Form of Application Submission

    1. Content of Application. Each new and renewal PHA must complete 
the form SF-424, the SF-LLL, if appropriate, and the Form HUD-52651, 
the HCV FSS application form. In addition, the application must include 
a completed Logic Model (form HUD 96010) showing proposed performance 
measures applicable to the one-year term of the funding requested under 
this NOFA. See the General Section for information on, and a copy of, 
the Logic Model. A copy of the HUD-52651 is available at 
www.Grants.gov/Apply, Download Instructions for the Housing Choice 
Voucher FSS program or at HUD's website at www.hud.gov/offices/adm/grants/fundsavail.cfm. In completing the SF-424, renewal PHAs should 
select the continuation box on question 2, type of application. Both 
new and renewal PHA applicants should enter the proposed Annual 
Contributions Contract (ACC) amendment effective and ending dates for 
the FSS coordinator funding in section 17 of the SF-424. In section 18 
of SF-424, estimated funding, complete only 18.a., which will be the 
amount requested from HUD in the FY2006 FSS application, and 18.g., 
Total.

C. Submission Date and Time

    Your completed application must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on the application 
deadline date of May 16, 2006. Applicants should carefully read the 
section titled ``APPLICATION and SUBMISSION INFORMATION'' in the 
General Section.

D. Intergovernmental Review

    This NOFA is not subject to Executive Order (EO) 12372, 
Intergovernmental Review of Federal Programs.

E. Funding Restrictions

    1. Salary Cap. Awards under this NOFA are subject to a cap of 
$65,000 per year per full time coordinator position funded. Under this 
NOFA, if PHAs apply jointly, the $65,000

[[Page 11900]]

maximum amount that may be requested per position applies to up to one 
full time coordinator position for the application as a whole, not to 
each PHA separately.
    2. Limitation on Renewal Funding Increases. For renewal coordinator 
positions, PHAs will be limited to a one percent increase above the 
amount of the most recent award for the position unless a higher 
increase is approved by the local HUD field office after review of the 
PHA's written justification and at least three comparables that must be 
submitted to the field office by the application due date of this NOFA. 
Examples of acceptable reasons for increases above one percent would be 
need for a coordinator with higher level of skills or to increase the 
hours of a part time coordinator to full time. Total positions funded 
cannot exceed the maximum number of positions for which the PHA is 
eligible under this NOFA.
    3. Ineligible Activities. a. Funds under this NOFA may not be used 
to pay the salary of an FSS coordinator for a public housing FSS 
program. An HCV FSS program coordinator may only serve HCV families 
while the public housing FSS program serves only public housing 
residents. In FY2006, funding for public housing FSS program 
coordinators is being made available through the Public Housing 
Resident Opportunities and Self-Sufficiency (ROSS) NOFA for Public 
Housing FSS Program Coordinators that is included in the FY2006 
SuperNOFA.
    b. Funds under this FSS NOFA may not be used to pay for services 
for FSS program participants.

F. Other Submission Requirements

    1. Application Submission and Receipt Procedures. See the General 
Section. Electronic application submission is mandatory unless an 
applicant requests, and is granted, a waiver to the requirement. 
Procedures for obtaining a waiver are contained in the General Section. 
If an applicant is granted a waiver, then the approval will provide 
instructions for submitting paper copies to the appropriate HUD 
Office(s). All paper applications must be received by the application 
deadline date to meet the requirements for timely submission.

V. Application Review Information

A. Criteria

    The funds available under this NOFA are being awarded based on 
demonstrated performance. Applications are reviewed by the local HUD 
field office and Grants Management Center (GMC) to determine whether or 
not they are technically adequate based on the NOFA requirements. Field 
offices will provide to the GMC in a timely manner, as requested, 
information needed by the GMC to make its determination, such as the 
HUD-approved HCV FSS program size of new PHA applicant and information 
on the administrative capabilities of PHAs. Categories of applications 
that will not be funded are stated in Section V.B.6.of this FSS NOFA.

B. Review and Selection Process

    1. Technically Acceptable Applications. All technically adequate 
applications will be funded to the extent funds are available.
    2. Funding Priority Categories. If HUD receives applications for 
funding greater than the amount made available under this NOFA, HUD 
will divide eligible applications into priority categories as follows:
    Funding Category 1--Applications from eligible renewal PHAs with 
qualifying homeownership programs with a minimum of ten (10) HCV FSS 
program participants or graduates that purchased homes between October 
1, 2000 and the publication date of this FSS NOFA and an increase of at 
least ten (10) percent in the number of participants in the applicant's 
HCV FSS program from calendar year 2004 to calendar year 2005. Both the 
number of home purchases and the percentage increase in the number the 
HCV FSS program participants will be determined by HUD using PIC data 
from form HUD-50058 or as otherwise reported for MTW PHAs.
    Funding Category 2--Eligible renewal PHA applicants with programs 
that have families with positive escrow balances and/or families that 
successfully completed their FSS contracts between December 31, 2004 
and December 31, 2005.
    Funding Category 3--Eligible renewal PHA applicants with qualifying 
homeownership programs and an increase in the number of HCV FSS program 
participants of at least ten (10) percent from calendar year 2004 to 
calendar year 2005.
    Funding Category 4--New PHA applicants with HUD approval to 
implement an FSS program of at least 25 slots.
    3. Order of Funding. Starting with Funding Category 1, HUD will 
first determine whether there are sufficient monies to fund all 
eligible positions requested in the funding category. If available 
funding is not sufficient to fund all positions requested in the 
category, HUD will fund applications in the following order:
    a. Funding Category 1. HUD will calculate the Percentage Increase 
of HCV FSS Program Participants for each eligible applicant and will 
use this percentage in making funding decisions. HUD will fund eligible 
applicants in order starting with those that have the highest 
Percentage Increase of HCV FSS Program Participants . If funding is not 
sufficient to fund all applicants with the same Percentage Increase of 
HCV FSS Program Participants, HUD will select among eligible applicants 
by HCV program size starting with eligible applicants with the smallest 
HCV program size.
    b. Funding Category 2. If funds remain, HUD will process requests 
of eligible Funding Category 2 applicant PHAs. HUD will first calculate 
the Percentage of Families with Positive FSS Escrow Balances for all 
eligible Funding Category 2 applicants. If there are not sufficient 
monies to fund all eligible funding category 2 applicants, HUD will 
fund eligible applications starting with those with the highest 
positive escrow percentage. If there are not sufficient monies to fund 
all applications with the same positive escrow percentage, HUD will 
select eligible applicants in order by HCV program size starting with 
eligible applicants with the smallest HCV program size.
    c. Funding Category 3. If funds remain, HUD will process eligible 
Funding Category 3 applications. If there is not enough funding for all 
applicants, HUD will use the Percentage Increase of HCV FSS 
Participants to determine selection order, starting with applicants 
with the highest Percentage Increase of HCV FSS Participants. If funds 
are not sufficient for all applicants with the same Percentage Increase 
of HCV FSS Participants, HUD will fund eligible applicants by HCV 
program size starting with eligible applicants with the smallest HCV 
program size.
    d. Funding Category 4. If funds remain after all Category 1 through 
3 applicants have been funded, HUD will process applications from 
eligible Category 4 new PHA applicants. If there are not sufficient 
monies to fund all eligible Category 4 PHA applicants, HUD will first 
fund eligible applications from those PHAs qualifying for the Colonias 
preference. If there are not sufficient monies to fund all eligible 
Colonias PHA applicants, HUD will fund them starting with the smallest 
HCV program size first. If funding remains after funding all eligible 
Category 4 Colonias PHA applicants,

[[Page 11901]]

HUD will then begin funding eligible non-Colonias applicants by HCV 
program size starting with eligible applicants with the smallest HCV 
program size first.
    4. Based on the number of applications submitted, the GMC may elect 
not to process applications for a funding priority category where it is 
apparent that there are insufficient funds available to fund any 
applications within the priority category.
    5. Corrections to Deficient Applications. The General Section 
provides the procedures for corrections to deficient applications.
    6. Unacceptable Applications. After the technical deficiency 
correction period (as provided in the General Section), the GMC will 
disapprove PHA applications that it determines are not acceptable for 
processing. Applications from PHAs that fall into any of the following 
categories are ineligible for funding under this NOFA and will not be 
processed:
    a. An application submitted by an entity that is not an eligible 
PHA as defined under Section III.A. and Section III.C. of this FSS NOFA 
or an application that does not comply with the requirements of Section 
IV.B., IV.C., and IV.F. of this FSS NOFA.
    b. An application from a PHA that does not meet the fair housing 
and civil rights compliance requirements of the General Section.
    c. An application from a PHA that does not comply with the 
prohibition against lobbying activities of the General Section.
    d. An application from a PHA that as of the application due date 
has not made progress satisfactory to HUD in resolving serious 
outstanding Inspector General audit findings, or serious outstanding 
HUD management review or IPA audit findings for the HCV program and/or 
Moderate Rehabilitation program or has a ``troubled'' rating under 
SEMAP, and has not designated another organization acceptable to HUD to 
administer the FSS program on behalf of the PHA as required in Section 
III.C.3.e. of this FSS NOFA.
    e. An application from a PHA that has been debarred or otherwise 
disqualified from providing assistance under the program.
    f. An application that did not meet the application due date and 
timely receipt requirements as specified in this NOFA and the General 
Section.
    g. Applications will not be funded which do not meet the Threshold 
requirements identified in this NOFA and the General Section.

C. Anticipated Announcement and Award Dates

    It is anticipated that award announcements will take place during 
either the month of July or August 2006.

VI. Award Administration Information

A. Award Notices

    Successful applicants will receive an award letter from HUD. 
Funding will be provided to successful applicants as an amendment to 
the ACC of the applicant PHA. In the case of awards to joint 
applicants, the funding will be provided as an amendment to the ACC of 
the lead PHA that was identified in the application.
    Unsuccessful applicants will receive a notification of rejection 
letter from the GMC that will state the basis for the decision. The 
applicant may request an applicant debriefing. Beginning not less than 
30 days after the awards for assistance are publicly announced in the 
Federal Register and for at least 120 days after awards for assistance 
are announced publicly, HUD will, upon receiving a written request, 
provide a debriefing to the requesting applicant. (See the General 
Section for additional information regarding a debriefing.) Applicants 
requesting to be debriefed must send a written request to: Iredia 
Hutchinson, Director; Grants Management Center; U. S. Department of 
Housing and Urban Development, 501 School Street, SW., Suite 800; 
Washington, DC 20024.

B. Administrative and National Policy Requirements

    1. Environmental Impact. No environmental review is required in 
connection with the award of assistance under this NOFA, because the 
NOFA only provides funds for employing a coordinator that provides 
public and supportive services, which are categorically excluded from 
environmental review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321) and not subject to compliance actions for related 
environmental authorities under 24 CFR 50.19(b)(4) and (12).
    2. HUD's Strategic Goals. HUD is committed to ensuring that 
programs result in the achievement of HUD's strategic mission. The FSS 
program and this FSS NOFA support the Department's strategic goals of 
increasing homeownership activities and helping HUD-assisted renters 
make progress toward self-sufficiency by giving funding preference to 
PHAs whose FSS programs show success in moving families to self-
sufficiency and homeownership. You can find out about HUD's Strategic 
Framework and Annual Performance Plan at http://www.hud.gov/offices/cfo/reports/cforept.cfm.
    3. HUD Policy Priorities. This NOFA supports HUD's policy 
priorities of providing increased homeownership opportunities and 
increased self-sufficiency of low-income families through employment. 
Consequently, funding priority in this NOFA will be given to those PHA 
applicants that demonstrate that a minimum of 10 of their FSS families 
have become homeowners that have increased their FSS program size by at 
least 10 percent in calendar year 2005 and to applicants with program 
participants who have increased their earned income since enrolling in 
FSS and/or have families that completed their FSS contracts in the last 
calendar year. See the General Section for a full discussion of HUD's 
policy priorities.

C. Reporting

    Successful applicants must report activities of their FSS 
enrollment, progress and exit activities of their FSS program 
participants through required submissions of the Form HUD-50058. HUD's 
assessment of the accomplishments of the FSS programs of PHAs funded 
under this NOFA will be based primarily on PIC system data obtained 
from the Form HUD-50058. MTW PHAs that do not report to HUD on the Form 
HUD-50058 will be asked to submit an annual report to HUD with the same 
information on FSS program activities that is provided to HUD by non-
MTW PHAs via the Form HUD-50058. An applicant is also required to 
submit a completed Logic Model showing accomplishments against proposed 
outputs and outcomes as part of their annual reporting requirement to 
HUD. Applicants shall use quantifiable data to measure performance 
against goals and objectives outlined in their Logic Model. An annual 
Performance Report consisting of the updated Logic Model must be 
submitted to the Public Housing Director in the applicant's local HUD 
field office no later than 30 days after the ending date of the one-
year funding increment provided to the applicant under this NOFA. For 
FY2006, HUD is considering a new concept for the Logic Model. The new 
concept is a Return on Investment (ROI) statement. HUD will be 
publishing a separate notice on the ROI concept. In addition, 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

[[Page 11902]]

requirements, funded recipients should use Form HUD-27061, Racial and 
Ethnic Data Reporting Form. The form HUD-50058, which provides racial 
and ethnic data to HUD's PIC data system, is a comparable program form.

VII. Agency Contacts

A. For Technical Assistance

    For answers to your questions, you may contact the Public and 
Indian Housing Resource Center at 800-955-2232. Persons with hearing or 
speech impairments may access this number via TTY (text telephone) by 
calling the Federal Information Relay Service at 800-877-8339. (These 
are toll-free numbers). Prior to the application deadline, staff at the 
numbers given above will be available to provide general guidance, but 
not guidance in actually preparing the application. Following 
selection, but prior to award, HUD staff will be available to assist in 
clarifying or confirming information that is a prerequisite to the 
offer of an award by HUD.

B. Satellite Broadcast

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

VIII. Other Information

A. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2577-0178. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average one hour per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application and other required reporting. 
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.

B. Public Access, Documentation, and Disclosure

    See Section VIII. F. of the General Section.

ATTACHMENT A.--PHAs That Operate in Areas Containing Colonia Communities
------------------------------------------------------------------------
 
------------------------------------------------------------------------
                              ARIZONA PHAs
------------------------------------------------------------------------
City of Douglas Housing Authority..  City of Nogales Housing Authority
City of Eloy Housing Authority.....  City of Yuma Housing Authority.
Cochise County Housing Authority...  Yuma County Housing Authority.
Pinal County Housing Authority.....  Section 8 Housing for Graham
                                      County, Arizona Department of
                                      Housing.
------------------------------------------------------------------------
                             CALIFORNIA PHAs
------------------------------------------------------------------------
City of Calexico Housing Authority.  Housing Authority of the County of
                                      Riverside
Imperial Valley Housing Authority.
------------------------------------------------------------------------
                             NEW MEXICO PHAs
------------------------------------------------------------------------
City of Alamogordo Housing           City of Las Cruces/Dona Ana County
 Authority.                           Housing Authority
City of Truth or Consequences        City of Socorro Housing Authority.
 Housing Authority.
Eddy County--Region VI.............  Housing Authority of the Village of
                                      Santa Clara.
Lordsburg Housing Authority........  Otero County--Region VI.
Silver City Housing Authority--      Sunland Park Housing Authority.
 Region V.
Town of Baynard Housing Authority.
------------------------------------------------------------------------
                               TEXAS PHAs
------------------------------------------------------------------------
Alamo Housing Authority............  Asherton Housing Authority
Bracketville Housing Authority.....  Brownsville Housing Authority.
Cameron County Housing Authority...  Carrizo Housing Authority.
Del Rio Housing Authority..........  Dona Housing Authority.
Eagle Pass Housing Authority.......  Ed Couch Housing Authority.
Edinburg Housing Authority.........  Elsa Housing Authority.
Harlingen Housing Authority........  Hidalgo County Housing Authority.
Laredo Housing Authority...........  La Joya Housing Authority.
Los Fresnos Housing Authority......  McAllen Housing Authority.
Mercedes Housing Authority.........  Mission Housing Authority.
Pharr Housing Authority............  Port Isabel Housing Authority.
San Benito Housing Authority.......  San Juan Housing Authority.
Starr County Housing Authority.....  Weslaco Housing Authority.
Willacy County Housing Authority...  Uvalde Housing Authority.
Zapata County Housing Authority.
------------------------------------------------------------------------

BILLING CODE 4210-01-P

[[Page 11903]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.020


[[Page 11904]]



Rural Housing and Economic Development Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Community Planning and Development, Office of Rural 
Housing and Economic Development.
    B. Funding Opportunity Title: Rural Housing and Economic 
Development (RHED) program.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number is FR 
5030-N-04. The OMB approval number is 2506-0169.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.250 
Rural Housing and Economic Development.
    F. Application Due Date: The application deadline date is May 12, 
2006.
    G. Optional Additional Overview Information: 1. The purpose of the 
Rural Housing and Economic Development program is to provide support 
for innovative housing and economic development activities in rural 
areas. The funds made available under this program will be awarded 
competitively through a selection process conducted by HUD in 
accordance with the HUD Reform Act.

Full Text of Announcement

I. Funding Opportunity Description

A. Background

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

B. Definitions

    1. Appalachia's Distressed Counties means those counties in 
Appalachia that the Appalachian Regional Commission (ARC) has 
determined to have unemployment and poverty rates that are 150 percent 
of the respective U.S. rates and a per capita income that is less than 
67 percent of the U.S. per capita income, and have counties with 200 
percent of the U.S. poverty rate and one other indicator, such as the 
percentage of overcrowded housing. Refer to http://www.arc.gov for a 
list of ARC distressed counties and more information.
    2. Colonia means any identifiable, rural community that:
    a. Is located in the state of Arizona, California, New Mexico, or 
Texas;
    b. Is within 150 miles of the border between the U.S. and Mexico; 
and
    c. Is determined to be a Colonia on the basis of objective need 
criteria, including a lack of potable water supply, lack of adequate 
sewage systems, and lack of decent, safe, sanitary, and accessible 
housing.
    3. Farm Worker means a farm employee of an owner, tenant, labor 
contractor, or other operator raising or harvesting agricultural or 
aquacultural commodities; or a worker in the employment of a farm 
operator, handling, planting, drying, packing, grading, storing, 
delivering to storage or market, or carrying to market agricultural or 
aquacultural commodities produced by the operator. Seasonal farm 
workers are those farm employees who typically do not have a constant 
year-round salary.
    4. Firm Commitment means a letter of commitment from a partner by 
which an applicant's partner agrees to perform an activity specified in 
the application, demonstrates the financial capacity to deliver the 
resources necessary to carry out the activity and commits the resources 
to the activity, either in cash or through in-kind contributions. It is 
irrevocable, subject only to approval and receipt of a FY2006 Rural 
Housing and Economic Development grant. Each letter of commitment must 
include the organization's name and applicant's name, reference the 
Rural Housing and Economic Development program, and describe the 
proposed total level of commitment and responsibilities, expressed in 
dollar value for cash or in-kind contributions, as they relate to the 
proposed program. The commitment must be written on the letterhead of 
the participating organization, must be signed by an official of the 
organization legally able to make commitments on behalf of the 
organization, and must be dated no earlier than the date of publication 
of this NOFA. In documenting a firm commitment, the applicant's partner 
must:
    a. Specify the authority by which the commitment is made, the 
amount of the commitment, the proposed use of funds, and the 
relationship of the commitment to the proposed investment. If the 
committed activity is to be self-financed, the applicant's partner must 
demonstrate its financial capability through a corporate or personal 
financial statement or other appropriate means. If any portion of the 
activity is to be financed through a lending institution, the 
participant must provide evidence of the institution's commitment to 
fund the loan; and
    b. Affirm that the firm commitment is contingent only upon the 
receipt of FY2006 Rural Housing and Economic Development funds and 
state a willingness on the part of the signatory to sign a legally 
binding agreement (conditioned upon HUD's environmental review and 
approval of a property where applicable) upon award of the grant.
    5. Federally Recognized Indian tribe means any tribal entity 
eligible to apply for funding and services from the Bureau of Indian 
Affairs by virtue of its status as an Indian tribe. The list of 
federally recognized Indian tribes can be found in the notice published 
by the Department of the Interior on December 5, 2003 (68 FR 68180) and 
is also available from HUD.
    6. Innovative Housing Activities means projects, techniques, 
methods, combinations of assistance, construction materials, energy 
efficiency improvements, or financing institutions or sources new to 
the eligible area or to its population. The innovative activities can 
also build upon and enhance a model that already exists.
    7. Local Rural Nonprofit Organization or Community Development 
Corporation means either of the following:
    a. Any private entity with tax-exempt status recognized by the 
Internal Revenue Service (IRS) which serves the eligible rural area 
identified in the application (including a local affiliate of a 
national organization that provides technical assistance in rural 
areas); or
    b. Any public nonprofit entity such as a Council of Governments 
that will serve specific local nonprofit organizations in the eligible 
area.
    8. Lower Mississippi Delta Region means the eight-state, 240-
county/parish region defined by Congress in the Lower Mississippi Delta 
Development Act,

[[Page 11905]]

Public Law 100-460. Refer to http://www.dra.gov for more information.
    9. Eligible Rural Area means one of the following:
    a. A non-urban place having fewer than 2,500 inhabitants (within or 
outside of metropolitan areas).
    b. A county or parish with an urban population of 20,000 
inhabitants or less.
    c. Territory, including its persons and housing units, in the rural 
portions of ``extended cities.'' The U.S. Census Bureau identifies the 
rural portions of extended cities.
    d. Open country that is not part of or associated with an urban 
area. The USDA describes ``open country'' as a site separated by open 
space from any adjacent densely populated urban area. Open space 
includes undeveloped land, agricultural land, or sparsely settled 
areas, but does not include physical barriers (such as rivers and 
canals), public parks, commercial and industrial developments, small 
areas reserved for recreational purposes, or open space set aside for 
future development.
    e. Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    10. State Community and/or Economic Development Agency means any 
state agency that has promotion of economic development statewide or in 
a local community as its primary purpose.
    11. State Housing Finance Agency means any state agency created to 
assist local communities and housing providers with financing 
assistance for development of housing in rural areas, particularly for 
low- and moderate-income people.

II. Award Information

A. Amount Allocated

    1. Available Funds. Approximately $17 million in Fiscal Year (FY) 
2006 funding (plus any additional funds available through recapture) 
are being made available through this NOFA.
    2. Funding Award Amount. HUD will award up to approximately $17 
million on a competitive basis for Support for Innovative Housing and 
Economic Development Activities to federally recognized Indian tribes, 
state housing finance agencies (HFAs), state community and/or economic 
development agencies, local rural nonprofit organizations or community 
development corporations to support innovative housing and economic 
development activities in rural areas throughout the nation. The 
maximum amount awarded to a successful applicant will be $300,000.

B. Grant Amount

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

C. Grant Period

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

D. Notification of Approval or Disapproval

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

III. Eligibility Information

    A. Eligible Applicants. Eligible applicants for the Rural Housing 
and Economic Development program are local rural nonprofit 
organizations and community development corporations, federally 
recognized Indian tribes, state housing finance agencies and state 
community and/or economic development agencies. Also, you must meet all 
of the applicable eligibility requirements described in Section III.C 
of the General Section.
    B. Cost Sharing or Matching. There is no match required under the 
Rural Housing and Economic Development program. Applicants that submit 
evidence of leveraging dollars under Rating Factor 4 will receive 
points according to the scale under that factor.
    C. Other. 1. Eligible Activities. The following are examples of 
eligible activities under the Rural Housing and Economic Development 
program.
    Permissible activities may include, but are not limited to the 
following:
    a. Cost of using new or innovative construction, energy efficiency, 
or other techniques that will result in the design or construction of 
innovative housing and economic development projects;
    b. Preparation of plans or of architectural or engineering 
drawings;
    c. Preparation of legal documents, government paperwork, and 
applications necessary for construction of housing and economic 
development activities to occur in the jurisdiction;
    d. Acquisition of land and buildings;
    e. Demolition of property to permit construction or rehabilitation 
activities to occur;
    f. Purchase of construction materials;
    g. Homeownership counseling, including fair housing counseling, 
credit counseling, budgeting, access to credit, and other federal 
assistance available;
    h. Conducting conferences or meetings with other federal or state 
agencies tribes, tribally designated housing entities (TDHE) or 
national or regional housing organizations, to inform residents of 
programs, rights, and responsibilities associated with homebuying 
opportunities;
    i. Establishing Community Development Financial Institutions 
(CDFIs), lines of credit, revolving loan funds, microenterprises, and 
small business incubators; and
    j. Provision of direct financial assistance to homeowners/
businesses/developers, etc. This can be in the form of default 
reserves, pooling/securitization mechanisms, loans, grants, funding 
existing individual development accounts or similar activities.
    2. Statutory and Regulatory Requirements. To be eligible for 
funding under HUD NOFAs issued during FY2006, you, the applicant, must 
meet all statutory and regulatory requirements applicable to this NOFA 
as described in the General Section. HUD may also eliminate ineligible 
activities from funding consideration and reduce funding amounts 
accordingly.
    3. General HUD Threshold Requirements. You must meet all threshold 
requirements described in the General Section.
    a. Ineligible Applicants. HUD will not consider an application from 
an ineligible applicant.
    b. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Recipients of assistance under this NOFA must comply with 
Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 
1701u (Economic Opportunities for Low- and Very Low-Income Persons in 
Connection with Assisted Projects) and the HUD regulations at 24 CFR 
part 135, including the reporting requirements at subpart E. Section 3 
requires recipients to ensure that, to the greatest extent

[[Page 11906]]

feasible, training, employment, and other economic opportunities will 
be directed to low- and very-low income persons, particularly those who 
are recipients of government assistance for housing, and business 
concerns that provide economic opportunities to low- and very low-
income persons.
    4. Program-Specific Threshold Requirements.
    a. The application must receive a minimum rating score of 75 points 
to be considered for funding.
    b. HUD will only fund eligible applicants as defined in this NOFA 
under Section III.A.
    c. Applicants must serve an eligible rural area as defined in 
section I. of this NOFA.
    d. Proposed activities must meet the objectives of the Rural 
Housing and Economic Development program.
    e. Applicants must demonstrate that their activities will continue 
to serve populations that are in need and that beneficiaries will have 
a choice of innovative housing and economic development opportunities 
as a result of the activities.

IV. Application and Submission Information

A. Address To Request Application Package

    This section describes how you may obtain application forms. Copies 
of the published Rural Housing and Economic Development NOFA and 
application forms may be downloaded from the Grants.gov Web site at 
http://www.grants.gov/Apply. You may call the Grants.gov support desk 
at 800-518-GRANTS, or email the support desk at Grants.gov">Support@Grants.gov for 
assistance in downloading the application. Applicants may request a 
waiver of the electronic submission requirement. Paper applications 
will not be accepted unless the applicant has received a waiver to the 
electronic submission requirement. Instructions regarding the number of 
copies to submit and where will be contained in the approval to the 
waiver request. Paper submissions must be received at the appropriate 
HUD office(s) no later than the deadline date. See Section IV of the 
General Section for further information.

B. Content and Form of Application Submission

    1. Application Submission Requirements. Be sure to read and follow 
the application submission requirements carefully.
    a. Page Numbering. All pages of the application must be numbered 
sequentially if you are submitting a paper copy application. For 
electronic application submission you should follow the directions in 
the General Section.
    b. Application Items. Your application must contain the items 
listed below.
    (1) An abstract that must include the dollar amount requested, the 
category under which you qualify for demographics of distress special 
factor under Rating Factor 2 ``Need and Extent of the Problem,'' which 
of the five definitions of the term ``rural area'' set forth in Section 
I B.9 of this NOFA applies to the proposed service area, and 
accompanying documentation as indicated on the form.
    (2) Table of Contents.
    (3) A signed SF-424 (application form).
    (4) SF-424 Supplement Survey on Equal Opportunity for Applicants 
(optional submission).
    (5) Facsimile Transmittal (HUD-96011). (This must be used as the 
cover page to transmit third party documents as part of your electronic 
application.)
    (6) Disclosure of Lobbying Activities (SF-LLL).
    (7) Applicant/Recipient Disclosure/Update Report (HUD-2880).
    (8) You Are Our Client Grant Applicant Survey (HUD 2994-A) 
(Optional).
    (9) Program Outcome Logic Model (HUD-96010).
    (10) A budget for all funds (federal and non-federal including HUD-
424CB and HUD 424-CBW).
    (11) Certification of Consistency with RC/EZ/EC-II Strategic Plan 
(HUD-2990), if applicable.
    (12) Certification of Consistency with the Consolidated Plan (HUD-
2991), if applicable.
    (13) Documentation of funds pledged in support of Rating Factor 4--
``Leveraging Resources'' (which will not be counted in the 15-page 
limitation). Documentation must be in the form of a ``firm commitment'' 
as defined in Section I.B.4 of this NOFA.
    (14) If you are a private nonprofit organization, a copy of your 
organization's IRS ruling providing tax-exempt status under section 501 
of the Internal Revenue Code of 1986, as amended.
    (15) Narrative response to Factors for Award. The total narrative 
response to all factors should not exceed 15 pages and should be 
submitted in a format that is equal to 8.5 x 11-inch single sided 
paper, with 12-point font and double lined spacing. Please note that 
although submitting pages in excess of the page limit will not 
disqualify your application, HUD will not consider or review the 
information on any excess pages, which may result in a lower score or 
failure to meet a threshold requirement. In addition, applicants should 
be aware that additional pages increase the size of the application and 
the length of time it will take to electronically submit the document 
and have it electronically received by Grants.gov. Large files result 
in slower delivery to Grants.gov.
    (16) Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD 27300). To get the points for this policy priority, you 
must include the documentation or references to URLs where the 
information can be found.
    All applicants are required to use the following format in their 
15-page narrative responses to the rating factors included in the 
program NOFA:
    Factor 1--Relevant Organizational Experience;
    Factor 2--Need and Extent of the Problem;
    Factor 3--Soundness of Approach;
    Factor 4--Leveraging Resources; and
    Factor 5--Achieving Results and Program Evaluation.
    See Section V. of this NOFA for further details.

C. Submission Dates and Times.

    1. Electronic Application Submission. Applications for the Rural 
Housing and Economic Development program must be received and validated 
by Grants.gov no later than 11:59:59 p.m. eastern time on the 
application deadline date. You will receive an acknowledgement of 
receipt from Grants.gov when your application has been successfully 
received. You will receive an acknowledgement from Grants.gov that your 
application has been validated or rejected. Please see the General 
Section for more detailed information. If you do not receive the 
validation or rejection notice within 24-48 hours, contact the 
Grants.gov help desk.
    2. Applicants are advised to carefully read the application 
submission and timely receipt requirements in the General Section as 
they have changed from previous years.
    3. Only one application will be accepted from any given 
organization. If more than one application is submitted electronically, 
the last application submitted prior to the due date and time will be 
the one reviewed by HUD. HUD will not accept application addendums 
after the deadline unless HUD has specifically asked the applicant for 
a correction to a technical deficiency in the application. Responses to 
technical deficiencies must be received by HUD within the time 
allocated to cure the

[[Page 11907]]

deficiency. Corrections to technical deficiencies are submitted 
directly to HUD in accordance with the information provided by the 
program office in their cure notification.

D. Intergovernmental Agency Review

    Intergovernmental agency review is not required for this program.

E. Funding Restrictions

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

F. Other Submission Requirements

    Carefully review the procedures presented in Section IV of the 
General Section FY 2006, HUD will only accept electronic applications 
submitted through http://www.grants.gov.

V. Application Review Information

A. Criteria

    Carefully review all the Application Review procedures in Section V 
of the General Section. In addition, the following Rating Factors will 
be used to review, evaluate, and rate your application.
1. Rating Factor 1--Capacity of the Applicant and Relevant 
Organizational Experience (25 Points)
    This rating factor addresses the extent to which you have the 
organizational resources necessary to successfully implement your 
proposed work plan, as further described in Rating Factor 3, within the 
36-month award period.
    a. Team members, composition, and experience (10 points). HUD will 
evaluate the experience (including its recentness and relevancy) of 
your project director, core staff, and any outside consultant, 
contractor, subrecipient, or project partner as it relates to 
innovative housing and economic development and to the implementation 
of the activities in your workplan. HUD also will assess the services 
that consultants or other parties will provide to fill gaps in your 
staffing structure to enable you to carry out the proposed workplan; 
the experience of your project director in managing projects of similar 
size, scope, and dollar amount; the lines of authority and procedures 
that you have in place for ensuring that workplan goals and objectives 
are being met, that consultants and other project partners are 
performing as planned, and that beneficiaries are being adequately 
served. In judging your response to this factor, HUD will only consider 
work experience gained within the last seven years. When responding, 
please be sure to provide the dates, job titles and relevancy of the 
past experience to work to be undertaken by the employee or contractor 
under your proposed Rural Housing and Economic Development award. The 
more recent, relevant, and successful the experience of your team 
members are in relationship to the workplan activities, the greater the 
number of points that you will receive.
    b. Organizational structure and management capacity (5 points). HUD 
will evaluate the extent to which you can demonstrate your 
organization's ability to manage a workforce composed of full-time or 
part-time staff, as well as any consultant staff, and your ability to 
work with community-based groups or organizations in resolving issues 
related to affordable housing and economic development. In evaluating 
this subfactor, HUD will take into account your experience in working 
with community-based organizations to design and implement programs 
that address the identified housing and economic development issues. 
The more recent, relevant, and successful the experience of your 
organization and any participating entity, the greater the number of 
points you will receive.
    c. Experience with performance based funding requirements (10 
points). HUD will evaluate your performance in any previous grant 
program undertaken with HUD funds or other federal, state, local, or 
nonprofit or for-profit organization funds. In assessing points for 
this sub-factor, HUD reserves the right to take into account your past 
performance in meeting performance and reporting goals for any previous 
HUD award, in particular whether the program achieved its outcomes. HUD 
will deduct one point for each of the following activities related to 
previous HUD grant programs for which unsatisfactory performance has 
been verified: (1) Mismanagement of funds, including the inability to 
account for funds appropriately; (2) untimely use of funds received 
either from HUD or other federal, state, or local programs; and (3) 
significant and consistent failure to measure performance outcomes. 
Among the specific outcomes to be measured are the increases in program 
accomplishments as a result of capacity building assistance and the 
increase in organizational resources as a result of assistance.
    d. Past Rural Housing and Economic Development program performance. 
The past performance of previously awarded Rural Housing and Economic 
Development grantees will be taken into consideration when evaluating 
Rating Factor 1 ``Capacity of the Applicant and Relevant Organizational 
Experience.'' Applicants who have been awarded Rural Housing and 
Economic Development program funds prior to FY2006 should indicate 
fiscal year and funding amount. HUD local field offices may be 
consulted to verify information submitted by the applicant as a part of 
the review of applications.
2. Rating Factor 2--Need and Extent of the Problem (20 Points)
    The Rural Housing and Economic Development program is designed to 
address the problems of rural poverty, inadequate housing and lack of 
economic opportunity. This factor addresses the extent to which there 
is a need for funding the proposed activities based on levels of 
distress and the urgency of meeting the need/distress in the 
applicant's target area. In responding to this factor, applications 
will be evaluated on the extent to which the level of need for the 
proposed activity and the urgency in meeting the need are documented 
and compared to target area and national data.
    a. In applying this factor, HUD will compare the current levels of 
need in the area (i.e., Census Tract(s) or Block Group(s) immediately 
surrounding the project site or the target area to be served by the 
proposed project and the national levels of need. This means that an 
application that provides data that show levels of need in the project 
area expressed as a percent greater than the national average will be 
rated higher under this factor. Applicants should provide data that 
address indicators of need as follows:
    (1) Poverty Rate (5 points)--Data should be provided in both 
absolute and percentage form (i.e., whole numbers and percents) for the 
target area(s). An application that compares the local poverty rate in 
the following manner to

[[Page 11908]]

the national average at the time of submission will receive points 
under this section as follows:
    (a) Less than the national average = 0 point;
    (b) Equal to but less than twice the national average = 1 points;
    (c) Twice but less than three times the national average = 3 
points;
    (d) Three or more times the national average = 5 points.
    (2) Unemployment (5 points)--for the target area:
    (a) Less than the national average = 0 point;
    (b) Equal to but less than twice the national average = 1 points;
    (c) Twice but less than three times the national average = 2 
points;
    (d) Three but less than four times the national average = 3 points;
    (e) Four but less than five times the national average = 4 points;
    (f) Five or more times the national average = 5 points.
    (3) Other indicators of social or economic decline that best 
capture the applicant's local situation (5 points).
    (a) Data that could be provided under this section are information 
on the community's stagnant or falling tax base, including recent 
commercial or industrial closings; housing conditions, such as the 
number and percentage of substandard or overcrowded units; rent burden 
(defined as average housing cost divided by average income) for the 
target area; local crime statistics, falling property values, etc. To 
the extent that the applicant's statewide or local Consolidated Plan, 
its Analysis of Impediments to Fair Housing Choice (AI), its Indian 
housing plan or its anti-poverty strategy identify the level of 
distress in the community and the neighborhood in which the project is 
to be carried out, references to such documents should be included in 
preparing the response to this factor.
    (b) In rating applications under this factor, HUD reserves the 
right to consider sources of available objective data other than or in 
addition to those provided by applicants, and to compare such data to 
those provided by applicants for the project site. These may include 
U.S. Census data.
    (c) HUD requires use of sound, verifiable, and reliable data (e.g., 
U.S. Census data, state statistical reports, university studies/
reports, or Home Mortgage Disclosure Act or Community Reinvestment Act 
databases) to support distress levels cited in each application. See 
http://www.ffiec.gov/ or http://www.ffiec.gov/webcensus/ffieccensus.htm 
for census data. A source for all information along with the 
publication or origination date must also be provided.
    (d) Updated Census data are available for the following indicators:
    (i) Unemployment rate--estimated monthly for counties, with a two-
month lag;
    (ii) Population--estimated for incorporated places and counties, 
through 2000;
    (iii) Poverty rate--through 2000.
    (4) Demographics of Distress--Special Factors (5 points). Because 
HUD is concerned with meeting the needs of certain underserved areas, 
you will be awarded a total of five points if you are located in or 
propose to serve one or more of the following populations, or if your 
application demonstrates that 100 percent of the beneficiaries 
supported by Rural Housing and Economic Development funds are in one or 
more of the following populations. You must also specifically identify 
how each population will be served and that the proposed service area 
meet the definition of ``eligible rural area'' in Section I of this 
NOFA:
    (a) Areas with very small populations in non-urban areas (2,500 
population or less);
    (b) Seasonal farm workers;
    (c) Federally recognized Indian tribes;
    (d) Colonias;
    (e) Appalachia's Distressed Counties; or
    (f) The Lower Mississippi Delta Region (8 states and 240 counties/
parishes).
    For these underserved areas, you should ensure that the populations 
that you serve and the documentation that you provide are consistent 
with the information described in the above paragraph under this rating 
factor.
3. Rating Factor 3--Soundness of Approach (21 Points)
    This factor addresses the overall quality of your proposed 
workplan, taking into account the project and the activities proposed 
to be undertaken; the cost-effectiveness of your proposed program; and 
the linkages between identified needs, the purposes of this program, 
and your proposed activities and tasks. In addition, this factor 
addresses your ability to ensure that a clear linkage exists between 
innovative rural housing and economic development. In assessing cost-
effectiveness, HUD will take into account your staffing levels; 
beneficiaries to be served; and your timetable for the achievement of 
program outcomes, the delivery of products and reports, and any 
anticipated outcome or product. You will receive a greater number of 
points if your workplan is consistent with the purpose of the Rural 
Housing and Economic Development program, your program goals, and the 
resources provided.
    a. Management Plan (13 points). A clearly defined management plan 
should be submitted that identifies each of the projects and activities 
you will carry out to further the objectives of this program; describes 
the linkage between rural housing and economic development activities; 
and addresses the needs identified in Factor 2, including needs that 
previously were identified in a statewide or local Analysis of 
Impediments to Fair Housing Choice (AI) or Consolidated Plan. The 
populations that were described in Rating Factor 2 for the purpose of 
documenting need should be the same populations that will receive the 
primary benefit of the activities, both immediately and over the long 
term. The benefits should be affirmatively marketed to those 
populations least likely to apply for and receive these benefits 
without such marketing. Your timetable should address the measurable 
short-term and long-term goals and objectives to be achieved through 
the proposed activities based on annual benchmarks; the method you will 
use for evaluating and monitoring program progress with respect to 
those activities; and the method you will use to ensure that the 
activities will be completed on time and within your proposed budget 
estimates. Your management plan should also include the budget for your 
program, broken out by line item. Documented projected cost estimates 
from outside sources are also required. Applicants should submit their 
workplan on a spreadsheet showing each project to be undertaken and the 
tasks (to the extent necessary or appropriate) in your workplan to 
implement the project with your associated budget estimate for each 
activity/task. Your workplan should provide the rationale for your 
proposed activities and assumptions used in determining your project 
timeline and budget estimates. Failure to provide your rationale may 
result in your application receiving fewer points for lack of clarity 
in the proposed management plan.
    This subfactor should include information that indicates the extent 
to which you have coordinated your activities with other known 
organizations (e.g., through letters of participation or coordination) 
that are not directly participating in your proposed work activities, 
but with which you share common goals and objectives and that are 
working toward

[[Page 11909]]

meeting these objectives in a holistic and comprehensive manner. The 
goal of this coordination is to ensure that programs do not operate in 
isolation. Additionally, your application should demonstrate the extent 
to which your program has the potential to be financially self-
sustaining by decreasing dependence on Rural Housing and Economic 
Development funding and relying more on state, local, and private 
funding. The goal of sustainability is to ensure that the activities 
proposed in your application can be continued after your grant award is 
complete.
    b. Policy Priorities (8 Points). Policy priorities are outlined in 
detail in the General Section. You should document the extent to which 
HUD's policy priorities are furthered by the proposed activities. 
Applicants that include activities that can result in the achievement 
of these departmental policy priorities will receive higher rating 
points in evaluating their application for funding. Seven departmental 
policy priorities are listed below. When policy priorities are 
included, describe in brief detail how those activities will be carried 
out.
    The point values for policy priorities are as follows:
    (1) Providing increased homeownership and rental opportunities for 
low- and moderate-income persons, persons with disabilities, the 
elderly, minorities, and families with limited English proficiency = 1 
point;
    (2) Improving our Nation's communities = 1 point;
    (3) Encouraging accessible design features = 1 point;
    (4) Providing full and equal access to grassroots faith-based and 
other community-based organizations in HUD program implementation = 1 
point;
    (5) Ending chronic homelessness within ten years = 1 point;
    (6) Removal of barriers to affordable housing = 2 points; and
    (7) Promoting Energy Efficiency and Adopting Energy Star = 1 point.
4. Rating Factor 4--Leveraging Resources (10 Points)
    This factor addresses the extent to which applicants have obtained 
firm commitments of financial or in-kind resources from other federal, 
state, local, and private sources. For every Rural Housing and Economic 
Development program dollar anticipated, you should provide the specific 
amount of dollars leveraged. In assigning points for this criterion, 
HUD will consider the level of outside resources obtained in the form 
of cash or in-kind goods or services that support activities proposed 
in your application. HUD will award a greater number of points based 
upon a comparison of the extent of leveraged funds with the requested 
Rural Housing and Economic Development award. The level of outside 
resources for which commitments are obtained will be evaluated based on 
their importance to the total program. Your application must provide 
evidence of leveraging in the form of letters of firm commitment from 
any entity, including your own organization, which will be providing 
the leveraging funds to the project. Each commitment described in the 
narrative of this factor must be in accordance with the definition of 
``firm commitment,'' as defined in this NOFA. The commitment letter 
must be on letterhead of the participating organization, must be signed 
by an official of the organization legally able to make commitments on 
behalf of the organization, and must not be dated earlier than the date 
this NOFA is published.
    Points for this factor will be awarded based on the satisfactory 
provisions of evidence of leveraging and financial sustainability, as 
described above, and the ratio of leveraged funds to requested HUD 
Rural Housing and Economic Development funds as follows:
    a. 50% or more of requested HUD Rural Housing and Economic 
Development funds = 10 points;
    b. 49-40% of requested HUD Rural Housing and Economic Development 
funds = 8 points;
    c. 39-30% of requested HUD Rural Housing and Economic Development 
funds = 6 points;
    d. 29-20% of requested HUD Rural Housing and Economic Development 
funds = 4 points;
    e. 19-9% of requested HUD Rural Housing and Economic Development 
funds = 2 points;
    f. Less than 9% of HUD requested Rural Housing and Economic 
Development funds = 0 points.
    See the General Section for instructions for submitting third party 
letters and other documents with your electronic application.
5. Rating Factor 5--Achieving Results and Program Evaluation (24 
Points)
    This factor emphasizes HUD's commitment to ensure that applicants 
keep promises made in their application. This factor assesses their 
performance to ensure that rigorous and useful performance measures are 
used and goals are met. Achieving results means you, the applicant, 
have clearly identified the benefits or outcomes of your program. 
Outcomes are ultimate project end goals. Benchmarks or outputs are 
interim activities or products that lead to the ultimate achievement of 
your goals. Program evaluation requires that you, the applicant, 
identify program outcomes, interim products or benchmarks, and 
performance indicators that will allow you to measure your performance. 
Performance indicators should be objectively quantifiable and measure 
actual achievements against anticipated achievements. Your evaluation 
plan should identify what you are going to measure, how you are going 
to measure it, and the steps you have in place to make adjustments to 
your work plan if performance targets are not met within established 
time frames.
    Applicants must also complete the ``Logic Model'' HUD Form (HUD-
96010) included in the application instructions at http://www.Grants.gov, and submit the completed form with their application. 
This year, in response to client concerns that the Logic Model was 
difficult to complete due to the need to write text into the 
appropriate columns, HUD has provided an electronic Logic Model that 
will enable applicants to select from lists the appropriate needs 
statement(s), activities/outputs and outcomes that the applicant is 
proposing in the application submission. The listing of the activities 
is referred to as the Master Logic Model List and each list is unique 
to the program funding opportunity. The application instructions found 
on http://www.Grants.gov/Apply include the eLogic ModelTM 
that you can complete and attach to your electronic application 
submission. For applicants who do not have Microsoft Excel software, 
HUD has provide the Master Logic model list on its Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm, where applicants may 
select the items in each column that reflect their activity outputs and 
outcomes and copy and paste them into the appropriate column in the 
Logic Model form. The form can be printed and sent to HUD via facsimile 
using form HUD-96011 as the cover page to the Transmittal. In 
completing the Logic Model, applicants are expected to select from the 
lists of appropriate outputs and outcomes for their proposed workplan. 
The eLogic ModelTM and Master Logic Model listing also 
identify the unit of measure that HUD is interested in collecting for 
the outputs and outcomes selected. In making the selections, for each 
output and outcome, applicants are to complete the appropriate proposed 
number of units of measure to be accomplished. The space next to the 
output and outcome is to capture the

[[Page 11910]]

anticipated units of measure. Multiple outputs and outcomes may be 
selected per project. For FY2006, HUD is considering a new concept for 
the Logic Model. The new concept is a Return on Investment statement. 
HUD will be publishing a separate notice on the ROI concept.
    Under this rating factor, applicants will receive a maximum of 24 
points based on how the applicant proposes to effectively address 
program goals and performance measures. HUD will evaluate and analyze 
how well the applicant implemented the required Rural Housing and 
Economic Development output and outcome goals and identified other 
stated benefits or outcomes of their program. In order to receive the 
highest number of points, applicants should present a clear plan to 
address the RHED output and outcome measures.
    1. Output Measures are quantifiable. RHED outputs include: Number 
of housing units constructed; number of housing units rehabilitated; 
Number of jobs created; number of participants trained; number of new 
businesses created; and number of existing businesses assisted.
    2. Outcomes Measures are benefits accruing to the program 
participants and/or communities during or after participation in the 
RHED program. RHED outcomes include: Number of housing units 
rehabilitated that will be made available to low-to-moderate-income 
participants; percentage change in earnings as a result of employment 
for those participants; percent of participants trained who find a job; 
annual estimated savings for low-income families as a result of energy 
efficiency improvements; and increase in organizational resources as a 
result of assistance (e.g., dollars leveraged).
    You must clearly identify the outcomes to be achieved and measured. 
Proposed program benefits should include program activities, 
benchmarks, and interim activities or performance indicators with 
timelines. Applications should include an evaluation plan that will 
effectively measure actual achievements against anticipated 
achievements.
    3. Logic Model. HUD requires RHED applicants to develop an 
effective, quantifiable, outcome-oriented evaluation plan for measuring 
performance and determining whether goals have been met using the 
Master Logic Model for RHED, which can be found in the download 
instructions portion of the application at www.Grants.gov. In preparing 
your logic model first open the form HUD-96010 and go to the 
instruction tab and follow the directions in the tab. Your application 
must include the Logic Model form (HUD-96010) to receive any points 
under this factor.
    This rating factor reflects HUD's goal to embrace high standards of 
ethics, management, and accountability. HUD will hold a training 
broadcast via satellite for potential applicants to learn more about 
Rating Factor 5. For more information about the date and time of the 
broadcast, consult the HUD Web site at http://www.hud.gov/grants/index.cfm.
    Although the following list is not all inclusive, program outcomes 
for the Rural Housing and Economic Development program must include 
where applicable:
    a. Total number of housing units constructed;
    b. Total number of housing units rehabilitated;
    c. Number of Housing units rehabilitated that will be made 
available to low-to-moderate income participants;
    d. Number of Housing units constructed that will be made available 
to low-to-moderate income participants;
    e. Number of jobs created;
    f. Percentage change in earnings as a result of employment for 
those participants;
    g. Number of participants trained;
    h. Percent of participants trained who find a job;
    i. Number of new businesses created;
    j. Number of existing businesses assisted; and
    k. Annual estimated savings for low-income families as a result of 
energy efficiency improvements.
    l. Increase in program accomplishments as a result of capacity 
building assistance (e.g. number of employees hired or retained, 
efficiency or effectiveness of services provided); and
    m. Increase in organizational resources as a result of assistance 
(e.g., dollars leveraged). If you receive an award of funds, you will 
be required to use the logic model to report progress against the 
proposed outcomes in your approved application and award agreement.
    The applicant's proposed budget must reflect a breakdown of 
estimated dollar amount of the Rural Housing and Economic Development 
grant to be expended on each of the activities/outputs and the 
anticipated results included on the HUD-96010 ``Logic Model'' and under 
the Rating Factor 5 section of your application.
6. RC/EZ/EC-II Bonus Points (2 Points)
    HUD will award two bonus points to all applications that include 
documentation stating that the proposed eligible activities/projects 
will be located in and serve federally designated renewal community 
(RCs), empowerment zone (EZs), or enterprise communities (ECs) 
designated by the United States Department of Agriculture (USDA) in 
round II RC/EZ/EC. A listing of federally designated RC/EZ/EC-II is 
available on the Internet at http://www.hud.gov/crlocator.
    This notice contains a certification (HUD-2990) that must be 
completed for the applicant to be considered for Rural EZ/Round II EC 
bonus points.

B. Review and Selection Process

1. Application Selection Process
    a. Rating and Ranking.
    (1) General. To review and rate applications, HUD may establish 
panels which may include outside experts or consultants to obtain 
certain expertise and outside points of view, including views from 
other federal agencies.
    (2) Rating. All applicants for funding will be evaluated against 
applicable criteria. In evaluating applications for funding, HUD will 
take into account an applicant's past performance in managing funds, 
including the ability to account for funds appropriately; its timely 
use of funds received either from HUD or other federal, state or local 
programs; its success in meeting performance targets for completion of 
activities; and the number of persons to be served or targeted for 
assistance. HUD may use information relating to these items based on 
information at hand or available from public sources such as 
newspapers, Inspector General or Government Accounting Office reports 
or findings, hotline complaints that have been found to have merit, or 
other such sources of information. In evaluating past performance, HUD 
will deduct points from rating scores as specified under Rating Factor 
1.
    (3) Ranking. Applicants will be selected for funding in accordance 
with their rank order. An application must receive a minimum score of 
75 points to be eligible for funding. If two or more applications are 
rated fundable and have the same score, but there are insufficient 
funds to fund all of them, the application(s) with the highest score 
for Rating Factor 2 will be selected. If applications still have the 
same score, the highest score in the following factors will be selected 
sequentially until one highest score can be determined: Rating Factor 
3, Rating Factor 1, Rating Factor 5, and Rating Factor 4.
    a. Initial screening. During the period immediately following the 
application deadline, HUD will screen each

[[Page 11911]]

application to determine eligibility. Applications will be rejected if 
they:
    (1) Are submitted by ineligible applicants;
    (2) Do not serve an eligible rural area as defined in Section III 
of this NOFA;
    (3) Do not meet the objectives of the Rural Housing and Economic 
Development program; or
    (4) Propose a project for which the majority of the activities are 
ineligible.
    b. Rating Factors for Award Used to Evaluate and Rate Applications. 
The factors for rating and ranking applicants and the maximum points 
for each factor are provided above. The maximum number of points for 
this program is 102. This includes 100 points for all five rating 
factors and two RC/EZ/EC-II bonus points, as described above.
    c. Environmental Review. Each application constitutes an assurance 
that the applicant agrees to assist HUD in complying with the 
provisions set forth in 24 CFR part 50. Selection for award does not 
constitute approval of any proposed site. Following selection for 
award, HUD will perform an environmental review of activities proposed 
for assistance under this part, in accordance with 24 CFR part 50. The 
results of the environmental review may require that proposed 
activities be modified or that proposed sites be rejected. Applicants 
are particularly cautioned not to undertake or commit HUD funds for 
acquisition or development of proposed properties (including 
establishing lines of credit that permit financing of such activities 
or making commitments for loans that would finance such activities from 
a revolving loan fund capitalized by funds under this NOFA) prior to 
HUD approval of specific properties or areas. Each application 
constitutes an assurance that you, the applicant, will assist HUD in 
complying with part 50; will supply HUD with all available relevant 
information to perform an environmental review for each proposed 
property; will carry out mitigating measures required by HUD or select 
alternate property; and will not acquire, rehabilitate, convert, 
demolish, lease, repair, or construct property, or commit or expend HUD 
or local funds for these program activities with respect to any 
eligible property until HUD approval of the property is received. In 
supplying HUD with environmental information, grantees must use the 
guidance provided in Notice CPD 05-07, entitled ``Field Environmental 
Review Processing for Rural Housing and Economic Development (RHED) 
Grants,'' issued August 30, 2005, which can be found at http://www.hud.gov/offices/cpd/energyenviron/environment/lawsandregs/notices.cfm. HUD's funding commitment is contingent upon HUD's site 
approval following an environmental review.
    d. Adjustments to Funding.
    (1) HUD will not fund any portion of your application that is 
ineligible for funding and does not meet the requirements of this NOFA, 
or is duplicative of other funded programs or activities from prior 
year awards or other selected applicants. Only the eligible non-
duplicative portions of your application may be funded.
    (2) HUD reserves the right to utilize this year's funding to fund 
previous years' errors prior to rating and ranking this year's 
applications.
    (3) If a balance remains, HUD reserves the right to utilize those 
funds toward the following year's awards.
    (4) Please see the Section VI.A.3 of the General Section for more 
information about funding.
    (5) Performance and Compliance Actions of Funding Recipients. HUD 
will measure and address the performance and compliance actions of 
funding recipients in accordance with the applicable standards and 
sanctions of the Rural Housing and Economic Development program.
    e. Corrections to Deficient Applications. After the application due 
date, HUD may not, consistent with its regulations in 24 CFR part 4, 
subpart B, consider any unsolicited information you, the applicant, may 
want to provide. HUD may contact you to clarify an item in your 
application or to correct technical deficiencies. See Section V.B. of 
the General Section for more detailed information on this topic.

VI. Award Administration Information

    A. Award Notice. Successful Rural Housing and Economic Development 
program applicants will be notified of grant award and will receive 
post-award instructions by mail.
    B. Administrative and National Policy Requirements. In addition to 
the requirements listed below, please review all requirements in 
Section III of the General Section.
    1. Lead-Based Paint Hazard Control. All property assisted under the 
Rural Housing and Economic Development program is covered by the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and HUD's 
implementing regulations at 24 CFR part 35.
    2. Procurement of Recovered Materials. See the General Section for 
further information.
    3. Executive Order 13202, ``Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects.'' (See the 
General Section for further information.)
    4. Audit Requirements. Any grantee that expends $500,000 or more in 
federal financial assistance in a single year (this can be program year 
or fiscal year) must meet the audit requirements established in 24 CFR 
parts 84 and 85 in accordance with OMB A-133.
    5. Accounting System Requirements. The Rural Housing and Economic 
Development program requires that successful applicants have in place 
an accounting system that meets the policies, guidance, and 
requirements described in the following applicable OMB Circulars and 
Code of Federal Regulations:
    a. OMB Circular A-87 (Cost Principles for State, Local and Indian 
Tribal Governments);
    b. OMB Circular A-122 (Cost Principles for Non-Profit 
Organizations);
    c. OMB Circular A-133 (Audits of States, Local Governments, and 
Non-Profit Organizations);
    d. 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Non-Profit Organizations); and
    e. 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally recognized Indian 
tribal governments).
    C. Reporting. Reporting documents apply to the award, acceptance 
and use of assistance under the Rural Housing and Economic Development 
program and to the remedies for noncompliance, except when inconsistent 
with HUD's Appropriation Act, or other federal statutes or the 
provisions of this NOFA.
    For each reporting period, as part of your required report to HUD, 
grantees must include a completed Logic Model (Form HUD 96010), which 
identifies output and outcome achievements. The Return on Investment 
concept will be addressed further in a subsequent notice (see section 
V., Rating Factor 5 of this NOFA for further information). If you are 
reporting race and ethnic data, you must use Form HUD-27061, Race and 
Ethnic Data Reporting Form.
    D. Debriefing. See the General Section for information on how to 
obtain a debriefing on your application review and evaluation.

VII. Agency Contact(s)

    Further Information and Technical Assistance. For information 
concerning the HUD Rural Housing and Economic Development program, 
contact Mr. Thann Young, Community Planning and Development Specialist, 
or Ms. Linda L.

[[Page 11912]]

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

VIII. Other Information

    A. Satellite Broadcast. HUD will hold an information webcast via 
satellite for potential applicants to learn more about the program and 
preparation of an application. For more information about the date and 
time of this webcast, consult the HUD Web site at http://www.hud.gov.
    B. The Paperwork Reduction Act. The information collection 
requirements contained in this document have been approved by the 
Office of Management and Budget (OMB) under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2506-
0169. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor and a person is not required to respond to a 
collection of information, unless it displays a currently valid OMB 
control number. Public reporting burden for the collection of 
information is estimated to average 100 hours per annum per respondent 
for the application and grant administration. This includes the time 
for collecting, reviewing and reporting the data for the application, 
semi-annual reports, and final report. The information will be used for 
grantee selection and monitoring the administration of funds.

BILLING CODE 4210-01-P

[[Page 11913]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.021


[[Page 11914]]



Resident Opportunity and Self-Sufficiency (ROSS) Elderly/Persons With 
Disabilities Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title: Resident Opportunity and Self-
Sufficiency (ROSS)--Elderly/Persons with Disabilities Program (formerly 
known as Resident Services Delivery Model--Elderly/Persons with 
Disabilities).
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number for this 
NOFA is FR-5030-N-30. The OMB approval number is 2577-0229.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 
Resident Opportunity and Self Sufficiency, 14.876.
    F. Dates: The application deadline date is July 13, 2006. 
Applications submitted through http://www.grants.gov must be received 
and validated by grants.gov no later than 11:59:59 Eastern time on the 
application deadline date.
    G. Additional Overview Content Information: 1. Purpose of Program: 
The purpose of the ROSS--Elderly/Persons with Disabilities Program is 
to provide grants to public housing agencies (PHAs), tribes/tribally 
designated housing entities (TDHEs), Resident Associations (RAs), and 
nonprofit organizations (including grassroots, faith-based and other 
community-based organizations), for the delivery and coordination of 
supportive services and other activities designed to help improve the 
living conditions of public and Indian housing residents who are 
elderly and/or disabled. Applicants should be aware that receipt of 
grant funds in no way guarantees further funding beyond the three-year 
grant term and should be sure that services commenced pursuant to this 
grant will be sustained independently in the future or that the 
cessation of these activities will not negatively impact residents. 
This is especially important for any meal programs to meet residents' 
nutritional needs.
    2. Funding Available: A total of approximately $10 million is 
available for ROSS--Elderly/Persons with Disabilities grants in fiscal 
year 2006.
    3. Award Amounts: Awards, depending on the grant category, unit 
count and type of grantee, will range from $100,000 to $300,000. Grant 
awards must be used in two ways: one portion for the salaries and 
fringe benefits of a Project Coordinator; and one portion for direct 
delivery of a supportive service to the targeted elderly/disabled 
resident population. Please see the funding breakdown chart below.
    4. Eligible Applicants. Eligible applicants are PHAs; tribes/TDHEs; 
nonprofit organizations including grassroots faith-based and other 
community-based organizations that have resident support or the support 
of tribes; and RAs. The term ``resident association'' or ``RA'' will be 
used to refer to all types of eligible resident organizations. Please 
see the section on ``Definition of Terms'' for a complete definition of 
each type of eligible resident organization.
    5. Cost Sharing/Match Requirement: At least 25 percent of the 
requested grant amount is required as a match. The match may be in cash 
and/or in-kind donations. The match is a threshold requirement.
    6. Grant term. The grant term is three years from the execution 
date of the grant agreement.

----------------------------------------------------------------------------------------------------------------
                                                                                     Maximum grant amount (units
                                                                                       refers to the number of
           Grant program                 Total  funding        Eligible applicants    units occupied by elderly/
                                                                                      disabled, as indicated on
                                                                                        ROSS Fact Sheet (HUD-
-----------------------------------------------------------------------------------------------52751))----------
ROSS--Elderly/ Persons with          $10 million...........  PHAs..................  $180,000 for PHAs with 1-
 Disabilities.                                                                        217 units.
                                                                                     $240,000 for PHAs with 218-
                                                                                      1,155 units.
                                                                                     $300,000 for PHAs with
                                                                                      1,156 or more units.
                                                             Resident Associations.  $100,000
                                                             Non-profit entities...  $100,000 per RA; Maximum
                                                                                      award is $300,000.
                                                             Tribes/TDHEs..........  $180,000 for Tribes/TDHEs
                                                                                      with 1-217 units.
                                                                                     $240,000 for Tribes/TDHEs
                                                                                      with 218-1,155 units.
                                                                                     $300,000 for Tribes/TDHEs
                                                                                      with 1,156 or more units.
----------------------------------------------------------------------------------------------------------------

    Grant awards must be used in two ways: one portion for the salaries 
and fringe benefits of a Project Coordinator; and one portion for 
direct delivery of high priority supportive services to the targeted 
elderly/disabled resident population. The applicant may use up to 
$50,000 maximum per year and in accordance with local wage standards 
(see Funding Restrictions) for the salary and fringe benefits of a 
Project Coordinator. Additionally, the applicant may use funds for 
delivery of services. The application must demonstrate (in rating 
factor 2) that these services are of a high priority for the targeted 
elderly/disabled residents and that another funding source is not 
available, therefore meriting funding under this grant.

Full Text of Announcement

I. Funding Opportunity Description

A. Purpose

    The purpose of the ROSS--Elderly/Persons with Disabilities Program 
is to provide grants to public housing agencies (PHAs), Tribes/Tribally 
Designated Housing Entities (TDHEs), Resident Associations (RAs), and 
nonprofit organizations (including grassroots, faith-based and other 
community-based organizations) for the delivery and coordination of 
supportive services and other activities designed to help improve the 
living conditions of public and Indian housing residents who are 
elderly and/or disabled. Please note that no elderly individual or 
person with a disability may be required to take services.

B. Definition of Terms

    1. City-Wide Resident Organization consists of members from 
Resident Councils, Resident Management Corporations, and Resident 
Organizations who reside in public housing developments that are owned 
and operated by the same PHA within a city.
    2. Community Facility means a non-dwelling structure that provides 
space for multiple supportive services for the benefit of public and/or 
Indian housing residents eligible for the services provided.
    3. Contract Administrator (CA) means an overall grant administrator 
and/or a financial management agent that oversees the implementation of 
the grant and/or the financial aspects of the grant. (See the 
``Threshold

[[Page 11915]]

Requirements'' and ``Program Requirements'' sections for more 
information.) All nonprofit applicants, all RAs, and PHAs that are 
troubled at time of application must have a CA and are required, per 
the Threshold Section, to submit a signed Contract Administrator 
Partnership Agreement. The agreement must be for the entire grant term. 
The CA must assure that the financial management system and procurement 
procedures that will be in place during the grant term will fully 
comply with either 24 CFR part 84 or 85, as appropriate. CAs are 
expressly forbidden from accessing HUD's Line of Credit Control System 
(LOCCS) and submitting vouchers on behalf of grantees. CAs must also 
assist PHAs to meet HUD's reporting requirements. CAs may be: Local 
housing agencies; community-based organizations such as community 
development corporations (CDCs), churches, temples, synagogues, 
mosques; nonprofit organizations; state/regional associations and 
organizations. Troubled PHAs are not eligible to be contract 
administrators. Grant writers who assist applicants in preparing their 
ROSS applications are also ineligible to be contract administrators. 
Organizations that the applicant proposes to use as the CA must not 
violate or be in violation of other conflicts of interest as defined in 
24 CFR part 84 and 24 CFR part 85.
    4. Elderly person means a person who is at least 62 years of age.
    5. Jurisdiction-Wide Resident Organization means an incorporated 
nonprofit organization or association that meets the following 
requirements:
    a. Most of its activities are conducted within the jurisdiction of 
a single housing authority;
    b. There are no incorporated resident councils or resident 
management corporations within the jurisdiction of the single housing 
authority;
    c. It has experience in providing start-up and capacity-building 
training to residents and resident organizations; and
    d. Public housing residents representing unincorporated resident 
councils within the jurisdiction of the single housing authority must 
comprise a majority of the board of directors.
    6. Tribally Designated Housing Entity (TDHE) is an entity 
authorized or established by one or more Indian tribes to act on behalf 
of each such tribe authorizing or establishing the housing entity.
    7. Indian Tribe means any tribe, band, nation, or other organized 
group of a community of Indians, including any Alaska native village, 
regional, or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act, and that is recognized as 
eligible for the special programs and services provided by the United 
States to Indians because of their status as Indians pursuant to the 
Indian Self Determination and Education Act of 1975 or any state-
recognized tribe eligible for assistance under section 4(12)(C) of 
NAHASDA.
    8. Intermediary Resident Organizations means jurisdiction-wide 
resident organizations, citywide resident organizations, statewide 
resident organizations, regional resident organizations, and national 
resident organizations.
    9. NAHASDA-assisted resident means a resident of tribal housing (as 
defined above) who has been assisted by the Native American Housing 
Assistance and Self-Determination Act (NAHASDA) of 1996.
    10. National Resident Organization (NRO) is an incorporated 
nonprofit organization or association for public housing that meets 
each of the following requirements:
    a. It is national in that it conducts activities or provides 
services in at least two HUD areas or two states;
    b. It has the capacity to provide start-up and capacity-building 
training to residents and resident organizations; and
    c. Public housing residents representing different geographical 
locations in the country are members of the board of directors.
    11. Nonprofit organization is an organization that is exempt from 
federal taxation. A nonprofit organization can be organized for the 
following purposes: charitable, religious, educational, scientific, or 
other similar purposes in the public interest. In order to qualify, an 
organization must be a corporation, community chest, fund, or 
foundation. An individual or partnership will not qualify. To obtain 
nonprofit status, qualified organizations must file an application with 
the Internal Revenue Service (IRS) and receive designation as such by 
the IRS. For more information, go to http://www.irs.gov. Applicants who 
are in the process of applying for nonprofit status, but have not yet 
received nonprofit designation from the IRS, will not be considered 
nonprofit organizations. All nonprofit applicants must submit their IRS 
determination letter to prove their nonprofit (e.g., 501(c)(3)) status. 
Please see the section on ``Threshold Requirements'' for more 
information. Nonprofit applicants must also provide letters of support 
as described in the ``Threshold Requirements'' section.
    12. National nonprofit organizations work on a national basis and 
have the capacity to mobilize resources on both a national and local 
level. All nonprofit applicants must submit their IRS determination 
letter to prove their nonprofit (e.g., 501(c)(3)) status. National 
nonprofit applicants must also provide letters of support as outlined 
in the ``Threshold Requirements'' section.
    13. Past Performance is a threshold requirement. Using Rating 
Factor 1, HUD's field offices will evaluate applicants for past 
performance to determine whether an applicant has the capacity to 
manage the grant for which they are applying. The area Office of Native 
American Programs (ONAP) will review past performance for tribal/TDHE 
submissions. Field offices will evaluate the past performance of 
contract administrators for applicants required to have one.
    14. Person with disabilities: This NOFA uses the definition of 
person with disabilities found at 24 CFR 5.403.
    15. Project Coordinator is responsible for coordinating the 
grantee's approved activities to ensure that grant goals and objectives 
are met. A qualified Project Coordinator is someone with experience 
managing projects and preferably has experience working with supportive 
services. Project Coordinators and grantees are responsible for 
ensuring that all federal requirements are followed.
    16. Resident Association (RA) means any or all of the forms of 
resident organizations as they are defined elsewhere in this 
Definitions section and includes Resident Councils (RCs), Resident 
Management Corporations (RMCs), City-Wide Resident Organizations, 
Regional Resident Organizations (RROs), Statewide Resident 
Organizations (SROs), Jurisdiction-Wide Resident Organizations, and 
National Resident Organizations (NROs), Resident Organization (RO) for 
tribal entities, Site-Based Resident Associations, and Tribal/TDHE 
Resident Groups. The NOFA will use ``Resident Association'' or ``RA'' 
to refer to all eligible types of resident organizations. See 24 CFR 
964.115 for more information.
    17. Regional Resident Organization (RRO) means an incorporated 
nonprofit organization or association for public housing that meets 
each of the following requirements:
    a. The RRO is regional i.e., not limited to HUD-defined regions);
    b. The RRO has experience in providing start-up and capacity-
building training to residents and resident organizations; and

[[Page 11916]]

    c. Public housing residents representing different geographical 
locations in the region must comprise the majority of the board of 
directors.
    18. Resident Management Corporation (RMC) means an entity that 
proposes to enter into, or enters into a contract to conduct one or 
more management activities of a PHA and meets the requirements of 24 
CFR 964.120.
    19. Resident Organization (RO) for tribal entities means an 
incorporated or unincorporated nonprofit tribal organization or 
association that meets each of the following criteria:
    a. Consists of residents only, and only residents may vote;
    b. If it represents residents in more than one development or in 
all of the developments of the tribal/TDHE community, it shall fairly 
represent residents from each development that it represents;
    c. Adopts written procedures providing for the election of specific 
officers on a regular basis; and
    d. Has an elected governing board.
    20. Secretary means the Secretary of Housing and Urban Development.
    21. Site-Based Resident Associations means resident councils or 
resident management corporations representing a specific public housing 
development.
    22. Supportive Services means activities including but not limited 
to:
    a. Meal services adequate to meet nutritional need;
    b. Assistance with activities of daily living (ADLs);
    c. Wellness programs; and
    d. Congregate services.
    23. Statewide Resident Organization (SRO) is an incorporated 
nonprofit organization or association for public housing that meets the 
following requirements:
    a. The SRO is statewide;
    b. The SRO has experience in providing start-up and capacity-
building training to residents and resident organizations; and
    c. Public housing residents representing different geographical 
locations in the state must comprise the majority of the Board of 
Directors.
    24. Tribal/TDHE Resident Group means tribal/TDHE resident groups 
that are democratically elected groups such as IHA-wide resident 
groups, area-wide resident groups, single development groups, or 
resident management corporations (RMCs).

C. Regulations Governing the ROSS Grant

    ROSS-Elderly/Persons with Disabilities is governed by 24 CFR part 
964.

II. Award Information

A. Performance Period and Award Type

    1. Grant Period. Three years. The grant period shall begin the day 
the grant agreement and the form HUD-1044, ``Assistance Award/
Amendment,'' are signed by both the grantee and HUD.
    2. Grant Extensions. Requests to extend the grant term beyond the 
grant term must be submitted in writing to the local HUD field office 
or area ONAP at least 90 days prior to the expiration of the grant 
term. Requests must explain why the extension is necessary, what work 
remains to be completed, and what work and progress has been 
accomplished to date. Extensions may be granted only once by the field 
office or area ONAP for a period not to exceed six months and may be 
granted for a further six months by the Headquarters Program Office at 
the request of the Field Office or Area ONAP.
    3. Type of Award. Grant agreement.
    4. Subcontracting. Subcontracting is permitted. Grantees must 
follow federal procurement regulations found in HUD regulations at 24 
CFR Part 84.40-84.48 and 24 CFR 85.36.

B. Funding Amounts

    1. Total Funding. The Department expects to award approximately 
$10,000,000 under this funding category of ROSS.
    Awards will be made as follows:
    a. PHAs must use the number of conventional public housing units 
occupied by elderly and disabled residents as of September 30, 2005, 
per their budget to determine the maximum grant amount they are 
eligible for in accordance with the categories listed below. PHAs 
should clearly indicate the number of conventional public housing units 
occupied by elderly and disabled residents under their Annual 
Contributions Contract on the Fact Sheet.

------------------------------------------------------------------------
    Number of conventional  units occupied by elderly and       Maximum
                  persons with disabilities                     funding
------------------------------------------------------------------------
1-217 units.................................................    $180,000
218-1,155 units.............................................     240,000
1,156 or more units.........................................     300,000
------------------------------------------------------------------------

    b. The maximum grant award is $100,000 for each RA.
    c. Nonprofits are eligible applicants if they are representing or 
acting at the behest of an RA. Accordingly, nonprofit applicants must 
show support from that RA. Nonprofit organizations that have support 
from an RA are limited to $100,000 for each RA. A nonprofit 
organization may submit a single application for no more than three 
different RAs from the same PHA. A nonprofit organization may not 
receive more than $300,000 in FY 2006 ROSS-Elderly/Disabled grant 
funding. Nonprofit organizations may submit more than one application 
provided they target residents of distinct PHAs or tribes/TDHEs. In 
cases where nonprofit applicants are not able to obtain support from 
RAs, they must obtain letters of support from PHAs and/or tribes/TDHEs 
and they may also submit a letter of support from one or more of the 
following: Resident Advisory Boards (RABs), local civic organizations, 
or units of local government.

    Note: All nonprofit applicants that do not include a letter of 
support from an RA must include a letter of support from a PHAs. or 
tribes/TDHEs. Please see Threshold Requirements for more information 
Support letters must indicate the developments to be served by the 
nonprofit organization. Funding for nonprofit applicants that do not 
receive letters of support from RAs will be determined as follows. 
Support letters must indicate the developments to be served by the 
nonprofit organization as well as the number of conventional public 
housing units occupied by elderly and persons with disabilities.


------------------------------------------------------------------------
 Number of conventional units  occupied by elderly/disabled     Maximum
                          residents                             funding
------------------------------------------------------------------------
1-217 units.................................................    $180,000
218-1,155 units.............................................     240,000
1,156 or more units.........................................     300,000
------------------------------------------------------------------------

    Applicants should see the General Section of the SuperNOFA for 
instructions on submitting support letters and other documentation with 
their electronic application.
    d. Tribes/TDHEs should use the number of units occupied by elderly 
and persons with disabilities counted as Formula Current Assisted Stock 
for Fiscal Year 2005 as defined in 24 CFR part 1000.316. Tribes/TDHEs 
are eligible for the same amounts as PHAs within each category in (a) 
above. Tribes that have not previously received funds from the 
Department under the 1937 Housing Act should count housing units under 
management that are owned and operated by the Tribe, identified in 
their housing inventory as of September 30, 2005, and occupied by 
elderly/disabled residents. Tribes should clearly indicate the number 
of units under management occupied by elderly/disabled residents on the 
Fact Sheet.

III. Eligibility Information

A. Eligible Applicants

    PHAs, tribes/TDHEs, RAs, and nonprofit organizations (including 
those nonprofit organizations supported by

[[Page 11917]]

resident organizations or PHAs, tribes/TDHEs and RABs). PHAs that are 
recipients of the Elderly/Disabled Renewal Service Coordinator funding 
through Operating Subsidy are not eligible to apply for this ROSS 
funding category. If you are unsure if your organization falls into 
this category, please contact the Public and Indian Housing Information 
and Resource Center at 800-955-2232.

B. Cost Sharing or Matching

    Information for All Applicants: Match is a threshold requirement. 
Applicants who do not demonstrate that they have a match of 25% of the 
total requested grant amount will fail the threshold requirement and 
will not receive further consideration for funding.

C. Other

    1. Eligible Activities. Applicants should propose implementing 
comprehensive programs within the three-year grant term, which will 
result in improved living conditions for the elderly/persons with 
disabilities population. Improved living conditions may mean, but is 
not limited to, aging-in-place or assistance to live independently. 
Proposals should involve partnerships with organizations that will help 
grantees provide enhanced services to the elderly/persons with 
disabilities they will serve. All applicants must complete a 
descriptive narrative and work plan and a Logic Model covering the 
three-year grant term. Proposed grant activities should build on the 
foundation created by previous ROSS grants or other federal, state, and 
local efforts to assist these populations. Eligible activities include 
but are not limited to the following:
    a. Hiring of a qualified Project Coordinator to run the grant 
program. A qualified Project Coordinator should have at least two years 
of experience managing programs and have experience working with 
supportive services. The Project Coordinator is responsible for:
    (1) Assessing participating residents' needs for supportive 
services (e.g., Medicaid, Medicare, physician care, food stamps, 
rehabilitation services, veterans disability, state-funded programs 
such as nurse case management, housekeeping, Meals-on-Wheels, 
transportation, etc.);
    (2) Designing, coordinating, referring to and delivering, as 
relevant, grant activities based on residents' needs, such as those 
activities listed below;
    (3) Monitoring the progress of program participants and evaluating 
the overall success of the program. A portion of grant funds should be 
reserved to ensure that evaluations can be completed for all 
participants who received assistance through this program. Project 
Coordinators and grantees are responsible for ensuring that all federal 
requirements are followed.
    b. Coordination, referral to, and delivery of meal services 
adequate to meet nutritional needs (i.e., not related to entertainment 
activities);
    c. Coordination, referral to, and delivery of transportation 
services including purchase, rental or lease of a vehicle for the 
grantee and limited in use for program purposes;
    d. Coordination, set-up and referral to assistance with daily 
activities (ADLs);
    e. Coordination, set-up and referral to housekeeping assistance;
    f. Coordination, referral to, and delivery of wellness programs 
including but not limited to health and nutrition programs, preventive 
health education, referral to rehabilitation services, structured 
programs to build social support, services for the disabled, and other 
community resources;
    g. Coordination, set-up and referral to personal emergency 
response;
    h. Coordination, referral to, and delivery of congregate services--
includes supportive services provided in a congregate setting at a 
conventional public housing development; and
    i. Coordination, referral to, and delivery of case management;
    j. Coordination and referral to health services (e.g., medical and 
dental check-ups);
    k. Coordination, referral, and delivery of job training 
opportunities under Section 3 of the Housing and Urban Development Act 
of 1968;
    l. Coordination and referral of residents to employment 
opportunities under Section 3 of the Housing and Urban Development Act 
of 1968;
    m. Salary and fringe benefits of direct services staff;
    n. Lease or rental of space for program activities, but only under 
the following conditions:
    (1) The lease must be for existing facilities not requiring 
rehabilitation or construction;
    (2) No repairs or renovations of the property may be undertaken 
with Federal funds; and
    (3) Properties in the Coastal Barrier Resources System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased or rented with Federal Funds.
    o. Administrative Costs, for all applicants, may include, but are 
not limited to, purchase of furniture, office equipment and supplies, 
local travel, utilities, printing, postage and lease or rental of space 
for program activities (subject to the lease restrictions in the 
preceding paragraph). To the maximum extent practicable, when leasing 
space or purchasing equipment or supplies, business opportunities 
should be provided to businesses under Section 3 of the Housing and 
Urban Development Act of 1968. Administrative costs must not exceed 10 
percent of the total grant costs;
    p. Staff training;
    q. Long-distance travel (subject to funding restrictions); and
    r. Evaluation costs for the grant program.
    2. Threshold Requirements. The criteria below apply to all 
applicants unless otherwise indicated. Additional information about 
threshold requirements may also be found in the General Section. 
Applicants must respond to each threshold requirement clearly and 
thoroughly by following the instructions below. If the application 
fails any threshold requirement it will be considered a failed 
application and will not receive consideration for funding.
    a. Match. All applicants are required to have in place firm match 
commitments, either in cash or in-kind, for 25 percent of the requested 
grant amount, as defined in this NOFA. Joint applicants must together 
have at least a 25 percent match of the requested grant amount. 
Applicants who do not demonstrate the minimum 25 percent match of the 
requested grant amount will fail this threshold requirement and will 
not receive further consideration for funding. If you are applying for 
more than one category of ROSS grant (i.e., ROSS-Family & 
Homeownership), you must use different sources of match donations for 
each grant application. Additionally, you must indicate which other 
ROSS grant(s) you are applying for by attaching a page to HUD budget 
form 424-CBW stating the sources and amounts of each of your match 
contributions for this application as well as any other HUD programs to 
which you are applying. Match donations must be firmly committed, which 
means that the amount of match resources and their dedication to ROSS-
funded activities must be explicit, in writing, and signed by a person 
authorized to make the commitment. Letters of commitment, memoranda of 
understanding (MOUs), or tribal resolutions must be on organization 
letterhead, and signed by a person authorized to make the stated 
commitment, whether it be in cash or in-kind services. The letters of 
commitment/MOUs/tribal resolutions

[[Page 11918]]

must indicate the total dollar value of the commitment and be dated 
between the publication date of this NOFA and the application deadline 
published in this NOFA, or the amended deadline and indicate how the 
commitment will relate to the proposed program. The commitment must be 
available at time of award. Match that is proposed for ineligible 
activities will not be accepted. Although ineligible as a use of grant 
funds for applicants, the direct delivery of ADLs, housekeeping, and 
personal emergency response will be accepted as match if provided by a 
partner. Applicants proposing to use their own non-ROSS grant funds to 
meet the match requirement in whole or in part, must also include a 
letter of commitment indicating the type of match (cash or in-kind) and 
how the match will be used. Please see the General Section for 
instructions for submitting the required letters with your electronic 
application.
    Committed amounts in excess of the 25 percent of the requested 
grant amount may be considered as leveraged funds for higher points 
under Rating Factor 4.
    (1) The value of volunteer time and services shall be computed by 
using the normal professional rate for the local area or the national 
minimum wage rate of $5.15 per hour (Note: applicants may not count 
their staff time toward the match);
    (2) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation stating 
the value of the contribution.
    (3) Other resources/services that can be committed include: In-kind 
services provided to the applicant; funds from federal sources (not 
including ROSS funds) as allowed by statute, including for example 
Community Development Block Grant (CDBG) funds or Indian Housing Block 
Grant (IHBG) funds; funds from any state or local government sources; 
and funds from private contributions. Applicants may also partner with 
other program funding recipients to coordinate the use of resources in 
the target area.
    b. Past Performance. HUD's field offices will evaluate data 
provided by applicants under Rating Factor 1 as well as applicants' 
past performance to determine whether applicants have the capacity to 
manage the grant for which they are applying. The area Offices of 
Native American Programs (ONAPs) will review past performance for 
tribal and TDHE submissions. Field offices will evaluate the contract 
administrators' past performance for applicants required to have a 
contract administrator. In evaluating past performance, HUD will look 
at the applicant's record of completing grant activities on time, 
within budget, and the results achieved. Using Rating Factor 1, the 
field office/area ONAP will evaluate applicants' past performance. 
Applicants should carefully review and respond to Rating Factor 1 to 
ensure their applications address each of the criteria. If applicants 
fail to address what is requested in Rating Factor 1, their 
applications will fail this threshold and will not receive further 
consideration.
    c. Contract Administrator Partnership Agreement. All nonprofit 
applicants, all RAs, and troubled PHAs (troubled as of the application 
deadline) are required to submit a signed Contract Administrator 
Partnership Agreement. The agreement must be for the entire grant term. 
Applicants required to have a Contract Administrator Partnership 
Agreement that fail to submit one will fail this threshold requirement 
and will not receive further consideration for funding. See the 
Definitions, and Program Requirements Sections of this NOFA more 
information on Contract Administrators. See the General Section for 
instructions on submitting the information electronically.
    Troubled PHAs are not eligible to be contract administrators. Grant 
writers who assist applicants in preparing their ROSS applications are 
also ineligible to be contract administrators.
    d. Letters of Support for Nonprofit Applicants.
    (1) All nonprofit applicants must include one or more letters of 
support from RAs, Resident Advisory Boards (RABs), local civic 
organizations, or units of local government. If the RAs are inactive, 
or applicants submit letters of support from other organizations such 
as RABs, then a nonprofit applicant must also submit an accompanying 
letter of support from the PHA or tribe/TDHE. indicating support for 
their application. All letters of support must be signed by an 
authorized representative of the supporting organization and dated 
within two months of the application deadline published in this NOFA. 
Please note that in the event that the deadline date changes, the 
letters may be dated within two months of either the original or the 
amended deadline date.
    (2) Nonprofit applicants that do receive support from RAs must also 
submit form HUD-52754 ``List of Resident Associations Supporting 
Nonprofit Applicants.'' Submitting this form is not applicable where 
RAs are inactive or where applicants do not submit letters of support 
from RAs.
    (3) In cases where nonprofit organizations are applying to serve 
tribes/TDHEs, nonprofit applicants must submit letters of support from 
tribes/TDHEs. Nonprofit organizations must also use form HUD-52754 to 
list which tribes/TDHEs support their application.
    (4) Letters of support from RAs or RABs must describe to what 
extent they are familiar with the nonprofit applicant and indicate 
their support and understanding of the nonprofit organization's 
application. Letters from RAs/RABs must include contact information and 
the name and title of the person authorized to sign for the 
organization and should, whenever possible, be on RA/RAB letterhead. If 
RA/RAB letterhead is not available, the letter may be submitted on PHA 
letterhead.
    (5) Letters of support from civic organizations or units of local 
government must describe to what extent they are familiar with the 
nonprofit applicant and which programs the nonprofit applicant has 
operated or managed in the community that are similar to the 
applicant's application. Such letters of support must include contact 
information and the name and title of the person authorized to sign for 
the organization. The letter should be on organization letterhead.
    (6) All nonprofit applicants that do not provide letters of support 
from RAs or RABs must provide letters of support from PHAs or tribes/
TDHEs with jurisdiction over the developments the applicant proposes to 
serve. Letters from PHAs or tribes/TDHEs must describe the extent to 
which the nonprofit applicant is familiar with the needs of the 
community to be served, which programs the nonprofit applicant has 
operated or managed in the community that are similar to the 
applicant's proposal, and whether the nonprofit organization has the 
capacity to implement its proposed program. Letters from PHAs or 
tribes/TDHEs must also list the names of the developments to be served, 
certify the number of conventional units occupied by elderly/persons 
with disabilities in those developments, and identify the ROSS funding 
category to which the nonprofit organization is applying. PHA or tribe/
TDHE letters of support must be signed by the Executive Director, 
tribal leader, or authorized designee and must be on PHA or tribe/TDHE 
letterhead. Please see the General Section of the SuperNOFA for 
instructions for submitting the required letters with your electronic 
application.

[[Page 11919]]

    (7) Applications from nonprofit organizations that do not submit 
the information requested in this section will fail this threshold 
requirement and will not be considered for funding.
    e. Nonprofit status. All nonprofit applicants must submit their IRS 
determination letter to prove their nonprofit (e.g., 501(c)(3)) status. 
Applicants that fail to submit this letter will fail this threshold 
requirement and will not be considered for funding. Please see the 
General Section of the SuperNOFA for instructions for submitting the 
required documentation with your electronic application.
    f. Minimum Score for All Fundable Applications. Applications that 
pass all threshold requirements and go through the ranking and rating 
process must receive a minimum score of 75 in order to be considered 
for funding.
    g. General Section Thresholds. All applicants will be subject to 
all Thresholds requirements listed in the General Section.
    h. The Dun and Bradstreet Universal Numbering System (DUNS) Number 
Requirement. Refer to the General Section for information regarding the 
DUNS requirement. You will need to obtain a DUNS number to receive an 
award from HUD. See the General Section for a discussion of the 
Grants.gov registration process.
    3. Program Requirements
    a. Contract Administrator. The contract administrator must assure 
that the financial management system and procurement procedures that 
will be in place during the grant term will fully comply with either 24 
CFR part 84 or 85, as appropriate. CAs are expressly forbidden from 
accessing HUD's Line of Credit Control System (LOCCS) and submitting 
vouchers on behalf of grantees. Contract administrators must also 
assist grantees to meet HUD's reporting requirements. Contract 
administrators may be: Local housing agencies; community-based 
organizations such as community development corporations (CDCs), 
churches, temples, synagogues, mosques; nonprofit organizations; state/
regional associations and organizations. Troubled PHAs are not eligible 
to be contract administrators. Grant writers who assist applicants to 
prepare their applications are also ineligible to be contract 
administrators. Organizations that the applicant proposes to use as the 
contract administrator must not violate or be in violation of other 
conflicts of interest as defined in 24 CFR part 84 and 24 CFR part 85.
    b. Requirements for All Applicants. All applicants, lead and non-
lead, should refer to ``Other Requirements and Procedures Applicable to 
All Programs'' of the General Section for requirements pertaining 
specifically to procurement of recovered materials and for information 
regarding other requirements to which they may be subject.
    4. Number of Applications Permitted. Applicants may desire to 
provide a broad range of services supported by grants from a number of 
ROSS funding categories. Applicants may submit more than one 
application only based on the criteria below:
    a. General. Applicants may submit up to one application for each 
ROSS funding category (i.e., one application for ROSS-Elderly/Persons 
with Disabilities, one application for ROSS-Family, etc.), except for 
nonprofits. Nonprofit organizations may submit more than one 
application per ROSS funding category provided they will be serving 
residents of distinct PHAs or Tribes/TDHEs.
    b. More than one application per development. Only one application 
per funding category will be funded for a particular development. For 
example, if multiple applicants apply for ROSS-Elderly/Persons with 
Disabilities for the same development, only the highest scoring 
application will be considered for award. If multiple applicants are 
interested in providing services to a development and the services are 
funded under the same ROSS funding category, it is suggested the 
applicants work together to submit one application on behalf of the 
development.
    c. Joint applications. Two or more applicants may join together to 
submit a joint application for proposed grant activities. Joint 
applications must designate a lead applicant. The lead applicant must 
be registered with Grants.gov and submit the application using the 
Grants.gov portal. Lead applicants are subject to all threshold 
requirements. Non-lead applicants are subject to the following 
threshold requirements as applicable:
    (1) Letters of support for nonprofit applicants;
    (2) Evidence of nonprofit status as outlined under the section 
covering threshold requirements; and
    (3) Threshold requirements outlined in Section III. C. of the 
General Section. Joint applications may include PHAs, RAs, Tribes/
TDHEs, and nonprofit organizations on behalf of resident organizations. 
Joint applications involving nonprofit organizations must also provide 
evidence of resident support (the RA) or, if the RA is inactive, the 
RAB. (If the support letter is from the RAB, the applicant must also 
provide a support letter from the PHAs or tribes/TDHEs.) The PHA, 
tribe/TDHE, or RA that are part of a joint application may not also 
submit separate applications as sole applicants under this NOFA.

    Note: The number of conventional public housing units occupied 
by the elderly/disabled of the lead applicant will determine the 
funding amount category for which the applicants are eligible.

    5. Eligible Participants. All ROSS-Elderly/Persons with 
Disabilities program participants must be residents of conventional 
public housing or NAHASDA-assisted housing and must be elderly or 
disabled. See the Definitions Section for more information.
    6. Eligible Developments. Only conventional public and Indian 
housing developments or NAHASDA-assisted housing may be served by ROSS 
grant funds. Other housing/developments, including but not limited to 
private housing, federally insured housing, federally subsidized or 
assisted (i.e., assisted under Section 8, Section 202, Section 811, or 
Section 236), and others are not eligible to participate in ROSS.
    7. Energy Star. HUD has adopted a wide-ranging energy action plan 
for improving energy efficiency in all program areas. As a first step 
toward implementing the energy plan, HUD, the Environmental Protection 
Agency (EPA) and the Department of Energy (DoE) have signed a joint 
partnership to promote energy efficiency in HUD's affordable housing 
efforts and programs. The purpose of the Energy Star partnership is to 
promote energy efficiency in the affordable housing stock, and also to 
help protect the environment. Applicants providing housing assistance 
or counseling services are encouraged to promote Energy Star materials 
and practices, as well as buildings constructed to Energy Star 
standards, to both 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, 888-588-9920 (TTY).

[[Page 11920]]

IV. Application and Submission Information

A. Application Components

    Copies of the published NOFAs and application forms for HUD 
programs announced through NOFA may be downloaded from the grants.gov 
Web site at http://www.grants.gov/Find; if you have difficulty 
accessing the information you may receive customer support from 
Grants.gov by calling their Support Desk at (800) 518-GRANTS, or 
sending an e-mail to [email protected]. You may request general 
information from the NOFA Information Center (800-HUD-8929) or 800-HUD-
2209 (TTY) between the hours of 10 a.m. and 6:30 p.m. (eastern time) 
Monday through Friday, except on federal holidays. When requesting 
information, please refer to the name of the program you are interested 
in. The NOFA Information Center opens for business simultaneously with 
the publication of the SuperNOFA. You can also obtain information on 
this NOFA from HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Applicants should make sure to include all requested 
information, according to the instructions found in this NOFA and where 
applicable, in the General Section. This will help ensure a fair and 
accurate review of your application.

B. Content and Form of Application Submission

    1. Application Format Information for All Applicants. Before 
preparing an application for any ROSS funding, applicants should 
carefully review the program description, ineligible activities, 
program and threshold requirements, and the General Section. Applicants 
should also review each rating factor found in the ``Application Review 
Information'' section before writing a narrative response. Applicants' 
narratives should be as descriptive as possible, ensuring that every 
requested item is addressed. Applicants should make sure to include all 
requested information, according to the instructions found in this NOFA 
and where applicable, in the General Section. This will help ensure a 
fair and accurate review of your application.
    2. Content and Format for Submission
    a. Content of Application. Applicants must write narrative 
responses to each of the rating factors, which follow this section. 
Under some Sections, applicants are also asked to complete and include 
provided forms. Applicants will be evaluated on whether their responses 
contained in the narratives and on the forms demonstrate that they have 
the necessary capacity to successfully manage the proposed program. 
Applicants should ensure that their narratives are written clearly and 
concisely so that reviewers, who may not be HUD staff, may fully 
understand their proposal. Also, if information provided on one of the 
grant forms is not self-explanatory, narrative should be provided to 
clarify.
    b. Format of Application. (1) Applications may not exceed 35 
narrative pages. Narrative pages must be typed, double-spaced, 
numbered, use Times New Roman font style, font size 12, and 
1 margins. Supporting documentation, required forms, and 
certifications will not be counted toward the 35 narrative page limit. 
However, applicants should make every effort to submit only what is 
necessary in terms of supporting documentation. Please see the General 
Section for instructions on how to submit supporting documentation with 
your electronic application.
    (2) A checklist is provided to help applicants ensure that they 
submit all required forms and information is provided here. Applicants 
are not required to submit the checklist but should review it to ensure 
that they have submitted a complete application. (Note: Applicants who 
receive a waiver to submit paper applications must submit their 
applications in a three-ring binder, with TABS dividing the sections as 
indicated below. When submitting electronically, you do not need to 
submit these in TABS. Be sure to name each attachment clearly.) Copies 
of the forms may be downloaded with the application package and 
instructions from www.Grants.gov/Apply of from the following Web site: 
http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    TAB 1: Required Forms from the General Section and other ROSS 
forms:
    1. Acknowledgement of Application Receipt (HUD-2993), for paper 
application submissions only
    2. Application for Federal Financial Assistance (SF-424);
    3. SF-424 Supplement, Survey on Ensuring Equal Opportunity for 
Applicants;
    4. Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD-27300);
    5. ROSS Fact Sheet (3 pages) (HUD-52751);
    6. Grant Application Detailed Budget (HUD-424-CB);
    7. Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    8. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    9. Certification of Consistency with RC/EZ/EC-II Strategic Plan 
(HUD-2990) if applicable;
    10. Certification of Consistency with the Consolidated Plan (HUD-
2991) if applicable;
    11. Certification of Consistency with the Indian Housing Plan if 
applicable (HUD-52752);
    12. Certification of Resident Council Board of Election (not 
required for tribes/nonprofit organizations working on behalf of 
tribes) (HUD-52753);
    13. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    14. Disclosure of Lobbying Activities Continuation Sheet (SF-LLL-
A), if applicable;
    15. You Are Our Client Grant Applicant Survey (HUD-2994-A) 
(optional)
    16. Facsimile Transmittal Sheet (HUD-96011). (For use with 
electronic applications as the cover page to provide third party 
documentation.)
    TAB 2: Threshold Requirements:
    1. Letters from partners attesting to match;
    2. Letter from applicant's organization attesting to match (if 
applicant is contributing to match);
    3. Letters of support from RAs/PHAs/tribes/TDHEs/Resident Advisory 
Boards (Threshold requirement for all nonprofit applicants);
    4. List of Resident Organizations Supporting Nonprofit Applicants 
(required for nonprofit applicants but not applicable to applications 
from tribes/TDHEs) (HUD-52754);
    5. IRS nonprofit determination letter proving 501(c)(3) status 
(Threshold requirement for all nonprofit applicants); and
    6. Contract Administrator Partnership Agreement (required for 
nonprofit organizations, RAs, and PHAs troubled at the time of 
application submission) (HUD-52755).
    TAB 3: Narrative for Rating Factor 1 and ROSS Program Forms
    1. Narrative for Rating Factor 1;
    2. Chart A: Program Staffing (HUD-52756);
    3. Chart B: Applicant/Contract Administrator Track Record (HUD-
52757);
    4. Resumes/Position Descriptions.
    TAB 4: Narrative for Rating Factor 2.
    TAB 5: Narrative and work plan for Rating Factor 3. See Sample ROSS 
Work Plan (HUD-52764).
    TAB 6: Narrative for Rating Factor 4.
    TAB 7: Narrative for Rating Factor 5 and ROSS Program Forms
    1. Narrative;
    2. Logic Model (HUD-96010);

C. Submission Dates and Times

    1. Due Dates.

[[Page 11921]]

    a. The application must be received and validated by Grants.gov no 
later than 11:59:59 p.m. eastern time on July 13, 2006. See the General 
Section for instructions for requesting a waiver of the electronic 
application submission requirement. If you receive a waiver of the 
electronic application submission, your application must be received by 
the application deadline date. See the General Section for waiver and 
mailing requirements.

D. Intergovernmental Review

    Not applicable.

E. Funding Restrictions

    1. Reimbursement for Grant Application Costs. Grantees are 
prohibited from using ROSS grant funds to reimburse any costs incurred 
in conjunction with preparation of their ROSS grant application.
    2. Covered Salaries. Applicable to all applicants:
    a. Types of Salaries. ROSS-Elderly/Persons with Disabilities funds 
may only be used for the types of salaries described in this section 
according to the restrictions described herein.
    b. Project Coordinator. All applicants may propose to hire a 
qualified Project Coordinator to run the grant program. The ROSS-
Elderly/Persons with Disabilities program will fund up to $50,000 in 
combined annual salary and fringe benefits for a full-time Project 
Coordinator. Applicants may propose a part-time Project Coordinator at 
a lesser salary. However, the difference in salary may not be 
transferred to the funds for services. For audit purposes, applicants 
must have documentation on file demonstrating that the salary and 
fringe benefits of the Project Coordinator are comparable to similar 
professions in their local area.
    c. ROSS funds may only be used to pay for salaries of staff that 
provide direct services to residents. Direct services staff, for 
purposes of this NOFA, are defined as applicant personnel or 
subcontractors who, as their primary responsibility, provide services 
directly to residents that participate in the activities described in 
this application (e.g., case managers, and wellness program staff, 
among other positions.) ROSS funds may not be used to pay for salaries 
for any other kind of staff.
    3. Administrative Costs. Administrative costs may include, but are 
not limited to, purchase of furniture, office equipment and supplies, 
local travel, utilities, printing, postage and lease or rental of space 
for program activities (subject to lease restrictions--See Eligible 
Activities section of this NOFA). Administrative costs may not be used 
to pay for salaries or benefits of any kind. Administrative costs must 
not exceed 10 percent of the total grant amount requested from HUD. 
Administrative costs must adhere to OMB Circular A-87 or A-122 as 
appropriate. Please use HUD-424-CBW to itemize your administrative 
costs.
    4. Funding Requests in Excess of Maximum Grant Amount. Applicants 
that request funding in excess of the maximum grant amount which they 
are eligible to receive will be given consideration only for the 
maximum grant for which they are eligible. If awarded a grant, the 
grantee will work with the Field Office to re-apportion the grant funds 
for eligible activities.
    5. Ineligible Activities/Costs. Grant funds may not be used for 
ineligible activities. Match will not be counted if it is proposed to 
be used for ineligible activities. Two points will be deducted for each 
ineligible activity proposed in the application. For example, you will 
lose 2 points if you propose costs that exceed the limits identified in 
the NOFA for a Project Coordinator; or you will lose 2 points if you 
propose paying for salaries for staff that are not direct services 
staff. The following are ineligible activities/costs:
    a. Payment of wages and/or salaries to participants for receiving 
supportive services and/or training programs;
    b. Purchase, lease, or rental of land;
    c. Purchase of space;
    d. New construction, costs for construction materials;
    e. Rehabilitation or physical improvements;
    f. Entertainment costs;
    h. Payment of wages and/or salaries to doctors, nurses or other 
staff (including health aids or companions) in relation to medical 
services provided to residents;
    i. Purchase of non-prescription or prescription medications;
    j. Costs, which exceed limits, identified in the NOFA for the 
following: Project Coordinator, administrative expenses, and long 
distance travel;
    k. Cost of application preparation;
    l. Vehicle insurance and/or maintenance;
    m. Salaries for staff that are not direct services staff. Direct 
services staff, for purposes of this NOFA, are defined as applicant 
personnel or their subcontractors who, as their primary responsibility, 
provide services directly to residents that participate in the 
activities described in this application (e.g., case managers, and 
wellness program staff, among other positions).
    6. ROSS funds cannot be used to hire or pay for the services 
(salary, fringe benefits, etc.) of a Contract Administrator.
    7. Other Budgetary Restrictions. Some long distance travel may be 
necessary during the term of the grant in order for professional grant 
staff to attend training conferences for ROSS grantees Long distance 
travel costs for grant program staff may not exceed $5,000 for the life 
of the grant and must receive prior approval from the grantee's local 
HUD field office or area ONAP.

F. Other Submission Requirements

    1. All applicants are required to submit their applications 
electronically via Grants.gov, unless they request and are approved by 
HUD for a waiver of that requirement. Please refer to the General 
Section for information on how to submit your application and all 
attachments electronically via Grants.gov.
    2. Proof of Timely Submission. Please see the General Section for 
this information. Applicants that fail to meet the deadline for 
application receipt will not receive funding consideration.
    3. For Waiver Recipients Only. Applicants who have received waivers 
to submit paper applications (see the General Section for more 
information), must submit their applications to: HUD Grants Management 
Center, Mail Stop: ROSS-Elderly/Persons with Disabilities, 501 School 
Street, SW., 8th floor, Washington, DC 20024. The waiver approval will 
provide detailed instructions.
    4. Number of Copies. Only applicants receiving a waiver to the 
electronic submission requirement may submit a paper copy application. 
Paper applications must be submitted in triplicate (one original and 
two identical copies). For all applicants with a waiver (including 
tribal and TDHE applicants), the original and one identical copy must 
be sent to the Grants Management Center and an identical copy must be 
sent to your local Field Office or Area ONAP in accordance with the 
submission and timely receipt requirements described in the General 
Section.

