[Federal Register Volume 71, Number 87 (Friday, May 5, 2006)]
[Notices]
[Pages 26610-26673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4084]



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Part II





Department of Housing and Urban Development





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Supplement to the Fiscal Year (FY) 2006 SuperNOFA for HUD's 
Discretionary Programs: NOFAs for the HOPE VI Revitalization Grants 
Program and HOPE VI Main Street Grants Program--Correction; Notice

  Federal Register / Vol. 71, No. 87 / Friday, May 5, 2006 / Notices  

[[Page 26610]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5053-C-02; FR-5059-C-02]


Supplement to the Fiscal Year (FY) 2006 SuperNOFA for HUD's 
Discretionary Programs: NOFAs for the HOPE VI Revitalization Grants 
Program and HOPE VI Main Street Grants Program--Correction

AGENCY: Office of the Secretary, HUD.

ACTION: Notice; Correction.

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SUMMARY: On April 11, 2006, HUD published its Supplement FY2006 
SuperNOFA for HUD's Discretionary Programs, which contained the HOPE VI 
Revitalization Grants Program and HOPE VI Main Street Grant Program. 
Today HUD is republishing the supplement to the SuperNOFA, in its 
entirety, making clarifications and corrections. HUD is revising the 
application submission date for the HOPE VI Main Street Grant Program. 
The application submission date will be July 11, 2006. HUD is also 
republishing the Supplement due to incorrect formatting of various 
sections and a misstatement of the estimated date of award found in the 
HOPE VI Main Street Grant Program. This republication will facilitate 
applicant understanding of what needs to be included in their 
applications as well as avoid applicant confusion.

DATES: The key dates that apply to the HOPE VI Main Street and HOPE VI 
Revitalization programs are found in the individual program NOFAs 
published today and which are part of this Notice.

FOR FURTHER INFORMATION CONTACT: The individual program NOFAs will 
identify the applicable agency contacts for each program. Questions 
regarding today's Introduction, the General Section of January 20, 
2006, or the Introduction of March 8, 2006, should be directed to the 
NOFA Information Center between the hours of 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: On April 11, 2006 (71 FR 18496), HUD 
published its Supplement FY2006 SuperNOFA for HUD's Discretionary 
Programs, which contained the HOPE VI Revitalization Grants Program and 
HOPE VI Main Street Grant Program. Upon publication HUD became aware 
that the HOPE VI Main Street Grant Program contained incorrect 
formatting in various sections as well as a misstatement of the 
estimated date of award. HUD has corrected the formatting and estimated 
date of award in the HOPE VI Main Street Grant Program NOFA. HUD is 
also taking the opportunity afforded by this Notice to change the 
application submission date to July 11, 2006, for the HOPE VI Main 
Street Grant Program only. By making this change HUD is ensuring that 
the Grants.gov help desk will be open and available to assist 
applicants the day prior to the application submission deadline. HUD 
has also provided clarification of the section III.C.1.a entitled, 
``Eligible Uses of Grant Funds.'' Lastly, HUD has added section 
III.C.1.h, which contains a cross-reference to the section of the NOFA 
that discusses non-allowable costs. The corrections made to the HOPE VI 
Main Street Grant Program will facilitate applicant understanding of 
application requirements as well as will avoid applicant confusion. 
This correction notice republishes the April 11, 2005, Supplement in 
its entirety.

    Dated: April 26, 2006.
Camillle E. Acevedo,
Associate General Counsel for Legislation and Regulations.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of HUD's Fiscal Year (FY) 2006 Notice of Funding 
Availability. (SuperNOFA) for HUD's Discretionary Programs: HOPE VI 
Revitalization Grants Program and HOPE VI Main Street Grants Program; 
Notice.
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SUMMARY: On March 8, 2006, HUD published its FY2006 SuperNOFA for HUD's 
Discretionary Programs, which contained 39 funding opportunities. 
supplements the SuperNOFA by adding funding opportunities for the HOPE 
VI Main Street and HOPE VI Revitalization programs. Since these NOFAs 
are part of the SuperNOFA, the NOFAs published today are governed by 
the information and instructions found in the Notice of Funding 
Availability Policy Requirements and General Section (General Section) 
to the SuperNOFA that HUD published on January 20, 2006, and the 
Introduction published on March 8, 2006.

DATES: The key dates that apply to the HOPE VI Main Street and HOPE VI 
Revitalization programs are found in the individual program NOFAs 
published today and which are part of this notice.

FOR FURTHER INFORMATION CONTACT: The individual program NOFAs will 
identify the applicable agency contacts for each program. Questions 
regarding today's Introduction, the General Section of January 20, 
2006, or the Introduction of March 8, 2006, should be directed to the 
NOFA Information Center between the hours of 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: Today's publication follows the publication 
of the General Section of the FY2006 SuperNOFA on January 20, 2006 (71 
FR 3382), and the SuperNOFA for HUD's Discretionary Programs on March 
8, 2006 (71 FR 11712), and presents two funding opportunities that 
supplement HUD's FY2006 SuperNOFA. Specifically, through today's 
publication, HUD is making available approximately $76.9 million in 
assistance through the FY2006 HOPE VI Main Street and the FY2006 HOPE 
VI Revitalization Grants programs. Today's publication is in addition 
to the $2.2 billion previously made available through the FY2006 
SuperNOFA.
    As is HUD's practice in publishing the SuperNOFA, the NOFAs 
published today provide the statutory and regulatory requirements, 
threshold requirements, and rating factors applicable to funding being 
made available today (through the HOPE VI Revitalization and HOPE VI 
Main Street NOFAs). Notwithstanding, applicants for the two HOPE VI 
NOFAs 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.
    In FY2006, HUD intends to continue to require its applicants to 
submit their applications electronically through http://www.grants.gov. 
If applicants have questions concerning the registration process, 
registration renewal, assigning a new Authorized Organization 
Representative, or have a question about a NOFA requirement, please 
contact HUD staff identified in the program NOFAs that are part of this 
notice. HUD staff cannot help you write your application, but can 
clarify requirements that are contained in this Notice and HUD's 
registration materials.
    New applicants should note that they 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

[[Page 26611]]

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 http://www.grants.gov.
    The March 8, 2006, FY2006 SuperNOFA publication included a 
clarification of the Logic Model discussed 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 