V. Application Review Information

A. Criteria

    1. Factors for Award Used to Evaluate and Rate Applications to the 
ROSS program. The factors for rating and ranking applications and 
maximum points for each factor are provided below. The maximum number 
of points available for this program is 102. This includes two RC/EZ/
EC-II bonus points.

[[Page 11922]]

The SuperNOFA contains a certification that must be completed in order 
for the applicant to be considered for the RC/EZ/EC-II bonus points. A 
listing of federally designated RCs, EZs, and EC-IIs, is available at 
http://www.hud.gov/offices/adm/grants/fundsavail.cfm. The agency 
certifying to RC/EZ/EC-II status must be contained in the listing of 
RC/EZ/EC-II organizations on HUD's Web site at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

    Note: Applicants should carefully review each rating factor 
before writing a response and completing forms. Applicants' 
narratives and forms should be as descriptive as possible, ensuring 
that every requested item is addressed. Applicants should make sure 
their narratives and forms thoroughly address the Rating Factors 
below. Applicants should include all requested information according 
to the instructions found in this NOFA. This will help ensure a fair 
and accurate application review.

a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (25 Points)
    This factor addresses whether the applicant has the organizational 
resources necessary to successfully implement the proposed activities 
within the grant period. In rating this factor HUD will consider the 
extent to which the proposal demonstrates that the applicant will have 
qualified and experienced staff dedicated to administering the program.
    (1) Proposed Program Staffing (7 Points).
    (a) Staff Experience (4 Points). The knowledge and experience of 
the proposed Project Coordinator, staff, and partners in planning and 
managing programs for which funding is being requested. Experience will 
be judged in terms of recent, relevant, and successful experience of 
proposed staff to undertake eligible program activities. In rating this 
factor, HUD will consider experience within the last 5 years to be 
recent; experience pertaining to the specific activities being proposed 
to be relevant; and experience producing specific accomplishments to be 
successful. The more recent the experience and the more experience 
proposed staff members who work on the project have in successfully 
conducting and completing similar activities, the greater the number of 
points applicants will receive for this rating factor. The following 
information should be provided in order to provide HUD an understanding 
of proposed staff's experience and capacity:
    (i) The number of staff years (one staff year = 2080 hours) to be 
allocated to the proposed program by each employee or expert as well as 
each of their roles in the program;
    (ii) The staff's relevant educational background and/or work 
experience; and
    (iii) Relevant and successful experience running programs whose 
activities are similar to the eligible program activities described in 
the grant application.
    (b) Organizational Capacity (3 Points). Applicants will be 
evaluated based on whether they or their partners have sufficient 
qualified personnel to deliver the proposed activities in a timely and 
effective fashion. In order to enhance or supplement capacity, 
applicants should provide evidence of partnerships with nonprofit 
organizations or other organizations that have experience providing 
supportive services to typically underserved populations. Applicants' 
narratives must describe their ability to immediately begin the 
proposed work program. Provide resumes and position descriptions (where 
staff is not yet hired) for all key personnel. (Resumes/position 
descriptions do not count toward the 35-page limit.)
    (2) Past Performance of Applicant/Contract Administrator (6 
Points).
    (a) Applicants' past experience may include, but is not limited to, 
running and managing programs aimed at improving living conditions for 
the targeted elderly/persons with disabilities population. Improved 
living conditions may mean, but is not limited to, aging-in-place or 
assistance to live independently.
    (b) Applicants' narrative must indicate past grants they received 
and managed, the grant amounts, and grant terms (years) of the grants, 
which they are counting toward past experience.
    (c) Applicants' narrative must describe how they (or their Contract 
Administrator) successfully implemented past grant programs designed to 
assist elderly/persons with disabilities meet their daily living needs 
and enhance their access to needed services so they can continue to 
reside comfortably and productively in their current living 
environment.
    (d) Applicants will be evaluated according to the following 
criteria:
    (i) Achievement of specific measurable outcomes and objectives in 
terms of benefits gained by participating residents. Applicants should 
describe results their programs have obtained, such as Impact on 
emergency care, improved health conditions of assisted population, and 
access to greater number of social services.
    (ii) Description of success in attracting and keeping residents 
involved in past grant-funded training programs. HUD wants to see that 
applicants' grant-funded programs benefited significant numbers of 
residents;
    (iii) Description of timely expenditure of program funding 
throughout the term of past grants. Timely means drawdowns made 
commensurate with the level of activities completed and per the 
approved application. Timely expenditure also refers to fully expending 
all grant funds by the end of the grant term;
    (iv) Description of Past Leveraging. Applicants must describe how 
they have created leveraging partnerships for funding or in-kind 
services for previous projects, the extent of the leveraging 
partnerships, and how the leveraging and partnerships benefited 
participants..
    (3) Program Administration and Fiscal Management (12 Points).
    (a) Program Administration and Accountability (6 Points). 
Applicants should describe how they will manage the program; how HUD 
can be sure that there is program accountability; and provide a 
description of proposed staff's roles and responsibilities. Applicants 
should also describe how grant staff and partners will report to the 
Project Coordinator and other senior staff.
    (b) Fiscal Management (6 Points). In rating this sub-factor, 
applicants' skills and experience in fiscal management will be 
evaluated. If applicants have had any audit or material weakness 
findings in the past five years, they will be evaluated on how well 
they have addressed them. Applicants must provide the following:
    (i) A complete description of their fiscal management structure, 
including fiscal controls currently in place including those of a 
Contract Administrator for applicants required to have a Contract 
Administrator (i.e., troubled PHAs, resident associations, and 
nonprofit applicants);
    (ii) Applicants must list any audit findings in the past five years 
(HUD Inspector General, management review, fiscal, etc.), material 
weaknesses, and what has been done to address them;
    (iii) For applicants who are required to have a Contract 
Administrator, describe the skills and experience the Contract 
Administrator has in managing federal funds.
b. Rating Factor 2: Need/Extent of the Problem (20 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program. In responding to this factor, applicants 
will be evaluated on the extent to which they describe and document the 
level of need for their

[[Page 11923]]

proposed activities and the urgency for meeting the need.
    (1) Socioeconomic Profile (5 points). A thorough socioeconomic 
profile of the eligible residents to be served by the program, 
including education levels, income levels, health statistics, economic 
statistics for the local area, etc.
    (2) Demonstrated Link Between Proposed Activities and Local Need 
(15 points). Applicants' narrative must demonstrate a clear 
relationship between proposed activities, community needs and the 
purpose of the program funding in order for points to be awarded for 
this factor. Grant awards must be used in two ways: One portion for the 
salaries and fringe benefits of a Project Coordinator; and one portion 
for direct delivery of high priority supportive services to the 
targeted elderly/disabled resident population. As indicated in the 
chart at the beginning of the NOFA, applicants must not propose to use 
more than the specified amount of funds for delivery of services. 
Accordingly, the applicant must, in the narrative for this rating 
factor, describe the service needs of the targeted residents, show 
which service needs are already being met by local resources and which 
service needs the applicant is unable to meet using existing resources, 
and demonstrate that these services are of a high priority for the 
targeted elderly/disabled residents and that another funding source is 
not available, thereby meriting funding under this program. The 
applicant may also indicate a need for a Project Coordinator, which it 
may pay up to the $50,000 maximum per year from grant funds for salary 
and fringe in accordance with local wage standards (see Funding 
Restrictions).
c. Rating Factor 3: Soundness of Approach (30 Points)
    This sub-factor addresses both the quality and cost-effectiveness 
of applicants' proposed program and/or work plan. The narrative and 
work plan must indicate a clear relationship between proposed 
activities, the targeted population's needs, and the purpose of the 
program funding. Applicants' proposed program must address HUD's policy 
priorities outlined in this Rating Factor.
    In rating this factor HUD will consider:
    (1) Quality of the Work Plan (20 points). This factor evaluates 
both the applicant's proposed program and/or work plan and budget, 
which will be evaluated based on the following criteria:
    (a) Specific Services and/or Activities (10 points). Applicants' 
narrative must describe the proposed program (i.e., specific services, 
course curriculum, and activities) they plan to offer and who will be 
responsible for each. In addition to the narrative, applicants may also 
provide a work plan, which should list the specific services, 
activities, and outcomes they expect. The proposed program narrative 
and work plan must show a logical order of activities and must tie to 
the outcomes and outputs applicants identify in the Logic Model (see 
Rating Factor 5). Applicants' narrative must explain how their proposed 
activities will:
    (i) Involve community partners in the delivery of services (5 
points);
    (ii) Offer comprehensive services (versus a small range of 
services) geared toward achieving the enhancement of the residents' 
quality of life. If the proposed program activities are part of a more 
comprehensive plan funded through other resources, please provide a 
description of the comprehensive program clearly delineating those 
proposed activities to be funded by the ROSS-Elderly/Persons with 
Disabilities grant category (5 points).
    (b) Feasibility and Demonstrable Benefits (5 points). This 
subfactor examines whether applicants' work plan is logical, feasible 
and likely to achieve its stated purpose during the term of the grant. 
HUD's desire is to fund applications that will quickly produce 
demonstrable results and advance the purposes of the ROSS program.
    (i) Timeliness. This subfactor evaluates whether applicants' work 
plan demonstrates that their project is ready to be implemented shortly 
after grant award, but not to exceed three months following the 
execution of the grant agreement. The work plan must indicate time 
frames and deadlines for accomplishing major activities.
    (ii) Description of the problem and solution. The work plan will be 
evaluated based on how well applicants' proposed activities address the 
needs described in Rating Factor 2.
    (c) Budget Appropriateness/Efficient Use of Grant (5 Points). The 
score in this sub-factor will be based on the following:
    (i) Justification of expenses. Applicants will be evaluated based 
on whether their expenses are reasonable and thoroughly explained and 
support the objectives of their proposal.
    (ii) Budget Efficiency. Applicants will be evaluated based on 
whether their application requests funds commensurate with the level of 
effort necessary to accomplish their goals and anticipated results.
    (iii) Timeliness. This sub-factor evaluates whether applicants' 
proposed program timeline and/or work plan demonstrates that their 
proposal is ready to be implemented within three months following the 
execution of the grant agreement. The proposed program narrative and 
work plan must indicate time frames and deadlines for accomplishing 
major activities.
    (d) Ineligible Activities. Two points will be deducted for each 
ineligible activity proposed in the application, as identified in 
Section IV(E). For example, you will lose 2 points if you propose costs 
that exceed the limits identified in the NOFA for a Project 
Coordinator; or you will lose 2 points if you propose paying for 
salaries for staff that are not direct services staff.
    (2) Addressing HUD's Policy Priorities (8 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle through which long-term, positive 
change can be achieved at the community level. Applicants' narrative 
and work plan will be evaluated based on how well they meet HUD's 
policy priorities listed below.
    (a) Improving the Quality of Life in Our Nation's Communities (2 
points). The applicants' narrative and work plan must indicate the 
types of activities, service, and training programs applicants will 
offer which can help residents to continue to live independently.
    (b) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (4 
points). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations that are not usually effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services and other supportive services. In 
order to receive points under this sub-factor, applicants' narrative 
and work plan must describe how applicants will work with these 
organizations and what types of services they will provide.
    (c) Policy Priority for Increasing the Supply of Affordable Housing 
Through the Removal of Regulatory Barriers to Affordable Housing (up to 
2 points). Under this policy priority, higher rating points are 
available to (1) governmental applicants that are able to demonstrate 
successful efforts in removing regulatory barriers to affordable 
housing, and (2) nongovernmental applicants that are associated with 
jurisdictions that have undertaken successful efforts in

[[Page 11924]]

removing barriers. For applicants to obtain the policy priority points 
for efforts to successfully remove regulatory barriers, applicants must 
complete form HUD 27300, ``Questionnaire for HUD's Initiative on 
Removal of Regulatory Barriers.'' A copy of HUD's Notice entitled 
``America's Affordable Communities Initiative, HUD's Initiative on 
Removal of Regulatory Barriers: Announcement of Incentive Criteria on 
Barrier Removal in HUD's 2004 Competitive Funding Allocations'' can be 
found on HUD's Web site at http://www.hud.gov/grants/index.cfm. The 
information and requirements contained in HUD's regulatory barriers 
policy priority apply to this FY 2006 NOFA. A description of the policy 
priority and a copy of form HUD-27300 can be found in the application 
package posted on http://www.Grants.gov. Applicants are encouraged to 
read the Notice as well as the General Section to obtain an 
understanding of this policy priority and how it can impact their 
score. A limited number of questions expressly request the applicant to 
provide brief documentation with their response. Other questions 
require that for each affirmative statement made, the applicant must 
supply a reference, URL, or a brief statement indicating where the 
back-up information may be found, and a point of contact, including a 
telephone number and/or e-mail address. The electronic copy of the HUD 
27300 has space to identify a URL or reference that the material is 
being scanned and attached to the application as part of the submission 
or faxed to HUD following the facsimile submission instructions.
    (3) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3) (2 Points).
    You will receive 2 points if your application demonstrates that you 
will implement 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 in connection with this 
grant, if awarded. Information about Section 3 can be found at HUD's 
Section 3 Web site at http://www.hud.gov/fhe/sec3over.html. Your 
application must describe how you will implement Section 3 through the 
proposed grant activities. You must state 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.
d. Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses the applicant's ability to secure community 
resources that can be combined with HUD's grant resources to achieve 
program purposes. Applicants are required to create partnerships with 
organizations that can help achieve their program's goals. PHAs are 
required by section 12(d)(7) of the U.S. Housing Act of 1937 entitled 
``Cooperation Agreements for Economic Self-Sufficiency Activities'' to 
make best efforts to enter into such agreements with relevant state or 
local agencies. Additionally, applicants must have at least a 25 
percent cash or in-kind match. The match is a threshold requirement. 
Joint applicants must together have at least a 25 percent match. 
Leveraging in excess of the 25 percent of the grant amount will receive 
a higher point value. In evaluating this factor HUD will consider the 
extent to which applicants have partnered with other entities to secure 
additional resources, which will increase the effectiveness of the 
proposed program activities. The additional resources and services must 
be firmly committed, must support the proposed grant activities and 
must, in combined amount (including in-kind contributions of personnel, 
space and/or equipment, and monetary contributions) equal at least 25 
percent of the grant amount requested in this application. Match will 
not be accepted if it is proposed to be used for ineligible activities. 
Please see the section on Threshold Requirements in this NOFA for more 
information.
    Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested ROSS funds to the total proposed grant budget.

    Points will be assigned based on the following scale:

Percentage of Match Points Awarded

25--4 points (with partnerships) 2 points (without partnerships);
26-50--6 points (with partnerships) 4 points (without partnerships);
51-75--8 points (with partnerships) 6 points (without partnerships);
76 or above--10 points (with partnerships) 8 points (without 
partnerships).
e. Rating Factor 5: Achieving Results and Program Evaluation (15 
Points)
    (1) An important element in this year's NOFA is the development and 
reporting of performance measures and outcomes. This factor emphasizes 
HUD's determination to ensure that applicants meet commitments made in 
their applications and grant agreements and that they assess their 
performance so that they realize performance goals. Applicants must 
demonstrate how they propose to measure their success and outcomes as 
they relate to the Department's Strategic Plan.
    (2) HUD requires ROSS applicants to develop an effective, 
quantifiable, outcome-oriented plan for measuring performance and 
determining that goals have been met. Applicants must use the Logic 
Model form HUD-96010 for this purpose.
    (3) Applicants must establish interim benchmarks, or outputs, for 
their proposed program that lead to the ultimate achievement of 
outcomes. ``Outputs'' are the direct products of a program's 
activities. Outputs should produce outcomes for your program. Examples 
of outputs are the number of elderly persons referred to for social or 
health care services, the number of persons equipped with emergency 
response resources, etc. ``Outcomes'' are benefits accruing to the 
residents, families and/or communities during or after participation in 
the ROSS program. Applicants must clearly identify the outcomes to be 
achieved and measured. Outcomes are not the development or delivery of 
services or program activities but the results of the services 
delivered or program activities--the ultimate results of the program. 
Examples of outcomes are: The number of persons able to live 
independently and have avoided long term care placement, the number of 
persons that have had improved living conditions or quality of life as 
a result of receiving increased social services, etc.
    (4) This rating factor requires that applicants identify program 
outputs, outcomes, and performance indicators that will allow 
applicants to measure their performance. Performance indicators should 
be objectively quantifiable and measure actual achievements against 
anticipated achievements. Applicants' narrative, work plan, and Logic 
Model should identify what applicants are going to measure, how they 
are going to measure it, and the steps they have in place to make 
adjustments to their work plan and management practices if performance 
targets begin to fall short of established benchmarks and time frames. 
Applicants' proposal must also show how they will measure the 
performance of partners and affiliates. Applicants must include the 
standards, data sources, and measurement methods they will use to 
measure performance.

[[Page 11925]]

    Applicants will be evaluated based on how comprehensively they 
propose to measure their program's outcomes.

B. Review and Selection Process

    1. Review Process. Four types of reviews will be conducted: a 
screening to determine if you are eligible to apply for funding under 
the ROSS-Elderly/Persons with Disabilities grant; a review of whether 
your application submission is complete, on time and meets threshold; a 
review by the field office (or area ONAP office) to evaluate past 
performance; and a technical review to rate your application based on 
the five rating factors provided in this NOFA.
    2. Selection Process for All Grant Categories and All Applicants. 
Twenty-five percent (25%) of funds will be set aside for Resident 
Associations and all qualifying Resident Association applications will 
be funded first, up to 25% of the funding amount. The selection process 
is designed to achieve geographic diversity of grant awards throughout 
the country. For each grant category, HUD will first select the highest 
ranked application from each of the ten federal regions and DPONAP for 
funding. After this ``round,'' HUD will select the second highest 
ranked application in each of the ten federal regions and DPONAP for 
funding (the second round). HUD will continue this process with the 
third, fourth, and so on, highest ranked applications in each federal 
region and DPONAP until the last complete round is selected for 
funding. If available funds exist to fund some but not all eligible 
applications in the next round, HUD will make awards to those remaining 
applications in rank order (by score) regardless of region and DPONAP 
and will fully fund as many as possible with remaining funds. If 
remaining funds in one program are too small to make an award, they may 
be transferred to another ROSS program.
    3. Tie Scores. In the event of a tie score between two applications 
in the ROSS-Elderly/Persons with Disabilities funding category which 
target the same developments, HUD will select the application that was 
received first.
    4. Deficiency Period. Applicants will have 14 calendar days in 
which to provide missing information requested from HUD. For other 
information on correcting deficient applications, please see the 
General Section.

VI. Award Administration Information

A. Award Notices

    HUD will make announcements of grant awards after the rating and 
ranking process is completed. Grantees will be notified by letter and 
will receive instructions on what steps they must take in order to 
access funding and begin implementing grant activities. Applicants who 
are not funded will also receive letters via U.S. postal mail.

B. Debriefings

    Applicants who are not funded may request a debriefing. Applicants 
requesting to be debriefed must send a written request to: Iredia 
Hutchinson, Director, Grants Management Center, 501 School Street, SW., 
Suite 800, Washington, DC 20024.

C. Administrative and National Policy Requirements

    1. Environmental Impact. In accordance with 24 CFR 58.34(a)(3) or 
(a)(9), 58.35(b)(2), (b)(4) or (b)(5), 50.19(b)(3), (b)(9), (b)(12), 
(b)(14), or (b)(15), activities under this ROSS program are 
categorically excluded from the requirements of the National 
Environmental Policy Act of 1969 and are not subject to environmental 
review under related laws and authorities.
    2. Applicable Requirements. Unless specifically enumerated in this 
NOFA, all lead and non-lead applicants are subject to the requirements 
specified in Section III.C. of the General Section. Grantees are 
subject to regulations and other requirements found in:
    a. 24 CFR Part 84 ``Uniform Administrative Requirements for Grants 
and Agreements with Institutions of Higher Education, Hospitals, and 
Other Nonprofit Organizations'';
    b. 24 CFR Part 85 ``Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments'';
    c. 24 CFR Part 964 ``Tenant Participation and Tenant Opportunities 
in Public Housing'';
    d. OMB Circular A-87 ``Cost Principles for State, Local, and Indian 
Tribal Governments'';
    e. OMB Circular A-110, ``Uniform Administrative Requirements for 
Grants and Other Agreements with Institutions of Higher Education, 
Hospitals and Other Non-Profit Organizations'';
    f. OMB Circular A-122, ``Cost Principles for Non-Profit 
Organizations''; and
    g. OMB Circular A-133, ``Audits of States, Local Governments, and 
Non-Profit Organizations''.
    3. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Applicants and grantees must also comply with Section 3 of 
the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u and 
ensure that training, employment, and other economic opportunities 
shall, to the greatest extent feasible, be directed toward low- and 
very low-income persons, particularly those who are recipients of 
government assistance for housing, and to business concerns which 
provide economic opportunities to low- and very low-income persons.
    4. Fair Housing and Civil Rights Laws. Applicants and their 
subrecipients must comply with all Fair Housing and Civil Rights laws, 
statutes, regulations, and Executive Orders as enumerated in 24 CFR 
5.105(a), as applicable. Please see the General Section for more 
information.

D. Reporting

    1. Semi-Annual Performance Reports. Grantees must submit semi-
annual performance reports to the field office or area ONAP. These 
progress reports must include financial reports (SF-269A), a Logic 
Model (HUD-96010) showing achievements to date against outputs and 
outcomes proposed in the application and approved by HUD, and a 
narrative describing milestones, program and/or work plan progress, and 
problems encountered and methods used to address the problems. Grantees 
must use quantifiable data to measure performance against goals and 
objectives outlined in their program and/or work plan. Applicants that 
receive awards from HUD should be prepared to report on additional 
measures that HUD may designate at time of award. Performance reports 
are due to the field office or Area ONAP on July 30 and January 31 of 
each year. If reports are not received by the due date, grant funds 
will be suspended until reports are received. For FY2006, HUD is 
considering a new concept for the Logic Model. The new concept is a 
Return on Investment (ROI) statement. HUD will be publishing a separate 
notice on the ROI concept.
    2. Final Report. All grantees must submit a final report to their 
local field office or area ONAP that will include a financial report 
(SF-269A), a final Logic Model, and a narrative evaluating overall 
results achieved against their program and/or work plan. Grantees must 
use quantifiable data to measure performance against goals and 
objectives outlined in their program and/or work plan. The financial 
report must contain a summary of all expenditures made from the 
beginning of the grant agreement to the end of the grant agreement and 
must include any unexpended balances. The final narrative, Logic Model, 
and financial report are due to the field office 90 days after the 
termination of the grant agreement.

[[Page 11926]]

    3. Final Audit. Grantees that expend $500,000 in federal funds in a 
given program or fiscal year are required to obtain a complete final 
close-out 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-87, A-110, and A-122, as applicable.
    4. Racial and Ethnic Data. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. HUD has adopted the Office 
of Management and Budget's Standards for the Collection of Racial and 
Ethnic Data. In view of these requirements, applicants should use form 
HUD-27061, Racial and Ethnic Data Reporting Form.

VII. Agency Contact(s)

    For questions and technical assistance, you may call the Public and 
Indian Housing Information and Resource Center at 800-955-2232. For 
persons with hearing or speech impairments, please call the toll-free 
Federal Relay Service at 800-877-8339. In the case of tribes/TDHEs, 
please contact HQONAP at 800-561-5913 or (303) 675-1600 (this is not a 
toll-free number).

VIII. Other Information

    A. Code of Conduct. Please see the General Section for more 
information.
    B. Transfer of Funds. If transfer of funds from any of the ROSS 
programs does become necessary, HUD will consider the amount of un-
funded qualified applications in deciding to which program the extra 
funds will be transferred.
    C. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2577-0229. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number. Public reporting burden for the collection of 
information is estimated to average 49.5 hours per respondent for the 
application. This includes the time for collecting, reviewing, and 
reporting the data for the application. 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.
BILLING CODE 4210-01-P

[[Page 11927]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.022


[[Page 11928]]



Resident Opportunity and Self-Sufficiency (ROSS) Family and 
Homeownership Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title: ROSS Family and Homeownership, under 
the Resident Opportunity and Self-Sufficiency (ROSS) program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-31. The OMB approval number is 2577-0229.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 
Resident Opportunity and Self Sufficiency, 14.870.
    F. Dates: The application deadline date is August 8, 2006. 
Applications submitted through http://www.grants.gov must be received 
and validated by grants.gov no later than 11:59:59 Eastern time on the 
application deadline date.
    G. Additional Overview Content Information:
1. Purpose of Program
    The purpose of the Public and Indian Housing Resident Opportunity 
and Self Sufficiency (ROSS) program is to provide grants to public 
housing agencies (PHAs), tribes/tribally designated housing entities 
(TDHEs), Resident Associations (RAs), and nonprofit organizations, 
including grassroots, faith-based and other community-based 
organizations for the delivery and coordination of supportive services 
and other activities designed to help public and Indian housing 
residents attain economic and housing self-sufficiency.
2. Funding Available
    A total of approximately $18 million is available for ROSS in 
fiscal year 2006.
3. Award Amounts
    Awards, depending on the unit count and type of grantee, will range 
from $100,000 to $600,000. Please see the program description for more 
specific information about funding amounts.
4. Eligible Applicants
    Eligible applicants are PHAs; tribes/TDHEs; nonprofit organizations 
including grassroots faith-based and other community-based 
organizations that have resident support or the support of tribes; RAs; 
resident councils (RCs); resident organizations (ROs); City-Wide 
Resident Organizations (CWROs); Intermediary Resident Organizations 
(IROs); Jurisdiction-Wide Resident Organizations; Regional Resident 
Organizations; Resident Management Corporations (RMCs); Site-Based 
Resident Organizations; Statewide Resident Organizations (SROs); and 
Tribal/TDHE resident groups. The term ``resident association'' or 
``RA'' will be used to refer to all types of eligible resident 
organizations. Please see the section on ``Definition of Terms'' for a 
complete definition of each type of eligible resident organization.
5. Cost Sharing/Match Requirement
    At least 25 percent of the requested grant amount is required as a 
match. The match may be in cash and/or in-kind donations. The match is 
a threshold requirement.
6. Grant Term
    The grant term for each funding category is three years from the 
execution date of the grant agreement.

----------------------------------------------------------------------------------------------------------------
                                                                                           Maximum grant amount
                                                                                           (units refer to the
                                                                                            number of family-
            Grant program                   Total funding         Eligible applicants       occupied units as
                                                                                          indicated on ROSS Fact
                                                                                            Sheet (HUD-52751)
----------------------------------------------------------------------------------------------------------------
ROSS--Family and Homeownership.......  $18 million............  PHAs/Tribes/TDHEs......  $150,000 for 1-780
                                                                                          units; $250,000 for
                                                                                          781-2,500 units;
                                                                                          $350,000 for 2,501-
                                                                                          7,300 units; $600,000
                                                                                          for 7,301 or more
                                                                                          units.
                                                                Resident associations..  $100,000
                                                                Non-profit entities....  $100,000 per RA;
                                                                                          Maximum award is
                                                                                          $300,000.
----------------------------------------------------------------------------------------------------------------

Full Text of Announcement

I. Funding Opportunity Description

A. ROSS Family and Homeownership

    The purpose is to provide funding to assist PHAs, tribes/TDHEs, 
RAs, nonprofit organizations which include grassroots community based 
organizations, inclusive of faith-based organizations, create programs 
which will help residents achieve economic self-sufficiency. Applicants 
must submit proposals that will link residents with services such as 
job training, and educational opportunities that facilitate economic 
and housing self-sufficiency. The Homeownership component provides 
funds to recipients to deliver homeownership training, counseling and 
supportive services for residents of Public and Indian housing who are 
participating or have participated in self-sufficiency programs, such 
as ROSS, Public Housing Family Self-Sufficiency (FSS) or other Federal, 
state, or local self-sufficiency programs ROSS-Elderly/Persons with 
Disabilities funding and Public Housing Neighborhood Networks funding 
are being offered under separate Notices in the 2006 SuperNOFA.

B. Definition of Terms

    1. City-Wide Resident Organization consists of members from 
Resident Councils, Resident Management Corporations, and Resident 
Organizations who reside in public housing developments that are owned 
and operated by the same PHA within a city.
    2. Community Facility means a non-dwelling structure that provides 
space for multiple supportive services for the benefit of public or 
Indian housing residents and others eligible for the services provided. 
Supportive services may include but are not limited to:
    a. Job-training;
    b. After-school activities for youth;
    c. Neighborhood Networks (formerly Twenty/20 Education Communities 
(TECs), Campus of Learners activities);
    d. English as a Second Language (ESL) classes; and
    e. Child care.
    3. Contract Administrator means an overall grant administrator or a 
financial management agent (or both) that oversees the implementation 
of the grant and/or the financial aspects of the grant.
    4. Elderly person means a person who is at least 62 years of age.
    5. Jurisdiction-Wide Resident Organization means an incorporated

[[Page 11929]]

nonprofit organization or association that meets the following 
requirements:
    a. Most of its activities are conducted within the jurisdiction of 
a single housing authority;
    b. There are no incorporated resident councils or resident 
management corporations within the jurisdiction of the single housing 
authority;
    c. It has experience in providing start-up and capacity-building 
training to residents and resident organizations; and
    d. Public housing residents representing unincorporated resident 
councils within the jurisdiction of the single housing authority must 
comprise a majority of the board of directors.
    6. Tribally Designated Housing Entity (TDHE) is an entity 
authorized or established by one or more Indian tribes to act on behalf 
of each such tribe authorizing or establishing the housing entity.
    7. Indian Tribe means any tribe, band, nation, or other organized 
group of a community of Indians, including any Alaska Native village, 
regional, or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act, and that is recognized as 
eligible for the special programs and services provided by the United 
States to Indians because of their status as Indians pursuant to the 
Indian Self Determination and Education Act of 1975 or any state-
recognized tribe eligible for assistance under section 4(12)(C) of 
NAHASDA.
    8. Intermediary Resident Organizations means jurisdiction-wide 
resident organizations, citywide resident organizations, statewide 
resident organizations, regional resident organizations, and national 
resident organizations.
    9. NAHASDA-assisted resident means a member of a tribe (as defined 
above) who has been assisted by the Native American Housing Assistance 
and Self-Determination Act (NAHASDA) of 1996.
    10. National Resident Organization (NRO) is an incorporated 
nonprofit organization or association for public housing that meets 
each of the following requirements:
    a. It is national (i.e., conducts activities or provides services 
in at least two HUD areas or two states);
    b. It has the capacity to provide start-up and capacity-building 
training to residents and resident organizations; and
    c. Public housing residents representing different geographical 
locations in the country are members of the board of directors.
    11. Nonprofit organization is an organization that is exempt from 
federal taxation. A nonprofit organization can be organized for the 
following purposes: charitable, religious, educational, scientific, or 
other similar purposes in the public interest. In order to qualify, an 
organization must be a corporation, community chest, fund, or 
foundation. An individual or partnership will not qualify. To obtain 
nonprofit status, qualified organizations must file an application with 
the Internal Revenue Service (IRS) and receive designation as such by 
the IRS. For more information, go to http://www.irs.gov. Applicants who 
are in the process of applying for nonprofit status, but have not yet 
received nonprofit designation from the IRS, will not be considered 
nonprofit organizations. All nonprofit applicants must submit their IRS 
determination letter to prove their nonprofit (e.g. 501(c)(3)) status. 
Please see the section on ``Threshold Requirements'' for more 
information. Nonprofit applicants must also provide letters of support 
as described in the ``Threshold Requirements'' section.
    12. National nonprofit organizations work on a national basis and 
have the capacity to mobilize resources on both a national and local 
level. All nonprofit applicants must submit their IRS determination 
letter to prove their nonprofit (e.g. 501(c)(3)) status. National 
nonprofit applicants must also provide letters of support as outlined 
in the ``Threshold Requirements'' section.
    13. Past Performance is a threshold requirement. Using Rating 
Factor 1 (described in the ``Application Review Information'' section 
of this NOFA), HUD's field offices will evaluate applicants for past 
performance to determine whether an applicant has the capacity to 
manage the grant for which they are applying. The area Office of Native 
American Programs (ONAP) will review past performance for tribal/TDHE 
submissions. Field offices will evaluate the past performance of 
contract administrators for applicants required to have a contract 
administrator.
    14. Person with disabilities means a person who:
    a. Has a condition defined as a disability in section 223 of the 
Social Security Act; or
    b. Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance Bill of Rights Act.
    The term ``person with disabilities'' does not exclude persons who 
have acquired immunodeficiency syndrome (HIV/AIDS) or any conditions 
arising from the etiologic agent for AIDS. In addition, no individual 
shall be considered a person with disabilities, for purposes of 
eligibility for low-income housing, solely on the basis of any drug or 
alcohol dependence.
    The definition of a person with disabilities contained in section 
504 of the Rehabilitation Act of 1973 and its implementing regulations 
must be used for purposes of reasonable accommodations and program 
accessibility. Please see 24 CFR Sec.  5.403.
    15. Project Coordinator is responsible for coordinating the 
grantee's approved activities to ensure that grant goals and objectives 
are met. A qualified project coordinator is someone with experience 
managing projects and preferably has experience working with supportive 
services. The project coordinator and grantees are responsible for 
ensuring that all federal requirements are followed.
    16. Resident Association (RA) means any or all of the forms of 
resident organizations as they are defined elsewhere in this 
Definitions section and includes Resident Councils (RC), Resident 
Management Corporations (RMC), Regional Resident Organizations (RRO), 
Statewide Resident Organizations (SRO), Jurisdiction-Wide Resident 
Organizations, and National Resident Organizations (NRO). The NOFA will 
use ``Resident Association'' or ``RA'' to refer to all eligible types 
of resident organizations. See 24 CFR 964.115 for more information.
    17. Regional Resident Organization (RRO) means an incorporated 
nonprofit organization or association for public housing that meets 
each of the following requirements:
    a. The RRO is regional (i.e., not limited by HUD Areas);
    b. The RRO has experience in providing start-up and capacity-
building training to residents and resident organizations; and
    c. Public housing residents representing different geographical 
locations in the region must comprise the majority of the Board of 
Directors.
    18. Resident Management Corporation (RMC) means an entity that 
proposes to enter into, or enters into a contract to conduct one or 
more management activities of a PHA and meets the requirements of 24 
CFR 964.120.
    19. Resident Organization (RO) for tribal entities means an 
incorporated or unincorporated nonprofit tribal organization or 
association that meets each of the following criteria:
    a. It shall consist of residents only, and only residents may vote;
    b. If it represents residents in more than one development or in 
all of the developments of the tribal/TDHE community, it shall fairly 
represent

[[Page 11930]]

residents from each development that it represents;
    c. It shall adopt written procedures providing for the election of 
specific officers on a regular basis; and
    d. It shall have an elected governing board.
    20. Secretary means the Secretary of Housing and Urban Development.
    21. Site-Based Resident Associations means resident councils or 
resident management corporations representing a specific public housing 
development.
    22. Statewide Resident Organization (SRO) is an incorporated 
nonprofit organization or association for public housing that meets the 
following requirements:
    a. The SRO has statewide jurisdiction;
    b. The SRO has experience in providing start-up and capacity-
building training to residents and resident organizations; and
    c. Public housing residents representing different geographical 
locations in the state must comprise the majority of the Board of 
Directors.
    23. Tribal/TDHE Resident Group means tribal/TDHE resident groups 
that are democratically elected groups such as IHA-wide resident 
groups, area-wide resident groups, single development groups, or 
resident management corporations (RMCs).

C. Regulations Governing the ROSS Program

    ROSS Family and Homeownership is governed by 24 CFR Part 964.

II. Award Information

A. Performance Period and Award Type

    1. Grant Period. Three years. The grant period shall begin the day 
the grant agreement and the form HUD-1044, ``Assistance Award/
Amendment'' are signed by both the grantee and HUD.
    2. Grant Extensions. Requests to extend the grant term beyond the 
grant term must be submitted in writing to the local HUD field office 
or area ONAP at least 90 days prior to the expiration of the grant 
term. Requests must explain why the extension is necessary, what work 
remains to be completed, and what work and progress was accomplished to 
date. Extensions may be granted only once by the field office or area 
ONAP for a period not to exceed six months and may be granted for a 
further six months by the HUD Headquarters Program Office at the 
request of the Field Office or Area ONAP.
    3. Type of Award. Grant agreement.
    4. Subcontracting. Subcontracting is permitted. Grantees must 
follow federal procurement regulations found in HUD regulations at 24 
CFR 84.40-84.48 and 24 CFR 85.36.
    5. Total Funding. The Department expects to award $18,000,000 under 
this funding category of ROSS. Awards will be made as follows:
    a. PHAs must use the number of occupied conventional family public 
housing units as of September 30, 2005, per their budget to determine 
the maximum grant amount they are eligible for in accordance with the 
categories listed below. (Use HUD-51751 ROSS Fact Sheet.) Applicants 
should clearly indicate on the Fact Sheet the number of eligible units 
under their Annual Contributions Contract.

------------------------------------------------------------------------
                                                              Maximum
                                                            funding for
      Number of occupied family conventional units         PHAs/tribes/
                                                               TDHEs
------------------------------------------------------------------------
1-780 units.............................................        $150,000
781-2,500 units.........................................         250,000
2501-7,300 units........................................         350,000
7,301 or more units.....................................         600,000
------------------------------------------------------------------------

    b. The maximum grant award is $100,000 for each RA.
    c. Nonprofit organizations that have resident support or the 
support of tribes or RAs are limited to $100,000 for each RA. A 
nonprofit organization may submit a single application for no more than 
three different RAs from the same PHA for a maximum grant award of 
$300,000. Nonprofit organizations may submit more than one application 
provided they target residents of distinct PHAs or tribes/TDHEs. The 
maximum funds that may be awarded to any nonprofit applicant is 
$300,000 overall. In cases where nonprofit applicants are not able to 
obtain support from RAs, they must obtain letters of support from PHAs 
or tribes/TDHEs and they may also submit letters from one or more of 
the following: Resident Advisory Boards (RABs), local civic 
organizations, or units of local government. Note: All nonprofit 
applicants that do not include letters of support from RAs must include 
a letter of support from PHAs or tribes/TDHEs. (Please see Threshold 
Requirements for more information). Support letters must indicate the 
developments to be served by the nonprofit organization.
    Funding for nonprofit applicants that do not receive letters of 
support from RAs will be determined as follows (support letters from 
PHAs must indicate the developments to be served by the nonprofit 
organization as well as the number of occupied conventional family 
public housing units in those developments):

------------------------------------------------------------------------
                                                              Maximum
                                                            funding for
                                                            non-profits
              Number of conventional units                 with support
                                                           letters from
                                                          PHAs (not RAs)
------------------------------------------------------------------------
1-2,500 units...........................................        $100,000
2501-7,300 units........................................         200,000
7,301 or more units.....................................         300,000
------------------------------------------------------------------------

    Applicants should see the General Section for instructions on 
submitting support letters and other documentation with their 
electronic application.
    d. Tribes/TDHEs should use the number of units counted as Formula 
Current Assisted Stock for Fiscal Year-2005 as defined in 24 CFR 
1000.316. Tribes/TDHEs are eligible for the same amounts as PHAs within 
each category in (a) above. Tribes that have not previously received 
funds from the Department under the U.S. Housing Act of 1937 should 
count housing units under management that are owned and operated by the 
Tribe and are identified in their housing inventory as of September 30, 
2005, for family units. Tribes should clearly indicate the number of 
units under management on the Fact Sheet.

III. Eligibility Information

A. Eligible Applicants

    Eligible applicants are PHAs, tribes/TDHEs, RAs, and nonprofit 
organizations (including those nonprofit organizations supported by 
resident organizations or PHAs, tribes/TDHEs and RABs).

B. Cost Sharing or Matching

    The required Match is 25% of requested funds. The match is a 
threshold requirement. Applicants who do not demonstrate the minimum 25 
percent match will fail the threshold requirement and will not receive 
further consideration for funding. Please see the section below on 
threshold requirements for more information on what is required for the 
match.

C. Other

1. Eligible Activities
a. Eligible Program Activities
    Applicants should propose implementing comprehensive programs 
within the three year grant term which will result in improved housing 
and economic self-sufficiency for Public and Indian housing residents. 
Proposals should involve partnerships with organizations that will 
enhance grantees' ability to provide educational programs, housing 
counseling, fair housing counseling, job training and

[[Page 11931]]

other supportive services for residents. All applicants must complete a 
work plan (see sample work plans on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm) covering the three-year 
grant term.
    The eligible activities are listed in five categories, from basic 
to advanced: (1) Life-Skills Training; (2) Job Training, Job Search and 
Placement Assistance; (3) Post-Employment Follow-up; (4) Activities to 
Support Career Advancement and Long-term Economic Self-Sufficiency; and 
(5) Homeownership. Applicants are not limited to choosing one category 
of activity, but rather should design their programs to address the 
specific needs of the population they are targeting. Only applicants 
proposing activities in Category 5, Homeownership, and able to show 
existing linkages to an existing homeownership program such as, for 
PHAs, Housing Choice Voucher-Homeownership, Section 32, or 
homeownership programs and resources offered by other organizations or 
state or local homeownership programs and for Tribes/TDHEs, programs 
such as the Mutual Help Homeownership Opportunity Program, the Section 
184 Program, and homeownership programs developed under the Indian 
Housing Block Grant Program such as mortgage assistance, will be 
eligible for 2 points in Rating Factor 3, Soundness of Approach, under 
``Addressing HUD's Policy Priorities--Providing Increased Homeownership 
and Rental Opportunities for Low-and-Moderate-Income Persons. * * *'' 
Funds may be used for, but are not limited to, the activities described 
below.
    (Category 1) Life-skills Training (for Youth and Adults). 
Applicants' proposals can cover, but are not limited to, the following 
types of activities:
    (a) Credit. The importance of having good credit and how to 
maintain good credit.
    (b) Banking and Money Management. How to open a bank account; 
balance a checkbook; create a weekly spending budget and establish 
contingency plans for child care and transportation, etc.
    (c) Real Life Issues. Information on tax forms; voter registration; 
leases; car insurance; health insurance; long-term care insurance; etc.
    (d) Literacy training and GED preparation.
    (e) College preparatory courses and information.
    (f) Goal setting.
    (g) Mentoring.
    (h) Hiring residents to help with the implementation of this 
program. Note: Stipends and salaries serve different purposes. Resident 
salaries can only be used to hire residents to help program staff with 
the implementation of grant activities.
    (Category 2) Job Training, Job Search and Placement Assistance. 
Eligible activities include but are not limited to:
    (a) Skills Assessment of participating residents.
    (b) Applying for a job. How to complete employment forms; 
highlighting skills employers are looking for; researching job 
opportunities in the area; calculating net wages.
    (c) Soft skills training including problem solving and other 
cognitive skills; oral and written communication skills; workplace 
norms (appropriate dress, punctuality, respectful communication, etc.); 
work ethic; interpersonal and teamwork skills.
    (d) Creating job training and placement programs.
    (e) Resume writing.
    (f) Interviewing techniques.
    (g) Employer linkage and job placement. Working with local 
employers and job placement providers to design and offer training that 
addresses local employers' needs, create a job placement program that 
refers trained residents to participating employers and other local 
area employers.
    (h) Career advancement and planning programs. Such programs should 
be designed to:
    (i) Set career goals;
    (ii) Provide strategies such as finding a strong professional 
mentor within an organization for which residents may be working and 
focusing on the organization's priorities.
    (iii) Reinforce welfare-to-work programs and focus efforts on 
increasing residents' earning capacity. Activities can include job 
counseling, helping residents secure better paying jobs or jobs in 
better work environments, preparing for work in a new job category, 
obtaining additional job skills and other job-related or educational 
training.
    (iv) Working with local employers to create opportunities that 
combine education and skills training with jobs. Strategies that 
promote work-based learning can offer the most effective method for 
giving new workers the tools they need to move on to a career ladder 
and achieve upward mobility.
    (Category 3) Post-employment follow-up. After placing residents in 
jobs, providing follow-up and ongoing support to newly hired residents 
can have a significant positive impact on long-term job retention.
    (Category 4) Activities to Support Career Advancement and Long-term 
Economic Self-Sufficiency.
    (a) Individual Savings Accounts (ISAs). Applicants may create 
programs that encourage residents to save and contribute to match 
savings accounts such as Individual Development Accounts (IDAs). The 
programs should include financial counseling and education activities. 
ISAs may only be used for three purposes: (1) To purchase a first home 
that is existing or under construction when the purchase contract is 
signed; (2) to receive post-secondary education or training; or (3) to 
start a local business (other than acquiring, leasing, constructing, or 
rehabilitating real property in connection with the business). 
Applicants are encouraged to leverage funds by working with local 
financial organizations, which can also contribute to residents' ISAs. 
FSS escrow accounts may not be used as a match for ROSS-Family-
Homeownership-funded ISAs. Grantees shall consult the Internal Revenue 
Service regarding possible tax consequences of the ISAs to 
participating residents.
    (b) Housing Counseling to increase homeownership opportunities. 
This can include information to help residents move to market rate 
rental housing and/or ``pre-purchase'' homeownership counseling and 
training. This may include training on such subjects as credit and 
financial management; credit repair; housing search; how to finance the 
purchase of a home; fair housing; Individual Savings Accounts; Real 
Estate Settlement Procedures Act (RESPA); and home maintenance.
    (Category 5) Homeownership. Applicants should be able to show 
existing linkages with HUD homeownership programs such as: The Housing 
Choice Voucher Homeownership Program, the PHA Homeownership Program 
also known as Section 32 (formerly the Section 5(h) Homeownership 
Program) or homeownership programs and resources offered by other 
organizations or state or local homeownership programs.
    Tribes/TDHEs should be able to show existing linkages with programs 
such as the Mutual Help Homeownership Opportunity Program, the Section 
184 Program, and homeownership programs developed under the Indian 
Housing Block Grant Program such as mortgage assistance. Proposals 
should involve partnerships with organizations that will enhance the 
services grantees will offer. Applicants are strongly encouraged to 
partner with HUD-approved housing counseling agencies. For a list of 
HUD-approved housing

[[Page 11932]]

counseling agencies, go to: http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm.
    Eligible Activities include but are not limited to:
    (1) Training to include:
    (a) Asset building;
    (b) Credit counseling and credit scoring;
    (c) Financial literacy and management;
    (d) Selecting a real estate broker;
    (e) Choosing a lender;
    (f) Appraisals;
    (g) Home inspections;
    (h) Avoiding delinquency and predatory lending;
    (i) Foreclosure prevention;
    (j) Home maintenance and financial management for first-time 
homeowners;
    (k) Real Estate Settlement Procedures Act (RESPA); and
    (l) Fair Housing Counseling.
    (2) Individual Savings Accounts (ISAs). You may create programs 
that encourage residents to save and contribute to match savings 
accounts such as Individual Development Accounts (IDAs). ISAs to be 
used solely for (a) escrow accounts, (b) down payment assistance and 
(c) closing costs, to assist the resident to purchase an existing 
dwelling unit or a dwelling unit under construction.
b. Eligible Other Activities
    (1) Hiring of a qualified project coordinator to run the grant 
program. A qualified project coordinator must have at least two years 
of experience managing programs and should have experience working on 
supportive services programs. If Category 5 activities are being 
proposed, a qualified grant coordinator must have experience working on 
homeownership programs designed for typically underserved populations. 
The project coordinator should be hired for the entire three-year term 
of the grant. The project coordinator is responsible for:
    (a) Marketing the program to residents;
    (b) Assessing participating residents' skills and job-readiness;
    (c) Assessing participating residents' needs for supportive 
services, e.g., child care, transportation costs, etc.
    (d) Assisting a tribe or TDHE to create a resident group to promote 
self-sufficiency efforts on the reservation;
    (e) Designing coordinating and providing grant activities based on 
residents' needs and the local labor market; and
    (f) Monitoring the progress of program participants and evaluating 
the overall success of the program. A portion of grant funds should be 
reserved to ensure that evaluations can be completed for all 
participants who received training through this program. For more 
information on how to measure performance, please see Rating Factor 5 
in the ``Application Review Information'' section of this NOFA.
    (2) Staff Training.
    (3) Long Distance Travel subject to funding restrictions.
    (4) Lease or rental of space for program activities, but only under 
the following conditions:
    (i) The lease must be for existing facilities not requiring 
rehabilitation or construction;
    (ii) No repairs or renovations of the property may be undertaken 
with Federal funds; and
    (iii) Properties in the Coastal Barrier Resources System designated 
under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be 
leased or rented with Federal Funds.
    (5) Stipends. Stipends are an eligible use of grant funds. Stipends 
may be used for reasonable out-of-pocket costs. Stipends may be used to 
reimburse such things as local transportation to and from job training 
and job interviews, supplemental educational materials, and child care 
expenses. Stipends must be tied to residents' successful performance 
and regular attendance.
    (6) Hiring of Residents. Grant funds may also be used to hire a 
resident(s) as program staff.
    (7) Supportive Services.
    (a) After school programs for school-age children to include 
tutoring, remedial training, educational programming using computers.
    (b) Provision of information on the Earned Income Tax Credit 
Program, Food Stamps, Child Tax Credit Program, Medicaid, the State 
Child Health Insurance Program (SCHIP), Student Loan Interest 
Deduction, tribal welfare programs, and other benefit programs that can 
assist individuals and families to make a successful transition from 
welfare to work.
    (c) Transportation costs as necessary to enable participating 
families to receive services or commute to training or employment 
including purchase, rental or lease of a vehicle for the grantee and 
limited in use for program purposes.
    (d) Child-care while residents are participating in program-related 
activities.
    (e) Parenting courses.
    (f) Nutrition courses.
    (g) Health care information and services including referrals to 
mental health providers, alcohol and other drug abuse treatment 
programs.
    (h) English as a second language (ESL) classes.
    (i) Housekeeping courses.
    (j) Creating and maintaining linkages to local social service 
agencies, such as employment agencies, health departments, 
transportation agencies, economic/community development agencies, 
community colleges, recreational and cultural services, and other 
community organizations such as Boys & Girls Clubs, 4H-Clubs, Boy 
Scouts, Girl Scouts, etc.
    (8) Hiring or otherwise retaining other direct services staff as 
necessary for program activities.
    (9) Evaluation.
    (10) Administrative Costs. Administrative costs may include, but 
are not limited to, purchase of furniture, office equipment and 
supplies, program outreach, printing and postage, local travel, 
utilities, and lease or rental of space for program activities (subject 
to lease restrictions above). Administrative costs may not be used to 
pay for salaries of any kind. To the maximum extent practicable, when 
leasing space or purchasing equipment or supplies, business 
opportunities should be provided to businesses under Section 3 of the 
Housing and Urban Development Act of 1968. Administrative costs must 
not exceed 10 percent of the total grant amount requested from HUD.
2. Threshold Requirements
    Applicants must respond to each threshold requirement clearly and 
thoroughly by following the instructions below. If your application 
fails one threshold requirement (regardless of the type of threshold) 
it will be considered a failed application and will not receive 
consideration for funding.
    a. Match. All applicants are required to have in place a firmly 
committed 25 percent match in cash or in-kind donations as defined in 
this NOFA. Joint applicants must together have at least a 25 percent 
match. Applicants who do not demonstrate the minimum 25 percent match 
will fail this threshold requirement and will not receive further 
consideration for funding. If you are applying for more than one ROSS 
grant (i.e. ROSS-Elderly), you must use different sources of match 
donations for each grant application and you must indicate which 
additional ROSS grant(s) you are applying for by attaching an 
additional page to HUD budget form 424-CBW stating the sources and 
amounts of each of your match contributions for this application as 
well as any other HUD programs to which you are applying. Match to be 
used for ineligible activities will not be accepted. Match donations 
must be firmly committed which means that the amount of match resources 
and their

[[Page 11933]]

dedication to ROSS-funded activities must be explicit, in writing, and 
signed by a person authorized to make the commitment. Letters of 
commitment, memoranda of understanding (MOU), or tribal resolution must 
be on organization letterhead, and signed by a person authorized to 
make the stated commitment whether it be in cash or in-kind services. 
The letters of commitment/MOUs/tribal resolutions must indicate the 
total dollar value of the commitment and be dated between the 
publication date of this NOFA and the application deadline published in 
this NOFA, or amended deadline, and indicate how the commitment will 
relate to the proposed program. If the commitment is in-kind, the 
letters should explain exactly what services or material will be 
provided. The commitment must be available at time of award. Applicants 
proposing to use their own, non-ROSS grant funds to meet the match 
requirement in whole or in part, must also include a letter of 
commitment indicating the type of match (cash or in-kind) and how the 
match will be used. Please see the General Section for instructions for 
submitting the required letters with your electronic application.
    Committed amounts in excess of the 25 percent of the requested 
grant amount may be considered as leveraged funds for higher points 
under Rating Factor 4 (described in the ``Application Review 
Information'' section of this NOFA).
    (1) The value of volunteer time and services shall be computed by 
using the normal professional rate for the local area or the national 
minimum wage rate of $5.15 per hour (Note: applicants may not count 
their staff time toward the match);
    (2) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation stating 
the value of the contribution.
    (3) Other resources/services that can be committed include: In-kind 
services provided to the applicant; funds from Federal sources (not 
including ROSS funds) as allowed by statute, including, for example, 
Community Development Block Grant (CDBG) funds; Indian Housing Block 
Grant (IHBG) funds; funds from any state or local government sources; 
and funds from private contributions. Applicants may also partner with 
other program funding recipients to coordinate the use of resources in 
the target area.
    b. Past Performance. HUD's field offices will evaluate data 
provided by applicants as well as applicants' past performance to 
determine whether applicants have the capacity to manage the grant for 
which they are applying. The area ONAP will review past performance for 
tribal and TDHE submissions. Field offices will evaluate the contract 
administrators' past performance for applicants required to have a 
contract administrator. In evaluating past performance HUD will look at 
the applicant's record of completing grant activities on time, within 
budget and the results achieved. Using Rating Factor 1, the field 
office/area ONAP will evaluate applicants' past performance. Applicants 
should carefully review Rating Factor 1 to ensure their application 
addresses each of the criteria requested therein. If applicants fail to 
address what is requested in Rating Factor 1, their application will 
fail this threshold and will not receive further consideration.
    c. Contract Administrator Partnership Agreement. All nonprofit 
applicants, all RAs, and PHAS troubled PHAs (as of the application 
publication date) are required to submit a signed Contract 
Administrator Partnership Agreement. The agreement must be for the 
entire grant term. Applicants required to have a Contract Administrator 
Partnership Agreement that fail to submit one will fail this threshold 
requirement and will not receive further consideration for funding. See 
the Definitions and Program Requirements Sections of this NOFA for more 
information on Contract Administrators. Please see the General Section 
for instructions on submitting the information with your electronic 
application.
    Troubled PHAs are not eligible to be contract administrators. Grant 
writers who assist applicants with preparing their ROSS applications 
are also ineligible to be contract administrators. For more information 
on contract administrators, see the section ``Program Requirements.''
    d. Letters of Support for Nonprofit Applicants.
    (1) All nonprofit applicants must include one or more letters of 
support from resident associations (RAs), Resident Advisory Boards 
(RABs), local civic organizations, or units of local government. In the 
event that RAs are inactive, or that applicants submit letters of 
support from other organizations such as RABs, nonprofit applicants 
must also submit letters from PHAs or tribes/TDHEs indicating support 
for their application. All letters of support must be signed by an 
authorized representative of the supporting organization and dated 
within two months of the application deadline published in this NOFA.
    (2) Nonprofit applicants that do receive support from resident 
associations must submit form HUD-52754 ``List of Resident Associations 
Supporting Nonprofit Applicants.'' Submitting this form is not 
applicable where RAs are inactive or where applicants do not submit 
letters of support from RAs.
    (3) In cases where nonprofit organizations are applying to serve 
tribes/TDHEs, nonprofit applicants must submit letters of support from 
tribes/TDHEs. Nonprofit organizations must also use form HUD-52754 to 
list which tribes/TDHEs support their application.
    (4) Letters of support from RAs or RABs must describe to what 
extent they are familiar with the nonprofit applicant and indicate 
their support and understanding of the nonprofit organization's 
application. Letters from RAs/RABs must include contact information and 
the name and title of the person authorized to sign for the 
organization and should, whenever possible, be on RA/RAB letterhead. If 
RA/RAB letterhead is not available, the letter may be submitted on PHA 
letterhead.
    (5) Letters of support from civic organizations or units of local 
government must describe to what extent they are familiar with the 
nonprofit applicant and which programs the nonprofit applicant has 
operated or managed in the community that are similar to the 
applicant's proposal. Such letters of support must include contact 
information and the name and title of the person authorized to sign for 
the organization. The letter should be on organization letterhead.
    (6) All nonprofit applicants that do not provide letters of support 
from resident associations must provide letters of support from PHAs or 
tribes/TDHEs with jurisdiction over the developments the applicant 
proposes to serve. Letters from PHAs or tribes/TDHEs must describe the 
extent to which the nonprofit applicant is familiar with the needs of 
the community to be served, which programs the nonprofit applicant has 
operated or managed in the community that are similar to the 
applicant's proposal, and whether the nonprofit organization has the 
capacity to implement its proposed program. Letters from PHAs or 
tribes/TDHEs must also list the names of the developments to be served, 
the number of occupied conventional family or elderly/disabled public 
housing units (depending on the grant category) in those developments, 
certify that the units are conventional

[[Page 11934]]

public housing, and identify the ROSS grant category to which the 
nonprofit organization is applying. PHA or tribe/TDHE letters of 
support must be signed by the Executive Director, tribal leader, or 
authorized designee and must be on PHA or tribe/TDHE letterhead. Please 
see the General Section for instructions for submitting the required 
letters with your electronic application.
    (7) Applications from nonprofit organizations, which do not submit 
the information requested in this section will fail this threshold 
requirement and will not be considered for funding.
    e. Nonprofit status. All nonprofit applicants must submit their IRS 
determination letter to prove their nonprofit (e.g., 501(c)(3)) status. 
Applicants that fail to submit this letter will fail this threshold 
requirement and will not be considered for funding. Please see the 
General Section for instructions for submitting the required 
documentation with your electronic application.
    f. Minimum Score for All Fundable Applications. Applications that 
pass all threshold requirements and go through the ranking and rating 
process, must receive a minimum score of 75 in order to be considered 
for funding.
    g. General Section Thresholds. All applicants will be subject to 
all Thresholds requirements listed in the General Section.
    h. The Dun and Bradstreet Universal Numbering System (DUNS) Number 
Requirement. Refer to the General Section for information regarding the 
DUNS requirement. You will need to obtain a DUNS number to receive an 
award from HUD.
3. Program Requirements
    a. Contract Administrator. The contract administrator must assure 
that the financial management system and procurement procedures that 
will be in place during the grant term will fully comply with either 24 
CFR part 84 or 85, as appropriate. CAs are expressly forbidden from 
accessing HUD's Line of Credit Control System (LOCCS) and submitting 
vouchers on behalf of grantees. Contract administrators must also 
assist grantees to meet HUD's reporting requirements. Contract 
administrators may be: Local housing agencies; community-based 
organizations such as community development corporations (CDCs), 
churches, temples, synagogues, mosques; nonprofit organizations; state/
regional associations and organizations. Troubled PHAs are not eligible 
to be contract administrators. Grant writers who assist applicants 
prepare their applications are also ineligible to be contract 
administrators. Organizations that the applicant proposes to use as the 
contract administrator must not violate or be in violation of other 
conflicts of interest as defined in 24 CFR part 84 and 24 CFR part 85.
    b. Requirements Applicable to All Applicants. All applicants, lead 
and non-lead, should refer to ``Other Requirements and Procedures 
Applicable to All Programs'' of the General Section for requirements 
pertaining specifically to procurement of recovered materials and for 
information regarding other requirements to which they may be subject.
4. Number of Applications Permitted
    Applicants may desire to provide a broad range of services 
supported by grants from a number of ROSS funding categories. 
Applicants may submit more than one application only based on the 
criteria below:
    a. General. Applicants may submit up to one application for each 
ROSS funding category (i.e., one application for ROSS-Elderly/Persons 
with Disabilities, one application for ROSS-Family-Homeownership, 
etc.), except in the case of nonprofits. Nonprofit organizations may 
submit more than one application per ROSS funding category provided 
they will be serving residents of distinct PHAs or Tribes/TDHEs.
    b. More than one application per development. Only one application 
per funding category will be funded for a particular development. For 
example, if multiple applicants apply for ROSS-Family-Homeownership for 
the same development, only the highest scoring application will be 
considered for award. If multiple applicants are interested in 
providing services to a development and the services are funded under 
the same ROSS funding category, it is suggested the applicants work 
together to submit one application on behalf of the development.
    c. Joint applications. Two or more applicants may join together to 
submit a joint application for proposed grant activities. Joint 
applications must designate a lead applicant. The lead applicant must 
be registered with Grants.gov and submit the application using the 
Grants.gov portal. Lead applicants are subject to all threshold 
requirements. Non-lead applicants are subject to the following 
threshold requirements as applicable:
    (1) Letters of support for nonprofit applicants;
    (2) Evidence of nonprofit status as outlined under the section 
covering threshold requirements; and
    (3) Threshold requirements outlined in Section III. C. of the 
General Section.
    Joint applications may include PHAs, RAs, Tribes/TDHEs, and 
nonprofit organizations on behalf of resident organizations. Joint 
applications involving nonprofit organizations must also provide 
evidence of resident support or support from local civic organizations 
or from units of local government. PHAs, tribes/TDHEs, and resident 
organizations that are part of a joint application may not also submit 
separate applications as sole applicants under this NOFA.


    Note: The lead applicant will determine the maximum funding 
amount the applicants are eligible to receive.

5. Eligible Participants
    All ROSS Family and Homeownership program participants must be 
residents of conventional public housing or NAHASDA-assisted housing. 
Participants in the Public Housing Family Self-Sufficiency (FSS) 
program (non-Housing Choice Voucher FSS Program) are also eligible to 
participate in activities funded under ROSS.
6. Eligible Developments
    Only conventional Public and Indian housing developments and 
NAHASDA-assisted may be served by ROSS grant funds. Other housing/
developments, including, but not limited to private housing, federally 
insured housing, federally subsidized or assisted (i.e., assisted under 
Section 8, Section 202, Section 811, Section 236), and others are not 
eligible to participate in ROSS.
7. Energy Star
    HUD has adopted a wide-ranging energy action plan for improving 
energy efficiency in all program areas. As a first step toward 
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, and to help 
protect the environment. Applicants providing housing assistance or 
counseling services are encouraged to promote Energy Star materials and 
practices, as well as buildings constructed to Energy Star standards, 
to both 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

[[Page 11935]]

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, 888-588-9920 (TTY).

IV. Application and Submission Information

A. Address To Request an Application Package

    Copies of the published NOFAs and application forms for HUD 
programs announced through NOFA may be downloaded from the grants.gov 
Web site at http://www.grants.gov/Find; if you have difficulty 
accessing the information you may receive customer support from 
Grants.gov by calling their Support Desk at (800) 518-GRANTS, or 
sending an email to [email protected]. You may request general 
information, from the NOFA Information Center (800-HUD-8929) or 800-
HUD-2209 (TTY) between the hours of 10 a.m. and 6:30 p.m. (Eastern 
Time) Monday through Friday, except on federal holidays. When 
requesting information, please refer to the name of the program you are 
interested in. The NOFA Information Center opens for business 
simultaneously with the publication of the SuperNOFA. You can also 
obtain information on this NOFA from HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

B. Content and Form of Application Submission

    1. Application Format Information for All Applicants. Applicants 
should make sure to include all requested information, according to the 
instructions found in this NOFA and where applicable, in the General 
Section. This will help ensure a fair and accurate review of your 
application.
    2. Content and Format for Submission
    a. Content of Application.
    Applicants must write narrative responses to each of the rating 
factors, which follow this section. Applicants will be evaluated on 
whether their responses demonstrate that they have the necessary 
capacity to successfully manage the proposed program. Applicants should 
ensure that their narratives are written clearly and concisely so that 
HUD reviewers, who may not be familiar with the ROSS program, may fully 
understand your proposal.
    b. Format of Application.
    (1) Applications may not exceed 35 narrative pages. Narrative pages 
must be typed, double-spaced, numbered, use Times New Roman font style, 
one inch margins and font size 12. Supporting documentation, required 
forms, and certifications will not be counted toward the 35 narrative 
page limit. However, applicants should make every effort to submit only 
what is necessary in terms of supporting documentation. Please see the 
General Section for instructions on how to submit supporting 
documentation with your electronic application.
    (2) A checklist is provided o ensure applicants submit all required 
forms and information. Applicants are not required to submit the 
checklist but should review it to ensure that they have submitted a 
complete application. (Note: Applicants who receive a waiver to submit 
paper applications, must submit their applications in a three-ring 
binder, with TABS dividing the sections as indicated below. When 
submitting electronically, you do not need to submit these in TABS. Be 
sure to name each attachment clearly.) Copies of the forms may be 
downloaded with the application package and instructions from 
www.Grants.gov/Apply of from the following Web site: http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    TAB 1: Required Forms from the General Section and other ROSS 
forms:
    1. Acknowledgement of Application Receipt (HUD-2993), for paper 
application submissions only (you must have an approved waiver to 
submit a paper application);
    2. Application for Federal Financial Assistance (SF-424);
    3. SF-424 Supplement, Survey on Ensuring Equal Opportunity for 
Applicants;
    4. Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD-27300);
    5. ROSS Fact Sheet (HUD-52751);
    6. Grant Application Detailed Budget (HUD-424-CB);
    7. Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    8. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    9. Certification of Consistency with RC/EZ/EC-II Strategic Plan 
(HUD-2990) if applicable;
    10. Certification of Consistency with the Consolidated Plan (HUD-
2991) if applicable;
    11. Certification of Consistency with the Indian Housing Plan if 
applicable (HUD-52752);
    12. Certification of Resident Council Board of Election (not 
required for tribes/nonprofit organizations working on behalf of 
tribes) (HUD-52753); 13. Disclosure of Lobbying Activities (SF-LLL), if 
applicable;
    13. Disclosure of Lobbying Activities Continuation Sheet (SF-LLL-
A), if applicable;
    14. You Are Our Client Grant Applicant Survey (HUD-2994-A) 
(Optional);
    15. Facsimile Transmittal Sheet (HUD-96011) (For use with 
electronic applications as the cover sheet to provide third party 
documentation).
    TAB 2: Threshold Requirements:
    1. Letters from Partners attesting to match;
    2. Letter from Applicant's organization attesting to match (if 
applicant is contributing to match);
    3. Letters of Support from Resident Associations/PHAs/tribes/TDHEs/ 
Resident Advisory Boards/local civic organizations and/or units of 
local government (Threshold requirement for all nonprofit applicants);
    4. Chart of Resident Associations Participating (required for 
nonprofit applicants but not applicable to applications from tribes/
TDHEs.) (HUD-52754);
    5. IRS nonprofit determination letter proving 501(c)(3) status 
(Threshold requirement for all nonprofit applicants); and
    6. Contract Administrator Partnership Agreement (required for 
nonprofit organizations, resident associations, and PHAS troubled PHAs) 
(HUD-52755).
    TAB 3: Narrative for Rating Factor 1 and ROSS Program Forms:
    1. Narrative;
    2. Chart A: Program Staffing (HUD-52756);
    3. Chart B: Applicant/Administrator Track Record (HUD-52757);
    4. Resumes/Position Descriptions;
    5. Statement attesting to Housing Choice Voucher Homeownership 
program, Section 32 or other program, if proposing activities in 
Category 5.
    TAB 4: Narrative for Rating Factor 2.
    TAB 5: Rating Factor 3:
    1. Narrative;
    2. Work plan (see relevant sample ROSS work plan HUD 52763).
    TAB 6: Narrative for Rating Factor 4.
    TAB 7: Rating Factor 5.
    1. Narrative;
    2. Logic Model (HUD-96010):

C. Submission Dates and Times

    1. Due Dates. The application must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on the deadline 
date of August 8, 2006. If your waiver request is approved, the 
notification of approval of the waiver request will provide 
instructions on where to submit the paper application. See the General 
Section for instructions

[[Page 11936]]

regarding waivers to the electronic application submission requirement. 
If an applicant receives a waiver to the electronic application 
submission requirement, the application must be received by the 
application deadline date.

D. Intergovernmental Review

    Not applicable.

E. Funding Restrictions

    1. Reimbursement for Grant Application Costs. Grantees are 
prohibited from using ROSS grant funds to reimburse any costs incurred 
in conjunction with preparation of their ROSS application.
    2. Covered Salaries.
    a. Project Coordinator. All applicants may propose to hire a 
qualified project coordinator to run the program. The ROSS Family and 
Homeownership program will fund up to $65,000 in combined annual salary 
and fringe benefits for a full-time project coordinator. Applicants may 
propose a part-time coordinator at a lesser salary. For audit purposes, 
applicants must have documentation on file demonstrating that the 
salary and fringe benefits of the project coordinator are comparable to 
similar professions in their local area.
    b. Resident Salaries. No more than five percent of -ROSS-Family and 
Homeownership funds may be used to pay for resident salaries.
    c. Types of Salaries. ROSS Family and Homeownership funds may only 
be used for the types of salaries described in this section according 
to the restrictions described herein. ROSS funds may only be used to 
pay for salaries of staff that provide direct services to residents. 
Direct services staff, for purposes of this NOFA, are defined as 
applicant personnel or subcontractors who, as their primary 
responsibility, provide services directly to residents that participate 
in the activities described in this application e.g., housing and 
credit counselors, case managers, job trainers, childcare providers, 
among other positions. ROSS funds may not be used to pay for salaries 
for any other kind of staff.
    3. Administrative Costs. For all applicants, administrative costs 
may include, but are not limited to, purchase of furniture, office 
equipment and supplies, program outreach, printing and postage, local 
travel, utilities, and lease or rental of space for program activities 
(subject to restrictions on leasing--See Eligible Activities section of 
this NOFA.). Administrative costs may not be used to pay for salaries 
of any kind. Administrative costs must not exceed 10 percent of the 
total grant amount requested from HUD. Administrative costs must adhere 
to OMB Circular A-87 or A-122 as appropriate. Please use HUD-424-CBW to 
itemize your administrative costs.
    4. Individual Savings Accounts (ISAs). ROSS Family and 
Homeownership funds can be used as matching funds for ISAs but no more 
than 20 percent of total grant funds may be used for this purpose.
    5. Stipends. No more than $200 of the grant award may be used per 
participant per month for stipends for active trainees and program 
participants. Stipends may only be used to reimburse reasonable out-of-
pocket expenses related to participation in training and other program-
related activities. Receipts for such expenses must be provided by the 
resident in order to obtain reimbursement. Stipends are not considered 
an administrative expense and therefore are not subject to the 10 
percent limitation on administrative costs.
    6. Funding Requests in Excess of Maximum Grant Amount. Applicants 
that request funding in excess of the maximum grant amount which they 
are eligible to receive will be given consideration only for the 
maximum grant for which they are eligible. If a grant is awarded, the 
grantee will work with the Field Office or Area ONAP to re-apportion 
the grant funds for eligible activities.
    7. Ineligible Activities/Costs. Grant funds may not be used for 
ineligible activities. The following are ineligible activities/costs:
    a. Payment of wages and/or salaries to participants for receiving 
supportive services and/or training programs (this does not include 
stipends);
    b. Purchase, lease, or rental of land;
    c. New construction, costs for construction materials;
    d. Rehabilitation or physical improvements;
    e. Vehicle insurance and/or maintenance;
    f. Entertainment costs;
    g. Purchasing food;
    h. Payment of wages and/or salaries to doctors, nurses or other 
staff (including health aids or companions) in relation to medical 
services provided to residents;
    i. Purchase of non-prescription or prescription medications;
    j. Down payment assistance (NOTE: Participants may use their ISAs 
for this purpose);
    k. Revolving loan funds;
    l. Costs which exceed limits identified in the NOFA, for the 
following: Project Coordinator, resident salaries, ISAs, stipends, 
administrative expenses, and long distance travel;
    m. Cost of application preparation;
    n. Scholarships for degree programs;
    o. Salaries for staff that are not direct services staff. Direct 
services staff, for purposes of this NOFA, are defined as applicant 
personnel or subcontractors who, as their primary responsibility, 
provide services directly to residents that participate in the 
activities described in this application, e.g., case managers, job 
trainers, childcare providers, among other positions.
    p. Purchase of space.
    8. ROSS funds cannot be used to hire or pay for the services of a 
Contract Administrator.
    9. Other Budgetary Restrictions. Some long distance travel may be 
necessary during the term of the grant in order for professional grant 
staff to attend training conferences for ROSS grantees. Long distance 
travel costs for grant program staff may not exceed $5,000 for the life 
of the grant and must receive prior approval from the grantee's local 
HUD field office or area ONAP.

F. Other Submission Requirements

    1. All applicants are required to submit their applications 
electronically via Grants.gov unless they request and are approved by 
HUD for a waiver of that requirement. Please refer to the General 
Section for information on how to submit your application and all 
attachments electronically via Grants.gov.
    2. Proof of Timely Submission. Please see the General Section for 
this information. Applicants that fail to meet the deadline for 
application receipt will not receive funding consideration.
    3. For Waiver Recipients Only. Applicants who have received waivers 
to submit paper applications (see the General Section for more 
information) must submit their applications to: HUD Grants Management 
Center, Mail Stop: ROSS Family and Homeownership, 501 School Street, 
SW., 8th floor, Washington, DC 20024.
    4. Number of Copies. Only applicants receiving a waiver to the 
electronic submission requirement may submit a paper copy application. 
Paper applications must be submitted in triplicate (one original and 
two identical copies). For all applicants with a waiver (including 
tribal and TDHE applicants), the original and one identical copy must 
be sent to the Grants Management Center and an identical copy must be 
sent to your local Field Office or Area ONAP in accordance with the 
submission and timely receipt requirements described in the General

[[Page 11937]]

Section. All paper applications must be received by the deadline date.

V. Application Review Information

A. Criteria

    1. Factors for Award Used to Evaluate and Rate Applications to the 
ROSS program. The factors for rating and ranking applicants and maximum 
points for each factor are provided below. The maximum number of points 
available for this program is 102. This includes two RC/EZ/EC-II bonus 
points. The SuperNOFA contains a certification that must be completed 
in order for the applicant to be considered for the RC/EZ/EC-II bonus 
points. A listing of federally designated RCs, EZs, and EC-IIs is 
available at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. The 
agency certifying to RC/EZ/EC-II status must be contained in the 
listing of RC/EZ/EC-II organizations on HUD's Web site at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.


    Note: Applicants should carefully review each rating factor 
before writing a response. Applicants' narratives should be as 
descriptive as possible, ensuring that every requested item is 
addressed. Applicants should make sure their narratives thoroughly 
address the Rating Factors below. Applicants should include all 
requested information, according to the instructions found in this 
NOFA. This will help ensure a fair and accurate application review.

a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (25 Points)
    This factor addresses whether the applicant has the organizational 
capacity and resources necessary to successfully implement the proposed 
activities within the grant period. In rating this factor HUD will 
consider the extent to which the proposal demonstrates that the 
applicant will have qualified and experienced staff dedicated to 
administering the program.
    (1) Proposed Program Staffing (7 Points).
    (a) Staff Experience (4 Points). The knowledge and experience of 
the proposed project coordinator, staff, and partners in planning and 
managing programs for which funding is being requested. Experience will 
be judged in terms of recent, relevant and successful experience of 
proposed staff to undertake eligible program activities. In rating this 
factor, HUD will consider experience within the last 5 years to be 
recent; experience pertaining to the specific activities being proposed 
to be relevant; and experience producing specific accomplishments to be 
successful. The more recent the experience and the more experience 
proposed staff members who work on the project have in successfully 
conducting and completing similar activities, the greater the number of 
points applicants will receive for this rating factor. The following 
information should be provided in order to provide HUD an understanding 
of proposed staff's experience and capacity:
    (i) The number of staff years (one staff year = 2080 hours) to be 
allocated to the proposed program by each employee or expert as well as 
each of their roles in the program;
    (ii) The staff's relevant educational background and/or work 
experience; and
    (iii) Relevant and successful experience running programs whose 
activities are similar to the eligible program activities described in 
the grant application.
    (b) Organizational Capacity (3 Points). Applicants will be 
evaluated based on whether they or their partners have sufficient 
qualified personnel to deliver the proposed activities in a timely and 
effective fashion. In order to enhance or supplement capacity, 
applicants should provide evidence of partnerships with nonprofit 
organizations or other organizations that have experience providing 
supportive services to typically underserved populations. Applicants' 
narratives must describe their ability to immediately begin the 
proposed work program. Provide resumes and position descriptions (where 
staff is not yet hired) for all key personnel. (Resumes/position 
descriptions do not count toward the 35-page limit.)
    (2) Past Performance of Applicant/Contract Administrator (6 
Points).
    (a) Applicants' past experience may include, but is not limited to, 
running and managing programs aimed at assisting residents of low-
income housing to achieve housing and economic self-sufficiency
    (b) Applicants' narratives must indicate past grants they received 
and managed, the grant amounts, and grant terms (years) of the grants, 
which they are counting toward past experience.
    (c) Applicants' narratives must describe how they (or their 
Contract Administrator) successfully implemented past grant programs 
designed to promote resident self-sufficiency, moving from welfare to 
work, and/or helping residents move to market rate rental housing or 
homeownership.
    (d) Applicants will be evaluated according to the following 
criteria:
    (i) Achievement of specific measurable outcomes and objectives in 
terms of benefits gained by participating residents. Applicants should 
describe results their programs have obtained, such as:

--Reduced welfare dependency, higher incomes, higher rates of 
employment, increased savings, moving from subsidized housing to market 
rate rental housing; and for Category 5,
--Number of families in homeownership counseling pipeline, rates of 
homeownership achieved through training programs.

    (ii) Description of success in attracting and keeping residents 
involved in past grant-funded training programs. HUD wants to see that 
applicants' grant-funded programs benefited a significant numbers of 
residents;

    (iii) Description of timely and accurate expenditure of program 
funding throughout the term of past grants. This means regular (i.e., 
quarterly) and accurate drawdowns throughout the life of the grant, 
with all funds expended by the end of the grant term;
    (iv) Description of Past Leveraging. Applicants must describe how 
they have created leveraging partnerships for funding or in-kind 
services for previous projects, the extent of the leveraging 
partnership and how leveraging and partnerships benefited program 
participants.
    (3) Program Administration and Fiscal Management (12 Points).
    (a) Program Administration and Accountability (6 Points). 
Applicants should describe how they will manage the program; how HUD 
can be sure that there is program accountability; and provide a 
description of proposed staff's roles and responsibilities. Applicants 
should also describe how grant staff and partners will report to the 
project coordinator and other senior staff.
    (b) Fiscal Management (6 Points). In rating this factor, 
applicants' skills and experience in fiscal management will be 
evaluated. If applicants have had any audit or material weakness 
findings in the past five years, they will be evaluated on how well 
they have addressed them. Applicants must provide the following:
    (i) A complete description of their fiscal management structure, 
including fiscal controls currently in place including those of a 
Contract Administrator for applicants required to have a Contract 
Administrator (i.e., PHAS troubled PHAs, resident associations, and 
nonprofit applicants);
    (ii) Applicants must list any audit findings or material weaknesses 
in the past five years (HUD Inspector General,

[[Page 11938]]

management review, fiscal, etc.), and what has been done to address 
them;
    (iii) For applicants who are required to have a Contract 
Administrator, describe the skills and experience the Contract 
Administrator has in managing federal funds.
b. Rating Factor 2: Need/Extent of the Problem (10 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed program. In responding to this factor, applicants 
will be evaluated on the extent to which they describe and document the 
level of need for their proposed activities and the urgency for meeting 
the need.
    In responding to this factor, applicants must include:
    (1) Socioeconomic Profile (3 points). A thorough socioeconomic 
profile of the eligible residents to be served by the program, 
including education levels, income levels, the number of single-parent 
families, economic statistics for the local area, etc.
    (2) Demonstrated Link Between Proposed Activities and Local Need (7 
points). Applicants' narratives must demonstrate a clear relationship 
between proposed activities, community needs and the purpose of the 
program funding in order for points to be awarded for this factor.
c. Rating Factor 3: Soundness of Approach (30 Points)
    This factor addresses both the quality and cost-effectiveness of 
applicants' proposed work plan. The narrative and work plan must 
indicate a clear relationship between proposed activities and intended 
outcomes, the targeted population's needs, and the purpose of the 
program funding. Applicants' proposed activities must address HUD's 
policy priorities outlined in this Rating Factor.
    In rating this factor HUD will consider:
    (1) Quality of the Work Plan (18 points). This factor evaluates 
both the applicant's work plan and budget, which will be evaluated 
based on the following criteria:
    (a) Specific Services and/or Activities (10 points). Applicants' 
narratives must describe the specific services, course curricula, and 
activities they plan to offer and who will be responsible for each. In 
addition to the narrative, applicants must also provide a work plan, 
which must list the specific services, activities, and outcomes they 
expect. The proposed program narrative and work plan must show a 
logical order of activities and progress and must tie to the outcomes 
and outputs applicants identify in the Logic Model (see Rating Factor 
5). Please see a sample work plan in the Appendix. Applicants' 
narratives must explain how their proposed activities will:
    (i) Involve community partners in the delivery of services (4 
points);
    (ii) Offer comprehensive services (versus a small range of 
services) geared toward achieving the following (6 points):

--Enhancing economic opportunities for residents leading to economic 
self-sufficiency and homeownership or other housing self-sufficiency;

    (b) Feasibility and Demonstrable Benefits (3 points). This factor 
examines whether applicants' work plan are logical, feasible and likely 
to achieve its stated purpose during the term of the grant. HUD's 
desire is to fund applications that will quickly produce demonstrable 
results and advance the purposes of the ROSS program.
    (i) Timeliness. This subfactor evaluates whether applicants' work 
plans demonstrate that their projects are ready to be implemented 
shortly after grant award, but not to exceed three months following the 
execution of the grant agreement. The work plan must indicate time 
frames and deadlines for accomplishing major activities. (1 point).
    (ii) Description of the problem and solution. The work plan will be 
evaluated based on how well applicants' proposed activities address the 
needs described in Rating Factor 2. (2 points).
    (c) Budget Appropriateness/Efficient Use of Grant (5 Points). The 
score in this factor will be based on the following:
    (i) Justification of expenses. Applicants will be evaluated based 
on whether their expenses are reasonable and thoroughly explained, and 
support the objectives of their proposal.
    (ii) Budget Efficiency. Applicants will be evaluated based on 
whether their application requests funds commensurate with the level of 
effort necessary to accomplish their goals and anticipated results.
    (d) Ineligible Activities. Two points will be deducted for each 
ineligible activity proposed in the application, as identified in 
Section IV(E). For example, you will lose 2 points if you propose costs 
that exceed the limits identified in the NOFA for a Project 
Coordinator; or you will lose 2 points if you propose paying for 
salaries for staff that are not direct services staff.
    (2) Addressing HUD's Policy Priorities (10 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle through which long-term, positive 
change can be achieved at the community level. Applicants' narratives 
and work plans will be evaluated based on how well they meet the 
following HUD policy priorities:
    (i) Improving the Quality of Life in Our Nation's Communities (2 
points). In order to receive points in this category, applicants' 
narrative and/or work plan must indicate the types of activities, 
service, and training programs applicants will offer which can help 
residents successfully transition from welfare to work and earn higher 
wages.
    (ii) Providing Increased Homeownership and Rental Opportunities for 
Low- and Moderate-Income Persons, Persons with Disabilities, the 
Elderly, Minorities, and Families with Limited English Proficiency 
(Note: Only applicants proposing Category 5--Homeownership activities 
are eligible for these points.) (2 points). In order to receive points 
in this category, applicants' narratives and/or work plans must 
indicate the types of activities and training programs they will offer 
which can help residents successfully transition to homeownership. 
Applicants that indicate that they have existing linkages to an 
existing homeownership program such as, for PHAs, Housing Choice 
Voucher-Homeownership, Section 32, or homeownership programs and 
resources offered by other organizations or state or local 
homeownership programs or for Tribes/TDHEs, programs such as the Mutual 
Help Homeownership Opportunity Program, the Section 184 Program, and 
homeownership programs developed under the Indian Housing Block Grant 
Program such as mortgage assistance, must provide a specific statement 
attesting to these linkages and indicating the minimum number of 
homeownership opportunities (e.g,. number of HCV-Homeownership vouchers 
or number of homes in the Section 32 program that will be dedicated to 
ROSS participants) that will be provided annually to residents 
successfully completing the requirements of the programs funded by this 
NOFA.
    (iii) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (4 
points). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations that are not usually effectively 
utilized. These grassroots organizations have a strong history of 
providing vital community services

[[Page 11939]]

such as developing first-time homeownership programs, creating economic 
development programs, providing job training and other supportive 
services. In order to receive points under this factor, applicants' 
narratives and/or work plans must describe how applicants will work 
with these organizations and what types of services they will provide.
    (iv) Policy Priority for Increasing the Supply of Affordable 
Housing Through the Removal of Regulatory Barriers to Affordable 
Housing (up to 2 points).
    Under this policy priority, higher rating points are available to 
(1) governmental applicants that are able to demonstrate successful 
efforts in removing regulatory barriers to affordable housing, and (2) 
nongovernmental applicants that are associated with jurisdictions that 
have undertaken successful efforts in removing barriers. For applicants 
to obtain the policy priority points for efforts to successfully remove 
regulatory barriers, applicants would have to complete form HUD 27300, 
``Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers.'' A copy of HUD's Notice entitled America's Affordable 
Communities Initiative, HUD's Initiative on Removal of Regulatory 
Barriers: Announcement of Incentive Criteria on Barrier Removal in 
HUD's 2004 Competitive Funding Allocations'' can be found on HUD's Web 
site at http://www.hud.gov/grants/index.cfm. The information and 
requirements contained in HUD's regulatory barriers policy priority 
apply to this FY-2006 NOFA. A description of the policy priority and a 
copy of form HUD-27300 can be found in the application package posted 
on www.Grants.gov. Applicants are encouraged to read the Notice as well 
as the General Section to obtain an understanding of this policy 
priority and how it can impact their score. A limited number of 
questions expressly request the applicant to provide brief 
documentation with their response. Other questions require that for 
each affirmative statement made, the applicant must supply a reference, 
URL, or a brief statement indicating where the back-up information may 
be found, and a point of contact, including a telephone number and/or 
email address. The electronic copy of the HUD 27300 has space to 
identify a URL or reference that the material is being scanned and 
attached to the application as part of the submission or faxed to HUD 
following the facsimile submission instructions.

Economic Opportunities for Low- and Very Low-Income Persons (Section 3) 
(2 Points)

    You will receive 2 points if your application demonstrates that you 
will implement 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 in connection with this 
grant, if awarded. Information about Section 3 can be found at HUD's 
Section 3 Web site at www.hud.gov/fhe/sec3over.html. Your application 
must describe how you will implement Section 3 through the proposed 
grant activities. You must state 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.
d. Rating Factor 4: Leveraging Resources (20 Points)
    This factor addresses the applicant's ability to secure community 
resources that can be combined with HUD's grant resources to achieve 
program purposes. Applicants are required to create partnerships with 
organizations that can help achieve their program's goals. PHAs are 
required by section 12(d)(7) of the U.S. Housing Act of 1937 entitled 
``Cooperation Agreements for Economic Self-Sufficiency Activities'' to 
make best efforts to enter into such agreements with relevant state or 
local agencies. In rating this factor, HUD will look at the extent to 
which applicants partner, coordinate and leverage their services with 
other organizations serving the same or similar populations.
    Applicants must have at least a 25 percent cash or in-kind match. 
The match is a threshold requirement. Joint applicants must together 
have at least a 25 percent match. Applicants who do not demonstrate the 
minimum 25 percent match will fail the threshold requirement and will 
not receive further consideration for funding. Leveraging in excess of 
the 25 percent of the grant amount will receive a higher point value. 
In evaluating this factor HUD will consider the extent to which 
applicants have partnered with other entities to secure additional 
resources, which will increase the effectiveness of the proposed 
program activities. Match proposed to be used for ineligible activities 
will not be accepted. The additional resources and services must be 
firmly committed, must support the proposed grant activities and must, 
in combined amount (including in-kind contributions of personnel, space 
and/or equipment, and monetary contributions) equal at least 25 percent 
of the grant amount requested in the application. ``Firmly committed'' 
means that the amount of resources and their dedication to ROSS-funded 
activities must be explicit, in writing and signed by a person 
authorized to make the commitment. Please see the section on Threshold 
Requirements for more information.
    Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested ROSS funds to the total proposed grant budget.
    Points will be assigned based on the following scale:

Percentage of Match Points Awarded

25--5 points (with partnerships) 3 points (without partnerships);
26-50--10 points (with partnerships) 8 points (without partnerships);
51-75--15 points (with partnerships) 13 points (without partnerships);
76 or above--20 points (with partnerships) 18 points (without 
partnerships).
e. Rating Factor 5: Achieving Results and Program Evaluation (15 
Points)
    (1) An important element in any supportive service program is the 
development and reporting of performance measures and outcomes. This 
factor emphasizes HUD's determination to ensure that applicants develop 
performance and outcome measures that are focused on residents' 
achieving economic and housing self-sufficiency--reducing and 
eliminating dependency on any type of subsidized housing or welfare 
assistance. Additionally, achieving outcomes and accurate evaluation 
will assist HUD in meeting its commitment to federal requirements for 
accountability. Applicants must demonstrate how they propose to measure 
their success and outcomes as they relate to the Department's Strategic 
Plan.
    (2) HUD requires ROSS applicants to develop an effective, 
quantifiable, outcome-oriented plan for measuring performance and 
determining that goals have been met. Applicants must use the Logic 
Model form HUD-96010 for this purpose. The narrative describes how the 
measurement tools are used to collect and verify reported data and to 
modify the program if goals are not being met.

[[Page 11940]]

    (3) Applicants must establish interim benchmarks, or outputs, for 
their proposed program that lead to the ultimate achievement of 
outcomes. ``Outputs'' are the direct products of a program's 
activities. Examples of outputs are: The number of eligible families 
that participate in supportive services, the number of new services 
provided, the number of residents receiving counseling, or the number 
of households using a technology center. Outputs should produce 
outcomes for your program. ``Outcomes'' are benefits accruing to the 
residents, families and/or communities during or after participation in 
the ROSS program. Outcomes are not the development or delivery of 
services or program activities but the results of the services 
delivered or program activities--the ultimate results of the program. 
Applicants must clearly identify the outcomes to be achieved and 
measured. Examples of outcomes are: Increasing homeownership rates, 
increasing residents' financial stability (e.g., increasing assets of a 
household through savings), or increasing employment stability (e.g., 
whether persons assisted obtain or retain employment for one or two 
years after job training completion).
    (4) This rating factor requires that applicants identify program 
outputs, outcomes, and performance indicators that will allow 
applicants to measure their performance. Performance indicators should 
be objectively quantifiable and measure actual achievements against 
anticipated achievements. Applicants' narratives, work plans, and Logic 
Models should identify what applicants are going to measure, how they 
are going to measure it, and the steps they have in place to make 
adjustments to their work plan and management practices if performance 
targets begin to fall short of established benchmarks and time frames. 
Applicants' proposals must also show how they will measure the 
performance of partners and affiliates. Applicants must include the 
standards, data sources, and measurement methods they will use to 
measure performance.
    (Applicants will be evaluated based on how comprehensively they 
propose to measure their program's outcomes.)

B. Review and Selection Process

1. Review Process
    Four types of reviews will be conducted: A screening to determine 
if you are eligible to apply for funding under the ROSS Family and 
Homeownership grant program; whether your application submission is 
complete, on time and meets threshold; a review by the field office (or 
area ONAP office) to evaluate past performance; and a technical review 
to rate your application based on the five rating factors provided in 
this NOFA.
2. Selection Process for All Grant Categories and All Applicants
    Twenty-five percent (25%) of funds will be set aside for Resident 
Associations and all qualifying Resident Association applications will 
be funded first, up to 25% of the funding amount. The selection process 
is designed to achieve geographic diversity of grant awards throughout 
the country. For each grant category, HUD will first select the highest 
ranked application from each of the ten federal regions and DPONAP for 
funding. After this ``round,'' HUD will select the second highest 
ranked application in each of the ten federal regions and DPONAP for 
funding (the second round). HUD will continue this process with the 
third, fourth, and so on, highest ranked applications in each federal 
region and DPONAP until the last complete round is selected for 
funding. If available funds exist to fund some but not all eligible 
applications in the next round, HUD will make awards to those remaining 
applications in rank order (by score) regardless of region and DPONAP 
and will fully fund as many as possible with remaining funds. If 
remaining funds in one grant category are too small to make an award, 
they may be transferred to another ROSS program. If there are remaining 
funds in any ROSS program after all qualifying applications have been 
awarded, those funds may be transferred to another ROSS program.
3. Tie Scores
    In the event of a tie score between two applications which target 
the same developments, HUD will select the application that was 
received first.
4. Deficiency Period
    Applicants will have 14 calendar days in which to provide missing 
information requested from HUD. For other information on correcting 
deficient applications, please see the General Section.

VI. Award Administration Information

A. Award Notices

    HUD will make announcements of grant awards after the rating and 
ranking process is completed. Grantees will be notified by letter and 
will receive instructions on what steps they must take in order to 
access funding and begin implementing grant activities. Applicants who 
are not funded will also receive letters via U.S. postal mail.

B. Debriefings

    Applicants who are not funded may request a debriefing. Applicants 
requesting to be debriefed must send a written request to: Iredia 
Hutchinson, Director, Grants Management Center, 501 School Street, SW., 
Suite 800, Washington, DC 20024.

C. Administrative and National Policy Requirements

1. Environmental Impact
    In accordance with 24 CFR 58.34 (a)(3) or (a)(9), 58.35(b)(2), 
(b)(4) or (b)(5), 50.19(b)(3), (b)(9), (b)(12), (b)(14), or (b)(15), 
activities under this ROSS program are categorically excluded from the 
requirements of the National Environmental Policy Act of 1969 and are 
not subject to environmental review under related laws and authorities.
2. Applicable Requirements
    Unless specifically enumerated in this NOFA, all applicants, lead 
and non-lead applicants, are subject to the requirements specified in 
Section III.C. of the General Section. Grantees are subject to 
regulations and other requirements found in:
    a. 24 CFR 84 ``Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and Other 
Nonprofit Organizations'';
    b. 24 CFR 85 ``Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments'';
    c. 24 CFR 964 ``Tenant Participation and Tenant Opportunities in 
Public Housing'';
    d. OMB Circular A-87 ``Cost Principles for State, Local, and Indian 
Tribal Governments'';
    e. OMB Circular A-110 ``Uniform Administrative Requirements for 
Grants and Other Agreements with Institutions of Higher Education, 
Hospitals and Other Non-Profit Organizations'';
    f. OMB Circular A-122 ``Cost Principles for Non-Profit 
Organizations''; and
    g. OMB Circular A-133 ``Audits of States, Local Governments, and 
Non-Profit Organizations''.
3. Economic Opportunities for Low- and Very Low-Income Persons (Section 
3)
    Applicants and grantees must also comply with Section 3 of the 
Housing and Urban Development Act of 1968, 12 U.S.C. 1701u and ensure 
that training, employment, and other economic opportunities shall, to 
the greatest extent feasible, be directed toward low and very low-
income persons,

[[Page 11941]]

particularly those who are recipients of government assistance for 
housing and to business concerns which provide economic opportunities 
to low and very low-income persons.
4. Fair Housing and Civil Rights Laws
    Applicants and their subrecipients must comply with all Fair 
Housing and Civil Rights laws, statutes, regulations, and Executive 
Orders as enumerated in 24 CFR 5.105(a), as applicable. Please see the 
General Section for more information.

D. Reporting

1. Semi-Annual Performance Reports
    Grantees must submit semi-annual performance reports to the field 
office or area ONAP. These progress reports must include financial 
reports (SF-269A), and a Logic Model (HUD-96010) showing achievements 
to date against outputs and outcomes proposed in the application and 
approved by HUD. A narrative describing milestones, work plan progress, 
and problems encountered and methods used to address the problems to 
support the data in the logic model is optional. HUD anticipates that 
some of the reporting of financial status and grant performance will be 
through electronic or Internet-based submissions. Grantees must use 
quantifiable data to measure performance against goals and objectives 
outlined in their work plan. Applicants that receive awards from HUD 
should be prepared to report on additional measures that HUD may 
designate at time of award. Performance reports are due to the field 
office on July 30 and January 31 of each year. If reports are not 
received by the due date, grant funds will be suspended until reports 
are received. For FY2006, HUD is considering a new concept for the 
Logic Model. The new concept is a Return on Investment (ROI) statement. 
HUD will be publishing a separate notice on the ROI concept.
2. Final Report
    All grantees must submit a final report to their local field office 
or area ONAP that will include a financial report (SF-269A), a final 
Logic Model, and a narrative evaluating overall results achieved 
against their work plan. Grantees must use quantifiable data to measure 
performance against goals and objectives outlined in their work plan. 
The financial report must contain a summary of all expenditures made 
from the beginning of the grant agreement to the end of the grant 
agreement and must include any unexpended balances. The final Logic 
Model and financial report are due to the field office 90 days after 
the termination of the grant agreement.
3. Final Audit
    Grantees that expend $500,000 in federal funds in a given program 
or fiscal year are required to obtain a complete final close-out 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 84 or 24 CFR 85 as stated in OMB Circulars A-87, 
A-110, and A-122, as applicable.
4. Racial and Ethnic Data
    HUD requires that funded recipients collect racial and ethnic 
beneficiary data. HUD has adopted the Office of Management and Budget's 
Standards for the Collection of Racial and Ethnic Data. In view of 
these requirements, applicants should use form HUD-27061, Racial and 
Ethnic Data Reporting Form.

VII. Agency Contact(s)

    For questions and technical assistance, you may call the Public and 
Indian Housing Information and Resource Center at 800-955-2232. For 
persons with hearing or speech impairments, please call the toll-free 
Federal Relay Service at 800-877-8339. In the case of tribes/TDHEs, 
please contact HQ ONAP at 800-561-5913 or (303) 675-1600 (this is not a 
toll-free number).

VIII. Other Information

    A. Code of Conduct. Please see the General Section for more 
information.
    B. Transfer of Funds. If transfer of funds from any of the ROSS 
programs does become necessary, HUD will consider the amount of un-
funded qualified applications in deciding to which program the extra 
funds will be transferred.
    C. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2577-0229. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number. Public reporting burden for the collection of 
information is estimated to average 49.5 hours per respondent for the 
application. This includes the time for collecting, reviewing, and 
reporting the data for the application. 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.

BILLING CODE 4210-01-P

[[Page 11942]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.023


[[Page 11943]]



Public Housing Neighborhood Networks Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title: Public Housing Neighborhood Networks 
program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number for this 
NOFA is: FR-5030-N-33. The OMB approval number for this program is 
2577-0229.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.875.
    F. Dates: The application deadline date is June 23, 2006.
    G. Optional, Additional Overview Content Information:
    1. Purpose of Program: The purpose of the Public Housing 
Neighborhood Networks (NN) program is to provide grants to public 
housing authorities (PHAs) to: (a) Update and expand existing NN/
community technology centers; or (b) establish new NN centers. These 
centers offer comprehensive services designed to help public housing 
residents achieve long-term economic self-sufficiency. This program is 
authorized under Sec.  9(d)(1)(E), Sec.  9(e)(1)(K), Sec.  9(h)(8), and 
Sec.  24(d)(1)(G).
    2. Funding Available: The Department plans to award approximately 
$7,500,000 under the Neighborhood Networks program in Fiscal Year 2006.
    3. Award Amounts: Awards will range from $100,000 to $550,000.
    4. Eligible Applicants: Eligible applicants are PHAs only.
    Tribes and tribally designated housing entities (TDHEs), nonprofit 
organizations, and resident associations are not eligible to apply for 
funding under the Public Housing Neighborhood Networks program.
    5. Cost Sharing/Match Requirement: PHAs are required to match at 
least 25 percent of the requested grant amount.
    6. Grant term. The grant term is three years from the execution 
date of the grant agreement.

----------------------------------------------------------------------------------------------------------------
            Grant program                   Total funding         Eligible applicants      Maximum grant amount
----------------------------------------------------------------------------------------------------------------
Neighborhood Networks................  $7.5 Million...........  PHAs--existing centers.  $100,000 for PHAs with
                                                                                          1-780 units; $150,000
                                                                                          for PHAs with 781-
                                                                                          2,500 units; $200,000
                                                                                          for PHAs with 2,501-
                                                                                          7,300 units; $250,000
                                                                                          for PHAs with 7,301
                                                                                          units or more.
                                                                PHAs--new centers......  $250,000 for PHAs with
                                                                                          1-780 units; $350,000
                                                                                          for PHAs with 781-
                                                                                          2,500 units; $450,000
                                                                                          for PHAs with 2,501-
                                                                                          7,300 units; $550,000
                                                                                          for PHAs with 7,301
                                                                                          units or more.
----------------------------------------------------------------------------------------------------------------

Full Text of Announcement

I. Funding Opportunity Description

A. Definition of Terms

    1. Contract Administrator is a grant administrator or financial 
management agent that oversees the implementation of the grant and/or 
the financial aspects of the grant.
    2. An existing computer center is: (1) A computer lab, or 
technology center owned and operated by a PHA which serves residents of 
public housing and has not received prior NN funding and therefore is 
not officially designated a HUD Public and Indian Housing (PIH) NN 
center; (2) a computer lab designated as a HUD PIH NN center, which 
seeks to expand its services; or (3) a computer lab which needs funding 
under this program to become operational and serve residents of public 
housing.
    3. A new NN center is one that will be established (i.e., there is 
no infrastructure, space, or equipment currently in use for this 
purpose) with NN grant funds. Note: An applicant previously funded 
under Neighborhood Networks may apply under the ``New Computer Center'' 
category only if it will develop a new center in a development which 
cannot be served by the applicant's existing NN center(s).
    4. Past Performance is a threshold requirement. Using Rating Factor 
1, HUD's field offices will evaluate applicants for past performance to 
determine whether an applicant has the capacity to manage the grant it 
is applying for. Field offices will evaluate the past performance of 
contract administrators for applicants that required one.
    5. Person with disabilities means a person who:
    a. Has a condition defined as a disability in section 223 of the 
Social Security Act;
    b. Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance Bill of Rights Act; or
    c. Is determined to have a physical, mental, or emotional 
impairment which:
    (1) Is expected to be of long-continued and indefinite duration;
    (2) Substantially impedes his or her ability to live independently; 
and
    (3) Is of such a nature that such ability could be improved by more 
suitable housing conditions.
    The term ``person with disabilities'' includes persons who have 
acquired immunodeficiency syndrome (HIV/AIDS) or any conditions arising 
from the etiologic agent for AIDS. In addition, no individual shall be 
considered a person with disabilities solely based on drug or alcohol 
dependence.
    The definition provided above for persons with disabilities is the 
proper definition for determining program qualifications. However, the 
definition of a person with disabilities contained in section 504 of 
the Rehabilitation Act of 1973 and its implementing regulations must be 
used for purposes of providing reasonable accommodations and for 
program accessibility for persons with disabilities.
    6. Project Coordinator is responsible for coordinating the 
grantee's approved activities to ensure that grant goals and objectives 
are met. A qualified Project Coordinator is someone with at least two 
years of experience working on supportive services designed 
specifically for underserved populations. The Project Coordinator and 
grantee are both responsible for ensuring that all federal requirements 
are followed.
    7. Secretary means the Secretary of Housing and Urban Development.
    8. Senior person means a person who is at least 62 years of age.

B. Program Description

    1. The Public Housing Neighborhood Networks program provides grants 
to PHAs to (1) update and expand existing NN/community technology 
centers; or (2) establish new NN centers.
    2. NN centers must be located within a public housing development, 
on PHA

[[Page 11944]]

land, or within reasonable walking distance to the PHA development(s).
    3. HUD is looking for applications that implement comprehensive 
programs within the three-year grant term, which will result in 
improved economic self-sufficiency for public housing residents. HUD is 
looking for proposals that involve partnerships with organizations that 
will supplement and enhance the services offered to residents.
    4. NN centers provide computer and Internet access to public 
housing residents and offer a full range of computer and job training 
services. Applicants should submit proposals that will incorporate 
computer and Internet use to: Provide job training for youths, adults 
and seniors; expand educational opportunities for residents; promote 
economic self-sufficiency and help residents transition from welfare to 
work; assist children with homework; provide guidance to high school 
students (or other interested residents) for post-secondary education 
(college or trade schools); and provide other services deemed necessary 
from resident input.
    5. All applicants must complete a business plan (see sample HUD-
52766 provided in the Appendix) covering the three-year grant term. The 
applicant's business plan and narrative must indicate how the center(s) 
will become self-sustaining after the grant term expires. Proposed 
grant activities should build on the foundation created by previous NN 
grants such as Resident Opportunities and Self-Sufficiency (ROSS) 
grants, or other federal, state and local self-sufficiency efforts.

C. Eligible Activities

    1. Hiring a Qualified Project Coordinator to Administer the Grant 
Program. A qualified Project Coordinator must have project management 
and information technology experience. The Project Coordinator should 
be hired for the entire term of your grant. The Project Coordinator is 
responsible for ensuring that the center achieves its proposed goals 
and objectives. In addition, the Project Coordinator is responsible for 
the following activities:
    a. Marketing the program to residents;
    b. Assessing residents' needs, interests, skills, and job-
readiness;
    c. Assessing residents' needs for supportive services, e.g., 
childcare, transportation;
    d. Designing and coordinating grant activities based on residents' 
needs and interests; and
    e. Monitoring the progress of program participants and evaluating 
the overall success of the program. For more information on how to 
measure performance, please see Rating Factor 5 in the ``Application 
Review Information'' section of this NOFA.
    2. Literacy training and GED preparation;
    3. Computer training, from basic to advanced;
    4. College preparatory courses and information;
    5. Job Training and Activities Leading to Self-Sufficiency. Job 
training for very low and low-income persons is a requirement under 
Section 3 of the Housing and Urban Development Act of 1968. Some 
examples of the job training skills encouraged are: oral and written 
communication skills; work ethic; interpersonal and teamwork skills; 
resume writing; interviewing techniques, creating job training and 
placement programs with local employers and employment agencies; tax 
preparation and submission assistance, including Earned Income Tax 
credits; other activities moving toward housing and economic self-
sufficiency that utilize the computer center, such as financial 
literacy, credit repair, and homeownership training; and post-
employment follow-up to assist residents who are new to the workplace.
    6. Physical improvements. Physical improvements must relate to 
providing space for a Neighborhood Networks center. Renovation, 
conversion, wiring, and repair costs may be essential elements of 
physical improvements. In addition, architectural, engineering, and 
related professional services required to prepare plans or drawings, 
write-ups, specifications or inspections may also be part of the cost 
of implementing physical improvements.
    a. Creating an accessible space for persons with disabilities is an 
eligible use of funds. Refer to Office of Management and Budget (OMB) 
Circular A-87, ``Cost Principles for State, Local and Indian Tribal 
Governments.''
    b. The renovation, conversion, or joining of vacant units in a PHA 
development to create space for the equipment and activities of a NN 
center (computers, printers, and office space) are eligible activities 
for physical improvement.
    c. The renovation or conversion of existing common areas in a PHA 
development to accommodate a NN center is eligible.
    d. If renovation, conversion, or repair is done off-site, the PHA 
must provide documentation with its application that it has control of 
the proposed property and will continue to have control for at least 
five years. Control can be demonstrated through a lease agreement, 
ownership documentation, or other appropriate documentation.
    7. Maintenance and insurance costs. Includes installing and 
maintaining the hardware and software as well as insurance coverage for 
the space and equipment.
    8. Purchase of computers, printers, software, other peripheral 
equipment, and furniture for the NN Center are eligible expenses. 
Section 3 of the Housing and Urban Development Act requires funding 
recipients to provide business opportunities be directed to very low 
and low income persons. In addition, costs of computer hardware and 
software for the needs of persons with disabilities are eligible costs 
for this funding category;
    9. Distance Learning Equipment. Distance learning equipment 
(including the costs for video casting and purchase/lease/rental of 
distance learning equipment) is an eligible use of funds. The proposal 
must indicate that the center will be working in a virtual setting with 
a college, university or other educational organization. Distance 
learning equipment can also be used to link one or more centers so that 
residents can benefit from courses being offered at only one site.
    10. Security and related costs. Includes space and minor refitting, 
locks, and other equipment for safeguarding the center and other 
longer-term security measures, as needed.
    11. Hiring Residents. Grantees may hire residents to help with the 
implementation of this grant program.
    12. Administrative Costs. See Section IV.E for information on this 
topic.
    13. Staff Training and Long Distance Travel. Funds may be used for 
applicant staff or subcontractors' training in program-relevant areas. 
This activity should not exceed $5,000. See Section IV.E for 
information on this topic.

D. Regulations Governing the Neighborhood Networks Grant

    The Neighborhood Networks program is governed by regulations in 24 
CFR parts 905 and 968.

II. Award Information

A. Total Funding

    The Department expects to award approximately a total of $7,500,000 
under the Neighborhood Networks program in Fiscal Year 2006. Awards 
will be made as follows:
    1. Forty percent of available funding for Neighborhood Networks 
will be used for updating and expanding existing

[[Page 11945]]

computer technology centers. The other 60 percent will provide grants 
to establish and operate new Neighborhood Networks centers.
    2. PHAs must use the number of occupied public housing units as of 
September 30, 2005 per their budget. This is required so the PHA can 
determine the maximum grant amount they are eligible for in accordance 
with the categories listed below. PHAs should clearly indicate on the 
Fact Sheet (HUD-52751) the number of units under management.
    a. Funding Levels For Existing Centers:

------------------------------------------------------------------------
                                                              Maximum
              Number of conventional units                    funding
------------------------------------------------------------------------
1-780 units.............................................        $100,000
781-2,500 units.........................................         150,000
2,501-7,300 units.......................................         200,000
7,301 or more units.....................................         250,000
------------------------------------------------------------------------

    b. Funding Levels For New Centers:

------------------------------------------------------------------------
                                                              Maximum
              Number of conventional units                    funding
------------------------------------------------------------------------
1-780 units.............................................        $250,000
781-2,500 units.........................................         350,000
2,501-7,300 units.......................................         450,000
7,301 or more units.....................................         550,000
------------------------------------------------------------------------

B. Grant Period

    Three years. The grant period shall begin the day the grant 
agreement and the form HUD-1044, ``Assistance Award/Amendment'' are 
signed by the grantee and HUD.

C. Grant Extensions

    Requests to extend the grant term must be submitted in writing by 
the grantee to the local HUD field office. Such requests must be done 
prior to grant termination and with at least 30 days notice to give the 
field office a reasonable amount of time to fully evaluate the request. 
Requests must explain why the extension is necessary, what work remains 
to be completed, and what work and progress was accomplished to date. 
Extensions may be granted one time only once by the field office or 
area ONAP for a period not to exceed six months and may be granted for 
a further six months by the HUD Headquarters Program Office at the 
request of the Field Office or area ONAP.

D. Type of Award

    Grant agreement.

E. Subcontracting

    Subcontracting is permitted. Grantees must follow the HUD federal 
procurement regulations found at 24 CFR 85.36.

III. Eligibility Information

A. Eligible Applicants

    Public Housing Authorities are eligible to apply for this funding 
category. Tribes/TDHEs, nonprofit organizations, and resident 
associations are not eligible to apply for this funding category.

B. Cost Sharing or Matching

    All applicants are required to obtain a 25 percent cash or in-kind 
match. The match is a threshold requirement. Applicants who do not 
demonstrate the minimum 25 percent match will fail the threshold 
requirement and will not receive further consideration for funding. 
Match proposed to be used for ineligible activities will not be 
accepted. Please see the section below on threshold requirements for 
more information on what is required for the match.

C. Other

1. Threshold Requirements
    Applicants must respond to each threshold requirement clearly and 
thoroughly by following the instructions below. If your application 
fails one threshold requirement (regardless of the type of threshold) 
it will be considered a failed application. All applicants will be 
subject to all thresholds listed in the General Section.
    a. Match. All applicants are required to commit a 25 percent match 
in cash or in-kind donations that are defined in this paragraph. Joint 
applicants must together have at least a 25 percent match. Applicants 
who do not demonstrate the minimum 25 percent match will fail this 
threshold requirement and will not receive further consideration for 
funding. If you are also applying for funding under the ROSS grant 
program, you must use different sources of match donations for each 
grant application and you must indicate which ROSS grant(s) you are 
applying for by attaching a narrative to your application. This 
narrative must state the sources and amounts of each of your match 
contributions for this application as well as any other HUD grant 
program to which you are applying.
    Match donations must be firmly committed. Firmly committed means 
that the amount of match resources and their dedication to Neighborhood 
Networks-funded activities must be explicit, in writing and signed by a 
person authorized to make the commitment. Letters of commitment and 
memoranda of understanding (MOU) must be on organization letterhead, 
and signed by a person authorized to make the commitment. The letters 
of commitment/MOUs must indicate the total dollar value of the 
commitment, be dated between the publication date of this NOFA and the 
application deadline published in this NOFA or an amended deadline, and 
indicate how the commitment will relate to the proposed program. If the 
commitment is in-kind, the letters should explain exactly what services 
or material will be provided. The commitment must be available at time 
of award. Applicants proposing to use their own, non-HUD grant funds to 
meet the match requirement, must also include a letter of commitment 
indicating the type of match (cash or in-kind) and how the match will 
be used. Grant awards shall be contingent upon letters of commitment 
being submitted with your application. Match proposed to be used for 
ineligible activities will not be accepted. Please see the General 
Section for instructions for submitting the required letters with your 
electronic application.
    (1) The value of volunteer time and services shall be computed 
using the professional rate for the local area or the national minimum 
wage rate of $5.15 per hour (Note: applicants may not count their staff 
time towards the match.) If grantees propose to use volunteers for 
development or operations work that would otherwise be subject to 
payment of Davis-Bacon or HUD-determined prevailing wage rates 
(including construction, rehabilitation or maintenance) their services 
must be computed using the appropriate methodology. Additional 
information on these wage rates can be found at http://www.hud.gov/, by 
contacting HUD Field Office Labor Relations staff, or from the PHA. 
Such volunteers must also meet the requirements of section 12(b) of the 
United States Housing Act of 1937 and 24 CFR part 70;
    (2) In order for HUD to determine the value of any donated 
material, equipment, staff time, building, or lease, your application 
must provide a letter from the organization making the donation. The 
letter must state the value of the contribution.
    (3) Other resources/services that can be committed include: In-kind 
services provided to the applicant; funds from federal sources that are 
allowed by statute, for example Community Development Block Grant 
(CDBG) funds; funds from any state or local government sources; and 
funds from private contributions. Applicants may also partner with 
other program funding

[[Page 11946]]

recipients to coordinate the use of resources in the target area.
    b. Past Performance. HUD's field offices will evaluate data 
provided by applicants as well as their past performance to determine 
whether applicants have the capacity to manage the grants they are 
applying for. Field offices will evaluate the contract administrators' 
past performance for applicants required to have a contract 
administrator. Using Rating Factor 1, the field office will evaluate 
applicants' past performance. Applicants should carefully review Rating 
Factor 1 to ensure their applications address all of the criteria 
requested. If applicants fail to address what is requested in Rating 
Factor 1, their application will not receive further consideration.
    c. Contract Administrator Partnership Agreement. PHAs that are 
troubled at time of application are required to submit a signed 
Contract Administrator Partnership Agreement. The agreement must be for 
the entire grant term. Grant awards must have a signed Contract 
Administrator Partnership Agreement included in the application. 
Applicants required to have a Contract Administrator Partnership 
Agreement that fail to submit one will fail this threshold requirement 
and will not receive further consideration for funding.
    Troubled PHAs are not eligible to be contract administrators. Grant 
writers who assist in the preparation of their Neighborhood Networks 
applications are also ineligible to be contract administrators. Please 
see the General Section Definitions Section, and Program Requirements 
Section for instructions for more information.
    d. Minimum Score for All Fundable Applications. Applications that 
pass all threshold requirements and go through the ranking and rating 
process, must receive a minimum score of 75 in order to be considered 
for funding.
    e. The Dun and Bradstreet Universal Numbering System (DUNS) Number 
Requirement. Refer to the General Section for information regarding the 
DUNS requirement. You will need to have a DUNS number to receive an 
award from HUD.
    f. Off-site Physical Improvements. Physical improvements that 
relate to providing space for a Neighborhood Networks center are 
eligible activities, including for off-site centers. If renovation, 
conversion or repair is done off-site, the PHA must describe this 
circumstance in their narrative and provide documentation with its 
application that it has control of the proposed property and will 
continue to have control for at least five years. Control can be 
demonstrated through a lease agreement, ownership documentation or 
other appropriate documentation.
2. Program Requirements
    a. Program Evaluations. A portion of grant funds should be reserved 
to ensure that evaluations can be completed for all participants who 
received training through this program.
    b. Physical Improvements. All renovations must meet appropriate 
accessibility requirements, including the requirements of Section 504 
of the Rehabilitation Act of 1973 at 24 CFR part 8, Architectural 
Barriers Act at 24 CFR part 40, and the Americans with Disabilities 
Act. Design, construction, or alteration of buildings in conformance 
with the Uniform Federal Accessibility Standards (UFAS) shall be deemed 
to comply with the requirements of 24 CFR 8.21, 8.22, 8.23, and 8.25 
with respect to those buildings.
    c. Contract Administrator. The contract administrator must assure 
that the financial management system and procurement procedures that 
will be implemented during the grant term comply with 24 CFR part 85. 
CAs are expressly forbidden from accessing HUD's Line of Credit Control 
System (LOCCS) and submitting vouchers on behalf of grantees. Contract 
administrators must assist PHAs in meeting HUD's reporting 
requirements, see Section VI.C. ``Reporting'' for more information. 
Contract administrators may be: Local housing agencies; community-based 
organizations such as community development corporations (CDCs), local 
faith-based institutions; nonprofit organizations; state/regional 
associations and organizations. Troubled PHAs are not eligible to be 
contract administrators. Grant writers who assist applicants in 
preparing their Neighborhood Networks applications are also ineligible 
to be contract administrators. Organizations that the applicant 
proposes to use as the contract administrator must not violate the 
conflict of interest standards as defined in 24 CFR part 84 and 24 CFR 
part 85.
    c. Other Requirements Applicable to All Programs. All applicants, 
lead and non-lead, should refer to ``Other Requirements and Procedures 
Applicable to All Programs'' of the General Section for other 
requirements to which they may be subject.
3. Number of Applications Permitted
    a. General. Applicants may submit only one application for a NN 
grant.
    b. Joint applications. Two or more applicants may join together to 
submit a joint application for proposed grant activities. Joint 
applications must designate a lead applicant. Only the lead applicant 
is subject to the threshold requirements outlined in this NOFA. 
However, both lead and non-lead applicants are subject to threshold 
requirements outlined in the General Section. The lead applicant must 
be registered with Grants.gov and submit the application using the 
Grants.gov portal. Applicants who submit joint applications cannot 
submit separate applications as sole applicants under this NOFA. Note: 
The lead applicant will determine the maximum funding amount the 
applicants are eligible to receive.
4. Eligible Participants
    All program participants must be residents of public housing or 
residents of other housing assisted with funding made available under 
the 2006 Appropriations Act (e.g., residents receiving tenant-based or 
project-based voucher assistance, as well as elderly and disabled 
residents).

IV. Application and Submission Information

A. Address To Request an Application Package

    Copies of this published NOFAs and application forms will be posted 
on www.Grants.gov/Apply. If you have difficulty accessing the 
information you may call the Grants.gov help desk toll free at (800) 
515-GRANTS or you may send an e-mail message to Grants.gov">Support@Grants.gov.

B. Content and Form of Application Submission

1. Application Preparation
    Before preparing an application, applicants should carefully review 
the program description, program requirements, ineligible activities, 
threshold requirements contained in this NOFA, and the General Section. 
Applicants should also review each rating factor found in the 
``Application Review Information'' section before writing a narrative 
response. Applicants' narratives must be descriptive in order to ensure 
that every requested item is addressed. Applicants should be sure to 
include all requested information, according to the instructions found 
in this NOFA and the General Section. This will help ensure a fair and 
accurate review of your application.
2. Content of Application
    Applicants must write narrative responses to each of the rating 
factors described in the section below. Their

[[Page 11947]]

responses must demonstrate that they have the necessary capacity to 
successfully manage this grant program. Applicants should ensure that 
their narratives are written clearly and concisely so that HUD 
reviewers, who may not be familiar with the Neighborhood Networks 
program, fully understand the proposal. HUD encourages applicants to 
carefully review each rating factor, the regulations governing the 
Neighborhood Networks program, at 24 CFR parts 905 and 968, and the 
General Section prior to responding to the rating factors.
3. Format of Application
    (1) Applications may not exceed 35 narrative pages. Narrative pages 
must be submitted as separate electronic files, formatted as double-
spaced, single-sided documents. Each file should have the pages 
numbered consecutively. Use Times New Roman font style and font size 
12. Supporting documentation, required forms, and certifications will 
not be counted toward the 35 narrative page limit. Applicants should 
make every effort to submit only what is necessary in terms of 
supporting documentation. Please see the General Section for 
instructions on how to submit supporting documentation with your 
electronic application.
    (2) The following checklist has been provided to guarantee that the 
applicants submit all of the required forms and information. Electronic 
application filers should make sure the file names for their narratives 
reflect the labels in the checklist. Each narrative must be in a 
separate file with all the files zipped together and sent as an 
attachment in the application submittal. (Note: Only applicants who 
receive a waiver to submit paper applications, must submit their 
applications in a three-ring binder, with TABS dividing the sections as 
indicated below) When submitting electronically, you do not need to 
submit these in TABS. Copies of the forms may be downloaded with the 
application package and instructions from www.Grants.gov/Apply of from 
the following Web site: http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    TAB 1: Required Forms
    1. Acknowledgment of Application Recedsipt (HUD-2993), for paper 
application submissions only;
    2. Application for Federal Assistance (SF-424);
    3. SF-424 Supplement--Survey on Ensuring Equal Opportunity for 
Applicants;
    4. Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD-27300);
    5. ROSS Fact Sheet (HUD-52751);
    6. Grant Application Detailed Budget (HUD-424-CB);
    7. Grant Application Detailed Budget Worksheet (HUD-424-CBW);
    8. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    9. Certification of Consistency with RC/EZ/EC-II Strategic Plan 
(HUD-2990) if applicable;
    10. Certification of Consistency with the Consolidated Plan (HUD-
2991) if applicable;
    11. Disclosure of Lobbying Activities (HUD-SF-LLL)--if applicable;
    12. Disclosure of Lobbying Activities Continuation Sheet (HUD-SF-
LLL-A)--if applicable; and
    13. You Are Our Client Grant Applicant Survey (HUD-2994-A) 
(Optional)
    14. Facsimile Transmittal (must be used as the cover age to fax 
third party letters, documents, etc., that cannot be attached to the 
electronic application) (HUD-96011) HUD will not accept entire 
applications submitted by facsimile or read a fax that was not 
transmitted with the HUD 96011 as the cover page.
    TAB 2: Threshold Requirements
    1. Letters from Partners attesting to match;
    2. Letter from Applicant's organization attesting to match (if 
applicant is contributing to match); and
    3. Contract Administrator Partnership Agreement (required for 
troubled PHAs) (HUD-52755).
    4. If applicable, documentation of site control (for 5 years) for 
off-site physical improvements.
    TAB 3: Rating Factor 1
    1. Narrative.
    2. Chart A: Program Staffing (HUD-52756).
    3. Chart B: Applicant/Administrator Track Record (HUD-52757).
    4. Resumes/Position Descriptions.
    TAB 4: Narrative for Rating Factor 2
    TAB 5: Rating Factor 3
    1. Narrative.
    2. Business Plan (see sample) (HUD-52766).
    TAB 6: Narrative for Rating Factor 4
    TAB 7: Narrative for Rating Factor 5 and NN Program Forms
    1. Narrative.
    2. Logic Model (HUD-96010).

C. Submission Dates and Times

1. Deadline Dates
    Electronic applications must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on June 23, 2006. 
For applicants receiving a waiver to the electronic filing requirement, 
the approval of the waiver request will provide submission 
instructions. Paper applications must be received no later than the 
deadline date.
2. Proof of Timely Submission
    Please see the General Section for this information. Applicants 
that fail to meet the deadline for application receipt will not receive 
funding consideration.

D. Intergovernmental Review

    Not applicable.

E. Funding Restrictions

1. Reimbursement for Grant Application Costs
    Applicants who receive a NN award are prohibited from using these 
grant funds to reimburse any costs incurred while preparing their 
applications.
2. Covered Salaries
    a. Project Coordinator. The Neighborhood Networks program will fund 
up to $65,000 in combined annual salary and fringe benefits for up to a 
full-time Project Coordinator. Applicants may propose a part-time 
coordinator at lesser salary. The Project Coordinator's salary and 
fringe benefits may not exceed 30 percent of the total grant amount. 
For audit purposes, applicants must have documentation on file 
demonstrating that the salary paid to the Project Coordinator is 
comparable to similar professions in their local area.
    b. Hiring Residents. Grantees may hire residents to help with the 
implementation of this grant program. No more than five percent of 
grant funds can be used for this purpose.
    c. NN funds may only be used for the types of salaries described in 
this section according to the restrictions described herein. NN funds 
may not be used to pay for salaries of any other kind. NN funds may 
only be used to pay for salaries of staff that provide direct services 
to residents. Direct services staff, for purposes of this NOFA, are 
defined as applicant personnel or subcontractors who, as their primary 
responsibility, provide services directly to residents that participate 
in the activities described in this application, e.g., computer skills 
training.
    d. Neighborhood Networks grant funds cannot be used to hire or pay 
the services of a Contract Administrator.
3. Funding Requests in Excess of Maximum Grant Amount
    Applicants that request funding in excess of the maximum grant 
amount which they are eligible to receive will be given consideration 
only for the maximum grant for which they are eligible. If awarded, the 
grantee will work with the Field Office to re-

[[Page 11948]]

apportion the grant funds for eligible activities.
4. Administrative Costs
    Administrative costs may include, but are not limited to, purchase 
of office furniture, equipment, supplies, local travel, and utilities. 
To the maximum extent practicable, when leasing space or purchasing 
equipment or supplies, business opportunities should be provided to 
businesses under Section 3 of the Housing and Urban Development Act of 
1968. Administrative costs may not be used to pay for salaries. 
Administrative costs must not exceed 10 percent of the total grant 
amount requested from HUD. Administrative costs must adhere to OMB 
Circular A-87. Please use HUD-424-CBW to itemize your administrative 
costs. See Section IV.E for information on this topic.
5. Long-Distance Travel
    Grantees may not use more than $5,000 for applicant staff/
subcontractor long distance travel activities.
6. Ineligible Activities/Costs
    Grant funds may not be used for ineligible activities:
    a. Payment of wages and/or salaries to participants for receiving 
supportive services and/or training programs;
    b. Purchase, lease, or rental of land;
    c. Purchase, lease, or rental of vehicles;
    d. vehicle maintenance and/or insurance;
    e. Entertainment costs;
    f. Purchasing food;
    g. Salaries and fringe benefits for staff that are not direct 
services staff. Direct services staff, for purposes of this NOFA, are 
defined as applicant personnel or subcontractors who, as their primary 
responsibility, provide services directly to residents that participate 
in the activities descried in this application, e.g. computer skills 
training;
    h. Stipends;
    i. Scholarships for degree programs;
    j. Cost of application preparation;
    k. Costs which exceed limits identified in the NOFA for the 
following: Project Coordinator, resident salaries, physical 
improvements (see below), long distance travel and administrative 
expenses; and
    l. Any other costs not eligible under section 9(d)(1)(E) of the 
U.S. Housing Act of 1937.
    m. NN funds cannot be used to hire or pay for the services of a 
Contract Administrator.
7. Physical Improvements
    For new centers, expenses for physical improvements may not exceed 
20 percent of the total grant amount requested from HUD. For existing 
centers, expenses for physical improvements may not exceed 10 percent 
of the total grant amount.

F. Other Submission Requirements

    1. All applicants are required to submit their applications 
electronically via Grants.gov, unless they request and are approved by 
HUD for a waiver of that requirement. Please refer to the General 
Section for information on how to submit your application and all 
attachments electronically via Grants.gov. See the General Section for 
instructions for requesting a waiver of the electronic application 
submission requirements.
2. Proof of Timely Submission
    Please see the General Section for this information. Applicants 
that fail to meet the deadline for application receipt will not receive 
funding consideration.
3. For Waiver Recipients Only
    Applicants who have received waivers to submit paper applications 
(see the General Section for more information) must submit their 
applications to: HUD Grants Management Center, Mail Stop: ROSS Family 
and Homeownership, 501 School Street, SW., 8th floor, Washington, DC 
20024. Applications must be received by the deadline date.
4. Number of Copies
    Only applicants receiving a waiver to the electronic submission 
requirement may submit a paper copy application. Paper applications 
must be submitted in triplicate (one original and two identical 
copies). For all applicants with a waiver, the original and one 
identical copy must be sent to the Grants Management Center and an 
identical copy must be sent to your local Field Office in accordance 
with the submission and timely receipt requirements described in the 
General Section. All paper applications must be received by the 
deadline date.

V. Application Review Information

A. Criteria

1. Factors for Award Used To Evaluate and Rate Applications to the 
Neighborhood Networks Program
    The factors for rating and ranking applicants and maximum points 
for each factor are provided below. The maximum number of points 
available for this program is 102. This includes two RC/EZ/EC bonus 
points. The General Section contains a certification that must be 
completed in order for the applicant to be considered for RC/EZ/EC-II 
bonus points. A listing of federally designated RC/EZ/EC-II is 
available on HUD's Web site at: www.hud.gov/fundsdsavailable. The 
agency certifying to RC/EZ/EC-II status must be included in the listing 
on HUD's Web site. Please see the General Section for more details. 
Note: Applicants should carefully review each rating factor before 
writing a response. Applicants' narratives must be descriptive and 
detailed in order to ensure every requested item is addressed. 
Applicants should make sure their narratives thoroughly address the 
Rating Factors below and include all requested information, according 
to the instructions found in this NOFA. This will help ensure a fair 
and accurate application review.
a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (35 Points)
    This factor addresses whether the applicant has the organizational 
capacity and resources necessary to successfully implement the proposed 
activities within the grant period. In rating this factor, HUD will 
consider whether the proposal demonstrates that the applicant will have 
qualified and experienced staff. HUD will also bear in mind whether or 
not the proposed staff will be dedicated to administering the program.
    (1) Proposed Program Staffing (12 Points).
    (a) Staff Experience (4 Points). HUD is requesting details about 
the knowledge and experience of the proposed Project Coordinator, 
staff, and partners in planning and managing programs. Experience will 
be judged in terms of recent, relevant and successful experience of 
proposed staff to undertake program activities. In rating this factor, 
HUD will consider experience within the last 5 years to be recent; 
experience pertaining to the specific activities being proposed to be 
relevant; and experience producing specific accomplishments to be 
successful. Applicants will receive a greater amount of points if the 
proposed staff has recent and applicable experience. HUD is looking for 
staff to possess experience working with and successfully implementing 
similar projects. If proposed staff has experience in providing 
community technology services and in delivering social service programs 
to underserved populations, applicants will receive a maximum score of 
four points. If

[[Page 11949]]

proposed staff has experience in only one area, applicants will receive 
two points. If proposed staff has experience in neither area, 
applicants will receive a score of 0 for this subfactor.
    The following information should be included in the application in 
order to provide HUD an understanding of the proposed staff's 
experience and capacity:
    (i) The number of staff years (one staff year = 2080 hours) to be 
allocated to the program by each employee as well as each of their 
roles in the program;
    (ii) The staff's relevant educational background and/or work 
experience;
    (iii) Relevant and successful experience running programs whose 
activities include social services and computer programs that are 
similar to the eligible program activities described in this NOFA;
    (b) Hiring Residents (3 points). Three points will be awarded if 
applicants commit to hiring one to three residents. Small PHAs should 
hire one person, medium PHAs should hire one to two people, and large 
PHAs should hire three people in order to get the maximum score. In 
order to receive points for this subfactor, applicants must explain in 
their narrative that they will hire residents and indicate the number 
of residents to be hired, and work they will be assigned.
    (c) Organizational Capacity (5 Points). Applicants will be 
evaluated based on whether they have, and/or whether their partners 
have sufficient qualified personnel to deliver the proposed activities 
in a timely and effective fashion. In order to enhance or supplement 
capacity, applicants should provide evidence of partnerships with 
nonprofit organizations or other organizations that have experience 
providing community technology services to typically underserved 
populations. Applicants' narrative must describe their ability to 
immediately begin the proposed work program. Applicants may fax (see 
the General Section for instructions) resumes or position descriptions 
(where staff is not yet hired) for all key personnel. Please see the 
General Section for instructions on how to submit the required 
information with your electronic application. (Resumes/position 
descriptions do not count toward the 35-page limit.)
    (2) Past Performance of Applicant/ Contract Administrator (6 
Points). Applicants' narrative must describe how they (or their 
Contract Administrator) successfully implemented grant programs 
(including those listed below) designed to promote resident self-
sufficiency or moving from welfare to work. Applicants' past experience 
may include, but is not limited to, running programs aimed at assisting 
residents of low-income housing achieve economic self-sufficiency; e.g. 
ROSS grants and Youthbuild. Applicants' narrative must indicate the 
grants they received and managed, the grant amounts, and grant terms 
(years) of the grants they are counting towards past experience. 
Applicants will be evaluated according to the following criteria:
    (a) Benefits gained by participating residents. These must be 
measurable. Applicants should describe results their programs have 
obtained, (e.g. higher incomes, improved grades, higher rates of 
employment, increased savings, improved literacy, etc.);
    (b) Description of timely grant expenditure throughout the term of 
past grants. Timely means regular drawdowns throughout the life of the 
grant, i.e. quarterly drawdowns, with all funds expended by the end of 
the grant term;
    (c) Description of past leveraging. Applicants must describe how 
they have leveraged funding or in-kind services beyond what was 
originally proposed for past projects;
    (3) Program Administration and Fiscal Management. (17 Points)
    (a) Program Administration. (10 Points). Applicants should describe 
how they will manage the program; how HUD can be sure that there is 
program accountability; and provide a description of proposed staff's 
roles and responsibilities. Applicants should also describe how grant 
staff, and partners will report to the Project Coordinator and other 
senior staff.
    (b) Fiscal Management. (7 Points). In rating this factor, 
applicants' skills and experience in fiscal management will be 
evaluated. If applicants have had any audit or material weakness 
findings in the past five years, they will be evaluated on how well 
they have addressed them. Applicants must provide the following:
    (i) A complete description of their fiscal management structure, 
including fiscal controls currently in place, which includes those of a 
Contract Administrator for applicants who required one. i.e., troubled 
PHAs);
    (ii) Applicants must list any audit findings in the past five years 
(HUD Inspector General, management review, fiscal, etc.), material 
weaknesses and what has been done to address them;
    (iii) For applicants who are required to have a Contract 
Administrator, describe the skills and experience the Contract 
Administrator has in managing Federal funds.
b. Rating Factor 2: Need (10 Points)
    This factor addresses the need for funding an applicant's proposed 
program. In responding to this factor, applicants will be evaluated on 
the extent to which they describe and document the level of need for 
their proposed activities.
    In responding to this factor, applicants must include:
    (1) Demonstrated Link Between Proposed Activities and Local Need 
(10 points). Applicants' narrative must demonstrate a clear 
relationship between proposed activities, community needs and the 
purpose of the program's funding in order for points to be awarded for 
this factor.
c. Rating Factor 3: Soundness of Approach (25 Points)
    This factor addresses both the quality and cost-effectiveness of 
applicants' proposed business plan. The business plan must indicate a 
clear relationship between proposed activities, the targeted 
population's needs, and the purpose of the program funding. Applicants' 
activities must address HUD's policy priorities outlined in this Rating 
Factor.
    In rating this factor HUD will consider:
    (1) Quality of the Business Plan (20 points). This factor evaluates 
both the applicants' business plan and budget which will be evaluated 
based on the following criteria:
    (a) Specific Services and/or Activities (9 points). Applicants' 
narrative must describe the specific services, course curriculum, and 
activities they plan to offer and who will be responsible for each. In 
addition to the narrative, applicants must also provide a business plan 
listing the specific services, activities, and outcomes they expect. 
The business plan must show a logical order of activities and progress 
and must tie to the outcomes and outputs applicants identify in the 
Logic Model (see Rating Factor 5). Please see a sample business plan 
(HUD-52766). Applicants' narrative must explain how their proposed 
activities will:
    (i) Involve community partners in the delivery of services (4 
points); and
    (ii) Offer comprehensive services versus a small range of services 
geared toward enhancing economic opportunities for residents. (5 
points).
    (b) Feasibility and Demonstrable Benefits (4 points). This factor 
examines whether applicants' business plan is logical, feasible and 
likely to achieve its stated purpose during the term of the grant. 
HUD's desire is to fund applications that will quickly produce

[[Page 11950]]

demonstrable results and advance the purposes of the Neighborhood 
Networks program.
    (i) Timeliness. This subfactor evaluates whether applicants' 
business plan demonstrates that their project is ready to be 
implemented shortly after grant award. In addition, the timing of the 
application should not exceed three months following the execution of 
the grant agreement. The business plan must indicate timeframes and 
deadlines for accomplishing major activities.
    (ii) Description of the problem and solution. The business plan 
will be evaluated based on how well applicants' proposed activities 
address the needs described in Rating Factor 2.
    (c) Budget Appropriateness/Efficient Use of Grant. (5 Points) The 
score in this factor will be based on the following:
    (i) Justification of expenses. (2 Points) Applicants will be 
evaluated based on whether their expenses are reasonable, well 
explained, and support the objectives of their proposal.
    (ii) Budget Efficiency. (3 Points) Applicants will be evaluated 
based on whether their application requests funds commensurate with the 
level of effort necessary to accomplish their goals and anticipated 
results.
    (d) Ineligible Activities. Two points will be deducted for each 
ineligible activity proposed in the application, as identified in 
Section IV(E). For example, you will lose 2 points if you propose costs 
that exceed the limits identified in the NOFA for a Project 
Coordinator.
    (2) Addressing HUD's Policy Priorities (5 points). HUD wants to 
improve the quality of life for those living in distressed communities. 
HUD's grant programs are a vehicle for long-term, positive change that 
can be achieved at the community level. Applicants' narrative and 
business plan will be evaluated based on how well they meet the 
following HUD policy priorities:
    (a) Improving the Quality of Life in Our Nation's Communities (1 
point). In order to receive points in this category, applicants' 
narrative and business plan must indicate the types of activities, 
services, and training programs that will be offered. These programs 
should help residents successfully transition from welfare to work and 
earn higher wages, or for elderly/disabled residents, to continue to 
live independently.
    (b) Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation (1 
point). HUD encourages applicants to partner with grassroots 
organizations, e.g., civic organizations, grassroots faith-based and 
other community-based organizations. These grassroots organizations 
have a strong history of providing vital community services such as 
developing first-time homeownership programs, creating economic 
development programs, providing job training and other supportive 
services. In order to receive points under this factor, applicants' 
narrative and business plan must describe how applicants will work with 
these organizations and what types of services they will provide.
    (c) Policy Priority for Increasing the Supply of Affordable Housing 
Through the Removal of Regulatory Barriers to Affordable Housing. (up 
to 2 points)
    Under this policy priority, higher rating points are available to 
(1) governmental applicants that are able to demonstrate successful 
efforts in removing regulatory barriers to affordable housing, and (2) 
nongovernmental applicants undertaking activities in jurisdictions that 
have undertaken successful efforts in removing barriers. For applicants 
to obtain the policy priority points for efforts to successfully remove 
regulatory barriers, applicants should complete form HUD 27300, 
``Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers.'' A copy of HUD's Notice entitled America's Affordable 
Communities Initiative, HUD's Initiative on Removal of Regulatory 
Barriers: Announcement of Incentive Criteria on Barrier Removal in 
HUD's 2004 Competitive Funding Allocations'' can be found on HUD's Web 
site at http://www.hud.gov/grants/index.cfm. The information and 
requirements contained in HUD's regulatory barriers policy priority 
apply to this FY 20056 NOFA. A description of the policy priority and a 
copy of form HUD 27300 can be found in the application package posted 
to www.grants.gov. Applicants are encouraged to read the Notice as well 
as the General Section to obtain an understanding of this policy 
priority and how it can impact their score. A number of questions 
expressly request the applicant to provide brief documentation with 
their response. Other questions require that for each affirmative 
statement made, the applicant must supply a reference, URL, or a brief 
statement indicating where the back-up information may be found, and a 
point of contact, including a telephone number or e-mail address. The 
electronic copy of the HUD 27300 has space to identify a URL or 
reference that the material is being scanned and attached to the 
application as part of the submission or faxed to HUD following the 
facsimile submission instructions.
    (d) Energy Star. (1 point) HUD has adopted a wide-ranging energy 
action plan for improving energy efficiency in all program areas. As a 
first step toward 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 materials and practices, 
as well as buildings constructed to Energy Star standards, to both 
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 1-888-STAR-YES (1-888-782-7937) or for the 
hearing-impaired, 1-888-588-9920 TTY. Applicants demonstrating that 
they will meet one or more provisions of this policy priority will 
receive one point.
    (e) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3)--(2 Points). You will receive 2 points if your application 
demonstrates that you will implement 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 in connection with 
this grant, if awarded. Information about Section 3 can be found at 
HUD's Section 3 Web site at www.hud.gov/fhe/sec3over.html. Your 
application must describe how you will implement Section 3 through the 
proposed grant activities. You must state 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.

[[Page 11951]]

d. Rating Factor 4: Leveraging Resources (20 Points)
    (1) This factor addresses the applicant's ability to secure 
community resources that can be combined with HUD's grant resources in 
order to achieve program purposes. Applicants are required to create 
partnerships with organizations that can help achieve their program's 
goals. PHAs are required by section 12(d)(7) of the U.S. Housing Act of 
1937 (entitled ``Cooperation Agreements for Economic Self-Sufficiency 
Activities'') to make best efforts to enter into such agreements with 
relevant state or local agencies. In rating this factor, HUD will look 
at the extent to which applicants partner, coordinate and leverage 
their services and resources with other organizations serving the same 
or similar populations.
    (2) Additionally, applicants must have at least a 25 percent cash 
or in-kind match. The match is a threshold requirement. Joint 
applicants must have at least a 25 percent match. Applicants who do not 
demonstrate the minimum 25 percent match will fail the threshold 
requirement and will not receive further consideration for funding. 
Leveraging in excess of the 25 percent of the requested grant amount 
will receive a higher point value. In evaluating this factor HUD will 
consider the extent to which applicants have partnered with other 
entities to secure additional resources. This will increase the 
effectiveness of the proposed program activities. The additional 
resources and services must be firmly committed, must support the 
proposed grant activities and must, in combined amount (including in-
kind contributions of personnel, space and/or equipment, and monetary 
contributions) equal at least 25 percent of the grant amount requested 
in this application. Match proposed to be used for ineligible 
activities will not be accepted. ``Firmly committed'' means that the 
amount of resources and their dedication to Neighborhood Networks-
funded activities must be explicit, in writing, and signed by a person 
authorized to make the commitment. ``In-kind'' match should be 
explained explicitly and include a total amount for the grant term. 
Please see the section on Threshold Requirements for more information.
    (3) Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested Neighborhood Networks funds to the total proposed grant 
budget.
    Points will be assigned based on the following scale:

 
------------------------------------------------------------------------
            Percentage of match                    Points awarded
------------------------------------------------------------------------
25........................................  5 points (with partnerships)
                                             3 points (without
                                             partnerships).
26-50.....................................  10 points (with
                                             partnerships) 8 points
                                             (without partnerships).
51-75.....................................  15 points (with
                                             partnerships) 13 points
                                             (without partnerships).
76 or above...............................  20 points (with
                                             partnerships) 18 points
                                             (without partnerships).
------------------------------------------------------------------------

e. Rating Factor 5: Achieving Results and Program Evaluation (10 
Points)
    (1) An important element of any supportive service program is the 
development and reporting of performance measures and outcomes. This 
factor emphasizes HUD's determination to ensure that applicants meet 
commitments made in their applications and grant agreements. They are 
also required to assess their performance so they can measure 
performance goals. Applicants must demonstrate how they propose to 
measure their success and outcomes relating to the Department's 
Strategic Plan. HUD requires NN applicants to develop an effective, 
quantifiable, outcome-oriented plan for measuring performance and 
determining that goals have been met. Applicants must use the Logic 
Model form (HUD-96010) for this purpose. The narrative describes how 
the measurement tools are used to collect and verify reported data and 
to modify the program if goals are not being met.
    (2) Applicants must establish interim benchmarks, or outputs, for 
their proposed program that lead to the ultimate achievement of 
outcomes. ``Outputs'' are the direct products of a program's 
activities. Outputs should produce outcomes for your program; e.g., the 
delivery of training and/or educational programs to improve the ability 
of participants to obtain or retain employment, get a high school 
diploma or GED, get on-the-job training by establishing partnerships 
with local employers, etc. ``Outcomes'' are benefits accruing to the 
residents, families and/or communities during or after participation in 
the NN program. Applicants must clearly identify the outcomes to be 
achieved and measured. Examples of outcomes are: increasing academic 
achievement, increasing residents' financial stability by obtaining or 
retaining employment, increasing a participants' job readiness by 
increasing literacy or completing a GED, etc. Outcomes are not the 
actual development or delivery of services or program activities but 
the results of the services delivered or program activities--the 
ultimate results of the program.
    (3) This rating factor requires that applicants identify program 
outputs, outcomes, and performance indicators that will allow 
applicants to measure their performance. Performance indicators should 
be objectively quantifiable and measure actual achievements against 
anticipated achievements. Applicants' narrative, business plan, and 
Logic Model should identify what applicants are going to measure, how 
they are going to measure it, and the steps they have in place to make 
adjustments if performance targets begin to fall short of established 
benchmarks and timeframes. Applicants' proposals must also show how 
they will measure the performance of partners and affiliates. 
Applicants must include the standards, data sources, and measurement 
methods they will use to measure performance. Applicants will be 
evaluated based on how comprehensively they propose to measure their 
program's outcomes.

B. Review and Selection Process

1. Review Process
    Four types of reviews will be conducted: A screening to determine 
if you are eligible to apply for funding under the Neighborhood 
Networks category; whether your application submission is complete, on 
time and meets threshold; a review by the field office to evaluate past 
performance; and a technical review to rate your application based on 
the five rating factors provided in this NOFA.
2. Selection Process
    HUD will make awards in rank order based on the score of each 
eligible application.
3. Tie Scores
    In the event of a tie score between two applications, HUD will 
select the application that was received first.
4. Deficiency Period
    Applicants will have fourteen calendar days in which to provide 
missing information requested from HUD. For other information on 
correcting deficient applications, please see the General Section.

[[Page 11952]]

VI. Award Administration Information

A. Award Notices

    HUD will make announcements of grant awards after the rating and 
ranking process is completed. Grantees will be notified by letter. The 
letter will contain instructions and the steps they must take to access 
funding and begin implementing grant activities. Applicants who are not 
funded will also receive letters via U.S. postal mail.

B. Debriefings

    Applicants who are not funded may request a debriefing. Applicants 
requesting to be debriefed must send a written request to: Iredia 
Hutchinson, Director, Grants Management Center, 501 School Street, SW., 
Suite 800, Washington, DC 20024. Please refer to the General Section 
for additional information on debriefings.

C. Administrative and National Policy Requirements

1. Applicable Requirements
    Grantees are subject to regulations and other requirements found 
in:
    a. 24 CFR 85 ``Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments'';
    b. 24 CFR Part 905 ``The Public Housing Capital Fund Program'';
    c. 24 CFR Part 968 ``Public Housing Modernization'';
    d. OMB Circular A-87 ``Cost Principles for State, Local, and Indian 
Tribal Governments''; and
    e. OMB Circular A-133 ``Audits of States, Local Governments, and 
Non-Profit Organizations''.
2. Economic Opportunities for Low- and Very Low-Income Persons (Section 
3)
    Applicants and grantees must also comply with Section 3 of the 
Housing and Urban Development Act of 1968, 12 U.S.C. 1701u and ensure 
that training, employment, and other economic opportunities shall, to 
the greatest extent feasible, be directed toward low and very low-
income persons, particularly those who are recipients of government 
assistance for housing and to business concerns which provide economic 
opportunities to low and very low-income persons.
3. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects
    For further information see the General Section.
4. Fair Housing and Civil Rights Laws
    Applicants and their subrecipients must comply with all Fair 
Housing and Civil Rights laws, statutes, regulations, and Executive 
Orders as enumerated in 24 CFR 5.105(a), as applicable. Please see the 
General Section for more information.
5. Environmental Impact
    Some activities under this Neighborhood Networks program section 
will be excluded and not subject to environmental review under 24 CFR 
58.34(a)(3), (a)(8) or (a)(9), 58.35(b)(2) or (b)(3), 50.19(b)(3), 
(b)(8), (b)(9), (b)(12), or (b)(13). Some will be subject to 
environmental review. Any applicant proposing any long-term leasing or 
physical development activities, and its partners, are prohibited from 
constructing, rehabilitating, converting, leasing, repairing or 
constructing property, or committing or expending HUD or non-HUD funds 
for these types of program activities, until the following has 
occurred:
    HUD has approved the grantee's Request for Release of Funds (HUD 
Form 7015.15) following a Responsible Entity's completion of an 
environmental review under 24 CFR part 58, where required, or if HUD 
has determined in accordance with 24 CFR 58.11 to perform the 
environmental review itself under 24 CFR part 50, HUD has completed the 
environmental review.
6. Wage Rates
    Laborers and mechanics employed in the development and operation of 
Neighborhood Networks facilities must be paid Davis-Bacon or HUD-
determined prevailing wage rates, respectively, unless they meet the 
qualifications of a volunteer (See Section III.C.1.a of this program 
section).
7. Provision of Services to Individuals With Limited English 
Proficiency (LEP)
    Successful applicants and grantees must seek to provide access to 
program benefits and information to LEP individuals through translation 
and interpretive services in accordance with HUD's LEP Recipient 
Guidance 68 FR 70968.
8. Communications
    Successful applicants should ensure that notices of and 
communications during all training sessions and meetings be effective 
for persons who have hearing and/or visual disabilities consistent with 
Section 504, see 24 CFR 8.6.
9. Procurement of Recovered Materials
    State agencies or a political subdivision of a state that are using 
assistance under a HUD program NOFA, must comply with the requirements 
of Section 6002 of the Solid Waste Disposal Act, as amended by the 
Resource Conservation and Recovery Act. In addition, any person 
contracting with such an agency with respect to work performed under an 
assisted contract, must comply with the requirements of Section 6002 of 
the Solid Waste Disposal Act, as amended by the Resource Conservation 
and Recovery Act. Please see the General Section for more information.

D. Reporting

1. Semi-Annual Performance Reports
    Grantees must submit semi-annual performance reports to the local 
HUD field office. These progress reports shall include financial 
reports (SF-269A) and the logic model (HUD-96010) showing achievements 
to date against outputs and outcomes proposed in the application and 
approved by HUD. A narrative describing milestones, work plan progress, 
and problems encountered and methods used to address these problems to 
support the data in the logic model is optional. HUD anticipates that 
some of the reporting of financial status and grant performance will be 
through electronic or Internet-based submissions. Grantees shall use 
quantifiable data to measure performance against goals and objectives 
outlined in their business plan. Applicants that receive awards from 
HUD should be prepared to report on additional measures that HUD may 
designate at time of award. Performance reports are due to the field 
office on July 30 and January 31 of each year. If reports are not 
received by the due date, grant funds will not be advanced until 
reports are received. For FY2006, HUD is considering a new concept for 
the Logic Model. The new concept is a Return on Investment statement. 
HUD will be publishing a separate notice on the ROI concept.
2. Final Report
    All grantees must submit a final report to their local field office 
that will include a financial report (SF-269A), a final Logic Model, 
and a narrative evaluating overall results achieved against their work 
plan. Grantees must use quantifiable data to measure performance 
against goals and objectives outlined in their work plan. The financial 
report must contain a summary of all expenditures made from the 
beginning of the grant agreement to

[[Page 11953]]

the end of the grant agreement and must include any unexpended 
balances. The final narrative, Logic Model, and financial report are 
due to the field office 90 days after the termination of the grant 
agreement.
3. Final Audit
    Grantees that expend $500,000 in federal funds in a given program 
or fiscal year, are required to obtain a complete final close-out 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 84 or 24 CFR 85 as stated in OMB Circulars A-87, 
A-110, and A-122, as applicable.
4. Racial and Ethnic Data
    HUD requires that funded recipients collect racial and ethnic 
beneficiary data. HUD has adopted the Office of Management and Budget's 
Standards for the Collection of Racial and Ethnic Data. In view of 
these requirements, applicants should use form HUD-27061, Racial and 
Ethnic Data Reporting Form.

VII. Agency Contact(s)

    For questions and technical assistance, applicants may call the 
Public and Indian Housing Information and Resource Center at 800-955-
2232. For the hearing or speech impaired, please call the Federal Relay 
Service at 800-877-8339.

VIII. Other Information

A. Code of Conduct

    See the General Section for more information.

B. Transfer of Funds

    HUD does not have the discretion to transfer funds for the 
Neighborhood Networks category to or from any other grant program.

C. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2577-0229. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 54.25 hours per respondent for the application. This includes 
the time for collecting, reviewing, and reporting the data for the 
application. 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.

BILLING CODE 4210-01-P

[[Page 11954]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.024


[[Page 11955]]



Public and Indian Housing Family Self-Sufficiency Program Coordinators 
Under Resident Opportunities & Self-Sufficiency (ROSS) Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Public and Indian Housing, Office of Public 
Housing Investments.
    B. Funding Opportunity Title: Public and Indian Housing Family 
Self-Sufficiency (PH FSS) Program Coordinators.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number for this 
NOFA is FR-5030-N-25. The Office of Management and Budget (OMB) 
paperwork approval number for this program is 2577-0229.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.877.
    F. Application Deadline: The application deadline date is June 8, 
2006. Please see the General Section for application submission, 
delivery, and timely receipt requirements.
    G. Additional Overview Content Information:
1. Purpose of Program
    The purpose of the Public Housing FSS (PH FSS) program is to 
promote the development of local strategies to coordinate the use of 
assistance under the Public Housing program with public and private 
resources to enable participating families to increase earned income, 
reduce or eliminate the need for welfare assistance and make progress 
toward achieving economic independence and housing self-sufficiency. 
The FSS program and this FSS NOFA support the Department's strategic 
goals of helping HUD-assisted renters make progress toward housing 
self-sufficiency. The FSS program provides critical tools that can be 
used by communities to support welfare reform and help families develop 
new skills that will lead to economic self-sufficiency. As a result of 
their participation in the FSS program, many families have achieved 
stable, well-paid employment, which has made it possible for them to 
become homeowners or move to other non-assisted housing. An FSS program 
coordinator assures that program participants are linked to the 
supportive services they need to achieve self-sufficiency.
2. Funding Available
    The Department expects to award a total of approximately $10 
million in FY2006.
3. Award Amounts
    Awards will pay only for the annual salary and fringe benefits of 
PH FSS Coordinators. Award amounts will be based on locality pay rates 
for similar professions. Each renewal position amount will not exceed 
$65,000.
4. Eligible Applicants
    Eligible applicants are Public Housing Authorities (PHAs) and 
tribes/Tribally Designated Housing Entities (TDHEs) that administer PH 
FSS programs. All applicants must have an approved PH FSS Action Plan 
on file with their local HUD Field Office or Area ONAP prior to this 
NOFA's application deadline. Non-profit organizations and resident 
associations are not eligible to apply for funding under this program.
5. Cost Sharing/Match Requirement
    There is no match requirement under this funding program.
6. Grant Term
    The grant term is one year from the execution date of the grant 
agreement.

Full Text of Announcement

I. Funding Opportunity Description

A. Authority and Program Description

    The Transportation, Treasury, Housing and Urban Development, the 
Judiciary, the District of Columbia, and Independent Agencies 
Appropriations Act, 2006 (Public Law 109-115), allows funding for 
program coordinators under the Resident Opportunity & Self-Sufficiency 
program. Through annual NOFAs, HUD has provided funding to public 
housing agencies (PHAs) that are operating PH FSS programs to enable 
those PHAs to employ program coordinators to support their PH FSS 
programs. In the Fiscal Year (FY) 2006 PH FSS Program Coordinator NOFA, 
HUD is again making funding available to PHAs/Tribes/TDHEs to employ PH 
FSS program coordinators for one year. HUD will accept applications 
from both new and renewal applicants that have HUD approval to 
administer a PH FSS program. PHAs funded under the ROSS PH FSS NOFA in 
FY2004 or 2005 are considered ``renewal'' PHAs in this NOFA. These 
renewal PHAs are invited to apply for funds to continue previously 
funded PH FSS program coordinator positions that they have filled or 
are in the process of being filled because of turnover. Funding 
priority will be given to renewals for PHAs that have achieved a ``High 
Performer'' status on their most recent PHAS review. Second priority 
will be given to standard performer renewal applicants. Third priority 
will be given to troubled performer renewal applicants and Fourth 
priority will be given to new applicants. There will be no funding for 
expanding the number of coordinator positions in an existing program.
    The maximum number of positions that a new applicant, including new 
joint applicants, may receive is one full-time FSS program coordinator.
    Applicants must administer the FSS program in accordance with HUD 
regulations and requirements in 24 CFR Part 984 which govern the PH FSS 
program and must comply with the existing Public Housing program 
requirements, notices and guidebooks. This includes using a Program 
Coordinating Committee (PCC) to secure the necessary resources to 
implement the FSS Program. See 24 CFR 984.202 for more information.

B. Number of Positions for Which Eligible Applicants May Apply

    Eligible applicants may apply for funding for PH FSS program 
coordinator positions under this NOFA as follows:
1. Renewal PHAs
    PHAs that qualify as eligible renewal PHAs under this NOFA may 
apply for the continuation of each PH FSS coordinator position awarded 
under the ROSS PH FSS NOFA in FY2004 or 2005 that has been filled by 
the PHA or is in the process of being filled because of turnover.
2. New Applicants
    An applicant that meets the requirements for a new applicant under 
this FSS NOFA may apply for PH FSS program coordinator positions as 
follows:
    a. Up to one full-time PH FSS coordinator position for an applicant 
with HUD approval to administer a PH FSS program of 25 or more FSS 
slots; or
    b. Up to one full-time PH FSS coordinator position per application 
for joint PHA applicants that together have HUD approval to administer 
a total of at least 25 PH FSS slots.

C. Definitions

    The following definitions apply to the funding available under this 
NOFA.
1. Renewal PHA Applicant
    A PHA or PHAs that received funding under the ROSS PH FSS NOFA in 
FY2004 or 2005.
2. New Applicant
    Applicants that did not receive funding under the ROSS PH FSS NOFA 
in FY2005 that have HUD approval to administer a PH FSS program of at 
least 25 slots or that fulfill the 25 slot

[[Page 11956]]

minimum by applying jointly with one or more other applicants who 
together have approval to administer at least 25 PH FSS slots.
    3. Indian Tribe (``tribe'')/TDHE means any tribe, band, nation or 
other organized group or a community of Indians, including any Alaska 
native village, regional, or village corporation as defined in or 
established pursuant to the Alaska Native Claims Settlement Act, and 
that is recognized as eligible for the special programs and services 
provided by the United States to Indians because of their status as 
Indians pursuant to the Indian Self Determination and Education Act of 
1975, or any state-recognized tribe eligible for assistance under 
section 4 (12)(C) of NAHASDA. Tribally Designated Housing Entity (TDHE) 
means a tribally designated housing entity as defined by Section 4(21) 
of NAHASDA.
4. MTW PHAs
    New and renewal PHAs that are under MTW agreements with HUD may 
qualify for funding under this NOFA if the PHA administers an FSS 
program. When determining the size of a new applicant, MTW PHA's HUD 
approved FSS program, the PHA may request the number of FSS slots 
reflected in the PHA's MTW agreement be used instead of the number in 
the PHA's FSS Action Plan.
5. FSS Program Size
    The total number of PH FSS program slots identified in the 
applicant's HUD-approved PH FSS Action Plan, or, if requested by MTW 
PHA applicants, the number of slots in the applicant's MTW agreement. 
The total may include both voluntary and mandatory PH FSS program 
slots.
6. Action Plan
    Describes the policies and procedures of the PHA or tribe/TDHE for 
operation of a local FSS program. For a full description of the minimum 
amount of information the Action Plan must contain, please see 24 CFR 
984.201.
7. Positive Graduation Percentage
    A percentage that will be computed by HUD and used to determine 
funding order under this NOFA. It is the percent of public housing FSS 
families that have successfully graduated from the program as shown in 
FSS exit reports submitted to HUD on the Form HUD-50058 or as otherwise 
reported to HUD by MTW PHAs. The data source is Form HUD-52767 as well 
as HUD's PIC data system records of Form HUD-50058 PH FSS program exit 
reports that were effective between October 1, 2000, and the 
publication date of this NOFA.
8. The Number of PH FSS Program Participants
    The total number of families shown in HUD's PIC data system as 
enrolled in the applicant's PH FSS program on the publication date of 
this NOFA, plus the number of families that successfully completed 
their PH FSS contracts in the applicant's program between October 1, 
2000, and the publication date of this NOFA.
9. Percentage of Families with Positive FSS Escrow Balances
    A percentage that will be computed by HUD and used to determine 
funding order under this NOFA. It is the number of PH FSS families with 
positive escrow balances as a percentage of PH FSS families with FSS 
progress reports submitted to HUD on the Form HUD-50058 or as otherwise 
reported to HUD by MTW PHAs. The data source is Form HUD-52767 as well 
as HUD's PIC data system records of Form HUD-50058 PH FSS program 
progress reports that were effective between October 1, 2000, and the 
publication date of this NOFA or as otherwise reported to HUD by MTW 
PHAs.
10. PH FSS Program Coordinator
    A person responsible for linking FSS program participants to 
supportive services. Program Coordinators will work with the Program 
Coordinating Committee and local service providers to ensure that the 
necessary services and linkages to community resources are being made; 
ensuring that the services included in participants' contracts of 
participation are provided on a regular, ongoing and satisfactory 
basis; making sure that participants are fulfilling their 
responsibilities under the contracts and that FSS escrow accounts are 
established and properly maintained for eligible families. FSS 
Coordinators may also perform job development functions for the FSS 
program.

II. Award Information

A. Available Funds

    This NOFA announces the availability of approximately $10 million 
in FY2006 to employ FSS program coordinators for the PH FSS program. If 
additional funding becomes available during FY2006, HUD may increase 
the amount available for PH FSS Program coordinators under this NOFA. A 
maximum of $65,000 is available for each full-time coordinator position 
funded. Salaries are to be based on local comparables. The funding will 
be provided as a one-year grant. Funding amounts for individual 
grantees will be contingent upon HUD field office approval.

B. Grant Term

    The grant term is one year from the execution date of the grant 
agreement.

C. Grant Extensions

    Requests to extend the grant term beyond the originally established 
grant term must be submitted in writing to the local HUD field office 
or area Office of Native American Programs (ONAP) at least 90 days 
prior to the expiration of the grant term. Requests must explain why 
the extension is necessary, what work remains to be completed, and what 
work and progress has been accomplished to date. Extensions may be 
granted only once by the field office or Area ONAP for a period not to 
exceed six months and may be granted for a further six months by the 
Program Office.

III. Eligibility Information

A. Eligible Applicants

    Eligible applicants are PHAs and tribes/TDHEs which administer low 
rent public housing programs. New and renewal applicants must have an 
approved PH FSS Action Plan on file with their local HUD field office 
or Area ONAP prior to this NOFA's application deadline. PHAs eligible 
to apply for funding under this NOFA are:
1. Renewal PHAs
    Those PHAs that received funding under the PH FSS NOFA in FY2004 or 
2005 . To continue to qualify as renewal PHAs, the FY2006 application 
of joint applicants must include at least one PHA applicant that meets 
this standard. Joint applicants can change the lead PHA in their FY2006 
application. A PHA that was originally funded as part of a joint 
application, that wishes to now apply separately will continue to be 
considered a renewal PHA applicant for funding purposes, but must be 
able to meet the FSS minimum program size requirement of a HUD-approved 
PH FSS program of at least 25 slots that applies to new applicant PHAs.
2. New Applicants
    Applicants that were not funded under the PH FSS NOFA in FY2005. 
The new applicant PHA must be authorized through its HUD-approved FSS 
Action Plan to administer a PH FSS program of at least 25 slots, or be 
an applicant with HUD approval to administer PH FSS programs of fewer 
than 25 slots that applies jointly with one or more other applicants so 
that together they have HUD approval to

[[Page 11957]]

administer at least 25 PH FSS slots. Joint applicants must specify a 
lead co-applicant that will receive and administer the FSS program 
coordinator funding.
3. Moving to Work (MTW) PHAs
    New and renewal PHAs that are under the MTW demonstration may 
qualify for funding under this NOFA if the PHA administers a PHFSS 
program. When determining the size of a MTW PHA's HUD-approved PH FSS 
program, the PHA may request that the number of PH FSS slots reflected 
in the PHA's MTW agreement be used instead of the number in the PHA's 
PH FSS Action Plan.
4. Troubled PHAs
    a. A PHA that has been designated by HUD as a troubled PHA under 
the Public Housing Assessment System (PHAS), or that has serious 
program management findings from Inspector General audits or serious 
outstanding HUD management review or Independent Public Accountant 
(IPA) audit findings for the PHA's Low Rent Public Housing program that 
are resolved prior to the application due date is eligible to apply 
under this NOFA. Serious program management findings are those that 
would cast doubt on the capacity of the PHA to administer its PH FSS 
program in accordance with applicable HUD regulatory and statutory 
requirements.
    b. The requirements that apply to a PHA whose PHAS troubled 
designation has not been removed by HUD or whose major program 
management findings or other significant program compliance problems 
that have not been resolved by the due date are stated in the Program 
Requirements section of this NOFA.

B. Cost Sharing or Matching

    None required.

C. Other

1. Eligible Activities
    Funds awarded to applicants under this FSS NOFA may only be used to 
pay salaries and fringe benefits of PH FSS program staff. Funding may 
be used to employ or otherwise retain for one year the services of PH 
FSS program coordinators. PH FSS coordinator support positions funded 
under previous FSS NOFAs that made funding available for such FSS 
positions may be continued. A part-time program coordinator may be 
retained where appropriate. Please note that even with a part-time 
program coordinator, the 25 slot minimum must be retained.
2. Threshold Requirements
    a. All Applicants. (1) Each applicant must qualify as an eligible 
applicant under this NOFA and must have submitted an FSS application in 
the format required by this NOFA that was received and validated by 
Grants.gov by the application deadline date.
    (2) All applications must include a Dun and Bradstreet Universal 
Numbering System (DUNS) number. (See the General Section for further 
information about the DUNS number requirement.)
    (3) Civil Rights Thresholds, Non-discrimination, Affirmatively 
Furthering Fair Housing. All applicants must comply with these 
requirements. Please see the General Section for details.
    (4) The applicant must have a financial management system that 
meets federal standards. See the General Section regarding those 
applicants that may be subject to HUD's arranging for a pre-award 
survey of an applicant's financial management system.
    (5) Applicants must comply with the requirements for funding 
competitions established by the HUD Reform Act of 1989 (42 U.S.C. 3531 
et seq.) and other requirements as defined in the General Section.
    b. Renewal Applicants. Continued funding for existing coordinator 
positions. In addition to meeting the other requirements of this FSS 
NOFA, renewal PHA applicants must continue to operate a PH FSS program, 
have filled (or be in the process of filling because of turnover) 
eligible FSS program coordinator positions for which they are seeking 
renewal funding, executed FSS contracts of participation with PH FSS 
program families and submitted reports on participant families to HUD 
via the form HUD-50058 or reported as agreed for MTW PHAs.
    c. New Applicants. New applicants must meet the all requirements of 
this FSS NOFA including those in Section III.A above regarding 
eligibility.
    d. Troubled PHAs--Contract Administrator Partnership Agreement. 
PHAs that are troubled at the time of application are required to 
submit a signed Contract Administrator Partnership Agreement. The 
agreement must be for the entire grant term. The grant award shall be 
contingent upon having a signed Partnership Agreement included in the 
application. The Contract Administrator must ensure that the financial 
management system and procurement procedures that will be in place 
during the grant term will fully comply with 24 CFR Part 85. Troubled 
PHAs are not eligible to be contract administrators. Grant writers who 
assist applicants to prepare their FSS applications are ineligible to 
be Contract Administrators.
3. Program Requirements
    a. Hiring a PH FSS Program Coordinator. Funds awarded to PHAs under 
this NOFA may only be used to employ or retain the services of a PH FSS 
Program Coordinator for the one-year grant term. A PH FSS Program 
Coordinator must:
    (1) Work with the Program Coordinating Committee and with local 
service providers to ensure that PH FSS program participants are linked 
to the supportive services they need to achieve self-sufficiency.
    (2) Ensure that the services included in participants' contracts of 
participation are provided on a regular, ongoing and satisfactory 
basis, that participants are fulfilling their responsibilities under 
the contracts and that FSS escrow accounts are established and properly 
maintained for eligible families. All of these tasks should be 
accomplished through case management. FSS coordinators may also perform 
job development functions for the FSS program.
    (3) Monitor the progress of program participants and evaluate the 
overall success of the program.
    b. Salary Comparables. For all positions requested under this NOFA, 
evidence of salary comparability to similar positions in the local 
jurisdiction must be kept on file in the PHA/Tribe/TDHE office.
    c. FSS Action Plan. The requirements for the PH FSS Action Plan are 
stated in 24 CFR 984.201. For a new applicant to qualify for funding 
under this NOFA, the PHA/Tribe/TDHE's initial PH FSS Action Plan or 
amendment to change the number of PH FSS slots in the PHA's previously 
HUD-approved PH FSS Action Plan, must be submitted to and approved by 
the PHA's local HUD field office or Area ONAP prior to the application 
due date of this PH FSS NOFA. An FSS Action Plan can be updated by 
means of a simple one-page addendum that reflects the total number of 
PH FSS slots (voluntary and /or mandatory slots) the PHA intends to 
fill. New PHA applicants with previously approved PH FSS Action Plans 
may wish to confirm the number of HUD-approved slots their local HUD 
field office has on record for the PHA. An MTW PHA may request that the 
number of PH FSS slots reflected in its MTW agreement be used instead 
of the number of slots in the PHA's PH FSS Action Plan.
    d. Eligible families. Current residents of public/Indian housing 
are eligible.

[[Page 11958]]

Eligible families who are currently enrolled or participating in local 
public/Indian housing self-sufficiency programs are also eligible.
    e. Contract of participation. Each family that is selected to 
participate in an FSS program must enter into a contract of 
participation with the PHA or tribe/TDHE that operates the FSS program. 
The contract shall be signed by the head of the FSS family.
    f. Contract term. The contract with participating families shall be 
for five years. During this time each family will be required to 
fulfill its contractual obligations. PHAs or tribes/TDHEs may extend 
contracts for no more than two years for any family that requests an 
extension of its contract provided the PHA or tribe/TDHE finds that 
good cause exists to provide an extension. This extension request must 
be in writing. See 24 CFR 984.303 for more information on contracts of 
participation.
    g. Escrow accounts for very low or low income participating 
families. Such accounts shall be computed using the guidelines set 
forth in 24 CFR 984.305. Note: FSS families who are not low-income are 
not entitled to an escrow/credit. .

IV. Application and Submission Information

A. Addresses To Request Application Package

    Applications are available from www.Grants.gov/Apply. The Download 
Instructions and the Application Download provide the information and 
forms that you need to apply for funding under this NOFA. If you have 
difficulty accessing the information you may receive customer support 
from Grants.gov by calling their Support Desk at (800) 518-GRANTS, or 
sending an e-mail to [email protected]. You may request general 
information, from the NOFA Information Center (800-HUD-8929) or 800-
HUD-2209 (TTY) between the hours of 10 a.m. and 6:30 p.m. (Eastern 
Time) Monday through Friday, except on federal holidays. When 
requesting information, please refer to the name of the program you are 
interested in. The NOFA Information Center opens for business 
simultaneously with the publication of the SuperNOFA. You can also 
obtain information on this NOFA from HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

B. Content and Format of Application Submission

1. Content of Application
    In addition to any information required in the General Section, 
each new and renewal applicant must complete the forms on the list 
below. Copies of the forms may be downloaded with the application 
package and instructions from www.Grants.gov/Apply or from the 
following Web site: http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    a. SF-424 Application for Federal Assistance--In completing the SF-
424, renewal PHAs should select the continuation box on question 2, 
type of application. In section 18 of the SF-424, estimated funding, 
complete only 18.a., which will be the amount requested from HUD in the 
FY2006 FSS application, and 18.g., Total.
    b. SF-424 Supplement, Survey on Ensuring Equal Opportunity for 
Applicants.
    c. HUD-27300 Questionnaire for HUD's Initiative on Removal of 
Regulatory Barriers.
    d. SF-LLL Disclosure of Lobbying Activities (if applicable).
    e. HUD-2880--Applicant Disclosure/Update Report.
    f. HUD-2990--Certification of Consistency with RC/EZ/EC-II 
Strategic Plan (if applicable).
    g. HUD-2991--Certification of Consistency with the Consolidated 
Plan (if applicable).
    h. Tribes/TDHE's must submit a HUD-52752--Certification of 
Consistency with Indian Housing Plan.
    i. Contract Administrator Partnership Agreement, if required (see 
HUD-52755).
    j. HUD-96011 Facsimile Transmittal, even if not transmitting any 
faxes.
    k. HUD-52767 Family Self-Sufficiency Funding Request Form.
    l. The HUD-2994-A--``You Are Our Client Applicant Survey'' is 
optional.
    m. In addition, the application must include a completed Logic 
Model (from HUD 96010) showing proposed performance measures. See the 
General Section for information on the Logic Model.
2. Budget Forms
    There are no budget forms required for this application.

C. Submission Date and Time

    Your completed application must be received and validated by 
Grants.gov no later than 11:59:59 p.m. eastern time on the application 
deadline date. Applicants should carefully read the section titled 
``APPLICATION and SUBMISSION INFORMATION'' in the General Section 
regarding HUD's procedures pertinent to the submission of your 
application.

D. Intergovernmental Review

    Intergovernmental Review is not applicable to this program.

E. Funding Restrictions

1. Salary Cap
    Awards under this NOFA are subject to a cap of $65,000 per year per 
full time coordinator position funded. Under this NOFA, if applicants 
apply jointly, the $65,000 maximum amount that may be requested per 
position applies to up to one full time coordinator position for the 
application as a whole, not to each PHA separately.
2. Limitation on Renewal Funding Increases
    For renewal coordinator positions, PHAs will be limited to a three 
percent increase above the amount of the most recent award for the 
position unless a higher increase is approved by the local HUD field 
office after review of the PHA's written justification and at least 
three comparables that must be submitted to the field office by the PHA 
at the time they submit their FY2006 PH FSS Program Coordinator 
application to HUD. Examples of acceptable reasons for increases above 
three percent would be needed for a coordinator with higher level of 
skills or to increase the hours of a part time coordinator to full 
time. Total positions funded cannot exceed the maximum number of 
positions for which the PHA is eligible under this NOFA.
3. Ineligible Activities
    a. Funds under this NOFA may not be used to pay the salary of an 
FSS coordinator for a Housing Choice Voucher (HCV) FSS program. A PH 
FSS program coordinator may only serve Low Rent Public Housing families 
while the HCV FSS program serves only HCV families. The funding for HCV 
FSS program coordinators is being made available through a separate 
NOFA included in the FY2006 Super NOFA.
    b. Funds under this FSS NOFA may not be used to pay for services 
for FSS program participants.
    c. Funds under this FSS NOFA may not be used to pay for 
administrative activities.

F. Other Submission Requirements

    Electronic application submission is mandatory unless an applicant 
requests, and is granted, a waiver to the requirement. Procedures for 
obtaining a waiver are contained in the General

[[Page 11959]]

Section. If HUD grants a waiver, the applicant will be notified of the 
application submission requirements for paper copy applications. Paper 
copy applications must be received by the appropriate HUD office no 
later than the application deadline date to meet the deadline 
submission requirements.

V. Application Review Information

A. Criteria.

    The funds available under this NOFA are being awarded based on 
demonstrated performance. Applications are reviewed by the local HUD 
field office and the Grants Management Center to determine whether or 
not they are technically adequate based on the NOFA requirements. Field 
offices will provide to the GMC in a timely manner, as requested, 
information needed by the GMC to make its determination, such as the 
HUD-approved PH FSS program size of new applicants and information on 
the administrative capabilities of PHAs.

B. Reviews and Selection Process

1. Funding Priority Categories
    If HUD receives applications for funding greater than the amount 
made available under this NOFA, HUD will divide eligible applications 
into priority categories as follows:
    a. Funding Category 1--Applications from eligible renewal 
applicants designated ``high performer'' in their most recent PHAS 
review will be funded for continuation of previously funded eligible 
positions where the positions are currently filled or are in the 
process of being filled because of turnover.
    b. Funding Category 2--Eligible renewal applicants designated 
standard performers on the most recent PHAS review will be funded for 
continuation of previously funded eligible positions where the 
positions are currently filled or are in the process of being filled 
because of turnover.
    c. Funding Category 3--Eligible renewal applicants designated 
troubled performers on the most recent PHAS review will be funded for 
continuation of previously funded eligible positions where the 
positions are currently filled or are in the process of being filled 
because of turnover.
    d. Funding Category 4--Applications from eligible new applicants 
agreeing to implement an FSS program of at least 25 slots.
2. Order of Funding
    a. Funding Category 1. Starting with Funding Category 1, HUD will 
first determine whether there are sufficient monies to fund all 
eligible positions requested in the funding category. If available 
funding is not sufficient to fund all positions requested in the 
category, HUD will calculate for each eligible applicant, the 
applicant's Positive Escrow Percentage and Graduation Percentage and 
will use these percentages in making funding decisions. Definitions and 
a description of the calculation of the FSS Positive Escrow Percentage 
and Graduation Percentage are included in the Definitions Section 
(Section I.C.) of this NOFA.
    HUD will begin funding eligible Funding Category 1 applicants 
starting with the PHAs with the highest Positive Escrow Percentage 
first. If monies are not sufficient to fund all applicants with the 
same Positive Escrow Percentage, HUD will fund eligible applicants in 
order starting with those that have the highest Graduation Percentage 
first. If funding is not sufficient to fund all applicants with the 
same FSS Positive Escrow Percentage and/or Graduation Percentage, HUD 
will select among eligible applicants by PH FSS program size (number of 
approved slots) starting with eligible applicants with the largest PH 
FSS program size first.
    b. Funding Category 2. If funding remains after funding all Funding 
Category 1 applications, HUD will then process eligible Funding 
Category 2 applications. If there are not enough funds to fund all of 
Funding Category 2, HUD will use same criteria as above for Funding 
Category 1.
    c. Funding Category 3. If funding remains after funding all Funding 
Category 2 applications, HUD will then process eligible Funding 
Category 3 applications. If there are not enough funds to fund all of 
Funding Category 2, HUD will use the same criteria as above for Funding 
Category 1.
    d. Funding Category 4. If funding remains after funding all Funding 
Category 1, 2, and 3 applications, HUD will then process requests of 
eligible Funding Category 4 applicants. If there are not sufficient 
monies to fund all eligible positions requested, HUD will begin funding 
positions starting with applicants with the largest PH FSS program size 
(number of approved slots) first.
    3. Based on the number of applications submitted, the GMC may elect 
not to process applications for a funding priority category where it is 
apparent that there are insufficient funds available to fund any 
applications within the priority category.
4. Corrections to Deficient Applications
    The General Section of the SuperNOFA provides the procedures for 
corrections to deficient applications.
5. Unacceptable Applications
    After the technical deficiency correction period (as provided in 
the General Section), the GMC will disapprove applications that it 
determines are not acceptable for processing. Applications from 
applicants that fall into any of the following categories are 
ineligible for funding under this NOFA and will not be processed:
    a. An application submitted by an entity that is not an eligible 
applicant as defined under this PH FSS NOFA or an application that does 
not comply with the requirements of Sections IV.B., IV.C. and IV.F. of 
this NOFA.
    b. An application from an applicant that does not meet the fair 
housing and civil rights compliance requirements of the General Section 
of the SuperNOFA.
    c. An application from an applicant that does not comply with the 
prohibition against lobbying activities of this NOFA.
    d. An application from an applicant that has been debarred or 
otherwise disqualified from providing assistance under the program.
    e. An application that did not meet the application deadline date 
and timely receipt requirements as specified in this NOFA and the 
General Section.
    f. Applications will not be funded which do not meet the Threshold 
requirements identified in this NOFA and the General Section.

VI. Award Administration Information

A. Award Notices

    Successful applicants will receive an award letter from HUD. 
Successful applicants will be notified by letter and will receive 
instructions for the steps they must take to access funding and begin 
implementing grant activities. Applicants who are not funded will also 
receive letters via U.S. postal mail.

B. Administrative and National Policy Requirements

1. Environmental Impact
    This NOFA is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321) and not 
subject to compliance actions for related environmental authorities 
under 24 CFR 50.19(b)(4) and (12).
2. Applicable Requirements
    Grantees are subject to regulations and other requirements found 
in:

[[Page 11960]]

    a. OMB Circular A-87 ``Cost principles for State, Local, and Indian 
Tribal Governments'';
    b. OMB Circular A-133 ``Audits of States, Local Governments, and 
Non-Profit Organizations'';
    c. HUD Regulations 24 CFR Part 984 ``Section 8 and Public Housing 
Family Self-Sufficiency Program''; and
    d. HUD Regulations 24 CFR Part 85 ``Administrative Requirements for 
Grants and Cooperative Agreements to State, Local, and Federally 
Recognized Indian Tribal Governments''.
3. Economic Opportunities for Low- and Very Low-Income Persons (Section 
3)
    Section 3 requirements do not apply to this program.
4. Fair Housing and Civil Rights Laws
    Please see the General Section for more information.
5. Provision of Services to Individuals With Limited English 
Proficiency (LEP)
    Successful applicants and grantees must seek to provide access to 
program benefits and information to LEP individuals through translation 
and interpretive services in accordance with HUD's LEP Recipient 
Guidance 68 FR 70968.
6. Communications
    Successful applicants should ensure that notices of and 
communications during all training sessions and meetings shall be 
provided in a manner that is effective for persons with hearing, visual 
and other communication-related disabilities consistent with Section 
504 of the Rehabilitation Act of 1973. See 24 CFR Section 8.6.
7. HUD's Strategic Goals
    HUD is committed to ensuring that programs result in the 
achievement of HUD's strategic mission. The FSS program and this FSS 
NOFA support the Department's strategic goals of helping HUD-assisted 
renters make progress toward self-sufficiency by giving funding 
preference to PHAs whose FSS programs show success in moving families 
to economic self-sufficiency. You can find out about HUD's Strategic 
Framework and Annual Performance Plan at http://www.hud.gov/offices/cfo/reports/cforept.cfm3.
8. HUD Policy Priorities
    This NOFA supports the HUD policy priority of helping HUD-assisted 
renters made progress toward self-sufficiency. In this NOFA, funding 
priority is given to those PHA applicants that demonstrate that their 
FSS families have increased their earned income since enrolling in FSS. 
See Section V.B. of the General Section for a full discussion of HUD's 
policy priorities.

C. Reporting

    Successful applicants must report activities of their FSS 
enrollment, progress and exit activities of their FSS program 
participants through required submissions of the Form HUD-50058 or as 
otherwise agreed for MTW PHAs. HUD's assessment of the accomplishments 
of the FSS programs of grantees funded under this NOFA will be based in 
part on Public Housing Information Center (PIC) system data obtained 
from the Form HUD-50058. MTW PHAs that do not report to HUD on the Form 
HUD-50058 will be asked to submit an annual report to HUD with the same 
information on FSS program activities that is provided to HUD by non-
MTW PHAs via the Form HUD-50058. An applicant is also required to 
submit a completed Logic Model showing accomplishments against proposed 
outputs and outcomes as part of their annual reporting requirement to 
HUD. Grantees shall use quantifiable data to measure performance 
against goals and objectives outlined in their Logic Model. Semi-annual 
Performance Reports consisting of the updated Logic Model are due to 
the field office on July 30 and January 31 of each year. For FY2006, 
HUD is considering a new concept for the Logic Model. The new concept 
is a Return on Investment statement. HUD will be publishing a separate 
notice on the ROI concept. In addition, 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, funded 
recipients should use Form HUD-27061, Racial and Ethnic Data Reporting 
Form. The HUD-50058 used in concurrence with the PIC Data system is a 
comparable form. Applicants that receive awards from HUD should be 
prepared to report on additional measures that HUD may designate at 
time of award.

D. Debriefings

    The applicant may request an applicant debriefing. Beginning not 
less than 30 days after the awards for assistance are publicly 
announced in the Federal Register and for at least 120 days after that 
announcement, HUD will, upon receiving a written request, provide a 
debriefing to the requesting applicant. (See Section VI.A. of the 
General Section for additional information regarding a debriefing.) 
Applicants requesting to be debriefed must send a written request to: 
Iredia Hutchinson, Director; Grants Management Center; U.S. Department 
of Housing and Urban Development, 501 School Street, SW., Suite 800; 
Washington, DC 20024.

VII. Agency Contacts

A. For Technical Assistance

    For answers to your questions, you may contact the Public and 
Indian Housing Resource Center at 800-955-2232. Prior to the 
application deadline, staff at the numbers given above will be 
available to provide general guidance, but not guidance in actually 
preparing the application. Following selection, but prior to award, HUD 
staff will be available to assist in clarifying or confirming 
information that is a prerequisite to the offer of an award by HUD. 
Persons with hearing or speech impairments may use the Grants.gov 
helpdesk e-mail.

B. Satellite Broadcast

    HUD will hold an information broadcast via satellite for potential 
applicants to learn more about the PH FSS program and preparation of an 
application. For more information about the date and time of this 
broadcast, you should consult the HUD Web site at www.hud.gov.

VIII. Other Information

A. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2577-0229. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average forty hours per respondent for the application. This includes 
the time for collecting, reviewing, and reporting the data for the 
application. 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.

[[Page 11961]]

B. Public Access, Documentation, and Disclosure.

    See Section VIII. F. of the General Section.
BILLING CODE 4210-01-P

[[Page 11962]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.025


[[Page 11963]]



Self-Help Homeownership Opportunity Program (SHOP) Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title: Self-Help Homeownership Opportunity 
Program (SHOP).
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-06. The Office of Management and Budget (OMB) paperwork approval 
number is 2506-0157.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: Self-Help 
Homeownership Opportunity Program. The CFDA number is 14.247.
    F. Application Deadline: The application deadline date is May 24, 
2006.
    G. Optional, Additional Overview Content Information:
    SHOP funds are awarded to national and regional nonprofit 
organizations and consortia demonstrating experience in administering 
self-help housing programs in which the homebuyers contribute a 
significant amount of sweat-equity toward construction or 
rehabilitation of the dwelling. The amount available for SHOP in Fiscal 
Year (FY) 2006 is approximately $20,000,000.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    SHOP funds are intended to facilitate and encourage innovative 
homeownership opportunities on a national geographically diverse basis 
through self-help housing programs that require a significant amount of 
sweat-equity by the homebuyer toward the construction or rehabilitation 
of the dwelling.
    SHOP programs are administered by national and regional nonprofit 
organizations and consortia. Units developed with SHOP funds must be 
decent, safe, and sanitary non-luxury dwellings and must be made 
available to eligible homebuyers at prices below the prevailing market 
prices. Eligible homebuyers are low-income individuals and families 
(i.e., those whose annual incomes do not exceed 80 percent of the 
median income for the area, as established by HUD) who would otherwise 
be unable to purchase a dwelling but for the provision of sweat equity. 
Housing assisted under this Notice of Funding Availability (NOFA) must 
involve labor contributed by homebuyers and volunteers in the 
construction of dwellings and other activities that involve the 
community in the project.

B. Authority

    Funding made available under SHOP is authorized by Section 11 of 
the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
note) (the ``Extension Act'').

II. Award Information

    Approximately $20,000,000 will be available for this program in FY 
2006. Any unobligated funds from previous competitions or additional 
funds that may become available due to deobligation or recapture from 
previous awards or budget transfers may be added to the FY 2006 
appropriation to fund applications submitted in response to this NOFA. 
Awards will be made to successful applicants in the form of a grant. 
Grant funds must be expended within 24 months of the date that they are 
first made available for draw-down in a line of credit established by 
HUD for the grantee, except that grant funds provided to affiliates 
that develop five or more units must be expended within 36 months.

III. Eligibility Information

A. Eligible Applicants

    You must be a national or regional nonprofit public or private 
organization or consortium that has the capacity and experience to 
provide or facilitate self-help housing homeownership opportunities. 
Your organization or consortium must undertake eligible SHOP activities 
directly and/or provide funding assistance to your local affiliates to 
carry out SHOP activities. You must propose in your application to use 
a significant amount of SHOP funds in at least two states. Affiliates 
must be located within the regional organization's or consortium's 
service area.
    A national organization is defined as an organization that carries 
out self-help housing activities or funds affiliates that carry out 
self-help housing activities on a national scope. A regional 
organization is defined as an organization that carries out self-help 
housing activities or funds affiliates that carry out self-help housing 
activities on a regional scope. A regional area is a geographic area, 
such as the Southwest or Northeast, that includes at least two states. 
The states in the region need not be contiguous, and the service area 
of the organization need not precisely conform to state boundaries.
    A consortium is defined as two or more nonprofit organizations 
located in at least two states that individually have the capacity and 
experience to carry out self-help housing activities or fund affiliates 
that carry out self-help housing activities on a national or regional 
scope and enter into an agreement to submit a single application for 
SHOP funding on a national or regional basis. The consortium must 
propose to use a significant amount of SHOP funds in each state 
represented in the consortium. All consortium members must receive SHOP 
funds. One organization must be designated as the lead entity. The lead 
entity must submit the application and, if selected for funding, 
execute the SHOP Grant Agreement with HUD and assume responsibility for 
the grant on behalf of the consortium in compliance with all program 
requirements.
    A consortium agreement, executed and dated by all consortium 
members for the purpose of applying for and using FY 2006 SHOP funds, 
must be submitted with your application. A consortium's application 
must be a single integrated document that demonstrates the consortium's 
comprehensive approach to self-help housing. All consortium members 
must be identified in your application. The integrated application must 
reflect all consortium members' programs as a single program and may 
only briefly summarize the individual consortium members' past 
experiences in factor 1. All other components of the application must 
reflect the overall consortium program design. Individual program 
designs for consortium members or affiliates within the integrated 
document will not be considered by HUD. Upon being funded, the lead 
entity must enter into a separate agreement with each consortium 
member. The agreement must include the requirements of the FY 2006 SHOP 
Grant Agreement between HUD and the consortium and set forth the 
individual consortium member's responsibilities for compliance with 
HUD's 2006 SHOP program.
    An affiliate is defined as:
    (1) A local public or private nonprofit self-help housing 
organization which is a subordinate organization (i.e., chapter, local, 
post, or unit) of a central organization and covered by the group 
exemption letter issued to the central organization under Section 
501(c)(3) of the Internal Revenue Code; or
    (2) A local public or private nonprofit self-help housing 
organization with which the applicant has an existing relationship 
(e.g., the applicant has provided technical assistance or funding to 
the local self-help housing organization); or

[[Page 11964]]

    (3) A local public or private nonprofit self-help housing 
organization with which the applicant does not have an existing 
relationship, but to which the applicant will provide necessary 
technical assistance and mentoring as part of funding under the 
application.
    You must carry out eligible activities or you must enter into an 
agreement to fund affiliates to carry out eligible activities. If you 
are a consortium, each of your affiliates must be linked to an 
individual consortium member.
    Your application may not propose to fund any affiliate or 
consortium member that is also included in another SHOP application. 
You must ensure that any affiliate or consortium member under your FY 
2006 application is not also seeking FY 2006 SHOP funding from another 
SHOP applicant. If an affiliate applies for funds through more than one 
applicant, it may be disqualified for any funding.

B. Cost Sharing or Matching

    There is no match requirement for the SHOP funds. However, you are 
expected to leverage resources for the construction of self-help 
housing assisted with SHOP. Failure to provide documentation of 
leveraged resources that meet the submission requirements for firm 
commitments as stated in factor 4 will result in a lower application 
score.

C. Other

1. Eligible Activities
    The costs of eligible activities may be incurred by the applicant 
(and by affiliates, if permitted by the applicant) after the 
publication date of the NOFA and charged to the SHOP grant, provided 
that the applicant and affiliates comply with the requirements of this 
NOFA (including relocation and environmental review requirements) and 
costs are included in the application. Applicants and affiliates incur 
costs at their own risk, because applicants that do not receive a SHOP 
grant cannot be reimbursed or reimburse affiliates.
    Eligible activities are:
    a. Land acquisition, including financing and closing costs, which 
may include reimbursing an organization, consortium, or affiliate, upon 
approval of any required environmental review, for non-grant amounts 
expended by the organization, consortium, or affiliate to acquire land 
before completion of the review;
    b. Infrastructure improvements, including installing, extending, 
constructing, rehabilitating, or otherwise improving utilities and 
other infrastructure, including removal of environmental hazards; and
    c. Administration, planning, and management development, including 
the costs of general management, oversight, and coordination of the 
SHOP grant, staff and overhead costs of the SHOP grant, costs of 
providing information to the public about the SHOP grant, costs of 
providing civil rights training to local affiliates as well as any 
expenses involved in affirmatively furthering fair housing, and 
indirect costs (such as rent and utilities) of the grantee or affiliate 
in carrying out the SHOP activities.
2. Threshold Requirements
    HUD will not consider an application from an ineligible applicant. 
An applicant must meet all of the applicable threshold requirements 
listed in the General Section published on January 20, 2006, and the 
SHOP threshold requirements described below:
    a. Organization and Eligibility. You must be eligible to apply 
under SHOP (see Section III.A.).
    b. Non-Profit Status. You must describe how you qualify as an 
eligible applicant and provide evidence of your public or private 
nonprofit status, such as a current Internal Revenue Service (IRS) 
ruling that your organization is exempt from taxation under Section 
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986. If you are 
a consortium, each consortium member must submit evidence of its 
nonprofit status to the lead entity for inclusion in the consortium's 
application package.
    c. Consortium Agreement. If you are a consortium, each consortium 
member must enter into and sign a consortium agreement for the purpose 
of applying for SHOP funds and carrying out SHOP activities. Your 
consortium agreement must be submitted as an appendix to your 
application.
    d. Amount. The amount of SHOP funds requested must be sufficient to 
complete a minimum of 30 self-help housing units and may not exceed an 
average investment of $15,000 per unit.
    e. Homebuyer Eligibility. Eligible homebuyers are low-income 
individuals and families (i.e., those whose incomes do not exceed 80 
percent of the median income for the area, as established by HUD). You 
must specify the definition of ``annual income'' to be used in your 
proposed program. You may use one of the following three definitions of 
``annual income'' to determine whether a homebuyer is income eligible 
under SHOP:
    (1) ``Annual income'' as defined at 24 CFR 5.609; or
    (2) ``Annual income'' as reported under the Census long-form for 
the most recent available decennial Census; or
    (3) ``Adjusted gross income'' as defined for purposes of reporting 
under the IRS Form 1040 series for individual federal annual income tax 
purposes.
    You may also adopt or develop your own definition of annual income 
for use in determining income eligibility under SHOP subject to review 
and approval by HUD. You must include your definition of ``annual 
income'' in your Program Summary.
    f. Experience. You must demonstrate successful completion of at 
least 30 self-help homeownership units in a national or regional area 
within the 24-month period immediately preceding the publication of 
this NOFA. For dwellings to qualify as self-help homeownership units, 
the homebuyers must have contributed a significant amount of sweat-
equity toward the construction as set forth in this section.
    g. Sweat Equity. Your program must require homebuyers to contribute 
a minimum of 100 hours of sweat equity toward the construction or 
rehabilitation of their own homes and/or the homes of other homebuyers 
participating in the self-help housing program. In the case of a 
household with only one adult, the requirement is 50 hours of sweat 
equity toward the construction of these homes. Sweat equity includes 
training for construction on the dwelling units, but excludes homebuyer 
counseling and home maintenance training. All homebuyers must meet 
these minimum hourly sweat equity requirements; however, grantees must 
permit reasonable accommodations for persons with disabilities in order 
for them to meet the hourly requirements. For example, homebuyers with 
disabilities may work on less physical tasks or administrative tasks to 
meet this requirement or a volunteer(s) may enter into an agreement to 
substitute for the disabled person.
    h. Community Participation. Your program must involve community 
participation in which volunteers assist in the construction or 
rehabilitation of dwellings. Volunteer labor is work performed by an 
individual without promise, expectation, or compensation for the work 
rendered. For mutual self-help housing programs that are assisted by 
the U.S. Department of Agriculture's Rural Housing Services/Rural 
Development under Section 523 of the Housing Act of 1949 (7 CFR Part 
1944, subpart I) or which have a program design similar to the Section 
523 program, the work by each participating family on other 
participating families'

[[Page 11965]]

homes may count as volunteer labor. A mutual self-help housing program 
generally involves 4 to 10 participating families organized in a group 
to use their own labor to reduce the total construction cost of their 
homes and complete construction work on their homes by an exchange of 
labor with one another.
    i. Eligible Activities. You must use the SHOP funds for eligible 
activities (see Sections III.A. and IV.E.) and carry out the activities 
yourself or fund affiliates to carry out the activities.
3. Threshold Submission Requirements
    In order for your application to be rated and ranked, all threshold 
requirements must be met. Threshold requirements 2(d) through (i) above 
do not require separate submissions, but must be addressed under the 
submission requirements for the rating factors listed below in Section 
V, Application Review Information Criteria.
4. Other Requirements
    Other requirements applicable to the SHOP program are set forth in 
``Additional Nondiscrimination and Other Requirements'' of the General 
Section. The following requirements also apply to SHOP:
    a. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). SHOP recipients must comply with Section 3 of the Housing 
and Urban Development Act of 1968 (Section 3), 12 U.S.C. 170lu 
(Economic Opportunities for Low- and Very Low-Income Persons in 
Connection with Assisted Projects), and the HUD regulations at 24 CFR 
part 135, including the reporting requirement of subpart E. Section 3 
requires recipients to ensure that to the greatest extent feasible, 
training, employment, and other economic opportunities will be directed 
to low- and very-low income persons, particularly those who are 
recipients of government assistance for housing, and to business 
concerns that provide economic opportunities to low- and very-low 
income persons.
    b. Real Property Acquisition and Relocation. SHOP projects are 
subject to the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, as amended (Uniform Act or URA) (42 
U.S.C. 4601), and the government-wide implementing regulations issued 
by the U.S. Department of Transportation at 49 CFR Part 24. The Uniform 
Act is a federal law that establishes minimum standards for federally-
funded programs and projects that require the acquisition of real 
property (real estate) or displace persons from their homes, 
businesses, or farms. The Uniform Act's protections and assistance 
apply to the acquisition, rehabilitation, or demolition of real 
property for federal or federally-funded projects.
    SHOP grantees and affiliates must comply with all applicable 
Uniform Act requirements in order to receive SHOP funds for their 
programs and projects; non-compliance could jeopardize SHOP funding. 
Real property acquisitions for a SHOP-assisted program or project 
conducted before completion of an environmental review and HUD's 
approval of a request for release of funds and environmental 
certification are also subject to the Uniform Act. SHOP grantees and 
affiliates must ensure that all such real property acquisitions comply 
with applicable Uniform Act requirements.
    Generally, real property acquisitions conducted without the threat 
or use of eminent domain, commonly referred to as ``voluntary 
acquisitions,'' must satisfy the applicable requirements and criteria 
of 49 CFR 24.101(b)(1) through (5). Evidence of compliance with these 
requirements must be maintained by the affiliate and submitted to and 
maintained by the SHOP grantee. It is also important to note that 
tenants who occupy property which may be acquired through voluntary 
means must be fully informed as to their eligibility for relocation 
assistance. This includes notifying such tenants of their potential 
eligibility when negotiations are initiated, notifying them if they 
become fully eligible, and, in the event the purchase of the property 
will not occur, notifying them that they are no longer eligible for 
relocation benefits. Evidence of compliance with these requirements 
must be maintained by the affiliate and submitted to and maintained by 
the SHOP grantee.
    Additional information and resources pertaining to real property 
acquisition and relocation for HUD-funded programs and projects are 
available on HUD's Real Estate Acquisition and Relocation Web site at 
http://www.hud.gov/relocation. You will find applicable laws and 
regulations, policy and guidance, publications, training resources, and 
a listing of HUD contacts if you have questions or need assistance.
    c. Environmental Requirements. The environmental review 
requirements for SHOP supersede the environmental requirements in the 
General Section. All SHOP assistance is subject to the National 
Environmental Policy Act of 1969 and related federal environmental 
authorities and regulations at 24 CFR part 58. SHOP grant applicants 
are cautioned that no activity or project may be undertaken, or federal 
or non-federal funds or assistance committed, if the project or 
activity would limit reasonable choices or could produce an adverse 
environmental impact until all required environmental reviews and 
notifications have been completed by a unit of general local 
government, tribe, or state and until HUD approves a recipient's 
request for release of funds under the environmental provisions 
contained in 24 CFR part 58. Notwithstanding the preceding sentence, in 
accordance with section 11(d)(2)(A) of the Housing Opportunity 
Extension Act of l996 and HUD Notice CPD-01-09, an organization, 
consortium, or affiliate may advance non-grant funds to acquire land 
before completion of an environmental review and HUD's approval of a 
request for release of funds and environmental certification. Any 
advances to acquire land prior to such approval are made at the risk of 
the organization, consortium, or affiliate, and reimbursement from SHOP 
funds for such advances will depend on the result of the environmental 
review.
    d. Statutory and Program Requirements. SHOP is governed by Section 
11 of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 
12805 note) (the Extension Act), and this NOFA. There are no program 
regulations. You must comply with all statutory requirements applicable 
to SHOP as cited in Section I, Funding Opportunity Description, and the 
program requirements cited in this NOFA. Pursuant to these 
requirements, you must:
    (1) Develop, through significant amounts of sweat-equity by each 
homebuyer and volunteer labor, at least 30 dwelling units at an average 
cost of no more than $15,000 per unit of SHOP funds for land 
acquisition and infrastructure improvements;
    (2) Use your grant to leverage other sources of funding, including 
private or other public funds, to complete construction or 
rehabilitation of the housing units;
    (3) Develop quality dwellings that comply with local building and 
safety codes and standards that will be made available to homebuyers at 
prices below the prevailing market price;
    (4) Schedule SHOP activities to expend all grant funds awarded and 
substantially fulfill your obligations under your grant agreement, 
including timely development of the appropriate number of dwelling 
units. Grant funds must be expended within 24 months of the date that 
they are first made available for draw-down in a line of credit 
established by HUD for the

[[Page 11966]]

grantee, except that grant funds provided to affiliates that develop 
five or more units must be expended within 36 months; and
    (5) Not require a homebuyer to make an up-front financial 
contribution to a housing unit other than cash contributed for down 
payment of closing cost at the time of acquisition.

IV. Application and Submission Information

A. Address To Request Application Package

    This NOFA contains all the information necessary for national and 
regional nonprofit organizations and consortia to submit an application 
for SHOP funding. This section describes how you may obtain application 
forms and additional information about the SHOP program NOFA. Copies of 
the published SHOP NOFA and related application forms for this NOFA may 
be downloaded from the grants.gov website at www.grants.gov/Apply. If 
you have difficulty accessing the information, you may receive customer 
support from Grants.gov by calling its help line at (800) 518-GRANTS or 
sending an email to [email protected]. If you do not have Internet 
access and you need to obtain a copy of this NOFA, you may contact 
HUD's NOFA Information Center toll-free at (800) HUD-2209, or hearing 
and speech challenged persons may call (800) HUD-2209 (TTY).
    1. Application Kit. There is no application kit for this program. 
All the information you need to apply is contained in this NOFA and 
available at www.grants.gov/Apply. The NOFA forms are available to be 
downloaded from www.grants.gov/Apply. Pay attention to the submission 
requirements and format for submission specified for this NOFA to 
ensure that you have submitted all required elements of your 
application.
    The published Federal Register document is the official document 
that HUD uses to solicit applications. Therefore, if there is a 
discrepancy between any materials published by HUD in its Federal 
Register publications and other information provided in paper copy, 
electronic copy, or at www.grants.gov, the Federal Register publication 
prevails. Be sure to review your application submission against the 
requirements in the Federal Register for this NOFA.
    2. Guidebook and Further Information. See the General Section.

B. Content and Form of Application Submission

    You must meet all application and submission requirements described 
in the General Section. Your application should consist of the items 
listed in the section below called Assembly Format and Content. HUD's 
standard forms can be found in the application found on Grants.gov or 
HUD's website at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
1. Page Limits
    There are page limits for responses to the five rating factors. A 
national or regional organization is limited to 50 pages of narrative 
to respond to the five rating factors. A consortium is permitted up to 
10 additional pages to address the past experiences of its individual 
consortium members. Required appendices, forms, certifications, 
statements, and assurances are not subject to the page limitations. All 
pages must be numbered sequentially 1 through 50 or 60, for factors 1 
through 5. Your application may contain only the narrative statements 
that address the five rating factors and the required forms, 
certifications, assurances, and appendices listed in Assembly Format 
and Content below. In responding to the five factors, information must 
be included in your narrative response to each factor, unless this NOFA 
states that it should be included as an appendix. If you are submitting 
material using the fax method described in the General Section, the 
narrative should refer to the documents being faxed as part of your 
narrative response to the factor. Any supplemental information not 
required in the narratives or appendices requested by HUD that further 
explains information required in the five factors will not be reviewed 
for consideration in the scoring of the application.
2. Assembly Format and Content
    Your FY 2006 application will be comprised of an Application 
Overview, Narrative Statements (rating factors), Forms, and Appendices. 
In order to receive full consideration for funding, you should use the 
following checklist to ensure that all requirements are addressed and 
submitted with your electronic application.
    a. Application Overview (Not subject to the page limitations)

    ---- SF-424, Application for Federal Assistance (signed by the 
Authorized Organization Representative (AOR) who is legally authorized 
to submit the application on behalf of the applicant and has been 
approved by the eBusiness Point of Contact to submit the application 
via Grants.gov. (See the General Section.)
    ---- SF-424 Supplement, Survey on Ensuring Equal Opportunity for 
Applicants.
    ---- Self-Help Housing Organization Qualification--Narrative 
describing qualification as an eligible applicant and Evidence of 
Nonprofit Tax Exempt Status (in accordance with Section III.C. of this 
NOFA).
    ---- Consortium Agreement, if applicable.
    ---- Program Summary (including definition of ``annual income'').
    b. Narrative Statements Addressing: (Subject to the page 
limitations described above.)

    ---- Factor 1--Capacity of the Applicant and Relevant 
Organizational Staff. (including organizational chart).
    ---- Factor 2--Need/Extent of the Problem.
    ---- Factor 3--Soundness of Approach.
    ---- Factor 4--Leveraging Resources.
    ---- Factor 5--Achieving Results and Program Evaluation.

    c. Forms, Certifications, and Assurances: (Not subject to the page 
limitations.)
    ---- HUD-424CB, Grant Application Detailed Budget.
    ---- HUD-424-CBW, Grant Application Detailed Budget Worksheet.
    ---- SF-LLL, Disclosure of Lobbying Activities, as applicable.
    ---- HUD-2880, Applicant/Recipient Disclosure/Update Report.
    ---- HUD-2990, Certification of Consistency with the RC/EZ/EC-II 
Strategic Plan.
    ---- HUD-96011, Facsimile Transmittal (required for electronic 
submissions of third party documents).
    ---- HUD-2994-A, You Are Our Client Grant Applicant Survey 
(optional)
    ---- HUD-96010, Program Outcome Logic Model.
    d. Appendices: (Not subject to the page limitations.)
    ---- A copy of your code of conduct (see the General Section).
    ---- Leveraging documentation--firm commitment letters (see factor 
4).
    ---- Survey of potential affiliates, if applicable (see factor 2).
    ---- Demonstration of past performance for new applicants (see 
factor 5).
    ---- HUD-27300, Questionnaire for HUD's Initiative on Removal of 
Regulatory Barriers (see factor 3).
    ---- Evaluative criteria for Removal of Regulatory Barriers to 
Affordable Housing in affiliate selection process, if applicable (see 
factor 3).
    e. Certifications and Assurances. Applicants are placed on notice 
that by signing the SF-424 cover page noted above in 2.a., Application 
Overview, the applicant is certifying to all information

[[Page 11967]]

described in Section IV.B.2 (``Certifications and Assurances'') in the 
General Section.

C. Submission Date and Time

    The application deadline date is May 24, 2006. The electronic 
application must be received and validated by Grants.gov by the 
application deadline date. If an applicant is granted a waiver to the 
electronic application submission requirement, the application must be 
received at the appropriate HUD Office(s) by the application deadline 
date (see General Section).

D. Intergovernmental Review

    Executive Order 12372 review does not apply to SHOP.

E. Funding Restrictions

1. Administrative Costs
    Administrative costs may not exceed 20 percent of any SHOP grant. 
Indirect costs may only be charged to the SHOP grant under a cost 
allocation plan prepared in accordance with OMB Circular A-122.
2. Pre-Agreement Costs
    After the publication date of the NOFA, but before the effective 
date of the SHOP Grant Agreement, an applicant and affiliates, if 
permitted by the applicant, may incur costs that may be charged to its 
SHOP grant provided the costs are eligible (see Section III.C.1.) and 
in compliance with the requirements of this NOFA (including relocation 
and environmental review requirements) and the application. Applicants 
and affiliates incur costs at their own risk, because applicants that 
do not receive a SHOP grant cannot be reimbursed or reimburse 
affiliates.
3. Ineligible Costs
    Costs associated with the rehabilitation, improvement, or 
construction of dwellings and any other costs not identified in Section 
III.C.1. are not eligible uses of program funds. Acquiring land for 
land banking purposes (i.e., holding land for an indefinite period) is 
an ineligible use of SHOP funds. Acquisition undertaken by the 
applicant or its affiliate before the publication date of the NOFA is 
not an eligible cost. SHOP funds may not be expended on a property 
unless its acquisition by the grantee, subgrantee, or its affiliates 
complies with the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA). These requirements also apply 
to the reimbursement of pre-agreement costs (see Section IV.E.2).

F. Other Submission Requirements

    You must meet all submission requirements described in the General 
Section. Refer to the General Section for detailed submission 
instructions, including methods and deadlines for submission.
    3. No Facsimiles or Videos. HUD will not accept an entire 
application sent by facsimile (fax). However, third-party documents or 
other materials sent by facsimile in compliance with the submission 
requirements and received by the application submission date will be 
accepted. Facsimile corrections to technical deficiencies will not be 
accepted. Videos submitted as part of an application will not be 
viewed.
    4. Applications must be received and validated by Grants.gov by the 
application deadline date.

V. Application Review Information

A. Criteria

Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (25 Points)
    This factor examines the extent to which you, as a single applicant 
or consortium (including individual consortium members), have the 
experience and organizational resources necessary to carry out the 
proposed activities effectively and in a timely manner. Any applicant 
that does not receive at least 15 points under this factor will not be 
eligible for funding.
    In evaluating this factor, HUD will consider your recent and 
relevant experience in carrying out the activities you propose 
(including experience in developing accessible/visitable housing), and 
your administrative and fiscal management capability to administer the 
grant, including the ability to account for funds appropriately. All 
applicants, including individual consortium members, must have capacity 
and experience in administering or facilitating self-help housing. If 
you are sponsoring affiliate organizations that do not have experience 
in developing self-help housing, HUD will assess your organization's 
experience in providing technical assistance and the ability to mentor 
new affiliates.
Submission Requirements for Rating Factor 1
    a. Past Experience (10 points). You must describe the past 
experience of your organization and key staff in carrying out self-help 
housing activities (specify the time frame during which these 
activities occurred) that are the same as, or similar to, the 
activities you propose for funding, and demonstrate that you have had 
reasonable success in carrying out and completing those activities. You 
must include the average number of sweat equity hours provided per 
homebuyer family, and the average number of volunteer labor hours 
provided per unit. You may demonstrate reasonable success by showing 
that your previous activities were carried out as proposed, consistent 
with the time frame you proposed for completion of all work.
    b. Management Structure (12 points). You must provide a description 
of your organization's or consortium's management structure, including 
an organizational chart. You must also describe your key staff and 
their specific roles and responsibilities for day-to-day management of 
your proposed SHOP program. You must indicate if you will or will not 
be working with organizations that are inexperienced in carrying out 
self-help housing and describe how you will provide technical 
assistance and mentor these organizations to develop capacity either 
directly or indirectly.
    c. Experience Developing Accessible Housing (3 points). You must 
demonstrate your experience in and ability to construct and alter self-
help housing by describing the kinds of features that you have used to 
design homes in accordance with universal design and visitability 
standards, or otherwise make homes physically accessible. You must 
provide data on the number of accessible units you have completed and 
the time frame during which units were constructed and/or altered.
Rating Factor 2: Need/Extent of the Problem (10 Points)
    This factor examines the extent to which you demonstrate an urgent 
need for SHOP funds in your proposed target areas based on the need for 
affordable housing, using quality data with source to substantiate that 
need.
    The purpose of this factor is to make sure that funding is provided 
where a need for funding exists. Under this factor, you must identify 
the community need or needs that your proposed SHOP activities are 
designed to address. If you plan to select some or all affiliates after 
application submission, you must demonstrate how the selection of 
affiliates will help to address the needs identified in the proposed 
target areas.
Submission Requirements for Rating Factor 2
    Extent of Need for Affordable Housing (10 points). You must 
establish the need for affordable housing and the specific

[[Page 11968]]

need for SHOP funds in the communities or areas in which your proposed 
activities will be carried out. You must specifically address the need 
for acquisition and/or infrastructure assistance for self-help housing 
activities in these identified areas and how your proposed SHOP 
activities meet these needs. Also, to the extent information is 
available, you must address the need for accessible homes in the target 
area(s); evidence of housing discrimination in the target area(s); and 
any need for housing shown in the local Analysis of Impediments to Fair 
Housing Choice, if appropriate. Applicants that select affiliates after 
application submission must submit a list of affiliates they surveyed 
and upon which they are basing their need for SHOP funding, as well as 
the specific criteria to be used to select communities or projects 
based on need.
    In reviewing applications, HUD will consider the extent, quality, 
and validity of the information and data submitted that addresses the 
need for affordable housing in the target area. Such information must 
include:
    a. Housing market data in the proposed target areas including, but 
not limited to: Low-income, minority, and disability populations; 
number of home sales and median sales price; and homeownership, rental, 
and vacancy rates. This information can be obtained from state or 
regional housing plans, the American Housing Survey, the United States 
Census, Home Mortgage Disclosure Act data or other local data sources, 
such as Consolidated Plans, comprehensive plans, local tax assessor 
databases, or relevant realtor information. Data included in your 
application must be recent and specific to your proposed target areas; 
and
    b. Housing problems in the proposed target areas such as 
overcrowding, cost burden, housing age or deterioration, low 
homeownership rate (especially among minority families, families with 
children, and families with members with disabilities), and lack of 
adequate infrastructure or utilities.
Rating Factor 3: Soundness of Approach (45 Points)
    This factor examines the quality and soundness of your plan to 
carry out a self-help housing program. In evaluating this factor HUD 
will consider the areas described below:
    a. Your proposed use of SHOP funds, including the number of units 
and the type(s) of housing to be constructed, and the use of sweat 
equity and volunteer labor; your schedule for expending funds and 
completing construction, including interim milestones; the proposed 
budget and cost effectiveness of your program; your plan to reach all 
potentially eligible homebuyers, including those with disabilities and 
others least likely to apply; and your procedures for meeting section 3 
requirements.
    b. How your planned activities further the five HUD policy 
priorities that apply specifically to SHOP in FY 2006 as described in 
the General Section. The policy priorities for SHOP are:
    (1) Providing increased homeownership opportunities for low- and 
moderate-income persons, persons with disabilities, the elderly, 
minorities, and families with limited English proficiency;
    (2) Encouraging accessible design features: Visitability in new 
construction and substantial rehabilitation and universal design;
    (3) Providing full and equal access to grassroots, faith-based, and 
other community-based organizations in HUD program implementation;
    (4) Participation in Energy Star; and
    (5) Removal of regulatory barriers to affordable housing.
    c. How you plan to meet section 3 requirements for jobs and 
training and contracting opportunities for SHOP-funded infrastructure 
improvements.
Submission Requirements for Rating Factor 3
    Activities. Describe the types of activities that you propose to 
fund with SHOP and the proposed number of units to be assisted with 
SHOP funding, the housing type(s) (single family or multifamily, or 
both) to be assisted and the form of ownership (fee simple, 
condominium, cooperative, etc.) you propose to use.
    a. Sweat Equity and Volunteer Labor (7 points). Describe your 
program's requirements for sweat equity and volunteer labor (i.e., 
types of tasks and numbers of hours required for both sweat equity and 
volunteer labor) and how you will provide reasonable accommodations for 
persons with disabilities by identifying sweat equity assignments that 
can be performed by the homebuyer regardless of the disability, such as 
doing administrative, clerical, organizational, or other office work or 
minor tasks on site. Reasonable accommodation can include sweat equity 
by the homebuyer that can be performed regardless of the disability or 
substitution of a non-homebuyer designee(s) to perform the sweat equity 
assignments on behalf of the homebuyer. Volunteers substituting for 
disabled homebuyers must enter into an agreement to complete the work 
on behalf of the homebuyers. Include the dollar value of both the sweat 
equity and volunteer labor contributions and specify the amount by 
which these contributions will reduce the sales price to the homebuyer. 
Applicants showing a larger reduction of the sales price as a result of 
the homebuyer's sweat equity and volunteer labor contributions will 
receive a higher score.
    b. Funds Expenditure, Construction, and Completion Schedules (7 
points). Submit a construction and completion schedule that expends 
SHOP funds and substantially fulfills your obligations if you are 
funded. You must provide a definition of ``substantially fulfills'' by 
specifically stating the percentage or number of properties that you 
propose to be completed and conveyed to homebuyers at the time all 
grant funds are expended. Your construction schedule must include the 
number of dwelling units to be completed within 24 months or, in the 
case of affiliates that develop five or more units, within 36 months, 
and a time frame for completing any unfinished units.
    Your schedule must also include (1) milestones or benchmarks 
against which HUD can measure your progress in selecting local 
affiliates if they are not specifically identified in the application, 
(2) expending funds, and (3) completing acquisition, infrastructure, 
and housing construction activities within these schedules. These 
milestones or benchmarks should be established at reasonable intervals 
(e.g., monthly, quarterly).
    c. Budget (7 points). Provide a detailed budget including a 
breakdown for each proposed task and each budget category (acquisition, 
infrastructure improvements, and administration) funded by SHOP in the 
HUD-424-CB and 424-CBW. If SHOP funds will be used for administration 
of your grant, you must include the cost of monitoring consortium 
members and affiliates at least once during the grant period. Your 
detailed budget must also include leveraged funding to cover costs of 
completing construction of the proposed number of units. Budget amounts 
on the HUD-424-CB and 424-CBW must agree with amounts stated elsewhere 
in the application.
    d. Cost Effective (6 points). Demonstrate the extent to which the 
investment of SHOP funds, the contribution of sweat equity and 
volunteer labor, and any donations to your SHOP program (e.g. land, 
building materials) reduce the average sales price below the appraised 
value of the house or market value of comparable housing.
    e. Policy Priorities (6 points). Describe how each of the five HUD 
policy priorities identified specifically for

[[Page 11969]]

SHOP is furthered by your proposed activities. You will receive up to 
one point for each of the first four policy priorities based on how 
well your proposed work activities address the specific policy. You can 
receive up to two points for how well you address policy priority (5), 
removal of regulatory barriers to affordable housing, for which you 
must submit form HUD-27300, Questionnaire for HUD's Initiative on 
Removal of Regulatory Barriers. Applicants are encouraged to read HUD's 
notices published in the Federal Register on March 22 (69 FR 13450) and 
April 21 (69 FR 21663), 2004, to obtain an understanding of this policy 
priority and how it can impact your score. There are exceptions as 
provided below.
    Applicants that identify affiliate organizations and jurisdictions 
to be served in their application to HUD should address the questions 
in Part A or Part B of form HUD-27300 for the jurisdiction in which the 
majority or plurality of services will be performed.
    Applicants that do not identify affiliates and communities to be 
served in their application to HUD, but select affiliates competitively 
or through another method after application submission to HUD, may 
address this policy priority by including it as an evaluative criterion 
in their affiliate selection process. Such applicants may receive up to 
two points by requiring affiliate applicants for the awarded SHOP funds 
to complete the questions in either Part A or B, as appropriate. In 
order to receive points, applicants that identify affiliates after 
application submission must include their evaluative criterion as an 
appendix, and, if awarded SHOP funds in FY 2005, must demonstrate how 
the evaluative criteria that were included in your FY 2005 application 
were implemented. You must also describe how the evaluative criteria in 
your FY 2005 SHOP program affected or will affect the selection and 
funding of affiliates for FY 2006, to the extent this has been 
completed. The narrative for your evaluative criteria does not count 
against the page limits described in Section IV.B.1, Page Limits.
    Applicants applying for funds for projects located in local 
jurisdictions and counties/parishes are invited to answer the 20 
questions under Part A. An applicant that scores at least five in 
column 2 will receive 1 point in the NOFA evaluation. An applicant that 
scores 10 or more in column 2 will receive 2 points in the NOFA 
evaluation. The community(ies) must be identified on the form HUD-
27300.
    Applicants applying for funds for projects located in 
unincorporated areas or areas otherwise not covered in Part A are 
invited to answer the 15 questions in Part B. Under Part B, an 
applicant that scores at least four points in Column 2 will receive one 
point in the NOFA evaluation. An applicant that scores eight points or 
greater will receive a total of two points in the evaluation. The 
community(ies) must be identified on the form HUD-27300.
    A limited number of questions on form HUD-27300 expressly request 
the applicant to provide brief documentation with its response. Other 
questions require that, for each affirmative statement made, the 
applicant supply a reference, Web site address, or brief statement 
indicating where the back-up information may be found, and a point of 
contact, including a telephone number or e-mail address.
    f. Program Outreach (5 points). Describe materials or services that 
will be used to reach potential homebuyers, including persons least 
likely to apply. For example, what alternative formats will be used to 
reach persons with a variety of disabilities and what language 
accommodations will be made for persons with limited English 
proficiency.
    g. Performance and Monitoring (5 points). Describe your plan for 
overseeing the performance of consortium members and affiliates, 
including a plan for monitoring each consortium member and affiliate 
for program compliance at least once during the term of the grant. Your 
plan should address when and how you will shift funds among consortium 
members and affiliates to ensure timely and effective use of SHOP funds 
within the schedule submitted for item b. above.
    h. Section 3 Procedures (2 points). Under section 3 of the Housing 
and Urban Development Act of 1968, to the greatest extent feasible, 
opportunities for job training and employment arising in connection 
with housing rehabilitation, housing construction, or other public 
construction projects must be given to low- and very low-income persons 
in the metropolitan area (or non-metropolitan county) in which the 
project is located. In addition, to the greatest extent feasible, 
contracts for work to be performed in connection with housing 
rehabilitation, housing construction, or other public construction 
projects are given to business concerns that provide economic 
opportunities for low- and very low-income persons in the metropolitan 
area (or non-metropolitan county) in which the project is located. The 
regulations implementing section 3 are found at 24 CFR Part 135. 
Because SHOP funds may only be used for acquisition and infrastructure 
improvements, section 3 requirements apply only to SHOP projects for 
which the amount of SHOP funds for the infrastructure improvements 
(together with any other covered section 3 housing and community 
development assistance for infrastructure) meets the threshold amount 
of $200,000. Based on the SHOP maximum average investment of $15,000 
per unit, section 3 would generally only apply to a SHOP project with 
at least 14 units where the entire SHOP amount (if no other covered 
section 3 housing and community development assistance is provided to 
the grantee or affiliate for infrastructure) is $200,000 or more. 
Regardless of whether the section 3 threshold is met, all applicants 
are required to describe procedures they have in place for section 3 
compliance in the event that they meet the section 3 threshold in 
carrying out their proposed SHOP activities. You must clearly explain 
your procedures for complying with these requirements (1) for projects 
you undertake directly, and (2) for projects undertaken by affiliates. 
In the case of projects undertaken by affiliates, your procedures must 
state how you will inform affiliates of their responsibilities under 
section 3 and how you will monitor compliance. One point will be 
awarded for addressing job training and employment opportunities. One 
point will be awarded for addressing contracting opportunities.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure other resources that 
can be combined with HUD's program resources to fully fund your 
proposed program. When combined with the SHOP grant funds, homebuyer 
sweat equity, and volunteer labor, your leveraged resources must be 
sufficient to develop the number of units proposed in your application. 
HUD will consider only those leveraging contributions for which current 
firm commitments as described in this factor are submitted. A firm 
commitment means a written agreement under which the applicant, a 
partner, or an entity agrees to perform services or provide resources 
for an activity specified in your application. Firm commitments in the 
form of cash funding (e.g., grants or loans), in-kind contributions, 
donated land and construction materials, and donated services will 
count as leverage. Leveraging does not include the dollar value of 
sweat equity and volunteer labor for your proposed activities. 
Leveraging does not include financing provided to homebuyers. However,

[[Page 11970]]

financing provided through the U.S. Department of Agriculture's Section 
502 direct loans to homebuyers for construction of their dwellings 
counts as leveraging for mutual self-help housing programs. Firm 
commitments must be substantiated by the documentation described below.
Submission Requirements for Rating Factor 4
    Firm Commitments of Resources (10 points). Provide firm commitments 
(letters, agreements, pledges, etc.) of leveraged resources or services 
from the source of the commitment. In order to be considered, leveraged 
resources or services must be committed in writing and include your 
organization's name, the contributing organization's name (including 
designation as a federal, state, local, or private source), the 
proposed type of commitment, and dollar value of the commitment as it 
relates to your proposed activities. Each letter of commitment must be 
signed by an official of the organization legally able to make the 
commitment on behalf of the organization. See Other Submission 
Requirements, of the General Section regarding the procedures for 
submitting third-party documentation. Each letter of commitment must 
specifically support your FY 2006 SHOP application or specific projects 
in your FY 2006 application. If your organization depends upon 
fundraising and donations from unknown sources/providers, you must 
submit a separate letter committing a specific amount of dollars in 
fundraising to your proposed FY 2006 SHOP program. Likewise, if you 
have received funds from organizations and agencies from previous years 
that are not committed to another activity and you have the sole 
discretion to commit these funds to your FY 2006 SHOP program, you must 
submit a separate letter committing these dollars to your FY 2006 SHOP 
program. In all instances, the dollar amount must be stated in the 
letters. Letters of commitment may be contingent upon your receiving a 
grant award. Letters of commitment must be included as an appendix to 
your application, and do not count toward the page limitation noted in 
Section IV.B.1. Unsigned, undated, or outdated letters, letters only 
expressing support of your organization or its proposal, or those not 
specifically stating the dollar amount or linking the resources to your 
FY 2006 SHOP application or specific projects in your FY 2006 
application do not count as firm commitments.
    To receive full credit for leveraging, an applicant's leveraging 
resources must be clearly identified for its FY 2006 SHOP application 
and must total at least 50 percent of the amount shown on forms HUD-
424-CB needed to complete all properties, minus the proposed SHOP grant 
amount, homebuyer sweat equity, and volunteer labor.
Rating Factor 5. Achieving Results and Program Evaluation (10 Points)
    This factor assesses an applicant's past performance and emphasizes 
HUD's determination to track whether applicants meet commitments made 
in their applications.
    a. Past Performance. For applicants that previously received SHOP 
grants, HUD will assess your organization's past performance based upon 
performance reports that demonstrate your organization's completion of 
eligible SHOP activities, the number of families provided housing, 
financial status information focusing on timely use of funds, and other 
program outcomes. HUD will consider whether you had funds deobligated 
for failure to meet your drawdown and construction schedules or funds 
were returned because of monitoring findings or other program 
deficiencies. HUD will also use monitoring reports, audit reports, and 
other information available to HUD in making its determination under 
this factor. For applicants that received SHOP grants in previous 
years, HUD will assess your success in meeting benchmarks in the most 
recent three years of participation in the program. If you are not a 
current SHOP grantee, you must summarize your performance in 
undertaking similar activities during the past three years. You must 
supplement your narrative with internal or external performance reports 
or other information that will assist HUD in making this determination, 
and submit it as an appendix. Supplemental information and reports from 
applicants that have not received SHOP grants do not count against the 
page limitations.
    b. Logic Model. HUD requires SHOP applicants to develop an 
effective, quantifiable, outcome-oriented evaluation plan for measuring 
performance and determining whether goals have been met using the 
Master Logic Model for SHOP, which can be found in the download 
instructions portion at www.grants.gov. In preparing your logic model 
you must first open the form HUD-96010 and go to the instruction tab 
and follow the directions in the tab. ``Outcomes'' are benefits 
accruing to the families and/or communities during or after 
participation in SHOP. The self-help housing units developed are 
outputs as described under this factor, not outcomes. Applicants must 
clearly identify the outcomes to be achieved and measured. Examples of 
outcomes for SHOP include increasing the homeownership rate in a 
neighborhood or among low-income families by a certain percentage, 
increasing financial stability (e.g., increasing assets of the low-
income homebuyer households through home equity accumulation or 
reducing total housing costs compared to rents that SHOP participants 
previously paid) or increasing housing stability during and beyond the 
grantee's period for reporting on property completions. See Reporting 
in Section VI.C. Outcomes must be quantifiable.
    In addition, applicants must establish interim benchmarks for which 
outputs lead to the ultimate achievement of outcomes. ``Outputs'' are 
the direct products of the applicant's program activities. Examples of 
outputs for SHOP include the number of houses constructed, number of 
sweat equity hours, or number of homes rehabilitated. Outputs should 
produce outcomes for your program. Outputs must be quantifiable.
    ``Interim benchmarks'' are steps or stages in your activities that, 
if reached or completed successfully, will result in outputs for your 
program. Examples of interim benchmarks for SHOP include income-
qualifying homebuyers, obtaining building permits, or securing 
construction materials and equipment.
    Program evaluation requires that you identify program outcomes, 
outputs, benchmarks, and performance indicators that will allow you to 
measure your performance. Performance indicators must be objectively 
quantifiable and measure actual achievements against anticipated 
achievements. Your evaluation plan must identify what you are going to 
measure, how you are going to measure it, and the steps you have in 
place to make adjustments to your work plan if performance targets are 
not met within established time frames. This factor reflects HUD's goal 
to embrace high standards of ethics, management, and accountability. 
Successful applicants will be required to periodically report on their 
progress in achieving the proposed outcomes identified in the 
application. Applicants should refer to the General Section for more 
information on the Master Logic Model.
Submission Requirements for Rating Factor 5
    a. Past Performance (7 Points). For applicants that received SHOP 
grants in previous years, you must summarize your past performance, 
including any

[[Page 11971]]

delays you encountered and the mitigating actions taken to overcome 
them to successfully complete your program. HUD will measure your past 
performance using monitoring reports, audit reports, quarterly and 
annual reports, disbursement data, and other information currently in-
house against what you stated you would do in your previous 
applications and your summary. New applicants must provide a summary of 
your performance in carrying out self-help housing, including any 
delays you encountered and the mitigating actions taken to overcome 
them to successfully complete your program. Your narrative summary must 
be supported by existing internal or external performance reports or 
other information that will assist HUD in measuring your performance 
for carrying out self-help housing. The supplemental reports and 
information must be included as an appendix and will not count against 
the page limitations.
    b. Program Evaluation Plan (3 Points). For FY 2006, HUD has 
developed an e LogicModelTM that allows the applicant to 
select from drop down menus the elements of their program to be 
captured in the Logic Model. Instructions for the eLogic 
ModelTM are found in Tab 1 of the form HUD-96011 found in 
the instructions download to your electronic application on 
www.Grants.gov/Apply. The Master Logic Model listing also identifies 
the unit of measure that HUD will collect for the output and outcome 
selected. Applicants must identify a unit of measure and establish a 
goal for each output and outcome. HUD expects applicants to identify 
more than one output and outcome. You must summarize your program 
evaluation plan that measures your own program performance. Your plan 
must measure the performance of individual consortium members and 
affiliates, including the standards and measurement methods, and the 
steps you have in place or how you plan to make adjustments if you 
begin to fall short of established benchmarks and time frames. For 
FY2006, HUD is considering a new concept for the Logic Model. The new 
concept is a Return on Investment (ROI) statement. HUD will be 
publishing a separate notice on the ROI concept.

Review and Selection Process

1. Factors for Award Used To Evaluate Applications
    HUD will evaluate all SHOP applications that successfully complete 
technical processing and meet threshold and submission requirements for 
Factors 1 through 5. The maximum number of points awarded for the 
rating factors is 100 plus the possibility of an additional 2 bonus 
points for RC/EZ/EC-II.
2. RC/EZ/EC-II Bonus Points
    Applicants may receive up to 2 bonus points for eligible activities 
that the applicant proposes to locate in federally designated 
Empowerment Zones (EZs), renewal communities (RCs), or enterprise 
communities (ECs) designated by the United States Department of 
Agriculture (USDA) in Round II (EC-IIs) that are intended to serve the 
residents of these areas and that are certified to be consistent with 
the area's strategic plan or RC Tax Incentive Utilization Plan for an 
urban or rural renewal community designated by HUD (RC) on the 
strategic plan for an enterprise community designed in round II by USDA 
(EC-II) . For ease of reference in this notice, all of the federally 
designated areas are collectively referred to as ``RC/EZ/EC-IIs'' and 
the residents of these federally designated areas as ``RC/EZ/EC-II 
residents.'' The RC/EZ/EC-II certification, a valid HUD-2990 form, must 
be completed for an applicant to be considered for RC/EZ/EC-II bonus 
points. A list of RC/EZ/EC-IIs can be obtained from HUD's grants Web 
page at www.hud.gov/offices/adm/grants/fundsavail.cfm. Applicants can 
determine if their program or project activities are located in one of 
these designated areas by using the locator on HUD's Web site at 
www.hud.gov/crlocator. Copies of the certification can be found in the 
electronic application and on HUD's Web site at http://www.hud.gov/offices/adm/grants/nofa05/snofaforms.cfm. The certification must be 
completed and signed by the appropriate official in the RC/EZ/EC-II for 
an applicant to be considered for RC/EZ/EC-II bonus points. In addition 
to the RC/EZ/EC-II certification, applicants must provide the location 
of the EC/EZ/EC-II (name of town, city, state, or other locale) if not 
otherwise identified on the certification, and the number of units to 
be developed within the RC/EZ/EC-II in order to receive credit as noted 
in V.B.4, Ranking and Selection Procedures.
    RC/EZ/EC-II bonus points will be awarded as follows: 2 Points to an 
applicant with over 25 percent of its proposed units in RC/EZ/EC-II; 1 
point for 10 to 25 percent of units in RC/EZ/EC-IIs; and 0 points below 
10 percent of units in RC/EZ/EC-II zones.
3. Rating
    Applications that meet all threshold requirements listed in Section 
III.C will be rated against the criteria in Factors 1 through 5 and 
assigned a score. Applications that do not meet all threshold factors 
will be rejected and not rated.
4. Ranking and Selection Procedures
    Applications that receive a total of 75 points or more (without the 
addition of RC/EZ/EC-II bonus points) will be eligible for selection. 
After adding any bonus points for RC/EZ/EC-IIs HUD will place 
applications in rank order. HUD will consider rank order, funds 
availability, and past performance in the selection and funding of 
applications.
5. Technical Deficiencies
    After the application submission date and consistent with 
regulations in 24 CFR part 4, subpart B, HUD may not consider any 
unsolicited information you may want to provide. However, HUD may 
contact you to clarify an item in your application or to correct 
technical deficiencies. In order not to unreasonably exclude 
applications from being rated and ranked, HUD may contact applicants to 
ensure proper completion of the application and will do so on a uniform 
basis for all applicants. However, HUD may not seek clarification of 
items or responses that improve the substantive quality of your 
response to any rating factor.
    Examples of curable (correctible) technical deficiencies include 
inconsistencies in the funding request, a failure to submit 
certifications. In each case, HUD will notify you in writing by 
describing the clarification or technical deficiency. See the General 
Section for additional information.

6. HUD's Strategic Goals to Implement HUD's Strategic Frameworks and 
Demonstrate Results

    See the General Section for HUD's Strategic Goals.

7. Policy Priorities

    Refer to the General Section for information regarding application 
criteria addressing HUD's policy priorities.


    Note: From all applications that receive SHOP funds, HUD intends 
to add relevant data obtained from the ``Removal of Regulatory 
Barriers'' policy priority factor to the database on state and local 
regulatory reform actions maintained at the Regulatory Barrier 
Clearinghouse Web site at www.huduser.org.rbc/ used by states, 
localities, and housing providers to identify regulatory barriers 
and learn of exemplary local efforts at regulatory reform.


[[Page 11972]]



VI. Award Administration Information

A. Award Notices

    1. HUD reserves the right to:
    a. fund less than the amount requested by any applicant based on 
the application's rank, the applicant's past performance, and the 
amount of funds requested relative to the total amount of available 
funds; and/or
    b. fund less than the full amount requested by any applicant to 
ensure a fair distribution of the funds and the development of housing 
on a national, geographically diverse basis as required by the statute.
    HUD will not fund any portion of an application that is ineligible 
for funding under program threshold requirements in Section III.C. or 
which does not meet other threshold and pre-award requirements in 
Section III.C. The minimum grant award shall be the amount necessary to 
complete at least 30 units at an average investment of not more than 
$15,000 per unit or a lesser amount if lower costs are reflected in the 
application. If any funds remain after all selections have been made, 
these funds may be available for subsequent competitions.

2. Debriefing

    For a period of at least 120 days, beginning 30 days after the 
awards for assistance are publicly announced, HUD will provide to a 
requesting applicant a debriefing related to its application. A 
debriefing request must be made in writing or by email by its 
authorized official whose signature appears on the SF-424 or his or her 
successor in the office and submitted to Ms. Lou Thompson, Office of 
Affordable Housing Programs, U.S. Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 7164, Washington, DC 20410-
7000. Information provided during a debriefing will include, at a 
minimum, the final score you received for each rating factor, final 
evaluation comments for each rating factor, and the final assessment 
indicating the basis upon which assistance was provided or denied.

B. Administrative and National Policy Requirements

    1. Grantees are required to comply with the following 
administrative and financial requirements: A-122 Cost Principles for 
Non-Profit Organizations; A-133 (Audits of States, Local Governments, 
and Non-Profit Organizations); and the regulations at 24 CFR part 84 
(Grants and Agreements with Institutions of Higher Education, 
Hospitals, and other Non-Profit Organizations).
    2. Copies of the OMB Circulars may be obtained from EOP 
Publications, Room 2200, New Executive Office Building, Washington, DC 
20503, telephone (202) 395-3080 (this is not a toll-free number) or 
(800) 877-8339 (toll-free TTY Federal Information Relay Service) or 
from the Web site at www.whitehouse.gov/omb/circulars/index.html.
    3. Refer to all award administration information requirements 
described in Section VI (``Award Administration Information'') of the 
General Section.

C. Reporting

    Grantees are required to submit quarterly and annual (consortium 
members/affiliates) reports providing data on the construction status, 
unit characteristics, and income and racial and ethnic composition of 
homeowners in SHOP-funded properties. For each reporting period, as 
part of the required quarterly report to HUD, grant recipients must 
include a completed Logic Model (form HUD-96010), which updates the 
output and outcome achievements identified in your application with 
which HUD can evaluate the effectiveness of the SHOP funding. 
Applicants are also required to report annually their response to the 
management questions contained in the eLogic model TM for 
the SHOP program.

VII. Agency Contact

Further Information and Technical Assistance

    Before the application due date, HUD staff may provide general 
guidance and technical assistance about this NOFA. However, staff is 
not permitted to assist in preparing your application. Also, following 
selection of applicants, but before awards are announced, staff may 
assist in clarifying or confirming information that is a prerequisite 
to the offer of an award. You may contact Ms. Lou Thompson, SHOP 
Program Manager, Office of Affordable Housing Programs, U.S. Department 
of Housing and Urban Development, 451 Seventh Street, SW., Room 7164, 
Washington, DC 20410-7000, telephone (202) 708-2684 (this is not a 
toll-free number). This number can be accessed via TTY by calling the 
toll-free Federal Information Relay Service Operator at (800) 877-8339. 
For technical support for downloading an application or electronically 
submitting an application, please call Grants.gov Customer Support at 
800-518-GRANTS (this is a toll-free number) or e-mail to 
[email protected].

VIII. Other Information

    A. Review Section VIII.A., B., E., F., G., and H. (``Other 
Information'') of the General Section, and note that these subsections 
are incorporated by reference into this NOFA.

B. Paperwork Reduction Act

    The information collection requirements contained in this document 
were approved by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB 
control number 2506-0157. In accordance with the Paperwork Reduction 
Act, HUD may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection displays 
a currently valid OMB control number. Public reporting burden for the 
collection of information is estimated to average 60 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 and annual 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.

BILLING CODE 4210-01-P

[[Page 11973]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.026


[[Page 11974]]



Housing Opportunities for Persons With AIDS (HOPWA) Overview 
Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development (CPD), Office 
of HIV/AIDS Housing.
    B. Funding Opportunity Title: Housing Opportunities for Persons 
With AIDS (HOPWA).
    C. Announcement Type: Initial Announcement
    D. Funding Opportunity Number: The Federal Register number is: FR-
5030-N-05. The OMB approval number is 2506-0133.
    E. Catalog of Federal Domestic Assistance (CFDA) Numbers: 14.241 
Housing Opportunities for Persons With AIDS Program.
    F. Dates: The application submission date is June 13, 2006. Refer 
to the General Section for application submission and timely receipt 
requirements.
    G. Additional Overview Information:
    1. Purpose of the Program: To provide states and localities with 
the resources and incentives to devise long-term comprehensive 
strategies for meeting the housing needs of low-income persons with 
Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/
AIDS). Grant recipients will measure client outcomes to assess how 
housing assistance results in creating or maintaining stable housing, 
reduces risks of homelessness, and improves access to healthcare and 
other needed support. States, units of general local government, and 
nonprofit organizations interested in applying for funding under this 
grant program should carefully review the General Section and detailed 
information listed in this NOFA.
    2. Available Funds. Approximately $10,000,000 in FY2006 funding is 
made available under the Department of Housing and Urban Development 
Appropriations Act, 2006 (Pub. L. 109-115; approved Nov. 30, 2005). 
Funds for the renewal of expiring HOPWA competitive grants that have 
successfully undertaken permanent supportive housing projects will be 
distributed under a separate, simplified process, described in a 
separate notice from this NOFA. Funds under this NOFA will be made 
available after those awards with the remaining funds. This notice 
makes available funding for two types of HOPWA competitive grants for 
new projects: (1) Long-term project awards for housing activities to be 
conducted by eligible states and units of general local government in 
areas that are not eligible for formula allocations or in the balance 
of the state areas outside of eligible metropolitan statistical areas 
by a governmental agency that is not eligible to receive formula 
grants; and (2) awards for Special Projects of National Significance 
(SPNS) projects that will undertake housing service delivery models to 
provide HOPWA clients with improved stable housing arrangements by a 
governmental agency or an eligible non-profit organization.
    Beginning this year, the Department will advise existing grantees 
that provide permanent supportive housing, the procedure for qualifying 
for additional funds as a renewal of an expiring HOPWA grant. These 
projects will not be required to submit an application under this 
competition for a renewal grant.
    3. Eligible Applicants. States, units of general local government, 
and nonprofit organizations are eligible to apply.
    4. Match. None.
    5. Authorities. HOPWA Program regulations at 24 CFR Part 574 and 
the AIDS Housing Opportunity Act (42 U.S.C. 12901-12912), govern the 
program.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

1. Long-Term Projects in Non-Formula Areas
    HUD will award funding for short-term, transitional and/or 
permanent supportive housing activities. These projects should improve 
stable housing arrangements for eligible persons who reside in areas 
not eligible for HOPWA formula allocations or in the balance of state 
areas outside of eligible metropolitan statistical areas to be 
undertaken by a state or unit of general local government that is not 
eligible for a formula allocation in federal fiscal year 2006.
2. Special Projects of National Significance (SPNS)
    Special Projects of National Significance (SPNS) projects will 
provide assistance that stabilizes housing for eligible persons through 
model and/or innovative service delivery models. Consistent with the 
selection considerations established at 42 U.S.C. 12903(c)(3)(C), SPNS 
projects will demonstrate potential replicability in the larger HOPWA 
program.
3. Definitions for All HOPWA Grants
    a. Chronically Homeless Person. An unaccompanied homeless 
individual with a disabling condition who has either been continuously 
homeless for a year or more OR has had at least 4 episodes of 
homelessness in the past 3 years. For this program a disabling 
condition is defined as a diagnosable substance abuse disorder, serious 
mental illness, developmental disability, or chronic physical illness 
or disability, including the co-occurrence of two or more of these 
conditions.
    b. Lease or Occupancy Agreement. In establishing that an eligible 
person has obtained permanent supportive housing and a legal right to 
remain in that housing unit, the lease or occupancy agreement must be 
for a term of at least one year. The lease or occupancy agreement must 
also be automatically renewable upon expiration, except on reasonable 
and timely prior notice by either the tenant or the landlord. A short-
term lease or lease in the name of the provider may be used to 
undertake transitional housing activities.
    c. Non-profit Organization. Non-profit organizations include those 
that: (1) Are state or locally chartered; (2) Are organized under state 
or local laws; (3) Have no part of earnings inuring to the benefit of 
any member, founder, contributor or individual; (4) Have a functioning 
accounting system that is operated in accordance with generally 
accepted accounting principles, or has designated an entity that will 
maintain such an accounting system; and (5) Have among its purposes 
significant activities related to providing services or housing to 
persons with acquired immunodeficiency syndrome or related diseases, as 
clarified to include infection with the human immunodeficiency virus 
(HIV).
    d. Permanent Supportive Housing. Housing in which the eligible 
person has a continuous legal right to remain in the unit and which 
provides the eligible person ongoing supportive services through 
qualified providers.
    e. Transitional Housing. Housing, that will help facilitate the 
movement of eligible person(s) to permanent housing within 24 months.

B. Statutory and Regulatory Requirements

    For more information on the HOPWA program, including eligible uses 
of funds, see the HOPWA program regulations at 24 CFR Part 574 and the 
AIDS Housing Opportunity Act (42 U.S.C. 12901-12912), which govern the 
program.

C. Availability of Other HOPWA Resources.

1. Formula Allocations
    Applicants are advised to also consider seeking funds from the 
formula

[[Page 11975]]

component of the HOPWA program and from other resources. Ninety percent 
of the HOPWA program is allocated by formula to eligible states and 
qualifying cities. In FY2006, HUD distributed $256 million in HOPWA 
funds by formula to the qualifying cities for 83 eligible metropolitan 
statistical areas (EMSAs) and to 39 eligible states for areas outside 
of EMSAs.
2. National HOPWA Technical Assistance
    To apply for funding to serve as a provider of HOPWA technical 
assistance, you must submit an application for funds under the 
Community Development Technical Assistance (CDTA) section of the 
SuperNOFA. The CDTA notice makes HOPWA funds available to organizations 
qualified to provide technical assistance support to HOPWA grantees and 
project sponsors. Organizations seeking help in managing their current 
HOPWA project, such as advice or other help needed in planning, 
operating, reporting to HUD and evaluating HOPWA programs, can request 
technical assistance by contacting their state or area CPD office.

II. Award Information

A. Total

    The total available HOPWA competitive funding in FY2006 is 
$28,175,000. After first awarding funds to renew existing HOPWA 
permanent housing projects in FY2006, HUD estimates that approximately 
$10,000,000 will be available for new projects.

B. Announcement of Awards

    HUD anticipates that projects awarded under this Notice will be 
announced by August 30, 2006. It is expected that selected projects 
will undertake program activities under a grant agreement for a three-
year operating period.

C. Minimum and Maximum Grant Award

    In order to fairly distribute available funding, the conditions on 
grant size for award that you may receive is:
    1. For program activities (e.g., activities that directly benefit 
eligible persons): at least $500,000 and up to $1,300,000 (e.g., 
activities that directly benefit eligible persons);
    2. For grant administrative costs of the grantee: 3 percent of the 
awarded grant amount (e.g., an additional $39,000 if the maximum grant 
is awarded);
    3. For grant administrative costs for project sponsors: 7 percent 
of the amounts received by the project sponsor under the grant (e.g., 
an additional $91,000 if the maximum grant is awarded). A grantee 
cannot also receive project sponsor administrative costs even when the 
grantee carries out the program activities directly;
    4. Total maximum grant amount for all categories of grant awards 
under this NOFA is $1,430,000.

D. Average Grant Award

    Based on the results of the 2005 HOPWA competition, the average 
grant award for the 35 grants selected was $1,071,459.

III. Eligibility Information

A. Eligible Applicants

1. Eligibility for Funding to Nonprofit Organizations
    If you are a nonprofit organization, you must also satisfy the 
nonprofit requirements established in the definition for eligible 
nonprofit organization found in 24 CFR 574.3 and in the definitions 
section of this Program NOFA.
2. General Eligibility for Expiring Grant Projects
    To be eligible for a new grant for an existing HOPWA project--a 
project that does not qualify for renewal as a permanent supportive 
housing project--the project must meet all program requirements. 
Projects that show poor performance or unresolved grants management 
issues up to the date of the public announcement of awards under this 
NOFA will not be funded. Unresolved problems may include: (1) HUD 
knowledge that planned activities remain significantly delayed in their 
implementation; (2) A significant number of planned housing units are 
vacant; 3. Required annual progress reports are not timely filed with 
HUD; 4: Unresolved actions pending under a HUD notice of default on 
your current grant or significant citizen complaints are unresolved or 
not responded to with justified reasons.
3. General Eligibility for Applicants and Sponsors
    States, units of general local government, and nonprofit 
organizations may apply under the SPNS grants category to propose new 
projects or for additional funding to existing projects that do not 
qualify as permanent supportive housing renewal grants.
    States and units of general local government may apply under the 
``Long-term'' category, if the project entails housing activities in 
areas that did not receive or are not designated to receive HOPWA 
formula allocations in FY2006 or the government agency is not eligible 
to receive formula funds will serve a balance of state area outside of 
any EMSA. Nonprofit organizations are not eligible to apply directly 
for Long-term grants, but may serve as a project sponsor for an 
eligible state or local government applicant.

B. Cost Sharing or Matching

    There are no cost sharing or matching requirements for applications 
under this program NOFA. However, leveraging is encouraged and 
addressed in Rating Factor 4 Leveraging.

C. Other Eligibility Requirements

1. Threshold Requirements for All Applications
    Applicants must meet the threshold requirement identified in the 
General Section. HUD will also review your application to determine 
that you are eligible for funding, as follows:
    a. Eligible Applicant.
    (1) Your application is consistent with the requirements of Section 
III of this NOFA for eligibility based on applicant requirements, 
project sponsor requirements and the lack of any unresolved management 
issues for applicants who currently administer HOPWA grants; and
    (2) Your application complies with the Dun and Bradstreet Data 
Universal Numbering System (DUNS). More information on the requirement 
of the DUNS can be found in the General Section.
    b. Eligible Project Sponsors. Your application is consistent with 
the requirements for eligibility of project sponsors, as follows:
    If the project sponsor is a nonprofit organization, it must also 
satisfy the nonprofit requirements established in the definition of an 
eligible nonprofit organization found in 24 CFR 574.3 and in the 
definition section of this NOFA.
2. Program Requirements
    All grant recipients must also meet the following program 
requirements, including performance goals and operational benchmarks, 
and conduct project activities in a consistent and ongoing manner over 
the approved grant operating period. If a selected project does not 
meet the appropriate requirement, HUD reserves the right to cancel and/
or withdraw the grant funds.
    a. General Provisions. The provisions outlined within the General 
Section apply to the HOPWA program unless otherwise stated within this 
NOFA. Specifically, you are encouraged to review Section III.C, Other

[[Page 11976]]

Requirements and Procedures Applicable to All Programs.
    b. Environmental Requirements. All HOPWA assistance is subject to 
the National Environmental Policy Act and applicable related federal 
environmental authorities. While some eligible activities, such as 
tenant-based rental assistance, supportive services, operating costs, 
and administrative costs, are excluded from environmental review 
because of the lack of environmental impact, other activities require 
environmental review. All new facility-based projects must undergo an 
environmental review. In accordance with Section 856(h) of the AIDS 
Housing Opportunity Act and the HOPWA regulations at 24 CFR 574.510, 
environmental reviews for HOPWA activities are to be completed by 
responsible entities in accordance with 24 CFR Part 58. Applicants or 
grantees that are not a responsible entity must request the unit of 
general local government to perform the environmental review. HOPWA 
grantees and project sponsors may not commit or expend any grant or 
non-federal funds on project activities until HUD has approved a 
``Request for Release of Funds and Certification'' (RROF), form HUD-
7015.15, on compliance with the National Environmental Policy Act and 
implementing regulations at 24 CFR Part 58 (Environmental Review 
Procedures for Entities Assuming HUD Environmental Responsibilities) 
and the environmental certification from the responsible entity (other 
than those listed in 24 CFR 58.22(f), 58.34 or 58.35(b) for which the 
responsible entity documents its findings of exemption or exclusion for 
the environmental review record (24 CFR 58.34(b) or 24 CFR 58.35(d)). 
The recipient, its project sponsors and their contractors may not 
acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or 
construct property for a project, or commit or expend HUD or local 
funds for such eligible activities, until the responsible entity (as 
defined in 58.2) has completed the environmental review procedures 
required by 24 CFR Part 58 and the environmental certification and RROF 
have been approved. HUD will not release grant funds if the recipient 
or any other party commits grant funds (i.e., incurs any costs or 
expenditures to be paid or reimbursed with such funds) before the 
recipient submits and HUD approves its RROF (where such submission is 
required). The recipient shall supply all available, relevant 
information necessary for the responsible entity to perform, for each 
property, any environmental review required.
    c. Required HOPWA Performance Goals. Grant recipients must conduct 
activities consistent with their planned annual housing assistance 
performance output goals, objectively measure actual achievements 
against anticipated achievements, and report on their actual 
performance housing outputs and client outcomes. Applicants are 
required to use the HOPWA Budget Form (form HUD-40110-B) found in the 
instructions to the published NOFA on Grants.gov/Apply in this NOFA for 
recording the funding for housing assistance activities that are 
associated with these performance outputs, including any funding 
request for HOPWA funds and/or commitment to use other funds for this 
purpose. This form is consistent with the new Annual Progress Report 
that grantees will be required to complete. Applicants must establish a 
reasonable client outcome goal on achieving housing stability to be 
quantified after each year of operation to demonstrate client outcomes. 
HUD expects that each HOPWA grantee will show that at least half of the 
beneficiaries achieve stable housing in their program during the 
operating year, as shown by stable housing arrangements for the 
household at the end of each operating year. The grantee will assist in 
establishing a baseline on annual performance to help measure how 
future efforts lead to the achievement of higher levels of housing 
stability. On a national basis, HUD has established the goal that over 
80 percent of clients will be in stable housing situations by 2008. The 
following performance measures must be used in your project plan and 
your logic model under paragraph (e):
    (1) Required Output refers to the number of units of housing/
households assisted during the year, as measured by the annual use of 
HOPWA funds. For HOPWA, the application must specify one-year goals for 
the number of households to be provided housing through the use of 
HOPWA activities for: (a) short-term rent, mortgage, and utility 
assistance payments to prevent homelessness of the individual or 
family; (b) tenant-based rental assistance; and (c) units provided in 
housing facilities that are being developed, leased, or operated with 
HOPWA funds. You should also include the projected numbers of low-
income eligible households who are expected to benefit from the other 
types of HOPWA assistance to be provided through your project during 
each operating year, such as the number receiving permanent housing 
placement support, or supportive services.
    (2) Required Outcomes refer to the number of eligible households 
who have been provided housing assistance (as noted above for outputs) 
and thereby maintain a stable living environment in housing that is 
safe, decent, and sanitary. The program will measure these results in 
annual assessments on the housing status of beneficiaries along with 
other outcome measures on the reduced risks of homelessness and 
improved access to HIV treatment and other health care and support. On 
a nation-wide basis, the program is expected to demonstrate stable 
housing results for beneficiaries through the use of annual resources 
with a national goal that this stable housing status be achieved by 80 
percent of all HOPWA beneficiaries by 2008.
    d. Optional Program Performance Goals.
    In addition to required performance measures described in the 
paragraph above, you may include other measures or annual indicators in 
your project plan and in your logic model under paragraph (e).
    e. HUD Logic Model. You must use the Logic Model (Form HUD-96010) 
in the General Section to illustrate the planning for the use of 
resources, project activities, required outputs and outcomes, and other 
grantee-identified goals, and for reporting on annual accomplishments. 
Applicants must make use of the required elements in paragraph (a) in 
this form. If you are awarded a grant under this notice, please note 
that the logic model form will also be used as part of your Annual 
Progress Report to document results obtained under your approved plans 
during each operating year. For FY2006, HUD is considering a new 
concept for the Logic Model. The new concept is a Return on Investment 
(ROI) statement. HUD will be publishing a separate notice on the ROI 
concept. Training on the logic model will be conducted via satellite 
broadcast and archived on HUD's Web site. The satellite broadcast and 
webcast date will be published on HUD's Web site. See Section VI, C 
Logic Model reporting requirements.
    f. HOPWA Facility Use Period Requirement. Any building or structure 
assisted with amounts under this part will be maintained as a facility 
to provide assistance for eligible persons: (1) for not less than 10 
years in the case of assistance involving new construction, substantial 
rehabilitation or acquisition of a building or structure; and (2) for 
not less than three years in cases involving substantial

[[Page 11977]]

rehabilitation or repair of a building structure.
    g. Execution of Grant Agreement and Obligation of Awards. HOPWA 
grants are obligated upon execution of the grant agreement by both 
parties (i.e., the recipient and HUD). Applicants selected to receive 
FY2006 funding must execute grant agreements as soon as practicable, 
but no later than six months after the notice of selection.
    h. Disbursement of Funds. Grant recipients must fully expend their 
grant funding no later than three years following the effective date or 
the operation start date in the grant agreement, unless HUD has 
approved a one-time extension for an additional 12 months or less. A 
time limit on grant expenditures that is established in the National 
Defense Authorization Act for Fiscal Year 1991 requires the expenditure 
of all HOPWA funds awarded under the FY2006 Appropriations Act by 
September 30, 2012. After September 30, 2012, any unexpended funds 
shall be canceled and, thereafter, shall not be available for 
obligation or expenditure for any purpose.
    i. Site Control through Acquisition or Lease. If you acquire or 
lease a site for housing activities, you are required to gain site 
control within one year from the date of your notice of selection by 
HUD.
    j. Rehabilitation or New Construction. If you propose to use HOPWA 
funds for rehabilitation or new construction activities for housing 
projects, you must agree to begin the rehabilitation or construction 
within 18 months, and all rehabilitation or construction work must be 
completed within the terms of your grant agreement with HUD. Such 
activities will trigger certain accessibility requirements of Section 
504 of the Rehabilitation Act of 1973 and/or the Design and 
Construction requirements of the Fair Housing Act of 1988.
    k. Project Operations. If funds are used for operating costs of 
existing housing facilities, you must agree to begin to use these funds 
within six months, consistent with the terms of your grant agreement 
with HUD. If funds are to be used for operating costs, in connection 
with the new construction or substantial rehabilitation of housing 
facilities, the amount of funds designated for operating costs must be 
limited to the amount to be used during the portion of the planned 
three-year period for your grant agreement for which the facility will 
be operational and assisting eligible. Delays in the project's 
development activities, such as the planned completion of the 
construction or rehabilitation activities, could result in the loss of 
funds designated for operating costs, if such funds remain in excess 
after the authorized use period for this award. For example, if you 
expect to take two years to complete the rehabilitation of the 
facility, any operating costs could only be requested for use in the 
remaining one-year of the planned three-year operating period for this 
award.
    l. Section 3 of the Housing and Urban Development Act of 1968. The 
applicant will comply with Section 3 of the Housing and Urban 
Development Act of 1968, as amended (12 U.S.C. 1701 (u), and 
regulations pursuant thereto (24 CFR Part 135), which require that to 
the greatest extent feasible opportunities for training and employment 
be given to lower-income residents of the project and contracts for 
work in connection with the project be awarded in substantial part to 
persons residing in the area of the project.
3. Eligible Activities
    a. Proposed Project Activities. In your application, you must 
specify the activities and budget amounts for which HOPWA funds are 
being requested, consistent with the eligible activities found in the 
HOPWA regulations at 24 CFR 574.300. Activities must address housing 
needs of eligible members of the community and specify whether the 
project will be undertaking permanent, transitional, short-term and/or 
emergency housing assistance. A copy of the regulations may be 
downloaded from www.hud.gov/offices/cpd/aidshousing/lawsregs/index.cfm. 
You are encouraged to review the HOPWA regulations before seeking 
funding. HUD will not approve proposals that depend on a prospective 
determination as to how program funds will be used. For example, a 
proposal to establish a local request-for-proposal process to select 
either activities, or to select project sponsors, that have the effect 
of delaying the obligation of funds due to the unplanned use of HOPWA 
funds, will not be approved.
    b. Additional Guidance on Use of Program Funds.
    (1) Housing Assistance. HOPWA projects must demonstrate that 
housing assistance is the main focus of program activities. Please 
indicate if you propose to use HOPWA funds to provide permanent 
supportive housing (as defined in Section I.A.). If you are proposing 
emergency or transitional housing assistance, your plan must include 
linkages to permanent supportive housing. See 24 CFR 574.300(b)(8) for 
descriptions of appropriate operating costs for a housing project.
    (2) Supportive Services. Many of the eligible persons who will be 
served by HOPWA may need other support in addition to housing. It is 
important that you design programs that enhance access to those 
existing mainstream resources through community wide strategies to 
coordinate assistance to eligible persons. These mainstream programs 
include: the Ryan White CARE Act; Medicaid; Children's Health Insurance 
Program; Temporary Assistance for Needy Families; Food Stamps; Mental 
Health Block Grant; Substance Abuse Block Grant; Workforce Investment 
Act; and the Welfare-to-Work grant program; as well as other state, 
local and private sources. No more than 35 percent of the proposed 
budget for program activities undertaken by project recipients can be 
designated for supportive services costs. In addition, HUD will not 
award funds for the acquisition, lease, rehabilitation, or new 
construction of a supportive services-only facility. Additional 
restrictions and limitations that apply to supportive services such as 
limitations addressing only uncompensated healthcare costs can be found 
at 24 CFR 574.300. HUD will not provide funds for medications or other 
health-care costs reasonably available from other sources. Costs for 
staff engaged in delivering the supportive service is part of the 
supportive service activity cost, and should not be listed as operating 
costs or ``other'' costs in the application's proposed HOPWA budget.
    (3) Permanent Housing Placement Assistance. Permanent housing 
placement at Sec.  574.300(b)(7) may also be used in connection with 
the provision of housing support provided under these awards and is not 
considered a supportive service under limitations stated in paragraph 
(2). Permanent housing placement costs may involve costs associated 
with helping eligible persons establish a new residence where ongoing 
occupancy is expected to continue, including rental application fees, 
related credit checks and reasonable security deposits necessary to 
move persons to permanent housing, provided such deposits do not exceed 
two months of rent. Leveraged resources may involve other forms of 
move-in support, such as essential housing supplies, smoke alarms, 
standard furnishings, minor repairs to the unit associated with move-
in, and other incidental costs for occupancy of the housing unit. While 
these items are not eligible as permanent housing placement costs, 
grantees may make use of other leveraged funds for these costs.

[[Page 11978]]

    (4) Other HUD-Approved Activities. You may propose other activities 
not already authorized at 24 CFR 574.300(b), subject to HUD's approval. 
Your proposal should address the expected beneficial impact of this 
alternative activity in addressing housing needs of eligible persons by 
describing the project impact and the identified performance output and 
client outcome measures for this activity.

IV. Application and Submission Information

A. Addresses To Request Application Package

    Copies of the published NOFAs and application forms for HUD 
programs announced through NOFA are available at the Grants.gov Web 
site, http://www.grants.gov/Apply If you have difficulty accessing the 
information, customer support is available from Grants.gov by calling 
their Support Desk at (800) 518-4726 from 8 a.m.-9 p.m. eastern time or 
sending an email to [email protected]. If you do not have Internet 
access and need to obtain a copy of the NOFA, you can contact HUD's 
NOFA Information Center toll-free at (800) HUD-8929. Persons with 
hearing or speech impairments may also call toll-free at (800) HUD-
2209.

B. Content and Form of Application Submission

    By signing the SF-424, applicants are agreeing to the assurances 
found in the General Section. If conditionally selected for funding, 
the following certifications as noted must be provided prior to the 
signing of a grant agreement. Standard certifications and forms are 
found in the General Section and the HOPWA budget and certification 
(form HUD-40110-B), is included in the appendices in this NOFA. Copies 
of these forms are available from HUD's Web site at http://www.hudclips.org/sub_nonhud/html/forms.htm.
1. Forms
    Applicants are requested to submit the following information:
    a. Application for Federal Assistance (SF-424) (Required)
    b. Survey on Ensuring Equal Opportunity for Applicants (SF-424 
Supplement) (Optional).
    c. Program Outcome Logic Model (HUD-96010) (Required).
    d. Certification of Consistency with the Consolidated Plan (HUD-
2991) (Required prior to the signing of a grant agreement).
    e. Certification of Consistency with the RC/EZ/EC-II Plan (HUD-
2990)--if applicable to the service area of your project (Optional).
    f. Applicant/Recipient Disclosure/Update Report (HUD-2880) 
(required prior to the signing of a grant agreement) (Required).
    g. Disclosure of Lobbying Activities (SF-LLL), if applicable 
(required prior to the signing of a grant agreement).
    h. HOPWA Application Budget Summary, including HOPWA Applicant 
Certifications (form HUD-40110-B) (Required).
    i. Acknowledgement of Application Receipt (HUD-2993), if applicable 
due to an approved waiver of the electronic submission requirement 
(Optional).
    j. Client Comments and Suggestions (HUD-2994) (Optional).
    k. Facsimile Transmittal (for electronic applications)--Form HUD-
96011, if applicable due to a facsimile transmission.
2. Additional HOPWA Guidance on Forms
    HOPWA Application Budget Summary (form HUD-40110-B). Do not 
complete the standard budget form contained in the General Section. 
Applicants must use this program-specific budget form (HUD-40110-B, 
HOPWA Budget Application Summary) that demonstrates how funds will be 
used for eligible activities. The HOPWA HUD-40110-B will provide a 
summary of the total budget for your project, the annual HOPWA amounts 
to be used in each of the three years of operation and description 
budget by project sponsor of the HOPWA funds to be used by each 
sponsor. On this form, you must provide a short narrative which 
outlines each of your requested budget line items and how the funds 
will be used, including the amount of requested funding by line item 
for you and your project sponsors.
    b. Certification of Consistency with the Consolidated Plan (HUD-
2991). Except as stated below, you must obtain a Consolidated Plan 
certification signed by the applicable state or local government 
official for submitting the appropriate plan for the areas in which 
activities are targeted. This form must be submitted to HUD prior to 
the signing of a grant agreement. The authorizing official from the 
state or local government must sign this certification. If your project 
will be carried out on a national basis or will be located on an Indian 
reservation or in one of the U.S. Territories of Guam, the Virgin 
Islands, American Samoa, or the Northern Mariana Islands, you are not 
required to include a Consolidated Plan certification from these areas 
with your application.
3. Application Content for Long-term and Special Projects of National 
Significance (SPNS) Project Applications
    The review criteria for Long-term, and SPNS applications can be 
found in Section V.A. of this NOFA. For your narrative responses, 
number the pages and include a header or a footer that provides the 
name of the applicant or the project.
    a. Executive Summary. On no more than two double-spaced pages, 
provide an Executive Summary of the proposed project. The summary 
should provide an overview of the main components of your planned HOPWA 
project, any special service delivery method or project purposes and 
the projected annual housing output for the first year of operation. In 
the Executive Summary, provide the name of the grantee and any project 
sponsors, along with contact names, phone numbers, and e-mail 
addresses.
    For projects involving sites, (e.g., a structure where HOPWA funds 
will be used for construction, acquisition, rehabilitation, leasing, 
operating costs, and/or project-based rental assistance) provide the 
address of the site and describe any other resources that are needed to 
complete the development of this housing facility. Please identify if 
the site is a Confidential Site or a Public Site. (HUD will not release 
the address of confidential sites).
    Please indicate which of the following special populations your 
project will serve by operating a project that intentionally targets 
assistance. Further, indicate the number of special population 
households likely to be assisted through the housing assistance planned 
in your project:
     Homeless persons (and of those, identify how many are 
chronically homeless)
     Veterans
Note: HUD will use your responses regarding special population to 
respond to public inquires).
    b. Proof of Nonprofit Status and AIDS Purpose. Excluding situations 
where non-profit documentation was submitted to HUD under prior HOPWA 
awards and there has been no change in project sponsor(s), all 
conditionally selected applicants must provide a copy of the nonprofit 
documentation for each sponsor that is a non-profit organization 
consistent with the standards under paragraph (1) prior to the signing 
of a grant agreement. Conditionally selected applicants must also 
provide documentation consistent with paragraph (2) below prior to the 
signing of a grant agreement to demonstrate that

[[Page 11979]]

each sponsor's organizational documents include a purpose of 
significant activities related to providing housing or services to 
persons with HIV/AIDS. For submission of the documentation in 
paragraphs (1) and (2) on paper forms, you should follow the directions 
in the General Section, with the exception of the budget forms.
    (1) HUD will accept as evidence of your nonprofit status:
    (a) A copy of the Internal Revenue Service (IRS) ruling providing 
tax-exempt status under Section 501(c) (3), (4), (6), (7), (9) or (19) 
of the IRS code;
    (b) A ruling from the Treasury Department of the Commonwealth of 
Puerto Rico granting income tax exemption under section 101 of the 
Income Tax Act of 1954, as amended (13 LPRA 3101);
    (c) Documentation that the applicant is a certified United Way 
agency;
    (d) Copy of your most recent completed tax statement, Form IRS-990 
or Form 990-EZ;
    (e) All of these:
    (i) a certification by the appropriate official of the jurisdiction 
where the nonprofit was organized that your organization was organized 
as a non-profit organization and is in good standing;
    (ii) a certification from a designated official of the organization 
that no part of the net earnings of the organization inures to the 
benefit of any member, founder, contributor, or individual; that the 
organization has a voluntary board; and that the organization practices 
nondiscrimination in the provision of assistance in accordance with 
applicable program requirements; and
    (iii) an opinion letter from an independent public accounting (IPA) 
firm that the nonprofit has a functioning accounting system that 
provides for each of the following:
    (A) Accurate, current, and complete disclosure of the financial 
results of each federally funded project;
    (B) Records that identify adequately the source and application of 
funds for federally funded activities;
    (C) Effective control over and accountability for all funds, 
property and other assets;
    (D) Comparison of outlays with budget amounts;
    (E) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the use 
of funds for program purposes;
    (F) Written procedures for determining reasonableness, allocable, 
and allowable costs; and
    (G) Accounting records including cost accounting records that are 
supported by source documentation.
    (2) We will also accept as evidence of your organization's HIV/
AIDS-related purpose, a copy of the organization's articles of 
incorporation and by-laws, mission statement, program management plan, 
or other organizational policy document which evidences the 
organization's activities or objectives related to providing services 
or housing to persons with HIV/AIDS.
    c. Capacity of Applicant and Project Sponsors and Relevant 
Organizational Experience Narrative. On no more than five double-spaced 
typed pages or similar chart or table for the Applicant, and no more 
than two double-spaced pages or similar chart or table per additional 
sponsor, demonstrate the extent to which you and any project sponsor(s) 
have the organizational resources necessary to successfully implement 
your proposed activities in a timely manner.
    d. Need/Extent of the Problem Narrative. On no more than five 
double-spaced typed pages or similar chart or table define your planned 
service area and demonstrate the need for funding eligible activities 
in the area to be served.
    e. Soundness of Approach: Model Qualities and Responsiveness/
Coordination Narrative. On no more than ten double-spaced typed pages 
or similar chart or table, address the method by which your plan meets 
your identified needs. Demonstrate how your project will provide its 
planned activities through HOPWA and other resources, and how it will 
serve as a model with exemplary qualities to address the ongoing 
housing and supportive service needs of eligible persons within a 
replicable operational framework.
    f. Documentation of Leveraged Resources. As described in paragraph 
4 of this section, to receive a leverage score for your project, 
provide a detailed chart of commitments that you have obtained and have 
on file that provides evidence of your ability to secure community 
resources for operating and sustaining your housing project.
    g. Achieving Results and Program Evaluation Narrative. To 
complement the use of the Logic Model form, in no more than three 
double-spaced typed pages or similar chart or table, provide a 
supplemental optional narrative that may detail or further demonstrate 
your commitment to ensuring that the goals that you set forth and your 
performance will be assessed in a clear and effective manner. Address 
how you will implement the HOPWA Program goals and identify the 
benefits or outcomes of your program including details on your 
activities, benchmarks, and interim activities or performance 
indicators shown in the Logic Model. Provide comments as may be needed 
on details for an evaluation plan that will objectively measure actual 
achievements against anticipated achievements.
4. Application Content on Leveraging for All Types of Applications
    To receive consideration for leveraged resources, all types of 
applications must include information on the commitments from other 
state, local, federal, or private entities to provide additional 
resources in operating and sustaining your planned activities to 
support project beneficiaries. Other HOPWA funds, such as formula 
allocations, may not be used for this purpose in determining 
leveraging. To receive a score for leveraging, any project must provide 
a list in a chart with information on the nature of the secured 
leveraged commitments that you have in hand at the time of your 
application submission to HUD. You may also describe a plan for how the 
project will continue to operate in future years, with a decreased 
reliance on these federal resources.
    As a change from prior year competitions, you should not submit an 
electronic copy or facsimile transmittal of these letters of commitment 
with your HOPWA application, but should use these letters or documents 
to report on the information requested below. The applicant must retain 
in its files all of the leveraging letters or documents and a 
conditionally-selected applicant may be required to provide HUD with a 
copy or other evidence of these letters or documents as part of the 
conditions for receiving HOPWA funds.
    In the application, provide information only for contributions for 
which you have a written commitment in hand at the time of application. 
A written agreement could include signed letters, memoranda of 
agreement, and other documented evidence of a firm commitment for 
resources to be available during the operating period of your project, 
if selected for award. Leveraging items may include any written 
commitments that will be used towards your leveraging of the project, 
as well as any written commitments for buildings, equipment, materials, 
services and volunteer time. The value of commitments of land, 
buildings and equipment are one-time only and cannot be claimed by more 
than one selected project (e.g., the value of donated land, buildings 
or equipment claimed in 2005 and prior years for a project that was 
selected for funding cannot be claimed as leveraging by that project in

[[Page 11980]]

subsequent competitions). The written commitments must be documented on 
letterhead stationery, signed by an authorized representative, dated 
and in your possession prior to the deadline for submitting your 
application.
    The Department will periodically monitor the use of your 
commitments by requiring the collection of information in annual 
progress reports to establish that the leveraged resources are being 
used, as committed, in undertaking the project. Failure to provide 
evidence of these commitments or the related use of these additional 
resources in operating your project could result in a notice of default 
and affect the project's continued access to federal funds awarded 
under this NOFA.

C. Submission Dates

    Application Deadline Date. Your completed application must be 
submitted, received and validated electronically by Grants.gov no later 
than 11:59:59 p.m. eastern time on the submission date for HOPWA found 
in the General Section. Failure to meet the appropriate submission and 
receipt date requirements will result in the application being 
ineligible for funding under this NOFA. Please follow the application 
submission and timely receipt requirements that are established in the 
General Section.
    All parts of an electronic application must be submitted via the 
Grants.gov portal with additional documentation as called for in this 
NOFA provided via electronic facsimile transmittal in accordance with 
the requirements stated in the General Section. For electronic 
applications, HUD will not accept parts of an application submitted 
through the mail or entire applications by facsimile. For applications 
receiving a waiver of the electronic application submission 
requirements, the entire application must be submitted in hard paper 
copy format with the required number of copies.

D. Intergovernmental Review

    The HOPWA program is not subject to Executive Order (EO) 12372, 
Intergovernmental Review of Federal Programs.

E. Funding Restrictions

1. Limitations on Maximum Grant Amounts
    Your request for funding must be consistent with the following 
limitations on minimum and maximum grant amounts:
    a. For program activities (e.g., activities that directly benefit 
eligible persons): At least $500,000 and a maximum of $1,300,000, 
subject to the limitations in this section;
    b. For grant administrative costs of the grantee: A maximum of no 
more than an additional $39,000, subject to the limit on administrative 
costs of three percent of the amount requested for project activities 
in your application for grantees.
    c. For grant administrative costs for project sponsors: A maximum 
of no more than an additional $91,000, subject to the limit on 
administrative costs of seven percent of the amount requested for 
project activities to be conducted by project sponsors in your 
application. (Note an applicant that will serve as a grantee, but 
carryout activities directly without a third-party project sponsor, 
cannot add amounts from this paragraph to its eligible amount under 
paragraph (b) above.)
    d. Total for maximum grant amount: $1,430,000, as subject to 
applicable limitations in this section and if funds are requested for a 
term of less than three years, HUD reserves the right to reduce these 
amounts in a proportionate manner.
2. Limitation on Supportive Services
    Your request for the supportive services line item in program 
activities must be consistent with the program limits of not more than 
35 percent of the proposed budget for program activities undertaken by 
project recipients. Consistent with the standards on Leveraging, of 
this NOFA, requests for supportive services must be leveraged with 
commitments to provide supportive services in order to qualify an 
applicant for the maximum leveraging score.
3. Limitation on Prospective Determinations
    HUD will not approve proposals that depend on a prospective 
determination as to how program funds will be used. More specifically, 
proposals to establish a local request-for-proposal process to select 
either activities or project sponsors, and other similar proposals that 
have the effect of delaying the obligation of funds due to the 
unplanned use of HOPWA funds, will not be approved.
4. Limitation on Ineligible Activities
    HUD will not provide funds under this notice for the purposes of 
conducting resource identification activities to establish, coordinate 
and develop housing assistance resources, and/or technical assistance 
for community residence activities, since these types of activities are 
funded through the national HOPWA technical assistance funds being made 
available under the Community Development Technical Assistance (CDTA) 
NOFA. HUD will not provide additional funds for data collection on 
project outcomes; as such activities in collecting performance data and 
reporting to HUD are required as a central grants management function, 
which is already covered under administrative costs. Further, eligible 
HOPWA costs do not involve costs for personal items, such as grooming, 
clothing, pets, financial assistance, consumer credit payments, 
entertainment activities, personal vehicle maintenance and repairs, 
property taxes, condominium fees and other non-housing-related costs. 
Eligible costs are also subject to additional HOPWA standards at 24 CFR 
Part 574.

F. Other Submission Requirements.

1. Electronic Delivery
    HUD requires applicants to submit applications electronically 
through www.grants.gov. See Section IV.F. of the General Section for 
instructions for submitting leveraging documentation, certifications, 
and other required forms.
2. Waivers to the Electronic Submission Process
    Applicants may request a waiver of the electronic submission 
process (see the General Section for more information). Applicants who 
are granted a waiver must submit their applications in accordance with 
the requirements stated in the approval to the waiver request. Please 
see the General Section for detailed mailing and delivery instructions.

V. Application Review Information

A. Criteria

1. Criteria for Project Applications
    a. Departmental Policy Priorities. As outlined in the General 
Section, HUD has identified policy priorities that project applicants 
are encouraged to address through their proposed project plans. HUD has 
identified five Departmental policy priorities as being applicable for 
new HOPWA projects. Applications for HOPWA funding will receive rating 
points for each applicable Department policy priority initiative 
addressed through the proposed program activities and performance goals 
and objectives. Applicants must demonstrate how these priorities will 
be addressed through the Soundness of Approach of the application as 
outlined under Rating Factor 3. Under the points available for Rating 
Factor 3, one or two Rating Points, as specified below, will

[[Page 11981]]

be awarded for each of the following addressed priorities:
    (1) In accordance with the General Section, for applicants seeking 
HOPWA funds for capital development activities, including 
rehabilitation or new construction, for one rating point under project 
soundness of approach, you are encouraged to institute visitability and 
universal design standards in these activities undertaken with HOPWA 
funds. Visitability standards allow a person with mobility impairments 
access into the home, but do not require that all features be made 
accessible; and such standards incorporate universal design in the 
construction or rehabilitation of housing undertaken with HOPWA funds. 
Universal design provides housing that is usable by all without the 
need for adaptation or specialized design.
    (2) For one rating point under project soundness of approach, you 
are encouraged to propose projects in which the grantee, or the project 
sponsor(s), fulfills the policy priority for being a nonprofit 
grassroots community-based organization, including faith-based 
organizations, as defined in the General NOFA.
    (3) For one rating point under project soundness of approach, you 
are encouraged to propose applications in which the grantee, or project 
sponsor(s), commits to follow the Energy Star standard in any new 
construction, or rehabilitation activity, or maintaining housing or 
community facilities to be undertaken in the proposed project with 
HOPWA or other funds. You are encouraged to undertake program 
activities that include developing energy star promotional and 
information materials, providing outreach to low- and moderate-income 
renters and buyers on the benefits and savings when using Energy Star 
products. The Energy Star standard is as defined in the General 
Section.
    (4) For up to two rating points under project soundness of 
approach, you are encouraged to propose an application in which the 
grantee, or project sponsor(s), if it is a state or local government 
agency, as defined in the General Section, completes the regulatory 
barriers policy questionnaire and provides the required documentation 
or provides a website URL where the information can be readily found.
    (5) For up to two rating points under project soundness of 
approach, you are encouraged to propose an application in which the 
grantee or project sponsor(s) demonstrate in their applications how 
they were incorporating Section 3 principles into their projects with 
goals for expanding opportunities for Section 3 residents and business 
concerns. As defined in Section V of the General Section, the purpose 
of Section 3 is to ensure that employment and other economic 
opportunities generated by federal financial assistance for housing and 
community development programs, shall, to the greatest extent feasible, 
be directed toward low and very-low income persons.
    b. Program Policies--Target Population. Prior to the award of other 
projects, HUD reserves the right to select the two highest rated 
applications (but not any that are rated at less than 75 points) that 
demonstrate that the planned HOPWA activities and activities supported 
by leveraged funds will serve the special population of HOPWA eligible 
person who are chronically homeless persons with HIV/AIDS. Persons who 
are infected with HIV are more likely to be able to follow complex 
treatment regimens if they have a reliable address where they can be 
reached by care providers, a safe place to keep medications, 
refrigeration for drugs that require it, and other necessities that 
many of us take for granted. HUD is encouraging applications that 
strive to create additional models for permanent housing for eligible 
persons living with HIV/AIDS that are experiencing chronic 
homelessness. Applicants must work collaboratively with the local 
Continuum of Care Plans to create these models for persons living with 
HIV/AIDS and their families and demonstrate a plan for the integration 
of HOPWA activities with those systems such as the use of HMIS. HMIS 
participation is required for all recipients of award funding under 
this NOFA whose projects intentionally target HOPWA eligible persons 
who are homeless or chronically homeless. In a number of Continuum of 
Care communities, HOPWA projects are directly involved in providing 
outreach, assessment, housing and supportive services to HOPWA eligible 
persons who are homeless at the time they enter into program support. 
HMIS activities or the use of related information technology systems 
may already be operating to support the delivery of housing information 
services to these HOPWA clients.
    c. Application Selection Process for Projects
Rating Factor 1: Capacity of the Applicant and Project Sponsors and 
Relevant Organizational Experience (20 Points) (Minimum for Funding 
Eligibility--14 Points)
    Address the following factor using not more than five (5) double-
spaced, typed pages or similar chart or table. For each project 
sponsor, you may add two additional pages. This factor addresses the 
extent to which you and any project sponsor have the organizational 
resources necessary to successfully implement your proposed activities 
in a timely manner. If you will be using project sponsor(s) in your 
project, you must identify each project sponsor in your application. 
HUD will award up to 20 points based on your and any project sponsor's 
ability to develop and operate your proposed program in relation to 
which entity is carrying out an activity.
    1. With regard to both you and your project sponsor(s), you should 
demonstrate:
    (a) Past experience and knowledge in serving persons with HIV/AIDS 
and their families;
    (b) Past experience and knowledge in programs similar to those 
proposed in your application including HOPWA formula funding;
    (c) Experience and knowledge in monitoring and evaluating program 
performance and disseminating information on project outcomes; and
    (d) Past experience as measured by expenditures and measurable 
progress in achieving the purpose for which funds were provided.
    2. In reviewing the elements of the paragraph above, HUD will 
consider:
    (a) The knowledge and experience of the proposed project director 
and staff, including the day-to-day program manager, consultants, and 
contractors in planning and managing the proposed activities. You and 
any project sponsor will be judged in terms of recent, relevant, and 
successful experience of staff in undertaking eligible program 
activities.
    (b) Your and/or the project sponsor's experience in managing 
complex interdisciplinary programs, especially those involving housing 
and community development programs directly relevant to the work 
activities proposed and carrying out grant management responsibilities.
    (c) If you and/or the project sponsor received funding in previous 
years in the program area for which you seek funding, those past 
experiences will be evaluated in terms of the ability to attain 
demonstrated measurable progress in the implementation of your grant 
awards. Measurable progress is defined as:
    (i) Meeting applicable performance benchmarks in program 
development and operation;
    (ii) Meeting project goals and objectives, such as the HOPWA output 
for number of homeless assisted in

[[Page 11982]]

comparison to the number that was planned at the time of the 
application;
    (iii) Submitting timely performance reports; and
    (iv) Expending prior funding as outlined in the existing HOPWA 
grant agreement with HUD with no outstanding audit or monitoring 
issues.
    Applicants must receive a minimum of 14 points in Rating Factor 1 
to be eligible for funding under this NOFA.
Rating Factor 2: Need/Extent of the Problem (15 Points)
    Address the following factor using not more than five (5) double-
spaced, typed pages or similar chart or table. Up to 15 points will be 
awarded for this factor.
    a. AIDS Cases (5 Points). You must define your planned service 
area. HUD will obtain AIDS surveillance information pertinent to that 
area from the Director of the Centers for Disease Control and 
Prevention. Up to five points will then be awarded based on the 
relative numbers of AIDS cases and per capita AIDS incidence within 
your service area, in metropolitan areas of over 500,000 population and 
in areas of a state outside of these metropolitan areas, in the state 
for proposals involving state-wide activities, and in the nation for 
proposals involving nation-wide activities.
    b. Description of Unmet Housing Need (10 Points). Up to ten points 
will be awarded based on demonstration of need for funding eligible 
housing activities in the area to be served. To receive the maximum 
points, demonstrate that substantial housing and related service needs 
of eligible persons and/or the target population, as outlined in 
Section V.A., are not being met in the project area and that reliable 
statistics and data sources (i.e. Census, health department statistics, 
research, scientific studies, and Needs Analysis of Consolidated Plan 
and/or Continuum of Care documentation) show this unmet need. To 
receive the maximum points, show that your jurisdiction's Consolidated 
Plan and Analysis of Impediments to Fair Housing Choice, Continuum of 
Care Homeless Assistance plans (if homeless persons are to be served), 
and comprehensive HIV/AIDS housing plans are applicable to your project 
and identify the level of the problem and the urgency of the need.
    (1) If you apply for a SPNS grant, you must describe a housing need 
that is not currently addressed by other projects or programs in the 
area including reference to the area's existing HOPWA programs. You 
must further describe how the planned activity will complement these in 
a manner that is consistent with the community's plan for a 
comprehensive and coordinated approach to housing needs of persons 
living with HIV/AIDS which establishes stable housing for clients and 
helps foster greater self sufficiency and independence. Also, describe 
any unresolved or emerging issues and the need to provide new or 
alternative forms of assistance that, if provided, would enhance your 
area's programs for housing and related care for persons living with 
HIV/AIDS and their families. You must also describe how your project 
will enhance the community's Consolidated Plan strategies for providing 
affordable housing and access to related mainstream services to HOPWA 
eligible persons; or
    (2) If you apply as a Long-term project that will operate in a non-
formula area or balance of state area, you must describe the housing 
need that is not currently addressed by other projects or programs in 
the area including any HOPWA competitive grants or other HIV/AIDS 
housing projects and how the planned activity will complement these in 
a manner that is consistent with the community's plan for a 
comprehensive and coordinated approach to housing needs of persons 
living with HIV/AIDS. You must also describe any unresolved or emerging 
issues and/or the need to provide forms of assistance that enhances the 
community's strategy for providing housing and related services to 
eligible persons.
    HUD will evaluate your presentation of statistics and data sources 
based on soundness, reliability, and the specificity of information to 
the target population and the area to be served. If you propose to 
serve a subpopulation of eligible persons on the basis that these 
persons have been traditionally and are currently underserved (e.g., 
persons with multiple disabilities including AIDS or chronically 
homeless eligible persons), your application must demonstrate the need 
for this targeted effort through statistics and data sources that 
support the need of this population in your service area. Programs may 
serve a qualified subpopulation of persons with AIDS based on the 
presence of another disability or group of disabilities, only if doing 
so is necessary to provide this subpopulation with as effective 
housing, benefits, aid, or services as that provided to others. See 24 
CFR 8.4(b)(1)(iv).
Rating Factor 3: Soundness of Approach: Responsiveness, Coordination 
and Public Policy Priorities, and Model Qualities (45 Points)
    Address this factor on not more than ten (10) double-spaced, typed 
pages or similar chart or table. Include the HOPWA Budget Forms found 
in Appendix A. This factor addresses the method by which your plan 
meets your identified needs. HUD will award up to 45 points (15 for 
responsiveness, 5 for coordination, 7 for public policy priorities, and 
18 for model qualities) based on the extent to which your plan 
evidences a sound approach for conducting the HOPWA activities in a 
manner that is responsive to the needs of eligible persons and that 
your plan for project coordination will offer model qualities in 
providing supportive housing opportunities for eligible persons with 
access to mainstream health and human welfare services, when compared 
to other applications and projects funded under previous HOPWA 
competitions.
    a. Responsiveness, Coordination, and Public Policy Priorities (25 
Points). HUD will award up to 25 points (Responsiveness--15 Points and 
Coordination--5 Points and Public Policy Priorities--7 Points) based on 
how well your project plans respond to the unmet needs in housing and 
related supportive services for the eligible population, including 
target populations outlined under Section V.A. You should demonstrate 
the extent to which you have coordinated your activities and the 
activities of your project sponsors with other organizations that are 
not directly participating in your proposed work activities. This 
involves organizations with which you share common goals and objectives 
in assisting eligible persons. In order to ensure that resources are 
used to their maximum effect within the community, it is important that 
you demonstrate collaboration and leveraging of other resources from 
state, local, and private funding resources.
    (1) Responsiveness (15 Points). To receive the highest rating in 
this element your application must address:
     The projected number of persons to be served through each 
activity for each year of your program;
     The projected number of housing units, by type, to be 
provided through your project, by year, over a 3-year period; and
     The specific organizations, either through an agreement 
with your organization or through funding from your project, that will 
provide housing, and agreements with organizations that will provide 
mainstream supportive services, or other activities.
    Include a description of the roles and responsibilities of your 
project sponsors and/or other organizations within your project plan 
and how these will be coordinated in conducting eligible

[[Page 11983]]

activities. To receive the maximum points for your project plan, you 
must explain and describe the eligible housing activities you or your 
project sponsor intend to conduct, where these activities will take 
place (either on site or at another location), and how those activities 
will benefit eligible persons. Please describe:
    (a) Housing Activities. You must demonstrate how the emergency, 
transitional, or permanent housing needs of eligible persons will be 
addressed through one or more of the HOPWA eligible activities and 
through any other resources and how such activities are coordinated 
with other available housing assistance. Your plan for housing 
assistance must include:
    (i) Access to permanent supportive housing for applicants. In 
proposing a housing project, you must describe how eligible persons 
will access permanent housing and/or use emergency, short-term and 
transitional housing support through your project and through any 
specific commitments with other community housing providers. If your 
project involves some initial emergency or transitional assistance for 
clients, please describe your plans to facilitate the movement of 
eligible persons receiving this emergency or transitional housing 
support to permanent housing or independent living arrangements within 
24 months.
    (ii) Permanent housing placement. If you use funds to help 
beneficiaries secure new housing units, please describe your plans to 
use funds and the related housing outputs for these permanent housing 
placement services (under that budget line item) such as costs for 
first month's rent and security deposits;
    (iii) Description of Housing Site. You must describe any 
appropriate site features including use of universal design, 
accessibility, visitability, and access to other community amenities 
associated with your project.
    (iv) Development and Operations Plan. You must describe a 
development and/or operations plan for the emergency, transitional, or 
permanent housing assistance you are proposing to provide. For rental 
assistance programs, this will include your plan for providing rental 
assistance, proposed housing sites if project-based, and length of stay 
if less than ongoing permanent supportive housing. If you are proposing 
to use HOPWA funds for the acquisition, rehabilitation, or new 
construction of a housing facility, your plan must also document that 
you have secured other funding sources, including plans for 
coordinating the use of other resources that are committed to meeting 
leveraging, have significant progress on an identified and secured 
project site(s), and must provide rehabilitation/construction timelines 
consistent with the three year use of grant funds. The project must be 
cost effective, including costs not deviating substantially from the 
norm in that locale for the type of structure or kind of activity. 
HOPWA funds are not intended for use as the initial or sole funding 
source for capital development housing projects.
    (v) Operational Procedures. Describe your outreach, intake, 
engagement and assessment procedures, as well as how eligible persons 
will receive housing support with access to medical care and other 
supportive services provided by other organizations. Describe the use 
of housing being funded from other sources, and how your project 
provides for ongoing assessments of the housing service benefits 
received by eligible persons. Include a description of how a client 
moves through the housing program from outreach, intake, client 
assessment, the delivery of housing services, the use of emergency, 
transitional, or permanent housing, and when appropriate, the 
outplacement to more self-sufficient independent housing. If persons 
who are homeless are to be assisted, including persons who are 
chronically homeless, describe the housing activities and necessary 
support to identify, prioritize and respond to their supportive housing 
needs in coordination with other area assistance for persons who are 
homeless. Also address the number of permanent housing beds for the 
chronically homeless that would become available for occupancy during 
each of your project operating years.
    (b) Supportive Service Activities. You must describe how the 
supportive service needs of eligible persons will be addressed with 
HOPWA assistance (subject to applicable limitations) and the use of any 
additional leveraged resources by describing the type of supportive 
services that will be offered directly by the program and/or how 
agreements and project plans will assure that services will be accessed 
and coordinated from other mainstream health and human welfare sources. 
Explain the connection of these services in helping eligible persons 
obtain and/or maintain stable housing. Supportive service costs may 
represent no more than 35 percent of your proposed budget for program 
activities. In describing your supportive services delivery plan 
explain:
    (i) How agreements provide that eligible persons will have access 
to mainstream programs that offer healthcare and other supportive 
services;
    (ii) How project plans ensure that eligible persons will 
participate in decision making in the project operations and 
management; and
    (iii) Your plan for delivering supportive services through a 
comprehensive plan that shows how agreements provide that eligible 
persons access medical care and other mainstream supportive services to 
address their needs.
    (c) Additional HOPWA Activities. You must describe your plan for 
utilizing other requested HOPWA funds (described at 24 CFR 574.300(b)). 
Explain how these activities will be integrated into your overall plan 
in the provision of housing and related supportive services to eligible 
persons.
    (d) Other Approvable Activities. As authorized by statute, HUD may 
approve other activities that are in addition to the activities at 24 
CFR574.300(b). You may propose other activities in your application, 
which can be undertaken only if approved by HUD due to their relevance 
in addressing the housing needs of eligible persons. You must describe 
the reason for the need to request authorization for ``other 
activities'' and the benefits likely to occur if the activities are 
authorized. Also address how the project would operate, or not, if such 
request were not approved.
    (2) Coordination (5 Points). You should demonstrate the extent to 
which you have coordinated your activities and the activities of your 
project sponsors with other organizations that are not directly 
participating in your proposed work activities. This involves 
organizations for which you share common goals and objectives. You may 
provide information on your primary decision-making group in providing 
leadership to your efforts as well as other organizations participating 
in planning activities, such as committees, workgroups, public 
meetings, forums etc. and the frequency of meetings. You will be rated 
on the extent to which you demonstrate you have:
    (a) Coordinated your proposed activities with those of other groups 
or organizations within the community or region prior to submission, to 
best complement, support, and coordinate all housing and supportive 
service activities including specific reference to how the proposal is 
coordinated with existing HOPWA programs in that area (formula and 
competitive) and how the planned efforts complement the existing 
programs;
    (b) Developed your project through consultation with other 
stakeholders,

[[Page 11984]]

such as organizations, groups, or consumers involved with area HIV/AIDS 
housing and service planning, including planning under the Ryan White 
CARE Act and other federal planning. The highest rated applicant will 
demonstrate that the project is closely and fully integrated with HUD's 
planning processes, such as the jurisdiction's Consolidated Planning 
process or the community's Continuum of Care Homeless Assistance 
planning process (if homeless persons are to be served by proposed 
activities and related use of Homeless Management Information Systems 
(HMIS) to coordinate benefits for clients);
    (c) Coordinated with other HUD-funded programs outside of the 
Consolidated Planning process, for example, accessing additional 
housing resources through a local public housing authority; and
    (d) Coordinated with mainstream resources including private, other 
public, and mainstream services and housing programs. To achieve the 
maximum points, applicants must evidence explicit agency strategies to 
coordinate client assistance with mainstream health, social service and 
employment programs for which eligible persons may benefit.
    (3) Public Policy Priorities (7 points). Applications for HOPWA 
funding will receive rating point(s) for each applicable Department 
policy priority initiative addressed through the proposed program 
activities and performance goals and objectives. Applicants must make a 
specific statement on their commitment to address the priority or 
otherwise demonstrate how these priorities will be addressed:
    (a) In accordance with the General Section, for applicants seeking 
HOPWA funds for capital development activities, including 
rehabilitation or new construction, for one rating point under project 
soundness of approach, your application describes the use of universal 
design and visitability standards in development activities undertaken 
with HOPWA funds and incorporate universal design in the construction 
or rehabilitation of housing undertaken with HOPWA funds. Visitability 
standards allow a person with mobility impairments access into the 
home, but do not require that all features be made accessible. 
Universal design provides housing that is usable by all without the 
need for adaptation or specialized design.
    (b) For one rating point under project soundness of approach, your 
application involves participation as the grantee, or as a project 
sponsor(s), by a non-profit grassroots community-based organization, 
including faith-based organizations, as defined in the General Section.
    (c) For one rating point under project soundness of approach, the 
grantee, or project sponsor(s), commits to promote energy efficiency by 
adopting or following the Energy Star standard in any new construction 
or rehabilitation activity or in maintaining housing or community 
facilities to be undertaken in the proposed project with HOPWA or other 
funds. The Energy Star standard is as defined in the General Section.
    (d) For two rating points under project soundness of approach, your 
application involves an state or local government agency as the 
grantee, or as a project sponsor(s), and that agency completes the 
regulatory barriers policy questionnaire, including providing the 
required documentation, as defined in the General Section.
    (e) For up to two rating points under project soundness of 
approach, your application demonstrates how you are incorporating 
Section 3 principles into your project with goals for expanding 
employment and other opportunities for Section 3 residents who are low 
and very-low income persons, and related business concerns, as defined 
in Section V of the General Section,
    b. Model Qualities (18 Points). HUD will award up to 18 points 
based on your service delivery plan and how well it will serve as a 
model for a housing project during the operating period. HUD expects 
the proposed project to show exemplary and/or innovative qualities that 
address the ongoing housing needs of eligible persons by establishing 
or maintaining stable housing arrangements by project activities that 
will be undertaken within a replicable operational framework. To 
receive the maximum points, you must offer a housing plan that 
describes the following:
    (1) Policy Priorities. If applicable to your application, describe 
how you will meet the Departmental policy priorities for assisting the 
special population of HOPWA eligible persons who are chronically 
homeless persons with HIV/AIDS. HUD is encouraging applications that 
strive to create additional models for permanent housing for persons 
living with HIV/AIDS that are experiencing chronic homelessness. 
Applicants addressing this population must work collaboratively with 
the local Continuum of Care Plans to create this permanent housing for 
persons living with HIV/AIDS and their families.
    (2) Project Management and Oversight. Describe your method for 
managing and overseeing activities, including those of your 
organization, your project sponsor, and any other organization. 
Identify staff members who are responsible for management and oversight 
of the project and activity implementation and sustainability plans.
    (3) Evaluation Plan. In addition to required HOPWA outputs and 
outcomes your evaluation plan should identify what you are going to 
measure, how you are going to measure it, the steps you have in place 
to make adjustments to your work plan if performance targets are not 
met within established timeframes, and how you plan to share successes 
and lessons learned in undertaking your activities with other 
communities.
    (4) Model Features. Describe how the planned efforts for the type 
of proposed project, Long-term or SPNS, will represent model or 
exemplary qualities in service delivery, management, or other features 
in connection with other HOPWA funded projects in your community 
including any local assessment of these features. For a Long-term 
project, the features must involve housing activities to be undertaken 
in a non-formula area. A SPNS project must involve a plan and 
commitments to establish or maintain stable housing arrangements by 
showing exemplary and/or innovative qualities. If you propose a new 
program, or an alternative method of meeting the needs of your eligible 
population, describe how the innovative qualities of your activities 
will result in knowledge gained or lessons learned for achieving 
greater housing opportunities and supportive services for persons 
living with HIV/AIDS. HUD will rate your application higher if you 
provide strong evidence that your methods will yield qualities that 
will benefit or expand knowledge in serving eligible persons, when 
compared to other applications and HOPWA projects. To learn about 
qualities of previously funded and ongoing HOPWA projects, you may 
review the HOPWA Executive Summaries for HOPWA grantees at http://www.hud.gov/offices/cpd/aidshousing.
    (5) Model Descriptive Budget. HUD will review your budget under the 
HOPWA budget form (HUD-40110-B) in describing:
    (a) How each amount of requested funding for you and your project 
sponsors will be used and the related use of leveraged resources;
    (b) How each line item will relate to your description of planned 
eligible HOPWA activities; and
    (c) The clarity and completeness of your summary statement of the 
planned

[[Page 11985]]

activities for your project by budget line item and the use of any 
leveraged funds or other resources by the grantee and sponsor(s).
    You must complete the HOPWA Project Budget Form as described above.
Rating Factor 4: Leverage and Sustainability (10 Points) (Minimum for 
Funding Eligibility 1 Point)
    This factor addresses your ability to secure community resources 
that can be combined with HUD's funds to achieve program purposes and 
to ensure sustainability of the housing efforts. HUD will award up to 
10 points based on the extent to which resources from other state, 
local, federal, or private resources are listed with the required 
elements to demonstrate that these funds are committed at the time of 
application to support and sustain your project. To receive the highest 
leveraging points based on the amount of commitments, up to 8 points, 
you must provide information on the commitment of other resources that 
at least equal the amount of the HOPWA request for program activities 
(not including administrative costs) as part of your plan to operate 
this project over the next three year period. Applications must receive 
a minimum of 1 point in this Rating Factor to demonstrate the 
commitment of other resources to be eligible for funding under this 
NOFA with the standards described in Section IV(B)4 on Leveraging. 
Applicants will be awarded points based on the content of a list or 
chart for the commitments with the following information: the name and 
address of the organization(s) providing the commitment(s) (note if the 
organization will serve as a project sponsor); the type of commitment 
(applicant or third party cash resources, non-cash resources, volunteer 
time, contribution of a building, contribution of lease hold interest); 
the dollar value of the commitment; the date of the commitment letter 
or other document; the source of the funding, such as federal, state, 
local, private or in-kind contributions; and the organization's 
authorized representative's name, title, and contact information who 
has made this commitment. For up to two additional points, the 
application must address the project's sustainability as shown in a 
plan for obtaining and coordinating identified resources to be more 
financially self-sustaining. The highest rated plan will show how the 
project will decrease dependency on federal funding at the end of the 
operating period and rely more on state, local, and private funding to 
continue support for beneficiaries.
Factor 5: Achieving Results and Program Evaluation (Maximum 10 Points)
    Address this factor in your Logic Model (and optionally in a 
supplemental related narrative) on not more than three additional (3) 
double-spaced, typed pages or similar chart or table. Under this 
factor, HUD will award 10 points based on how well your application 
demonstrates a commitment to ensuring that the goals that you set forth 
and your performance will be assessed in a clear and effective manner. 
HUD will analyze how well you have clearly implemented the required 
HOPWA program output and outcome goals and identified other stated 
benefits or outcomes of your program including your activities, 
benchmarks, and interim activities or performance indicators with 
timelines. HUD will award the highest points to applications that 
demonstrate an evaluation plan that will objectively measure actual 
achievements against anticipated achievements.
    The highest rated applications will have a clear plan to address 
the HOPWA client outcome goals increase the amount of housing 
assistance provided to eligible persons, to establish or maintain 
housing stability, reduce the risks of homelessness for eligible 
persons, and improve access to healthcare and other support. The 
application may also optionally address other related indicators of 
relevant outcomes.
    The highest rated applications will also have a clear plan to use 
the HOPWA housing output measures--the projected number of households 
to be assisted in HOPWA supported housing units by type (tenant-based 
rental assistance, STRMU payments and assistance in housing facilities) 
to be provided to eligible households through your project during each 
project-operating year. The application may also optionally address 
other related outputs.
    Your application must include the Logic Model form (HUD-96010) to 
receive any points under this factor.

B. Reviews and Selection Process

1. HOPWA Project Applications
    a. Threshold Reviews. HUD will review your HOPWA application to 
ensure that it meets the threshold requirements found in the General 
Section and Section III.C of this NOFA pertaining to a request for a 
Long-term project or a SPNS project.
    b. HUD Reviews. HUD staff will conduct this review, including staff 
from Community Planning and Development at Headquarters and HUD's state 
and area Field Offices.
    c. Procedures for the Rating and Selection of Applications. HUD 
will rate all HOPWA applications based on the factors listed above. The 
points awarded for the factors total 100. In addition, HUD will award 
two bonus points to each application that includes a valid form HUD-
2990 certifying that the proposed activities/projects in the 
application are consistent with the strategic plan for an empowerment 
zone (EZ) designated by HUD or the United States Department of 
Agriculture (USDA), the tax incentive utilization plan for an urban or 
rural renewal community designated by HUD (RC), or the strategic plan 
for an enterprise community designated in Round II by USDA (EC-II) and 
that the proposed activities/projects will be located within the RC/EZ/
EC-II identified above and are intended to serve the residents. A 
listing of the RC/EZ/EC-IIs is available on the Internet at 
222.hud.gov/cr. This notice contains the certification form HUD-2990 
that must be completed for the applicant to be considered for RC/EZ/EC-
II bonus points. Whether your HOPWA application is conditionally 
selected will depend on your overall ranking compared to other 
applications within each of the two categories of assistance, Long-term 
projects or SPNS projects, and the amount of funds that are available 
to be awarded by this competition. Funds made available from federal 
Fiscal Year 2006 must first be used to fund the priority selection of 
expiring competitive projects that undertake permanent supportive 
housing activities (as a change from prior years, renewal applicants 
are not part of this NOFA process and will be conducted by HUD by a 
separate action). If any such funds remain after renewal actions are 
funded, then the funds will be used under this NOFA competition to fund 
additional projects. HUD will select applications in rank order in each 
category of assistance (Long-term and SPNS) to the extent that funds 
are available, except as outlined in this Program NOFA, where HUD 
reserves the right to select applications that target the priority 
eligible populations to ensure selection of two projects addressing the 
housing needs of persons who are chronically homeless. In allocating 
amounts to the categories of assistance, HUD reserves the right to 
ensure that sufficient funds are available for the selection of at 
least one application with the highest ranking under each category of 
assistance. HUD will not select an application that is rated below 75 
points, nor will an

[[Page 11986]]

application be funded if it receives a Rating Factor 1--Capacity score 
lower than 14 points or Rating Factor 4--Leveraging score lower than 
one point.
    In the event of a tie between applications in a category of 
assistance, HUD reserves the right to break the tie by selecting the 
proposal that was scored higher on a rating criterion in the following 
order: Rating Factor 3; Rating Factor 5; Rating Factor 1; Rating Factor 
2; and Rating Factor 4.

C. Anticipated Announcement and Award Dates

    The anticipated announcement of the projects selected under this 
notice is no later than August 30, 2006.

VI. Award Administration Information

A. Award Notices

1. Applicant Notification
    HUD will notify the eligible applicants of their conditional 
selection or rejection for awards by email or by a letter to be mailed 
to the applicant's authorized official at the address or email address 
provided in your application. For conditionally selected applicants, 
the CPD Division of HUD's state or area office will provide a second 
letter with a copy of a proposed grant agreement along with 
instructions on any adjustments to the grant amount requested and other 
conditions identified during the review for conducting planned 
activities and on the close out of the current grant.
2. Award Modifications
    After reviewing each application, HUD reserves the right to take 
each of the following actions:
    a. HUD reserves the right to make award adjustments as outlined in 
Section IV.A.2, Adjustments to Funding, of the General Section.
    b. In the event that a conditionally-selected applicant is unable 
to meet any conditions for funding within the specified time, HUD 
reserves the right not to make an award to that applicant. In the event 
that a conditionally-selected applicant is continuing to operate under 
the prior grant, and has sufficient funds to continue current 
operations for at least six months following the date of notification 
of selection, HUD may take any of the following actions: (i) Follow 
procedures to terminate the prior grant and recapture remaining funds 
after this date, consistent with the terms of the applicable grant 
agreement and 24 CFR 574.500(c); or (ii) adjust the amount of the new 
award by the amount of funds remaining after this date in the prior 
grant.
    c. In making an award to the final selected project (by order of 
ranking), HUD may offer less than the full amount requested by an 
applicant that had received sufficient points to be selected, but for 
which there are insufficient funds remaining to provide the full 
funding request. HUD may also use funds from an award reduced under 
item b, above, to restore amounts to a funding request that had been 
reduced in this competition due to the application's lower rating 
status;
    d. If an applicant turns down an award, an award is not made, or if 
there are sufficient award adjustments to make additional awards 
feasible, HUD reserves the right to: (a) Offer an award to the next 
highest rated application(s) in this competition in their rank order; 
(b) add remaining or recaptured amounts to the funds that become 
available for a future competition; or (c) restore amounts to a funding 
request that had been reduced in this competition.
3. Applicant Debriefing
    Applicants requesting to be debriefed must send a written request 
to: Department of Housing and Urban Development; Attention: Office of 
HIV/AIDS Housing; 451 Seventh Street, SW., Room 7212; Washington, DC 
20401-7000. Telephone number is (202) 708-1934. Persons with hearing or 
speech challenges may access the above number via TTY (text telephone) 
by calling the Federal Information Relay Service at 800-877-8339 (this 
is a toll-free number). Additional information regarding debriefing can 
be found in the General Section.

B. Administrative and National Policy Requirements

    1. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Toward Government Contractors' Labor Relations on 
Federal and Federally Funded Contract Projects. See the General Section 
for the information on how to meet this requirement.
    2. Procurement of Recovered Materials. See the General Section for 
the information on how to meet this requirement.

C. Reporting

1. Six-Month Report
    For any new project (i.e. a conditionally-selected applicant that 
has not previously received a HOPWA competitive grant), you must 
provide an initial report to the Field Office and HUD Headquarters on 
the startup of the planned activities within six months of your 
selection. Your report must outline your accomplishments and identify 
any barriers or issues for which the Department may provide assistance 
on the start-up on your new award.
2. Measuring Performance
    You must report after each year of operation on the annual 
accomplishments of your projects under the HOPWA Annual Progress Report 
(form HUD-40110-B), comparing your results to proposed plans, including 
reporting under the required HOPWA Performance Goals including 
reporting on annual housing outputs and client outcomes in achieving 
housing stability, reduced risks of homelessness, and improved access 
to healthcare and other needed support. For each reporting period, you 
must provide a completed Logic Model showing progress to date against 
projected outputs and outcomes contained in your approved grant 
agreement. In addition, on an annual basis, you must respond to the 
management questions in the Program Logic Model found as an appendix to 
this program Section. HUD will use these reports and information 
obtained from HUD financial systems, along with any remote or on-site 
monitoring, to measure your progress and achievements in evaluating 
your performance on your HOPWA grant.
3. Beneficiary Information
    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 one of the following:
     HUD-27061, Racial and Ethnic Data Reporting Form 
(instructions for its use) found on www.HUDclips.org;
     A comparable program form (HOPWA--Annual Performance 
Report (APR) form HUD-40110-C); or
     A comparable electronic data system for this purpose.

VII. Agency Contacts

A. For Further Information and Technical Assistance (TA)

    For technical assistance in downloading an application package from 
Grants.gov/Apply, contact the Grant.gov help desk at 800-518-Grants or 
by sending an e-mail to [email protected]. For programmatic 
information, you may contact the HUD field office serving your area. 
You can find the telephone number for the State or Area Office of 
Community Planning and Development on HUD's Web site: www.hud.gov/
offices/adm/grants/

[[Page 11987]]

fundsavail.cfm. HUD staff may assist with program questions, but may 
not assist in preparing your application. Persons with hearing or 
speech challenges may access the above number via TTY (text telephone) 
by calling the toll-free Federal Information Relay Service at 800-877-
8339.

B. Seeking Technical Assistance (TA) in Developing a HOPWA Application

    HOPWA TA providers may not provide technical assistance in the 
drafting of responses to HUD's NOFA due to the unfair advantage such 
assistance gives to one organization over another. If HUD determines 
that HOPWA technical assistance has been used to draft a HOPWA 
application, HUD reserves that right to reject the application for 
funding. If, after your application has been selected for an award, HUD 
determines that HOPWA technical assistance was used to draft your 
application, the award will be withdrawn and you may be liable to 
return to HUD any funds already spent.

C. Satellite Broadcast

    HUD will hold information broadcasts via satellite for potential 
applicants to learn more about the program and preparation of the 
application. For more information about the date and time of the 
broadcast, you should consult the HUD Web site at www.hud.gov/grants.

VIII. Other Information

Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned 
OMB control number 2506-0133. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 413 hours per annum per respondent for the application and 
grant administration. This includes the time collecting, reviewing, and 
reporting the data for the application, semi-annual reports and final 
report. The information will be used for grantee selection and 
monitoring the administration of funds. Response to this request for 
information is required in order to receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 11988]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.027


[[Page 11989]]



Assisted Living Conversion Program (ALCP) for Eligible Multifamily 
Housing Projects

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Housing Assistance and Grant Administration.
    B. Funding Opportunity Title: The Assisted Living Conversion 
Program for Eligible Multifamily Projects.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The OMB Approval Number is: 2502-
0542. The Federal Register number for this NOFA is 5030-N-18.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: The 
Assisted Living Conversion Program for Eligible Multifamily Housing 
Projects is 14.314.
    F. Dates: Application Deadline Date: June 15, 2006.
    G. Optional, Additional Overview Content Information: The purpose 
of this program is to provide grants for the conversion of some or all 
of the dwelling units in an eligible project into assisted living 
facilities (ALFs) for frail elderly persons. Private nonprofit owners 
of eligible developments interested in applying for funding under this 
grant program should carefully review the General Section and the 
detailed information listed in this NOFA. Funding will only be provided 
for those items related to the conversion. There is no separate 
Application Kit for this NOFA.
    The ALCP will fund those applications that may impact federal 
problem solving and policymaking and that are relevant to HUD's policy 
priorities and annual goals and objectives. (Refer to the General 
Section for discussion of these priorities and annual goals and 
objectives.)

Full Text of Announcement

I. Funding Opportunity Description

    Program Description. Assisted living facilities (ALFs) are designed 
to accommodate frail elderly persons and people with disabilities who 
need certain support services (e.g., assistance with eating, bathing, 
grooming, dressing, and home management activities). ALFs must provide 
support services such as personal care, transportation, meals, 
housekeeping, and laundry. Frail elderly person means an individual 62 
years of age or older who is unable to perform at least three 
activities of daily living (ADLs) as defined by the regulations for 
HUD's Section 202 Program (Supportive Housing for the Elderly) at 24 
CFR 891.205. Assisted living is defined in section 232(b)(6) of the 
National Housing Act (12 U.S.C. 1715w).
    The ALCP provides funding for the physical costs of converting some 
or all of the units of an eligible multifamily development into an ALF, 
including unit configuration and related common and services space and 
any necessary remodeling, consistent with HUD or the state's statute/
regulations (whichever is more stringent). Typical funding will cover 
basic physical conversion of existing project units, as well as related 
common and services space. There must be sufficient community space to 
accommodate a central kitchen or dining facility, lounges, recreation, 
and other multiple-areas available to all residents of the project, or 
office/staff spaces in the ALF. When food is prepared at an off-site 
location, the preparation area of the facility must be of sufficient 
size to allow for the installation of a full kitchen, if necessary. You 
must provide supportive services for the residents either directly or 
through a third party. Your application must include a firm commitment 
for the supportive services to be offered within the ALF. You may 
charge assisted living residents for meals and/or service fees. 
Residents may contract with third party agencies directly for nursing, 
therapy, or other services not offered by the ALF.

    Authority. The Assisted Living Conversion Program is authorized 
by Section 202(b) of the Housing Act of 1959 (12 U.S.C. 1701q-2) and 
the Transportation, Treasury, Housing and Urban Development, the 
Judiciary, the District of Columbia, and Independent Agencies 
Appropriations Act, 2006, (Public Law 109-115, approved November 30, 
2005) which provides $24,800,000 for the conversion of eligible 
projects to assisted-living or related use and for emergency 
repairs, and the government-wide rescissions pursuant to the 
Department of Defense Appropriations Act (Public Law 109-148, 
approved December 30, 2005). The Department has set-aside $15 
million for emergency capital repairs. The eligibility requirements 
for obtaining funding for emergency capital repairs are described in 
a separate HUD Notice. Any unused funds from the emergency capital 
repairs set-aside will be returned to the funds allocated for 
eligible multifamily assisted projects.

II. Award Information

A. Available Funds

    This NOFA makes available approximately $20 million including 
carryover funds. The funds will be used for the physical conversion of 
eligible multifamily assisted housing projects or portions of projects 
to ALFs.
    The allocation formula used to fair share the $20,000,000 for the 
ALCP reflects demographic characteristics of age and incidence of 
frailty that would be expected for program participants. The FY 2006 
formula consists of one data element from the 2000 decennial census: 
The number of non-institutional elderly population aged 75 years or 
older with a disability. A fair share factor for each state was 
developed by taking the sum of the persons aged 75 or older with a 
disability within each state as a percentage of the sum of the same 
number of persons for the total United States. The resulting percentage 
for each state was then adjusted to reflect the relative difference in 
the cost of providing housing among the states. The total of the grant 
funds available was multiplied by the adjusted fair share percentage 
for each state, and the resulting funds for each state were totaled for 
each Hub.
    The ALCP grant funds fair share allocations, based on the formula 
above, to the 18 multifamily Hubs are as shown on the following chart:

B. FY 2006 Allocation

 FY 2006 Allocation for the Assisted Living Conversion Program (ALCP) of
                 Eligible Assisted Multifamily Projects
------------------------------------------------------------------------
                         Hub                            Grant authority
------------------------------------------------------------------------
Boston...............................................      $1,059,150.63
Buffalo..............................................         497,891.04
New York.............................................       1,070,750.58
Philadelphia.........................................       2,043,688.82
Baltimore............................................         798,694.18
Greensboro...........................................         827,785.85
Atlanta..............................................       1,573,719.90
Jacksonville.........................................       2,115,430.48
Chicago..............................................       1,345,332.83
Columbus.............................................         867,687.46
Detroit..............................................         690,950.94
Minneapolis..........................................         656,946.67
Fort Worth...........................................       1,837,398.85
Kansas City..........................................       1,331,095.76
Denver...............................................         431,846.42
Los Angeles..........................................       1,099,430.56
San Francisco........................................       1,146,692.71
Seattle..............................................         605,506.31
                                                      ------------------
    Total............................................     $20,000,000.00
------------------------------------------------------------------------

    The ALCP Grant Agreement, when fully executed, obligates the HUD 
funds. This Agreement establishes the legal relationship between HUD 
and the ALCP award recipient. The period of performance will be based 
on the scope of work but shall not exceed 18 months.

III. Eligibility Information

A. Eligible Applicants

    Only private nonprofit owners of eligible multifamily assisted 
housing developments specified in section 683(2)(B), (C), (D), (E), 
(F), and (G) of the

[[Page 11990]]

Housing and Community Development Act of 1992 (Pub. L. 102-550, 
approved October 28, 1992) may apply for an ALCP grant.

    Note: If your eligibility status changes during the course of 
the grant term, making you ineligible to receive the grant (e.g., 
prepayment of mortgage, sale/TPA of property, opting out of a 
Section 8 Housing Assistance Payment (HAP) contract, or the transfer 
of the grant to a single asset entity), HUD retains the right to 
terminate the grant and recover funds made available through this 
NOFA.

1. Ineligible Applicants
    Ineligible applicants are:
    a. Owners of developments designed specifically for people with 
disabilities.
    b. Owners of Section 232 developments.
    c. Property management companies and agents of property management 
companies.
    d. Limited dividend partnerships.
    e. Nonprofit Public Agencies.
    f. Owners of hospitals or other health-related facility which are 
considered to be eleemosynary institutions.
    g. Owner of an existing insured or privately owned Assisted Living 
Facility.
    h. Owners of commercial structures.

2. Eligible Developments

    Eligible projects must be owned by a private, nonprofit entity and 
designated primarily for occupancy by elderly persons. Projects must 
have been in occupancy for at least five years from the date the form 
HUD-92485, Permission to Occupy Project Mortgage, was approved by HUD 
and have completed final closing. Eligible projects may only receive 
one grant award. Additionally, eligible projects must meet one of the 
following criteria:
    a. Section 202 direct loan projects with or without Section 8 
rental assistance,
    b. Section 202 capital advance projects receiving rental assistance 
under their Project Rental Assistance Contract (PRAC),
    c. Section 515 rural housing projects receiving Section 8 rental 
assistance,
    d. Other projects receiving Section 8 project-based rental 
assistance,
    e. Projects subsidized with Section 221(d)(3) below-market interest 
mortgage,
    f. Projects assisted under Section 236 of the National Housing Act.

B. Cost Sharing or Matching

    No matching required.

C. Other

    1. Eligible conversion activities are:
    a. Retrofitting to meet Section 504 accessibility requirements, 
minimum property standards for accessibility and/or building codes and 
health and safety standards for ALFs in that jurisdiction. Examples are 
items such as addition of:
    (1) Upgrading to accessible units for the ALF with moveable 
cabinetry, accessible appliances, sinks, bathroom and kitchen fixtures, 
closets, hardware and grab bars, widening of doors, etc.;
    (2) An elevator or upgrades thereto;
    (3) Lighting upgrades;
    (4) Major physical or mechanical systems of projects necessary to 
meet local code or assisted living requirements;
    (5) Sprinkler systems;
    (6) Upgrades to safety and emergency alert systems;
    (7) Addition of hallway railings; and
    (8) Medication storage and workstations;
    b. Retrofitting to add, modify and/or outfit common space, office 
or related space for ALF staff including a service coordinator and file 
security, and/or a central kitchen/dining facility to support the ALF 
function (e.g., outfit lounge/common space/dining furniture, kitchen 
equipment for cooking/serving and dishware).
    c. Retrofitting to upgrade a regular unit to an accessible unit for 
a person/family with disabilities who is being displaced from an 
accessible unit in the portion of the project that is being converted 
to the ALF, where another accessible unit is not available.
    d. Temporary relocation.
    e. Consultant, architectural, and legal fees.
    f. Vacancy payments limited to 30 days after conversion to an ALF.
    g. Any excess Residual Receipts (over $500/unit) and Reserve for 
Replacement funds (over $1000/unit) in Project Accounts that are not 
approved for another use at the time of application to HUD under this 
NOFA are considered available funds and must be applied toward the cost 
of conversion activities. Before making this determination, however, 
HUD staff will consider the extent of repair/replacement needs 
indicated in the most recent Real Estate Assessment Center (REAC) 
physical inspection and not yet approved and any ongoing commitments 
such as non-grant-based service coordinator or other funding, where 
existing, deduct the estimated costs of such items from the reserve for 
replacement and residual receipts balances to determine the extent of 
available residual receipts and reserve for replacement funds for the 
ALCP.
    2. Threshold Requirements. In addition to the threshold criteria 
outlined in the General Section, applicants must meet the following 
requirements to receive funding for this program.
    a. Be an eligible applicant.
    b. DUNS Requirement. All ALCP applicants must have a DUN and 
Bradstreet Universal Data Numbering Systems (DUNS) number. The DUNS 
number must be included in the data entry field labeled 
``organizational DUNS'' on the form SF-424. Instructions for obtaining 
a DUNS number can be found at either www.hud.gov/offices/adm/grants/duns.cfm or www.Grants.gov/GetStarted.
    c. You cannot request more funds than allocated for your 
jurisdiction. (See the allocation chart above in Section II.B.)
    d. You must provide commitment and funding support letters from the 
appropriate funding organizations and the appropriate licensing 
agency(ies). HUD will reject your application if the commitment and 
support letter(s) from the appropriate funding organizations and the 
appropriate licensing agency(ies):
    (1) Are not submitted by the application submission date as part of 
your application for financial assistance;
    (2) Indicate that the ALF units, facilities, meals and supportive 
services to be provided are not designed to meet the special needs of 
the residents who will reside in the ALF as defined in this NOFA,
    (3) Do not show commitment for funding the meals and supportive 
services proposed; or
    (4) Indicate that the project as proposed will not meet the 
licensing requirements of the appropriate state/local agency(ies).
    e. You must comply with all applicable statutory requirements 
specified in Section 202(b) and statutory requirements under Section 
232(b)(6).
    f. Minimum Size Limits for an ALF. An ALF must be economically 
feasible. Consistent with HUD Handbook 4600.1, CHG-1, the minimum size 
for an ALF is five units.
    g. You must submit an original and four copies of your completed 
ALCP application by the deadline date, if you requested and received a 
waiver of the electronic submission requirement. The notification 
granting your waiver request will specify requirements for paper 
application submission.
    3. Program Requirements
    a. You must have a residual receipt account separate from the 
Reserve for Replacement account, or agree to establish this account as 
a condition for getting an award(s).

[[Page 11991]]

    b. You must be in compliance with your Loan Agreement, Capital 
Advance Agreement, Regulatory Agreement, Housing Assistance Payment 
contract, Project Rental Assistance Contract, Rent Supplement or LMSA 
contract, or any other HUD grant or contract document.
    c. If selected, you must file a form HUD-2530 for all construction 
contractors, architects, consultants, and service provider 
organizations under direct contract with you that will be engaged under 
this NOFA within 30 days of execution of the grant award.
    d. Your project must meet HUD's Uniform Physical Conditions 
Standards at 24 CFR part 5, subpart G. Meeting these standards, based 
on the most recent REAC physical inspection report and responses 
thereto, means that the project, must have a ``satisfactory'' rating as 
evidenced by a score of 60 or better or a HUD-approved and on schedule 
repair plan for developments scoring less than 60. Additionally, the 
project must have no uncorrected and outstanding Exigent Health and 
Safety violations. Finally, the project must not have a management 
review with a rating of ``minimally satisfactory'' or 
``unsatisfactory'' with open and unresolved findings.
    e. You must submit, with your application, an agreement to pursue 
appropriate ALF licensing in a timely manner.
    f. Meals and Supportive Services. You must develop and submit a 
Supportive Services Plan (SSP) for the services and coordination of the 
supportive services, which will be offered in the ALF to the 
appropriate state or local organization(s), which are expected to fund 
those supportive services. (See Section IV.B. below for information, 
which must be in the SSP.) You must submit one copy of your SSP to each 
appropriate state or local service funding organizations well in 
advance of the application deadline, for appropriate review. The state 
or local funding organization(s) must return the SSP to you with 
appropriate comments and an indication of the funding commitment, which 
you will then include with the application you submit to HUD.
    g. Licensing Requirements. You must also submit the SSP to the 
appropriate organization(s), which license ALFs in your jurisdiction. 
The licensing agency(ies) must approve your plan, and must also certify 
that the ALF and the proposed supportive services identified in your 
SSP, are consistent with local statute and regulations and well 
designed to serve the needs of the frail elderly and people with 
disabilities who will reside in the ALF portion of your project.
    h. Your ALF must be licensed and regulated by the state (or if 
there is no state law providing such licensing and regulation, by the 
municipality or other subdivision in which the facility is located). 
Each assisted living unit must include its own kitchen, bathroom, 
bedroom, living/dining area (1 bedroom unit) or kitchen, bathroom, 
bedroom/living/dining area (efficiency unit) and must meet the state 
and/or local licensing, building, zoning, and other requirements for an 
ALF.
    i. Your ALF must be available to qualified elderly persons and 
persons with disabilities, consistent with the rules and payment plans 
of the state, who need and want the supportive services in order to 
remain independent and avoid premature institutionalization.
    j. Your ALF's residents must be tenants or residents of the 
multifamily project and must comply with the requirements applicable to 
the project. Thus, you cannot charge additional rent over what is 
charged to residents in the non-ALF portion of the project. All 
admissions to the ALF must be through the applicable project admissions 
office. However, persons accepted into the ALF also must sign an ALF 
admissions agreement, which shall be an addendum to the applicable 
project lease.
    k. At a minimum, your ALF must provide room, board, and continuous 
protective oversight (CPO). CPO involves a range of activities and 
services that may include such things as awareness by management and 
staff of the occupant's condition and location as well as an ability to 
intervene in a crisis for ALF occupants on a 24-hour basis. The two 
occupant groups in an ALF are:
    (1) Independent Occupants. Awareness by management and staff of the 
occupant's condition and whereabouts as well as the availability of 
assistance for the occupants as needed.
    (2) Dependent occupants. Supervision of nutrition, assistance with 
medication and continuous responsibility for the occupants' welfare.
    l. Anyone moving into an ALF unit must agree to accept as a 
condition of occupancy the board and services required for the purpose 
of complying with state and local law and regulation. m. Your ALF must 
provide three meals per day.
    (1) Residents whose apartments have kitchens must take at least the 
number of meals a day provided by the facility, per their mandatory 
meals requirement, or as required by state or local rules, if more 
stringent. If the facility does not have a mandatory meals plan, then 
state and local rules govern.
    (2) Residents in projects which were originally constructed without 
kitchens in their units must take such meals as required by their 
mandatory meals agreement, if applicable, or by the state's mandated 
requirements if more stringent (e.g., two meals, two snacks daily).
    In either case, ALF management must coordinate meal requirements 
with the needs of residents who are out part of the day (e.g., in day 
care). The meal program may not be operated at a profit by the project 
owner.
    n. Priority admissions for ALF units are as follows:
    (1) Current residents desiring an ALF unit and meeting the program 
requirements (no resident can be required to accept an ALF unit).
    (2) Qualified individuals or families needing ALF services who are 
already on the project's waiting list;
    (3) Qualified individuals or families in the community needing ALF 
services wanting to be added to the project's waiting list.
    (4) Qualified disabled non-elderly persons needing assisted living 
services are eligible to occupy these units on the same basis as 
elderly persons, except for section 202 project rental assistance 
contracts (PRAC) projects.
    o. The management of the project must set up a separate waiting 
list for ALF units. ALF units must be for eligible residents who meet 
the admissions/discharge requirements as established for assisted 
living by state and local licensing, or HUD frailty requirements under 
24 CFR 891.205 if more stringent.
    p. Upon receipt of a grant under this program, all project owners 
participating in the ALCP must provide a Declaration of Restrictive 
Covenants (DRC), which will be recorded with the land, to retain the 
low income character of the housing, and to maintain the project 
(including the ALF), as a moderate-, low-, or very low-income facility 
(as appropriate) for at least 20 years beyond the current 40-to 50-year 
term of the mortgage loan or capital advance.
    q. The ALCP requires service coordination for linking the ALF to 
available services in the community for low-income persons. All 
projects funded under this NOFA must have sufficient service 
coordination in place, or request additional funds, if appropriate, to 
ensure that services meeting licensing requirements are available to 
ALF residents on an ongoing basis. Service coordination must be 
described in the application

[[Page 11992]]

(see Section IV.B. of this NOFA). If you need to enhance an existing 
service coordination program or add one where it does not exist, you 
may apply for funding through the Service Coordinator NOFA, published 
elsewhere in the SuperNOFA. If a funds request for service coordination 
for the ALF and/or the whole project is included as part of this 
application, the Form SF-424 under Exhibit 11, must indicate the 
dollars requested. Do NOT attach the whole service coordinator 
application. You may also show evidence that funding for the enhanced 
service coordination is provided by other sources by indicating such 
funding on the form SF-424. If you are funded under this NOFA and 
requested new or enhanced service coordination you will be funded first 
under the service coordinator NOFA.
    (1) The ALF must be staffed either directly or through coordination 
with local agencies, depending on state regulations or local 
requirements. These may also serve non-ALF residents of the project on 
a time available and appropriate fee basis.
    (2) If you are a Section 202 PRAC project owner, you are not 
eligible to request funding under the service coordinator NOFA. Section 
202 PRAC owners can pay for the service coordinator out of PRAC funds.
    (3) The ALF may cater to the special needs of residents depending 
on their condition or diagnosis, such as Alzheimer's disease. If it 
does so, the design/environment of such facilities must accommodate 
those needs, e.g., dementia special care unit. However, the ALF cannot 
provide a service it is not licensed by the state or locality to 
provide.
    (4) Owners of Section 202/PRAC projects are reminded that they may 
include a PRAC payment of up to $15/unit/month not to exceed 15 percent 
of the total program cost, consistent with 24 CFR 891.225(b)(2) to 
cover part of the cost of meals and/or supportive services for frail 
elderly residents, including residents of the ALF.
    (5) Training for ALF staff is an eligible project cost under 
existing operating procedures. For further information on ALFs, please 
refer to Handbook 4600.1, CHG-1, ``Mortgage Insurance for Residential 
Care Facilities,'' Chapter 13. This Handbook and recent ALF program 
Notices are accessible through HUDCLIPS on HUD's Web site at http://www.hudclips.org/cgi/index.cgi. These notices are in the Handbooks and 
Notices--Housing Notices database. Enter only the number without the 
letter prefix (e.g., 99-16) in the ``Document number'' to retrieve the 
program notice.
    For further guidance on service coordinators, please refer to 
Handbook 4381.5 REV-2, CHANGE-2, Chapter 8, ``The Management Agent's 
Handbook,'' which is also available through the HUDCLIPS database.
    r. Your ALF's operation must be part of the project owner's 
management organization. Some or all of its functions may be contracted 
out. The ALF must predicate its budget on a two-tiered structure under 
which board and supportive service income and expenses must be 
maintained separately and independently from the regular income and 
expenses of the applicable project.
    The two components of ALF costs are:
    (1) Charges/payment for board, (not including rent for the unit) 
which may be on a sliding scale or any other equitable fee system; and
    (2) Charges/payment for necessary supportive services, which may 
include a combination of resident fees, Medicaid and/or other third 
party payments.
    s. Prohibition Against Lobbying Activities. The Byrd Amendment 
prohibits ALCP recipients of federal contracts, grants, or loans from 
using appropriated funds for lobbying activities. (Refer to Section 
III.C. of the General Section for further instructions regarding this 
requirement.)
    t. Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). You 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), and implementing regulations at 24 
CFR part 135. You must ensure that training, employment, and other 
economic opportunities shall, to the greatest extent feasible, be 
directed toward low- and very low-income persons, particularly those 
who are recipients of government assistance for housing and to business 
concerns which provide economic opportunities to low- and very low-
income persons and including people with disabilities.
    4. Additional Non-discrimination and Other Requirements. Comply 
with the requirements of the Fair Housing Act, Executive Order 11063, 
Title VI of the Civil Rights Act, the Age Discrimination Act of 1975, 
the affirmative fair housing marketing requirements of 24 CFR part 200, 
subpart M, and the implementing regulations at 24 CFR part 108, which 
requires that the project be marketed to those least likely to apply, 
including those who are not generally served by the agency 
administering the program, and other applicable federal, state, and 
local laws prohibiting discrimination and promoting equal opportunity, 
including affirmatively furthering fair housing, and other 
certifications listed in the application. (Refer to Section III.C. of 
the General Section for additional requirements and information.)
    a. Comply with section 232 of the National Housing Act, as 
applicable; the Uniform Federal Accessibility Standards (24 CFR 40.7); 
section 504 of the Rehabilitation Act of 1973 and HUD's implementing 
regulations at 24 CFR part 8; and the Americans with Disabilities Act 
of 1990 for all portions of the development physically affected by this 
proposal.
    b. Comply with the Davis-Bacon requirements and the Contract Work 
Hours and Safety Standards Act as applied to this program. While it has 
been determined that Davis-Bacon does not apply statutorily to the 
ALCP, the Department has administratively determined that Davis-Bacon 
standards and overtime rates in accordance with the Contract Work Hours 
and Safety Standards Act will be adhered to in any ALCP conversion 
grant in which the total cost of the physical conversion to an ALF (and 
including any additional renovation work undertaken at the same time) 
is $500,000 or more (this includes ALCP grant funds, owner funds, or 
any third party funds loaned or granted in support of the conversion or 
other renovation for the project associated with this grant), and in 
which the ALF portion of the project is 12 units or more.
    c. Ensuring the Participation of Small Business, Small 
Disadvantaged Businesses, and Woman-Owned Businesses. HUD is committed 
to ensuring that small businesses, small disadvantage businesses, and 
woman-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD's financial 
assistance. (Refer to the General Section for further instructions 
regarding this requirement.)
    d. Executive Order 13166, Improving Access to Persons with Limited 
English Proficiency (LEP). ALCP applicants must seek to improve access 
to persons with limited English proficiency by providing materials and 
information in languages other than English. Make applications and 
other materials available in languages other than English that are 
common in the community, if speakers of these languages are found in 
significant numbers and come into frequent contact with the program. 
For further guidance on serving persons with Limited English 
Proficiency (LEP) in HUD assisted programs, see the recently published 
HUD LEP guidance, 'Notice of Guidance to Federal Assistance Recipients 
Regarding Title VI Prohibition Against

[[Page 11993]]

National Origin Discrimination Affecting Limited English Proficient 
Persons,'' 68 FR 70968 (December 19, 2003) or Section III of the 
General Section.
    e. Executive Order 13279, Equal Protection of the Laws for Faith-
Based and Community Organizations. HUD has undertaken a review of all 
policies and regulations that have implications for faith-based and 
community organizations, and has established a policy priority to 
provide full and equal access to grassroots faith-based and other 
community-based organizations. (Refer to the General Section for 
specific instructions regarding this requirement.)
    f. Accessible Technology. The Rehabilitation Act Amendments of 1998 
apply to all electronic information technology (EIT) used by an ALCP 
recipient for transmitting, receiving, using, or storing information to 
carry out the responsibilities of the ALCP awards. (Refer to Section 
III.C. of the General Section for specific instructions regarding this 
requirement.)
    g. Participation in HUD-Sponsored Program Evaluation. As a 
condition of the receipt of ALCP funds, successful applicants are 
required to cooperate with all HUD staff or contractors performing HUD-
funded research and evaluation studies.
    h. Comply with Executive Order 13202, Preservation of Open 
Competition and Government Neutrality toward Government Contractors' 
Labor Relations on Federal and Federally Funded Construction Projects. 
(Refer to the General Section for additional information on this 
requirement).
    i. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance. ALCP applicants are subject to the Administrative 
Requirements of OMB Circular A-133, Audits of States, Local Governments 
and Non-Profit Organizations; OMB Circular A-122, Cost Principles for 
Non-Profit Institutions; the administrative requirements of 24 CFR Part 
84; and the procurement requirements of 24 CFR 84.44. (Refer to the 
General Section for additional information on this requirement).
    j. Environmental Requirements. Your ALCP application is subject to 
the National Environmental Policy Act of 1969 and applicable related 
federal environmental authorities. (See 24 CFR part 50, as applicable.) 
An environmental review will be completed by HUD before awarding any 
grant under this program. ALCP projects are `critical actions' for 
purposes of 24 CFR part 55 and must comply with requirements applicable 
to `critical actions,' including floodplain management review 
requirements, if proposed to be carried out in the 500-year floodplain.

IV. Application and Submission Information

A. Addresses to Request Application Package

    All information for requesting an application is included in this 
NOFA and Section IV. A. of the General Section. The application for the 
ALCP is available on the Internet from the grants.gov Web site at 
http://www.grants.gov/FIND. If you have difficulty accessing the 
information, you can receive customer support from Grants.gov by 
calling the help line at (800) 518-Grants or by sending an e-mail to 
[email protected]. If you do not have access, you may obtain an ALCP 
application by calling the NOFA Information Center at (voice) 800-HUD-
8929 (800-483-8929). Persons with a hearing or speech impairment may 
call the Center's TTY number at 800-HUD-2209. Please be sure to provide 
your name, address (including zip code), and telephone number 
(including area code).
    1. Multiple Applications. Owners may not submit multiple 
applications for the same elderly housing development. HUD will only 
accept one ALCP application per project.
    2. For Technical Assistance. Before the ALCP application due date, 
HUD staff will be available to provide you with general guidance and 
technical assistance. However, HUD staff is not permitted to assist in 
preparing your application. For technical support for downloading the 
ALCP application or submitting the application, call the toll free 
Grants.gov Customer Support line at 1-800-518-Grants or send an e-mail 
message to [email protected].
    3. Satellite Broadcast. HUD will provide a satellite broadcast for 
potential applicants. For more information about the date and time of 
the broadcast, you should contact your local HUD Office or go to HUD's 
Web site at: www.hud.gov/webcasts/index.cfm.

B. Content and Form of Application Submission

    There are eleven required exhibits under the ALCP, including 
prescribed forms and certifications. In cases where your articles of 
incorporation and by-laws have NOT changed since the project was 
originally approved by HUD, your signature on the SF-424 signifies that 
you are self-certifying to that effect--that the documents on file with 
HUD are current--is sufficient. Exhibits for which self-certification 
of currency is possible are Exhibits 2(a) and (b).
    In addition to the relief of paperwork burden, you will not have to 
submit certain information and exhibits you have previously prepared. 
See individual item descriptions, below to identify such items. An 
example of such an item may be the FY 2006 Annual Financial Statement. 
Your application must include all of the information, materials, forms, 
and exhibits listed below (Please see the General Section for 
instructions on how to submit third party and other documents such as 
Articles of Incorporation; by-laws; copies of original plans; evidence 
of financial commitment; letter(s) from zoning officials; etc.):
    1. Application Summary for the Assisted Living Conversion Program, 
Form HUD-92045.
    2. Evidence that you are a private nonprofit organization or 
nonprofit consumer cooperative and have the legal ability to operate an 
ALF program, per the following:
    a. Articles of Incorporation, constitution, or other organizational 
documents, or self-certification of these documents if there has been 
no change in the Articles since they were originally filed with HUD; 
and
    b. By-laws, or self-certification of by-laws, if there has been no 
change in the by-laws since they were originally filed with HUD
    3. A description of your community support:
    a. A description of your links to the community at large and to the 
minority and elderly communities in particular; and
    b. A description of your efforts to involve elderly persons, 
including minority elderly persons and persons with disabilities in:
    (1) The development of the application;
    (2) The development of the ALF operating philosophy;
    (3) Review of the application prior to submission to HUD; and
    (4) Your intent whether or not to involve eligible ALF residents in 
the operation of the project.
    c. A description of your involvement in your community's 
Consolidated Planning and Analysis of Impediments to Fair Housing (AI) 
processes including:
    (1) An identification of the lead/facilitating agency(ies) that 
organizes and/or administers the process;
    (2) A listing of the Consolidated Plan/AI issue areas in which you 
participate; and
    (3) The level of your participation in the process, including 
active

[[Page 11994]]

involvement with any neighborhood-based organizations, associations, or 
any committees that support programs and activities that enhance 
projects or the lives of residents of the projects, such as the one 
proposed in your application.
    If you are not currently active, describe the specific steps you 
will take to become active in the Consolidated Planning and AI 
processes. (Consult the local HUD office for the identification of the 
Consolidated Plan community process for the appropriate area.)
    d. A description of how the assisted living facility will implement 
practical solutions that will result in assisting residents in 
achieving independent living and improved living environment.
    e. A description of how you have supported state and local efforts 
to streamline processes and procedures in the removal of regulatory 
barriers to affordable housing. To obtain up to 2 points for this 
policy priority you must complete the Form HUD-27300, Questionnaire for 
HUD's Initiative on Removal of Regulatory Barriers and provide the 
required documentation. See Rating Factor 3 in Section V.A. of this 
NOFA for more details.
    4. Evidence of your project being occupied for at least five years 
prior to the date of application to HUD.
    5. A market analysis of the need for the proposed ALF units, 
including information from both the project and the housing market, 
containing:
    a. Evidence of need for the ALF by current project residents:
    (1) A description of the demographic characteristics of the elderly 
residents currently living in the project, including the current number 
of residents, distribution of residents by age, race, and sex, an 
estimate of the number of residents with frailties/limitations in 
activities of daily living, and an estimate of the number of residents 
in need of assisted living services.
    (2) A description of the services currently available to the 
residents and/or provided on or off-site and what services are lacking;
    b. Evidence of the need for ALF units by very low-income elderly 
and disabled households in the market area; a description of the trend 
in elderly and disabled population and household change; data on the 
demographic characteristics of the very low-income elderly in need of 
assisted living services (age, race, sex, household size, and tenure) 
and extent of residents with frailty/limitations in existing federally 
assisted housing for the elderly (HUD and Rural Housing Service); and 
an estimate of the very low-income elderly and disabled in need of 
assisted living taking into consideration any available state or local 
data.
    c. A description of the extent, types, and availability and cost of 
alternate care and services locally, such as home health care; adult 
day care; housekeeping services; meals programs; visiting nurses; on-
call transportation services; health care; and providers of supportive 
services who address the needs of the local low income population.
    d. A description of how information in the community's Analysis of 
Impediments to Fair Housing Choice was used in documenting the need for 
the ALF (covering items in c. above).
    6. A description of the physical construction aspects of the ALF 
conversion, including the following:
    a. How you propose to carry out the physical conversion (including 
a timetable and relocation planning). Completion of the Logic Model 
will assist in completing your response to this Exhibit.
    b. A short narrative stating the number of units, special design 
features, community and office space/storage, dining and kitchen 
facility and staff space, and the physical relationship to the rest of 
the project. Also, you must describe how this design will facilitate 
the delivery of services in an economical fashion in the most 
integrated setting appropriate to the needs of the participating 
residents with disabilities and accommodate the changing needs of the 
residents over at least the next 10 years.
    c. A description on how the project will promote energy efficiency, 
including any plans to incorporate energy efficiency features in the 
design and operation of the ALF through the use of Energy Star labeled 
products and appliances. Applicants that meet this policy priority will 
receive two points under Rating Factor 3 in Section V.A. of this NOFA. 
Refer to the General Section for further information on this 
requirement or for further information about Energy Star see http://www.energystar.gov.
    d. A copy of the original plans for all units and other areas of 
the development, which will be included in the conversion.
    e. A description of the conversion must clearly address how the 
units will conform to the accessibility requirements described in the 
Uniform Federal Accessibility Standards (UFAS). (For example, all door 
openings must have a minimum clear opening of 32 inches; and, all 
bathrooms and kitchens must be accessible to and functional for persons 
in wheelchairs.)
    f. Architectural sketches of the conversion to a scale of 1/4 inch 
to one foot that indicate the following:
    (1) All doors being widened;
    (2) Typical kitchen and bathroom reconfiguration: show all 
wheelchair clearances, wall reinforcing, grab bars, and elevations of 
counters and work surfaces;
    (3) Bedroom/living/dining area modification, if needed;
    (4) Any reconfigured common space;
    (5) Added/reconfigured office and storage space;
    (6) Monitoring stations, and
    (7) The kitchen and dining facility.
    All architectural modifications must meet section 504 and ADA 
requirements as appropriate.
    g. A budget showing estimated costs for materials, supplies, 
fixtures, and labor for each of the items listed in Section IV.B.6.f, 
items (1) through (7), above.
    h. Include firm financial commitment letters with specific dollar 
amounts from appropriate organization(s) for conversion needs (within 
the scope of the ALF conversion NOFA) which will be supported by non-
HUD funding.
    i. A description of any relocation of current tenants including a 
statement that:
    (1) Indicates the estimated cost of temporary relocation payments 
and other related services;
    (2) Identifies the staff organization that will carry out the 
relocation activities; and
    (3) Identifies all tenants that will have to be temporarily moved 
to another unit within the development OR from the development during 
the period that the physical conversion of the project is under way.


    Note: If any of the relocation costs will be funded from sources 
other than the ALCP grant, you must provide evidence of a firm 
financial commitment of these funds. When evaluating applications, 
HUD will consider the total cost of proposals (i.e., cost of 
conversion, temporary relocation, service coordinator, and other 
project costs).


    j. Address how training, employment, and economic opportunities 
will be directed to low- and very low-income persons that receive 
government assistance for housing and to business concerns which 
provide economic opportunities to low- and very-low-income persons and 
people with disabilities.
    7. A description of any retrofit or renovation that will be done at 
the project (with third party funds) that is separate and distinct from 
the ALF conversion. With such description, include as part of your 
application

[[Page 11995]]

submission firm commitment letters from third party organizations in 
specific dollar amounts that will cover the cost of any work outside 
the scope of this NOFA.
    8. A letter from the local zoning official indicating evidence of 
permissive zoning. Also, showing that the modifications to include the 
ALF into the project as proposed are permissible under applicable 
zoning ordinances or regulations.
    9. A supportive services plan (SSP), a copy of which must be 
submitted to the appropriate state and/or local agency as instructed in 
Section III.C. above. For those applicants needing to contact state 
Medicaid offices, a list is provided on the Internet at 
www.cms.hhs.gov/medicaid. The SSP must include:
    a. A description of the supportive services needed for the frail 
elderly the ALF is expected to serve. This must include at least (1) 
meals and such other supportive services required locally or by the 
state, and (2) such optional services or care to be offered on an ``as 
needed'' basis.
    Examples of both mandatory and optional services (which will vary 
from state to state) are: Two meals and two snacks or three meals 
daily; 24-hour protective oversight; personal care; housekeeping 
services; personal counseling, and transportation.
    b. A description of how you will provide the supportive services to 
those who are frail and have disabilities (i.e., on or off-site or 
combination of on or off-site), including an explanation of how the 
service coordination role will facilitate the adequate provision of 
such services to ALF residents, and how the services will meet the 
identified needs of the residents. Also indicate how you intend to fund 
the service coordinator role.
    c. A description of how the operation of your ALF will work. 
Address: (1) General operating procedures; (2) ALF philosophy and how 
it will promote the autonomy and independence of the frail elderly and 
persons with disabilities; (3) what will the service coordination 
function do and the extent to which this function already exists, or 
will be augmented or new; (4) ALF staff training plans; and (5) the 
degree to which and how the ALF will relate to the day-to-day 
operations of the rest of the project.
    d. The monthly individual rate for board and supportive services 
for the ALF listing the total fee and components of the total fee for 
the items required by state or local licensing, and list the 
appropriate rate for any optional services you plan to offer to the ALF 
residents. Provide an estimate of the total annual costs of the 
required board and supportive services you expect to provide and an 
estimate of the amount of optional services you expect to provide.
    e. List who will pay for the board and supportive services and the 
amount. For example, include such items as:
    (1) Meals by sponsors--$20
    (2) Housekeeping services by the City government--$30
    (3) Personal care by State Department of Health--$60
    (4) Service paid for by state program--$40
    (5) Fees paid by tenants--$83
    The amounts and commitments from both tenants and/or providers must 
equal the estimated amounts necessary to cover the monthly rates for 
the number of people expected to be served. If you include tenant fees 
in the proposal, list and show any proposed scaling mechanism. All 
amounts committed/collected must equal the annualized cost of the 
monthly rates calculated by the expected percentage of units filled.
    f. A support/commitment letter from EACH listed proposed funding 
source per paragraph e. above, for the planned meals and supportive 
services listed in the application. The letter must cover the total 
planned annual commitment (and multiyear amount total, if different), 
length of time for the commitment, and the amounts payable for each 
service covered by the provider/paying organization. There must be a 
letter from EACH participating organization listed in paragraph e, 
above.
    g. A support letter from EACH governmental agency that provides 
licensing for ALFs in that jurisdiction.
    h. A description of your relevant experience in arranging for and/
or delivering supportive services to frail residents. The description 
should include any supportive services facilities owned/operated; your 
past or current involvement in any project-based programs that 
demonstrates your management capabilities. The description should 
include data on the facilities and specific meals and/or supportive 
services provided on a regular basis, the racial/ethnic composition of 
the populations served, if available, and information and testimonials 
from residents or community leaders on the quality of the services.
    10. A description of your project's resources:
    a. A copy of the most recent project Reserve and Replacement 
account statement, and a Reserve for Replacement analysis showing plans 
for its use over the next five years, and any approvals received from 
the HUD field office to date.
    b. A copy of the most recent Residual Receipts Account statement. 
Indicate any approvals for the use of such receipts from the field 
office for over $500/unit.
    c. Annual Financial Statement (AFS). If your FY2006 AFS was due to 
REAC more than 120 days BEFORE the due date for this application, in 
the interest of reducing work burden, only include the date that it was 
sent to REAC. If the AFS was due to REAC 120 days or less from the due 
date of this application, you MUST include a paper copy of your AFS.
    11. Forms and Certifications. The electronic version of the NOFA 
contains all forms required for submitting the ALCP application. The 
following exhibits, forms, certifications, and assurances are required. 
Copies of forms denoted by (*) may be downloaded from HUD's Web site at 
http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm.
    a. Form HUD-92045, Multifamily Housing Assisted Living Conversion 
Program Application Summary Sheet.
    b. Form SF-424, Application for Federal Assistance*, and compliance 
with Executive Order 12372 (a certification that you have submitted a 
copy of your application, if required, to the state agency (Single 
Point of Contact) for state review in accordance with Executive Order 
12372 (refer to the General Section for instructions in submitting this 
form).
    c. SF-424 Supplement, Survey for Ensuring Equal Opportunity for 
Applicants*.
    d. Form HUD-424-CB, Grant Applications Detailed Budget*.
    e. Form HUD-424-CBW, Grant Application Detailed Budget worksheet*.
    f. Form HUD-2880, Applicant/Recipient Disclosure/Update Report*, 
including Social Security and Employment Identification numbers. A 
disclosure of assistance from other government sources received in 
connection with the project.
    g. Form HUD-2991, Certification of Consistency with the 
Consolidated Plan* for the jurisdiction in which the proposed ALF will 
be located. The certification must be made by the unit of general local 
government if it is required to have, or has, a complete Plan. 
Otherwise, the certification may be made by the state, or by the unit 
of general local government if the project will be located within the 
jurisdiction of the unit of general local government authorized to use 
an abbreviated

[[Page 11996]]

strategy, and if it is willing to prepare such a Plan.
    All certifications must be made by the public official responsible 
for submitting the plan to HUD. The certifications must be submitted by 
the application submission deadline date set forth herein. The Plan 
regulations are published in 24 CFR part 91.
    h. Form HUD 2994-A, You Are Our Client Survey, optional.
    i. Standard Form-LLL, Disclosure of Lobbying Activities, if 
applicable*.
    j. Form HUD-96010, Program Outcome Logic Model*. (This is going to 
be in the application instructions. A version of the form for those 
that do not have excel will be available on the Web site.)
    k. Form HUD-27300, America's Affordable Communities Initiative/
Removal of Regulatory Barriers* (and supporting documentation).
    l. Certification of Consistency with RC/EZ/EC-II Strategic Plan 
(HUD-2990), if applicable. Pm. Form HUD-96011, Facsimile Transmittal 
Cover Page. This form must be used as the cover page to transmit third 
party documents and other information as described in the General 
Section as part of your electronic application submittal (if 
applicable).

C. Submission Date and Time

    1. Application Submission Date. Unless you received a waiver to the 
electronic application submission requirements, your completed ALCP 
application must be submitted through the www.grants.gov/Apply and must 
be received and validated by Grants.gov no later than 11:59:59 Eastern 
Time on the application deadline date (June 15, 2006). (Refer to 
Section IV. of the General Section for further instructions on the 
delivery and receipt of applications.

D. Intergovernmental Review

    1. Executive Order 12372. ALCP applicants are subject to the 
Executive Order 12372 process. Refer to Section IV.D. of the General 
Section for instructions on the intergovernmental review process.)
    2. You must submit a Supportive Services Plan (SSP) for the 
services and coordination of the supportive services that will be 
offered in the assisted living facility (ALF) to the appropriate state 
or local organization(s), which are expected to fund those supportive 
services. You must submit one copy of your SSP to each appropriate 
state or local service funding organizations well in advance of the 
application deadline, for appropriate review. The state or local 
funding organization(s) must return the SSP to you with appropriate 
comments and an indication of the funding commitment, which you will 
then include with the application you submit to HUD.
    You must ALSO submit the SSP to the appropriate organization(s) 
that license ALFs in your jurisdiction. The licensing agency(ies) must 
approve your plan, and must also certify that the ALF and the proposed 
supportive services identified in your SSP, are consistent with local 
statute and regulations and well designed to serve the needs of the 
frail elderly and people with disabilities who will reside in the ALF 
portion of your project.

E. Funding Restrictions

    1. This program does NOT cover the cost of meals and supportive 
services. These items must be paid for through other sources (e.g., a 
mix of resident fees and/or third party providers). Evidence of third 
party commitment(s) must be included as part of the application. The 
assisted living supportive services program must promote independence 
and provide personal care assistance based on individual needs in a 
home-like environment. In accordance with Section 504 of the 
Rehabilitation Act of 1973 and HUD's regulations at 24 CFR 8.4(d), the 
project must deliver services in the most integrated setting 
appropriate to the needs of qualified individuals with disabilities.
    2. This program does not allow permanent displacement of any 
resident living in the project at the time the application was 
submitted to HUD. (HUD will only provide temporary relocation costs for 
current tenants if they must vacate their unit while conversion work is 
underway (normal temporary relocation costs include increases in rent, 
reconnection of telephones, moving costs, and appropriate out-of-pocket 
expenses).
    3. Applicants will not be awarded multiple grant funds for the same 
elderly housing development. One project will not receive multiple 
awards.
    4. Ineligible Activities. You may not use funds available through 
this NOFA to:
    a. Add additional dwelling units to the existing project;
    b. Pay the costs of any of the necessary direct supportive services 
needed to operate the ALF;
    c. Purchase or lease additional land;
    d. Rehabilitate (see definition at 24 CFR 891.105) the project for 
needs unrelated directly to the conversion of units and common space 
for assisted living.
    e. Use the ALCP to reduce the number of accessible units in the 
project that are not part of the ALF.
    f. Permanently displace any resident out of the project (permanent 
relocation is prohibited under this program)
    g. Increase the management fee.
    h. Cover the cost of activities not directly related to the 
conversion of the units and common space. (i.e., if an applicant is 
applying to convert 24 units on 2 floors of a 5-story elderly housing 
development and the inspection by the Fire Marshal reveals that 
sprinklers must be installed in the entire building), ALCP funds will 
be used only to install sprinklers for the 24 units on the 2 floors 
requested in the application. The cost to install sprinklers in the 
remaining units must be paid for out of other resources.

F. Other Submission Requirements

    Application Submission and Receipt Procedures. Refer to Section 
IV.F. of the General Section for specific procedures for additional 
information on application submission requirements.
    1. Electronic Delivery. ALCP applicants must submit their 
applications electronically through www.grants.gov/Apply, unless a 
waiver is granted.
    a. The www.grants.gov/Apply offer a simple, unified application 
process. There are several steps to complete at the www.grants.gov Web 
site. ALCP applicants should read HUD's Federal Register Notice on 
Early Registration published in the Federal Register on December 9, 
2005 (70 FR 73332).
    b. Electronic signature. ALCP applications submitted through 
Grants.gov constitute submission as an electronically signed 
application.
    2. Instructions on how to submit an electronic application to HUD 
via grants.gov/Apply: Grants.gov has a full set of instructions on how 
to apply for funds on its Web site at http://www.grants.gov/CompleteApplication.
    3. Waiver of Electronic Submission Requirement. HUD will only 
accept electronic applications submitted through www.grants.gov unless 
the ALCP applicant has received a waiver.
    4. Proof of Timely Submission. ALCP applicants must submit their 
applications to www.grants.gov in time for receipt and validation at 
Grants.gov by 11:59:59 p.m. eastern time on the application deadline 
date of June 15, 2006. Validation can take 24-48 hours so applicants 
should submit with ample time for the process to be completed. 
Applicants are also advised to submit with sufficient time to correct 
any deficiencies that would prevent the acceptance of your application 
by

[[Page 11997]]

Grants.gov. (Refer to the General Section for specific procedures 
regarding proof of timely submission of applications.)
    5. Hubs and Field Offices addresses. If you are granted a waiver to 
the electronic application submission requirement, you must submit an 
original and four copies of the ALCP application to the director of the 
appropriate HUD Multifamily Hub Office with jurisdiction over the 
housing development identified in your application. For your use in 
determining the appropriate HUD Multifamily Hub Office to which you 
must submit your application, see HUD's Web site at http://www.HUD.gov/offices/adm/grants/nofa06/grpalcp.cfm. The HUD Program Centers are 
under each Hub. If you send your application to the wrong Hub Office, 
it will be rejected. Therefore, if you are uncertain as to which Hub 
Office to submit your application, you are encouraged to contact the 
local HUD Office that is closest to your project's location to 
ascertain the Office's jurisdiction and to ensure that you submit your 
application to the correct local HUD Multifamily Hub Office. Paper 
applications must be received in the appropriate Hub Office by the 
application deadline date. The Department will no longer allow a 15-day 
grace period for receipt of applications post-marked on or before the 
application deadline date.

V. Application Review Information

A. Criteria

    HUD will rate ALCP applications that successfully complete 
technical processing using the Rating Factors set forth below and in 
accordance with the application submission requirements identified in 
Section IV.B. above. The maximum number of points an application may 
receive under this program is 102. This includes two RC/EZ/EC-II bonus 
points, as described in the General Section and Section V.A. below.
1. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (20 Points)
    This factor addresses your capacity to carry out the conversion in 
a timely, cost-conscious and effective manner. It also addresses your 
experience at providing the proposed supportive services you intend to 
make available at the ALF for elderly residents, especially in such 
areas as meals, 24-hour staffing, and on-site health care. Submit 
information responding to this factor in accordance with Application 
Submission Requirements in Sections IV. B. 6. a. and b. and 9. a. 
through c and h. of this NOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to carry out a successful 
conversion of the project and to implement the plan to deliver the 
supportive services on a long-term basis, considering the following:
    a. (9 points). The time frame planned for carrying out the physical 
conversion of the development to the ALF.
    b. (10 points). Your past experience in providing or arranging for 
supportive services either on or off site for those who are frail. 
Examples are: Meals delivered to apartment of resident or in a 
congregate setting (2 points), arranging for or providing personal care 
(3 points), providing 24-hour staffing (1 point), providing or making 
available on-site preventive health care (2 points) and other support 
services (2 points).
    c. (1 point). The Department will provide 1 point to those 
applicants who currently or propose to partner, fund, or subcontract 
with grassroots organizations. HUD will consider an organization a 
``grassroots organization'' if the organization is headquartered in the 
local community and has a social services budget of $300,000 or less; 
or has six or fewer full-time equivalent employees. (Refer to the 
General Section for further information on policy priority points for 
activities related to grassroots organizations.)
2. Rating Factor 2: Need/Extent of the Problem (20 Points)
    This factor addresses the extent to which the conversion is needed 
by the categories of elderly persons and persons with disabilities that 
the ALF is intended to serve (very low-income elderly persons and 
persons with disabilities who have limitations in three or more 
activities of daily living). The application must include evidence of 
current needs among project residents and needs of potential residents 
in the housing market area for such persons including economic and 
demographic information on very low-income, frail, elderly, and persons 
with disabilities and information on current assisted living resources 
in the market area.
    The factor also addresses your inability to fund the repairs or 
conversion activities from existing financial resources. In making this 
determination, HUD will consider the project's financial information. 
Submit information responding to this factor in accordance with 
Application Submission Requirements in Sections IV.B.3.c., 5. a. 
through d., and 10. a. through c. of this NOFA. In evaluating this 
factor, HUD will consider:
    a. (7 points). The need for assisted living among the elderly and 
disabled residents of the project taking into consideration those 
currently in need and the depth of future needs given aging in place.
    b. (3 points). The need for assisted living among very low-income 
elderly persons and persons with disabilities in the housing market 
area.
    c. (9 points). Insufficient funding for any needed conversion work, 
as evidenced by the project's financial statements and specifically the 
lack of excess Reserve for Replacement dollars and residual receipts. 
If the available Reserve for Replacement and residual receipts are less 
than 10 percent of the total funds needed = 9 points; if the available 
Reserve for Replacement and residual receipts are 10-50 percent of need 
= 5 points; and, if the available Reserve for Replacement and residual 
receipts are 51 percent or more of the total funds needed = 0 points).
    d. (1 point). The Department will provide one point to those 
applications which establish a connection between the proposed ALF and 
the community's Analysis of Impediments to Fair Housing Choice (AI) or 
other planning document that analyzes fair housing issues and is 
prepared by a local planning or similar organization.
3. Rating Factor 3: Soundness of Approach (40 Points)
    This factor addresses the quality and effectiveness of your 
proposal in addressing the proposed conversion, effectiveness of 
service coordination and management planning and the meals and 
supportive services which the ALF intends to provide, whether the 
jurisdiction in which the ALF is located has taken successful efforts 
to remove regulatory barriers to affordable housing, whether you will 
incorporate energy efficiency in the design and operation of the 
assisted living facility, provide training, employment, and economic 
opportunities to low- and very low-income persons, and the extent to 
which you have evidenced general support for conversion by 
participating in your community's Consolidated Planning Process, 
involving the residents in the planning process. There must also be a 
relationship between the proposed activities, the project's and the 
community's needs and purposes of the program funding for your 
application to receive points for this factor. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Sections IV.B.3.a. through c. and e., IV. B.5.e.,

[[Page 11998]]

IV.B.6.b. through e., IV. B9.a. through e., g., and h. of this NOFA. In 
evaluating this factor, HUD will consider the following:
    a. (10 points). The extent to which the proposed ALF design will 
meet the special physical needs of frail elderly persons or persons 
with disabilities expected to be served at reasonable cost (consider 
the ALF design: Meets needs = 10 points; ALF design partially meets 
needs = 5 points; and ALF design does not meet needs = 0 points).
    b. (10 points). The extent to which the ALF's proposed management 
and operational plan ensures that the provision of both meals and 
supportive services planned will be accomplished over time. (Consider 
ALF design/management plan: Meets needs of management operations = 10 
points; ALF design/management plan partially meets needs of management 
operations = 5 points; and ALF design/management plan does not meet 
needs of management operations = 0 points.)
    c. (7 points). The extent to which the proposed supportive services 
meet the anticipated needs of the frail elderly and disabled residents 
(does meet = 7 points; partially meets needs = 4 points; and, does not 
meet needs = 0 points); and
    d. (7 points). The extent to which the service coordination 
function is addressed and explained as onsite and sufficient, onsite 
and augmented or new, and addresses the ongoing procurement of needed 
services for the residents of the ALF (does meet = 7 points, partially 
meets = 4 points, does not meet = 0 points).
    e. (2 points). The steps you have taken which support State and 
local efforts in streamlining processes and procedures that eliminate 
redundant requirements, statutes, regulations and codes which impede 
the availability of affordable housing. To receive points for removal 
of regulatory barriers, applicants must include in their response the 
completed Questionnaire HUD Form 27300. (Refer to the General Section 
for further information.)
    f. (2 points). Describe how you plan to incorporate energy 
efficiency activities in the design or the operation of the assisted 
living facility through the use of Energy Star labeled products and 
appliances.
    g. (2 points). To the greatest extent feasible, describe how you 
propose to provide opportunities to train and employ low- and very low-
income persons in the project area; and how you plan to award contracts 
to business concerns which provide economic opportunities to low- and 
very low-income persons and people with disabilities in the project 
area.
4. Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure other community 
resources that can be combined with HUD's grant funds to achieve 
program purposes. For the ALCP to succeed, you must generate local 
funding for the necessary supportive services to operate the ALF. HUD 
also encourages local funding for some of the necessary conversion 
work, or other work needed in the project (e.g., general modernization) 
which is not specifically linked to the ALF).
    Submit information responding to this factor in accordance with 
Application Submission Requirements in Section IV.B.6.h. and i., B.7., 
and B.9.e. through g. of this NOFA.
    a. (5 points). The extent to which there are commitments for the 
funding needed for the meals and the supportive services planned for 
the ALF and that the total cost of the estimated budget of the ALF is 
covered. Consider 90 percent or more commitment of the total budget 
with no more than 10 percent for meals and services = 5 points; 80-89.9 
percent with no more than 20 percent for meals and services = 4 points; 
65-79.9 percent with no more than 35 percent for meals and services = 3 
points; 40-64.9 percent with no more than 60 percent for meals and 
services = 2 points; less than 40 percent commitment of the total 
budget with no more than 60 percent support for meals and services = 0 
points.
    b. (3 points). The extent of local organizations' support, which is 
firmly committed to providing at least 50 percent of the total cost of 
ALF conversion (consider 50% or more = 3 points, 20-49.9 percent = 2 
points, and under 20 percent = 0 points).
    c. (2 points). The extent of local organizational support which is 
firmly committed to providing funds for additional repair or retrofit 
necessary for the project NOT specifically directed to activities 
eligible under this NOFA (funds firmly committed = 2 points, funds not 
committed = 0 points).
5. Rating Factor 5: Achieving Results and Program Evaluation (10 
Points)
    This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability. This factor emphasizes HUD's 
commitment to ensure that promises you make in the application are 
kept; and to ensure performance goals with outcomes are established and 
are met (refer to Section V.B. of the General Section for more detail). 
Outcomes may include the extent to which your project will implement 
practical solutions that will result in assisting residents in 
achieving independent living and an improved living environment, as 
well as the extent to which the project will be viable absent HUD funds 
but rely more on state, local, and private funds. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Section IV.B.3.d., 6.a. through g., and 9.a. through e. 
of this NOFA. Applicants must complete Form HUD-96010, Program Outcome 
Logic Model in responding to this Rating Factor.
    a. (4 points). Describe the extent to which your conversion time 
frame reflects the length of time it will take to convert the units 
describing how residents will benefit from the conversion of the units; 
and how the converted units will result in ALF residents being able to 
age in place;
    b. (2 points). Describe the extent to which your assisted living 
facility will implement practical solutions that will result in 
assisting residents in achieving independent living and improved living 
environment.
    c. (2 points). Demonstrate how the project will be viable absent 
HUD funds while relying more on state, local, and private funds.
    d. (2 points). Describe the extent to which the ALFs operating 
philosophy promotes the autonomy and independence of the frail elderly 
persons it is intended to serve (is fully addressed = 2 points, ``no'' 
or not addressed = 0 points).
6. Bonus Points (2 bonus points)
    The project to be converted is located in an RC/EZ/EC-II area, as 
described in the General Section.

B. Reviews and Selection Process

    1. The ALCP will fund those applications that may impact federal 
problem solving and policymaking and that are relevant to HUD's policy 
priorities and annual goals and objectives. (Refer to the General 
Section for discussion of these priorities and annual goals and 
objectives). For the Assisted Living Conversion Program, applicants who 
include work activities that specifically address the policy priorities 
of removing barriers to affordable housing and promoting energy 
efficiency in the design and operation of the ALF will receive 
additional points. For information pertaining to the removal of 
barriers to affordable housing see www.hud.gov/grants/index.cfm and for 
information about Energy Star see www.energystar.gov.

[[Page 11999]]

    2. Review for Curable Deficiencies. You should ensure that your 
application is complete before submitting it to HUD electronically 
through the http://www.grants.gov/Apply Website. If you received a 
waiver of the electronic submission requirement, you must submit an 
original and four copies to the appropriate HUD Hub Office. Submitting 
fewer than the original and four copies of the application is not a 
curable deficiency and will cause your application to be considered 
non-responsive to the NOFA and returned to you.
    HUD will screen all applications received by the deadline for 
curable deficiencies. With respect to correction of deficient 
applications, HUD may not, after the application due date and 
consistent with HUD's regulations in 24 CFR part 4, subpart B, consider 
any unsolicited information an applicant may want to provide. HUD may 
contact an applicant to clarify an item in the application or to 
correct curable deficiencies. Please note, however, that HUD may not 
seek clarification of items or responses that improve the substantive 
quality of a response to any rating factors. In order not to 
unreasonably exclude applications from being rated and ranked, HUD may 
contact applicants to ensure proper completion of the application and 
will do so on a uniform basis for all applicants. A curable deficiency 
is a missing Exhibit or portion of an Exhibit that will not affect the 
rating of the application. In each case, under this NOFA, the 
appropriate HUD Multifamily Hub office will notify you in writing by 
describing the clarification or curable deficiency. You must submit 
clarifications or responses to curable deficiencies in accordance with 
the information provided by the Hub office within 14 calendar days of 
the date of HUD notification. (If the due date falls on a Saturday, 
Sunday, or federal holiday, your correction must be received by HUD on 
the next day that is not a Saturday, Sunday, or federal holiday.) If 
the deficiency is not corrected within this time period, HUD will 
reject the application as incomplete, and it will not be considered for 
funding. The following is a list of the deficiencies that will be 
considered curable in ALCP applications:

Exhibits/Forms

     *Application Summary.
     *Articles of Incorporation, or certification of Articles 
of Incorporation.
     *By-laws, or certification of by-laws.
     Evidence of occupancy for at least five years.
     Original project plans.
     Relocation Plan.
     Evidence of Permissive Zoning.
     Form SF-424, Application for Federal Assistance.
     Form SF-424 Supplement, Survey for Ensuring Equal 
Opportunity for Applicants.
     Form HUD-424-CB, Grant Applications Detailed Budget.
     Form HUD-424-CBW, Grant Application Detailed Budget 
worksheet.
     Form HUD-2880, Applicant/Recipient Disclosure/Update 
Report.
     Form HUD-2991, Certification of Consistency with the 
Consolidated Plan.
     Form HUD-2994-A, You Are Our Client Survey, optional.
     Standard Form-LLL, Disclosure of Lobbying Activities, if 
applicable.
    The appropriate Hub office will notify you in writing if your 
application is missing any of the exhibits listed above and you will be 
given 14 days from the date of the HUD notification to submit the 
information required to cure the noted deficiencies. The exhibits 
identified by an asterisk (*) must be dated on or before the 
application deadline date. If not so dated the application will be 
rejected.
    After the completeness review, HUD staff will review your 
application to determine whether the application meets the threshold 
requirements.
    3. Threshold Review. Only those ALCP applications that meet all 
threshold requirements will be eligible to receive an award. 
Applications that do not pass threshold will be rejected. (See Section 
III.C 2. above for threshold requirements).
    4. Appeal Process. Upon rejection of an ALCP application, HUD must 
send a letter to the Owner outlining all reasons for rejection. The 
Owner has 14 calendar days from the date of the letter to appeal the 
rejection. If the Owner submits an appeal, which causes the rejection 
to be overturned, the application is then rated, ranked, and submitted 
to the selection panel for consideration. If the Owner does not appeal 
or does appeal but the rejection is not overturned, the application 
remains a reject.
    5. Review Panels. The Office of Housing's Multifamily Hubs will 
establish panels to review all eligible applications that have passed 
threshold.
    6. Rating of Applications. HUD staff teams will review and rate 
ALCP applications in accordance with the Ranking and Selection 
procedures outlined below. All applications will be either rated or 
technically rejected at the end of technical review. If your 
application meets all program eligibility requirements after completion 
of technical review, it will be rated according to the rating selection 
factors in Section V.A. above of this NOFA. HUD reserves the right to 
reduce the amount requested in the application if any proposed 
components are ineligible or if the cost of items is not deemed 
reasonable. HUD will not reject an ALCP application based on technical 
review without notifying you of that rejection with all the reasons for 
the rejection, and providing you an opportunity to appeal. You will 
have 14 calendar days from the date of HUD's written notice to appeal a 
technical rejection to the Multifamily Hub where the applications were 
sent originally. HUD staff will make a determination on an appeal 
before finalizing selection recommendations.
    7. Ranking and Selection Procedures. Applications submitted in 
response to this NOFA that are eligible, pass threshold and have a 
total score of 75 points (or more) are eligible for ranking and 
selection.
    a. Hub staff teams will be established for ALCP review in each Hub 
to do the application ratings.
    b. From within rank order, Hub staff teams in each of the 18 Hubs 
will select the highest ranked applications from within that Hub in 
rank order, which can be funded from within the dollars available. Each 
Hub will select applications based on rank order up to and including 
the last application that can be funded out of each Hub's allocation. 
Hubs must not skip over any applications in order to select one based 
on the funds remaining.
    c. After making the initial selections, however, Hubs may use any 
residual funds to select the next rank-ordered application by reducing 
the dollars requested by no more than 10 percent and reducing the 
number of units proposed, but in no case reducing the number of units 
below the financial threshold feasibility of five ALF units.
    d. Funds remaining after these processes are completed will be 
returned to HUD Headquarters. HUD Headquarters will use these funds to 
restore units to any project reduced as a result of using the residual 
grant funds in a Hub. Finally, HUD will use these funds for selecting 
one or more additional applications based on the Hubs rating and 
rankings, beginning with the highest rated application within the 18 
Hubs. Only one application will be selected per Hub from the national 
residual amount. If there are no approvable applications in other Hubs, 
the process will begin again with the selection of the next highest

[[Page 12000]]

rated application within the remaining Hubs. This process will continue 
until all approvable applications are selected using the available 
remaining funds. If there is a tie score between two or more 
applications, and there are insufficient residual funds to cover all 
tied applications, HUD Headquarters staff will choose the winning 
application(s) by lottery and/or reduction of grant requests consistent 
with the instructions above.

VI. Award Administration Information

A. Award Notices

    1. The Grant Agreement, and the Form HUD-1044, signed by both the 
Recipient and Grant Officer, shall serve as the authorizing award 
documents. Unsuccessful applicants will be notified, by mail, within 30 
days of the announcement of the awards.
    2. Adjustments to Funding. HUD will not fund any portion of your 
application that is not eligible for funding under specific program 
statutory or regulatory requirements; does not meet the requirements of 
this notice; or may be duplicative of other funded programs or 
activities. Only the eligible portion of your application will be 
funded.
    3. Applicant Debriefing. All requests for debriefing must be made 
in writing and submitted to the local Hub in which you applied for 
assistance. Materials provided to you during your debriefing will 
include the final scores you received for each rating factor, final 
evaluator comments for each rating factor, and the final assessment 
indicating the basis upon which assistance was provided or denied. 
Information regarding this procedure may be found in the General 
Section.

B. Administrative and National Policy Requirements

    See Section III.C. of this NOFA and the General Section.

C. Reporting

    Recipients of funding under this program NOFA shall submit a 
progress report every six months after the effective date of the Grant 
Agreement. Every six months owners must report their progress in 
attaining the goals and objectives they proposed in their ALCP Logic 
Model that was included in their application. For FY2006, HUD is 
considering a new concept for the Logic Model. The new concept is a 
Return on Investment (ROI) statement. HUD will be publishing a separate 
notice on the ROI concept.

VII. Agency Contacts

A. For Further Information and Technical Assistance

    You should contact the HUD Multifamily Hub where you will be 
mailing your ALCP Application. For a list of HUD Multifamily Hub 
Offices, see HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    You also may contact Faye Norman, Housing Project Manager at (202) 
708-3000, extension 2482 or Aretha Williams, Director, Grant Policy and 
Management Division, Room 6138 at (202) 708-3000, extension 2480 for 
questions regarding the ALF grant award process. These are not toll-
free numbers. Ms. Norman can be reached by e-mail at Faye-- L.-- 
[email protected] and Ms. Williams at [email protected]. If you 
have a hearing or speech impairment, you may access the telephone 
number via TTY by calling the Federal Information Relay Service at 800-
877-8339.

VIII. Other Information

A. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (4 U.S.C. 3501-3520) and assigned 
OMB control number 2502-0542. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 2,550 hours per annum per respondent for the application and 
grant administration. This includes the time for collecting, reviewing, 
and reporting data for the application, semi-annual 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.

B. Appendix

    Appendix 1 provides a list of HUD Multifamily Hub Offices. Appendix 
1 may be found at HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

BILLING CODE 4210-01-P

[[Page 12001]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.028


[[Page 12002]]



Service Coordinators in Multifamily Housing

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of the Assistant Secretary for Housing-Federal 
Housing Commissioner.
    B. Funding Opportunity Title: Service Coordinators In Multifamily 
Housing
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-26. The OMB approval number is 2502-0447.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.191, 
Multifamily Housing Service Coordinators.
    F. Dates: The application submission date is June 16, 2006. (All 
applications must be submitted and received by http://www.grants.gov no 
later than 11:59:59 p.m. Eastern Time on the application submission 
date. See submission details in the General Section.)
    G. Optional, Additional Overview Information:
    1. Available Funds. Approximately $51.6 million in fiscal year 2006 
funds are available for the Service Coordinator program. Of these 
funds, approximately $10 million are available in this NOFA for funding 
new Service Coordinator programs.
    2. Purpose of the program: The Service Coordinator program allows 
multifamily housing owners to assist elderly individuals and nonelderly 
people with disabilities living in HUD-assisted housing and in the 
surrounding area to obtain needed supportive services from the 
community, to enable them to continue living as independently as 
possible in their homes.
    3. Eligible Applicants: Only owners of eligible multifamily 
assisted developments may apply.

Full Text of Announcement

I. Funding Opportunity Description

A. The Service Coordinator Program

    The Service Coordinator Program provides funding for the employment 
and support of Service Coordinators in insured and assisted housing 
developments that were designed for the elderly or nonelderly persons 
with disabilities and continue to operate as such. Service Coordinators 
help residents obtain supportive services from the community that are 
needed to enable independent living and aging in place.
    A Service Coordinator is a social service staff person hired or 
contracted by the development's owner or management company. The 
Service Coordinator is responsible for assuring that elderly residents, 
especially those who are frail or at risk, and those non-elderly 
residents with disabilities are linked to the supportive services they 
need to continue living independently in their current homes. All 
services should meet the specific desires and needs of the residents 
themselves. The Service Coordinator may not require any elderly 
individual or person with a disability to accept any specific 
supportive service(s).
    You may want to review the Management Agent Handbook 4381.5 
REVISION-2, CHANGE-2, Chapter 8 for further guidance on service 
coordinators. This Handbook is accessible through HUDCLIPS on HUD's Web 
site at http://www.hudclips.org. The Handbook is in the Handbooks and 
Notices--Housing Notices database. Enter the Handbook number in the 
``Document Number'' field to retrieve the Handbook.

B. Authority

    Section 808 of the Cranston-Gonzalez National Affordable Housing 
Act (Pub. L. 101-625, approved November 28, 1990), as amended by 
sections 671, 674, 676, and 677 of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992), 
and section 851 of the American Homeownership and Economic Opportunity 
Act of 2000 (Pub. L. 106-569, approved December 27, 2000).

C. Definition of Terms Used in this Program NOFA

    1. ``Activities of daily living (ADLs)'' means eating, dressing, 
bathing, grooming, and household management activities, as further 
described below:
    a. Eating--May need assistance with cooking, preparing, or serving 
food, but must be able to feed self;
    b. Bathing--May need assistance in getting in and out of the shower 
or tub, but must be able to wash self;
    c. Grooming--May need assistance in washing hair, but must be able 
to take care of personal appearance;
    d. Dressing--Must be able to dress self, but may need occasional 
assistance; and
    e. Home management activities--May need assistance in doing 
housework, grocery shopping, laundry, or getting to and from activities 
such as going to the doctor and shopping, but must be mobile. The 
mobility requirement does not exclude persons in wheelchairs or those 
requiring mobility devices.
    2. ``At-risk elderly person'' is an individual 62 years of age or 
older who is unable to perform one or two ADLs, as defined in the above 
paragraph.
    3. ``Frail elderly person'' means an individual 62 years of age or 
older who is unable to perform at least three ADLs as defined in the 
above paragraph.
    4. ``People with disabilities'' means those individuals who:
    a. Have a disability as defined in Section 223 of the Social 
Security Act;
    b. Have a physical, mental, or emotional impairment expected to be 
of long, continued, and indefinite duration that substantially impedes 
the individual's ability to live independently; or
    c. Have a developmental disability as defined in Section 102 of the 
Developmental Disabilities Assistance and Bill of Rights Act of 2000, 
(42 U.S.C. Section 15002).
    5. ``Reasonable costs'' mean that costs are consistent with 
salaries and administrative costs of similar programs in your Field 
office's jurisdiction.

D. Basic Qualifications of Service Coordinators and Aides

    1. Service Coordinator qualifications include the following:
    a. A Bachelor of Social Work or degree in Gerontology, Psychology 
or Counseling is preferable; a college degree is fully acceptable. You 
may also consider individuals who do not have a college degree, but who 
have appropriate work experience.
    b. Knowledge of the aging process, elder services, disability 
services, eligibility for and procedures of federal and applicable 
state entitlement programs, legal liability issues relating to 
providing Service Coordination, drug and alcohol use and abuse by the 
elderly, and mental health issues.
    c. Two to three years experience in social service delivery with 
senior citizens and/or people with disabilities. Some supervisory or 
management experience may be desirable if the Service Coordinator will 
work with aides.
    d. Demonstrated working knowledge of supportive services and other 
resources for senior citizens and/or non-elderly people with 
disabilities available in the local area.
    e. Demonstrated ability to advocate, organize, problem-solve, and 
provide results for the elderly and people with disabilities.
    2. Aides working with a Service Coordinator should have appropriate 
education or experience in working with the elderly and/or people with 
disabilities. An example of an aide position could be an internship or 
work-

[[Page 12003]]

study program with local colleges and universities to assist in 
carrying out some of the Service Coordinator's functions.

II. Award Information

    A. Available Funding. The Consolidated Appropriations Act, 2006 
(Pub. L. 109-115, approved November 30, 2005) provides approximately 
$51.6 million to fund Service Coordinators and the continuation of 
existing Congregate Housing Services Program (CHSP) grants. (The $51.6 
million appropriation is subject to a 1 percent across-the-board 
rescission pursuant to Public Law 109-148.) Approximately $10 million 
of the available $51.6 million will be used to fund new Service 
Coordinator programs. The remaining amount of $51,084,000 will be used 
to fund one-year extensions to expiring Service Coordinator and CHSP 
grants.
    B. Maximum Grant Award. There is no maximum grant amount. The grant 
amount you request will be based on the Service Coordinator's salary 
and the number of hours worked each week by that Service Coordinator 
(and/or aide). You should base your determination of the appropriate 
number of weekly work hours on the number of people in the development 
who are frail or at-risk elderly or non-elderly people with 
disabilities. Under normal circumstances, a full-time Service 
Coordinator should be able to serve about 50-60 frail or at-risk 
elderly or non-elderly people with disabilities on a continuing basis. 
Your proposed salary must also be supported by evidence of comparable 
salaries in your area. Gather data from programs near you to compare 
your estimates with the salaries and administrative costs of currently 
operating programs. HUD Field staff can provide you with contacts at 
local program sites.
    C. HUD provides funding in the form of three-year grants. HUD may 
renew grants subject to the availability of funds and the grantee's 
acceptable performance and compliance with program requirements. HUD 
will determine performance based on the information given in the 
grantee's semi-annual performance reports, financial status reports, 
and Logic Model forms.

III. Eligibility Information

A. Eligible Applicants

    1. You must meet all of the applicable threshold requirements of 
Section III.C of the General Section.
    2. You must be an owner of a development assisted under one of the 
following programs:
    a. Section 202 Direct Loan;
    b. Project-based Section 8 (including Section 8 Moderate 
Rehabilitation), or
    c. Section 221(d)(3) below-market interest rate, and 236 
developments that are insured or assisted.
    3. Additionally, developments listed in paragraph III.A.2, above, 
are eligible only if they meet the following criteria:
    a. Have frail or at-risk elderly residents and/or non-elderly 
residents with disabilities who together total at least 25 percent of 
the building's residents. (For example, in a 52-unit development, at 
least 13 residents must be frail, at-risk, or non-elderly people with 
disabilities.)
    b. Were designed for the elderly or persons with disabilities and 
continue to operate as such. This includes any building within a mixed-
use development that was designed for occupancy by elderly persons or 
persons with disabilities at its inception and continues to operate as 
such, or consistent with title VI, subtitle D of the Housing and 
Community Development Act of 1992 (Pub. L. 102-550). If not so 
designed, a development in which the owner gives preferences in tenant 
selection (with HUD approval) to eligible elderly persons or nonelderly 
persons with disabilities, for all units in that development.
    c. If FHA insured or financed with a Section 202 Direct Loan, are 
current in mortgage payments or are current under a workout agreement.
    d. Meet HUD's Uniform Physical Conditions Standards (codified in 24 
CFR part 5, subpart G), based on the most recent physical inspection 
report and responses thereto, as evidenced by a score of 60 or better 
on the last physical inspection or by an approved plan for developments 
scoring less than 60.
    e. Are in compliance with their regulatory agreement, Housing 
Assistance Payment (HAP) Contract, and any other outstanding HUD grant 
or contract document.
    f. Have no available project funds (i.e., Section 8 operating 
funds, residual receipts, or excess income) that could pay for a 
Service Coordinator program. (``Available funds'' are those that 
require HUD approval for their use and are not needed to meet critical 
project needs.) Field office staff will make this determination based 
on financial records maintained by the Department and information 
provided by the applicant in the grant application.
    g. You may use funds to continue a Service Coordinator program that 
has previously been funded through other sources. To be deemed 
eligible, you must provide evidence that these resources have already 
ended or will discontinue within six months following the application 
deadline date and that no other funding mechanism is available to 
continue the program. (This applies only to funding sources other than 
the subsidy awards and grants provided by the Department through 
program Notices beginning in FY 1992. HUD currently provides one-year 
extensions to these subsidy awards and grants through a separate 
funding action.)
    4. If your eligibility status changes during the course of the 
grant term, making you ineligible to receive a grant (e.g., due to 
prepayment of mortgage, sale of property, or opting out of a Section 8 
HAP contract), HUD has the right to terminate your grant.
    5. Ineligible Applicants and Developments.
    a. Property management companies, area agencies on aging, and other 
like organizations are not eligible applicants for Service Coordinator 
funds.
    b. Developments not designed for the elderly, nonelderly people 
with disabilities, or those no longer operating as such;
    c. Section 221(d)(4) and Section 515 developments without project-
based Section 8 assistance;
    d. Section 202 and 811 developments with a Project Rental 
Assistance Contract (PRAC). Owners of Section 202 PRAC developments may 
obtain funding by requesting an increase in their PRAC payment 
consistent with Handbook 4381.5 REVISION-2, CHANGE-2, Chapter 8;
    e. Conventional public housing, as such term is defined in section 
3(b) of the United States Housing Act of 1937), and units assisted by 
project-based Housing Choice Vouchers, as set forth in 24 CFR Part 983.
    f. Renewals of existing Section 8 Service Coordinator subsidy 
awards or grants. HUD currently provides one-year extensions to these 
subsidy awards and grants through a separate funding action.

B. Cost Sharing or Matching Requirement

    None required.

C. Other

    1. Eligible Activities. The functions of a Service Coordinator 
position are considered the program's eligible activities. The major 
functions of the Service Coordinator include the following:
    a. Refer and link the residents of the development to supportive 
services provided by the general community. Such services may include 
case

[[Page 12004]]

management, personal assistance, homemaker, meals-on-wheels, 
transportation, counseling, occasional visiting nurse, preventive 
health screening/wellness, and legal advocacy.
    b. Educate residents on service availability, application 
procedures, client rights, etc.
    c. Establish linkages with agencies and service providers in the 
community. Shop around to determine/develop the best ``deals'' in 
service pricing, to assure individualized, flexible, and creative 
services for the involved resident. Provide advocacy as appropriate.
    d. Provide case management when such service is not available 
through the general community. This might include evaluation of health, 
psychological and social needs, development of an individually tailored 
case plan for services, and periodic reassessment of the resident's 
situation and needs. Service Coordinators can also set up a 
Professional Assessment Committee (PAC) to assist in performing initial 
resident assessments. (See the guidance in the Congregate Housing 
Services Program (CHSP) regulations at 24 CFR 700.135 (or 1944.258 for 
Rural Housing developments).)
    e. Monitor the ongoing provision of services from community 
agencies and keep the case management and provider agency current with 
the progress of the individual. Manage the provision of supportive 
services where appropriate.
    f. Help the residents build informal support networks with other 
residents, family and friends.
    g. Work and consult with tenant organizations and resident 
management corporations. Provide training to the development's 
residents in the obligations of tenancy or coordinate such training.
    h. Create a directory of providers for use by both development 
staff and residents.
    i. Educate other staff of the management team on issues related to 
aging in place and Service Coordination, to help them to better work 
with and assist the residents.
    j. Provide service coordination to low-income elderly individuals 
or nonelderly people with disabilities living in the vicinity of an 
eligible development. Community residents should come to your housing 
development to meet with and receive service from the Service 
Coordinator, but you must make reasonable accommodations for those 
individuals unable to travel to the housing site.
    2. Eligible Program Costs. a. Service Coordinator Program grant 
funds may be used to pay for the salary, fringe benefits, and related 
support costs of employing a service coordinator. Support costs may 
include quality assurance, training, travel, creation of office space, 
purchase of office furniture, equipment, and supplies, computer 
hardware, software, and Internet service, and indirect administrative 
costs.
    b. You may use grant funds to pay for Quality Assurance (QA) in an 
amount that does not exceed ten percent of the Service Coordinator's 
salary. Eligible QA activities are those that evaluate your program to 
assure that the position and program are effectively implemented. A 
qualified, objective third party must perform the program evaluation 
work and must have work experience and education in social or health 
care services. Your QA activities must identify short and long term 
program outcomes and performance indicators that will help you measure 
your performance. On-site housing management staff cannot perform QA 
and you may not augment current salaries of in-house staff for this 
purpose.
    c. You may propose reasonable costs associated with setting up a 
confidential office space for the Service Coordinator. Such expenses 
must be one-time only start-up costs. Such costs may involve 
acquisition, leasing, rehabilitation, or conversion of space. The 
office space must be accessible to people with disabilities and meet 
the Uniform Federal Accessibility Standards (UFAS) requirements of 
accessibility. HUD field office staff must approve both the proposed 
costs and activity and must perform an environmental assessment on such 
proposed work prior to grant award.
    d. Only ALCP applicants may use funds to augment a current Service 
Coordinator program, by increasing the hours of a currently employed 
Service Coordinator, or hiring an additional Service Coordinator or 
aide on a part- or full-time basis. The additional hours and/or staff 
must work only with ALCP residents.
    2. Threshold Requirements. a. At the time of submission, grant 
applications must contain the materials in Section IV.B.2.a and c of 
this NOFA in order to be considered for funding. If any of these items 
are missing, HUD will immediately reject your application.
    b. In cases where field office staff request information in 
response to technical deficiencies in applications, applicants must 
submit the response by the designated deadline date. If requested 
responses are not received by this date, HUD will reject the 
application.
    c. DUN and Bradstreet Universal Numbering System (DUNS) Number 
Requirement. Refer to the General Section for information regarding the 
DUNS requirement. You will need to obtain a DUNS number to receive an 
award from HUD.
    3. Program Requirements. In managing your Service Coordinator 
grant, you must meet the requirements of this Section. These 
requirements apply to all activities, programs, and functions used to 
plan, budget, and evaluate the work funded under your program.
    a. You must make sufficient separate and private office space 
available for the Service Coordinator and/or aides to meet with 
residents, without adversely affecting normal activities.
    b. The Service Coordinator must maintain resident files in a 
secured location. Files must be accessible ONLY to the Service 
Coordinator, unless residents provide signed consent otherwise. These 
policies must be consistent with maintaining confidentiality of 
information related to any individual per the Privacy Act of 1974.
    c. Grantees must ensure that the Service Coordinator receives 
appropriate supervision, training, and ongoing continuing education, 
consistent with statutory and HUD administrative requirements. This 
includes 36 hours of training in age-related and disability issues 
during the first year of employment, if the Service Coordinator has not 
received recent training in these areas, and 12 hours of continuing 
education each year thereafter.
    d. Grantees are responsible for any budget shortfalls during the 
three-year grant term.
    e. As a condition of receiving a grant, Section 202 developments 
without a dedicated residual receipts account must amend their 
regulatory agreement and open such an account, separate from their 
Reserve for Replacement account.
    f. Subgrants and Subcontracts. You may directly hire a Service 
Coordinator or you may contract with a qualified third party to provide 
this service.
    g. Environmental Requirements. It is anticipated that most 
activities under this program are categorically excluded from the 
National Environmental Policy Act (NEPA) and related environmental 
authorities under 24 CFR 50.19(b)(3), (4), (12), or (13). If grant 
funds will be used to cover the cost of any activities which are not 
exempt from environmental review requirements--such as acquisition, 
leasing, construction, or building rehabilitation,

[[Page 12005]]

HUD must perform an environmental review to the extent required by 24 
CFR part 50, prior to grant award. HUD Field office staff will 
determine the need for an environmental assessment, based on the 
proposed program activities.

IV. Application and Submission Information

    A. Obtaining Grant Application Packages. Applicants may download 
the Instructions to the application found on the grants.gov Web site at 
http://www.Grants.gov/Apply. The instructions contain the General 
Section and Program Section of the published NOFA as well as forms that 
you must complete and attach as a zip file to your application 
submission. If you have difficulty accessing the information, you may 
call the Grants.gov Support desk toll free at 800-518-GRANTS or e-mail 
your questions to Grants.gov">Support@Grants.gov. The Support Desk staff will 
assist you in accessing the information.
    B. Content and Form of Application Submission. Your application 
must contain the items listed in paragraphs 1 and 2, below. These items 
include the standard forms listed in Section IV.B of the General 
Section that are applicable to this funding Notice (collectively 
referred to as the ``standard forms''). The standard forms and other 
required forms are part of the electronic application found at http://www.grants.gov/Apply. The items are as follows:
    1. Standard Forms. a. Application for Federal Assistance (SF-424)
    b. SF-424 Supplement--Survey on Ensuring Equal Opportunity for 
Applicants.
    c. If engaged in lobbying, the Disclosure Form Regarding Lobbying 
(SF-LLL).
    d. Applicant/Recipient Disclosure/Update Report Form (HUD-2880).
    e. Logic Model, (HUD-96010). This year HUD is providing on its Web 
site, at http://www.hud.gov/offices/adm/grants/fundsavail.cfm, a Master 
Logic model from which applicants may select the items in each column 
that reflect their anticipated activity outputs and outcomes and copy 
and paste them into the appropriate column in the Logic Model form. You 
must select the outputs from the master output listing that reflect 
your proposed program and enter the information into the output column 
of the form. Likewise, you must enter the appropriate outcomes in the 
outcome column from the output list provided. The Master Logic Model 
listing also identifies the unit of measure that HUD is interested in 
collecting for the outputs and outcomes selected. In making the 
selections, you must identify the appropriate predicted number of units 
of measure to be accomplished for each out put and outcome. Use the 
space next to the output and outcome to identify the anticipated units 
of measure. You may select multiple outputs and outcomes. See HUD's Web 
site for the Master Logic Model for the Service Coordinator program.
    f. Acknowledgment of Application Receipt (HUD-2993), for applicants 
submitting paper applications only.
    g. You Are Our Client Grant Applicant Survey (HUD 2994-A), 
optional.
    h. Facsimile Transmittal Cover Page (HUD-96011), (if applicable). 
This form must be used as part of the electronic application to 
transmit third party documents and other information as described in 
the General Section.
    2. Other Application Items. All applications for funding under the 
Service Coordinator Program must include the following documents and 
information:
    a. Service Coordinator First-Time Funding Request, form HUD-91186.
    b. Evidence of comparable salaries in your local area.
    c. Narrative Statements Describing Your Program.
    (1) Explain your method of estimating how many residents of your 
development are frail or at-risk elderly or non-elderly people with 
disabilities. Please document that individuals meeting these criteria 
make up at least 25 percent of your resident population. (Do not 
include elderly individuals or people with disabilities who do not live 
in the eligible developments included in your application.)
    (2) Explain how you will provide on-site private office space for 
the Service Coordinator, to allow for confidential meetings with 
residents. If construction is planned, also include a plan and a cost-
estimate.
    (3) Your quality assurance program evaluation activities and 
itemized list of estimated expenses for this activity if included in 
your request for funding. Indicate the type of professional or entity 
that will perform the work if known at this time or the criteria you 
will use to select the provider.
    (4) A description of your plan to address community resident needs, 
if applicable to your program.
    (5) If you are applying for an ALCP grant in conjunction with your 
Service Coordinator application, describe how the new or additional 
Service Coordinator hours will support your proposed assisted living 
program.
    Indicate if you want your Service Coordinator application entered 
into the lottery if your ALCP application is not selected to receive an 
award. In this instance, your SC application will be eligible only if 
the concerned housing development currently has no SC program.
    d. Evidence that no project funds are available to fund a Service 
Coordinator program. You must include a copy of your development's most 
recent bank statement (or the equivalent thereof), showing the 
project's current residual receipts or excess income balance (if any). 
It is incumbent upon the applicant to demonstrate that no such project 
funds are available.
    e. If applicable, provide evidence that prior funding sources for 
your development's Service Coordinator program are no longer available 
or will expire within six months following the application deadline 
date.
    f. Agents may prepare applications and sign application documents 
if they provide authorization from the owner corporation as part of the 
application. In such cases, the owner corporation must be indicated on 
all forms and documents as the funding recipient.
    (1) If an agent is preparing an electronic application for an 
owner, the owner must authorize the agent as the Authorized 
Organization Representative (AOR) in the Grants.gov Registration 
process. HUD will recognize this authority if the DUNS number included 
in the application belongs to the owner corporation and the name of the 
agent is listed as the AOR. Refer to Section IV.F. of the General 
Section for more detailed registration information.
    (2) If you are applying in paper copy format, you must provide a 
letter from the owner authorizing the submission by the agent on their 
behalf.
    3. Single and Joint Applications. a. Single Applications.
    (1) You may submit one application that contains one or more 
developments that your corporation owns. Submitting one application for 
each project you own will increase your chances of selection in the 
lottery. You may also submit one application that contains multiple 
projects you own, to reduce preparation time and resources.
    Each application must propose a stand-alone program at separate 
developments. The developments must all be located in the same field 
office jurisdiction.
    (2) If you wish to apply on behalf of developments located in 
different field office jurisdictions, you must submit a separate 
application to each field office.
    b. Joint Applications. You may join with one or more other eligible 
owners to share a Service Coordinator and submit a joint application. 
Small developments often join together to hire

[[Page 12006]]

and share a part or full-time Service Coordinator and submit a joint 
application. If more than one owner is proposing to share a Service 
Coordinator, one agency must designate itself the ``lead''. When the 
legal signatory for the owner corporation signs the application, the 
owner indicates agreement to administer grant funds for all the housing 
developments listed in the application.
    4. Application Submission Requirements for ALCP Applicants. (1) If 
you are an ALCP applicant and you request new or additional Service 
Coordinator funds specifically for your proposed Assisted Living 
Program, you must submit an application containing all required 
documents listed in Section IV.B of this NOFA. You may include a copy 
of all standard forms submitted as part of your ALCP application.
    (2) If you currently do not have a Service Coordinator working at 
the development proposed in your ALCP application and your ALCP 
application is selected to receive an award, HUD will fund a Service 
Coordinator to serve either ALCP residents only or all residents of the 
development dependent upon your request. If your development currently 
has a Service Coordinator, you may request additional hours for the 
Service Coordinator to serve the Assisted Living residents only. If you 
request additional hours, you must specify the number of additional 
hours per week and provide an explanation based on the anticipated 
needs of the Assisted Living residents. If you request Service 
Coordinator funding to serve all residents of your development, 
indicate whether or not your request should be entered into the 
national lottery if your ALCP application is not selected to receive an 
award. Provide this information in your related narrative, pursuant to 
paragraph IV.B.2.c(6) of this NOFA.
    C. Submission Dates and Times. The application submission date is 
June 16, 2006. (All applications must be submitted and received by 
http://www.grants.gov no later than 11:59:59 p.m. Eastern Time on the 
application submission date. See submission details in the General 
Section.)
    D. Intergovernmental Review: Not applicable to this program.
    E. Funding Restrictions. 1. Alternative Funding for Service 
Coordinators. If your development has available Section 8 operating 
funds, residual receipts, or excess income (i.e. ``project funds''), 
not needed for critical project expenses, you must use these project 
funds prior to receiving grant monies. Owners may submit requests to 
use Section 8 operating funds, residual receipts, or excess income 
pursuant to instructions in Housing's Management Agent Handbook 4381.5, 
REVISION-2, CHANGE-2, Chapter 8 and Housing Notice H 02-14. HUD field 
staff may approve use of these project funds at any time, consistent 
with current policy. You should discuss the use of project funds with 
your field office staff prior to submitting a grant application.
    2. Ineligible Activities and Program Costs.
    a. You may not use funds available through this NOFA to replace 
currently available funding from other sources for a Service 
Coordinator or for some other staff person who performs service 
coordinator functions.
    b. Owners with existing service coordinator subsidy awards or 
grants may not apply for renewal or extension of those programs under 
this NOFA. HUD will provide extension funds through a separate funding 
process.
    c. Non-ALCP applicants may not use funds to augment a current 
Service Coordinator program, by increasing the hours of a currently 
employed Service Coordinator, or hiring an additional Service 
Coordinator or aide on a part- or full-time basis. HUD will award 
grants only to eligible projects that do not currently have (or are 
served by) an SC program, regardless of the funding source used to 
operate the program.
    d. Grant recipients may not use grant funds to pay for supervision 
performed by property management staff. (Management fees already pay 
for such supervision.)
    e. Cost overruns associated with creating private office space and 
usual audit and legal fees are not eligible uses of grant funds.
    f. The cost of application preparation is not eligible for 
reimbursement.
    g. Grant funds cannot be used to increase a project's management 
fee.
    h. Grant funds may not cover the cost of Service Coordinator-
related training courses for members of a development's management 
staff who do not directly provide Service Coordination. Owners must use 
their management fees to pay this expense.
    i. Owners/managers cannot use Reserve for Replacement funds to pay 
costs associated with a Service Coordinator program.
    j. Congregate Housing Services Program grantees may not use these 
funds to meet statutory program match requirements and may not use 
these funds to replace current CHSP program funds to continue the 
employment of a service coordinator.
    k. Grantees cannot use grant funds to pay PAC members for their 
services.
    l. The grant amount allowed for QA may not exceed ten percent of 
the Service Coordinator's salary.
    3. Prohibited Service Coordinator Functions. Service Coordinators 
may not perform the following activities:
    a. Act as a recreational or activities director;
    b. Provide supportive services directly;
    c. Act as a Neighborhood Networks program director or coordinator, 
and
    d. Perform property management work, regardless of the funding 
source used to pay for these activities.
    F. Other Submission Requirements: 1. Application Submission and 
Receipt Procedures. Carefully review the procedures presented in 
Section IV.F of the General Section. All applicants submitting Service 
Coordinator applications must submit applications electronically.
    2. Waiver of Electronic Submission Requirement. Please see the 
General Section for detailed instructions and timelines for requesting 
a waiver of the mandatory electronic submission requirement.
    3. Application Copies. Applicants submitting electronic 
applications must submit just one application to http://www.grants.gov. 
Applicants who receive a waiver for electronic submission must submit 
an original and two copies to the field office with jurisdiction over 
the housing developments included in your application. If you send your 
application to the wrong local HUD Office, it will be rejected. 
Therefore, if you are uncertain as to which local HUD Office to submit 
your application, you are encouraged to contact the local HUD Office 
that is closest to your development's location to ensure that you 
submit your application to the correct local HUD Office.
    4. Field Office Addresses. For a list of field office addresses, 
see HUD's Web site at http://www.hud.gov/local/index.cfm.

V. Application Review Information

A. Criteria

    1. HUD will not award Service Coordinator Program grant funds 
through a rating and ranking process. Instead, the Department will hold 
one national lottery for all applications determined to be eligible by 
Multifamily Hub and Multifamily Program Centers.
    2. Threshold Eligibility Review. HUD Multifamily field office staff 
will review applications for completeness and compliance with the 
eligibility criteria set forth in Section III of this NOFA. Field 
office staff will deem an

[[Page 12007]]

application eligible if the electronic application was submitted and 
received by http://www.Grants.gov no later than 11:59:59 PM on June 16, 
2006. Paper applications will be considered eligible if they are 
received by the field office on or before the deadline date and meet 
the application timely receipt requirements for paper copy submission 
in the General Section. To be eligible for the lottery, in addition to 
meeting the timely submission requirement, an applicant must meet all 
eligibility criteria; propose reasonable costs for eligible activities, 
and, if technical corrections are requested during the review process, 
provide the technical correction(s) by the timeframe stated in the 
request.

B. Review and Selection Process

1. Funding Priorities
    a. Prior to the lottery, HUD will fund Service Coordinator 
applications submitted by FY2006 ALCP applicants, whose ALCP 
applications are selected for funding under that program's NOFA. HUD 
estimates that approximately $1 million will be used to fund ALCP 
Service Coordinator applications. Any funds not used by the ALCP 
program to fund service coordinators will be added to the funds 
available for the National Lottery.
    b. After setting aside funds for ALCP applicants, and prior to the 
lottery, HUD will next fund all applications submitted by owners who 
are applying for grant funds to continue a currently operating program 
previously funded through project funds. As stated in paragraph 
III.A.4.f of this NOFA, such applications are eligible only if project 
funds are no longer available to continue the program.
2. Selection Process
    a. HUD will use remaining funds to make grant awards through the 
use of a national lottery. A computer program performs the lottery by 
randomly selecting eligible applications.
    b. HUD will fully fund as many applications as possible with the 
given amount of funds available. After all fully fundable applications 
have been selected by lottery, HUD may make an offer to partially fund 
the next application on the lottery's list, in order to use the entire 
amount of funds allocated. If the applicant selected for partial 
funding turns down the offer, HUD will make an offer to partially fund 
the next application on the lottery list. HUD will continue this 
process until an applicant accepts the partial funding offer.
    3. Reduction in Requested Grant Amount. HUD may make an award in an 
amount less than requested, if:
    a. HUD determines that some elements of your proposed program are 
ineligible for funding;
    b. There are insufficient funds available to make an offer to fully 
fund the application;
    c. HUD determines that reduced grant amount would prevent 
duplicative federal funding.
    4. Corrections to Deficient Applications. Section V.B. of the 
General Section provides the procedures for corrections to deficient 
applications.

VI. Award Administration Information

    A. Award Notices. HUD field staff will send, by postal or overnight 
mail, selection letters and grant agreements to the award recipient 
organization. The grant agreement is the obligating document and funds 
are obligated once the HUD grant officer signs the agreement. Field 
staff will send non-selection letters during this same period of time. 
If your application is rejected, field staff may notify you by letter 
any time during the application review process.
    B. Administrative and National Policy Requirements. None.
    C. Reporting. All award recipients must submit the following 
reports on a yearly basis:
    1. Two Semi-Annual Financial Status Reports (SF-269-A), for each 
half-year period of the federal fiscal year;
    2. Two Semi-Annual Service Coordinator Performance Reports, (HUD-
92456), for each half-year period of the federal fiscal year;
    3. Two completed Logic Model forms, HUD-96010, submitted as an 
attachment to each Semi-Annual Performance Report. The Logic Model must 
present performance information on a short term basis, corresponding to 
each six-month reporting period; on an intermediate basis, i.e. 
annually, and in the long-term, reporting results for the entire grant 
term showing progress related to program outputs and outcomes as 
specified in your approved Logic Model incorporated into your grant 
agreement. The objectives of the Service Coordinator program are to 
enhance a resident's quality of life and ability to live independently 
and to age in place. The data that HUD collects on the performance 
report and Logic Model measures, in a quantitative form, the grantee's 
success in meeting these intended program outcomes.
    4. Periodic reimbursement requests (i.e., Payment Voucher, form 
HUD-50080-SCMF), providing program expenses for the associated time 
period, and submitted in accordance with the due dates stated in the 
grant agreement. Grantees must request grant payments directly 
following the end of each agreed-upon time period and the funds must 
reimburse those program costs already incurred.
    5. If your grant includes Quality Assurance activities, you must 
provide a copy of at least one annual report that your QA provider 
submits to you each year. You must submit this copy along with the 
semi-annual reports that are due on October 30 of each year. The QA 
provider's report that you submit to HUD must include the following 
information: Who performed the QA work, when the review(s) was 
conducted, and the results of the evaluation. The results should 
include such information as how many residents were served, the types 
of services they receive, the training sessions attended by the Service 
Coordinator, and the extent of resident satisfaction with the program. 
HUD will use this report, in tandem with other reports and performance 
data, to determine a grantee's acceptable program performance.

VII. Agency Contacts

    You may contact your local HUD field office staff for questions you 
have regarding this NOFA and your application. Please contact the 
Multifamily Housing Service Coordinator contact person in your local 
office. If you are an owner of a Section 515 development, contact the 
HUD field office that monitors your Section 8 contract. If you have a 
question that the field staff is unable to answer, please call Carissa 
Janis, Housing Project Manager; Office of Housing Assistance and Grants 
Administration; Department of Housing and Urban Development; 451 
Seventh Street, SW., Room 6146; Washington, DC 20410-8000; (202) 708-
3000, extension 2487 (this is not a toll-free number). If you are 
hearing- or speech-impaired, you may access this number via TTY by 
calling the Federal Information Relay Service at 800-877-8339.

VIII. Other Information

    A. Satellite Broadcast. HUD will hold an information program for 
potential applicants via satellite broadcast to learn more about the 
program and preparation of the application. For more information about 
the date and time of the broadcast, you should contact your local field 
office staff or consult the HUD Web site at http://www.hud.gov.
    B. Paperwork Reduction Act. The information collection requirements 
contained in this document have been

[[Page 12008]]

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 2502-0477. In accordance with the Paperwork Reduction 
Act, HUD may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection displays 
a currently valid OMB control number. Public reporting burden for the 
collection of information is estimated to average 50.25 hours per annum 
per respondent for the application and grant administration. This 
includes the time for collecting, reviewing, and reporting the data for 
the application, semi-annual reports and final report. The information 
will be used for grantee selection and monitoring the administration of 
funds. Response to this request for information is required in order to 
receive the benefits to be derived.

BILLING CODE 4210-01-P

[[Page 12009]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.029


[[Page 12010]]



Section 202 Supportive Housing for the Elderly Program (Section 202 
Program)

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Housing
    B. Funding Opportunity Title: Section 202 Supportive Housing for 
the Elderly
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-22. The OMB Approval Number is 2502-0267.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.157, 
Section 202 Supportive Housing for the Elderly.
    F. Dates: The application deadline date is on or before June 2, 
2006. Refer to Section IV of this NOFA and to the General Section for 
information on electronic application submission and receipt 
requirements.
    G. Optional, Additional Overview Content Information:
    1. Purpose of the Program. This program provides funding for the 
development and operation of supportive housing for very low-income 
persons 62 years of age or older.
    2. Available Funds. Approximately $443.2 mllion in capital advance 
funds, plus associated project rental assistance contract (PRAC) funds 
and any carryover funds available.
    3. Types of Funds. Capital advance funds will cover the cost of 
developing the housing. PRAC funds will cover the difference between 
the HUD-approved operating costs of the project and the tenants' 
contributions toward rent (30 percent of their adjusted monthly 
income).
    4. Eligible Applicants. Private nonprofit organizations and 
nonprofit consumer cooperatives. (See Section III.C.3.k of this NOFA 
for further details and information regarding the formation of the 
Owner corporation).
    5. Eligible Activities. New construction, rehabilitation, or 
acquisition (with or without rehabilitation) of housing. (See Section 
III.C.1. below of this NOFA for further information.
    6. Match Requirements. None required.
    7. Local HUD Offices. The local HUD office structure, for the 
purpose of implementing the Section 202 program, consists of 18 
Multifamily Hub Offices. Within the Multifamily Hubs, there are 
Multifamily Program Centers with the exception of the New York Hub, the 
Buffalo Hub, the Denver Hub and the Los Angeles Hub. All future 
references shall use the term ``local HUD office'' unless a more 
detailed description is necessary as in Limitations on Applications and 
Ranking and Selection Procedures, below.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. HUD provides capital advances and contracts 
for project rental assistance in accordance with 24 CFR part 891. 
Capital advances may be used for the construction or rehabilitation of 
a structure, or acquisition of a structure with or without 
rehabilitation (including structures from the Federal Deposit Insurance 
Corporation (FDIC)). Capital advance funds bear no interest and are 
based on development cost limits in Section IV.E.3. Repayment of the 
capital advance is not required as long as the housing remains 
available for occupancy by very low-income elderly persons for at least 
40 years.
    PRAC funds are used to cover the difference between the tenants' 
contributions toward rent (30 percent of adjusted income) and the HUD-
approved cost to operate the project. PRAC funds may also be used to 
provide supportive services and to hire a service coordinator in those 
projects serving frail elderly residents. The supportive services must 
be appropriate to the category or categories of frail elderly residents 
to be served.
    B. Authority. The Section 202 Supportive Housing for the Elderly 
Program is authorized by section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q), as amended by section 801 of the Cranston-Gonzalez 
National Affordable Housing Act (Pub. L. 101-625; approved November 28, 
1990); the Housing and Community Development Act of 1992 (Pub. L. 102-
550; approved October 28, 1992); the Rescissions Act (Pub. L. 104-19; 
enacted on July 27, 1995); the American Homeownership and Economic 
Opportunity Act of 2000 (Pub. L. 106-569; approved December 27, 2000); 
the Department of Housing and Urban Development Appropriations Act, 
2006 (Pub. L. 109-115; approved November 30, 2005); and the government-
wide rescissions pursuant to the Department of Defense Appropriations 
Act, 2006 (Pub. L. 109-148; approved December 30, 2005).
    C. Calculation of Fund Reservation. If selected, you will receive a 
fund reservation that will consist of both a reservation of capital 
advance funds and a reservation of three years for project rental 
assistance.
    1. Capital Advance Funds. The reservation of capital advance funds 
is based on a formula which takes the development cost limit for the 
appropriate building type (elevator, non-elevator) and unit size(s) and 
multiplies it by the number of units of each size (including a unit for 
a resident manager, if applicable) and then multiplies the result by 
the high cost factor for the area. The development cost limits can be 
found in Section IV.E.3. of this NOFA.
    2. PRAC Funds. The initial PRAC award covers three years. The 
amount awarded is determined by multiplying the number of revenue units 
for elderly persons by the appropriate operating cost standard times 3. 
The operating cost standards will be published by Notice.

II. Award Information

    A. Available Funds. For FY2006, approximately $443,167,647 is 
available for capital advances for the Section 202 Supportive Housing 
for the Elderly Program. The Department of Housing and Urban 
Development Appropriations Act, 2006 (Pub. L. 109-115, approved 
November 30, 2005) provides $742,000,000 for capital advances, 
including amendments to capital advance contracts, for supportive 
housing for the elderly as authorized by section 202 of the Housing Act 
of 1959 (12 U.S.C. 1701q), as amended by section 801 of the Cranston-
Gonzalez National Affordable Housing Act (Pub. L. 101-625, approved 
November 28, 1990), for project rental assistance, amendments to 
contracts for project rental assistance, and the renewal of expiring 
contracts for such assistance for up to a one-year term, for supportive 
housing for the elderly under section 202(c)(2) of the Housing Act of 
1959 as well as the amount of $400,000 to be transferred to the Working 
Capital Fund, all of which is subject to a 1 percent across-the-board 
rescission pursuant to Public Law 109-148. Additionally, of the amount 
appropriated, approximately $51,600,000 is provided for Service 
Coordinators and the continuation of Congregate Services grants, up to 
$24,800,000 is provided for Assisted Living Conversion grants and 
Emergency Capital Repairs, $20,000,000 is provided for a Section 202 
Demonstration Planning Grant program, and approximately $4,000,000 is 
provided for a Section 202 Demonstration Program for Elderly Housing 
for Intergenerational Families pursuant to section 203 of Public Law 
108-186.
    The announcement of the availability of the funds for the Service 
Coordinators and the continuation of Congregate Services as well as the 
Assisted Living

[[Page 12011]]

Conversion program is covered elsewhere in this NOFA.
    The announcement of the availability of funds for Emergency Capital 
Repairs, the Section 202 Demonstration Planning Grant program, and the 
Section 202 Demonstration Program for Elderly Housing for 
Intergenerational Families will be addressed in a future Federal 
Register.
    In accordance with the waiver authority provided in the Department 
of Housing and Urban Development Appropriations Act, 2006, the 
Secretary is waiving the following statutory and regulatory provision: 
The term of the project rental assistance contract is reduced from 20 
years to 3 years. HUD anticipates that at the end of the contract 
terms, renewals will be approved subject to the availability of funds. 
In addition to this provision, HUD will reserve project rental 
assistance contract funds based on 75 percent rather than on 100 
percent of the current operating cost standards for approved units in 
order to take into account the average tenant contribution toward rent.
    The allocation formula used for Section 202 reflects the ``relevant 
characteristics of prospective program participants,'' as specified in 
24 CFR 791.402(a). The FY2006 formula consists of one data element from 
the 2000 Census: Number of one-person elderly renter households 
(householder age 62 and older) with incomes at or below the applicable 
Section 8 very low-income limit, and with housing conditions. Housing 
conditions are defined as paying more than 30 percent of income for 
gross rent, or occupying a unit lacking some or all kitchen or plumbing 
facilities, or occupying an overcrowded unit (1.01 persons per room or 
more).
    Under Section 202, 85 percent of the total capital advance amount 
is allocated to metropolitan areas and 15 percent to nonmetropolitan 
areas. In addition, each local HUD office jurisdiction receives 
sufficient capital advance funds for a minimum of 20 units in 
metropolitan areas and 5 units in nonmetropolitan areas. The total 
amount of capital advance funds to support these minimum set-asides are 
subtracted from the respective (metropolitan or nonmetropolitan) total 
capital advance amounts available. The remainder is fair shared to each 
local HUD office jurisdiction whose fair share exceeds the minimum set-
aside based on the allocation formula fair share factors described 
below.


    Note: The allocations for metropolitan and nonmetropolitan 
portions of the local HUD office jurisdictions reflect the 
definitions of metropolitan and nonmetropolitan areas as of the June 
2003 definitions by the Office of Management and Budget.

    A fair share factor is developed for each metropolitan and 
nonmetropolitan portion of each local HUD office jurisdiction by 
dividing the number of elderly renter households in the respective 
metropolitan and nonmetropolitan portion of the jurisdiction by the 
total number of elderly rental households in the metropolitan and 
nonmetropolitan portions of the United States. The resulting percentage 
for each local HUD office jurisdiction is then adjusted to reflect the 
relative cost of providing housing among the local HUD office 
jurisdictions. The adjusted needs percentage for the applicable 
metropolitan or nonmetropolitan portion of each jurisdiction is then 
multiplied by the respective total remaining capital advance funds 
available nationwide. Based on the allocation formula, HUD has 
allocated the available capital advance funds as shown on the following 
chart:

                                 FY 2006 Section 202 Allocations by Field Office
----------------------------------------------------------------------------------------------------------------
                                             Metropolitan               Nonmetro                  Totals
                                      --------------------------------------------------------------------------
               Offices                              Capital                  Capital                  Capital
                                        Units       advance      Units       advance      Units       advance
----------------------------------------------------------------------------------------------------------------
                                                   Boston Hub
----------------------------------------------------------------------------------------------------------------
Boston...............................      129     $15,564,417        5        $601,448      134     $16,165,865
Hartford.............................       65       7,946,297        9       1,052,092       74       8,998,389
Manchester...........................       40       3,881,135       23       2,157,316       63       6,038,451
Providence...........................       40       4,827,240  .......  ..............       40       4,827,240
                                      --------------------------------------------------------------------------
    Total............................      274      32,219,089       37       3,810,856      311      36,029,945
----------------------------------------------------------------------------------------------------------------
                                                  New York Hub
----------------------------------------------------------------------------------------------------------------
New York.............................      310      38,617,068        5         622,188      315      39,239,256
----------------------------------------------------------------------------------------------------------------
                                                   Buffalo Hub
----------------------------------------------------------------------------------------------------------------
Buffalo..............................       87       9,248,360       25       2,640,360      112      11,888,720
----------------------------------------------------------------------------------------------------------------
                                                Philadelphia Hub
----------------------------------------------------------------------------------------------------------------
Charleston...........................       20       1,814,715       11         992,898       31       2,807,613
Newark...............................      146      17,993,806  .......  ..............      146      17,993,806
Philadelphia.........................      126      14,572,884       18       2,023,930      144      16,596,814
Pittsburgh...........................       64       6,318,624       14       1,417,082       78       7,735,706
                                      --------------------------------------------------------------------------
    Total............................      356      40,700,029       43       4,433,910      399      45,133,939
----------------------------------------------------------------------------------------------------------------
                                                  Baltimore Hub
----------------------------------------------------------------------------------------------------------------
Baltimore............................       63       6,064,734        5         482,196       68       6,546,930
Washington...........................       60       6,431,887  .......  ..............       60       6,431,887
Richmond.............................       58       5,137,294       15       1,282,127       73       6,419,421
                                      ----------

[[Page 12012]]

 
    Total............................      181      17,633,915       20       1,764,323      201      19,398,238
----------------------------------------------------------------------------------------------------------------
                                                 Greensboro Hub
----------------------------------------------------------------------------------------------------------------
Columbia.............................       43       4,026,055       13       1,193,046       56       5,219,101
Greensboro...........................       64       7,164,349       29       3,254,193       93      10,418,542
                                      --------------------------------------------------------------------------
    Total............................      107      11,190,404       42       4,447,239      149      15,637,643
----------------------------------------------------------------------------------------------------------------
                                                   Atlanta Hub
----------------------------------------------------------------------------------------------------------------
Atlanta..............................       66       5,652,196       20       1,724,942       86       7,377,138
Knoxville............................       20       1,638,428        9         727,670       29       2,366,098
Louisville...........................       42       3,792,284       20       1,855,095       62       5,647,379
Nashville............................       43       3,654,088       14       1,216,238       57       4,870,326
San Juan.............................       36       3,600,655        5         505,528       41       4,106,183
                                      --------------------------------------------------------------------------
    Total............................      207      18,337,651       68       6,029,473      275      24,367,124
----------------------------------------------------------------------------------------------------------------
                                                Jacksonville Hub
----------------------------------------------------------------------------------------------------------------
Birmingham...........................       47       3,868,900       17       1,367,390       64       5,236,290
Jackson..............................       20       1,607,319       18       1,413,145       38       3,020,464
Jacksonville.........................      186      15,229,308       12         950,260      198      16,179,568
                                      --------------------------------------------------------------------------
    Total............................      253      20,705,527       47       3,730,795      300      24,436,322
----------------------------------------------------------------------------------------------------------------
                                                   Chicago Hub
----------------------------------------------------------------------------------------------------------------
Chicago..............................      150      17,751,418       23       2,707,777      173      20,459,195
Indianapolis.........................       69       6,295,375       19       1,696,015       88       7,991,390
                                      --------------------------------------------------------------------------
    Total............................      219      24,046,793       42       4,403,792      261      28,450,585
----------------------------------------------------------------------------------------------------------------
                                                  Columbus Hub
----------------------------------------------------------------------------------------------------------------
Cincinnati...........................       51       4,627,889        5         451,086       56       5,078,975
Cleveland............................       81       7,867,659       14       1,374,696       95       9,242,355
Columbus.............................       40       3,575,488       15       1,339,012       55       4,914,500
                                      --------------------------------------------------------------------------
    Total............................      172      16,071,036       34       3,164,794      206      19,235,830
----------------------------------------------------------------------------------------------------------------
                                                   Detroit Hub
----------------------------------------------------------------------------------------------------------------
Detroit..............................       85       8,911,136       10       1,014,397       95       9,925,533
Grand Rapids.........................       42       3,774,205       14       1,291,955       56       5,066,160
                                      --------------------------------------------------------------------------
    Total............................      127      12,685,341       24       2,306,352      151      14,991,693
----------------------------------------------------------------------------------------------------------------
                                                 Minneapolis Hub
----------------------------------------------------------------------------------------------------------------
Minneapolis..........................       63       6,942,229       23       2,522,537       86       9,464,766
Milwaukee............................       73       7,717,849       23       2,469,528       96      10,187,377
                                      --------------------------------------------------------------------------
    Total............................      136      14,660,078       46       4,992,065      182      19,652,143
----------------------------------------------------------------------------------------------------------------
                                                  Ft. Worth Hub
----------------------------------------------------------------------------------------------------------------
Ft. Worth............................       94       7,432,879       24       1,909,424      118       9,342,303
Houston..............................       61       4,744,124        9         731,223       70       5,475,347
Little Rock..........................       20       1,482,881       17       1,244,128       37       2,727,009
New Orleans..........................       50       4,065,695       14       1,127,289       64       5,192,984
San Antonio..........................       52       3,896,212       10         763,615       62       4,659,827
                                      --------------------------------------------------------------------------
    Total............................      277      21,621,791       74       5,775,679      351      27,397,470
----------------------------------------------------------------------------------------------------------------
                                                 Kansas City Hub
----------------------------------------------------------------------------------------------------------------
Des Moines...........................       20       1,638,428       20       1,631,262       40       3,269,690
Kansas City..........................       54       4,853,142       20       1,757,253       74       6,610,395
Oklahoma City........................       38       3,043,259       16       1,292,764       54       4,336,023

[[Page 12013]]

 
Omaha................................       20       1,814,715       14       1,229,339       34       3,044,054
St. Louis............................       45       4,665,792       14       1,466,969       59       6,132,761
                                      --------------------------------------------------------------------------
    Total............................      177      16,015,336       84       7,377,587      261      23,392,923
----------------------------------------------------------------------------------------------------------------
                                                   Denver Hub
----------------------------------------------------------------------------------------------------------------
Denver...............................       76       7,176,367       31       2,474,938      107       9,651,305
----------------------------------------------------------------------------------------------------------------
                                                San Francisco Hub
----------------------------------------------------------------------------------------------------------------
San Francisco........................      148      17,605,317       10       1,124,640      158      18,729,957
Honolulu.............................       20       3,733,128        5         933,282       25       4,666,410
Phoenix..............................       56       4,678,191        9         780,333       65       5,458,524
Sacramento...........................       49       5,819,931        9       1,082,051       58       6,901,982
                                      --------------------------------------------------------------------------
    Total............................      273      31,836,567       33       3,920,306      306      35,756,873
----------------------------------------------------------------------------------------------------------------
                                                 Los Angeles Hub
----------------------------------------------------------------------------------------------------------------
Los Angeles..........................      235      26,686,926        5         567,747      240      27,254,673
----------------------------------------------------------------------------------------------------------------
                                                   Seattle Hub
----------------------------------------------------------------------------------------------------------------
Seattle..............................       75       8,227,226       13       1,398,338       88       9,625,564
Anchorage............................       20       3,733,128        5         933,282       25       4,666,410
Portland.............................       55       5,279,867       18       1,681,124       73       6,960,991
                                      --------------------------------------------------------------------------
    Total............................      150      17,240,221       36       4,012,744      186      21,252,965
                                      --------------------------------------------------------------------------
        National Total...............    3,617     376,692,499      696      66,475,148    4,313     443,167,647
----------------------------------------------------------------------------------------------------------------

    B. Type of Award. Capital Advance and Project Rental Assistance 
Contract Funds for new Section 202 applications.
    C. Type of Assistance Instrument. The Agreement Letter stipulates 
the terms and conditions for the Section 202 fund reservation award as 
well as the submission requirements following the fund reservation 
award. The duration of the fund reservation award for the capital 
advance is 18 months from the date of issuance of the fund reservation.
    D. Anticipated Start and Completion Date. Immediately upon your 
acceptance of the Agreement Letter, you are expected to begin work 
toward the submission of a Firm Commitment Application, which is the 
next application submission stage. You are required to submit a Firm 
Commitment Application to the local HUD office within 180 days from the 
date of the Agreement Letter. Initial closing of the capital advance 
and start of construction of the project are expected to be 
accomplished within the duration of the fund reservation award period 
as indicated in the above paragraph regarding the Type of Assistance 
Instrument. Final closing of this capital advance is expected to occur 
no later than six months after completion of project construction.

III. Eligibility Information

    A. Eligible Applicants. Private nonprofit organizations and 
nonprofit consumer cooperatives who meet the threshold requirements 
contained in the General Section and Section III.C.2. of this NOFA are 
the only eligible applicants under this Section 202 program. Neither a 
public body nor an instrumentality of a public body is eligible to 
participate in the program.
    Applicant eligibility for purposes of applying for a Section 202 
fund reservation under this NOFA has not changed; i.e., all Section 202 
Sponsors and Co-Sponsors must be private nonprofit organizations and 
nonprofit consumer cooperatives. However, the Owner corporation, when 
later formed by the Sponsor, may be (1) a single-purpose private 
nonprofit organization that has tax-exempt status under Section 
501(c)(3) or Section 501(c)(4) of the Internal Revenue Code of 1986, 
(2) nonprofit consumer cooperative, or (3) for purposes of developing a 
mixed-finance project pursuant to the statutory provision under Title 
VIII of the American Homeownership and Economic Opportunity Act of 
2000, a for-profit limited partnership with a private nonprofit 
organization as the sole general partner.
    See Section III.C.3.b. regarding limits on the total number of 
units and projects for which you may apply for funding.
    B. Cost Sharing or Matching. No cost sharing or match is required; 
however, you are required to make a commitment to cover the estimated 
start-up expenses, the minimum capital investment of one-half of one 
percent of the HUD-approved capital advance, not to exceed $10,000 or 
for a national Sponsor not to exceed $25,000, and any funds required in 
excess of the capital advance, including the estimated cost of any 
amenities or features (and operating costs related thereto) which are 
not covered by the capital advance. You make such a commitment by 
signing the Form HUD-92042, Sponsor's Resolution for Commitment to 
Project in Exhibit 8(g) of the application found in Section IV.B.
    C. Other. 1. Eligible Activities. Section 202 capital advance funds 
must be used to finance the development of housing through new 
construction, rehabilitation, or acquisition with or without 
rehabilitation. Capital advance funds may also be used in combination

[[Page 12014]]

with other non-Section 202 funding sources leveraged by a for-profit 
limited partnership (of which a single-purpose private nonprofit 
organization is the sole general partner) to develop a mixed-finance 
project, including a mixed-finance project for additional units for the 
elderly over and above the Section 202 units. The development of a 
mixed-use project in which the Section 202 units are mortgaged 
separately from the other uses of the structure is not considered a 
mixed-finance project. Project rental assistance funds are provided to 
cover the difference between the HUD-approved operating costs and the 
amount the residents pay (each resident pays 30 percent of adjusted 
income) as well as to provide supportive services to frail elderly 
residents.


    Note: For purposes of approving Section 202 capital advances, 
HUD will consider proposals involving mixed-financing for additional 
units over and above the Section 202 units. However, you must obtain 
funds to assist the additional units with other than PRAC funds. HUD 
will not provide PRAC funds for non-Section 202 units.


    A portion of the PRAC funds (not to exceed $15 per unit/per month) 
may be used to cover some of the cost of any supportive services for 
those frail elderly or those elderly determined to be at-risk of being 
institutionalized. The balance of the cost for services must be paid 
for from sources other than the capital advance or PRAC funds. Also, 
the cost of employing a service coordinator for those projects serving 
principally the frail elderly (when at least 25 percent of the 
residents will be frail or determined to be at-risk of being 
institutionalized) is an eligible use of PRAC funds. Section 202 
projects receiving Congregate Housing Services assistance under Section 
802 of the National Affordable Housing Act are not eligible to use 
capital advance or PRAC funds for supportive services or the cost of a 
service coordinator.
    2. Threshold Requirements for Funding Consideration. In addition to 
the threshold criteria outlined in the General Section, the following 
threshold requirements must be met:
    a. Non-Responsive Application. Your application will be considered 
non-responsive to the NOFA and will not be accepted for processing if 
you:
    (1) Requested and received approval to submit a paper application 
and you submit less than the required number of paper copies (an 
original and four copies) are required. Refer to the General Section 
for information on application submission and receipt procedures;
    (2) submit paper copies of the application if you have not received 
approval from HUD for a waiver of the electronic submission 
requirements;
    (3) submit a substantially deficient application (i.e., a majority 
of the required exhibits, are not submitted with your application, 
particularly, but not limited to, those exhibits which are not 
curable). HUD reserves the right to determine whether your application 
is substantially deficient for purposes of determining whether the 
application is non-responsive to the NOFA. Refer to Section IV.B., 
Content of Form of Application Submission, for information on the 
required exhibits for submission with your application to ensure that 
your application is complete at time of submission;
    (4) request more units than were allocated in either the 
metropolitan or nonmetropolitan allocation category to the local HUD 
office that will be reviewing your application or 125 units, whichever 
is less (see the allocation chart in Section II.A. above);
    (5) request less than the minimum number of 5 units per site;
    (6) request assistance for an ineligible activity as defined in 
Section IV.E., Funding Restrictions, of this program NOFA; or
    (7) are an ineligible applicant (see Section III.A, Eligible 
Applicants of this program NOFA).
    b. Other Criteria. (1) You, or a co-Sponsor, must have experience 
in providing housing or services to elderly persons.
    (2) You and any co-Sponsor must be eligible private nonprofit 
organizations or nonprofit consumer cooperatives with tax exempt status 
under Internal Revenue Service code.
    (3) Your application must contain acceptable evidence of the 
following:
    (a) Evidence of Site Control. You must provide evidence of site 
control as described in this section and Exhibit 4(d)(i) of Section 
IV.B. of this NOFA).
    (b) Historic Preservation. You are required to send a letter to the 
State/Tribal Historic Preservation Officer (SHPO/THPO) that attempts to 
initiate consultation with their office and requests their review of 
your determinations and findings with respect to the historical 
significance of your proposed project. A sample letter to the SHPO/THPO 
that you may adapt for your use, if you so choose, is available on 
HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. 
You must include a copy of your letter to the SHPO/THPO in your 
application and a statement that you have not received a response 
letter(s) from the SHPO/THPO or a copy of the response letter(s) 
received from the SHPO/THPO.
    (c) Contamination. HUD must determine if a proposed site contains 
contamination and, if so, HUD must be satisfied that it is eliminated 
to the extent necessary to meet non site-specific federal, state or 
local health standards. You must assist HUD by doing the following:
    (i) Phase I Environmental Site Assessment (ESA). You must undertake 
and submit a Phase I ESA, prepared in accordance with the ASTM 
Standards E 1527-05, as amended, completed or updated no earlier than 
six months prior to the application deadline date. The Phase I ESA must 
be completed and submitted with the application. Therefore, it is 
important that you start the Phase I ESA process as soon after 
publication of the SuperNOFA as possible. To help you choose an 
environmentally safe site, HUD invites you to review the documents 
``Choosing an Environmentally Safe Site'' and ``Supplemental Guidance, 
Environmental Information'', which are available on the HUD Web site at 
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    (ii) Phase II ESA. If the Phase I ESA indicates the possible 
presence of contamination and/or hazards, you must decide whether to 
continue with this site or choose another site. Should you choose 
another site, the same Phase I ESA process identified above must be 
followed for the new site. However, if you choose to continue with the 
original site on which the Phase I ESA indicated contamination or 
hazards, you must undertake a detailed Phase II ESA by an appropriate 
professional. In order for your application to be considered for review 
under this FY2006 funding competition, the Phase II must be received by 
the local HUD office on or before July 3, 2006.
    (iii) Clean-up--If the Phase II ESA reveals site contamination, the 
extent of the contamination and a plan for clean-up of the site must be 
submitted to the local HUD office. The plan for clean-up must include a 
contract for remediation of the problem(s) and an approval letter from 
the applicable federal, state, and/or local agency with jurisdiction 
over the site. In order for your application to be considered for 
review under this FY2006 funding competition, this information must be 
received by the local HUD office on or before July 3, 2006. If the 
above information is not received by the local HUD office by that date, 
the application will be rejected.


    Note: Clean-up could be an expensive undertaking. You must pay 
for the cost of any

[[Page 12015]]

clean-up and/or remediation. If the application is approved, clean-
up must be completed prior to initial closing. Completion of clean-
up means that hud must be satisfied that the contamination has been 
eliminated to the extent necessary to meet non site-specific 
federal, state or local health standards, with no active or passive 
remediation still taking place, no capping over of any 
contamination, and no monitoring wells. However, it is acceptable if 
contamination remains solely in groundwater that is at least 25 feet 
below the surface.

    (d) Asbestos. Asbestos is a hazardous substance commonly used in 
building products until the late 1970s. Therefore, you must submit one 
of the following with your application:
    (i) If there are no pre-1978 structures on the site or if there are 
pre-1978 structures, that most recently consisted of solely four or 
fewer units of single-family housing including appurtenant structures 
thereto, a statement to this effect, or
    (ii) If there are pre-1978 structures on the site, other than for a 
site that most recently consisted of solely four or fewer units of 
single-family housing including appurtenant structures thereto, a 
comprehensive building asbestos survey that is based on a thorough 
inspection to identify the location and condition of asbestos 
throughout any structures. In those cases where suspect asbestos is 
found, it would either be assumed to be asbestos or would require 
confirmatory testing. If the asbestos survey indicates the presence of 
asbestos or the presence of asbestos is assumed, and if the application 
is approved, HUD will condition the approval on an appropriate mix of 
asbestos abatement and an asbestos Operations and Maintenance Plan.
    (4) There must be a market need for the number of units proposed in 
the area of the project location.
    (5) You are required to include a Supportive Services Plan that 
describes the supportive services proposed to be provided to the 
anticipated occupants, including a description of the public or private 
funds that are expected to fund the proposed services and the manner in 
which the services will be provided to the proposed residents (see 
Exhibit 5 in Section IV.B. of this NOFA). You must not require 
residents to accept any supportive services as a condition of occupancy 
or admission.
    (6) Delinquent Federal Debt. Refer to the General Section for 
information regarding delinquent federal debt.
    3. Program Requirements. By signing Form HUD-92015-CA, Supportive 
Housing for the Elderly Section 202, Application for Capital Advance 
Summary Information, you are certifying that you will comply with all 
program requirements listed in the General Section as well as the 
following requirements:
    a. Statutory and Regulatory Requirements. In addition to the 
statutory, regulatory, threshold and public policy requirements listed 
in the General Section, you must comply with all statutory and 
regulatory requirements listed in Sections I and III of this NOFA.
    b. Application/Project Size Limits.
    (1) Application Limits Applicable to Sponsors or Co-Sponsors. A 
Sponsor or Co-sponsor may not apply for more than 200 units of housing 
for the elderly in a single Hub or more than 10 percent of the total 
units allocated to all HUD offices. Affiliated entities (organizations 
that are branches or offshoots of a parent organization) that submit 
separate applications are considered a single entity for the purpose of 
this limit.
    (2) Maximum Project Size. No single application may propose the 
development of a project for more than the number of units allocated to 
a local HUD office (in either the metropolitan or nonmetropolitan 
allocation category, depending on the location of your proposed 
project) or 125 units, whichever is less. For example, the local HUD 
office, which has jurisdiction over the area of your proposed project, 
was allocated 80 units (metropolitan) and 20 units (nonmetropolitan) 
for a total of 100 units. You cannot apply for more than 80 units if 
your proposed project is in a metropolitan area and no more than 20 
units if the project is in a nonmetropolitan area.
    (3) Minimum Project Size. The minimum number of units that can be 
applied for in one application is five units. If the proposed project 
will be a scattered-site development, the five-unit minimum requirement 
will apply to each site.
    c. Minimum Capital Investment. If selected, you must provide a 
minimum capital investment of one-half of one percent of the HUD-
approved capital advance amount, not to exceed $10,000 in accordance 
with 24 CFR 891.145, with the following exception. If you, as Sponsor 
or Co-Sponsor, have one or more Section 202 or one or more Section 811 
project(s) under reservation, construction, or management in two or 
more different HUD geographical regions (Hubs), the minimum capital 
investment shall be one half of one percent of the HUD-approved capital 
advance amount, not to exceed $25,000.
    d. Accessibility. Your project must meet accessibility requirements 
published at 24 CFR 891.120, 24 CFR 891.210, and Section 504 of the 
Rehabilitation Act of 1973 and its implementing regulations at 24 CFR 
Part 8, and, if new construction, the design and construction 
requirements of the Fair Housing Act and HUD's implementing regulations 
at 24 CFR part 100. In addition, 24 CFR 8.4(b)(5) prohibits the 
selection of a site or location which has the purpose or effect of 
excluding persons with disabilities from the federally assisted program 
or activity. Refer to Section V.A. below and the General Section for 
information regarding the policy priority of encouraging accessible 
design.
    e. Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. You are not subject to the requirements of 24 CFR 
parts 84 and 85 as outlined in the General Section, except that the 
disposition of real property may be subject to 24 CFR part 84. However, 
you are still subject to the core values and ethical standards as they 
relate to the conflict of interest provisions in 24 CFR 891.130. To 
ensure compliance with the program's conflict of interest provisions, 
you are required to sign a Conflict of Interest Resolution and include 
it in your Section 202 application. Further, if awarded a Section 202 
fund reservation, the officers, directors, board members, trustees, 
stockholders and authorized agents of the Section 202 Sponsor and Owner 
entities will be required to submit to HUD individual certifications 
regarding compliance with HUD's conflict of interest requirements.
    f. National Environmental Policy Act. You must comply with the 
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and 
applicable related environmental authorities at 24 CFR 50.4, HUD's 
programmatic implementing regulations at 24 CFR part 50 and 24 CFR 
891.155(b), especially, but not limited to, the provision of 
information to HUD at 24 CFR 50.31(b) and you must comply with any 
environmental ``conditions and safeguards'' at 24 CFR 50.3(c).
    Under 24 CFR Part 50, HUD has the responsibility for conducting the 
environmental reviews. HUD cannot approve any site unless it first 
completes the environmental review. In rare cases where HUD is not able 
to complete the environmental review, it is due to a complex 
environmental issue that could not be resolved during the time period 
allocated for application processing. Thus, HUD requires you to attempt 
to obtain comments from the State/Tribal Historic Preservation Officer 
(see Exhibit 4(d)(ix) of Section IV.B. below) to help HUD complete the 
environmental review on time. It is also why HUD may contact you for

[[Page 12016]]

additional environmental information. So that you can review the type 
of information that HUD needs for its preparation of the environmental 
review as well as the type of information requests that HUD may make to 
you, you are invited to go to the following Web site to view the HUD 
form 4128, including the Sample Field Notes Checklist, which HUD uses 
to record the environmental review: www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/environment/compliance/forms/4128.pdf.
    g. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects. Refer to the 
General Section.
    h. Fair Housing Requirements. Refer to the General Section for 
information regarding fair housing requirements.
    i. Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). You 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) and its implementing regulations at 24 
CFR part 135. You must ensure that training, employment and other 
economic opportunities shall, to the greatest extent feasible, be 
directed toward low and very low-income persons, particularly those who 
are recipients of government assistance for housing and to business 
concerns which provide economic opportunities to low and very low-
income persons. To comply with Section 3 requirements you are hereby 
certifying that you will strongly encourage your general contractor and 
subcontractors to participate in local apprenticeship programs or 
training programs registered or certified by the Department of Labor's 
Office of Apprenticeship, Training, Employer and Labor Services or 
recognized State Apprenticeship Agency. Although not a NOFA 
requirement, you are encouraged to submit with your application a 
description on how you plan to incorporate the Section 3 requirements 
into your proposed project with goals for expanding training and 
employment opportunities for low and very low-income (Section 3) 
residents as well as business concerns. You will receive up to two (2) 
points if you provide a description of your plans for doing so under 
Exhibit 3(k) of this program NOFA.
    j. Design and Cost Standards. You must comply with HUD's Section 
202 design and cost standards (24 CFR 891.120 and 891.210), the Uniform 
Federal Accessibility Standards (24 CFR 40.7), Section 504 of the 
Rehabilitation Act of 1973 and HUD's implementing regulations at 24 CFR 
part 8, and for covered multifamily dwellings designed and constructed 
for first occupancy after March 13, 1991, the design and construction 
requirements of the Fair Housing Act and HUD's implementing regulations 
at 24 CFR part 100, and, where applicable, the Americans with 
Disabilities Act of 1990.
    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 not only to promote energy 
efficiency of the affordable housing stock, but also to help protect 
the environment.
    k. Formation of Owner Corporation. You must form an Owner entity 
(in accordance with 24 CFR 891.205) after issuance of the capital 
advance fund reservation and must cause the Owner entity to file a 
request for determination of eligibility and a request for capital 
advance, and must provide sufficient resources to the Owner entity to 
ensure the development and long-term operation of the project, 
including capitalizing the Owner entity at firm commitment processing 
in an amount sufficient to meet its obligations in connection with the 
project over and above the capital advance amount.
    l. Davis-Bacon. You must comply with the Davis-Bacon requirements 
(12 U.S.C. 1701q(j)(5)) and the Contract Work Hours and Safety 
Standards Act in accordance with 24 CFR 891.155(d).
    4. Energy Efficiency. Although it is not a requirement, you are 
encouraged to promote energy efficiency in design and operation of your 
proposed project and your application will receive one (1) point if you 
describe your plans for doing so in the proposed project. You are urged 
especially to purchase and use Energy Star-labeled products. For 
further information about Energy Star, see http://www.energystar.gov or 
call 1-888-STAR-YES (1-888-782-7937) or for the hearing-impaired, 1-
888-588-9920 TTY.

IV. Application and Submission Information

    Applicants are required to submit an electronic application unless 
they receive a waiver of the requirement. See the General Section for 
information on electronic application submission, procedures for 
requesting a waiver, and timely submission and receipt requirements.
    A. Address to Request Application Package. All information required 
to complete and return a valid application is included in the General 
Section and this NOFA, including other related documents. Applicants 
may download the application and instructions from the Grants.gov Web 
site at http://www.Grants.gov./Apply. If you have difficulty accessing 
the information you may call the Grants.gov Support Desk toll free 800-
518-GRANTS or e-mail your questions to Grants.gov">Support@Grants.gov. See the 
General Section for information regarding the registration process or 
ask for registration information from the Grants.gov Support Desk. 
Copies of the General Section, this program section, and the required 
forms are available and may be downloaded from the Grants.gov Web site 
at www.Grants.gov.
    You may request general information, copies of the General Section 
and NOFA (including related documents ), from the NOFA Information 
Center (800-HUD-8929 or 800-HUD-2209 (TTY)) Monday through Friday, 
except on federal holidays. When requesting information, please refer 
to the name of the program you are interested in.
    B. Content and Form of Application Submission. The exhibits to be 
included in your application are contained in the body of this NOFA. 
Before preparing your application, you should carefully review the 
requirements of the regulations (24 CFR part 891) and general program 
instructions in Handbook 4571.3 REV-1, Section 202 Capital Advance 
Program for Housing the Elderly. Note: Section 1001 of Title 18 of the 
United States Code (Criminal Code and Criminal Procedure, 72 Stat. 967) 
applies to all information supplied in the application submission. (18 
U.S.C. 1001, among other things, provides that whoever knowingly and 
willfully makes or uses a document or writing containing any false, 
fictitious, fraudulent statement or entry, in any matter within the 
jurisdiction of any department or agency of the United States, shall be 
fined not more than $10,000 or imprisoned for not more than five years, 
or both.)
    The Application for a Section 202 Capital Advance consists of four 
parts with a total of eight Exhibits. Included with the eight Exhibits 
are prescribed forms, certifications and resolutions. The components of 
the Application are:

Part 1--Application Form for Section 202 Supportive Housing--Capital 
Advance (Exhibit 1)

[[Page 12017]]

Part 2--Your Ability to Develop and Operate the Proposed Project 
(Exhibits 2 and 3)
Part 3--The Need for Supportive Housing for the Target Population in 
the Area to be Served, Site Control and Suitability of Site, Adequacy 
of the Provision of Supportive Services and of the Proposed Project 
(Exhibits 4 and 5)
Part 4--General Application Requirements, Certifications and 
Resolutions (Exhibits 6 through 8).

    The following additional information, which may assist you in 
preparing your application, is available on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

Listing of Local HUD Offices
Letter Requesting SHPO/THPO Review
Choosing an Environmentally Safe Site
Supplemental to Choosing an Environmentally Safe Site

    Your application must include all of the information, materials, 
forms, and exhibits listed below (unless you were selected for a 
Section 202 fund reservation within the last three funding cycles). If 
you qualify for this exception, you are not required to submit the 
information described in Exhibits 2(a), (b), and (c), which are the 
articles of incorporation, (or other organizational documents), by-
laws, and the IRS tax exemption, respectively. If there has been a 
change in any of these documents since your previous HUD approval, you 
must submit the updated information in your application. The local HUD 
office will verify your previous HUD approval by checking the project 
number and approval status with the appropriate local HUD office based 
on the information submitted.
    In addition to this relief of paperwork burden in preparing 
applications, you will be able to use information and exhibits 
previously prepared for prior applications under Section 202, Section 
811, or other funding programs. Examples of exhibits that may be 
readily adapted or amended to decrease the burden of application 
preparation include, among others, those on previous participation in 
the Section 202 or Section 811 programs, your experience in the 
provision of housing and services, supportive services plans, community 
ties, and experience serving minorities.
    For programmatic information, you MUST contact the appropriate 
local HUD office about the submission of applications within the 
jurisdiction of that Office. A listing of the local HUD offices is 
available on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    Please submit your application using the following format provided 
in this NOFA. For applications to be submitted electronically, in which 
you have created files to be attached to the electronic application, 
you should number the pages of the attached file and include a header 
that identifies the exhibit that it relates to.
    For applicants that have received a waiver of the electronic 
application submission, you must number the pages of each file, 
narratives and other attached files. Include the name of your 
organization, your DUNS number, and the exhibit number that you are 
responding to on the header of each document.
    1. Table of Contents (This is also to be used as a checklist to 
assist you in submitting a complete application. For applicants who 
received a waiver of the electronic application submission, after your 
application is complete, you must insert the page number after each 
Exhibit or portion of the Exhibit item listed below.)
a. Part I--Application Form for Section 202 Supportive Housing--Capital 
Advance
    (1) Exhibit 1: Form HUD-92015-CA, Supportive Housing for the 
Elderly:

    Section 202, Application for Capital Advance Summary Information
b. Part II--Your Ability To Develop and Operate the Proposed Project
    (1) Exhibit 2: Your Legal Status
    (a) Articles of Incorporation (or other organizational documents);
    (b) By-laws;
    (c) IRS Tax Exemption Ruling.

[Exception: See exhibit to determine if you may be exempt from 
submitting these documents.]

    (2) Exhibit 3: Your purpose, community ties and experience:
    (a) Purpose(s), current activities, how long you have been in 
existence;
    (b) Ties to the community at large, to the target population, and 
description of geographic areas served;
    (c) Local government support for project;
    (d) Letters of support for your organization and for the proposed 
project;
    (e) Housing and/or supportive services experience;
    (f) Efforts to involve target population;
    (g) Description of practical solutions to be implemented;
    (h) Project Development Timeline;
    (i) Description of how project will remain viable, including:
    (i) If service funds are depleted;
    (ii) For State-funded services, if State changes policy;
    (iii) If the need for project changes;
    (j) Description of efforts to remove barriers to affordable 
housing;
    (k) Description of your plans to incorporate Section 3 
requirements, Economic Opportunities for Low- and Very Low-Income 
Persons, in proposed project (optional, but required to received up to 
2 points).
c. Part III--The Need for Supportive Housing for the Target Population 
in the Area To Be Served, Site Control and Suitability of Site, 
Adequacy of the Provision of Supportive Services and of the Proposed 
Project
    (1) Exhibit 4: Project information including:
    (a) Evidence of need for project;
    (b) How project will benefit target population and community;
    (c) A narrative description of the project, including:
    (i) Building design;
    (ii) Whether and how project will promote energy efficiency;
    (iii) If applicable, description of plans and actions to create a 
mixed-finance project for additional units and the number of additional 
units;
    (d) Evidence of site control and permissive zoning;
    (i) Site control document(s);
    (ii) Evidence site is free of limitations, restrictions, or 
reverters;
    (iii) Evidence of permissive zoning or statement of proposed action 
required to make project permissible;
    (iv) Evidence of compliance with the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970, as amended (URA) 
site notification requirement;
    (v) Narrative topographical/demographic description of site/area 
suitability, how site will promote greater housing opportunities for 
minorities/target population;
    (vi) Racial composition/concentration map of site;
    (vii) Phase I Environmental Site Assessment;
    (viii) Asbestos Statement or Survey;
    (ix) Letter to State/Tribal Historic Preservation Officer (SHPO/
THPO) and a statement that SHPO/THPO failed to respond to you OR a copy 
of the response letter received from SHPO/THPO.
    (2) Exhibit 5: Supportive Services Plan:
    (a) Description of services;
    (b) Public/private funding sources for proposed services;
    (c) Manner in which services will be provided.

[[Page 12018]]

d. Part IV--General Application Requirements, Certifications and 
Resolutions
    (1) Exhibit 6: Other Applications:
    (a) A list of applications, if any, you are submitting to any other 
local HUD Office in response to the FY 2006 Section 202 or Section 811 
NOFA, and required information about each;
    (b) A list of all FY 2005 and prior years Section 202 or Section 
811 projects to which you are a party and the required information 
about each.
    (2) Exhibit 7: A statement that:
    (a) Identifies all persons occupying property on application 
submission date;
    (b) Indicates estimated cost of relocation payments/other services;
    (c) Identifies staff organization that will carry out relocation 
activities;
    (d) Identifies all persons who have moved from site within past 12 
months.
    (3) Exhibit 8: Standard Forms, Certifications and Resolutions:
    (a) Standard Form 424, Application for Federal Assistance with copy 
of the letter you sent to the State Point of Contact, if applicable;
    (b) Standard Form 424 Supplement, Survey on Ensuring Equal 
Opportunity for Applicants;
    (c) Standard Form LLL, Disclosure of Lobbying Activities, if 
applicable;
    (d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report;
    (e) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan;
    (f) Form HUD-92041, Sponsor's Conflict of Interest Resolution;
    (g) Form HUD-92042, Sponsor's Resolution for Commitment to Project;
    (h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC-
II Strategic Plan, if applicable;
    (i) Form HUD-96010, Program Outcome Logic Model;
    (j) Form HUD-27300, Questionnaire for HUD's Initiative on Removal 
of Regulatory Barriers (optional form, but required to receive up to 2 
points);
    (k) Form HUD-96011, Facsimile Transmittal, must be used as the 
cover page to any facsimile submitted using the facsimile solution 
(i.e., for faxing third party letters and other documents for your 
electronic application in accordance with the instructions in the 
General Section;
    (l) Form HUD-2994-A, You Are Our Client/Grant Applicant Survey 
(optional).

2. Programmatic Applications Requirements

a. Part I--Application Form for Section 202 Supportive Housing--Capital 
Advance
    (1) Exhibit 1: Form HUD-92015-CA, Supportive Housing for the 
Elderly Section 202, Application for Capital Advance Summary 
Information. A copy of this form is available at the Grants.gov Web 
site at www.grants.gov.
b. Part II--Your Ability To Develop and Operate the Proposed Project
    (1) Exhibit 2: Evidence of your legal status (Private nonprofit or 
nonprofit consumer cooperative (If another organization(s) is co-
sponsoring the application with you, each co-Sponsor must also submit 
the following):
    (a) Articles of Incorporation, constitution, or other 
organizational documents;
    (b) By-laws;
    (c) IRS tax exemption ruling (this must be submitted by all 
Sponsors, including churches).


    Note: Based on a HUD review of your articles of incorporation, 
constitution, or other organizational documents, HUD must determine, 
among other things, that (1) you are an eligible private nonprofit 
entity and are not a public body or an instrumentality of a public 
body, (2) your corporate purposes are sufficiently broad to provide 
you the legal authority to sponsor the proposed project for the 
elderly, to assist the Owner, and to apply for a capital advance, 
(3) no part of the Sponsor's net earnings inures to the benefit of 
any private party, and (4) that you are not controlled by or under 
the direction of persons seeking to derive profit or gain therefrom.
    [Exception: If you received a section 202 fund reservation 
within the last three funding cycles, you are not required to submit 
the documents described in (A), (B), and (C) above. Instead, submit 
the project number of the latest application and the local HUD 
office to which it was submitted. If there have been any 
modifications or additions to the subject documents, indicate such, 
and submit the new material.]


    (2) Exhibit 3: Your purpose, community ties and experience:
    (a) A description of your purpose(s), current activities, including 
your ability to enlist volunteers and raise private local funds, and 
how long you have been in existence.
    (b) A description of your ties to the community in which your 
project will be located and to the minority and elderly communities in 
particular, including a description of the specific geographic area(s) 
in which you have served.
    (c) A description of local government support for the project 
(including financial assistance, donation of land, provision of 
services, etc.).
    (d) Letters of support for your organization and for the proposed 
project from organizations familiar with the housing and supportive 
services needs of the target population that you expect to serve in the 
proposed project.
    (e) A description of your housing and/or supportive services 
experience. The description should include any rental housing projects 
and/or supportive services facilities that you sponsored, own and/or 
operate, your past or current involvement in any programs other than 
housing that demonstrates your management capabilities (including 
financial management) and experience, your experience in serving the 
target population (the elderly and/or families and minorities); and the 
reasons for receiving any increases in fund reservations for developing 
and/or operating previously funded Section 202 or Section 811 projects. 
The description should include data on the facilities and services 
provided, the racial/ethnic composition of the populations served, if 
available, and information and testimonials from residents or community 
leaders on the quality of the activities. Examples of activities that 
could be described include housing counseling, nutrition and food 
services, special housing referral, screening and information projects.
    (f) A description of your efforts to involve members of the target 
population (elderly persons, including minority elderly persons) in the 
development of the application as well as your intent to involve the 
target population in the development and operation of the project.
    (g) A description of the practical solutions you will implement 
which will enable residents of your project to achieve independent 
living. In addition, describe the educational opportunities you will 
provide for the residents and how you will provide them. This 
description should include any activities that will enhance the quality 
of life for the residents. And, finally, describe how your proposed 
project will be an improved living environment for the residents when 
compared to their previous place of residence.
    (h) Describe your plan for completing the proposed project. Include 
a project development timeline which lists the major development stages 
for the project with associated dates that must be met in order to get 
the project to initial closing and start of construction within the 18-
month fund reservation period as well as the full completion of the 
project, including final closing.

[[Page 12019]]

Completion of Exhibit 8(i), Program Outcome Logic Model, will assist 
you in completing your response to this Exhibit.
    (i) Describe how you will ensure that your proposed project will 
remain viable as housing with the availability of supportive services 
for the target population for the 40-year capital advance period. This 
description should address the measures you would take should any of 
the following occur:
    (i) Funding for any of the needed supportive services becomes 
depleted;
    (ii) If, for any state-funded services for your project, the state 
changes its policy regarding the provision of supportive services to 
projects such as the one you propose; or
    (iii) If the need for housing for the population you will be 
serving wanes over time, causing vacancies in your project.
    (j) A description of the successful efforts the jurisdiction in 
which your project will be located has taken in removing regulatory 
barriers to affordable housing. To obtain up to 2 points for this 
policy priority, you must complete the optional Form HUD-27300, 
``Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers'' in Exhibit 8(j) of the application AND provide the necessary 
URL references or submit the documentary evidence.
    (k) A description on how you plan to incorporate the Section 3 
requirements into your proposed project with goals for expanding 
training and employment opportunities for low- and very low-income 
(Section 3) persons as well as business concerns. This exhibit is 
optional, but to obtain up to 2 points for this policy priority, you 
must submit this exhibit and adequately address your plans to provide 
opportunities to train and employ low- and very low-income residents of 
the project area and award substantial contracts to persons residing in 
the project area.
c. Part III--The Need for Supportive Housing for the Target Population, 
Site Control and Suitability of Site, Adequacy of the Provision of 
Supportive Services and of the Proposed Project
    (1) Exhibit 4: Need and Project Information
    (a) Evidence of need for supportive housing. Include a description 
of the category or categories of elderly persons the housing is 
intended to serve and evidence demonstrating sustained effective demand 
for supportive housing for that population in the market area to be 
served, taking into consideration the occupancy and vacancy conditions 
in existing federally assisted housing for the elderly (HUD and the 
Rural Housing Service (RHS)) e.g., public housing, state or local data 
on the limitations in activities of daily living among the elderly in 
the area; aging in place in existing assisted rentals; trends in 
demographic changes in elderly population and households; the numbers 
of income eligible elderly households by size, tenure and housing 
condition; the types of supportive services arrangements currently 
available in the area; and the use of such services as evidenced by 
data from local social service agencies or agencies on aging. Also, a 
description of how information in the community's or (where applicable) 
the state's Consolidated Plan, Analysis of Impediments to Fair Housing 
Choice (AI) or other planning document that analyzes fair housing 
issues was used in documenting the need for the project.
    (b) A description of how the proposed project will benefit the 
target population and the community in which it will be located.
    (c) Description of the project.
    (i) Narrative description of the building design including a 
description of the number of units with bedroom distribution, any 
special design features, including any features that incorporate 
visitability standards and universal design, amenities, and/or 
commercial and community spaces, and how this design will facilitate 
the delivery of services in an economical fashion and accommodate the 
changing needs of the residents over the next 10-20 years.


    Note: If the community spaces, amenities, or features do not 
comply with the project design and cost standards of 24 CFR 
891.120(a) and (c), the special standards of 24 CFR 891.210, and the 
limitation on bedroom unit sizes as required by paragraph 1-11.B.4. 
of HUD Handbook 4571.3 REV-1, you must demonstrate your ability and 
willingness to contribute both the incremental development cost and 
continuing operating cost associated with the community spaces, 
amenities, or features;


    (ii) Describe whether and how the project will promote energy 
efficiency (in accordance with the requirements set forth in Section 
III.C.3.j. and III.C.4.of this NOFA), including any plans to 
incorporate energy efficiency features in the operation of the project 
through the use of Energy Star labeled products and appliances and, if 
applicable, innovative construction or rehabilitation methods or 
technologies to be used that will promote efficient construction.
    (iii) If you are proposing to develop a mixed-finance project by 
developing additional units for the elderly (i.e., in addition to the 
202 units), a description of any plans and actions you have taken to 
create such a mixed-finance project with the use of Section 202 capital 
advance funds, in combination with other funding sources. Provide the 
number of non-Section 202 units to be included in the mixed-finance 
project (also provide the number of additional units in the appropriate 
space on Form HUD-92015-CA). Also, provide copies of any letters you 
have sent seeking outside funding for the non-Section 202 units and any 
responses thereto. You also must demonstrate your ability to proceed 
with the development of a Section 202 project that will not involve 
mixed-financing, as proposed in your application, in the event you are 
later unable to obtain the necessary outside funding or HUD disapproves 
your proposal for a mixed-finance project for additional non-Section 
202 units for the elderly.


    Notes:  (1) A proposal to develop a mixed-finance project for 
additional units must occur at the application for fund reservation 
stage. You cannot decide after selection that you want to do a 
mixed-finance project for additional units. (2) Section 202 capital 
advance amendment money will not be approved for projects proposing 
mixed-financing. (3) If approved for a reservation of capital 
advance funds, you will be required to submit with your Firm 
Commitment Application, the additional documents required by HUD for 
mixed-finance proposals. (4) A mixed-finance project does not 
include the development of a mixed-use project in which the Section 
202 units are mortgaged separately from the other uses of the 
structure.


    (d) Evidence of site control and permissive zoning.
    (i) Acceptable evidence of site control is limited to any one of 
the following:
    (A) Deed or long-term leasehold which evidences that you have title 
to or a leasehold interest in the site. If a leasehold, the term of the 
lease must be at least 50 years with renewable provisions for 25 years, 
except for sites on Indian trust land, in which case, the term of the 
lease must be at least 50 years with no requirement for extensions;
    (B) Contract of sale for the site that is free of any limitations 
affecting the ability of the seller to deliver ownership to you after 
you receive and accept a notice of Section 202 capital advance. (The 
only condition for closing on the sale can be your receipt and 
acceptance of the capital advance.) The contract of sale cannot require 
closing earlier than the Section 202 closing;
    (C) Option to purchase or for a long-term leasehold, which must 
remain in effect for six months from the date on

[[Page 12020]]

which the applications are due, must state a firm price binding on the 
seller, and be renewable at the end of the six-month period. The only 
condition on which the option may be terminated is if you are not 
awarded a fund reservation;
    (D) If the site is covered by a mortgage under a HUD program, 
(e.g., a previously funded Section 202 or Section 811 project or an 
FHA-insured mortgage) you must submit evidence of site control as 
described above and evidence that consent to release the site from the 
mortgage has been obtained or has been requested from HUD (all required 
information in order for a decision on the request for a partial 
release of security must have been submitted to the local HUD office) 
and from the mortgagee, if other than HUD. Approval to release the site 
from the mortgage must be done before the local HUD office makes its 
selection recommendations to HUD Headquarters. Refer to Chapter 16 of 
HUD Handbook 4350.1 REV-1, Multifamily Asset Management and Project 
Servicing, for instructions on submitting requests to the local HUD 
office for partial release of security from a mortgage under a HUD 
program; or
    (E) For sites to be acquired from a public body, evidence is needed 
that the public body possesses clear title to the site and has entered 
into a legally binding agreement to lease or convey the site to you 
after you receive and accept a notice of Section 202 capital advance. 
Where HUD determines that time constraints of the funding round will 
not permit you to obtain all of the required official actions (e.g., 
approval of Community Planning Boards) that are necessary to convey 
publicly-owned sites, you may include in your application a letter from 
the mayor or director of the appropriate local agency indicating that 
conveyance or leasing of the site is acceptable without imposition of 
additional covenants or restrictions, and only contingent on the 
necessary approval action. Such a letter of commitment will be 
considered sufficient evidence of site control.
    (ii) Whether you have title to the site, a contract of sale, an 
option to purchase, or are acquiring a site from a public body, you 
must provide evidence (a current title policy or other acceptable 
evidence) that the site is free of any limitations, restrictions, or 
reverters which could adversely affect the use of the site for the 
proposed project for the 40-year capital advance period under HUD's 
regulations and requirements (e.g., reversion to seller if title is 
transferred). If the title evidence contains restrictions or covenants, 
copies of the restrictions or covenants must be submitted with the 
application. If the site is subject to any such limitations, 
restrictions, or reverters, the application will be rejected. Purchase 
money mortgages that will be satisfied from capital advance funds are 
not considered to be limitations or restrictions that would adversely 
affect the use of the site. If the contract of sale or option agreement 
contains provisions that allow a Sponsor not to purchase the property 
for reasons such as environmental problems, failure of the site to pass 
inspection, or the appraisal is less than the purchase price, then such 
provisions are not objectionable and a Sponsor is allowed to terminate 
the contract of sale or the option agreement.


    Note: A proposed project site may not be acquired or optioned 
from a general contractor (or its affiliate) that will construct the 
Section 202 project or from any other development team member.


    (iii) Evidence that the project, as proposed, is permissible under 
applicable zoning ordinances or regulations or a statement of the 
proposed action required to make the proposed project permissible and 
the basis for the belief that the proposed action will be completed 
successfully before the submission of the firm commitment application 
(e.g., a summary of the results of any requests for rezoning and/or the 
procedures for obtaining special or conditional use permits on land in 
similar zoning classifications and the time required for such rezoning, 
or preliminary indications of acceptability from zoning bodies, etc.).
    (iv) Evidence of compliance with the URA requirement that the 
seller has been provided, in writing, with the required information 
regarding a voluntary, arm's length purchase transaction (i.e., (1) 
applicant does not have the power of eminent domain and, therefore, 
will not acquire the property if negotiations fail to result in an 
amicable agreement, and (2) of the estimate of the fair market value of 
the property).


    Note: This information should have been provided before making 
the purchase offer. However, in those cases where there is an 
existing option or contract, the seller must be provided the 
opportunity to withdraw from the agreement or transaction, without 
penalty, after this information is provided.


    (v) Narrative describing topographical and demographic aspects of 
the site, the suitability of the site and area (as well as a 
description of the characteristics of the neighborhood), how use of the 
site will promote greater housing opportunities for minority elderly 
and elderly persons with disabilities, and how use of the site will 
affirmatively further fair housing.


    Note: You can best demonstrate your commitment to affirmatively 
furthering fair housing by describing how your proposed activities 
will assist the jurisdiction in overcoming impediments to fair 
housing choice identified in the applicable jurisdiction's Analysis 
of Impediments (AI) to Fair Housing Choice, which is a component of 
the jurisdiction's Consolidated Plan or any other planning document 
that addresses fair housing issues. The applicable Consolidated Plan 
and AI may be the community's, the county's, or the state's, to 
which input should have been provided by local community 
organizations, agencies in the community and residents of the 
community. Alternatively, a document that addresses fair housing 
issues and remedies to barriers to fair housing in the community 
that was previously prepared by a local planning, or similar 
organization, may be used. Applicable impediments could include the 
need for improved housing quality and services for elderly minority 
families, lack of affirmative marketing and outreach to minority 
elderly persons, and the need for quality eldercare services within 
areas of minority concentration when compared with the type and 
quality of similar services and housing in nonminority areas.


    (vi) A map showing the location of the site, the racial composition 
of the neighborhood, and any areas of racial concentration.


    Note: For this competition, when determining the racial and 
ethnic composition of the neighborhood surrounding the proposed 
site, use data from the 2000 Census of Population. Data from the 
2000 Census may be found at: www.factfinder.census.gov/servlet/BasicFactsServlet.


    (vii) A Phase I Environmental Site Assessment (ESA), in accordance 
with the ASTM Standards E 1527-05, as amended, must be undertaken and 
completed by you and submitted with the application. In order for the 
Phase I ESA to be acceptable, it must have been completed or updated no 
earlier than six months prior to the application deadline date. 
Therefore, it is important to start the site assessment process as soon 
after the publication of the NOFA as possible.
    If the Phase I ESA indicates possible presence of contamination 
and/or hazards, you must decide whether to continue with this site or 
choose another site. Should you choose another site, the same Phase I 
ESA process identified above must be followed for the new site. If the 
property is to be acquired from the FDIC/RTC, include a copy of the 
FDIC/RTC prepared

[[Page 12021]]

Transaction Screen Checklist or Phase I ESA and applicable 
documentation, per the FDIC/RTC Environmental Guidelines. If you choose 
to continue with the original site on which the Phase I ESA indicated 
contamination or hazards, you must undertake a detailed Phase II ESA by 
an appropriate professional. If the Phase II Assessment reveals site 
contamination, you must submit the extent of the contamination and a 
plan for clean-up of the site including a contract for remediation of 
the problem(s) and an approval letter from the applicable federal, 
state, and/or local agency with jurisdiction over the site to the local 
HUD office. The Phase II ESA and any necessary plans for clean-up do 
not have to be submitted with the application but must be received by 
the local HUD office by July 3, 2006. If it is not received by that 
date, the application will be rejected.


    Note: You must pay for the cost of any clean-up or remediation, 
which can be very expensive. See NOTE at Section 
III.C.2.b.(3)(c)(iii).


    (viii) You must submit one of the following:
    (A) If there is no pre-1978 structures on the site or if there are 
pre-1978 structures, that most recently consisted of solely four or 
fewer units of single-family housing including appurtenant structures 
thereto, a statement to this effect, or
    (B) If there are pre-1978 structures on the site, other than for a 
site that most recently consisted of solely four or fewer units of 
single-family housing including appurtenant structures thereto, a 
comprehensive building asbestos survey that is based on a thorough 
inspection to identify the location and condition of asbestos 
throughout any structures.


    Note: In those cases where suspect asbestos is found, it would 
either be assumed to be asbestos or would require confirmatory 
testing. If the asbestos survey indicates the presence of asbestos, 
or the presence of asbestos is assumed, and if the application is 
approved, HUD will condition the approval on an appropriate mix of 
asbestos abatement and an asbestos Operations and Maintenance Plan.


    (ix) The letter you sent to the State/Tribal Historic Preservation 
Officer (SHPO/THPO) initiating consultation with their office and 
requesting their review of your determinations and findings with 
respect to the historical significance of your proposed project, along 
with a statement that the SHPO/THPO failed to respond to your letter, 
OR the SHPO/THPO response to your letter. A sample letter that you may 
adapt and send to the SHPO/THPO is available on the Grants.gov Web site 
at www.grants.gov.
    (2) Exhibit 5: Supportive Services Plan
    (a) A detailed description of the supportive services proposed to 
be provided to the anticipated occupancy.
    (b) A description of public or private sources of assistance that 
reasonably could be expected to fund the proposed services.
    (c) The manner in which such services will be provided to such 
persons (i.e., on or off-site), including whether a service coordinator 
will facilitate the adequate provision of such services, and how the 
services will meet the identified needs of the residents.


    Note: You may not require residents, as a condition of admission 
or occupancy, to accept any supportive services.


d. Part IV--General Application Requirements, Certifications and 
Resolutions
    (1) Exhibit 6: Other Applications
    (a) A list of the applications, if any, you are submitting to any 
other local HUD office in response to the FY2006 Section 202 or Section 
811 NOFA. Indicate by local HUD office, the proposed location by city 
and state and the number of units requested for each application.
    (b) Include a list of all FY2005 and prior years Section 202 and 
Section 811 capital advance projects to which you are a party. Identify 
each by project number and local HUD office and include the following 
information:
    (1) Whether the project has initially closed and, if so, when;
    (2) If the project was older than 24 months when it initially 
closed (specify how old) or if older than 24 months now (specify how 
old) and has not initially closed, provide the reasons for the delay in 
closing;
    (3) Whether amendment money was or will be needed for any project 
in (2) above; and, (4) Those projects that have not been finally 
closed.
    (2) Exhibit 7: A statement that:
    (a) Identifies all persons (families, individuals, businesses and 
nonprofit organizations) by race/minority group, and status as owners 
or tenants occupying the property on the date of submission of the 
application for a capital advance.
    (b) Indicates the estimated cost of relocation payments and other 
services.
    (c) Identifies the staff organization that will carry out the 
relocation activities.
    (d) Identifies all persons that have moved from the site within the 
past 12 months.


    Note: If any of the relocation costs will be funded from sources 
other than the Section 202 capital advance, you must provide 
evidence of a firm commitment of these funds. When evaluating 
applications, HUD will consider the total cost of proposals (i.e., 
cost of site acquisition, relocation, construction and other project 
costs).

    (3) Exhibit 8: Standard Forms, Certifications and Resolutions. You 
are required to submit completed copies of the following forms which 
are available on the Grants.gov Web site at http://www.grants.gov.
    (a) Standard Form 424--Application for Federal Assistance, 
including a DUNS number, an indication of whether you are delinquent on 
any federal debt, and compliance with Executive Order 12372 (a 
certification that you have submitted a copy of your application, if 
required, to the State agency (Single Point of Contact/(SPOC)) for 
state review in accordance with Executive Order 12372). If the SPOC 
requires a review of your application, you must include in your Section 
202 application, a copy of the cover letter sent to the SPOC. Refer to 
Section IV.D. of this NOFA for additional information on compliance 
with Executive Order 12372. Note: For Section 202 program purposes, in 
Item 12, Areas Affected by Project, of SF-424, provide the names of the 
City, County and State where the project will be located (not the 
largest political entities as indicated on the instructions page of SF-
424).
    (b) Standard Form 424 Supplement, Survey on Ensuring Equal 
Opportunity for Applicants. Although the information on this form will 
not be considered in making funding decisions, it will assist the 
federal government in ensuring that all qualified applicants have an 
equal opportunity to compete for federal funding.
    (c) Standard Form LLL--Disclosure of Lobbying Activities (if 
applicable). A disclosure of activities conducted to influence any 
federal transactions.
    (d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report, 
including Social Security and Employee Identification Numbers. A 
disclosure of assistance from other government sources received in 
connection with the project.
    (e) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan (Plan) for the jurisdiction in which the proposed 
project will be located. The certification must be made by the unit of 
general local government if it is required to have, or has, a complete 
Plan. Otherwise, the certification may be made by the state or by the 
unit of general local government if the project

[[Page 12022]]

will be located within the jurisdiction of the unit of general local 
government authorized to use an abbreviated strategy, and if it is 
willing to prepare such a Plan. All certifications must be made by a 
public official responsible for submitting the Plan to HUD. The 
certifications must be submitted as part of the application by the 
application submission deadline date set forth in the NOFA. The Plan 
regulations are published in 24 CFR part 91.
    (f) Form HUD-92041, Sponsor's Conflict of Interest Resolution. A 
certified Board Resolution that no officer or director of the Sponsor 
or Owner has or will have any financial interest in any contract with 
the Owner or in any firm or corporation that has or will have a 
contract with the Owner, including a current listing of all duly 
qualified and sitting officers and directors by title and the beginning 
and ending dates of each person's term.
    (g) Form HUD-92042, Sponsor's Resolution for Commitment to Project. 
A certified Board Resolution acknowledging responsibilities of 
sponsorship, long-term support of the project(s), your willingness to 
assist the Owner to develop, own, manage and provide appropriate 
services in connection with the proposed project, and that it reflects 
the will of your membership. Also, it shall indicate your willingness 
to fund the estimated start-up expenses, the Minimum Capital Investment 
(one-half of one-percent of the HUD-approved capital advance, not to 
exceed $10,000 or for national Sponsors, not to exceed $25,000), and 
the estimated cost of any amenities or features (and operating costs 
related thereto) that would not be covered by the approved capital 
advance.
    (h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC-
II Strategic Plan. A certification that the project is consistent with 
the RC/EZ/EC-IIs strategic plan, is located within the RC/EZ/EC-II, and 
serves RC/EZ/EC-II residents. (This certification is not required if 
the project site(s) will not be located in a RC/EZ/EC-II.)
    (i) Form HUD-96010, Program Outcome Logic Model. In addition to the 
Project Development Timeline to be submitted in Exhibit 3(h) above, the 
information provided in the Logic Model will be used in rating your 
application for Rating Factor 5, Achieving Results and Program 
Evaluation.
    (j) Form HUD-27300, Questionnaire for HUD's Initiative on Removal 
of Regulatory Barriers (optional form). To receive up to 2 points, you 
must submit this form and provide a reference, URL or brief statement 
documenting the successful efforts in removing barriers to affordable 
housing by the jurisdiction in which your project will be located. This 
Questionnaire will be considered in the rating of your application for 
Rating Factor 3.j.
    (k) Form HUD-96011, Facsimile Transmittal, is only required if you 
are using the facsimile method to fax third party letters and other 
documents for your electronic application in accordance with the 
instructions in the General Section.


    Note: HUD will not accept entire applications by fax. If you 
submit the application entirely by fax, it will be disqualified.


    (l) Form HUD-2994-A, You Are Our Client Grant Applicant Survey. 
This is an optional form, which may be used to provide suggestions and 
comments to the Department regarding your application submission 
experience.
    C. Submission Dates and Time. Your application must be received and 
validated electronically by Grants.gov no later than 11:59:59 p.m. 
Eastern time on the application deadline date of June 2, 2006, unless a 
waiver of the electronic delivery process has been approved by HUD. 
Please refer to the General Section for instructions on applying for a 
waiver. HUD strongly recommends that applicants that are unable to 
submit its application electronically and must seek a waiver of the 
electronic grant submission requirement, submit its waiver request to 
the Assistant Secretary for Housing at the following address no later 
than 15 days before the application deadline date. Brian D. Montgomery, 
Assistant Secretary for Housing-Federal Housing Commissioner, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 9100, Washington, DC 20410-8000.
    If a waiver is granted, you must mail copies of the application so 
that it can be received at the appropriate local HUD office no later 
than 11:59:59 p.m. on the application deadline date of June 2, 2006. 
The letter granting the waiver will provide instructions regarding the 
number of copies and where the application must be sent.
    D. Intergovernmental Review. 1. State Review. This funding 
opportunity is subject to Executive Order (EO) 12372, 
``Intergovernmental Review of Federal Programs.'' You must contact your 
State's Single Point of Contact (SPOC) to find out about and comply 
with the state's process under EO 12372. The names and addresses of the 
SPOCs are listed in the Office of Management and Budget's home page at 
http://www.whitehouse.gov/omb/grants/spoc.html. If required by the 
state, the submission to the state needs to occur before the Section 
202 application deadline date, but in no event later than the 
application deadline date. It is recommended that you provide the state 
with sufficient time to review the application. Therefore, it is 
important that you consult with the SPOC for State review timeframes 
and take that into account when submitting the application. If the SPOC 
requires a review of your application, you must include a copy of the 
cover letter you sent to the SPOC in Exhibit 8(a) of your Section 202 
application.
    2. HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have 
an agreement to coordinate the administration of the agencies' 
respective rental assistance programs. As a result, HUD is required to 
notify RHS of applications for housing assistance it receives. This 
notification gives RHS the opportunity to comment if it has concerns 
about the demand for additional assisted housing and possible harm to 
existing projects in the same housing market area. HUD will consider 
RHS' comments in its review and application selection process.
    E. Funding Restrictions.
    1. Ineligible Activities. Section 202 funds may not be used for:
    a. Nursing homes;
    b. Infirmaries;
    c. Medical facilities;
    d. Mobile homes;
    e. Community centers;
    f. Headquarters for organizations for the elderly;
    g. Nonhousekeeping accommodations (e.g., central dining, but 
without private kitchens and/or bathrooms in the residential units);
    h. Refinancing of sponsor-owned facilities without rehabilitation,
    i. Housing that you currently own or lease that is occupied by 
elderly persons; and
    j. Projects licensed or to be licensed as assisted living 
facilities.


    Note: You may propose to rehabilitate an existing currently-
owned or leased structure that does not already serve elderly 
person, except that the refinancing of any federally-funded or 
assisted project or project insured or guaranteed by a federal 
agency is not permissible under this Section 202 NOFA. HUD does not 
consider it appropriate to utilize scarce program resources to 
refinance projects that have already received some form of 
assistance under a federal program. (For example, Section 202 or 
Section 202/8 direct loan projects cannot be refinanced with capital 
advances and project rental assistance.)

    2. Application Limits (Units/Projects). Refer to Section III.C. of 
this NOFA for

[[Page 12023]]

information applicable to the limitations on the number of units you 
may apply for in a single application and the project sizes.
    3. Development Cost Limits. a. The following development cost 
limits, adjusted by locality as described in Section IV.E.3.b. below 
must be used to determine the capital advance amount to be reserved for 
projects for the elderly.

    Note: The capital advance funds awarded for this project are to 
be considered the total amount of funds that the Department will 
provide for the development of this project. Amendment funds will 
only be provided in exceptional circumstances (e.g., to cover 
increased costs for construction delays due to litigation or 
unforeseen environmental issues resulting in a change of sites) that 
are clearly beyond your control. Otherwise, you are responsible for 
any costs over and above the capital advance amount provided by the 
Department as well as any costs associated with any excess amenities 
and design features.


    (1) The capital advance amount for the project attributable to 
dwelling use (less the incremental development cost and the capitalized 
operating costs associated with any excess amenities and design 
features and other costs you must pay for) may not exceed:
    Non-elevator structures:

$42,980 per family unit without a bedroom;
$49,557 per family unit with one bedroom;
$59,766 per family unit with two bedrooms;

    For elevator structures:

$45,232 per family unit without a bedroom;
$51,849 per family unit with one bedroom;
$63,049 per family unit with two bedrooms.

    (2) These cost limits reflect those costs reasonable and necessary 
to develop a project of modest design that complies with HUD minimum 
property standards; the accessibility requirements of Sec.  891.120(b); 
and the project design and cost standards of Sec.  891.120 and Sec.  
891.210.
    b. Increased development cost limits. (1) HUD may increase the 
development cost limits set forth above, by up to 140 percent in any 
geographic area where the cost levels require, and may increase the 
development cost limits by up to 160 percent on a project-by-project 
basis. This increase may include covering additional costs to make 
dwelling units accessible through rehabilitation.


    Note: In applying the applicable high cost percentage, the local 
HUD Office may use a percentage that is higher or lower than that 
which is assigned to the local HUD Office if it is needed to provide 
a capital advance amount that is comparable to what it typically 
costs to develop a Section 202 project in that area.


    (2) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands, or Hawaii make it infeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided in sections 
IV.E.3.a.(1) and IV.E.3.b.(1) above, the amount of the capital advances 
may be increased to compensate for such costs. The increase may not 
exceed the limits established under this section (including any high 
cost area adjustment) by more than 50 percent.
    4. Commercial Facilities. A commercial facility for the benefit of 
the residents may be located and operated in the Section 202 project. 
However, the commercial facility cannot be funded with the use of 
Section 202 capital advance or PRAC funds. The maximum amount of space 
permitted for a commercial facility cannot exceed 10 percent of the 
total project cost. An exception to this 10 percent limitation is if 
the project involves acquisition or rehabilitation and the additional 
space was incorporated in the existing structure at the time the 
proposal was submitted to HUD. Commercial facilities are considered 
public accommodations under Title III of the Americans with 
Disabilities Act of 1990 (ADA), and thus must comply with all the 
accessibility requirements of the ADA.
    5. Expiration of Section 202 Funds. The Department of Housing and 
Urban Development Appropriations Act, 2006, requires HUD to obligate 
all Section 202 funds appropriated for FY 2006 by September 30, 2009. 
Under 31 U.S.C. Section 1551, no funds can be disbursed from this 
account after September 30, 2014. Under Section 202, obligation of 
funds occurs for both capital advances and project rental assistance 
upon fund reservation and acceptance. If all funds are not disbursed by 
HUD and expended by the project Owner by September 30, 2014, the funds, 
even though obligated, will expire and no further disbursements can be 
made from this account. In submitting an application you need to 
carefully consider whether your proposed project can be completed 
through final capital advance closing no later than September 30, 2014. 
Furthermore, all unexpended balances, including any remaining balance 
on PRAC contracts, will be cancelled as of October 1, 2014. Amounts 
needed to maintain PRAC payments for any remaining term on the affected 
contracts beyond that date will have to be funded from other current 
appropriations.
    F. Other Submission Requirements:
    1. Address for Submitting Applications. Applications must be 
submitted electronically through the www.grants.gov Web site, unless 
the applicant receives a waiver from the electronic application 
submission requirement. See the General Section, Application Submission 
and Receipt Procedures, for information on applying online. If you 
apply for and receive a waiver from the electronic application 
requirement, you must submit an original and four copies of your 
completed application to the Director of the appropriate local HUD 
office. Refer to HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm for a listing of local HUD offices. The 
applications submitted electronically via www.Grants.gov will be 
downloaded and forwarded to the appropriate local HUD office.
    2. Special Instructions for Section 202 Applications That Will Have 
More Than One Applicant, i.e., Co-Sponsors. The applicants must 
designate a single individual to act as the authorized representative 
for all co-Sponsors of the application. The designated authorized 
representative of the organization submitting the application must be 
registered with Grants.gov, the Federal Central Contractor Registry and 
with the credential provider for E-Authentication. Information on the 
Grants.gov registration process is found at HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. (Ours are clearer 
instructions.) When the application is submitted through Grants.gov, 
the name of the designated authorized representative will be inserted 
into the signature line of the application. Please note that the 
designated authorized representative must be able to make legally 
binding commitments for each co-Sponsor to the application.
    Each co-Sponsor must complete the documents required of all co-
sponsoring organizations to permit HUD to make a determination on the 
eligibility of the co-Sponsor(s) and the acceptability of the 
application based on the assistance and commitments the co-Sponsor(s) 
has pledged to the project. Therefore, each co-Sponsor must submit the 
following information using the scanning and/or faxing method described 
in Section IV. of the General Section: Standard Form-424, Application 
for Federal Assistance; Standard Form-424 Supplement, Survey on 
Ensuring Equal Opportunity for Applicants; Standard Form LLL, 
Disclosure of Lobbying Activities (if

[[Page 12024]]

applicable); Form HUD-92015-CA, Section 202 Application for Capital 
Advance, Summary Information; Form HUD-92041, Sponsor's Conflict of 
Interest Resolution; and Form HUD-92042, Sponsor's Resolution for 
Commitment to Project. The forms identified above are discussed in the 
Program instructions package and can be downloaded from Grants.gov 
under the program application download at www.grants.gov. The 
downloaded and completed forms should be saved as separate electronic 
files and attached to the electronic application submission following 
the requirements of Section IV.
    As stated in the General Section, Section IV, scanning documents to 
create electronic files increases the size of the file. Therefore, 
applicants may not submit scanned files unless using the facsimile 
method as stated in the General Section will not work due to the nature 
of the document. If the facsimile method does not work, forms and other 
documents from co-Sponsors may be scanned to create an electronic file 
and submitted as an attachment to the application. These documents 
should be labeled and numbered so the HUD reviewer can identify the 
file and its contents. If the applicant is creating an electronic file, 
the file should contain a header that identifies the name of the 
Sponsor submitting the electronic application, that Sponsor's DUNS 
number, and the unique ID that is found at the top of the Facsimile 
Transmission form found in the electronic application package. The 
naming convention for each electronic file should correspond to the 
labeling convention used in the application Table of Contents found in 
Section IV.B.1. of this program NOFA. For example, the organizational 
documents of a co-Sponsor would be included under Part II, Exhibit 2(a) 
of the Section 202 application.
    The signed documents and other information required to be submitted 
with the electronic application should be transmitted via fax using 
Form HUD-96011, Facsimile Transmittal found in the electronic 
application package. Co-Sponsors should use the form HUD-96011 provided 
by the Sponsor that is submitting the electronic application. The 
submitting Sponsor should fill in the SF-424 form prior to giving the 
Form HUD-96011 to the co-Sponsors. By following these directions, the 
Form HUD-96011 will be pre-populated with the submitting Sponsor's 
organizational information exactly as the submitting Sponsor has 
provided it on the electronic application. In addition, HUD will be 
using the unique identifier associated to the downloaded application 
package as a means of matching the faxes submitted with the 
applications received via Grants.gov. The Facsimile Transmittal form 
also has space to provide the number of pages being faxed and 
information on the type of document. Co-Sponsors or the submitting 
applicant can insert the document name in the space labeled Program 
Component.


    Note: Do not insert any additional or other cover pages as it 
will cause problems in electronically matching the pieces of the 
application.


V. Application Review Information

A. Criteria

    Policy Priorities. HUD encourages applicants to undertake specific 
activities that will assist the Department in implementing its policy 
priorities and which help the Department achieve its strategic goals 
for FY 2006. Refer to the General Section for information regarding 
HUD's Strategic Goals and Policy Priorities. For the Section 202 
program, applicants who include work activities that specifically 
address the policy priorities of encouraging accessible design features 
by incorporating visitability standards and universal design, removing 
barriers to affordable housing, promoting energy efficiency in design 
and operations, and expanding training and employment opportunities for 
low- and very low-income persons and business concerns (Section 3 
requirements), will receive additional points. A Notice pertaining to 
the removal of barriers to affordable housing was published in the 
Federal Register and may be downloaded from the HUD Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    Rating Factors. HUD will rate applications that successfully 
complete technical processing using the Rating Factors set forth below 
and in accordance with the application submission requirements in this 
NOFA. The maximum number of points an application may receive under 
this program is 102. This includes two (2) RC/EZ/EC-II bonus points, as 
described in the General Section and Section V.A.6. below.
1. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (23 Points)
    This factor addresses the extent to which you have the 
organizational resources to successfully implement the proposed 
activities in a timely manner. Submit information responding to this 
factor in accordance with Application Submission Requirements in 
Exhibits 3(a), 3(b), 3(e), 5 and 6 of Section IV.B. of this NOFA. In 
rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to develop and operate the 
proposed housing on a long-term basis, considering the following:
    a. (13 points). The scope, extent, and quality of your experience 
in providing housing or related services to those proposed to be served 
by the project and the scope of the proposed project (i.e., number of 
units, services, relocation costs, development, and operation) in 
relationship to your demonstrated development and management capacity 
as well as your financial management capability.
    b. (10 points). The scope, extent and quality of your experience in 
providing housing or related services to minority persons or minority 
families and your ties to the community at large and to the minority 
and elderly communities in particular.
    (1) (5 points). The scope, extent, and quality of your experience 
in providing housing or related services to minority persons or 
minority families.
    (2) (5 points). The scope, extent, and quality of your ties to the 
community at large and to the minority and elderly communities in 
particular.
    To earn the maximum number of points under sub-criteria (b)(1) 
above, you must describe significant previous experience in providing 
housing and/or supportive services to minorities generally and to 
minority elderly in particular. For the purpose of this competition, 
``significant previous experience'' means that the previous housing 
assistance or related services to minorities (i.e., the percentage of 
minorities being provided housing or related services in your current 
developments) was equal to or greater than the percentage of minorities 
in the housing market area where the previous housing or services 
occurred. To earn the maximum number of points under sub-criteria 
(b)(2) above, you should submit materials that demonstrate your efforts 
to make housing available to the community at large and the minority 
and elderly communities in particular and your relationships over time 
with the minority and elderly communities. Examples of documents that 
may be submitted to earn the maximum number of points under sub-
criteria (b)(2) include letters of support from community leaders 
(including minority community leaders) that give information about the 
applicant's relationship over time with the community (including the 
minority community). You may also submit copies of your affirmative 
marketing

[[Page 12025]]

plan and the advertising/outreach materials you utilize to attract 
minority communities (including limited English proficient 
communities), elderly communities and the community at large. Regarding 
your advertising/outreach materials, you should identify when 
advertising/outreach materials are circulated, whom they are circulated 
to, where they are circulated and how they are circulated. Descriptions 
of other advertising/outreach efforts to the minority (including 
limited English proficient communities) and elderly communities and the 
dates and places of such advertising/outreach efforts should also be 
included.
    c. (-3 to -5 points). HUD will deduct (except if the delay was 
beyond your control) 3 points if a fund reservation you received under 
either the Section 202 Program of Supportive Housing for the Elderly or 
the Section 811 Program of Supportive Housing for Persons with 
Disabilities in FY 2001 or later has been extended beyond 24 months, 4 
points if beyond 36 months, or 5 points if beyond 48 months. Examples 
of such delays beyond your control include, but are not limited to, 
initial closing delays that are: (1) directly attributable to HUD, (2) 
directly attributable to third party opposition, including litigation, 
and (3) due to a disaster, as declared by the President of the United 
States.
    d. (-3 to -5 points). HUD will deduct from 3 points to 5 points if 
amendment money was required in connection with a fund reservation you 
received under either the Section 202 Program of Supportive Housing for 
the Elderly or the Section 811 Program of Supportive Housing for 
Persons with Disabilities in FY 2001 or later based on the following.
    (1) (-3 points). The amount of the amendment money required was 25% 
or less of the original capital advance amount approved by HUD.
    (2) (-4 points). The amount of the amendment money required was 
between 26% and 50% of the original capital advance amount approved by 
HUD.
    (3) (-5 points). The amount of the amendment money required was 
over 50% of the original capital advance amount approved by HUD.
2. Rating Factor 2: Need/Extent of the Problem (13 Points)
    This factor addresses the extent to which there is a need for 
funding the proposed activities to address a documented problem in the 
target area. Submit information responding to this factor in accordance 
with Application Submission Requirements in Exhibits 4(a) and 4(b) of 
Section IV.B. of this NOFA. HUD will take into consideration the 
following in evaluating this factor:
    The extent of the need for the project in the area based on a 
determination by the local HUD Office. In making this determination, 
HUD will consider your evidence of need in the area, as well as other 
economic, demographic, and housing market data available to the local 
HUD office. The data should include a general assessment of the current 
conditions in the market for the type of housing proposed, an estimate 
of the demand for additional housing of the type proposed in the 
applicable housing market area; as well as, information on the numbers 
and types of existing comparable federally assisted housing units for 
the elderly (HUD and RHS), current occupancy in such housing and recent 
market experience, comparable assisted housing for the elderly under 
construction or for which fund reservations have been issued, and, in 
accordance with an agreement between HUD and RHS, comments from RHS on 
the demand for additional comparable subsidized housing and the 
possible harm to existing projects in the same housing market areas. 
The Department will also review more favorably those applications that 
establish a connection between the proposed project and the community's 
Analysis of Impediments to Fair Housing Choice (AI) or other planning 
document that analyzes fair housing issues and is prepared by a local 
planning or similar organization. You must show how your proposed 
project will address an impediment to fair housing choice described in 
the AI or meet a need identified in the other type of planning 
document.
    For all Section 202 projects that are determined to have sufficient 
demand, HUD will rate your application based on the ratio of the number 
of units in the proposed project to the estimate of unmet need for 
housing assistance by the income eligible elderly households with 
selected housing conditions. Unmet need is defined as the number of 
very low-income elderly one-person renter households age 75 and older 
with housing conditions problems, as of the 2000 Census minus the 
number of project-based subsidized rental housing units (HUD, RHS, or 
LIHTC) that are affordable to very low-income elderly provided in the 
area since 1999. Units to be occupied by resident managers are not 
counted. After HUD determines the estimate of unmet need and whether a 
connection has been made between the project and community's 
Consolidated Plan, Analysis of Impediments to Fair Housing Choice, or 
other planning document, HUD will rate your application as follows:
    a. (10 points). The area of the project has an unmet needs ratio of 
15 percent or less; or
    (5 points). The area of the project has an unmet needs ratio of 
greater than 15 percent; or
    (0 points). The area of the proposed project has no unmet needs for 
housing assistance.
    b. (3 points). The extent that a connection has been established 
between the project and the community's Consolidated Plan, Analysis of 
Impediments to Fair Housing Choice (AI) or other planning document that 
analyzes fair housing issues and is prepared by a local planning or 
similar organization.
3. Rating Factor 3: Soundness of Approach (47 Points)
    This factor addresses the quality and effectiveness of your 
proposal and the extent to which you involved elderly persons, 
including elderly minority persons, in the development of the 
application and will involve them in the development and operation of 
the project, whether the jurisdiction in which your project will be 
located has undertaken successful efforts to remove regulatory barriers 
to affordable housing, whether you will promote energy efficiency in 
the design and operation of the proposed housing, and your plans to 
expand economic opportunities for low- and very low-income persons as 
well as business concerns (Section 3 requirements). There must be a 
clear relationship between your proposed design, proposed activities, 
the community's needs and purposes of the program funding for your 
application to receive points for this factor. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Exhibits 3(f), 3(j), 3(k), 4(c)(i), 4(c)(ii), 
4(d)(iii), 4(d)(v), 4(d)(vi), 5, and 8(j) of Section IV.B. of this 
NOFA. In evaluating this factor, HUD will consider the following:
    a. (20 points). The proximity or accessibility of the site to 
shopping, medical facilities, transportation, places of worship, 
recreational facilities, places of employment, and other necessary 
services to the intended occupants; adequacy of utilities and streets; 
freedom of the site from adverse environmental conditions; compliance 
with site and neighborhood standards (24 CFR 891.125(a), (d) and (e)).
    b. (-1 point). The site(s) is not permissively zoned for the 
intended use.

[[Page 12026]]

    c. (10 points). The suitability of the site from the standpoints of 
promoting a greater choice of housing opportunities for minority 
elderly persons/families, and affirmatively furthering fair housing. In 
reviewing this criterion, HUD will assess whether the site meets the 
site and neighborhood standards at 24 CFR 891.125(b) and (c) by 
examining relevant data in your application or in the local HUD Office. 
Where appropriate, HUD may visit the site.
    (1) The site will be deemed acceptable if it increases housing 
choice and opportunity by expanding housing opportunities in non-
minority neighborhoods (if located in such a neighborhood). The term 
``nonminority area'' is defined as one in which the minority population 
is lower than 10 percent. If the site will be in a minority 
neighborhood, the site will be deemed acceptable if it contributes to 
the revitalization of and reinvestment in the minority neighborhood, 
including improvement of the level, quality and affordability of 
services furnished to minority elderly. You should refer to the Site 
and Neighborhood Standards provisions of the regulations governing the 
Section 202 Supportive Housing for the Elderly program (24 CFR 
891.125(b) and (c)) when considering sites for your project.
    (2) For the purpose of this competition, the term ``minority 
neighborhood (area of minority concentration)'' is defined as one where 
any one of the following statistical conditions exists:
    (a) The percentage of persons of a particular racial or ethnic 
minority is at least 20 points higher than the minority's or 
combination of minorities' percentage in the housing market area as a 
whole;
    (b) The neighborhood's total percentage of minority persons is at 
least 20 points higher than the total percentage of minorities for the 
housing market as a whole; or,
    (c) In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.
    d. (2 points). The extent to which your proposed design will meet 
the special physical needs of elderly persons.
    e. (2 points). The extent to which the proposed size and unit mix 
of the housing will enable you to manage and operate the housing 
efficiently and ensure that the provision of supportive services will 
be accomplished in an economical fashion.
    f. (2 points). The extent to which the proposed design of the 
housing will accommodate the provision of supportive services that are 
expected to be needed, initially and over the useful life of the 
housing, by the category or categories of elderly persons the housing 
is intended to serve.
    g. (3 points). The extent to which the proposed supportive services 
meet the identified needs of the anticipated residents and that the 
identified supportive services will be provided on a consistent, long-
term basis.
    h. (1 point). The extent to which the proposed design incorporates 
visitability standards and/or universal design in the construction or 
rehabilitation of the project. Refer to the General Section for further 
information.
    i. (2 points). Your involvement of elderly persons, particularly 
minority elderly persons, in the development of the application and 
your intent to involve elderly persons, particularly minority elderly 
persons, in the development and operation of the project.
    j. (2 points). The extent to which the jurisdiction in which your 
project will be located has undertaken successful efforts to remove 
regulatory barriers to affordable housing. (Note: To receive up to 2 
points, the applicant must have submitted the optional Form HUD-27300, 
Questionnaire for HUD's Initiative on Removal of Regulatory Barriers, 
AND provided URL references or submitted the required documentary 
evidence.) Refer to the General Section for further information.
    k. (1 point). The extent to which you will promote energy 
efficiency in the design and operation of the proposed housing. Refer 
to Section III.C.3.j. of this NOFA.
    l. (2 points). The extent to which you have described your plans 
for expanding economic opportunities for low- and very-low income 
persons (provisions of Section 3). Note: To receive up to 2 points, the 
applicant must have adequately addressed the following in Exhibit 3(k) 
of the application. Refer to the General Section for further 
information.
    (1) (1 point). Provide opportunities to train and employ low- and 
very low-income residents of the project area.
    (2) (1 point). Award substantial contracts to persons residing in 
the project area.
4. Rating Factor 4: Leveraging Resources (5 Points)
    This factor addresses your ability to secure other funding sources 
and community resources that can be combined with HUD's program 
resources to achieve program purposes. Submit information responding to 
this factor in accordance with Application Submission Requirements in 
Exhibits 3(a), 3(b), 3(c), 3(d), 3(e), and 5(b) of Section IV.B. of 
this NOFA.
    a. (0 point). The application contains general support and/or 
written evidence of firm commitments towards the development and 
operation of the proposed project (including, financial assistance, 
donation of land, provision of services, etc.) from other funding 
sources (e.g., private local community and government sources) where 
the dollar value totals 5% or less of the capital advance amount as 
determined by HUD.
    b. (1 point). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value total between 
6% and 10% of the capital advance amount as determined by HUD.
    c. (2 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals 11% and 
15% of the capital advance amount as determined by HUD.
    d. (3 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals between 
16% and 20% of the capital advance amount as determined by HUD.
    e. (4 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals between 
21% and 25% of the capital advance amount as determined by HUD.
    f. (5 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals over 
25%

[[Page 12027]]

of the capital advance amount as determined by HUD.
5. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points)
    This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability and, as such, emphasizes HUD's 
commitment to ensuring that you keep the promises made in your 
application. This factor requires that you clearly identify the 
benefits or outcomes of your project and develop an evaluation plan to 
measure performance, which includes what you are going to measure, how 
you are going to measure it, and the steps you will have in place to 
make adjustments to your project development timeline should you not be 
able to achieve any of the major milestones. Completion of Exhibit 
8(i), Project Outcome Logic Model, will assist you in completing your 
response to this rating factor. This rating factor also addresses the 
extent to which your project will implement practical solutions that 
result in residents achieving independent living, educational 
opportunities, and improved living environments. Finally, this factor 
addresses the extent to which the long-term viability of your project 
will be sustained for the duration of the 40-year capital advance 
period. Submit information responding to this factor in accordance with 
Application Submission Requirements in Exhibits 3(e), 3(g), 3(h), 3(i), 
6(b) and 8(i) of Section IV.B.
    a. (5 points). The extent to which your project development 
timeline is indicative of your full understanding of the development 
process and will, therefore, result in the timely development of your 
project.
    b. (2 points). The extent to which your past performance evidences 
that the proposed project will result in the timely development of the 
project. Evidence of your past performance could include the 
development of previous construction projects, including but not 
limited to Section 202 and Section 811 projects.
    c. (2 points). The extent to which your project will implement 
practical solutions that will result in assisting residents in 
achieving independent living, educational opportunities, outreach 
regarding telemarketing fraud, and improved living environments.
    d. (3 points). The extent to which you demonstrated that your 
project will remain viable as housing with the availability of 
supportive services for very low-income elderly persons for the 40-year 
capital advance period.
6. Bonus Points (2 Bonus Points)
    Location of proposed site in an RC/EZ/EC-II area, as described in 
the General Section. Submit the information responding to the bonus 
points in accordance with the Application Submission Requirements in 
Exhibit 8(h) of Section IV.B. of this NOFA.

B. Reviews and Selection Process

    1. Review for Curable Deficiencies. Upon receipt of the application 
by HUD staff, HUD will screen all applications to determine if there 
are any curable deficiencies. For applicants receiving a waiver to 
submit a paper application, submitting fewer than the required original 
and four copies of the application is not a curable deficiency and will 
cause your application to be considered non-responsive to the NOFA and 
returned to you. A curable deficiency is a missing Exhibit or portion 
of an Exhibit that will not affect the rating of the application. Refer 
to the General Section for additional information regarding procedures 
for corrections to deficient applications. The following is a list of 
the only deficiencies that will be considered curable in a Section 202 
application:

------------------------------------------------------------------------
                Exhibit                            Description
------------------------------------------------------------------------
1......................................  Form 92015-CA (Application
                                          Form).*
2(a)...................................  Articles of Incorporation.*
(b)....................................  By-laws.*
(c)....................................  IRS tax exemption ruling.*
4(c)(iii)..............................  Description of mixed-financing
                                          plans for additional units, if
                                          applicable.
4(d)(i)................................  Evidence of site control.
(d)(ii)................................  Evidence site is free of
                                          limitations, restrictions or
                                          reverters.
(d)(iv)................................  Evidence of compliance with URA
                                          site notification requirement.
(d)(vii)...............................  Phase I ESA.
(d)(viii)..............................  Asbestos Statement or Survey.
(d)(ix)................................  Letter to the State/Tribal
                                          Historic Preservation Officer.
                                          (SHPO/THPO) and a statement
                                          that the SHPO/THPO failed to
                                          respond; or the Letter from
                                          the SHPO/THPO.
7......................................  Relocation.
8(a)...................................  Standard Form 424, Application
                                          for Federal Assistance, Letter
                                          sent to the State Point of
                                          Contact (SPOC).*
(b)....................................  Standard Form 424 Supplement,
                                          Survey on Ensuring Equal
                                          Opportunity for Applicants.
(c)....................................  Standard Form LLL, Disclosure
                                          of Lobbying Activities, if
                                          applicable.
(d)....................................  Form HUD-2880, Applicant/
                                          Recipient Disclosure/Update
                                          Report.
(e)....................................  Form HUD-2991, Certification of
                                          Consistency with Consolidated
                                          Plan.
(f)....................................  Form-HUD-92041, Sponsor's
                                          Conflict of Interest
                                          Resolution.
(g)....................................  Form HUD-92042, Sponsor's
                                          Resolution for Commitment to
                                          Project.*
------------------------------------------------------------------------

    The local HUD office will notify you in writing if your application 
is missing any of the above exhibits or portions of exhibits and will 
provide you with a specified deadline to submit the information 
required to cure the noted deficiencies. The items identified by an 
asterisk (*) must be dated on or before the application submission 
date. If an Exhibit or portion of an Exhibit listed above as curable is 
not discovered as missing until technical processing, HUD will provide 
you with a deadline to cure the deficiency.
    2. Rating. HUD will review and rate your application in accordance 
with the Reviews and Selection Process in the General Section except as 
described in 3. Appeal Process below. Your application will be either 
rated or technically rejected at the end of technical review. If your 
application meets all program eligibility requirements after completion 
of technical review, it will be rated according to the rating factors 
in Section V.A. above.
    3. Appeal Process. HUD will not reject your application based on 
technical review without notifying you of the rejection with all the 
reasons for rejection and providing you an opportunity to appeal. You 
will have 14 calendar days from the date of HUD's written notice to 
appeal a technical rejection to the local HUD office. In HUD's review 
of any appeal, it should be noted that in conformance with its 
regulations at 24 CFR part 4, subpart B, HUD will not consider any 
unsolicited information that you, the applicant, may want to provide. 
The local HUD office will make a determination on any appeals before 
making its selection recommendations.
    4. Ranking and Selection Procedures. Applications submitted in 
response to the advertised metropolitan allocations or nonmetropolitan 
allocations that have a total base score of 75 points or more (without 
the addition of RC/EC/EZ-II bonus points) and meet all of the 
applicable threshold requirements of the General Section and this NOFA 
will be eligible for selection, and HUD will

[[Page 12028]]

place them in rank order per metropolitan or nonmetropolitan 
allocation. These applications, after adding any bonus points for RC/
EC/EZ-II, will be selected based on rank order, up to and including the 
last application that can be funded out of each HUD Multifamily Program 
Center's metropolitan or nonmetropolitan allocation. HUD Multifamily 
Program Centers will not skip over any applications in order to select 
one based on the funds remaining. After making the initial selections 
in each allocation area, however, HUD Multifamily Program Centers may 
use remaining available funds to select the next rank-ordered 
application by reducing the number of units by no more than 10 percent, 
rounded to the nearest whole number, provided the reduction will not 
render the project infeasible. For this purpose, however, HUD will not 
reduce the number of units in projects of five units or less.
    Once this process has been completed, HUD Multifamily Program 
Centers may combine their unused metropolitan and nonmetropolitan funds 
in order to select the next highest ranked application in either 
category, using the unit reduction policy described above, if 
necessary.
    After the HUD Multifamily Program Centers have funded all possible 
projects based on the process above, combined metropolitan and 
nonmetropolitan residual funds from all HUD Multifamily Program Centers 
within each Multifamily Hub will be combined. First, these funds will 
be used to restore units to projects reduced by HUD Multifamily Program 
Centers based on the above instructions. Second, additional 
applications within each Multifamily Hub will be selected in Hub-wide 
rank order with only one application selected per HUD Multifamily 
Program Center. More than one application may be selected per HUD 
Multifamily Program Center if there are no approvable applications in 
other HUD Multifamily Program Centers within the Multifamily Hub. This 
process will continue until there are no more approvable applications 
within the Multifamily Hub that can be selected with the remaining 
funds. Applications may not be skipped over to select one based on 
funds remaining. However, the Multifamily Hub may use any remaining 
residual funds to select the next highest rated application by reducing 
the number of units by no more than 10 percent rounded to the nearest 
whole number, provided the reduction will not render the project 
infeasible or result in the project being less than five units.
    Funds remaining after the Multifamily Hub selection process is 
completed will be returned to Headquarters. HUD Headquarters will use 
these residual funds first to restore units to projects reduced by HUD 
Multifamily Program Centers or Multifamily Hubs as a result of the 
instructions for using their residual funds. Second, HUD Headquarters 
will use these funds for selecting applications based on HUD 
Multifamily Program Centers' rankings, beginning with the highest rated 
application nationwide. However, after restoring units to projects 
where necessary, priority will be given to those applications for 
projects in non-metropolitan areas, if necessary to meet the statutory 
requirement of Section 202 of the Housing Act of 1959 pertaining to 
Section 202 funding in nonmetropolitan areas. Only one application will 
be selected per HUD Multifamily Program Center from the national 
residual amount. If there are no approvable applications in other HUD 
Multifamily Program Centers, the process will begin again with the 
selection of the next highest rated application nationwide. This 
process will continue until all approvable applications are selected 
using the available remaining funds. HUD Headquarters may skip over a 
higher-rated application in order to use as much of the available 
remaining funds as possible.
    5. HUD Error. In the event HUD commits an error that, when 
corrected, would have resulted in the selection of an otherwise 
eligible applicant during the funding round of this NOFA, HUD may 
select that applicant when sufficient funds become available.

VI. Award Administration Information

A. Award Notices

    1. Agreement Letter. If you are selected to receive a Section 202 
fund reservation, you will receive an Agreement Letter that stipulates 
the terms and conditions for the Section 202 fund reservation award as 
well as the submission requirements following the fund reservation 
award. The duration of the fund reservation award for the capital 
advance is 18 months from the date of issuance of the fund reservation.
    Immediately upon your acceptance of the Agreement Letter, you are 
expected to begin work towards the submission of a Firm Commitment 
Application, which is the next application submission stage. You are 
required to submit a Firm Commitment Application to the local HUD 
office within 180 days from the date of the Agreement Letter. Initial 
closing of the capital advance and start of construction of the project 
are expected to be accomplished within the duration of the fund 
reservation award. Final closing of the capital advance is expected to 
occur no later than six months after completion of project 
construction.
    2. Non-Selection Letter. If your application is approvable but 
unfunded due to insufficient funds or receives a rating that is below 
the minimum threshold score established for funding eligibility, you 
will receive a letter to this effect.
    3. Debriefing. Refer to the General Section for further information 
regarding debriefings, except that the request for a debriefing must be 
made to the Director of Multifamily Housing in the appropriate local 
HUD office.

B. Administrative and National Policy Requirements

    1. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. Although the 
Section 202 program is not subject to the provisions of 24 CFR 85.36(e) 
as described in the corresponding paragraph in the General Section, you 
are required to comply with Executive Order 12432, Minority Business 
Enterprise Development and Executive Order 11625, Prescribing 
Additional Arrangements for Developing and Coordinating a National 
Program for Minority Business Enterprise as they relate to the 
encouragement of HUD grantees to utilize minority business enterprises.
    2. Acquisition and Relocation. You must comply with the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended (49 CFR part 24, and 24 CFR 891.155(e)) (URA), which 
covers the acquisition of sites, with or without existing structures, 
and with 24 CFR 8.4(b)(5) of the Section 504 regulations which 
prohibits discrimination based on disability in determining the site or 
location of a federally-assisted facility. However, you are exempt from 
complying with the site acquisition requirements of the URA if you do 
not have the power of eminent domain and prior to entering into a 
contract of sale, option to purchase or any other method of obtaining 
site control, you inform the seller of the land in writing (1) that you 
do not have the power of eminent domain and, therefore, you will not 
acquire the property if negotiations fail to result in an amicable 
agreement, and (2) of the estimate of the fair market value of the 
property. An appraisal is not required to meet this requirement, 
however, your files must include an explanation (with reasonable 
evidence) of the basis for the estimate. Evidence of

[[Page 12029]]

compliance with this advance notice requirement must be included in 
Exhibit 4(d)(iv) of your application.
    3. Flood Disaster Protection Act of 1973 and Coastal Barrier 
Resources Act. You must comply with the requirements under the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal 
Barrier Resources Act (16 U.S.C. 3601).

C. Reporting

    1. The Program Outcome Logic Model (Form HUD-96010) must be 
completed indicating the results achieved against the proposed output 
goal(s) and proposed outcome(s) which you stated in your approved 
application and agreed upon by HUD. Based on the information you 
provided in the Program Outcome Logic Model, you also are required to 
submit to HUD a statement reporting the Return on Investment as a 
result of HUD's Section 202 funding award to you to develop and operate 
a Section 202 housing project with supportive services for the very 
low-income elderly. The Return on Investment requirement is a 
comparison of the cost of the acquisition, construction, or 
rehabilitation of housing with supportive services for elderly persons, 
including the frail elderly, 62 years of age and over, with the value 
of maintaining an elderly person, including a frail elderly person, in 
their own home and avoiding placement into a long-term care facility. 
These reporting requirements are to be submitted to HUD as follows:
    a. Program Outcome Logic Model. You, as the Sponsor, and the Owner, 
when formed, are required to report annually, beginning from the date 
of the Agreement Letter, on the results achieved against the output 
goal(s) and outcome(s), which you proposed in the Program Outcome Logic 
Model that was submitted in your application. For FY2006, HUD is 
considering a new concept for the Logic Model. The new concept is a 
Return on Investment (ROI) statement. HUD will be publishing a separate 
notice on the ROI concept.
    2. The Regulatory Agreement (Form HUD-92466-CA) requires the Owner 
of the Section 202 project to submit an annual financial statement for 
the project. This financial statement must be audited by an Independent 
Public Accountant who is a Certified Public Accountant or other person 
accepted by HUD and filed electronically with HUD's Real Estate 
Assessment Center (REAC) through the Financial Assessment Subsystem for 
Multifamily Housing (MF-FASS). The submission of annual financial 
statements is required throughout the 40-year term of the mortgage.

VII. Agency Contact(s)

    For Technical Assistance. For technical assistance in downloading 
an application package from www.grants.gov, contact the Grants.gov help 
desk at 800-518-Grants or by sending an e-mail to [email protected]. 
For programmatic information, you may contact the appropriate local HUD 
office, or Evelyn Berry at HUD Headquarters at (202) 708-3000 (this is 
not a toll-free number), or access the Internet at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Persons with hearing and speech 
impairments may access the above number via TTY by calling the Federal 
Relay Service at 1-800-877-8339 (this is a toll-free number).

VIII. Other Information

    A. Field Office Workshop. HUD encourages minority organizations and 
grassroots organizations (e.g., civic organizations, faith-communities 
and grassroots faith-based and other community-based organizations) to 
participate in this program and strongly recommends that prospective 
applicants attend the local HUD office workshop. At the workshops, HUD 
will explain application procedures and requirements, as well as 
address concerns such as local market conditions, building codes and 
accessibility requirements, contamination identification and 
remediation, historic preservation, floodplain management, other 
environmental requirements, displacement and relocation, zoning, and 
housing costs. If you are interested in attending the workshop, make 
sure that your name, address and telephone number are on the 
appropriate local HUD office's mailing list so that you will be 
informed of the date, time and place of the workshop. Persons with 
disabilities should call the appropriate local HUD Office to assure 
that any necessary arrangements can be made to enable their attendance 
and participation in the workshop.
    If you cannot attend the workshop, call the appropriate local HUD 
office if you have any questions concerning the submission of 
applications to that particular office and to request any materials 
distributed at the workshop.
    B. Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. It is strongly recommended that 
potential applicants, especially those who may be applying for Section 
202 funding for the first time, tune in to this broadcast, if at all 
possible. Copies of the broadcast tapes are also available from the 
NOFA Information Center. For more information about the date and time 
of the broadcast, you should consult the HUD Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    C. Related Programs. Funding for a related program, Section 202 
Demonstration Planning Grant Program, is available to provide 
predevelopment grants to private nonprofit organizations and consumer 
cooperatives in connection with the development of housing under the 
Section 202 program. The announcement of the availability of funding 
under this program will be addressed in a separate NOFA. Also, funding 
was made available for the Department to carry out a Section 202 
Demonstration Program for Elderly Housing for Intergenerational 
Families. The announcement of the availability of funds for this 
demonstration program will be addressed in a future Federal Register.
    D. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2502-0267. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number. Public reporting burden for the collection of 
information is estimated to average 37.42 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. 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 derived.

BILLING CODE 4210-01-P

[[Page 12030]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.030


[[Page 12031]]



Section 811 Program of Supportive Housing for Persons With Disabilities 
(Section 811 Program)

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Housing.
    B. Funding Opportunity Title: Section 811 Supportive Housing for 
Persons with Disabilities.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: OMB Approval Number: 2502-0462. The 
Federal Register number is: FR-5030-N-21.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.181, 
Section 811 Supportive Housing for Persons with Disabilities.
    F. Dates: Application deadline date: May 26, 2006. Refer to Section 
IV. below and the General Section for information on application 
submission requirements.
    G. Optional, Additional Overview Content Information: 1. Purpose of 
the Program. This program provides funding for the development and 
operation of supportive housing for very low-income persons with 
disabilities who are at least 18 years old. If you receive funding 
through this program, you must assure that supportive services are 
identified and available.
    2. Available Funds. Approximately 90.3 million in capital advance 
funds, plus associated project rental assistance contract (PRAC) funds 
and any carryover funds available.
    3. Types of Funds. Capital advance funds will cover the cost of 
developing the housing. PRAC funds will cover the difference between 
the HUD-approved operating costs of the project and the tenants' 
contributions toward rent (30 percent of their adjusted monthly 
income).
    4. Eligible Applicants. Nonprofit organizations that have a section 
501(c)(3) tax exemption from the Internal Revenue Service. (See Section 
VI.B.6. below of this NOFA for further details and information 
regarding the formation of the Owner corporation.)
    5. Eligible Activities. New construction, rehabilitation, or 
acquisition (with or without rehabilitation) of housing. (See Section 
III.C.1. below of this NOFA for further information.)
    6. Match Requirements. None required.
    7. Local HUD Offices. The local HUD office structure, for the 
purpose of implementing the Section 811 program, consists of 18 
Multifamily Hub Offices. Within the Multifamily Hubs, there are 
Multifamily Program Centers with the exception of the New York Hub, the 
Buffalo Hub, the Denver Hub and the Los Angeles Hub. All future 
references shall use the term ``local HUD office'' unless a more 
detailed description is necessary as in Limitations on Applications and 
Ranking and Selection Procedures, below.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. HUD provides capital advances and contracts 
for project rental assistance in accordance with 24 CFR part 891. 
Capital advances may be used for the construction or rehabilitation of 
a structure or acquisition of a structure with or without 
rehabilitation (including structures from the Federal Deposit Insurance 
Corporation (FDIC)), to be developed into a variety of housing options 
described in Section III.C. Capital advance funds bear no interest and 
are based on development cost limits in Section IV.E.3. Repayment of 
the capital advance is not required as long as the housing remains 
available for occupancy by very low-income persons with disabilities 
for at least 40 years. PRAC funds are used to cover the difference 
between the tenants' contributions toward rent (30 percent of adjusted 
income) and the HUD-approved cost to operate the project.
    B. Authority. 42 U.S.C. 8013 (Section 811 of the Cranston-Gonzalez 
National Affordable Housing Act (Pub. L. 101-625, approved November 28, 
1990)(NAHA), as amended by the Housing and Community Development Act of 
1992) (Pub. L. 102-550, approved October 28, 1992)(HCD Act of 1992); 
the Rescissions Act (Pub. L. 104-19, approved July 27, 1995); the 
American Homeownership and Economic Opportunity Act of 2000 (Pub. L. 
106-569, approved December 27, 2000) and the Department of Housing and 
Urban Development Appropriations Act, 2006, (Pub. L.109-115, approved 
November 30, 2005) and the Government-wide Rescissions pursuant to the 
Department of Defense Appropriations Act, 2006 (Pub. L. 109-148, 
approved December 30, 2005) authorized a new supportive housing program 
for persons with disabilities, and replaced assistance for persons with 
disabilities previously covered by section 202 of the Housing Act of 
1959 (section 202 continues, as amended by section 801 of the NAHA, and 
the HCD Act of 1992, to authorize supportive housing for the elderly).
    C. Eligible Occupancy. You may propose a Section 811 project to 
serve persons with physical disabilities, developmental disabilities, 
chronic mental illness, or any combination of the three as defined in 
24 CFR 891.305. In addition, you may request HUD approval to restrict 
occupancy to a subcategory of one of these three defined categories 
(e.g., HIV/AIDS is a subcategory of physical disability). If restricted 
occupancy is approved, however, you cannot deny occupancy to any 
otherwise qualified person that meets the definition of the overall 
category of disability under which the subcategory falls.
    D. Calculation of Fund Reservation. If selected, you will receive a 
fund reservation that will consist of both a reservation of capital 
advance funds and a reservation of three years for project rental 
assistance.
    1. Capital advance funds. The reservation of capital advance funds 
is based on a formula which, for an independent living project 
(including condominiums), takes the development cost limit for the 
appropriate building type (elevator, non-elevator) and unit size(s) and 
multiplies it by the number of units of each size (including a unit for 
a resident manager, if applicable) and then multiplies the result by 
the high cost factor for the area. For a group home, the formula is 
based on the number of persons with disabilities in the appropriate 
disability category (excluding any unit for a resident manager since 
such a unit is already incorporated in the development cost limit) 
multiplied by the high cost factor for the area. The development cost 
limits can be found in Section IV.E.3. of this NOFA.
    2. PRAC funds. The initial PRAC award covers three years. The 
amount awarded is determined by multiplying the number of units for 
residents with disabilities in an independent living project or the 
number of residents with disabilities in a group home by the 
appropriate operating cost standard times 3. The operating cost 
standards will be published by Notice.

II. Award Information

    A. Available Funds. For FY 2006, $90,302,844 million is available 
for capital advances for the Section 811 Program of Supportive Housing 
for Persons with Disabilities. The Department of Housing and Urban 
Development Appropriations Act, 2006 (Pub. L. 109-115, approved 
November 30, 2005) provides $239,000,000 for capital advances, 
including amendments to capital advance contracts, for supportive 
housing for persons with disabilities as authorized by section 811 of 
the National Affordable Housing Act of 1990

[[Page 12032]]

(NAHA); for project rental assistance for supportive housing for 
persons with disabilities under section 811 of the NAHA, including 
amendments to contracts for such assistance and renewal of expiring 
contracts for such assistance for up to a one-year term and for tenant-
based rental assistance contracts and renewal of expiring contracts for 
such assistance entered into pursuant to section 811 of the NAHA, and 
$400,000 to be transferred to the Working Capital Fund, all of which is 
subject to a 1 percent across-the-board rescission pursuant to Public 
Law 109-148. $5,000,000 will be provided for tenant-based rental 
assistance for persons with disabilities administered through public 
housing agencies (PHAs) and nonprofit organizations under the 
Mainstream Housing Opportunities for Persons with Disabilities Program 
and $78,300,000 will be provided for one-year renewal costs of Section 
811 rental assistance.
    In accordance with the waiver authority provided in the Department 
of Housing and Urban Development Appropriations Act, 2006, the 
Secretary is waiving the following statutory and regulatory provision: 
The term of the project rental assistance contract is reduced from 20 
years to 3 years. HUD anticipates that at the end of the contract 
terms, renewals will be approved subject to the availability of funds. 
In addition to this provision, HUD will reserve project rental 
assistance contract funds based on 75 percent rather than on 100 
percent of the current operating cost standards for approved units in 
order to take into account the average tenant contribution toward rent.
    The allocation formula used for Section 811 reflects the ``relevant 
characteristics of prospective program participants,'' as specified in 
24 CFR 791.402(a). The FY2006 formula consists of the following data 
element from the 2000 Census: the number of non-institutionalized 
persons age 16 to 64 with a disability. The data on disability status 
were derived from answers to a two-part question that asked about the 
existence of the following long-lasting conditions: (a) Blindness, 
deafness, or a severe vision or hearing impairment (sensory 
disability), and (b) a condition that substantially limits one or more 
basic physical activities, such as walking, climbing stairs, reaching, 
lifting, or carrying (physical disability); and a four-part question 
that asked if the individual had a physical, mental, or emotional 
condition lasting 6 months or more that made it difficult to perform 
certain activities. The four activity categories were: (a) Learning, 
remembering, or concentrating (mental disability); (b) dressing, 
bathing, or getting around inside the home (self-care disability); (c) 
going outside the home alone to shop or visit a doctor's office (going 
outside the home disability); and (d) working at a job or business 
(employment disability).
    Under the Section 811 Program, each local HUD office jurisdiction 
receives sufficient capital advance funds for a minimum of 10 units. 
The total amount of capital advance funds to support this minimum set-
aside is then subtracted from the total capital advance available. The 
remainder is fair shared to each local HUD office jurisdiction whose 
fair share would exceed the set-aside based on the allocation formula 
fair share factors describe below.
    The fair share factors were developed by taking the count of 
disabilities in the data element for each state, or state portion, of 
each local HUD office jurisdiction as a percent of the data element 
from the 2000 Census, described above, for the total United States. The 
resulting percentage for each local HUD office is then adjusted to 
reflect the relative cost of providing housing among the local HUD 
office jurisdictions. The adjusted needs percentage for each local HUD 
office is then multiplied by the total amount of capital advance funds 
available nationwide.
    The Section 811 capital advance funds have been allocated, based on 
the formula above, to 51 local HUD offices as shown on the following 
chart:

 FY 2006 Section 811 Allocations for Supportive Housing for Persons With
                              Disabilities
------------------------------------------------------------------------
                                                              Capital
                    Offices                       Units       advance
------------------------------------------------------------------------
                               Boston Hub
------------------------------------------------------------------------
Boston.........................................       20      $2,303,897
Hartford.......................................       10       1,177,474
Manchester.....................................       10         937,874
Providence.....................................       10       1,168,554
                                                ------------------------
    Total......................................       50       5,587,799
------------------------------------------------------------------------
                              New York Hub
------------------------------------------------------------------------
New York.......................................       34       4,079,464
------------------------------------------------------------------------
                               Buffalo Hub
------------------------------------------------------------------------
Buffalo........................................       19       1,961,030
------------------------------------------------------------------------
                            Philadelphia Hub
------------------------------------------------------------------------
Charleston.....................................       10         883,106
Newark.........................................       22       2,622,563
Philadelphia...................................       23       2,599,492
Pittsburgh.....................................       15       1,473,111
                                                ------------------------
    Total......................................       70       7,578,272
------------------------------------------------------------------------
                              Baltimore Hub
------------------------------------------------------------------------
Baltimore......................................       15       1,455,965
Richmond.......................................       18       1,576,619

[[Page 12033]]

 
Washington.....................................       15       1,616,012
                                                ------------------------
    Total......................................       48       4,648,596
------------------------------------------------------------------------
                             Greensboro Hub
------------------------------------------------------------------------
Columbia.......................................       18       1,610,633
Greensboro.....................................       24       2,631,484
                                                ------------------------
    Total......................................       42       4,242,117
------------------------------------------------------------------------
                               Atlanta Hub
------------------------------------------------------------------------
Atlanta........................................       24       1,974,924
Knoxville......................................       10         832,557
Louisville.....................................       18       1,558,073
Nashville......................................       16       1,339,069
San Juan.......................................       19       1,839,670
                                                ------------------------
    Total......................................       87       7,544,293
------------------------------------------------------------------------
                            Jacksonville Hub
------------------------------------------------------------------------
Birmingham.....................................       18       1,480,947
Jackson........................................       16       1,214,171
Jacksonville...................................       38       3,021,346
                                                ------------------------
    Total......................................       72       5,716,464
------------------------------------------------------------------------
                               Chicago Hub
------------------------------------------------------------------------
Chicago........................................       28       3,191,666
Indianapolis...................................       19       1,720,040
                                                ------------------------
    Total......................................       47       4,911,706
------------------------------------------------------------------------
                              Columbus Hub
------------------------------------------------------------------------
Cincinnati.....................................       10         880,132
Cleveland......................................       18       1,710,077
Columbus.......................................       10         861,301
                                                ------------------------
    Total......................................       38       3,451,510
------------------------------------------------------------------------
                               Detroit Hub
------------------------------------------------------------------------
Detroit........................................       20       2,019,247
Grand Rapids...................................       15       1,329,464
                                                ------------------------
    Total......................................       35       3,348,711
------------------------------------------------------------------------
                             Minneapolis Hub
------------------------------------------------------------------------
Minneapolis....................................       16       1,708,402
Milwaukee......................................       17       1,719,424
                                                ------------------------
    Total......................................       33       3,427,826
------------------------------------------------------------------------
                              Ft. Worth Hub
------------------------------------------------------------------------
Ft. Worth......................................       30       2,211,919
Houston........................................       20       1,514,450
Little Rock....................................       15       1,113,202
New Orleans....................................       18       1,414,339
San Antonio....................................       19       1,400,829
 
    Total......................................      102       7,654,739
------------------------------------------------------------------------
                             Kansas City Hub
------------------------------------------------------------------------
Des Moines.....................................       10         796,877
Kansas City....................................       17       1,495,773
Oklahoma City..................................       16       1,233,530

[[Page 12034]]

 
Omaha..........................................       10         883,106
St. Louis......................................       10       1,008,981
                                                ------------------------
    Total......................................       63       5,418,267
------------------------------------------------------------------------
                               Denver Hub
------------------------------------------------------------------------
Denver.........................................       23       2,005,360
------------------------------------------------------------------------
                            San Francisco Hub
------------------------------------------------------------------------
San Francisco..................................       29       3,344,550
Honolulu.......................................       10       1,784,052
Phoenix........................................       18       1,462,681
Sacramento.....................................       16       1,783,920
                                                ------------------------
    Total......................................       73       8,375,203
------------------------------------------------------------------------
                             Los Angeles Hub
------------------------------------------------------------------------
Los Angeles....................................       45       4,986,788
------------------------------------------------------------------------
                               Seattle Hub
------------------------------------------------------------------------
Seattle........................................       19       2,018,070
Anchorage......................................       10       1,784,052
Portland.......................................       17       1,562,577
                                                ------------------------
    Total......................................       46       5,364,699
                                                ========================
        National Total.........................      927      90,302,844
------------------------------------------------------------------------

    B. Type of Award. Capital Advance and Project Rental Assistance 
Contract Funds for new Section 811 applications.
    C. Type of Assistance Instrument. The Agreement Letter stipulates 
the terms and conditions for the Section 811 fund reservation award as 
well as the submission requirements following the fund reservation 
award. The duration of the fund reservation award for the capital 
advance is 18 months from the date of issuance of the fund reservation.
    D. Anticipated Start and Completion Date. Immediately upon your 
acceptance of the Agreement Letter, you are expected to begin work 
toward the submission of a Firm Commitment Application, which is the 
next application submission stage. You are required to submit a Firm 
Commitment Application to the local HUD office within 180 days from the 
date of the Agreement Letter. Initial closing of the capital advance 
and start of construction of the project are expected to be 
accomplished within the duration of the fund reservation award as 
indicated in the above paragraph regarding the Type of Assistance 
Instrument. Final closing of this capital advance is expected to occur 
no later than six months after completion of project construction.

III. Eligibility Information

    A. Eligible Applicants: Nonprofit organizations with a section 
501(c)(3) tax exemption from the Internal Revenue Service and who meet 
the threshold requirements contained in the General Section NOFA and 
Section III.C.2 below are the only eligible applicants for this 
program.
    Applicant eligibility for purposes of applying for a Section 811 
fund reservation under this NOFA has not changed; i.e., all Section 811 
Sponsors and Co-Sponsors must be nonprofit organizations. However, the 
Owner corporation, when later formed by the Sponsor, may be (1) a 
single-purpose nonprofit organization that has tax-exempt status under 
Section 501(c)(3) of the Internal Revenue Code (IRS) of 1986, or (2) 
for purposes of developing a mixed-finance project pursuant to the 
statutory provision under Title VIII of the American Homeownership and 
Economic Opportunity Act of 2000, a for-profit limited partnership with 
a nonprofit organization that has tax-exempt status under Section 
501(c)(3) of the IRS code as the sole general partner.
    See Section IV.E.2 below regarding limits on the total number of 
units and projects for which you may apply for funding.
    B. Cost Sharing or Matching: No cost sharing or match is required; 
however, you are required to make a commitment to cover the estimated 
start-up expenses, the minimum capital investment of one half of one 
percent of the HUD-approved capital advance, not to exceed $10,000, and 
any funds required in excess of the capital advance, including the 
estimated cost of any amenities or features (and operating costs 
related thereto) which are not covered by the capital advance. You must 
make such a commitment by signing the form HUD-92042, Sponsor's 
Resolution for Commitment to Project, in Exhibit 8(g) of the 
application found in Section IV.B. below.
    C. Other: 1. Eligible Activities. Section 811 capital advance funds 
must be used to finance the development of housing through new 
construction, rehabilitation, or acquisition with or without 
rehabilitation. Capital advance funds may also be used in combination 
with other non-Section 811 funding sources leveraged by a for-profit 
limited partnership (of which a single-purpose nonprofit organization 
with a 501(c)(3) tax exemption is the sole general partner) to develop 
a mixed-finance project, including a mixed-finance project for 
additional units over and above the Section 811 units. The

[[Page 12035]]

development of a mixed-use project in which the Section 811 units are 
mortgaged separately from the other uses of the structure is not 
considered a mixed-finance project. Project rental assistance funds are 
provided to cover the difference between the HUD-approved operating 
costs and the amount the residents pay (each resident pays 30 percent 
of adjusted income). The types of housing that can be developed with 
Section 811 capital advance funds include independent living projects, 
dwelling units in multifamily housing developments, condominium and 
cooperative housing and small group homes.


    Note: For purposes of approving Section 811 capital advances, 
HUD will consider proposals involving mixed-financing for additional 
units over and above the Section 811 units if you have legal control 
of an approvable site and the additional units do not cause the 
project, as a whole, to exceed the project size limits if the 
additional units will also house persons with disabilities (unless 
your project will be an independent living project and you request 
and receive HUD approval to exceed the project size limits (See 
IV.B.2.c.(1)(d)(xii)). However, you must obtain funds to assist the 
additional units with other than PRAC funds. HUD will not provide 
PRAC funds for non-Section 811 units.


    2. Threshold Criteria for Funding Consideration. In addition to the 
threshold criteria outlined in the General Section of the SuperNOFA, 
the following threshold requirements must be met:
    a. Non-Responsive Application. Your application will be considered 
non-responsive to the NOFA and will not be accepted for processing if 
you:
    (1) Submit less than the required number of copies (an original and 
four copies are required) if you requested and received approval for a 
waiver of the electronic submission requirement. Refer to the General 
Section for information on application submission and receipt 
procedures;
    (2) Submit paper copies of the application if you have not received 
approval from HUD for a waiver of the electronic submission 
requirements;
    (3) Submit a substantially deficient application (i.e., a majority 
of the required exhibits are not submitted with your application, 
particularly, but not limited to, those exhibits which are not 
curable). HUD reserves the right to determine whether your application 
is substantially deficient for purposes of determining whether the 
application is non-responsive to the NOFA. Refer to Section IV.B., 
Content and Form of Application Submission, for information on the 
required exhibits for submission with your application to ensure that 
your application is complete at time of submission;
    (4) Request more units than were allocated to the local HUD office 
that will be reviewing your application (See the allocation chart in 
Section II.A. above);
    (5) Request less than the minimum number of units for persons with 
disabilities in an independent living project (5 units) or a group home 
(2 units);
    (6) Request more than the maximum number of units for a group home 
(6 units); or
    (7) Request assistance for housing that you currently own or lease 
that has been occupied by people with disabilities for longer than one 
year prior to the application deadline date;
    (8) Request assistance for an ineligible activity as defined in 
Section IV.E., Funding Restrictions, of this program NOFA;
    (9) Are an ineligible applicant (see Section III.A., Eligible 
Applicants of this program NOFA).
    b. Other Criteria. (1) You, or a Co-Sponsor, must have experience 
in providing housing or services to persons with disabilities.
    (2) You and any Co-Sponsor must be eligible nonprofit organizations 
with tax-exempt status under Section 501(c)(3) of the Internal Revenue 
Service code.
    (3) Your application must contain evidence of site control or the 
identification of a site. Section 811(d)(3) of the National Affordable 
Housing Act requires you to provide either evidence of site control or 
a reasonable assurance that you will have control of a site within six 
months of the date of the Agreement Letter notifying you that you have 
been selected to receive a Section 811 fund reservation. Accordingly, 
you must include in your application, the required information 
specified below for evidence of site control, or the required 
information specified below under site identification as a reasonable 
assurance that site control will be obtained within six months of the 
date of the Agreement Letter. If you submit the required information 
for an identified site(s), you must include a specific street address 
for each identified site or the application will be rejected.
    (a) Evidence of Site Control--If you have control of a site at the 
time you submit your application, you must provide the information in 
Exhibit 4(d) in IV.B. of this NOFA relative to site control, or
    (b) Site Identification--If you do not have site control of one or 
more of your sites, you must provide the information required in 
Exhibit 4(e) in IV.B. of this NOFA under ``Identification of a Site'' 
for any site not under control as a reasonable assurance that site 
control will be obtained within six months of fund reservation 
notification.
    If your application contains evidence of site control where either 
the evidence or the site is not approvable, your application will not 
be rejected provided you indicate in your application that you are 
willing to seek an alternate site and provide an assurance that site 
control will be obtained within six months of fund reservation 
notification. During the selection process, all applications with 
acceptable evidence of site control for all proposed sites and all 
proposed sites that have been found approvable will be grouped in 
Category A. All applications that are submitted as ``site identified'' 
as well as those that are submitted with site control but the evidence 
of control and/or site(s) are not approvable (if the Sponsor indicates 
that it is willing to seek a different site if the proposed site is 
unapprovable) will be grouped in Category B. All applications in 
Category A will be selected before any applications are selected from 
Category B. See Section V.B.4. for further information on the selection 
process.
    (c) Historic Preservation. If you submit an application with 
evidence of site control, you are required to send a letter to the 
State/Tribal Historic Preservation Officer (SHPO/THPO) that attempts to 
initiate consultation with their office and requests their review of 
your determinations and findings with respect to the historical 
significance of your proposed project. A HUD's website at http://www.hud.gov/offices/adm/grants/fundsavail.cfm contains a sample letter 
to the SHPO/THPO that you may adapt for your use, if you so choose. You 
must include a copy of your letter to the SHPO/THPO in your 
application. You must then also include in your application either:
    (i) The response letter(s) from the SHPO/THPO, or
    (ii) A statement from you that you have not received a response 
letter(s) from the SHPO/THPO.
    (d) Contamination. HUD must determine if a proposed site contains 
contamination and, if so, HUD must be satisfied that it is eliminated 
to the extent necessary to meet non site-specific Federal, State or 
local health standards. If you submit an application with evidence of 
site control, you must assist HUD by doing the following:
    (i) Phase I Environmental Site Assessment (ESA)--You must submit a 
Phase I ESA, prepared in accordance with the ASTM Standards E 1527-05, 
as

[[Page 12036]]

amended, completed or updated no earlier than six months prior to the 
application deadline date, in order for the application to be 
considered as an application with site control. The Phase I ESA must be 
completed and included in your application. Therefore, it is important 
that you start the Phase I ESA process as soon after publication of the 
SuperNOFA as possible. To help you choose an environmentally safe site, 
HUD invites you to review the document ``Choosing An Environmentally 
Safe Site'' and ``Supplemental Guidance, Environmental Information'', 
which are available on HUD's website at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    (ii) Phase II ESA--If the Phase I ESA indicates the possible 
presence of contamination and/or hazards, you must decide whether to 
continue with this site or choose another site. Should you choose 
another site, the same Phase I ESA process identified above must be 
followed for the new site. However, if you choose to continue with the 
original site on which the Phase I ESA indicated contamination or 
hazards, you must undertake a detailed Phase II ESA by an appropriate 
professional. In order for your application to be considered as an 
application with site control, the Phase II must be received in the 
local HUD office on or before the deadline date of June 26, 2006.
    (iii) Clean-up--If the Phase II ESA reveals site contamination, the 
extent of the contamination and a plan for clean-up of the site must be 
submitted to the local HUD office. The plan for clean-up must include a 
contract for remediation of the problem(s) and an approval letter from 
the applicable federal, state, and/or local agency with jurisdiction 
over the site. In order for your application to be considered as an 
application with site control, this information must be received by the 
appropriate local HUD office on or before the application deadline date 
of June 26, 2006.


    Note: Clean-up could be an expensive undertaking. You must pay 
for the cost of any clean-up and/or remediation. If the application 
is approved, clean-up must be completed prior to initial closing. 
Completion of clean-up means that hud must be satisfied that the 
contamination has been eliminated to the extent necessary to meet 
non site-specific federal, state or local health standards, with no 
active or passive remediation still taking place, no capping over of 
any contamination, and no monitoring wells. however, it is 
acceptable if contamination remains solely in groundwater that is at 
least 25 feet below the surface.

    (e) Asbestos. asbestos is a hazardous substance commonly used in 
building products until the late 1970s. Therefore, if you submit an 
application with evidence of site control, you must submit one of the 
following with your application:
    (i) If there is no pre-1978 structure on the site, a statement to 
this effect, or
    (ii) If there is a pre-1978 structure on the site, an asbestos 
report which is based on a thorough inspection to identify the location 
and condition of asbestos throughout any structures. In those cases 
where suspect asbestos is found, it would either be assumed to be 
asbestos or would require confirmatory testing. If the asbestos report 
indicates the presence of asbestos or the presence of asbestos is 
assumed, and if the application is approved, HUD will condition the 
approval on an appropriate mix of asbestos abatement and an asbestos 
Operations and Maintenance Plan.
    (4) There must be a market need for the number of units proposed in 
the area of the project location.
    (5) Your application must contain a Supportive Services Plan and a 
Certification from the appropriate state or local agency that the 
Supportive Services Plan is well designed to address the individual 
health, mental health and other needs of persons with disabilities who 
will live in your proposed project. Exhibit 5 in Section IV.B. below 
outlines the information that must be in the Supportive Services Plan. 
You must submit one copy of your Supportive Services Plan to the 
appropriate State or local agency well in advance of the application 
submission deadline date for the state or local agency to review your 
Supportive Services Plan and complete the Supportive Services 
Certification and return it to you so that you can include it in the 
application you submit to HUD.
    (i) HUD will reject your application if the Supportive Services 
Certification:
    A Is not submitted with your application and is not submitted to 
HUD within the 14-day cure period; or
    B Indicates that the provision of supportive services is not well 
designed to address the individual health, mental health and other 
needs of persons with disabilities who will live in your project; or
    C Indicates that the provision of supportive services will not 
enhance independent living success or promote the dignity of the 
persons with disabilities who will live in your proposed project.
    (ii) In addition, if the agency completing the certification will 
be a major funding or referral source for your proposed project or be 
responsible for licensing the project, HUD will reject your application 
if either the agency's Supportive Services Certification indicates--or, 
where the agency fails to complete item 3 or 4 of the certification, 
HUD determines that:
    A You failed to demonstrate that supportive services will be 
available on a consistent, long-term basis; and/or
    B The proposed housing is not consistent with state or local agency 
plans/policies addressing the housing needs of people with 
disabilities.
    Any prospective resident of a Section 811 project who believes he/
she needs supportive services must be given the choice to be 
responsible for acquiring his/her own services or to take part in your 
Supportive Services Plan which must be designed to meet the individual 
needs of each resident.
    You must not require residents to accept any supportive services as 
a condition of occupancy or admission.
    (6) Delinquent Federal Debt. Refer to the General Section for 
information regarding delinquent federal debt.
    3. Program Requirements. By signing Form HUD-92016-CA, Supportive 
Housing for Persons with Disabilities Section 811, Application for 
Capital Advance Summary Information, you are certifying that you will 
comply with the program requirements listed in the General Section as 
well as the following requirements:
    a. Statutory and Regulatory Requirements. In addition to the 
statutory, regulatory, threshold and public policy requirements listed 
in the General Section, you must comply with all statutory and 
regulatory requirements listed in Sections I and III of this NOFA.
    b. Project Size Limits.
    (1) Independent living project. The minimum number of units for 
persons with disabilities that can be applied for in one application is 
five units for persons with disabilities. All of the units are not 
required to be in one structure and they may be on scattered sites. The 
maximum number of persons with disabilities that can be housed in an 
independent living project on one or adjacent sites is 14 plus one 
additional one-or two-bedroom unit for a resident manager, if 
necessary. If the proposed independent living project will be located 
on a site already containing housing for persons with disabilities or 
on an adjacent site containing such housing, the total number of 
persons with disabilities housed in both the existing and the proposed 
project cannot exceed 14.
    (2) Exception to project size limit for an independent living 
project. If you are submitting an application for an independent living 
project with site

[[Page 12037]]

control, you may request an exception to the above project size limit 
by providing the information required in Exhibit 4(d)(xii) of Section 
IV.B. below NOFA.
    (3) Group home. The minimum number of persons with disabilities 
that can reside in a group home is two, and the maximum number is six. 
There are no exceptions to the maximum project size limit for a group 
home. An additional one-bedroom unit can be provided for a resident 
manager. Only one person per bedroom is allowed, unless two residents 
choose to share one bedroom or a resident determines he/she needs 
another person to share his/her bedroom. If you are applying for more 
than one group home, they cannot be located on the same or adjacent 
sites.
    (4) Condominium Units. Condominium units are treated the same as 
units in an independent living project except that you cannot request 
an additional condominium unit for a resident manager.
    c. Minimum Capital Investment. If selected, you must provide a 
minimum capital investment of one-half of one percent of the HUD-
approved capital advance amount, not to exceed a maximum of $10,000 in 
accordance with 24 CFR 891.145.
    d. Accessibility. Your project must meet accessibility requirements 
published at 24 CFR 891.120, 24 CFR 891.310 and Section 504 of the 
Rehabilitation Act of 1973, and, if new construction, the design and 
construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100. In addition, 24 CFR 
8.4(b)(5) prohibits the selection of a site or location which has the 
purpose or effect of excluding persons with disabilities from the 
Federally assisted program or activity. Refer to Section V.A. below and 
the General Section for information regarding the policy priority of 
encouraging accessible design.
    e. Conducting Business in Accordance With Core Values and Ethical 
Standards. You are not subject to the requirements of 24 CFR parts 84 
and 85 as outlined in the General Section except for the disposition of 
real property, which may be subject to 24 CFR Part 84. However, you are 
still subject to the core values and ethical standards as they relate 
to the conflict of interest provisions in 24 CFR 891.130. To ensure 
compliance with the program's conflict of interest provisions, you are 
required to sign a Conflict of Interest Resolution and include it in 
your Section 811 application. Further, if awarded a Section 811 fund 
reservation, the officers, directors, board members, trustees, 
stockholders and authorized agents of the Section 811 Sponsor and Owner 
entities will be required to submit to HUD individual certifications 
regarding compliance with HUD's conflict of interest requirements.
    f. National Environmental Policy Act. You must comply with the 
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and 
applicable related environmental authorities at 24 CFR 50.4, HUD's 
programmatic implementing regulations at 24 CFR part 50 and 24 CFR 
891.155(b), especially, but not limited to, the provision of 
information to HUD at 24 CFR 50.31(b), and you must comply with any 
environmental ``conditions and safeguards'' at 24 CFR 50.3(c).
    Under 24 CFR Part 50, HUD has the responsibility for conducting the 
environmental reviews. HUD cannot approve any site for which you have 
site control unless it first completes the environmental review. In 
rare cases where HUD is not able to complete the environmental review, 
it is due to a complex environmental issue that could not be resolved 
during the time period allocated for application processing. Thus, if 
you submit an application with evidence of site control, HUD requires 
you to attempt to obtain comments from the State/Tribal Historic 
Preservation Officer (see Exhibit 4(d)(ix) of Section IV.B. below) to 
help HUD complete the environmental review on time. It is also why HUD 
may contact you for additional environmental information. So that you 
can review the type of information that HUD needs for its preparation 
of the environmental review as well as the type of information requests 
that HUD may make to you, you are invited to go to the following 
website to view the HUD form 4128, including the Sample Field Notes 
Checklist, which HUD uses to record the environmental review: http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/environment/compliance/forms/4128.pdf.
    g. Lead-Based Paint. You must comply with the requirements of the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and 
implementing regulations at 24 CFR part 35.
    h. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects. Refer to the 
General Section.
    i. Fair Housing Requirements. Refer to the General Section.
    j. Economic Opportunities for Low and Very Low-Income Persons 
(Section 3). You must comply with Section 3 of the Housing and Urban 
Development Act of 1968, U.S.C. 1701u (Economic Opportunities for Low 
and Very Low-Income Persons) and its implementing regulations at 24 CFR 
part 135. You must ensure that training, employment and other economic 
opportunities shall, to the greatest extent feasible, be directed 
toward low and very low-income persons, particularly those who are 
recipients of government assistance for housing and to business 
concerns which provide economic opportunities to low and very-low 
income persons. To comply with Section 3 requirements you are hereby 
certifying that you will strongly encourage your general contractor and 
subcontractors to participate in local apprenticeship programs or 
training programs registered or certified by the Department of Labor's 
Office of Apprenticeship, Training, Employer and Labor Services or 
recognized State Apprenticeship Agency. Although not a NOFA 
requirement, you are nonetheless encouraged to submit with your 
application a description on how you plan to incorporate the Section 3 
requirements into your proposed project with goals for expanding 
training and employment opportunities for low and very low-income 
(Section 3) residents as well as business concerns. You will receive up 
to two (2) points if you provide a description of your plans for doing 
so under Exhibit 3(m) of this program NOFA.
    k. Design and Cost Standards. You must comply with HUD's Section 
811 project design and cost standards (24 CFR 891.120 and 891.310), the 
Uniform Federal Accessibility Standards (24 CFR 40.7), Section 504 of 
the Rehabilitation Act of 1973 and HUD's implementing regulations at 24 
CFR part 8, and for covered multifamily dwellings designed and 
constructed for first occupancy after March 13, 1991, the design and 
construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100, and, where applicable, the 
Americans with Disabilities Act of 1990.
    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 not only to promote energy 
efficiency of the affordable housing stock, but also to help protect 
the environment. Although

[[Page 12038]]

it is not a requirement, you are nonetheless encouraged to promote 
energy efficiency in design and operations and your application will 
receive one (1) point if you describe your plans for doing so in the 
proposed project. You are especially urged to purchase and use Energy 
Star-labeled products. For further information about Energy Star, see 
http://www.energystar.gov or call 888-STAR-YES (1-888-782-7937) or for 
the hearing-impaired, 888-588-9920 TTY.
    l. Formation of Owner Corporation. You must form an ``Owner'' 
entity (in accordance with 24 CFR 891.305) after issuance of the 
capital advance fund reservation and must cause the Owner entity to 
file a request for determination of eligibility and a request for 
capital advance, and must provide sufficient resources to the Owner 
entity to ensure the development and long-term operation of the 
project, including capitalizing the Owner entity at firm commitment 
processing in an amount sufficient to meet its obligations in 
connection with the project over and above the capital advance amount.
    m. Davis-Bacon. You must comply with the Davis-Bacon Requirements 
(42 U.S.C. 8013(j)(6)) and the Contract Work Hours and Safety Standards 
Act in accordance with 24 CFR 891.155(d).

IV. Application and Submission Information

    A. Address to Request Application Package. All information required 
to complete and return a valid application is included in the General 
Section and this NOFA, including other related documents. Copies of the 
General Section, this NOFA, the required forms, and other related 
documents are available and may be downloaded from the Grants.gov Web 
site at http://www.Grants.gov. Search for the program using the CFDA 
Number, Competition ID OR Funding Opportunity Number.
    You may request general information, copies of the General Section 
and this NOFA (including related documents), and required forms from 
the NOFA Information Center (800-HUD-8929 or 800-HUD-2209 (TTY)) Monday 
through Friday, except on federal holidays. When requesting 
information, please refer to the name of the program you are interested 
in.
    B. Content and Form of Application Submission. The exhibits to be 
included in your application are contained in the body of this NOFA 
below. Before preparing your application, you should carefully review 
the requirements of the regulations (24 CFR Part 891) and general 
program instructions in Handbook 4571.2, Section 811 Capital Advance 
Program for Housing Persons with Disabilities. Note: Section 1001 of 
Title 18 of the United States Code (Criminal Code and Criminal 
Procedure, 72 Stat. 967) applies to all information supplied in the 
application submission. (18 U.S.C. 1001, among other things, provides 
that whoever knowingly and willfully makes or uses a document or 
writing containing any false, fictitious, fraudulent statement or 
entry, in any matter within the jurisdiction of any department or 
agency of the United States, shall be fined not more than $10,000 or 
imprisoned for not more than five years, or both.)
    The Application for a Section 811 Capital Advance consists of four 
parts with a total of eight Exhibits. Included with the eight Exhibits 
are prescribed forms, certifications and resolutions. The components of 
the Application are:
    Part 1--Application Form for Section 811 Supportive Housing--
Capital Advance (Exhibit 1).
    Part 2--Your Ability to Develop and Operate the Proposed Project 
(Exhibits 2 and 3).
    Part 3--The Need for Supportive Housing for the Target Population 
in the Area to be Served, Site Control and/or Identification of Site, 
Suitability of Site, Adequacy of the Provision of Supportive Services 
and of the Proposed Project (Exhibits 4 and 5).
    Part 4--General Application Requirements, Certifications and 
Resolutions (Exhibits 6 through 8).
    The following additional information, which may assist you in 
preparing your application, is available on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
     Listing of Local HUD Offices
     Letter Requesting SHPO/THPO Review
     Choosing an Environmental Safe Site
     Supplemental to Choosing An Environmentally Safe Site
    Your application must include all of the information, materials, 
forms, and exhibits listed below (unless you were selected for a 
Section 811 fund reservation within the last three funding cycles). If 
you qualify for this exception, you are not required to submit the 
information described in Exhibit 2(a), (b), and (c), which are the 
articles of incorporation (or other organizational documents), by-laws, 
and the IRS tax exemption, respectively. If there has been a change in 
any of these documents since your previous HUD approval, you must 
submit the updated information in your application. The local HUD 
office will verify your previous HUD approval by checking the project 
number and approval status with the appropriate local HUD office based 
on information submitted.
    In addition to this relief of paperwork burden in preparing 
applications, you are able to use information and exhibits previously 
prepared for prior applications under Section 811, Section 202, or 
other funding programs. Examples of exhibits that may be readily 
adapted or amended to decrease the burden of application preparation 
include, among others, those on previous participation in the Section 
202 or Section 811 programs, your experience in the provision of 
housing and services, supportive services plans, community ties, and 
experience serving minorities.
    For programmatic information, you MUST contact the appropriate 
local HUD office about the submission of applications within the 
jurisdiction of that Office. A listing of the local HUD offices is 
available on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    Please submit your application using the following format provided 
in this NOFA. You are strongly encouraged to submit your application 
electronically via Grants.gov as it is a goal of the Department to 
increase the number of successfully submitted electronic applications 
for FY 2006. For applications to be submitted electronically, in which 
you have created files to be attached to the electronic application, 
you should number the pages of the attached file and include a header 
that identifies the exhibit that it relates to. For applicants that 
received a waiver of the electronic application submission requirement, 
you must number the pages of each file, narratives and other attached 
files. Include the name of your organization and your DUNS number, and 
the exhibit number that you are responding to on the header of each 
document.
    1. Table of Contents (This is also to be used as a checklist to 
assist you in submitting a complete application. For applicants who 
received a waiver of the electronic application submission, after your 
application is complete, you must insert the page number after each 
Exhibit or portion of the Exhibit item listed below.)
a. Part I--Application Form for Section 811 Supportive Housing--Capital 
Advance
    (1) Exhibit 1: Form HUD-92016-CA, Supportive Housing for Persons 
with Disabilities Section 811, Application for Capital Advance Summary 
Information.

[[Page 12039]]

b. Part II--Your Ability to Develop and Operate the Proposed Project
    (1) Exhibit 2: Your Legal Status:

(a) Articles of Incorporation (or other organizational documents)
(b) By-laws
(c) IRS Tax Exemption Ruling

[Exception: See Exhibit to determine if you may be exempt from 
submitting these documents.]

(d) The number of people on your board and the number of board members 
who have disabilities
    (2) Exhibit 3: Your purpose, community ties, and experience:
(a) Purpose(s), current activities, how long you have been in existence
(b) Ties to the community at large, to the target population, and 
description of geographic areas served
(c) Local government support for project
(d) Letters of support for your organization and for the proposed 
project
(e) Housing and/or supportive services experience
(f) Efforts to involve target population
(g) Description of practical solutions to be implemented
(h) Project Development Timeline
(i) Description of how project will remain viable including:
(i) If service funds are depleted
(ii) For State-funded services, if State changes policy
(iii) If the need for project changes
(j) Identification/coordination with other organizations
(k) Description of consultation with Continuum of Care organizations
(l) Description of efforts to remove barriers to affordable housing
(m) Description of your plans to incorporate Section 3 requirements, 
Economic Opportunities for Low and Very-Low Income Persons, in proposed 
project (optional, but required to receive up to 2 points)
c. Part III--The Need for Supportive Housing for the Target Population 
in the Area To Be Served, Site Control and/or Identification of Site 
and Suitability of Site, Adequacy of the Provision of Supportive 
Services and of the Proposed Project
    (1) Exhibit 4: Project information including:

(a) Evidence of need for project
(b) How project will benefit target population and community
(c) A narrative description of the project, including:
(i) Building design
(ii) Whether and how project will promote energy efficiency
(iii) If applicable, description of plans and actions to create a 
mixed-finance project for additional units and the number of additional 
units
Evidence of Site Control
(d) Evidence of site control and permissive zoning (If you do not have 
site control, skip to (e), Identification of a Site, below):
(i) Site control document(s)
(ii) Evidence site is free of limitations, restrictions, or reverters
(iii) Evidence of permissive zoning or statement of proposed action 
required to make project permissible
(iv) Evidence of compliance with the Uniform Relocation Assistance and 
Real Property Acquisition Policies Act of 1970, as amended (URA) site 
notification requirement
(v) Narrative topographical/demographic description of site/area 
suitability, how site will promote greater housing opportunities for 
minorities/target population
(vi) Racial composition/concentration map of site
(vii) Phase I Environmental Site Assessment
(viii) Asbestos Statement or Report
(ix) Letter to State/Tribal Historic Preservation Officer (SHPO/THPO) 
and a statement that SHPO/THPO failed to respond to you OR a copy of 
the response letter received from SHPO/THPO
(x) Willingness to seek an alternate site
(xi) Request for exception to project size limits (if applicable)--why 
site was selected and (ILP with site control only):
(A) Preference/acceptance of people with disabilities to live in 
proposed housing
(B) Increased number of people warranted by market conditions in area
(C) Compatibility of project with other residential development and 
population density of the area
(D) Increased number of people will not prohibit successful integration 
into the community
(E) Marketability of project in the community
(F) Project size consistent with State and/or local policies governing 
similar housing
(G) Willingness to have application processed at project size limit
(e) Identification of a Site:
(i) Location of site
(ii) Steps undertaken to identify site; what must be done to obtain 
site control
(iii) Whether site is properly zoned
(iv) Status of the sale of the site
(v) Whether the site would involve relocation

    (2) Exhibit 5: Supportive Services Plan:

(a) Description of occupancy
(b) Request for approval to limit occupancy, if applicable, including:
(i) Description of population to which occupancy will be limited
(ii) Why it is necessary to limit occupancy, including:
(A) How Section 811 program goals will still be achieved
(B) Why housing and services needs cannot be met in a more integrated 
setting
(iii) Experience in providing housing and/or supportive services to 
proposed population
(iv) How you will ensure occupants will be integrated into neighborhood 
and community
(c) Supportive services needs of proposed population
(d) List of community service providers with letters of intent
(e) Evidence of each service provider's capability and experience
(f) Extent of State and local agency involvement in project
(g) Letter indicating your commitment to make services available or 
coordinate their availability
(h) How residents will be afforded employment opportunities
(i) Whether project will include manager's unit
(j) Statement that you will not condition occupancy on the resident's 
acceptance of supportive services
d. Part IV--General Application Requirements, Certifications and 
Resolutions
    (1) Exhibit 6: Other Applications
    (a) A list of applications, if any, you are submitting to any other 
local HUD Office in response to the FY 2006 Section 202 or Section 811 
NOFA, and required information about each.
    (b) A list of all FY 2005 and prior year Section 202 or Section 811 
projects to which you are a party and the required information about 
each.
    (2) Exhibit 7: Applies to applications with site control only a 
statement that:

(a) Identifies all persons occupying property on application submission 
date
(b) Indicates estimated cost of relocation payments/other services
(c) Identifies staff organization that will carry out relocation 
activities
(d) Identifies all persons who have moved from site within past 12 
months

    (3) Exhibit 8: Standard Forms, Certifications and Resolutions:

(a) Standard Form 424, Application for Federal Assistance with a copy 
of the letter you sent to the State Point of Contact, if applicable

[[Page 12040]]

(b) Standard Form 424 Supplement, Survey on Ensuring Equal Opportunity 
for Applicants
(c) Standard Form LLL, Disclosure of Lobbying Activities, if applicable
(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report
(e) Form HUD-2991, Certification of Consistency with the Consolidated 
Plan
(f) Form HUD-92041, Sponsor's Conflict of Interest Resolution
(g) Form HUD-92042, Sponsor's Resolution for Commitment to Project
(h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC-II 
Strategic Plan, as applicable
(i) Form HUD-92043, Certification for Provision of Supportive Services
(j) Form HUD-96010, Program Outcome Logic Model
(k) Form HUD-27300, Questionnaire for HUD's Initiative on Removal of 
Regulatory Barriers, including any required documentation or URL 
references (optional form, but required in order to receive up to 2 
policy priority points)
(l) Form HUD-96011, Facsimile Transmittal, must be used as the cover 
page for any facsimile submitted using the facsimile solution. See the 
General Section for instructions
(m) HUD-2994-A, You Are Our Client Survey (optional)

2. Programmatic Applications Requirements

a. Part I--Application Form for Section 811 Supportive Housing--Capital 
Advance
    (1) Exhibit 1--Form HUD-92016-CA, Supportive Housing for Persons 
with Disabilities Section 811 Application for Capital Advance Summary 
Information. Found in the instruction download at http://
www.grants.gov.
b. Part II--Your Ability To Develop and Operate the Proposed Project
    (1) Exhibit 2--Evidence of your legal status (Nonprofit with 
501(c)(3) IRS tax exemption) (If another organization(s) is co-
sponsoring the application with you, each Co-Sponsor must also submit 
the following):

(a) Articles of Incorporation, constitution, or other organizational 
documents
(b) By-laws
(c) IRS tax exemption ruling (this must be submitted by all Sponsors, 
including churches)


    Note: Based on a HUD review of your articles of incorporation, 
constitution, or other organizational documents, HUD must determine, 
among other things, that (1) you are an eligible nonprofit entity 
with a 501(c)(3) IRS tax exemption status, (2) your corporate 
purposes are sufficiently broad to provide you the legal authority 
to sponsor the proposed project for the disabled, to assist the 
Owner, and to apply for a capital advance, (3) no part of the 
Sponsor's net earnings inures to the benefit of any private party, 
and (4) that you are not controlled by or under the direction of 
persons seeking to derive profit or gain there from. [Exception: If 
you received a Section 811 Fund Reservation within the last three 
funding cycles, you are not required to submit the documents 
described in (a), (b), and (c) above. Instead, submit the project 
number of the latest application and the local HUD office to which 
it was submitted. If there have been any modifications or additions 
to the subject documents, indicate such, and submit the new 
material.]

    (d) The number of people on your board and the number of board 
members who have disabilities.
    (2) Exhibit 3--Your purpose, community ties, and experience:
    (a) A description of your purpose(s), current activities, including 
your ability to enlist volunteers and raise private local funds and how 
long you have been in existence.
    (b) A description of your ties to the community in which your 
project will be located and to the minority and disability communities 
in particular, including a description of the specific geographic 
area(s) in which you have served.
    (c) A description of local government support for the project 
(including financial assistance, donation of land, provision of 
services, etc.).
    (d) Letters of support for your organization and for the proposed 
project from organizations familiar with the housing and supportive 
services needs of the target population (e.g., the local center for 
independent living, the Statewide Independent Living Council) that you 
expect to serve in the proposed project.
    (e) A description of your housing and/or supportive services 
experience. The description should include any rental housing projects 
(including any integrated housing developments) and/or supportive 
services facilities that you sponsored, own and/or operate, your past 
or current involvement in any programs other than housing that 
demonstrates your management capabilities (including financial 
management) and experience, your experience in serving the target 
population (persons with disabilities and minorities); and the reasons 
for receiving any increases in fund reservations for developing and/or 
operating previously funded Section 202 or Section 811 projects. The 
description should include data on the facilities and services 
provided, the racial/ethnic composition of the populations served, if 
available, and information and testimonials from residents or community 
leaders on the quality of the activities. Examples of activities that 
could be described include housing counseling, nutrition and food 
services, special housing referral, screening and information projects.
    (f) A description of your efforts to involve members of the target 
population (persons with disabilities including minority persons with 
disabilities and persons with disabilities similar to those of the 
prospective residents) in the development of the application as well as 
your intent to involve the target population in the development and 
operation of the project.
    (g) A description of the practical solutions you will implement 
which will enable residents of your project to achieve independent 
living and economic empowerment. In addition, describe the educational 
opportunities you will provide for the residents and how you will 
provide them. This description should include the activities you will 
undertake to improve computer access, literacy and employment 
opportunities (e.g., provide programs that can teach residents how to 
use computers to become educated as well as achieve economic self-
sufficiency through job training and placement). And, finally, describe 
how your proposed project will be an improved living environment for 
the residents when compared to their previous place of residence.
    (h) Describe your plan for completing the proposed project. Include 
a project development timeline which lists the major development stages 
for the project with associated dates that must be met in order to get 
the project to initial closing and start of construction within the 18-
month fund reservation period as well as the full completion of the 
project, including final closing. Completion of Exhibit 8(j), Logic 
Model, will assist you in completing your response to this Exhibit.
    (i) Describe how you will ensure that your proposed project will 
remain viable as housing with the availability of supportive services 
for the target population for the 40-year capital advance period. This 
description should address the measures you would take should any of 
the following occur:
    (i) Funding for any of the needed supportive services becomes 
depleted;
    (ii) If, for any state-funded services for your project, the state 
changes its policy regarding the provision of supportive

[[Page 12041]]

services to projects such as the one you propose; or
    (iii) If the need for housing for the population you will be 
serving wanes over time, causing vacancies in your project.
    (j) A description of the steps you took to coordinate your 
application with other organizations (e.g., the local center for 
independent living) that will not be directly involved in your project 
but with which you share common goals and objectives, to complement 
and/or support the proposed project so that the project will provide a 
comprehensive and holistic solution to the needs of persons with 
disabilities.
    (k) A description of your efforts to consult with Continuum of Care 
organizations in the community where the project will be located about 
the ways you can assist persons with disabilities who are chronically 
homeless as defined in the General Section.
    (l) A description of the successful efforts the jurisdiction in 
which your project will be located has taken in removing regulatory 
barriers to affordable housing. To obtain up to 2 points for this 
policy priority, you must complete the optional Form HUD-27300, 
``Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers'' in Exhibit 8(k) of the application AND provide the necessary 
URL references or submit the documentary evidence.
    (m) A description on how you plan to incorporate the Section 3 
requirements into your proposed project with goals for expanding 
training and employment opportunities for low and very low-income 
(Section 3) persons as well as business concerns. This exhibit is 
optional, but to obtain up to 2 points for this policy priority, you 
must submit this exhibit and adequately address your plans to provide 
opportunities to train and employ low and very low-income residents of 
the project area and award substantial contracts to persons residing in 
the project area.
c. Part III--The Need for Supportive Housing for the Target Population, 
Site Control and/or Identification of Site and Suitability of Site, 
Adequacy of the Provision of Supportive Services and of the Proposed 
Project
    (1) Exhibit 4--Need and Project Information:
    (a) Evidence of need for supportive housing. Include a description 
of the proposed population and evidence demonstrating sustained 
effective demand for supportive housing for the proposed population in 
the market area to be served, taking into consideration the occupancy 
and vacancy conditions in existing comparable subsidized housing for 
persons with disabilities, state or local needs assessments of persons 
with disabilities in the area, the types of supportive services 
arrangements currently available in the area, and the use of such 
services as evidenced by data from local social service agencies. Also, 
a description of how information in the community's or (where 
applicable) the State's Consolidated Plan, Analysis of Impediments to 
Fair Housing Choice (AI) or other planning document that analyzes fair 
housing issues was used in documenting the need for the project.
    (b) A description of how the proposed project will benefit the 
target population and the community in which it will be located.
    (c) Description of the project.
    (i) Narrative description of the building(s) including the number 
and type of structure(s), number of units with bedroom distribution if 
independent living units including dwelling units in multifamily 
housing developments, condominiums and cooperatives, number of bedrooms 
if group home, number of residents with disabilities, and any resident 
manager per structure; identification of all commercial and community 
spaces, amenities or features planned for the housing and a description 
of how the spaces, amenities, or features will be used, and the extent 
to which they are necessary to accommodate the needs of the proposed 
residents. A narrative description of the building design (both 
interior and exterior), including any special design features, as well 
as any features that incorporate visitability standards and universal 
design. Also include a description of how the design of the proposed 
project will facilitate the integration of the residents into the 
surrounding community and promote the ability of the residents to live 
as independently as possible.


    Note: If the community spaces, amenities, or features do not 
comply with the project design and cost standards of 24 CFR 891.120 
(a) and (c), the special project standards of 24 CFR 891.310 (a), 
and the limitations on bedroom sizes as required by paragraph 1-
11.E.2.a of HUD Handbook 4571.2 REV-1, you must demonstrate your 
ability and willingness to contribute both the incremental 
development cost and continuing operating cost associated with the 
community spaces, amenities, or features.


    (ii) Describe whether and how the project will promote energy 
efficiency (in accordance with the requirements set forth in Section 
III.C.3.k. of this NOFA), including any plans to incorporate energy 
efficiency features in the operation of the project through the use of 
Energy Star labeled products and appliances and, if applicable, 
innovative construction or rehabilitation methods or technologies to be 
used that will promote efficient construction.
    (iii) For site control applications, if you are proposing to 
develop a mixed-finance project by developing additional units (i.e., 
in addition to the 811 units), a description of any plans and actions 
you have taken to create such a mixed-finance project with the use of 
Section 811 capital advance funds, in combination with other funding 
sources. Provide the number of non-Section 811 units to be included in 
the mixed-finance project (also provide the number of additional units 
in the appropriate space on Form HUD-92016-CA). Also, provide copies of 
any letters you have sent seeking outside funding for the non-Section 
811 units and any responses thereto. You must also demonstrate your 
ability to proceed with the development of a Section 811 project that 
will not involve mixed-financing, as proposed in your application, in 
the event you are later unable to obtain the necessary outside funding 
or HUD disapproves your proposal for a mixed-finance project for 
additional non-Section 811 units for persons with disabilities.


    Notes: (1) A proposal to develop a mixed-finance project for 
additional units must occur at the application for fund reservation 
stage. You cannot decide after selection that you want to do a 
mixed-finance project for additional units. (2) Section 811 capital 
advance amendment money will not be approved for projects proposing 
mixed-financing. (3) If approved for a reservation of capital 
advance funds, you will be required to submit with your Firm 
Commitment Application, the additional documents required by HUD for 
mixed-finance proposals. (4) A mixed-finance project does not 
include the development of a mixed-use project in which the Section 
811 units are mortgaged separately from the other uses of the 
structure. (5) For a Section 811 mixed-finance project, the 
additional units cannot cause the project to exceed the project size 
limit for the type of project proposed, unless you request and 
receive HUD approval to exceed the project size limit if the project 
will be an independent living project (See IV.B.2.c.(1)(d)(xii)) or 
the additional units will house people who do not have a disability.


    (d) Evidence of site control and permissive zoning.

    Note: If you are applying for Section 811 funding without 
control of any or all of your proposed sites, you must provide the 
information under (e), Identification of a Site, below for any site 
you are submitting without evidence of control of that site.



[[Page 12042]]


    (i) Acceptable evidence of site control is limited to any one of 
the following:
    (A) Deed or long-term leasehold which evidences that you have title 
to or a leasehold interest in the site. If a leasehold, the term of the 
lease must be 50 years with renewable provisions for 25 years except 
for sites on Indian trust land, in which case, the term of the lease 
must be at least 50 years with no requirements for extensions;
    (B) Contract of sale for the site that is free of any limitations 
affecting the ability of the seller to deliver ownership to you after 
you receive and accept a notice of Section 811 capital advance. (The 
only condition for closing on the sale can be your receipt and 
acceptance of the capital advance.) The contract of sale cannot require 
closing earlier than the Section 811 closing;
    (C) Option to purchase or for a long-term leasehold, which must 
remain in effect for six months from the date on which the applications 
are due, must state a firm price binding on the seller, and be 
renewable at the end of the six-month period. The only condition on 
which the option may be terminated is if you are not awarded a fund 
reservation;
    (D) If the site is covered by a mortgage under a HUD program, 
(e.g., a previously funded Section 202 or Section 811 project or an 
FHA-insured mortgage) you must submit evidence of site control as 
described above AND evidence that consent to release the site from the 
mortgage has been obtained or has been requested from HUD (all required 
information in order for a decision on the request for a partial 
release of security must have been submitted to the local HUD office) 
and from the mortgagee, if other than HUD Approval to release the site 
from the mortgage must be done before the local HUD office makes its 
selection recommendations to HUD Headquarters. Refer to Chapter 16 of 
HUD Handbook 4350.1 Rev-1, Multifamily Asset Management and Project 
Servicing, for instructions on submitting requests to the local HUD 
Office for partial release of security from a mortgage under a HUD 
program; or
    (E) For sites to be acquired from a public body, evidence is needed 
that the public body possesses clear title to the site and has entered 
into a legally binding agreement to lease or convey the site to you 
after you receive and accept a notice of Section 811 capital advance. 
Where HUD determines that time constraints of the funding round will 
not permit you to obtain all of the required official actions (e.g., 
approval of Community of Planning Boards) that are necessary to convey 
publicly-owned sites, you may include in your application a letter from 
the mayor or director of the appropriate local agency indicating that 
conveyance or leasing of the site is acceptable without imposition of 
additional covenants or restrictions, and only contingent on the 
necessary approval action. Such a letter of commitment will be 
considered sufficient evidence of site control.
    (ii) Whether you have title to the site, a contract of sale, an 
option to purchase, or are acquiring a site from a public body, you 
must provide evidence (a current title policy or other acceptable 
evidence) that the site is free of any limitations, restrictions, or 
reverters which could adversely affect the use of the site for the 
proposed project for the 40-year capital advance period under HUD's 
regulations and requirements (e.g., reversion to seller if title is 
transferred). If the title evidence contains restrictions or covenants, 
copies of the restrictions or covenants must be submitted with the 
application. If the site is subject to any such limitations, 
restrictions, or reverters, the site will be rejected and the 
application will be considered a ``site identified'' application. 
Purchase money mortgages that will be satisfied from capital advance 
funds are not considered to be limitations or restrictions that would 
adversely affect the use of the site. If the contract of sale or option 
agreement contains provisions that allow a Sponsor not to purchase the 
property for reasons such as environmental problems, failure of the 
site to pass inspection, or the appraisal is less than the purchase 
price, then such provisions are not objectionable and a Sponsor is 
allowed to terminate the contract of sale or the option agreement.


    Note: A proposed project site may not be acquired or optioned 
from a general contractor (or its affiliate) that will construct the 
Section 811 project or from any other development team member.


    (iii) Evidence that the project, as proposed, is permissible under 
applicable zoning ordinances or regulations, or a statement of the 
proposed action required to make the proposed project permissible AND 
the basis for the belief that the proposed action will be completed 
successfully before the submission of the firm commitment application 
(e.g., a summary of the results of any requests for rezoning and/or the 
procedures for obtaining special or conditional use permits on land in 
similar zoning classifications and the time required for such rezoning, 
or preliminary indications of acceptability from zoning bodies, etc.).


    Note: You should be aware that under certain circumstances the 
Fair Housing Act requires localities to make reasonable 
accommodations to their zoning ordinances or regulations to offer 
persons with disabilities an opportunity to live in an area of their 
choice. If you are relying upon a theory of reasonable accommodation 
to satisfy the zoning requirement, then you must clearly articulate 
the basis for your reasonable accommodation theory.


    (iv) Evidence of compliance with the URA requirement that the 
seller has been provided, in writing, with the required information 
regarding a voluntary, arm's length purchase transaction (i.e., (1) 
applicant does not have the power of eminent domain and, therefore, 
will not acquire the property if negotiations fail to result in an 
amicable agreement, and (2) of the estimate of the fair market value of 
the property).


    Note: This information should have been provided before making 
the purchase offer. However, in those cases where there is an 
existing option or contract, the seller must be provided the 
opportunity to withdraw from the agreement or transaction, without 
penalty, after this information is provided.


    (v) Narrative describing topographical and demographic aspects of 
the site, the suitability of the site and area (as well as a 
description of the characteristics of the neighborhood), how use of the 
site will promote greater housing opportunities for minority persons 
with disabilities, and how use of the site will affirmatively further 
fair housing.


    Note: You can best demonstrate your commitment to affirmatively 
furthering fair housing by describing how your proposed activities 
will assist the jurisdiction in overcoming impediments to fair 
housing choice identified in the applicable jurisdiction's Analysis 
of Impediments (AI) to Fair Housing Choice, which is a component of 
the jurisdiction's Consolidated Plan or any other planning document 
that addresses fair housing issues. The applicable Consolidated Plan 
and AI may be the community's, the county's, or the state's, to 
which input should have been provided by local community 
organizations, agencies in the community and residents of the 
community. Alternatively, a document that addresses fair housing 
issues and remedies to barriers to fair housing in the community 
that was previously prepared by a local planning, or similar 
organization, may be used. Applicable impediments could include a 
lack of units that are accessible to persons with disabilities, a 
lack of transportation services or other assistance that would serve 
persons with disabilities, or the need for improved quality and 
services for all persons with disabilities.


    (vi) A map showing the location of the site, the racial composition 
of the neighborhood, and any areas of racial concentration.


[[Page 12043]]


    Note: For this competition, when determining the racial and 
ethnic composition of the neighborhood surrounding the proposed 
site, use data from the 2000 Census of Population. Data from the 
2000 Census may be found at http://www.factfinder.census.gov/servlet/BasicFactsServlet.


    (vii) A Phase I Environmental Site Assessment (ESA), in accordance 
with the ASTM Standards E 1527-05, as amended, must be completed and 
submitted with the application. In order for the Phase I ESA to be 
acceptable, it must have been completed or updated no earlier than six 
months prior to the application deadline date. Therefore, it is 
important to start the site assessment process as soon after the 
publication of the NOFA as possible.
    If the Phase I ESA indicates possible presence of contamination 
and/or hazards, you must decide whether to continue with this site or 
choose another site. Should you choose another site, the same Phase I 
ESA process identified above must be followed for the new site. If the 
property is to be acquired from the FDIC/RTC, include a copy of the 
FDIC/RTC prepared Transaction Screen Checklist or Phase I ESA and 
applicable documentation, per the FDIC/RTC Environmental Guidelines. If 
you choose to continue with the original site on which the Phase I ESA 
indicated contamination or hazards, you must undertake a detailed Phase 
II ESA by an appropriate professional. If the Phase II Assessment 
reveals site contamination, you must submit the extent of the 
contamination and a plan for clean-up of the site including a contract 
for remediation of the problem(s) and an approval letter from the 
applicable federal, state and/or local agency with jurisdiction over 
the site to the local HUD office. The Phase II ESA and any necessary 
plans for clean-up do not have to be submitted with the application but 
must be received in the local HUD office by June 26, 2006. If it is not 
received by that date, the site will be rejected and the application 
will be placed in Category B for selection purposes.


    Note: You must pay for the cost of any clean-up or remediation 
which can be very expensive. [See NOTE at Section III.C.2.ciii.]


    (viii) If you submit an application with evidence of site control, 
you must submit one of the following:
    (A) If there is no pre-1978 structure on the site, a statement to 
this effect, or
    (B) If there is a pre-1978 structure on the site, an asbestos 
report which is based on a thorough inspection to identify the location 
and condition of asbestos throughout any structures.


    Note:  In those cases where suspect asbestos is found, it would 
either be assumed to be asbestos or would require confirmatory 
testing. If the asbestos report indicates the presence of asbestos, 
or the presence of asbestos is assumed, and if the application is 
approved, HUD will condition the approval on an appropriate mix of 
asbestos abatement and an asbestos Operations and Maintenance Plan.


    (ix) The letter you sent to the State/Tribal Historic Preservation 
Officer (SHPO/THPO) initiating consultation with their office and 
requesting their review of your determinations and findings with 
respect to the historical significance of your proposed project. A 
sample letter that you may adapt and send to the SHPO/THPO can be found 
on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm under the Section 811 Supportive Housing for Persons 
with Disabilities Program.
    (x) The SHPO/THPO response to your letter or a statement that you 
have not received a response letter from the SHPO/THPO.
    (xi) A statement that you are willing to seek a different site if 
the preferred site is unapprovable and that site control will be 
obtained within six months of notification of fund reservation.
    (xii) If an exception to the project size limits is being 
requested, describe why the site was selected and demonstrate the 
following: (Only for applications for independent living projects and 
condominium units [not group homes] with site control)
    (A) People with disabilities have indicated their acceptance or 
preference to live in housing with as many units/people as proposed for 
the project.
    (B) The increased number of units/people is warranted by the market 
conditions in the area in which the project will be located.
    (C) Your project is compatible with other residential development 
and the population density of the area in which the project is to be 
located.
    (D) The increased number of people will not prohibit their 
successful integration into the community.
    (E) The project is marketable in the community.
    (F) The size of the project is consistent with state and/or local 
policies governing similar housing for the proposed population.
    (G) A statement that you are willing to have your application 
processed at the project size limit should HUD not approve the 
exception.
    (e) Identification of a Site. If you have identified a site, but do 
not have it under control, you must submit the following information:


    Note: If an application is submitted without evidence of site 
control and does not provide a specific street address for the 
identified site(s) (e.g., only an indication that the project will 
be developed in a particular part of town but a site(s) has not been 
chosen) the application will be rejected.


    (i) A description of the location of the site, including its street 
address or block and lot number(s), its unit number (if condominium), 
neighborhood/community characteristics (to include racial and ethnic 
data), amenities, adjacent housing and/or facilities, how the site will 
promote greater housing opportunities for minority persons with 
disabilities and affirmatively further fair housing. You can best 
demonstrate your commitment to affirmatively furthering fair housing by 
describing how your proposed activities will assist the jurisdiction in 
overcoming impediments to fair housing choice identified in the 
community's AI or any other planning document that addresses fair 
housing issues. Examples of the applicable impediments include the need 
for improved housing quality and services for minority persons with 
disabilities and the need for quality services for persons with 
disabilities within the type and quality of similar services and 
housing in minority areas.
    (ii) A description of the activities undertaken to identify the 
site, as well as what actions must be taken to obtain control of the 
site, if approved for funding.
    (iii) An indication as to whether the site is properly zoned. If it 
is not, an indication of the actions necessary for proper zoning and 
whether these can be accomplished within six months of fund reservation 
award, if approved for funding.
    (iv) A status of the sale of the site.
    (v) An indication as to whether the site would involve relocation.
    (2) Exhibit 5--Supportive Services Plan:


    Note: Your supportive services plan and the Supportive Services 
Certification (Exhibit 8(k)) must be sent to the appropriate state 
or local agency (identified by the local HUD office) far enough in 
advance of the application deadline date so that the agency can 
review the plan, complete the certification and return both to you 
for inclusion in your application to HUD.


    (a) A detailed description of whether the housing is expected to 
serve persons with physical disabilities, developmental disabilities, 
or chronic mental illness or any combination of the three. Include how 
and from whom/where persons will be referred and admitted for occupancy 
in the project. You may, with the approval of the

[[Page 12044]]

Secretary, restrict occupancy within housing developed under this NOFA 
to a subcategory of one of the three main categories of disability 
noted above (e.g., AIDS is a subcategory of physical disability). 
However, the Owner must permit occupancy by any qualified person with a 
disability that qualifies under the applicable main category of 
disability.
    (b) If requesting approval to restrict occupancy, also submit the 
following:
    (i) A description of the population of persons with disabilities to 
which occupancy will be limited.
    (ii) An explanation of why it is necessary to restrict occupancy of 
the proposed project(s) to the population described in (i) above, 
including the following:
    (A) An explanation of how restricting occupancy to a subcategory of 
persons with disabilities promotes the goals of the Section 811 
program.
    (B) An explanation of why the housing and/or service needs of this 
population cannot be met in a more integrated setting.
    (iii) A description of your experience in providing housing and/or 
supportive services to proposed occupants.
    (iv) A description of how you will ensure that occupants of the 
proposed project will be integrated into the neighborhood and 
community.
    (c) A detailed description of the supportive service needs of the 
persons with disabilities that the housing is expected to serve.
    (d) A list of community service providers, (including consumer-
controlled providers), including letters of intent to provide services 
to proposed residents from as many potential providers as possible.
    (e) The evidence of each service provider's capability and 
experience in providing such supportive services (even if you will be 
the service provider).
    (f) Identification of the extent of state and/or local agency 
involvement in the project (i.e., funding for the provision of 
supportive services, referral of residents, or licensing the project). 
If there will be any state or local agency involvement, a description 
of the state/local agency's philosophy/policy concerning housing for 
the population to be served and a demonstration that your application 
is consistent with state and/or local agency plans and policies 
governing the development and operation of housing for persons with 
disabilities.
    (g) If you will be making any supportive services available to the 
residents or will be coordinating the availability of any supportive 
services, a letter providing:
    (i) A description of the supportive services that you will make 
available to the residents or, if you will be coordinating the 
availability of any supportive services, a description of the 
supportive service(s) and how the coordination will be implemented;
    (ii) An assurance that any supportive services that you will make 
available to the residents will be based on their individual needs; and
    (iii) A commitment to make the supportive services available or 
coordinate their availability for the life of the project.
    (h) A description of how the residents will be afforded 
opportunities for employment.
    (i) An indication as to whether the project will include a unit for 
a resident manager.
    (j) A statement that you will not condition admission or occupancy 
on the resident's acceptance of any supportive services.
d. Part IV--General Application Requirements, Certifications and 
Resolutions
    (1) Exhibit 6: Other Applications:
    (a) A list of the applications, if any, you are submitting to any 
other local HUD office in response to the FY 2006 Section 202 or 
Section 811 NOFA. Indicate by local HUD office, the proposed location 
by city and state and the number of units requested for each 
application.
    (b) Include a list of all FY2005 and prior year Section 202 and 
Section 811 capital advance projects to which you are a party. Identify 
each by project number and local HUD office and include the following 
information:
    (1) Whether the project has initially closed and, if so, when;
    (2) If the project was older than 24 months when it initially 
closed (specify how old) or if older than 24 months now (specify how 
old) and has not initially closed, provide the reasons for the delay in 
closing;
    (3) Whether amendment money was or will be needed for any project 
in (2) above; and,
    (4) Those projects which have not been finally closed.
    (2) Exhibit 7: A statement that: (applicable to applications with 
site control only)
    (a) Identifies all persons (families, individuals, businesses and 
nonprofit organizations) by race/minority group, and status as owners 
or tenants occupying the property on the date of submission of the 
application for a capital advance.
    (b) Indicates the estimated cost of relocation payments and other 
services.
    (c) Identifies the staff organization that will carry out the 
relocation activities.
    (d) Identifies all persons that have moved from the site within the 
past 12 months.


    Note: If any of the relocation costs will be funded from sources 
other than the Section 811 capital advance, you must provide 
evidence of a firm commitment of these funds. When evaluating 
applications, HUD will consider the total cost of proposals (i.e., 
cost of site acquisition, relocation, construction and other project 
costs).


    (3) Exhibit 8: Certifications and Resolutions--You are required to 
submit completed copies of the following forms which are included 
either in the General Section or with this NOFA and copies of the forms 
are available on http://www.hud.gov/offices/adm/grants/fundsavail.cfm:
    (a) Standard Form 424--Application for Federal Assistance, 
including a DUNS number, an indication of whether you are delinquent on 
any federal debt, and compliance with Executive Order 12372 (a 
certification that you have submitted a copy of your application, if 
required, to the State agency (Single Point of Contact) for state 
review in accordance with Executive Order 12372). If required by the 
State's Single Point of Contact (SPOC), a copy of your application 
needs to be submitted to the SPOC before the application deadline date, 
but in no event later than the application deadline date. Refer to the 
General Section and Section IV.D. of this program NOFA to find out if 
your State has a SPOC and additional information on compliance with 
Executive Order 12372.


    Note: For Section 811 program purposes, item 12, Areas Affected 
by Project, of SF-424, provide the names of the City, County and 
State where the project will be located (not the largest political 
entities as indicated on the instructions page of SF-424).


    (b) Standard Form 424 Supplement, Survey on Ensuring Equal 
Opportunity for Applicants. Although the information on this form will 
not be considered in making funding decisions, it will assist the 
federal government in ensuring that all qualified applicants have an 
equal opportunity to compete for federal funding.
    (c) Standard Form LLL--Disclosure of Lobbying Activities (if 
applicable). A disclosure of activities conducted to influence any 
federal transactions.
    (d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report, 
including Social Security and Employee Identification Numbers. A 
disclosure of assistance from other government

[[Page 12045]]

sources received in connection with the project.
    (e) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan (Plan), for the jurisdiction in which the proposed 
project will be located. The certification must be made by the unit of 
general local government if it is required to have, or has, a complete 
Plan. Otherwise, the certification may be made by the state, or by the 
unit of general local government if the project will be located within 
the jurisdiction of the unit of general local government authorized to 
use an abbreviated strategy, and if it is willing to prepare such a 
Plan. All certifications must be made by a public official responsible 
for submitting the Plan to HUD. The certifications must be submitted as 
part of the application by the application submission deadline date set 
forth in this NOFA. The Plan regulations are published in 24 CFR part 
91.
    (f) Form HUD-92041, Sponsor's Conflict of Interest Resolution. A 
certified Board Resolution that no officer or director of the Sponsor 
or Owner has or will have any financial interest in any contract with 
the Owner or in any firm or corporation that has or will have a 
contract with the Owner, including a current listing of all duly 
qualified and sitting officers and directors by title and the beginning 
and ending dates of each person's term.
    (g) Form HUD-92042, Sponsor's Resolution for Commitment to Project. 
A certified Board Resolution acknowledging responsibilities of 
sponsorship, long-term support of the project(s), your willingness to 
assist the Owner to develop, own, manage and provide appropriate 
services in connection with the proposed project, and that it reflects 
the will of your membership. Also, it shall indicate your willingness 
to fund the estimated start-up expenses, the Minimum Capital Investment 
(one-half of one-percent of the HUD-approved capital advance, not to 
exceed $10,000), and the estimated cost of any amenities or features 
(and operating costs related thereto) that would not be covered by the 
approved capital advance.
    (h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC 
Strategic Plan. A certification that the project is consistent with the 
RC/EZ/EC-IIs strategic plan, is located within the RC/EZ/EC-II, and 
serves RC/EZ/EC-II residents. (This certification is not required if 
the project site(s) will not be located in an RC/EZ/EC-II.) A copy of 
the RC/EZ/EC-II Certification form is contained in the online 
application; and
    (i) Form HUD-92043, Certification for Provision of Supportive 
Services. A certification from the appropriate state or local agency 
(identified in the application or obtained from the local HUD office), 
indicating whether the:
    (i) Provision of supportive services is well designed to serve the 
needs of persons with disabilities the housing is expected to serve;
    (ii) The provision of supportive services will enhance independent 
living success and promote the dignity of those who will access your 
proposed project;
    (iii) Supportive services will be available on a consistent, long-
term basis; and
    (iv) Proposed housing is consistent with state or local plans and 
policies addressing the housing needs of people with disabilities if 
the state or local agency will provide funding for the provision of 
supportive services, refer residents to the project or license the 
project. (The name, address, and telephone number of the appropriate 
agency can also be obtained from the appropriate local HUD Office.)
    (j) Form HUD-96010, Program Outcome Logic Model. In addition to the 
Project Development Timeline to be submitted in Exhibit 3(h) above, the 
information provided in the Logic Model will be used in rating your 
application for Rating Factor 5, Achieving Results and Program 
Evaluation.
    (k) Form HUD-27300, Questionnaire for HUD's Initiative on Removal 
of Regulatory Barriers (optional form). To receive up to 2 points, you 
must submit this form and provide a reference, URL or brief statement 
documenting the successful efforts in removing barriers to affordable 
housing by the jurisdiction in which your project will be located. This 
Questionnaire will be considered in the rating of your application for 
Rating Factor 3.j.
    (l) Form HUD-96011, Facsimile Transmittal to be used for faxing 
third party letters and other documents for your electronic 
applications in accordance with the instructions in the General 
Section.


    Note: HUD will not accept entire applications by fax. If you 
submit the application entirely by fax, it will be disqualified.


    (m) Form HUD-2994-A, You Are Our Client Survey. This is an optional 
form that may be used to provide suggestions and comments to the 
Department regarding your application submission experience.
    C. Submission Dates and Time. Your application must be received and 
validated electronically by Grants.gov no later than 11:59:59 PM 
eastern time on the application deadline date of May 26, 2006, unless a 
waiver of the electronic delivery process has been approved by HUD. 
Please refer to the General Section for instructions on applying for a 
waiver. If you are seeking a waiver of the electronic submission 
requirement, you must submit the waiver request to the following HUD 
official and address: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 9100, Washington, DC 20410-
8000, Telephone Number: (202) 708-2601. Applicants that are granted a 
waiver of the electronic submission requirement will not be afforded 
additional time to submit their applications. Therefore, HUD strongly 
recommends that you submit your waiver request to the above address 
approximately 15 days before the application deadline date. If a waiver 
is granted, you may submit copies of the application through the United 
States Postal Service or other type of mail service so that it can be 
received at the appropriate local HUD office no later than 11:59:59 
p.m. on the application deadline date of May 26, 2006. The letter 
granting the waiver will provide instructions regarding the number of 
copies and where they must be sent. HUD will accept hand delivery of 
applications.
    D. Intergovernmental Review. 1. State Review. This funding 
opportunity is subject to Executive Order (EO) 12372, 
``Intergovernmental Review of Federal Programs.'' You must contact your 
State's Single Point of Contact (SPOC) to find out about and comply 
with the state's process under EO 12372. The names and addresses of the 
SPOCs are listed in the Office of Management and Budget's Web site at 
http://www.whitehouse.gov/omb/grants/spoc.html. If required by the 
state, the submission to the state needs to occur before the Section 
811 application deadline date, but in no event later than the 
application deadline date. It is recommended that you provide the state 
with sufficient time to review the application. Therefore, it is 
important that you consult with the SPOC for state review time frames 
and take that into account when submitting the application. If the SPOC 
requires a review of your application, you must include a copy of the 
cover letter you sent to the SPOC in Exhibit 8(a) of your Section 811 
application.
    2. HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have 
an agreement to coordinate the administration of the agencies'

[[Page 12046]]

respective rental assistance programs. As a result, HUD is required to 
notify RHS of applications for housing assistance it receives. This 
notification gives RHS the opportunity to comment if it has concerns 
about the demand for additional assisted housing and possible harm to 
existing projects in the same housing market area. HUD will consider 
RHS comments in its review and application selection process.
    E. Funding Restrictions: 1. Ineligible Activities. Section 811 
funds may not be used for any of the following:
    a. Supportive Services
    b. Housing that you currently own or lease that has been occupied 
by people with disabilities for longer than one year prior to the 
application deadline date;
    c. Nursing homes, infirmaries and medical facilities;
    d. Transitional housing;
    e. Mobile homes;
    f. Intermediate care facilities;
    g. Assisted living facilities;
    h. Community centers, with or without special components for use by 
persons with disabilities;
    i. Sheltered workshops and centers for persons with disabilities;
    j. Headquarters for organizations for persons with disabilities; 
and
    k. Refinancing of Sponsor-owned facilities without rehabilitation.


    Note: You may propose to rehabilitate an existing currently-
owned or leased structure (if the structure already serves persons 
with disabilities, it cannot have operated as housing for persons 
with disabilities for longer than one year prior to the application 
deadline date); however, the refinancing of any federally funded or 
assisted project or project insured or guaranteed by a federal 
agency is not permissible under this Section 811 NOFA. HUD does not 
consider it appropriate to utilize scarce program resources to 
refinance projects that have already received some form of 
assistance under a federal program or that have been operating as 
housing for persons with disabilities for longer than one year prior 
to the application deadline date. (For example, Section 202, Section 
202/8 or Section 202/PAC direct loan projects cannot be refinanced 
with capital advances and project rental assistance.)


    2. Application Limits (Units/Projects). A Sponsor or Co-Sponsor may 
not apply for more than 70 units of housing or 4 projects (whichever is 
less) for persons with disabilities in a single Hub or more than 10 
percent of the total units allocated to all local HUD offices. 
Affiliated entities (organizations that are branches or offshoots of a 
parent organization) that submit separate applications are considered a 
single entity for the purpose of these limits. In addition, no single 
application may propose more units in a given local HUD office than 
allocated for the Section 811 program in that local HUD office. If the 
proposed project will be an independent living project, your 
application must request at least five units for persons with 
disabilities, not necessarily in one structure. If your proposed 
project will be a group home, you must request at least two units for 
persons with disabilities per group home. If your proposed project will 
be a combination of an independent living project and a group home, 
your application must request at least the minimum number of units for 
each project type (i.e., 5 units for an independent living project and 
2 units for a group home).
    3. Development Cost Limits. a. The following development cost 
limits, adjusted by locality as described in Section IV.E.3.b. below 
must be used to determine the capital advance amount reserved for 
projects for persons with disabilities.


    Note: The capital advance funds awarded for this project are to 
be considered the total amount of funds that the Department will 
provide for the development of this project. Amendment funds will 
only be provided in exceptional circumstances (e.g., to cover 
increased costs for construction delays due to litigation or 
unforeseen environmental issues resulting in a change of sites) that 
are clearly beyond your control. Otherwise, you are responsible for 
any costs over and above the capital advance amount provided by the 
Department as well as any costs associated with any excess amenities 
and design features.


    (1) For independent living projects and dwelling units in 
multifamily housing developments, condominium and cooperative housing: 
The capital advance amount for the project attributable to dwelling use 
(less the incremental development cost and the capitalized operating 
costs associated with any excess amenities and design features and 
other costs you must pay for) may not exceed:
    Non-elevator structures:

$42,980 per family unit without a bedroom
$49,557 per family unit with one bedroom
$59,766 per family unit with two bedrooms
$76,501 per family unit with three bedrooms
$85,225 per family unit with four bedrooms

    For elevator structures:

$45,232 per family unit without a bedroom
$51,849 per family unit with one bedroom
$63,049 per family unit with two bedrooms
$81,563 per family unit with three bedrooms
$89,531 per family unit with four bedrooms

    (2) For group homes only (the development cost limits are capped by 
type of occupancy and number of person with disabilities):

                           Type of Disability
------------------------------------------------------------------------
                                             Physical/    Chronic mental
                Residents                  developmental      illness
------------------------------------------------------------------------
2.......................................        $172,303        $166,325
3.......................................         185,287         178,860
4.......................................         198,273         189,995
5.......................................         211,257         201,130
6.......................................         224,228         212,265
------------------------------------------------------------------------

    (3) These cost limits reflect those costs reasonable and necessary 
to develop a project of modest design that complies with HUD minimum 
property standards; the minimum group home requirements of 24 CFR 
891.310(a) (if applicable); the accessibility requirements of 24 CFR 
891.120(b) and 891.310(b); and the project design and cost standards of 
24 CFR 891.120. b. Increased development cost limits.
    (1) HUD may increase the development cost limits set forth above, 
by up to 140 percent in any geographic area where the cost levels 
require, and may increase the development cost limits by up to 160 
percent on a project-by-project basis. This increase may include 
covering additional costs to make dwelling units accessible through 
rehabilitation.



[[Page 12047]]


    Note: In applying the applicable high cost percentage, the local 
HUD office may use a percentage that is higher or lower than that 
which is assigned to the local HUD office if it is needed to provide 
a capital advance amount that is comparable to what it typically 
costs to develop a Section 811 project in that area.


    (2) If HUD finds that high construction costs in Alaska, Guam, the 
Virgin Islands or Hawaii make it unfeasible to construct dwellings, 
without the sacrifice of sound standards of construction, design, and 
livability, within the development cost limits provided in Section 
IV.E.3.a.(1) and IV.E.3.b.(1) above, the amount of capital advances may 
be increased to compensate for such costs. The increase may not exceed 
the limits established under this section (including any high cost area 
adjustment) by more than 50 percent.
    (3) For group homes only, local HUD offices may approve increases 
in the development cost limits in Section IV.E.3.a.(2), above, in areas 
where you can provide sufficient documentation that high land costs 
limit or prohibit project feasibility. An example of acceptable 
documentation is evidence of at least three land sales that have 
actually taken place (listed prices for land are not acceptable) within 
the last two years in the area where your project is to be built. The 
average cost of the documented sales must exceed ten percent of the 
development cost limit for your project in order for an increase to be 
considered.
    4. Commercial Facilities. A commercial facility for the benefit of 
the residents may be located and operated in the Section 811 project. 
However, the commercial facility cannot be funded with the use of 
Section 811 capital advance or PRAC funds. The maximum amount of space 
permitted for a commercial facility cannot exceed 10 percent of the 
total project cost. An exception to this 10 percent limitation is if 
the project involves acquisition or rehabilitation and the additional 
space was incorporated in the existing structure at the time the 
proposal was submitted to HUD. Commercial facilities are considered 
public accommodations under Title III of the Americans with 
Disabilities Act of 1990 (ADA), and thus must comply with all the 
accessibility requirements of the ADA.
    5. Expiration of Section 811 Funds. The Department of Housing and 
Urban Development Appropriations Act, 2006, requires HUD to obligate 
all Section 811 funds appropriated for FY 2006 by September 30, 2009. 
Under 31 U.S.C. 1551, no funds can be disbursed from this account after 
September 30, 2014. Under Section 811, obligation of funds occurs for 
both capital advances and project rental assistance upon fund 
reservation and acceptance. If all funds are not disbursed by HUD and 
expended by the project Owner by September 30, 2014, the funds, even 
though obligated, will expire and no further disbursements can be made 
from this account. In submitting an application, you need to carefully 
consider whether your proposed project can be completed through final 
capital advance closing no later than September 30, 2014. Furthermore, 
all unexpended balances, including any remaining balance on PRAC 
contracts, will be cancelled as of October 1, 2014. Amounts needed to 
maintain PRAC payments for any remaining term on the affected contracts 
beyond that date will have to be funded from other current 
appropriations.
    F. Other Submission Requirements: 1. Address for Submitting 
Applications. Applications must be submitted electronically through the 
http://www.Grants.gov Web site, unless the applicant receives a waiver 
from the electronic submission requirement. See the General Section for 
information on applying online and requesting a waiver from the 
electronic application requirement. The applications submitted 
electronically via Grants.gov will be downloaded and forwarded to the 
appropriate local HUD Office for processing and review. If you apply 
for and receive a waiver from the electronic application requirement, 
you must submit an original and four copies of your completed 
application to the Director of the appropriate local HUD office. Refer 
to HUD's website at http://www.hud.gov/offices/adm/grants/fundsavail.cfm for a listing of local HUD offices. The applications 
submitted electronically via http://www.Grants.gov will be downloaded 
and forwarded to the appropriate local HUD office.
    2. For Section 811 applications that have more than one applicant, 
i.e., Co-Sponsors. The applicants must designate a single individual to 
act as the authorized representative for all Co-Sponsors of the 
application. The designated authorized representative of the 
organization submitting the application must be registered with 
Grants.gov, the Federal Central Contractor Registry and with the 
credential provider for E-Authentication. Information on the Grants.gov 
registration process is found at http://www.grants.gov/GetStarted. When 
the application is submitted through Grants.gov, the name of the 
designated authorized representative will be inserted into the 
signature line of the application. Please note that the designated 
authorized representative must be able to make legally binding 
commitments for each Co-Sponsor to the application.
    Each Co-Sponsor must complete the documents required of all co-
sponsoring organizations to permit HUD to make a determination on the 
eligibility of the Co-Sponsor(s) has pledged to the project. Therefore, 
each Co-Sponsor must submit the following information using the 
scanning and/or faxing method described in Section IV. of the General 
Section: Standard Form 424, Application for Federal Assistance; 
Standard Form 424 Supplement, Survey for Ensuring Equal Opportunity for 
Applicants; Standard Form LLL, Disclosure of Lobbying Activities (if 
applicable); Form HUD-92016-CA, Section 811 Application for Capital 
Advance, Summary Information; Form HUD-92041, Sponsor's Conflict of 
Interest Resolution; Form HUD-92042, and Sponsor's Resolution for 
Commitment to Project. The forms identified above are discussed in the 
Program instructions package and can be downloaded from HUD's Website 
at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm. The 
downloaded and completed forms should be saved as separate electronic 
files and attached to the electronic application submission following 
the requirements of Section IV.
    As stated in Section IV of the General Section, scanning documents 
to create electronic files increases the size of the file. Therefore, 
applicants may not submit scanned files unless using the facsimile 
method as stated in the General Section. If the facsimile method does 
not work, forms and other documents from Co-Sponsors may be scanned to 
create an electronic file and submitted as an attachment to the 
application. These documents should be labeled and numbered so the HUD 
reviewer can identify the file and its contents. If the applicant is 
creating an electronic file, the file should contain a header that 
identifies the name of the Sponsor submitting the electronic 
application, that Sponsor's DUNS Number, and the unique ID that is 
found at the top of the Facsimile Transmission form found in the 
electronic application package. The naming convention for each 
electronic file should correspond to the labeling convention used in 
the application Table of Contents found in Section IV.B.1. of this 
NOFA. For example, the organizational documents of a Co-Sponsor would 
be included under Part II, Exhibit 2(a) of the Section 811 application.
    The signed documents and other information required to be submitted

[[Page 12048]]

with the electronic application should be transmitted via fax, using 
Form HUD-96011, Facsimile Transmittal as the cover page to the 
facsimile. The Form HUD-96011 is found in the electronic application 
package. Co-Sponsors should use the Form HUD-96011 provided by the 
Sponsor that is submitting the electronic application. The submitting 
Sponsor should fill in the SF 424 form prior to giving the Form 96011 
to the Co-Sponsors. By following these directions, the Form HUD-96011 
will be pre-populated with the submitting Sponsor's organizational 
information exactly as the submitting Sponsor has provided it on the 
electronic application. In addition, HUD will be using the unique 
identifier associated to the downloaded application package as a means 
of matching the faxes submitted with applications received via 
Grants.gov. The Facsimile Transmittal form also has space to provide 
the number of pages being faxed and information on the type of 
document. Co-Sponsors or the submitting applicant can insert the 
document name in the space provided labeled Program Component and 
should ensure that the form that is used is the cover sheet to the 
facsimile transmittal.
    Do not insert any additional or other cover pages as it will cause 
problems in electronically matching the pieces of the application.

V. Application Review Information

A. Criteria

    Policy Priorities. HUD encourages applicants to undertake specific 
activities that will assist the Department in implementing its policy 
priorities and which help the Department achieve its strategic goals 
for FY2006. Refer to the General Section for information regarding 
HUD's Strategic Goals and Policy Priorities. For the Section 811 
program, applicants who include work activities that specifically 
address the policy priorities of encouraging accessible design features 
by incorporating visitability standards and universal design, ending 
chronic homelessness, removing barriers to affordable housing, 
promoting energy efficiency in design and operations, and expanding 
training and employment opportunities for low and very low-income 
persons and business concerns (Section 3 requirements) will receive 
additional points. A Notice pertaining to the removal of barriers to 
affordable housing was published in the Federal Register and may be 
downloaded from the HUD website at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    Rating Factors. HUD will rate applications that successfully 
complete technical processing using the Rating Factors set forth below 
and in accordance with the application submission requirements in this 
NOFA. The maximum number of points an application may receive under 
this program is 102. This includes two (2) RC/EZ/EC-II bonus points, as 
described in the General Section of the SuperNOFA and Section V.A.6 
below.
    1. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Staff (28 Points). This factor addresses the extent to 
which you have the organizational resources to successfully implement 
the proposed activities in a timely manner. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Exhibits 3(a), 3(b), 3(e), 5 and 6 of Section IV.B. of 
this NOFA. In rating this factor, HUD will consider the extent to which 
your application demonstrates your ability to develop and operate the 
proposed housing on a long-term basis, considering the following:
    a. (13 points) The scope, extent, and quality of your experience in 
providing housing or related services to those proposed to be served by 
the project and the scope of the proposed project (i.e., number of 
units, services, relocation costs, development, and operation) in 
relationship to your demonstrated development and management capacity 
as well as your financial management capability.
    b. (10 points) The scope, extent, and quality of your experience in 
providing housing or related services to minority persons or minority 
families and your ties to the community at large and to the minority 
and disability communities in particular.
    (1) (5 points) The scope, extent, and quality of your experience in 
providing housing or related services to minority persons or families.
    (2) (5 points) The scope, extent, and quality of your ties to the 
community at large and to the minority and disability communities in 
particular.
    To earn the maximum number of points under subcriteria (b)(1) 
above, you must describe significant previous experience in providing 
housing and/or supportive services to minorities generally and to 
minority persons with disabilities, in particular. For the purpose of 
this competition, ``significant previous experience'' means that the 
previous housing assistance or related services to minorities, i.e., 
the percentage of minorities being provided housing or related services 
in your current developments, was equal to or greater than the 
percentage of minorities in the housing market area where the previous 
housing or services occurred. To earn the maximum number of points 
under subcriteria (b)(2) above, you should submit materials that 
demonstrate your efforts to make housing available to the community at 
large and the minority and disability communities in particular and 
your relationships over time with the community, including the minority 
and disability communities. Examples of documents that may be submitted 
to earn the maximum number of points under subcriteria (b)(2), include 
letters of support from community leaders (including minority and 
disability community leaders) that give information about applicant's 
relationship over time with the community (including the minority and 
disability community). You may also submit copies of your affirmative 
marketing plan and the advertising/outreach materials you utilize to 
attract minority communities (including limited English proficient 
communities), disabled community and the community at large. Regarding 
your advertising/outreach materials, you should identify when 
advertising/outreach materials are circulated, whom they are circulated 
to, where they are circulated, and how they are circulated. 
Descriptions of other advertising/outreach efforts to the minority 
(including limited English proficient communities) and disabled 
communities and the dates and places of such advertising/outreach 
efforts should also be included.
    c. (-3 to -5 points) HUD will deduct (except if the delay was 
beyond your control) 3 points if a fund reservation you received under 
either the Section 811 program of Supportive Housing for Persons with 
Disabilities or the Section 202 program of Supportive Housing for the 
Elderly in FY2000 or later has been extended beyond 24 months, 4 points 
if beyond 36 months, and 5 points if beyond 48 months. Examples of 
delays beyond your control include, but are not limited to, initial 
closing delays that are: (1) directly attributable to HUD, (2) directly 
attributable to third party opposition, including litigation, and (3) 
due to a disaster, as declared by the President of the United States.
    d. (-3 to -5 points). HUD will deduct from 3 points to 5 points if 
amendment money was required in connection with a fund reservation you 
received under either the Section 202 Program of Supportive Housing for 
the Elderly or the Section 811 Program of Supportive Housing for 
Persons with

[[Page 12049]]

Disabilities in FY 2001 or later based on the following.
    (1) (-3 points). The amount of the amendment money required was 25% 
or less of the original capital advance amount approved by HUD.
    (2) (-4 points). The amount of the amendment money required was 
between 26% and 50% of the original capital advance amount approved by 
HUD.
    (3) (-5 points). The amount of the amendment money required was 
over 50% of the original capital advance amount approved by HUD.
    e. (5 points) You have experience in developing integrated housing 
and/or the proposed project will be an integrated housing model (e.g., 
condominium units scattered within one or more buildings or non-
contiguous independent living units on scattered sites).
    2. Rating Factor 2: Need/Extent of the Problem (13 Points). This 
factor addresses the extent to which there is a need for funding the 
proposed activities to address a documented problem in the target area. 
Submit information responding to this factor in accordance with 
Application Submission Requirements in Exhibits 4(a) and 4(b) of 
Section IV.B. of this NOFA. HUD will consider the following in 
evaluating this factor:
    The extent of the need for the project in the area based on a 
determination by the local HUD office. In making this determination, 
HUD will consider your evidence of need in the area, as well as other 
economic, demographic, and housing market data available to the local 
HUD office. The data should include a general assessment of the current 
conditions in the market for the type of housing proposed, an estimate 
of the demand for additional housing of the type proposed in the 
applicable housing market area; as well as, information on the numbers 
and types of existing comparable subsidized housing for persons with 
disabilities, current occupancy in such housing and recent market 
experience, comparable subsidized housing for persons with disabilities 
under construction or for which fund reservations have been issued, 
and, in accordance with an agreement between HUD and RHS, comments from 
RHS on the demand for additional comparable subsidized housing and the 
possible harm to existing projects in the same housing market area. The 
Department also will review more favorably those applications which 
establish a connection between the proposed project and the community's 
Analysis of Impediments to Fair Housing Choice (AI) or other planning 
document that analyzes fair housing issues and is prepared by a local 
planning or similar organization. You must show how the proposed 
project will address an impediment to fair housing choice described in 
the AI or meet a need identified in the other type of planning 
document.
    If a determination has been made that there is sufficient 
sustainable long-term demand for additional supportive housing for 
persons with disabilities in the area to be served, the project is to 
be awarded 10 points. If not, the project is to be awarded 0 points. No 
other point values are allowed.
    3. Rating Factor 3: Soundness of Approach (42 Points). This factor 
addresses the quality and effectiveness of your proposal, the extent to 
which you involved persons with disabilities, including minority 
persons with disabilities, in the development of the application and 
will involve them in the development and operation of the project, the 
extent to which you coordinated your application with other 
organizations, including local independent living centers, with which 
you share common goals and objectives and are working toward meeting 
these objectives in a holistic and comprehensive manner, whether you 
consulted with Continuum of Care organizations to address efforts to 
assist persons with disabilities who are chronically homeless as 
defined in the General Section, whether the jurisdiction in which your 
project will be located has undertaken successful efforts to remove 
regulatory barriers to affordable housing, whether you will promote 
energy efficiency in the design and operation of the proposed housing, 
and your plans to expand economic opportunities for low and very low-
income persons as well as business concerns (Section 3). There must be 
a clear relationship between the proposed design, the proposed 
activities, the community's needs and purposes of the program funding 
for your application to receive points for this factor. Submit 
information responding to this factor in accordance with Application 
Submission Requirements in Exhibits 2(d), 3(f), 3(j), 3(k), 3(l), 3(m), 
4(c)(i), 4(c)(ii), 4(d)(iii), 4(d)(v), 4(d)(vi), 4(e)(i), 5, and 8(l) 
of Section IV.B. of this NOFA. In evaluating this factor, HUD will 
consider the following:
    a. (14 points) Site approvability--The proximity or accessibility 
of the site to shopping, medical facilities, transportation, places of 
worship, recreational facilities, places of employment, and other 
necessary services to the intended occupants; adequacy of utilities and 
streets, and freedom of the site from adverse environmental conditions 
(based on site visit for site control projects only); and compliance 
with site and neighborhood standards in 24 CFR 891.125(a), (d), and (e) 
and 24 CFR 891.320. Sites where amenities are accessible other than by 
project residence or private vehicle will be rated more favorably;
    b. (-1 point) One or more of your proposed sites is not 
permissively zoned for the intended use.
    c. (10 points) The suitability of the site from the standpoints of 
promoting a greater choice of housing opportunities for minorities and 
persons with disabilities and affirmatively furthering fair housing. In 
reviewing this criterion, HUD will assess whether the site meets the 
site and neighborhood standards at 24 CFR 891.125(b) and (c) by 
examining relevant data in your application or in the local HUD office. 
If appropriate, HUD may visit the site.
    (1) The site will be deemed acceptable if it increases housing 
choice and opportunity by expanding housing opportunities in non-
minority neighborhoods (if located in such a neighborhood). The term 
``non-minority area'' is defined as one in which the minority 
population is lower than 10 percent. If the site will be in a minority 
neighborhood, the site will be deemed acceptable if it contributes to 
the revitalization of and reinvestment in the minority neighborhood, 
including improvement of the level, quality and affordability of 
services furnished to minority persons with disabilities. You should 
refer to the Site and Neighborhood Standards provisions of the 
regulations governing the Section 811 Supportive Housing Program (24 
CFR 891.125(b) and (c)) when considering sites for your projects.
    (2) For the purpose of this competition, the term ``minority 
neighborhood (area of minority concentration)'' is defined as one where 
any one of the following statistical conditions exists:
    (a) The percentage of persons of a particular racial or ethnic 
minority is at least 20 points higher than the minority's or 
combination of minorities' percentage in that housing market as a 
whole;
    (b) The neighborhood's total percentage of minority persons is at 
least 20 points higher than the total percentage of minorities for the 
housing market area as a whole; or
    (c) In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.

[[Page 12050]]

    d. (2 points) Site and Neighborhood Standards and Persons with 
Disabilities: The extent to which the proposed design of the project 
(exterior and interior) and its placement in the neighborhood will meet 
the individual needs of the residents and will facilitate their 
integration into the surrounding community and promote their ability to 
live as independently as possible.
    e. (1 point) The extent to which the proposed design incorporates 
visitability standards and universal design in the construction or 
rehabilitation of the project. Refer to the General Section for further 
information.
    f. (4 points) Your board is comprised of persons with disabilities.
    g. (3 points) You involved persons with disabilities (including 
minority persons with disabilities) in the development of the 
application, and will involve persons with disabilities (including 
minority persons with disabilities) in the development and operation of 
the project.
    h. (2 points) The extent to which you coordinated your application 
with other organizations (including local independent living centers; a 
list of such can be obtained from the local HUD office) that will not 
be directly participating in your project, but with which you share 
common goals and objectives and are working toward meeting these goals 
and objectives in a holistic and comprehensive manner.
    i. (1 point) You consulted with the Continuum of Care organizations 
in the community in which your proposed project will be located and 
have developed ways in which the proposed project will assist persons 
with disabilities who have been experiencing chronic homelessness 
become more productive members of society. Refer to the General Section 
for further information.
    j. (2 points) The extent to which the jurisdiction in which your 
project will be located has undertaken successful efforts to remove 
regulatory barriers to affordable housing. (NOTE: To receive up to 2 
points, the applicant must have submitted the optional Form HUD-27300, 
Questionnaire for HUD's Initiative on Removal of Regulatory Barriers, 
AND provided URL references or submitted the required documentary 
evidence.)
    k. (1 point) The extent to which you will promote energy efficiency 
in the design and operation of the proposed housing. (NOTE: Optional, 
but to receive the 1 point, the applicant must have adequately 
addressed their plans to promote energy efficiency in the design and 
operation of the proposed project.) Refer to Section III.C.3.k. of this 
NOFA.
    l. (2 points). The extent to which you have described your plans 
for expanding economic opportunities for low and very low-income 
persons (provisions of Section 3). NOTE: To receive up to 2 points, the 
applicant must have adequately addressed the following in Exhibit 3(m) 
of the application. Refer to the General Section for further 
information.
    (1) (1 point). Provide opportunities to train and employ low and 
very low-income residents of the project area.
    (2) (1 point). Award substantial contracts to persons residing in 
the project area.
    4. Rating Factor 4: Leveraging Resources (5 Points). This factor 
addresses your ability to secure other funding sources and community 
resources that can be combined with HUD's program resources to achieve 
program purposes. Submit information responding to this factor in 
accordance with Application Submission Requirements in Exhibits 3(a), 
3(b), 3(c), 3(d), 3(e), and 5(f) of Section IV.B. of this NOFA.
    a. (0 point). The application contains general support and/or 
written evidence of firm commitments towards the development and 
operation of the proposed project (including, financial assistance, 
donation of land, provision of services, etc.) from other funding 
sources (e.g., private local community and government sources) where 
the dollar value totals 5% or less of the capital advance amount as 
determined by HUD.
    b. (1 point). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals between 
6% and 10% of the capital advance amount as determined by HUD.
    c. (2 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals between 
11% and 15% of the capital advance amount as determined by HUD.
    d. (3 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals between 
16% and 20% of the capital advance amount as determined by HUD.
    e. (4 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals between 
21% and 25% of the capital advance amount as determined by HUD.
    f. (5 points). The application contains written evidence of firm 
commitments towards the development and operation of the proposed 
project (including, financial assistance, donation of land, provision 
of services, etc.) from other funding sources (e.g., private local 
community and government sources) where the dollar value totals over 
25% of the capital advance amount as determined by HUD.
    5. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points). This factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability and, as such, emphasizes HUD's 
commitment to ensuring that you keep the promises made in your 
application. This factor requires that you clearly identify the 
benefits or outcomes of your project and develop an evaluation plan to 
measure performance, which includes what you are going to measure, how 
you are going to measure it, and the steps you will have in place to 
make adjustments to your project development timeline should you not be 
able to achieve any of the major milestones. Completion of Exhibit 
8(j), Program Outcome Logic Model, will assist you in completing your 
response to this rating factor. This rating factor also addresses the 
extent to which your project will implement practical solutions that 
result in residents achieving independent living, economic empowerment, 
educational opportunities and improved living environments. Finally, 
this factor addresses the extent to which the long-term viability of 
your project will be sustained for the duration of the 40-year capital 
advance period. Submit information responding to this factor in 
accordance with Application Submission Requirements in Exhibits 3(e), 
3(g), 3(h), 3(i), 6(b), and 8(k) of Section IV.B. of this NOFA.
    a. (5 points) The extent to which your project development timeline 
is indicative of your full understanding of the development process and 
will,

[[Page 12051]]

therefore, result in the timely development of your project.
    b. (2 points) The extent to which your past performance evidences 
that the proposed project will result in the timely development of the 
project. Evidence of your past performances could include the 
development of previous construction projects, including but not 
limited to Section 202 or Section 811 projects.
    c. (2 points) The extent to which your project will implement 
practical solutions that will result in assisting residents in 
achieving independent living, economic empowerment, educational 
opportunities, and improved living environments (e.g., activities that 
will improve computer access, literacy and employment opportunities).
    d. (3 points) The extent to which you demonstrated that your 
project will remain viable as housing with the availability of 
supportive services for very low income persons with disabilities for 
the 40-year capital advance period.
    6. Bonus Points (2 bonus points) Location of proposed site in an 
RC/EZ/EC-II area, as described in the General Section. Submit the 
information responding to the bonus points in accordance with the 
Application Submission Requirements in Exhibit 8(i) of Section IV.B. of 
this NOFA.
    B. Reviews and Selection Process: 1. Review for Curable 
Deficiencies. Upon receipt of the application by HUD staff, HUD will 
screen all applications to determine if there are any curable 
deficiencies. For applicants receiving a waiver to submit a paper 
application, submitting fewer than the required original and four 
copies of the application is not a curable deficiency and will cause 
your application to be considered non-responsive to the NOFA and 
returned to you. A curable deficiency is a missing Exhibit or portion 
of an Exhibit that will not affect the rating of the application. Refer 
to the General Section for additional information regarding procedures 
for corrections to deficient applications. The following is a list of 
the only deficiencies that will be considered curable in a Section 811 
application:

 
------------------------------------------------------------------------
                Exhibit                            Description
------------------------------------------------------------------------
1......................................  Form 92016-CA (Application
                                          Form)*.
2(a)...................................  Articles of Incorporation*.
2(b)...................................  By-laws*.
2(c)...................................  IRS tax exemption ruling*.
4(d)(i)................................  Evidence of site control.
4(d)(ii)...............................  Evidence site is free of
                                          limitations, restrictions or
                                          reverters.
4(d)(iv)...............................  Evidence of compliance with URA
                                          site notification requirement.
4(d)(vii)..............................  Phase I ESA.
4(d)(viii).............................  Asbestos Statement or Survey.
4(d)(ix)...............................  Letter to the State/Tribal
                                          Historic Preservation Officer
                                          (SHPO/THPO) and a statement
                                          that the SHPO/THPO failed to
                                          respond OR the letter from the
                                          SHPO/THPO.
4(d)(x)................................  Willingness to seek an
                                          alternate site.
4(d)(xi)...............................  Exception to project size
                                          limit.
4(e)(ii)...............................  Steps undertaken to identify
                                          site.
4(e)(iv)...............................  Status of the sale of the site.
4(e)(v)................................  Whether the site would involve
                                          relocation.
5......................................  Supportive Services Plan.
7......................................  Relocation.
8(a)...................................  Standard Form 424, Application
                                          for Federal Assistance, Letter
                                          sent to the State Point of
                                          Contact (SPOC)*.
8(b)...................................  Standard Form 424 Supplement,
                                          Survey on Ensuring Equal
                                          Opportunity for Applicants
                                          Standard Form LLL, Disclosure
                                          of Lobbying Activities (if
                                          applicable).
8(c)...................................  Form HUD-2880, Applicant/
                                          Recipient Disclosure/Update
                                          Report.
8(d)...................................  Form HUD-2991, Certification of
                                          Consistency with Consolidated
                                          Plan.
8(e)...................................  Form HUD-92041, Sponsor's
                                          Conflict of Interest
                                          Resolution.
8(f)...................................  Form HUD-92042, Sponsor's
                                          Resolution for Commitment to
                                          Project*.
8(g)...................................  Form HUD-92043, Supportive
                                          Services Certification.
8(i)...................................  ...............................
------------------------------------------------------------------------

    The local HUD office will notify you in writing if your application 
is missing any of the above exhibits or portions of exhibits and will 
provide you with a specified deadline to submit the information 
required to cure the noted deficiencies. The items identified by an 
asterisk (*) must be dated on or before the application submission 
date. If an Exhibit or portion of an Exhibit listed above as curable is 
not discovered as missing until technical processing, HUD will provide 
you with a deadline to cure the deficiency.
    2. Rating. HUD will review and rate your application in accordance 
with the Reviews and Selection Process in the General Section except as 
described in ``3. Appeal Process'' below. Your application will be 
either rated or technically rejected at the end of technical review. If 
your application meets all program eligibility requirements after 
completion of technical review, it will be rated according to the 
rating factors in Section V.A. above.
    3. Appeal Process. HUD will not reject your application based on 
technical review without notifying you of the rejection with all the 
reasons for rejection and providing you an opportunity to appeal. You 
will have 14 calendar days from the date of HUD's written notice to 
appeal a technical rejection to the local HUD office. In HUD's review 
of any appeal, it should be noted that in conformance with its 
regulations at 24 CFR part 4, subpart B, HUD will not consider any 
unsolicited information that you, the applicant, may want to provide. 
The local HUD office will make a determination on any appeals before 
making its selection recommendations.
    4. Ranking and Selection Procedures. Applications that have a total 
base score of 75 points or more (without the addition of RC/EC/EZ-II 
bonus points) and meet all of the applicable threshold requirements in 
the General Section and this NOFA will be eligible for selection and 
will be placed in rank order in two categories; Category A and Category 
B. Category A will consist of approvable applications that contain 
acceptable evidence of control of all proposed sites and all proposed 
sites have been found approvable. Category B will consist of the 
following approvable applications: (a) Those that were submitted with 
identified sites; (b) those that were submitted with evidence of site 
control where the evidence and/or any of the proposed sites were found 
unapprovable provided you indicate your willingness to locate another 
site(s) should the proposed site(s) be found unapprovable; and (c) 
those that were submitted with a combination of sites under control and 
identified sites. Each HUD Multifamily Program Center will select 
applications, after adding any bonus points for RC/EC/EZ-II, based on 
rank order, from Category A first that most closely approximates the 
capital advance authority available in its allocation. If capital 
advance authority remains after selecting all approvable applications 
from Category A, each HUD Multifamily Program Center shall then select 
applications, in rank order, from Category B that most closely

[[Page 12052]]

approximates the capital advance authority remaining in its allocation. 
HUD Multifamily Program Centers will not skip over any applications in 
order to select one based on the funds remaining. After making the 
initial selections from the applicable category, however, HUD 
Multifamily Program Centers may use remaining available funds to select 
the next rank-ordered application in that category by reducing the 
number of units by no more than 10 percent, rounded to the nearest 
whole number, provided the reduction will not render the project 
unfeasible. For this purpose, however, HUD will not reduce the number 
of units in projects of five units or less.
    After the HUD Multifamily Program Centers have funded all possible 
projects based on the process above, residual funds from all HUD 
Multifamily Program Centers within each Multifamily Hub will be 
combined. First, these funds will be used to restore units to projects 
reduced by HUD Multifamily Program Centers based on the above 
instructions. Second, additional approvable applications within each 
Multifamily Hub will be selected in Hub-wide rank order, first from 
Category A, and if sufficient funds remain, from Category B, with only 
one application selected per HUD Multifamily Program Center. More than 
one application may be selected per HUD Multifamily Program Center if 
there are no approvable applications in other HUD Multifamily Program 
Centers within the Multifamily Hub. This process will continue until 
there are no more approvable applications within the Multifamily Hub 
that can be selected with the remaining funds. Applications may not be 
skipped over to select one based on funds remaining. However, the 
Multifamily Hub may use any remaining residual funds to select the next 
rank-ordered application in the applicable category by reducing the 
number of units by no more than 10 percent rounded to the nearest whole 
number, provided the reduction will not render the project infeasible 
or result in the project being less than 5 units.
    Funds remaining after the Multifamily Hub selection process is 
completed will be returned to Headquarters. HUD Headquarters will use 
these residual funds first to restore units to projects reduced by HUD 
Multifamily Program Center or Multifamily Hub as a result of the 
instructions for using their residual funds. Second, HUD Headquarters 
will use these funds for selecting applications based on HUD Program 
Centers' rankings, beginning with the highest rated application 
nationwide in Category A. Only one application will be selected per HUD 
Multifamily Program Center in Category A from the national residual 
amount. Headquarters may skip over a higher rated Category A 
application to ensure that only one application is selected from each 
HUD Multifamily Program Center. This process will continue until the 
remaining available funds are used to select Category A applications, 
to the maximum extent possible. If all Category A applications are 
selected, Category B applications will then become eligible for 
selection in rank order, beginning with the highest rated application. 
Only one Category B application per HUD Multifamily Program Center will 
be selected from the remaining national residual amount. Headquarters 
may skip over a higher rated Category B application in order to ensure 
that only one application is selected from each HUD Multifamily Program 
Center. This process will continue until the remaining available funds 
are used to select approvable applications. If there are no approvable 
applications in Category A in other HUD Multifamily Program Centers, 
then the next highest rated application in Category B in another HUD 
Multifamily Program Center will be selected.
    5. HUD Error. In the event HUD commits an error that, when 
corrected, would have resulted in the selection of an otherwise 
eligible applicant during the funding round of this NOFA, HUD may 
select that applicant when sufficient funds become available.

VI. Award Administration Information

A. Award Notices

    1. Agreement Letter. If you are selected to receive a Section 811 
fund reservation, you will receive an Agreement Letter that stipulates 
the terms and conditions for the Section 811 fund reservation award as 
well as the submission requirements following the fund reservation 
award. The duration of the fund reservation award for the capital 
advance is 18 months from the date of issuance of the fund reservation.
    Immediately upon your acceptance of the Agreement Letter, you are 
expected to begin work towards the submission of a Firm Commitment 
Application, which is the next application submission stage. You are 
required to submit a Firm Commitment Application to the local HUD 
office within 180 days from the date of the Agreement Letter. Initial 
closing of the capital advance and start of construction of the project 
are expected to be accomplished within the duration of the fund 
reservation award. Final closing of the capital advance is expected to 
occur no later than six months after completion of project 
construction.
    2. Non-selection Letter. If your application is approvable but 
unfunded due to insufficient funds or receives a rating that is below 
the minimum threshold score established for funding eligibility, you 
will receive a letter to this effect.
    3. Debriefing. Refer to the General Section for further information 
regarding debriefings except that the request must be made to the 
Director of Multifamily Housing in the appropriate local HUD office.

B. Administrative and National Policy Requirements

    1. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses. Although the 
Section 811 program is not subject to the provisions of 24 CFR 85.36(e) 
as described in the corresponding paragraph in the General Section you 
are required to comply with Executive Order 12432, Minority Business 
Enterprise Development and Executive Order 11625, Prescribing 
Additional Arrangements for Developing and Coordinating a National 
Program for Minority Business Enterprise as they relate to the 
encouragement of HUD grantees to utilize minority business enterprises.
    2. Acquisition and Relocation. You must comply with the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended (49 CFR part 24 and 24 CFR part 891.155(e)) (URA), 
which covers the acquisition of sites, with or without existing 
structures, and with 24 CFR 8.4(b)(5) of the Section 504 regulations 
which prohibits discrimination based on disability in determining the 
site or location of a federally-assisted facility. However, you are 
exempt from complying with the site acquisition requirements of the URA 
if you do not have the power of eminent domain and prior to entering 
into a contract of sale, option to purchase or any other method of 
obtaining site control, you inform the seller of the land in writing: 
(1) That you do not have the power of eminent domain and, therefore, 
you will not acquire the property if negotiations fail to result in an 
amicable agreement, and (2) of the estimate of the fair market value of 
the property. An appraisal is not required to meet this requirement; 
however, your files must include an explanation (with reasonable 
evidence), of the basis for the estimate. Evidence of compliance with 
this advance notice requirement must be included in Exhibit 4(d)(iv) of 
your application.

[[Page 12053]]

    3. Flood Disaster Protection Act of 1973 and Coastal Barriers 
Resources Act. You must comply with the requirements under the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal 
Barrier Resources Act (16 U.S.C. 3601).

C. Reporting

    The Program Outcome Logic Model (Form HUD-96010) must be completed 
indicating the results achieved against the proposed output goal(s) and 
proposed outcome(s) which you stated in your approved application and 
agreed upon by HUD. Based on the information you provided in the 
Program Outcome Logic Model. These reporting requirements are to be 
submitted to HUD as follows:
    Program Outcome Logic Model. You, as the Sponsor, and the Owner, 
when formed, are required to report annually, beginning from the date 
of the Agreement Letter, on the results achieved against the output 
goal(s) and outcome(s), which you proposed in the Program Outcome Logic 
Model that was submitted in your application. For FY2006, HUD is 
considering a new concept for the Logic Model. The new concept is a 
Return on Investment (ROI) statement. HUD will be publishing a separate 
notice on the ROI concept.
    2. The Regulatory Agreement (Form HUD-92466-CA) requires the Owner 
of the Section 811 project to submit an annual financial statement for 
the project. This financial statement must be audited by an Independent 
Public Accountant who is a Certified Public Accountant or other person 
accepted by HUD and filed electronically with HUD's Real Estate 
Assessment Center (REAC) through the Financial Assessment Subsystem for 
Multifamily Housing (MF-FASS). The submission of annual financial 
statements is required throughout the 40-year term of the mortgage.

VII. Agency Contact(s)

    Technical Assistance. For technical assistance in downloading an 
application package from www.grants.gov/Apply, contact the Grants.gov 
help desk at 800-518-Grants or by sending an email to 
[email protected].
    Programmatic Information. For programmatic information, you may 
contact the appropriate local HUD office, or Frank Tolliver at HUD 
Headquarters at (202) 708-3000 (this is not a toll-free number), or 
access the Internet at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Persons with hearing and speech impairments may access 
the above number via TTY by calling the toll-free Federal Relay Service 
at 800-877-8339.

VIII. Other Information

    A. Field Office Workshop. HUD encourages minority organizations and 
grassroots organizations (e.g., civic organizations, faith-communities 
and grassroots faith-based and other community-based organizations) to 
participate in this program and strongly recommends prospective 
applicants attend the local HUD office workshop. At the workshops, HUD 
will explain application procedures and requirements, as well as 
address concerns such as local market conditions, building codes and 
accessibility requirements, contamination identification and 
remediation, historic preservation, floodplain management, other 
environmental requirements, displacement and relocation, zoning, and 
housing costs. If you are interested in attending the workshop, make 
sure that your name, address and telephone number are on the 
appropriate local HUD office's mailing list so that you will be 
informed of the date, time and place of the workshop. Persons with 
disabilities should call the appropriate local HUD office to assure 
that any necessary arrangements can be made to enable their attendance 
and participation in the workshop.
    If you cannot attend the workshop, call the appropriate local HUD 
office if you have any questions regarding the submission of 
applications to that particular office and to request any materials 
distributed at the workshop.
    B. Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of the application. It is strongly recommended that 
potential applicants, especially those who may be applying for Section 
811 funding for the first time, tune in to this broadcast, if at all 
possible. Copies of the broadcast tapes are also available from the 
NOFA Information Center. For more information about the date and time 
of the broadcast, you should consult the HUD website at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    C. Related Programs. Section 811 funding for tenant-based 
assistance is administered by public housing agencies and nonprofit 
organizations through the Mainstream Housing Opportunities for Persons 
with Disabilities Program.
    D. Paperwork Reduction Act. The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2502-0462. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
number. Public reporting burden for the collection of information is 
estimated to average 35.92 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. 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 derived.

BILLING CODE 4210-01-C

[[Page 12054]]

[GRAPHIC] [TIFF OMITTED] TN08MR06.031


[[Page 12055]]



Continuum of Care (COC) Program

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title: Funding Availability for Continuum of 
Care (CoC) Homeless Assistance Programs.
    C. Announcement Type: Initial Announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-32. The OMB Approval number is pending.
    E. Catalog of Federal Domestic Assistance (CFDA) Numbers:
    1. 14.235, Supportive Housing Program (SHP)
    2. 14.238, Shelter Plus Care (S+C) and
    3. 14.249, Section 8 Moderate Rehabilitation Single Room Occupancy 
(SRO).
    F. Dates: Application Deadline Date: Applications should be 
submitted no later than May 25, 2006. Please see Section IV of this 
NOFA for application submission and timely receipt requirements.
    G. Additional Overview Content Information: 1. Purpose of the 
Programs: The purpose of the CoC Homeless Assistance Programs is to 
assist homeless persons to move to self-sufficiency and permanent 
housing.
    2. Available Funds: Approximately $1.2 billion is available for 
funding.
    3. Eligible Applicants: The program summary chart in Section 
III.A.3 identifies the eligible applicants for each of the three 
programs under the CoC Homeless Assistance Programs.
    4. Match: Matching funds are required from local, state, federal or 
private resources.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    1. Overview. The purpose of the CoC Homeless Assistance Programs is 
to reduce the incidence of homelessness in CoC communities by assisting 
homeless individuals and families to move to self-sufficiency and 
permanent housing. CoCs and their projects that sustain current 
successful interventions and advance the goals of ending chronic 
homelessness will be scored higher.
    2. The authorizing legislation and implementing regulations for all 
programs covered by this NOFA are outlined on the chart in Section 
III.A.3.
    3. Changes for 2006. This list includes all major changes to the 
CoC NOFA:
    a. Chart format--The 2006 CoC application has eliminated many 
required narratives and replaced them with tables that gather the same 
or similar information. This will reduce the time that CoCs and project 
sponsors will need to fill out the application, and it prepares for an 
electronic application in 2007. Because of the chart format, there is 
no longer a page limit on Exhibit 1. Tables have replaced narratives in 
the following areas of Exhibit 1:
    (1) The CoC's planning process;
    (2) The CoC's past performance in addressing chronic homelessness, 
and long-term strategy for ending chronic homelessness;
    (3) The CoC's coordination with other state and local plans;
    (4) The community's methods for conducting the unsheltered count, 
collecting annual data for the Housing Inventory Chart and Populations 
and Subpopulations Chart, and describing the basis for its 
determination of unmet need;
    (5) The CoC's project review and selection process; and
    (6) The CoC's progress and strategies for implementation of an HMIS 
in the community.
    b. The 2006 application has consolidated Exhibits 2, 2R, 3, 3R, and 
4 into a single Exhibit 2. This streamlined format will make it easier 
for project sponsors to complete the required forms.
    c. Exhibit 1 has been reorganized into four major divisions: Part 
I: CoC Organizational Structure, Part II: CoC Housing and Service 
Needs, Part III: CoC Strategic Planning, and Part IV: CoC Performance. 
Scoring of these sections will allocate 8, 12, 10, and 18 points to 
each part, respectively.
    d. Checkboxes regarding the frequency of meetings in the new 
``Groups and Meetings Chart'' in Exhibit 1 (CoC-C) replace the required 
listing of all CoC meeting dates.
    e. A new chart in Exhibit 1, ``CoC Governing Process'' focuses on 
the planning and decision-making structure of the CoC. HUD has 
requested that Congress pass legislation to consolidate the three CoC 
programs, and additional governance is intended to help CoCs implement 
this new legislation.
    f. The Project Leveraging Chart (CoC-S) in Exhibit 1 chart requires 
that CoCs enter a single number--the total leveraging amount requested 
by all projects on the priority chart. Each project will now submit 
specific leveraging amounts and details in Exhibit 2.
    g. The Chronic Homeless Progress Chart (CoC-V) in Exhibit 1 
emphasizes HUD's goal to end chronic homelessness by asking CoCs to 
provide information on funding of beds for the chronically homeless.
    h. The CoC 10-Year Plan Chart in Exhibit 1 eliminates narrative 
discussion of long-term planning and replaces it with a chart 
containing five HUD/national objectives. The chart is called the CoC 
10-Year Plan, Objectives, and Action Steps Chart. CoCs will list their 
action steps and measurable achievements for 1, 5, and 10 years with 
respect to these objectives.
    i. The Achievements Chart (CoC-U) in Exhibit 1 requires CoCs to 
report on their achievements with respect to their 2005 goals. In the 
2007 application, CoCs will be reporting on their achievements with 
respect to the five HUD/national objectives and action steps contained 
in the 2006 application.
    j. The CoC Section 3 Employment Policy Chart (CoC-AB) in Exhibit 1 
requires CoCs to identify the employment policies of projects in the 
Continuum to whom Section 3 of the Housing and Urban Development Act of 
1968 applies.
    k. Housing Emphasis points will be calculated using Shelter Plus 
Care renewal amounts as well as the housing activities in transitional 
and other permanent housing requests.
    l. HUD has streamlined this NOFA and removed those portions not 
immediately pertaining to the selection process. These include: program 
requirements upon conditional award (relating to coordination of 
mainstream resources and prevention strategies/discharge policies); 
renewals of Shelter Plus Care SRO projects expiring in 2006; and 
information about Annual Progress Reports. These sections are now 
located on the HUD web site at: www.hud.gov.
    m. The ``Questions and Answers Supplement'' contains additional 
information and should be thoroughly reviewed. It is now available on 
the web at www.hud.gov/offices/adm/grants/fundsavail.cfm.
    4. Developing and Coordinating CoC Systems: Developing a CoC system 
should be an inclusive process that brings together participants from 
the state, local, private and nonprofit sectors to reduce homelessness. 
This NOFA emphasizes HUD's determination to integrate and align plans, 
including U.S. Interagency Council on Homelessness-sponsored 
jurisdictional state and city ten-year plans (jurisdictional ten-year 
plans) and Consolidated Plans, into the CoC plans. These plans serve as 
the vehicle for a community to comprehensively identify each of its 
needs and to coordinate a plan of action for addressing them. For a 
community to successfully address the complex and interrelated problems

[[Page 12056]]

related to homelessness, the community must marshal its varied 
resources--community and economic development resources, social service 
resources, business, health care, philanthropy, law enforcement, and 
housing and homeless assistance resources--and use them in a 
coordinated and effective manner.
    5. CoC Components. A CoC system consists of five basic components, 
as follows:
    a. A system of outreach, engagement, and assessment for determining 
the needs and conditions of an individual or family who is homeless, 
and necessary support to identify, prioritize, and respond to persons 
who are chronically homeless;
    b. Emergency shelters with appropriate supportive services to help 
ensure that homeless individuals and families receive adequate 
emergency shelter and referral to necessary service providers or 
housing search counselors;
    c. Transitional housing with appropriate supportive services to 
help homeless individuals and families prepare to make the transition 
to permanent housing and independent living; and
    d. Permanent housing, or permanent supportive housing, to help meet 
the long-term needs of homeless individuals and families.
    e. Prevention strategies play an integral role in a community's 
plan to eliminate homelessness by effectively intervening for persons 
in public systems--e.g., corrections, foster care, mental health, and 
other institutions--so that they do not enter the homeless system. By 
law, prevention activities are ineligible activities in the three 
programs for which funds are awarded in this competition but are 
eligible for funding under the Emergency Shelter Grants block grant 
program.
    6. CoC Planning Process. A CoC system is developed through a 
community-wide or region-wide process involving nonprofit organizations 
(including those representing persons with disabilities), government 
agencies, public housing agencies, community and faith-based 
organizations, other homeless providers, service providers, housing 
developers, private health care organizations, businesses and business 
associations, law enforcement and corrections agencies, school systems, 
private funding providers, and homeless or formerly homeless persons. A 
CoC system should address the specific needs of each homeless 
subpopulation: those experiencing chronic homelessness, veterans, 
persons with serious mental illnesses, persons with substance abuse 
issues, persons with HIV/AIDS, persons with co-occurring diagnoses (may 
include diagnoses of multiple physical disabilities or multiple mental 
disabilities or a combination of these two types), victims of domestic 
violence, youth, and any others. To ensure that the CoC system 
addresses the needs of homeless veterans, it is particularly important 
that you involve veteran service organizations with specific experience 
in serving homeless veterans.
    7. CoC Funding is provided through the programs briefly described 
below. Please refer to the CoC Homeless Assistance Programs Chart in 
Section III.A.3 for a more detailed description of each program:
    a. The Supportive Housing Program (SHP) provides funding for the 
development of transitional and permanent supportive housing and 
services that help homeless persons transition from homelessness to 
living as independently as possible. Some services are also funded to 
assist in achieving the goal of self-sufficiency.
    b. The Shelter Plus Care (S+C) Program provides funding for rental 
assistance and requires grantees to identify service dollars. This 
gives applicants flexibility in devising appropriate housing and 
supportive services for homeless persons with disabilities.
    c. The Section 8 Moderate Rehabilitation Single Room Occupancy 
(SRO) Program provides rental assistance on behalf of homeless 
individuals in connection with the moderate rehabilitation of SRO 
dwellings.
    8. Glossary of Terms. a. Applicant. An entity that applies to HUD 
for funds. See the CoC Homeless Assistance Programs Chart in Section 
III.A.3 for a list of entities that are eligible. An applicant must 
submit a SF-424. If selected for funding, the applicant becomes the 
grantee and is responsible for the overall management of the grant, 
including drawing grant funds and distributing them to project 
sponsors. The applicant is also responsible for supervision of project 
sponsor compliance with grant requirements. The applicant may also be a 
project sponsor.
    b. Applicant Certification. The form, required by law, in which an 
applicant certifies that it will adhere to certain statutory 
requirements, such as the Civil Rights Act of 1964.
    c. Chronically Homeless Person. An unaccompanied homeless 
individual with a disabling condition who has either been continuously 
homeless for a year or more OR has had at least four (4) episodes of 
homelessness in the past three (3) years. A disabling condition is 
defined as ``a diagnosable substance use disorder, serious mental 
illness, developmental disability, or chronic physical illness or 
disability, including the co-occurrence of two or more of these 
conditions.'' In defining the chronically homeless, the term 
``homeless'' means ``a person sleeping in a place not meant for human 
habitation (e.g., living on the streets) or in an emergency homeless 
shelter.''
    d. Consolidated Plan. A long-term housing and community development 
plan developed by state and local governments and approved by HUD. The 
Consolidated Plan contains information on homeless populations and 
should be coordinated with the CoC plan. It can be a source of 
information for the Unmet Need sections of the Housing Activities 
Chart. The plan contains both narratives and maps, the latter developed 
by localities using software provided by HUD.
    e. Consolidated Plan Certification. The form, required by law, in 
which a state or local official certifies that the proposed activities 
or projects are consistent with the jurisdiction's Consolidated Plan 
and, if the applicant is a state or unit of local government, that the 
jurisdiction is following its Consolidated Plan.
    f. Continuum of Care (CoC). A collaborative funding approach that 
helps communities plan for and provide a full range of emergency, 
transitional, and permanent housing and service resources to address 
the various needs of homeless persons.
    g. Continuum of Care Hold Harmless Amount. This is the total of the 
one-year amount of all SHP projects eligible for renewal. CoCs shall 
receive the higher of: (1) The preliminary pro rata need (PRN) or (2) 
the CoC hold harmless amount. CoCs receiving the CoC hold harmless 
amount have the opportunity to reallocate their PRN funds in order to 
create new permanent supportive housing projects.
    h. Current Inventory. A complete listing of the community's 
existing beds and supportive services.
    i. Homeless Management Information Systems (HMIS). An HMIS is a 
computerized data collection application designed to capture client-
level information over time on the characteristics and service needs of 
men, women, and children experiencing homelessness, while also 
protecting client confidentiality. It is designed to aggregate client-
level data to generate an unduplicated count of clients served within a 
community's system of homeless services. An HMIS may also cover a 
statewide or regional area, and include several CoCs. The HMIS can

[[Page 12057]]

provide data on client characteristics and service utilization.
    j. Homeless Person means a person sleeping in a place not meant for 
human habitation or in an emergency shelter; and a person in 
transitional housing for homeless persons who originally came from the 
street or an emergency shelter. For a more detailed discussion, see the 
Questions and Answers Supplement available on the web at www.hud.gov/offices/adm/grants/fundsavail.cfm. The programs covered by this NOFA 
are not for populations who are at risk of becoming homeless.
    k. NOFA. Notice of Funding Availability, published in the Federal 
Register to announce available funds and application requirements.
    l. Private Nonprofit Status. Private nonprofit status is documented 
by submitting either: (1) A copy of the Internal Revenue Service (IRS) 
ruling providing tax-exempt status under Section 501(c)(3) of the IRS 
Code; or (2) documentation showing that the applicant is a certified 
United Way agency; or (3) a certification from a designated official of 
the organization that no part of the net earnings of the organization 
inures to the benefit of any member, founder, contributor, or 
individual; that the organization has a voluntary board; that the 
organization practices nondiscrimination in the provision of 
assistance; and that the organization has a functioning accounting 
system that provides for each of the following (mention each in the 
certification):
    (1) Accurate, current and complete disclosure of the financial 
results of each federally sponsored project.
    (2) Records that identify adequately the source and application of 
funds for federally sponsored activities.
    (3) Effective control over and accountability for all funds, 
property and other assets.
    (4) Comparison of outlays with budget amounts.
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the use 
of the funds for program purposes.
    (6) Written procedures for determining the reasonableness, 
allocability and allowability of costs.
    (7) Accounting records, including cost accounting records, which 
are supported by source documentation.
    m. Project Sponsor. The organization that is responsible for 
carrying out the proposed project activities. A project sponsor does 
not submit a SF-424, unless it is also the applicant. To be eligible to 
be a project sponsor, you must meet the same program eligibility 
standards as applicants do, as outlined in Section III.A.3, except in 
the Sponsor-based rental assistance (SRA) component of the S+C Program. 
Eligible sponsors for the SRA component are statutorily precluded from 
applying for S+C funding.
    n. Public Nonprofit Status. Public nonprofit status is documented 
for community mental health centers by including a letter or other 
document from an authorized official stating that the organization is a 
public nonprofit organization.
    o. SF 424. The application cover sheet required to be submitted by 
applicants requesting HUD Federal Assistance.
    p. Safe Haven. A Safe Haven is a form of supportive housing funded 
and administered under the Supportive Housing Program serving hard-to-
reach homeless persons with severe mental illness and other 
debilitating behavioral conditions who are on the streets and have been 
unwilling or unable to participate in supportive services. Safe Havens 
may be transitional supportive housing, or permanent supportive housing 
if it has the characteristics of permanent housing and requires 
participants to sign a lease.
    q. Samaritan Housing Initiative. The Samaritan Initiative (formerly 
known as the Permanent Housing Bonus) will be integrated into this NOFA 
as part of the larger CoC process and is only for projects serving 
exclusively chronically homeless persons. It is 15 percent of a CoC's 
preliminary pro rata need amount or $6 million, whichever is less. 
Applicants may use no more than 20 percent of this bonus for case 
management costs to enable program participants to remain successfully 
housed. See Section V.A.2.b(3) for additional information on this 
subject.
    9. Applicant Roles and Responsibilities. An applicant will be 
responsible for the overall management and administration of a 
particular grant, including drawing down the grant funds from HUD, 
distributing them to the project sponsors, overseeing project sponsors, 
reporting to HUD, providing performance data to the CoC for community-
level analysis, and collecting information to provide the CoC with 
counts of the homeless through HMIS. Applicants can submit applications 
for projects on behalf of project sponsors, who will actually carry out 
the proposed project activities. Applicants can also carry out their 
own projects. In these cases, the applicant is responsible for both 
administering and managing a grant (as the grantee) and carrying out 
the project activities (as the project sponsor).

II. Award Information

    A. Amount Allocated. Approximately $1.2 billion is available for 
this CoC competition in FY 2006. Any unobligated funds from previous 
CoC competitions or additional funds that may become available as a 
result of deobligations or recaptures from previous awards or budget 
transfers may be used in addition to FY 2006 appropriations to fund 
applications submitted in response to this NOFA. The FY 2006 HUD 
Appropriations Act requires HUD to obligate all CoC homeless assistance 
funds by September 30, 2008. These funds will remain available for 
expenditure for five (5) years following that date. The only exception 
is that $20 million will remain available until expended for 10-year 
term projects.
    1. Distribution of Funds: HUD will not specify amounts for each of 
the three programs. Instead, the distribution of funds among the three 
programs will depend largely on locally determined priorities and 
overall demand.
    a. Permanent Housing Requirement. Local priorities notwithstanding, 
the FY 2006 HUD Appropriations Act requires that not less than 30 
percent of this year's Homeless Assistance Grants (HAG) appropriation, 
excluding amounts provided for one-year renewals under the Shelter Plus 
Care Program, must be used for permanent housing projects for all 
homeless populations.
    b. Chronic Homelessness Requirement. The Administration has 
established as a policy priority the goal of ending chronic 
homelessness. CoCs are strongly encouraged to use the funds available 
in this NOFA to target persons experiencing chronic homelessness in 
their communities. HUD encourages communities to select projects that 
will contribute to the achievement of this important goal. The CoC 
strategy to end chronic homelessness is now referred to as the CoC Ten-
Year Plan (see Chart N in Exhibit 1), and the 2006 application adds 
annual action plans and performance measures into the plan. CoCs should 
integrate their CoC 10-year plans with other plans, including 
jurisdictional ten-year plans and applicable Consolidated Plans. To 
work towards this goal, HUD is targeting the Samaritan Initiative for 
projects that exclusively serve individuals who are experiencing 
chronic homelessness. In addition, at least 10 percent of the 
appropriation will be awarded to new or renewal, transitional or 
permanent housing projects where at least 70 percent of the project's 
clients are expected to be chronically homeless (as defined by HUD) 
immediately prior to

[[Page 12058]]

entry into the project. Housing projects include: SHP transitional 
housing, permanent housing and Safe Havens; S+C; and SRO projects. 
Since the housing funding allocation set-aside requirements are 
expected to continue in future competitions and may affect project 
funding selections, you are strongly encouraged to begin planning for 
new housing projects, particularly those serving individuals 
experiencing chronic homelessness, and include them as part of your 
submission in this competition. See Sections V.B.3.a and V.B.3.b of 
this NOFA for additional information on the permanent housing and 
chronic homeless requirements.
    c. Lower-rated SHP Renewals. HUD reserves the authority to 
conditionally select for one year of funding lower-rated eligible SHP 
renewal projects that are assigned 40 need points in a CoC application 
receiving at least 25 points under the CoC scoring factor that would 
not otherwise receive funding for these projects. (See Sections V.A.2.a 
and V.A.2.b of this NOFA for information on project rating and 
scoring.) Therefore, the projects must receive a minimum score of 65 
points. Although these lower-rated SHP renewal projects will have 
scored below the otherwise recognized funding line, their funding 
allows homeless persons to continue to be served and move towards self-
sufficiency. Not renewing these projects would likely result in the 
closure of these projects and displacement of the homeless people being 
served.
    2. Prioritizing Projects for Funding. Project priority decisions 
are best made by members of the local community, including local 
government and community and faith-based organizations, which represent 
the various economic, housing and social resources within that 
community. For example, if HUD has funds available only to award 8 of 
10 proposed projects, then it will award funding to the first 8 
eligible projects listed, except as may be necessary to achieve the 30 
percent overall permanent housing and the 10 percent chronic 
homelessness requirements; see Sections V.B.3.a. and V.B.3.b. of this 
NOFA for additional information. In such cases, higher priority non-
permanent housing projects may be de-selected to fund lower priority 
permanent housing projects and housing projects predominantly serving 
those persons experiencing chronic homelessness.
    3. Grant Term. See chart in Section III.A.3. of this NOFA for 
information on the term of assistance for each of the three CoC 
programs covered in this NOFA.

III. Eligibility Information

A. Eligible Applicants

    1. Eligible applicants for each program are those identified in the 
following chart.
    2. Renewal Applicants. As a project applicant, you are eligible to 
apply for renewal of a grant only if you have executed a grant 
agreement for the project directly with HUD for SHP or S+C programs 
under a CoC NOFA. If you are a project sponsor or sub-recipient who has 
not signed such an agreement, you are not eligible to apply for renewal 
of these projects.

                                3. Continuum of Care Homeless Assistance Programs
----------------------------------------------------------------------------------------------------------------
               Elements                   Supportive housing       Shelter plus care          Section 8 SRO
----------------------------------------------------------------------------------------------------------------
Authorizing legislation..............  Subtitle C of Title IV   Subtitle F of Title IV   Section 441 of the
                                        of the McKinney-Vento    of the McKinney-Vento    McKinney-Vento
                                        Homeless Assistance      Homeless Assistance      Homeless Assistance
                                        Act, 42 U.S.C. 11381.    Act, 42 U.S.C. 11403.    Act, 42 U.S.C. 11401.
Implementing regulations.............  24 CFR part 583........  24 CFR part 582........  24 CFR part 882,
                                                                                          subpart H, except that
                                                                                          all persons receiving
                                                                                          rental assistance must
                                                                                          meet the McKinney-
                                                                                          Vento definition of
                                                                                          homelessness.
Eligible applicant(s)................   States........   States........   PHAs
                                        Units of         Units of         Private
                                        general local            general local            nonprofit
                                        government.              government.              organizations.
                                        Special          PHAs..........
                                        purpose units of
                                        government, e.g. PHAs.
                                        Private
                                        nonprofit
                                        organizations.
                                        Community
                                        Mental Health Centers
                                        that are public
                                        nonprofit
                                        organizations.
Eligible components..................   Transitional     Tenant-based     SRO housing
                                        housing.                 housing.
                                        Permanent        Sponsor-based
                                        housing for disabled     housing.
                                        persons only.            Project-based
                                                                 housing.
                                        Supportive       SRO-based
                                        services not in          housing.
                                        conjunction with
                                        supportive housing.
                                        Safe Havens...
                                        Innovative
                                        supportive housing.
                                        Homeless Mngt.
                                        Info. System (HMIS).
Eligible activities See footnotes 1,    Acquisition...   Rental           Rental
 2 and 3.                               Rehabilitation   assistance.              assistance.
                                        New
                                        construction.
                                        Leasing.......
                                        Operating
                                        costs.
                                        Supportive
                                        services.
Eligible populations See footnote 2..   Homeless         Homeless         Homeless
                                        individuals and          disabled individuals.    individuals.
                                        families.                Homeless
                                                                 disabled individuals &
                                                                 their families.
Populations given special               Homeless        Homeless persons who     N/A.
 consideration.                         persons with             are seriously mentally
                                        disabilities.            ill.
                                        Homeless        Have chronic problems
                                        families with children.  with alcohol and/or
                                                                 drugs.
                                       .......................  Have AIDS & related
                                                                 diseases.

[[Page 12059]]

 
Initial term of assistance...........  2 or 3 years for new     5 years: TRA, SRA, and   10 years.
                                        SHP.                     PRA without rehab.
                                       1, 2 or 3 years for new  10 years: SRO, and PRA
                                        HMIS.                    with rehab .
----------------------------------------------------------------------------------------------------------------
Footnote 1: Homeless prevention activities are statutorily ineligible under these programs.
Footnote 2: Persons at risk of homelessness are statutorily ineligible for assistance under these programs.
Footnote 3: Acquisition, construction, rehabilitation, leasing, and operating costs for emergency shelters are
  statutorily ineligible for assistance under Shelter Plus Care and Section 8 SRO.

B. Matching (Cost Sharing)

    You must match Supportive Housing Program funds provided for 
acquisition, rehabilitation, and new construction with an equal amount 
of cash from other sources. Since SHP by statute can pay no more than 
75 percent of the total operating budget for supportive housing, you 
must provide at least a 25 percent cash match of the total annual 
operating costs. In addition, for all SHP funding for supportive 
services and Homeless Management Information Systems (HMIS) you must 
provide a 25 percent cash match. This means that of the total 
supportive services budget line item, no more than 80 percent may be 
from SHP grant funds. The cash source may be your agency, other Federal 
programs, state and local governments, or private resources.
    You must match rental assistance provided through the Shelter Plus 
Care Program in the aggregate with supportive services. Shelter Plus 
Care requires a dollar for dollar match; the recipient's match source 
can be cash or in kind.
    Documentation of the match requirement must be maintained in the 
grantee's financial records on a grant-specific basis.

C. Other

    1. Eligible Activities. Eligible activities for the SHP, S+C, and 
SRO Programs are outlined in the preceding CoC Homeless Assistance 
Programs Chart at Section III.A.3.
    2. Threshold Requirements.
    a. Project Eligibility Threshold. HUD will review projects to 
determine if they meet the following eligibility threshold 
requirements. If HUD determines that these standards are not met by a 
specific project or activity, the project or activity will be rejected 
from the competition.
    (1) Applicants and sponsors must meet the eligibility requirements 
of the specific program as described in program regulations and provide 
evidence of eligibility and appropriate certifications as specified by 
the attachments in Section VIII.
    (2) The population to be served must meet the eligibility 
requirements of the specific program as described in the program 
regulations, and the application must clearly establish eligibility of 
program participants to be served pertaining to homelessness and 
disability status.
    (3) The only persons who may be served by new and renewal permanent 
housing projects are those who come from the streets, emergency 
shelters, or transitional housing who originally came from the streets 
or emergency shelter. As participants leave currently operating 
projects, participants who meet this new eligibility standard must 
replace them.
    (4) Projects that involve rehabilitation or new construction must 
meet the accessibility requirements of Section 504 of the 
Rehabilitation Act of 1973, the design and construction requirements of 
the Fair Housing Act and the accessibility requirements of the 
Americans with Disabilities Act, as applicable.
    (5) The project must be cost-effective, including costs associated 
with construction, operations and supportive services with such costs 
not deviating substantially from the norm in that locale for the type 
of structure or kind of activity.
    (6) For those applicants applying for the Innovative component of 
SHP, whether or not a project is considered innovative will be 
determined on the basis that the particular approach proposed is new 
and can be replicated.
    (7) Renewal applications should be submitted as part of a CoC 
application, and must either be listed on the priority list or 
accompanied by a certification from the CoC saying that they have 
determined that the project is still needed.
    (8) Under the Sponsor-based rental assistance S+C component, an 
applicant must subcontract the funding awarded with an eligible 
sponsor: a private nonprofit organization or a community mental health 
agency established as a public nonprofit organization, that owns or 
leases the housing where participants will reside.
    (9) For the Section 8 SRO program, only individuals meeting HUD's 
definition of homeless are eligible to receive rental assistance. 
Therefore, any individual occupying a unit at commencement of the 
unit's rehabilitation will not receive rental assistance if they return 
to their unit (or any other) upon completion of its rehabilitation.
    (10) Applicants agree to participate in a local HMIS system when it 
is implemented in their community.
    b. Project Quality Threshold. HUD will review projects to determine 
if they meet the following quality threshold requirements with clear 
and convincing evidence. A S+C or SHP project renewal will be 
considered as having met these requirements through its previously 
approved grant application unless information to the contrary is 
received. The housing and services proposed must be appropriate to the 
needs of the program participants and the community. HUD will assess 
the following:
    (1) The type, scale and general location of the housing fit the 
needs of the participants and that the housing is readily accessible to 
community amenities.
    (2) That all of the proposed participants come from the streets, 
homeless shelters or transitional housing for homeless persons.
    (3) The type, scale and location of the supportive services fit the 
needs of the participants and the mode of transportation to those 
services is described.
    (4) The specific plan for ensuring clients will be individually 
assisted to obtain the benefits of the mainstream health, social 
service, and employment programs for which they are eligible is 
provided.
    (5) How participants are helped to obtain and remain in permanent 
housing is described.
    (6) How participants are assisted to both increase their incomes 
and live independently using mainstream housing and service programs is 
described.
    (7) Applicants and sponsors must evidence satisfactory performance 
for existing grant(s).
    c. Project Renewal Threshold. Your local needs analysis process 
must

[[Page 12060]]

consider the need to continue funding for projects expiring in calendar 
year 2007. HUD will not fund competitive renewals out of order on the 
priority list except as may be necessary to achieve the 30 percent 
overall permanent housing requirement and the 10 percent requirement 
for individuals experiencing chronic homelessness requirement. It is 
important that SHP renewals and S+C non-competitive renewals meet 
minimum project eligibility, capacity and performance standards 
identified in this NOFA or they will be rejected from consideration for 
either competitive or non-competitive funding.
    d. Civil Rights Thresholds: Applicants and the project sponsors 
must be in compliance with the threshold requirements of the General 
Section.
    3. Program Requirements.
    a. Projects funded under this NOFA shall operate in a fashion that 
complies with applicable civil rights laws and Executive Orders, 
including the requirement to Affirmatively Further Fair Housing (AFFH), 
and does not deprive any individual of any right protected by the Fair 
Housing Act (42 U.S.C. 3601-19), Section 504 of the Rehabilitation Act 
of 1973 (29 U.S.C. 794), the Americans with Disabilities Act of 1990 
(42 U.S.C. 12101 et seq.), Title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d), Section 109 of Title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5309), or the Age Discrimination Act 
of 1975 (42 U.S.C. 6101).
    b. Local Resident Employment. To the extent that any housing 
assistance (including rental assistance) funded through this NOFA is 
used for housing rehabilitation (including reduction and abatement of 
lead-based paint hazards, but excluding routine maintenance, repair, 
and replacement) or housing construction, then it is subject to section 
3 of the Housing and Urban Rehabilitation Act of 1968, and the 
implementing regulations at 24 CFR part 135. Section 3, as amended, 
requires that economic opportunities generated by certain HUD financial 
assistance for housing and community development programs shall, to the 
greatest extent feasible, be given to low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing, and to businesses that provide economic opportunities for 
these persons.
    c. Relocation. The SHP, S+C, and SRO programs are subject to the 
requirements of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, as amended (URA). These requirements 
are explained in HUD Handbook 1378, Tenant Assistance, Relocation and 
Real Property Acquisition. Also see General Section.
    d. Environmental Reviews. All CoC assistance is subject to the 
National Environmental Policy Act and applicable related Federal 
environmental authorities. Conditional selection of projects under the 
CoC Homeless Assistance competition is subject to the environmental 
review requirements of 24 CFR 582.230, 583.230 and 882.804(c), as 
applicable. The recipient, its project partners and their contractors 
may not acquire, rehabilitate, convert, lease (under S+C/TRA where 
participants are required to live in a particular structure or area as 
described in Section III.C.3.h(3)(a)), repair, dispose of, demolish or 
construct property for a project under this CoC NOFA, or commit or 
expend HUD or local funds for such eligible activities, until the 
responsible entity has completed the environmental review procedures 
required by Part 58 and the environmental certification and Request for 
Release of Funds (RROF) have been approved or HUD has performed an 
environmental review under Part 50 and the recipient has received HUD 
approval of the property. The expenditure or commitment of Continuum of 
Care assistance or nonfederal funds for such activities prior to this 
HUD approval may result in the denial of assistance for the project 
under consideration.
    e. CoC Geographic Area. In deciding what geographic area you will 
cover in your CoC strategy, you should be aware that the single most 
important factor in being awarded funding under this competition will 
be the strength of your CoC strategy when measured against the CoC 
rating factors described in this NOFA. When you determine what 
jurisdictions to include in your CoC strategy area, include only those 
jurisdictions that are fully involved in the development and 
implementation of the CoC strategy.
    The more jurisdictions you include in the CoC strategy area, the 
larger the pro rata need share that will be allocated to the strategy 
area (as described in Section V.B.2.b. of this NOFA). If you are a 
rural county, you may wish to consider working with larger groups of 
contiguous counties to develop a region-wide or multi-county CoC 
strategy covering the combined service areas of these counties. The 
areas covered by CoC strategies should not overlap.
    f. Expiring/Extended Grants. If your SHP or S+C Program grant will 
be expiring in calendar year 2007, or if your S+C Program grant has 
been extended beyond its original five-year term and is projected to 
run out of funds in FY 2007, you may apply as a renewal under this CoC 
NOFA to get continued funding.
    g. Participation in Energy Star. In keeping with the 
Administration's policy priority of promoting energy efficient housing 
while protecting the environment, applicants applying for new 
construction or rehabilitation funding, who maintain housing or 
community facilities or provide services in those facilities, are 
encouraged to promote energy efficiency and are specifically encouraged 
to purchase and use Energy Star-labeled products. All applicants must 
complete the questions on the Energy Star Chart (Chart CoC-AA) in 
Exhibit 1. Refer to the General Section for detailed information about 
this requirement.
    h. Program-Specific Requirements. Please be advised that where an 
applicant for the SHP funding is a state or unit of general local 
government that utilizes one or more nonprofit organizations to 
administer the homeless assistance project(s), administrative funds 
provided as part of the SHP grant must be passed on to the nonprofit 
organization(s) in proportion to the administrative burden borne by 
them for the SHP project(s). HUD will consider states or units of 
general local government that pass on at least 50 percent of the 
administrative funds made available under the grant as having met this 
requirement. This requirement does not apply to either the SRO Program, 
since only PHAs administer the SRO rental assistance, or to the S+C 
Program, since paying the costs associated with the administration of 
these grants is ineligible by regulation.
    HUD will not award funds to rehabilitate leased property. In 
addition, SHP funds may not be used to lease units or structures owned 
by the project sponsor, the selectee, or their parent organizations. 
This includes organizations that are members of a general partnership 
where the general partnership owns the structure.
    (1) SHP--New Projects:
    (a) Please note that the grant term for new SHP projects is two (2) 
or three (3) years.
    (b) HUD will require recordation of a HUD-approved use and 
repayment covenant (a form may be obtained from your field office) for 
all grants of funds for acquisition, rehabilitation or new 
construction. The covenant will enforce the use and repayment 
requirements found at section 423(b)(1) and (c) of the McKinney-Vento 
Act and must be approved by HUD counsel before execution and 
recordation. Proof of

[[Page 12061]]

recordation must be provided to HUD counsel before funds for 
rehabilitation or new construction may be drawn down.
    (c) All project sponsors must meet applicant eligibility standards 
as described in Section III.A.3. As in past years, HUD will review 
sponsor eligibility as part of the threshold review process. Project 
sponsors for new projects are required to submit evidence of their 
eligibility with the application (See Section IV.B.1.b.(3)(a) and 
Section I.A.8.n).
    (2) SHP--Renewal Projects.
    (a) For the renewal of a SHP project, you may request funding for 
one (1), two (2) or three (3) years.
    (b) The total request for each renewable project cannot exceed the 
Average Yearly Amount received in your current grant for that project. 
Within that total request, the administrative amount must be the exact 
amount awarded in the previous grant. An exception to this rule is 
grants being renewed whose original expiring award included ``hard'' 
development costs (acquisition, new construction, and rehab): these 
must, in the current competition, recalculate their administrative 
allocation not to exceed five percent of the Average Yearly Amount of 
the activities being renewed. To calculate administrative amounts for 
activities in all new projects and renewal projects with these ``hard'' 
development costs, calculate the subtotal of all requested amounts for 
activities. Administrative costs cannot exceed 5% of this subtotal. For 
example, if a project requests $60 for supportive services and $40 for 
operating expenses, the maximum amount of administration dollars the 
project can request is $5. Only leasing, operating, supportive 
services, and administration costs may be renewed. Applicants proposing 
both to renew an existing project and to expand the number of units or 
number of participants receiving services in that grant must submit a 
new project proposal for the expansion portion of the project. HMIS 
activities being renewed should be included on the HMIS budget chart.
    (c) HUD will recapture SHP grant funds remaining unspent at the end 
of the previous grant period when it renews a grant.
    (3) S+C--New Projects.
    (a) A project may not include more than one component, e.g., 
combining Tenant-based Rental Assistance (TRA) with Sponsor-based 
Rental Assistance (SRA) is prohibited within the same grant. Under the 
TRA component, in order to help provide supportive services or for the 
purposes of controlling housing costs, a grantee may require 
participants to live in a particular structure for the first year of 
assistance or to live in a particular area for the entire rental 
assistance period. Where this option is exercised, an environmental 
review and clearance must be performed prior to any commitment to lease 
a particular structure or unit for participant occupancy as described 
in Section III.C.3.d, Environmental Reviews.
    (b) S+C/SRO Component. If you are a state or a unit of general 
local government, you must subcontract with a public housing agency to 
administer the S+C assistance. Also, no single project may contain more 
than 100 units.
    (c) S+C SRA Component. Project sponsors must submit proof of their 
eligibility to serve as a project sponsor.
    (4) S+C Renewal Projects. HUD encourages the consolidation of 
appropriate S+C renewal grants when the grants are under the same 
grantee, same component and expire in the same year. However, renewal 
requests for expiring S+C grants that have not yet been combined should 
still be listed individually on the CoC priority list and will be 
awarded as individual renewal grants. Where the grantee wishes to 
consolidate the renewal grants, this action will be subsequently 
accomplished by the field office at the point of renewal grant 
agreement execution. The field office will receive instructions for 
this process in the S+C Operating Procedures guidance for 2006 awards.
    (a) For the renewal of a S+C project, including S+C SROs, the grant 
term will be one (1) year, as specified by Congress. For the renewal of 
S+C rental assistance that is Tenant-based (TRA), Sponsor-based (SRA), 
Project-based (PRA), or Single Room Occupancy-based (SRO), you may 
request up to the amount determined by multiplying the number of units 
under lease at the time of your application for renewal funding by the 
applicable 2006 Fair Market Rent(s) by 12 months. Current FMRs can be 
found at www.hudclips.org. For S+C grants having been awarded one year 
of renewal funding in 2005, the number of units requested for renewal 
this year must not exceed the number of units funded in 2005. As is the 
case with SHP, HUD will recapture S+C grant funds remaining unspent at 
the end of the previous grant period when it renews a grant. The one-
year term of non-competitively awarded S+C renewal projects may not be 
extended.
    (b) Under the FY 2006 HUD Appropriations Act, eligible S+C Program 
grants whose terms are expiring in 2007 and S+C Program grants that 
have been extended beyond their original five-year terms but which are 
projected to run out of funds in 2007, will be renewed for one year 
provided that they are determined to be needed by the CoC, either as 
evidenced by their inclusion on the priority chart or as accompanied by 
a certification from the CoC. These projects must also demonstrate that 
their applicant and sponsor meet eligibility, capacity and performance 
requirements described in Section V.A.1 of this NOFA. Non-competitive 
S+C renewals should be submitted by the application deadline. These S+C 
renewal projects will not count against a continuum's pro rata need 
amount, but, if listed on the CoC Priority Chart, should be numbered, 
continuing the priority sequence. On the other hand, no community hold 
harmless amount will be computed for any CoC using S+C renewal amounts 
since these projects are being funded outside of the competition.
    (5) Section 8 Moderate Rehabilitation SRO Program--New Projects. As 
an applicant, the following limitations apply to the Section 8 SRO 
program:
    (a) SRO assistance may not be provided to more than 100 units in 
any structure.
    (b) Under 24 CFR 882.802, applicants that are private nonprofit 
organizations must subcontract with a public housing agency to 
administer the SRO assistance.
    (c) Under 24 CFR 882.802, rehabilitation must involve a minimum 
expenditure of $3,000 for a unit, including its prorated share of work 
to be accomplished on common areas or systems, to upgrade conditions to 
comply with HUD's physical condition standards in 24 CFR part 5, 
subpart G.
    (d) Under section 441(e) of the McKinney-Vento Act and 24 CFR 
882.805(d)(1), HUD publishes the SRO per unit rehabilitation cost limit 
each year to take into account changes in construction costs. This cost 
limitation applies to eligible rehabilitation costs that may be 
compensated for in the Housing Assistance Payments (HAP) contract 
rents. For purposes of Fiscal Year 2006 funding, the cost limitation is 
raised from $20,000 to $20,500 per unit to take into account increases 
in construction costs during the past 12-month period.
    (e) The SRO Program is subject to the Federal standards at 24 CFR 
part 882, subpart H.
    (f) Individuals assisted through the SRO Program must meet the 
definition of homeless individual found at section 103 of the McKinney-
Vento Act.

[[Page 12062]]

    (g) Resources outside the program pay for the rehabilitation, and 
rehabilitation financing. The rental assistance covers operating 
expenses of the SRO housing, including debt service for rehabilitation 
financing. Units may contain food preparation or sanitary facilities or 
both.
    (6) Section 8 Moderate Rehabilitation SRO Program--Renewals. This 
program section of the NOFA is not applicable to the renewal of funding 
under the Section 8 SRO program. The renewal of expiring Section 8 SRO 
projects is not part of the competitive CoC NOFA process. Rather, 
expiring Section 8 SROs will be identified at the beginning of the 
applicable year by the public housing agency and HUD field office. One-
year renewal funds for expiring Section 8 SRO HAP contracts will be 
provided by HUD under a separate, non-competitive process. For further 
guidance on Section 8 SRO renewals, please contact your local HUD field 
office.
    i. Timeliness Standards. As an applicant, you are expected to 
initiate your approved projects promptly in accordance with Section 
VI.A of this NOFA. In addition, HUD will take action if you fail to 
satisfy the following timeliness standards:
    (1) SHP: HUD will deselect your award if you do not demonstrate 
site control within one (1) year of the date of your grant award 
letter, as required by the McKinney-Vento Act (see 42 USCs 11386(a)(3)) 
and implemented in program regulations at 24 CFR 583.320(a). Subsequent 
loss of site control beyond the 12-month statutory limit will be cause 
for cancellation of the award and recapture of funds. HUD may 
deobligate SHP funds if the following additional timeliness standards 
are not met:
    (a) You must begin construction activities within eighteen (18) 
months of the date of HUD's grant award letter and complete them within 
thirty-six (36) months after that notification.
    (b) For activities that cannot begin until construction activities 
are completed, such as supportive service or operating activities that 
will be conducted within the building being rehabilitated or newly 
constructed, you must begin these activities within three (3) months 
after you complete construction.
    (c) You must begin all activities that may proceed independent of 
construction activities, including HMIS, within twelve (12) months of 
the date of HUD's grant award letter. HUD may reduce a grant agreement 
term to one (1) year where implementation delays have reduced the 
amount of funds that reasonably can be used in the original term.
    (2) S+C Except SRO Component. HUD may deobligate S+C funds if you 
do not meet the following timeliness standards:
    (a) For Tenant-based Rental Assistance, for Sponsor-based Rental 
Assistance, and for Project-based Rental Assistance without 
rehabilitation, you must start the rental assistance within twelve (12) 
months of the date of HUD's grant award letter.
    (b) For Project-based Rental Assistance with rehabilitation, you 
must complete the rehabilitation within twelve (12) months of the date 
of HUD's grant award letter.
    (3) Section 8 Moderate Rehabilitation SRO Program and SRO Component 
of the S+C Program. For projects carried out under the Section 8 SRO 
program and the SRO component of the S+C program, the rehabilitation 
work must be completed and the HAP contract executed within twelve (12) 
months of execution of the Annual Contributions Contract. HUD may 
reduce the number of units or the amount of the annual contribution 
commitment if, in HUD's determination, the Public Housing Agency fails 
to demonstrate a good faith effort to adhere to this schedule.

IV. Application and Submission Information

    A. Application Package. A checklist of forms needed to complete the 
application is provided, as described in Section VIII below. Exhibits 
1, 2, and the Applicant Certifications are attachments. The Exhibits, 
Geographic Codes, Initial Pro Rata Need Amounts, Applicant 
Certifications, and the Questions and Answers Supplement can be 
accessed at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. An 
applicant may also obtain a copy of the General Section and this NOFA 
by calling the NOFA Information Center at 1-800-HUD-8929 (voice) (this 
is a toll free number) or you may download it from the website at 
http://www.grants.gov. Please note that all sections of the General 
Section are critical and must be carefully reviewed to ensure your 
application can be considered for funding.
    B. Content and Form of Application Submission. The only option for 
submitting a viable application under this NOFA is to submit the entire 
Continuum of Care application, with all of its projects, together in a 
single package mailed to HUD. Each application will consist of one 
Continuum of Care Exhibit and submissions from one or more applicants 
and project sponsors. Although HUD will accept an application for a 
project exclusive of participation in any community-wide or region-wide 
CoC development process, projects will receive few, if any, points 
under the CoC rating factors and are very unlikely to be funded. Please 
note that Exhibits 1 and 2 should only include the actual application 
questions and responses being provided and should not include the HUD 
application instructions or any blank tables and charts. The General 
Section contains certifications that the applicant will comply with 
fair housing and civil rights requirements, program regulations, and 
other Federal requirements, and (where applicable) that the proposed 
activities are consistent with the HUD-approved Consolidated Plan of 
the applicable state or unit of general local government. Section IV of 
Exhibit 2 of this NOFA contains program-specific Applicant 
Certifications.
    1. Application Submission Requirements:
    a. A completed application will include one Exhibit 1 (CoC) and any 
number of Exhibits 2, depending on the number of projects and type of 
programs proposed for funding. For example, if your CoC were proposing 
five SHP Renewal projects and one S+C New project, then you would 
submit one Exhibit 1 and six Exhibits 2, filling out the applicable 
charts in Exhibit 2 for each project. Refer to Assembly Order below for 
full assembling instructions.
    b. Assembly Order: Each CoC must submit the entire CoC application, 
with all of its parts, in a single package to HUD. There are three 
separate sections to a CoC submission: the CoC Exhibit 1, all applicant 
documentation, and all project documentation. The application must be 
assembled in the following order:
    (1) Section I--Exhibit 1 Narrative and Charts:
    (a) Exhibit 1, the CoC plan with all charts completed as 
applicable.
    (b) HUD-27300, Questionnaire for HUD's Initiative on Removal of 
Regulatory Barriers;
    (c) HUD 2993, Acknowledgment of Application Receipt; and
    (d) HUD 2994, Client Comments and Suggestions (optional).
    (2) Section II--Applicant Documentation:
    (a) SF-424 Application for Federal Assistance. Submit one SF-424 
for each applicant in the Continuum. Attached to each SF-424 must be a 
list of all the applicant's projects in priority number order, with 
project name and requested amount. Each SF-424 must also include the 
applicant's DUNS number. Please see the General Section for more

[[Page 12063]]

information on obtaining a DUNS number. The SF-424 SUPP, Survey on 
Ensuring Equal Opportunity for Applicants, is for private nonprofit 
applicants only and completion/submission of this survey is voluntary. 
Additionally, each applicant must attach the following documentation 
(i-v) to its SF-424:
    (i) Documentation of Applicant Eligibility. Only applicants for new 
projects must include documentation of eligibility as defined in the 
chart in Section III.A.3. Also, see Section I.A.8.l. & m. of this NOFA 
for information on the documentation required to validate non-profit 
status.
    (ii) SF-LLL, Disclosure of Lobbying Activities, where applicable.
    (iii) Applicant Code of Conduct. (New applicants and applicants 
awarded HUD funding prior to 2006 who have not previously submitted a 
Code of Conduct).
    (iv) HUD 40090-4, Applicant Certifications, located in Section IV 
of Exhibit 2.
    (3) Section III--Project Documentation: Each project applying under 
Exhibit 2 must be submitted in its priority list order with all Exhibit 
2 required forms completed for every project. The following 
documentation must be included after each project submission:
    (a) Documentation of Sponsor Eligibility. Only sponsors for new 
projects must include documentation of eligibility as defined in the 
chart in Section III.A.3. See also Section I.A.8.n. for information on 
the documentation required to validate sponsor eligibility.
    (b) HUD-96010, Logic Model (for Logic Model instructions, see the 
General Section of the NOFA and pages included with the Exhibit 2 
instructions);
    (c) HUD-2880, Applicant/Recipient Disclosure/Update Report;
    (d) HUD-2991, Certification of Consistency with the Consolidated 
Plan; and
    (e) SF 424-SUPP, Survey on Ensuring Equal Opportunity for 
Applicants (for private nonprofit applicants only--completion of survey 
is voluntary).
    2. Assembly Format:
    a. The standard font that should be used for narratives is Times 
New Roman, size 12 (pitch). Number all pages within each exhibit 
sequentially and insert tabs marking each exhibit.
    b. Please use a two-hole punch to insert holes at the top of your 
application.
    c. Please do not bind your application, since this impedes 
processing.
    C. Submission Dates and Times: 1. Application Deadline Date. Your 
completed application should be submitted on or before May 25, 2006 to 
the addresses shown below. HUD will not accept faxed or hand delivered 
applications.
    a. Timeliness. Your application will be considered filed in a 
timely manner if your application is postmarked on or before 11:59:59 
p.m. on the application deadline date and received by HUD on or within 
fifteen (15) days of the application deadline date. Applicants may use 
any type of mail service provided by the USPS to have their application 
package delivered to HUD in time to meet the timely submission 
requirements. Applicants using the United States Postal Service (USPS) 
must obtain and save a Certificate of mailing showing the date when you 
submitted your application. The Certificate of Mailing will be your 
documentary evidence that your application was timely filed. If your 
application is sent by overnight delivery or express mail, other than 
the United States Postal Service, your application will be timely filed 
if it is placed in transit with the overnight/express mail service on 
or before the application submission date. Applicants should retain a 
receipt from these services showing that it was submitted for delivery 
by the application submission date and time.
    b. Field Office Copies. The HUD Field Office must also receive one 
copy of your application, with the same due date and timely filing 
requirements as described in Section IV.C.1.a above. In the rare event 
that a CoC's entire application is not received at HUD Headquarters on 
time, HUD may similarly request proof that the Headquarters and Field 
Office copy was filed on time and, if so, may use the copy received by 
the Field Office for review.
    D. Intergovernmental Review. Not applicable.
    E. Funding Restrictions. Funding Restrictions are outlined in 
Sections V.B.3.a and V.B.3.b.
    F. Other Submission Requirements: 1. Addresses for Submitting 
Applications:
    a. To HUD Headquarters. Once you have downloaded the forms from the 
web site and completed the application and all documentation, submit 
your original completed application (the application with the original 
signed documentation) and one additional copy of Exhibit 1 only to: HUD 
Headquarters, Robert C. Weaver Building, 451 Seventh Street, SW, Room 
7270, Washington, DC 20410, Attention: Continuum of Care Programs.
    b. To the Appropriate CPD Field Office. Also submit one copy of 
your completed application to the Community Planning and Development 
Division of the appropriate HUD Field Office for your jurisdiction. 
Please see the following web site for Field Office addresses: http://www.hud.gov/localoffices.cfm.
    2. Security Procedures. HUD recommends that applications be mailed 
or shipped express using the United States Postal Service (USPS). 
However, applications shipped via United Parcel Service (UPS), FedEx, 
DHL, or Falcon Carrier will also be accepted. Due to HUD security 
regulations, no other delivery service is permitted into HUD 
Headquarters without escort. You must, therefore, use one of the four 
carriers listed above.

V. Application Review Information

    A. Criteria. Your application will receive a higher score under the 
CoC scoring factors if the application demonstrates the achievement of 
four basic goals:

--One, that you have successfully identified and developed partnerships 
with nonprofit organizations (including those representing persons with 
disabilities), government agencies, public housing agencies, faith-
based and other community-based organizations, other homeless 
providers, housing developers and service providers, private businesses 
and business associations, law enforcement agencies, funding providers, 
and homeless or formerly homeless persons, and that your CoC structure 
and decision-making processes are inclusive of all of these parties. 
Also, other jurisdictional ten-year plans within your CoC's geographic 
area must be integrated with the CoC plan;
--Two, that you have created, maintained, and built upon a community-
wide inventory of housing and services for homeless families and 
individuals (both HUD and non-HUD funded); identified the full spectrum 
of needs of homeless families and individuals; and coordinated efforts 
to fill gaps between the current inventory and existing needs. This 
coordinated effort must appropriately address all aspects of the 
continuum, especially permanent housing;
--Three, that you have instituted a CoC-wide strategy to achieve the 
CoC's goals, especially to end chronic homelessness. This can be 
accomplished through careful planning, coordination with other state 
and local plans, and through

[[Page 12064]]

leveraging resources from multiple sources; and
--Four, that your Continuum is working toward the HUD/national 
performance objectives (the objectives listed in Section VI.B.1 below 
and on Chart N in Exhibit 1, the new CoC 10-Year Plan, Objectives, and 
Action Steps Chart), that you are reporting on progress toward the 
CoC's goals, and that you are coordinating homeless assistance with 
mainstream health, social services, and employment programs.

    1. Applicant and sponsor eligibility, capacity and performance. HUD 
will review applications to ensure that the applicant and project 
sponsor meet the eligibility and capacity standards outlined in this 
section. If HUD determines these standards are not met, the project 
will be rejected from the competition. The eligibility, capacity and 
performance standards are as follows:
    a. You must be eligible to apply for the specific program.
    b. You must demonstrate ability to carry out the project(s). With 
respect to each proposed project, this means that, in addition to 
knowledge of and experience with homelessness in general, the 
organization carrying out the project, its employees, or its partners, 
must have the necessary experience and knowledge to carry out the 
specific activities proposed, such as housing development, housing 
management, and service delivery.
    c. If you or the project sponsor is a current or past recipient of 
assistance under a HUD McKinney-Vento Act program, there must have been 
no delay in meeting applicable program timeliness standards unless HUD 
determines the delay in project implementation is beyond your or the 
project sponsor's control, there are no serious unresolved HUD 
monitoring finding, and no outstanding audit finding of a material 
nature regarding the administration of the program.
    2. Review, Rating and Conditional Selection. HUD will use the same 
review, rating, and conditional selection process for all three 
programs (SHP, S+C and SRO). The standard factors for award identified 
in the General Section have been modified in this NOFA as described 
below. Only the factors described in this NOFA--Continuum of Care and 
Need--will be used to assign points. Parts 2a and 2b in this section 
describe selection factors. Up to 100 points will be assigned using 
these factors, including rating points for HUD's policy priority of 
ending chronic homelessness; and the policy priority for removing 
regulatory barriers to affordable housing (see Section V.A.3.a. and 
V.A.5. below on both policy priorities). There are no bonus points for 
proposing projects in an RC/EZ/EC-IIs.
    a. Continuum of Care. HUD will award up to 60 points as follows:
    (1) Organizational Structure: HUD will award up to 8 points based 
on the extent to which your application demonstrates:
    (a) The existence of a coordinated, inclusive, and outcome-oriented 
community process, including organizational structure(s) and decision-
making processes for developing and implementing a CoC strategy;
    (b) That this process includes nonprofit organizations (such as 
veterans service organizations, organizations representing persons with 
disabilities, faith-based and other community-based organizations, and 
other groups serving homeless and other low-income persons), state and 
local governmental agencies, public housing agencies, housing 
developers and service providers, school systems, law enforcement, 
hospital and medical entities, funding providers, local businesses and 
business associations, and homeless or formerly homeless persons; and
    (c) That the CoC has a process in place to achieve fair and 
impartial project review and selection, with representation and input 
from diverse parties such as those outlined under Criteria for 
Application Review.
    (2) CoC Housing and Service Needs: HUD will award up to 12 points 
based on the extent to which your application demonstrates:
    (a) That a well-defined and comprehensive strategy has been 
developed which addresses the components of a CoC system (i.e., 
outreach, intake and assessment; emergency shelter; transitional 
housing; permanent supportive housing; permanent supportive housing, 
and prevention), and that the strategy has been designed to serve all 
homeless subpopulations in the community (e.g., seriously mentally ill, 
persons with multiple diagnoses, veterans, persons with HIV/AIDS), 
including those persons living in emergency shelters, supportive 
housing for homeless persons, or in places not designed for, or 
ordinarily used as, a regular sleeping accommodation for human beings. 
Having high-quality data is important, and your application in this 
section must demonstrate the CoC's data collection methods.
    (b) HMIS Implementation. Of these 12 points, HUD will award up to 5 
points based upon the extent to which your application demonstrates 
progress in the planning, implementation and operation of an HMIS 
system covering at a minimum all street outreach, emergency shelters 
and transitional housing programs so that a reliable, unduplicated 
count of homeless persons on the street and in shelters may be 
conducted.
    (3) CoC Strategic Planning: HUD will award up to 10 points based on 
the extent to which your application demonstrates:
    (a) The existence of a performance-based 10-year strategy for 
ending chronic homelessness that establishes specific action steps to 
achieve the five objectives listed in Chart N, the CoC 10-Year Plan, 
Objectives, and Action Steps Chart, with measurable achievements. It 
should be integrated with other ten-year plans in the community to 
eliminate chronic homelessness (if applicable), the local HUD 
Consolidated Plan, and other state and local plans related to 
homelessness;
    (b) Your Continuum's progress in working with the appropriate local 
government entity to develop and implement a discharge policy for 
persons leaving publicly funded institutions or systems of care (such 
as health care facilities, foster care or other youth facilities, or 
correction programs and institutions) in order to prevent such 
discharge from immediately resulting in persons entering the homeless 
system;
    (c) Proposes projects that are consistent with identified unmet 
needs and correctly completes the priority chart (note: if you do not 
provide a Project Priority Chart in Exhibit 1, all proposed projects 
may lose up to 30 points of the 40-point Need total);
    (d) Provides estimates of renewal funds needed through 2011 for SHP 
and S+C projects; and
    (e) Demonstrates leveraging of funds requested under this NOFA with 
other resources, including private, other public, and mainstream 
services and housing programs, for proposed projects and ongoing 
efforts (Leveraging Supplemental Resources).
    (4) CoC Performance: HUD will award up to 18 points based upon the 
CoC's progress in reducing homelessness, including chronic 
homelessness. Please note that HUD will award at least a minimum score 
in this section to continuums located in areas affected by Hurricanes 
Katrina and Rita that President Bush has declared to be major disaster 
areas under Title IV of the Robert T. Stafford Act, as follows: for 
each completed chart in Part IV, CoC Performance, CoCs in these areas 
will receive no less than one half of the full

[[Page 12065]]

points allotted. CoC Performance will be measured by demonstrating:
    (a) That the CoC has taken specific action steps and made progress 
toward achieving its goals;
    (b) That the CoC has increased the number of permanent housing beds 
for the chronically homeless and made progress toward eliminating 
chronic homelessness;
    (c) Program participants' success in moving to and maintaining 
permanent housing as reported in the most recent APR;
    (d) The extent to which participants successfully become employed 
and access mainstream programs. These measures emphasize HUD's 
determination to assess grantees' performance in the prior program year 
and to determine if they are meeting the overall goal of the homeless 
assistance grants under which they are funded. Both housing and 
supportive services only projects will be assessed, using the data 
submitted in Exhibit 1, Charts W and X;
    (e) That the CoC has no unexecuted grants;
    (f) That projects within the CoC have policies and practices in 
place to hire low and very low-income employees and subcontractors, 
under Section 3 of the Housing and Urban Development Act of 1968 (HUD 
will award up to 2 points for this chart, within the 18 points for this 
rating factor); and
    (g) Removal of Regulatory Barriers to Affordable Housing: As 
provided for in the General Section, HUD will award up to 2 points, 
within the 18 points for this rating factor, based on the extent that 
the CoC's application demonstrates a local plan and/or existing policy 
to remove regulatory barriers to the production of affordable housing. 
Applicable activities include the support of state and local efforts to 
streamline processes, eliminate redundant requirements, statutes, 
regulations, and codes that impede the availability of affordable 
housing. The response (one questionnaire per CoC) should be submitted 
for consideration as a completed HUD Form 27300, Questionnaire for 
HUD's Initiative on Removal of Regulatory Barriers. The Continuum 
should submit the questionnaire for the local jurisdiction where the 
majority of its CoC assistance will be provided. Please identify the 
name of the jurisdiction reported on the top of the first page of the 
returned questionnaire. This questionnaire can be found in the 
attachments to the General Section and should be submitted with Exhibit 
1.
    (5) Emphasis on Housing Activities: HUD will award up to 12 points 
based upon the relationship between funds requested for housing 
activities (i.e., transitional and permanent) and funds requested for 
supportive service activities among projects assigned 40 need points 
(including S+C renewals). Points will be awarded on a sliding scale 
with the Continuums with the highest percentage of approvable requests 
for funds for housing activities receiving the highest points. HUD will 
count as housing activity all approvable requests for funds for rental 
assistance and approvable requests for funds for acquisition, 
rehabilitation, construction, leasing and operations when used in 
connection with housing. HMIS costs and administrative costs will be 
excluded from this calculation.
    b. Need: HUD will award up to 40 points for need. There is a three-
step approach to determining the need scores to be awarded to projects.
    (1) Step 1--HUD's Determination of preliminary pro rata need: To 
determine the homeless assistance need of a particular jurisdiction, 
HUD will use nationally available data, including the following factors 
as used in the Emergency Shelter Grants (ESG) program; data on poverty, 
housing overcrowding, population, age of housing, and growth lag. 
Applying those factors to a particular jurisdiction provides an 
estimate of the relative need index for that jurisdiction compared to 
other jurisdictions applying for assistance under this NOFA.
    (2) Step 2--Determining CoC hold harmless pro rata need: In CoCs 
where the total amount needed to fund, for one year, all SHP grants 
eligible for renewal in this competition exceeds the preliminary pro 
rata need amount for that CoC, the CoC will receive this higher amount, 
referred to as the CoC hold harmless amount. This adjustment was 
formerly known as the renewal bonus. SHP grants eligible for renewal 
are those that expire between January 1, 2007 and December 31, 2007. No 
adjustment will be made for S+C renewals. To provide communities with 
maximum flexibility in addressing current needs, CoCs have the 
discretion to not fund or to reduce one or more SHP renewal project 
applications and still receive the benefit of the hold harmless amount 
if the CoC proposes to use that amount of reduced renewal funds for new 
permanent supportive housing projects. Please be advised that the new 
projects (and the renewal dollars attached) proposed through this 
reallocation are subject to the competitive process, i.e., the CoC must 
score above the national funding line for the projects to be funded.
    (3) Step 3--Samaritan Housing Initiative: Formerly referred to as 
the Permanent Housing Bonus, this special incentive to promote 
permanent supportive housing for the chronically homeless is provided 
to CoC systems that place an eligible, new permanent supportive housing 
project in the number one priority position on the priority list. If 
the number one priority project qualifies as an eligible, new permanent 
housing project exclusively serving the chronically homeless, then the 
full amount of that project's eligible housing activities, up to a 
maximum 15 percent of the CoC's preliminary pro rata need, will be 
added to the pro rata need amount for the Continuum. The only eligible 
activities that will be counted toward this bonus are housing 
activities and for SHP, case management, and administration. Applicants 
may use no more than 20 percent of this bonus for case management 
costs. Please note: any amount of the proposed project that exceeds the 
limitations described above will be applied against the pro rata need 
for the CoC. For the SHP program, housing activities are acquisition, 
new construction, rehabilitation, leasing of housing and operating 
costs when used in connection with housing. S+C and SRO rental 
assistance are defined as housing activities and are eligible under the 
incentive as well. HMIS costs will be excluded from this calculation.
    The dollar amount determined after application of each of these 
steps, as applicable, is referred to as the ``final pro rata need 
amount.'' Please be advised that the final funding amount awarded to 
Shelter Plus Care or Section 8 SRO projects may be different from the 
requested amount due to changes in the FMRs. HUD will apply FMR changes 
after selection.
    (4) Awarding need points to projects: Once HUD establishes the 
final pro rata need, HUD will apply it against the priority project 
list in the application. Starting from the highest priority project, 
HUD will proceed down the list to award need points to each project. 
Any project not falling fully within the 40 point need range will 
receive 10 need points. Thereafter, HUD will proceed further down the 
priority project list and award 10 points for need to each project if 
it falls fully within the ``second level'' of pro rata need amount for 
that CoC. The ``second level'' is the amount between the pro rata need 
and twice the pro rata need for the CoC. Remaining projects each 
receive 5 points. If the projects for the Continuum are not 
prioritized, then all projects will receive 0 points for Need.

[[Page 12066]]

    B. Reviews and Selection Process. 1. Review, Rating and Ranking. 
HUD may employ rating panels to review and rate applications. See the 
General Section for more information on rating panels. Two types of 
reviews will be conducted--threshold review and selection factor (CoC 
and Need) rating. Applicant and Sponsor Eligibility and Capacity as 
well as Project Eligibility and Project Quality are threshold reviews. 
Threshold reviews are explained in Section III.C.2 of this NOFA, which 
covers eligible applicants and projects. HUD will add the score for the 
CoC to the Need score to obtain a total score for each project. The 
projects will then be ranked nationally from highest to lowest 
according to the total combined score.
    2. Conditional Selection and Adjustments to Funding.
    a. Conditional Selection. Whether a project is conditionally 
selected, as described in Section VI.A, will depend on its overall 
ranking compared to others, except that HUD reserves the right to 
select lower rated eligible projects in order to meet the 30 percent 
overall permanent housing requirement, as well as the 10 percent 
chronic homeless requirement. Projects that are included in the 10 
percent chronic homeless requirement may also be part of the 30 percent 
overall permanent housing requirement. (See Section V.B.3 below for 
additional selection considerations regarding these requirements.)
    When insufficient funds remain to fund all projects in the 
competition having the same total score, HUD will first fund permanent 
housing projects if necessary to achieve the 30 percent overall 
permanent housing requirement. HUD will then fund non-permanent 
housing, safe haven-TH and transitional housing projects that 
predominantly serve individuals experiencing chronic homelessness in 
order to achieve the 10 percent chronic homeless requirement. HUD will 
then break ties among the remaining projects with the same total score 
by comparing scores received by the projects for each of the following 
scoring factors, in the order shown: Need, Overall CoC score, CoC 
Organizational Structure, CoC Housing and Service Needs, CoC Strategic 
Planning, CoC Performance, CoC Supplemental Resources, Housing Emphasis 
and Performance. The final tie-breaking factor is the priority number 
of the competing projects on the applicable CoC priority list(s).
    HUD has determined that the Congressional goal of enhancing 
homeless data collection at the CoC level is best achieved by assisting 
CoCs seeking dedicated Homeless Management Information Systems (HMIS) 
to receive Supportive Housing Program funds. To this end, HUD reserves 
the right to fund for at least one year lower rated eligible dedicated 
HMIS projects receiving 40 need points and at least 25 Continuum 
points.
    b. Adjustments to Funding: HUD has determined that geographic 
diversity is an appropriate consideration in selecting homeless 
assistance projects in the competition. HUD believes that geographic 
diversity can be achieved best by awarding grants to as many CoCs as 
possible. To this end, in instances where any of the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Northern Mariana Islands, the Virgin Islands, and American Samoa does 
not have at least one funded CoC, HUD reserves the right to fund 
eligible project(s) receiving 40 Need points in the CoC with the 
highest total score in that jurisdiction. To qualify for funding, the 
total score for these first-level projects on the CoC priority list 
must be at least 65 points. In the case of two or more CoCs with the 
same total score, HUD will use the tie-breaking rules described above. 
In addition, if the highest priority project passing threshold 
requirements within a CoC fails to meet the criteria for receiving 40 
Need points, HUD reserves the right to reduce the total requested 
amount for that project to allow it to qualify for 40 Need points. If 
you do not submit clear project priority designations for the Continuum 
or if HUD, at its sole discretion, cannot determine the CoC's priority 
designations, then HUD will give all such projects 0 Need points. If 
the CoC requests a new permanent housing project as the highest 
priority, and HUD determines that it is not a permanent housing 
project, HUD reserves the right to not award funds to that project 
rather than reclassify the component. The intent of this provision is 
to preserve PRN for lower ranking projects. Finally, if the total 
amount that would be awarded for first level projects in a CoC exceeds 
the final pro rata need amount for that CoC, the lowest priority first 
level project being selected for funding will be reduced to the amount 
that is wholly within the higher need level. HUD may otherwise adjust 
funding of applications in accordance with the provisions of the 
General Section.
    In addition, HUD reserves the right to ensure that a project that 
is applying for, and eligible for, selection under this competition is 
not awarded funds that duplicate activities. If the geography included 
in your CoC strategy substantially overlaps that of another 
application, projects within the CoC application that receive the 
highest CoC score will be eligible for up to 40 Need points. Projects 
in the competing CoC application with the lower CoC score will receive 
0 need points. In no case will the same geographical area be used more 
than one time in assigning Need points. The local HUD Field Office can 
help you determine if any of the areas proposed for inclusion by your 
CoC system is also likely to be claimed under another CoC system in 
this competition.
    3. Additional Selection Considerations. HUD also will apply the 
limitations on funding described below in making conditional 
selections.
    a. Thirty Percent Permanent Housing Requirement. In accordance with 
the appropriation for homeless assistance grants in the Fiscal Year 
2006 HUD Appropriations Act, HUD will use not less than 30 percent of 
the total FY 2006 Homeless Assistance Grants appropriation, excluding 
amounts provided for renewals under the S+C Program, to fund projects 
that meet the definition of permanent housing. Projects meeting the 
definition of permanent housing for this purpose are:
    (1) New and renewal projects under the SHP that are designated as 
either permanent housing for homeless persons with disabilities or Safe 
Haven projects designated as having the characteristics of permanent 
housing for homeless persons with disabilities, including having leases 
with all program participants. All such permanent housing projects 
chosen for this purpose must have received at least 10 Need points, and 
must be submitted as part of a CoC application receiving at least 25 
points under the CoC scoring factor. However, no CoC applicant may 
receive more than 30 percent of its pro rata need, up to $3 million, 
for ``second-level'' permanent housing projects assigned 10 Need points 
that are selected for funding under this procedure. (See Section 
V.A.2.b (4) for definition of ``second-level.'') HUD will award no less 
than 30 percent of the total FY 2006 Homeless Assistance Grants 
appropriation, excluding amounts for S+C renewals, for permanent 
housing projects unless an insufficient number of approvable permanent 
housing projects are submitted. In order to meet this permanent housing 
funding requirement and stay within the total funding amount available, 
initially selected Supportive Service Only (SSO) and non-permanent 
housing projects will be deselected if necessary to add an adequate 
number of permanent housing projects, even if they are lower scoring 
housing projects. HUD will, if necessary, first proceed to de-select 
new

[[Page 12067]]

SSO projects initially selected, starting with lowest scoring new 
projects and proceeding to higher scoring new SSO projects initially 
selected. If the funding line is still exceeded, HUD will proceed to 
de-select the lowest scoring new non-permanent housing projects 
initially selected and proceed to higher scoring new non-permanent 
housing projects. Finally, if the funding line is still exceeded HUD 
will proceed to de-select SSO and then other non-permanent housing 
renewal projects until all selected projects are within the funding 
line.
    (2) New S+C projects; and
    (3) SRO projects.
    b. Ten Percent Housing for Chronic Homeless Requirement: HUD has 
implemented a requirement that at least 10 percent of the appropriation 
must be awarded for projects predominantly serving individuals 
experiencing chronic homelessness. To be considered predominantly 
serving chronically homeless people, at least 70 percent of the persons 
served in this project must meet HUD's definition of chronic 
homelessness. Permanent housing, transitional and safe haven housing 
projects, whether new or renewal, that commit to predominantly serving 
persons experiencing chronic homelessness will be counted for this 
purpose. To meet this requirement, HUD will also include permanent 
housing projects selected for the 30 percent requirement that 
predominantly serve chronically homeless persons. S+C renewals will 
then be screened to count projects predominantly serving chronically 
homeless persons. If the 10 percent requirement is not yet met, 
permanent, transitional and safe haven housing projects below the 
funding line that predominantly serve chronically homeless persons will 
also be selected to achieve this requirement.
    c. Distribution of Selections: In accordance with section 429 of 
the McKinney-Vento Act, HUD will award Supportive Housing Program funds 
as follows: Not less than 25 percent for projects that primarily serve 
homeless families with children; not less than 25 percent for projects 
that primarily serve homeless persons with disabilities; and not less 
than 10 percent for supportive services not provided in conjunction 
with supportive housing. After projects are rated and ranked, based on 
the factors described above, HUD will determine if the conditionally 
selected projects achieve these minimum percentages. If not, HUD will 
skip higher-ranked projects in order to achieve these minimum 
percentages.
    In accordance with section 463(a) of the McKinney-Vento Act, at 
least 10 percent of S+C funds will be awarded for each of the four 
components of the program: Tenant-based Rental Assistance; Sponsor-
based Rental Assistance; Project-based Rental Assistance; and Single 
Room Occupancy (provided there are sufficient numbers of approvable 
projects to achieve these percentages). After projects are rated and 
ranked, based on the factors described above, HUD will determine if the 
conditionally selected projects achieve these minimum percentages. If 
necessary, HUD will skip higher-ranked projects in order to achieve 
these minimum percentages.
    In accordance with section 455(b) of the McKinney-Vento Act, no 
more than 10 percent of the assistance made available for S+C in any 
fiscal year may be used for programs located within any one unit of 
general local government. In accordance with section 441(c) of the 
McKinney-Vento Act, no city or urban county may have SRO Section 8 
projects receiving a total of more than 10 percent of the assistance 
made available under this program. HUD is defining the 10 percent 
availability this fiscal year as $10 million for S+C and $10 million 
for Section 8 SRO. However, if the amount awarded under either of these 
two programs exceeds $100 million, then the amount awarded to any one 
unit of general local government (for purposes of the S+C Program) or 
city or urban county (for the purposes of the Section 8 SRO Program) 
cannot exceed 10 percent of the actual total amount awarded for that 
program.
    Lastly, HUD reserves the right to reduce the amount of a grant if 
necessary to ensure that no more than 10 percent of assistance made 
available under this NOFA will be awarded for projects located within 
any one unit of general local government or within the geographic area 
covered by any one Continuum of Care. If HUD exercises a right it has 
reserved under this NOFA, that right will be exercised uniformly across 
all applications received in response to this NOFA.
    4. Corrections to Deficient Applications. The General Section 
provides the procedures for corrections to deficient applications.

VI. Award Administration Information

A. Award Notices

    1. Action on Conditionally Selected Applications. HUD will notify 
conditionally selected applicants in writing. HUD may subsequently 
request them to submit additional project information, which may 
include documentation to show the project is financially feasible; 
documentation of firm commitments for cash match; documentation showing 
site control; information necessary for HUD to perform an environmental 
review; a copy of your Code of Conduct; and such other documentation as 
specified by HUD in writing to the applicant, that confirms or 
clarifies information provided in the application. HUD will notify SHP, 
SRO, S+C and S+C/SRO applicants of the deadline for submission of such 
information. If an applicant is unable to meet any conditions for fund 
award within the specified timeframe, HUD reserves the right not to 
award funds to the applicant and add them to funds available for the 
next competition for the applicable program.
    2. Applicant Debriefing: See the General Section for applicant 
debriefing procedures.
    3. Appeals Process: Applicants may appeal the results of HUD's 
review and selection process if they believe a HUD error has occurred. 
Appeals must be submitted in writing to the Assistant Secretary for 
Community Planning and Development and must state what HUD error the 
applicant believes has occurred.

B. Administrative and National Policy Requirements

    1. Administrative and Other Program Requirements. a. The Government 
Performance and Results Act (GPRA) require Federal agencies to measure 
the performance of their programs. HUD captures this information not 
only from monitoring visits and APRs, but also on the data gathered in 
annual competitions. For example, the description of methods used in 
determining the project priority order submitted in Exhibit 1, CoC-Q, 
Project Priorities Chart, provides verification that projects are 
performing satisfactorily and are effectively addressing the needs for 
which they were designed. HUD's homeless assistance programs are 
measured in 2006 by the objective to ``end chronic homelessness and to 
move homeless families and individuals to permanent housing.'' This 
objective has a number of measurable indicators, five of which relate 
directly to the Continuum of Care homeless assistance programs. These 
five indicators are:
    (1) At least 390 functioning CoC communities will have a Homeless 
Management Information System (HMIS) in 2005. This information is 
collected via Exhibit 1, Chart CoC-M, HMIS Charts;
    (2) The percentage of formerly homeless individuals who remain

[[Page 12068]]

housed in HUD permanent housing projects for at least 6 months will be 
at least 71 percent. Stability in this permanent housing is addressed 
in Exhibit 1, Chart CoC-W, CoC Housing Project Performance Chart;
    (3) The percentage of homeless persons who have moved from HUD 
transitional housing into permanent housing will be at least 61 
percent. The success of transitional housing is addressed in Exhibit 1, 
Chart CoC-W, CoC Housing Project Performance Chart; and
    (4) The employment rate of persons exiting HUD homeless assistance 
projects will be at least 11 percentage points higher than the 
employment rate of those entering. Obtaining employment is addressed in 
Exhibit 1, Chart CoC-X, CoC Mainstream Programs and Employment Project 
Performance Chart.
    b. To achieve this objective and each of these measurable 
indicators, HUD needs your community's help. The emphasis in this 
year's competition on housing chronically homeless persons, using HUD 
funds for transitional and especially permanent housing, helping 
clients access mainstream service programs and jobs, and implementing 
HMIS are all aligned with this GPRA objective and its performance 
indicators.
    c. Executive Order 13202, ``Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects.'' Please see the 
General Section for further information.
    d. Procurement of Recovered Materials. Please see the General 
Section for further information.
    e. Please reference the General Section of the NOFA for other 
administrative requirements.
    2. Sanctions. Should HUD determine, in its sole discretion, that 
sufficient evidence exists to confirm that the entity responsible for 
convening and managing the CoC process in a community has failed to 
follow locally established or accepted procedures governing the conduct 
of that process or has failed to provide for a fair process, including 
a project priority selection process that gives equal consideration to 
projects proposed by nonprofit organizations, HUD reserves the 
authority to impose sanctions up to and including a prohibition on that 
entity and the individuals comprising that entity from participating in 
that capacity in the future. In making this determination, HUD will 
consider as evidence court proceedings and decisions, or the 
determinations of other independent and impartial review bodies. This 
authority cannot be exercised until after a description of procedural 
safeguards, including an opportunity for comment and appeal, and the 
specific process and procedures for imposing a prohibition or 
debarment, have been published in the Federal Register.

C. Reporting

    Once conditionally selected applications advance to full award and 
execution of a grant agreement, grantees are required to submit an 
Annual Progress Report (APR) and a completed Logic Model showing 
outputs and outcomes achieved for the year to both HUD Headquarters and 
the respective Field Office each year. In addition, grantees must also 
respond to the management questions contained in the Logic Model.
    For FY2006, HUD is considering a new concept for the Logic Model. 
The new concept is a Return on Investment statement. HUD will be 
publishing a separate notice on the ROI concept.
    Also, Grantees who expend $500,000 or more in a year in Federal 
awards are reminded they must have a single or program-specific audit 
for that year in accordance with the provisions of 24 CFR 45 and OMB 
Circular No. A-133.

VII. Agency Contacts

    A. For Further Information. You may contact the HUD Field Office 
serving your area, at the telephone number shown in the General 
Section, or you may contact the NOFA Information Center at 1-800-483-
8929 or by Internet at: http://www.hud.gov. Individuals who are 
hearing- or speech-impaired should use the Information Relay Service at 
1-800-877-8339 (these are toll-free numbers).
    B. For Technical Assistance. Before the application deadline, HUD 
staff will be available to provide you with general guidance. HUD 
staff, however, cannot provide you with guidance in actually preparing 
your application. HUD Field Office staff also will be available to help 
you identify organizations in your community that are involved in 
developing the CoC system. Following conditional selection of 
applications, HUD staff will be available to assist selected applicants 
in clarifying or confirming information that is a prerequisite to the 
offer of a grant agreement or Annual Contributions Contract by HUD. 
However, between the application deadline and the announcement of 
conditional selections, HUD will accept no information that would 
improve the substantive quality of your application pertinent to HUD's 
funding decision.
    C. Satellite Broadcast. HUD will hold one or more information 
broadcasts via satellite for potential applicants to learn more about 
the program and preparation of the application. Viewing of these 
broadcasts, which will provide critical information on the application 
process, is highly recommended. For more information about the date and 
time of the broadcast, you should consult the HUD Web site at http://www.hud.gov.

VIII. Other Information

A. Paperwork Reduction Act

    The information collection requirements contained in this document 
have been submitted for approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) 
and OMB approval is pending. In accordance with the Paperwork Reduction 
Act, HUD may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection displays 
a currently valid OMB control number. Public reporting burden for the 
collection of information is estimated to average 200 hours per annum 
per respondent for the application and grant administration. This 
includes the time for collecting, reviewing, and reporting the data for 
the application, semi-annual reports and final report. The information 
will be used for grantee selection and monitoring the administration of 
funds. Response to this request for information is required in order to 
receive the benefits to be derived.
    B. Attachments. This final section lists the attachments that are 
critical to the application process. Please see Section IV.B.1.b of 
this NOFA for a complete description of the forms and certifications 
required and the order of assembly. In addition to applicant and 
sponsor documentation of eligibility, please provide:
    1. Forms to complete for Exhibit 1, Continuum of Care.
    Form HUD-40090-1--Exhibit 1, Continuum of Care Application. All of 
the following charts comprise this form:

A: CoC Lead Organization Chart
B: CoC Geography Chart
C: CoC Groups and Meetings Chart
D: CoC Planning Process Organizations Chart
E: CoC Governing Process Chart
F: CoC Project Review and Selection Chart
G: Written Complaints Chart
H: CoC Services Inventory
I: Housing Inventory Charts

[[Page 12069]]

J: Housing Inventory Data Sources and Methods Chart
K: CoC Point-in-Time Homeless Population and Subpopulations Chart
L: CoC Homeless Population and Subpopulations Data Sources and Methods 
Chart
M: CoC HMIS Charts
N: CoC 10-Year Plan, Objectives, and Action Steps Chart
O: CoC Discharge Planning Policy Chart
P: CoC Coordination Chart
Q: CoC Project Priorities Chart
R: CoC Pro Rata Need (PRN) Reallocation Chart
S: CoC Project Leveraging Chart
T: CoC Current Funding and Renewal Projections Chart
U: CoC Achievements Chart
V: CoC Chronic Homeless (CH) Progress Chart
W: CoC Housing Performance Chart
X: Mainstream Programs and Employment Project Performance Chart
Y: Enrollment and Participation in Mainstream Programs Chart
Z: Unexecuted Grants Awarded Prior to the 2005 CoC Competition Chart
AA: CoC Participation in Energy Star Chart
BB: Section 3 Employment Policy Chart
Form HUD-27300--Questionnaire for HUD's Initiative on Removal of 
Regulatory Barriers
Form HUD-2993--Acknowledgment of Application Receipt
Form HUD-2994--Client Comments and Suggestions
    2. Forms to complete for each applicant. These include:

SF-424--Application for Federal Assistance
HUD-40090-4--Applicant Certifications (located at the end of Exhibit 2)
Form HUD-2880--Applicant/Recipient Disclosure/Update Report
SF-424 SUPP--Voluntary Survey on Ensuring Equal Opportunity

    3. Forms to complete for each project (Exhibit 2). These include:

Form HUD-40090-2--Exhibit 2, Continuum of Care Project Application
Form HUD-96010--Logic Model
Form HUD-2991--Certification of Consistency with the Consolidated Plan


    Note: This year, the Questions and Answers Supplement can be 
accessed at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

[FR Doc. 06-1869 Filed 3-7-06; 8:45 am]
BILLING CODE 4210-01-P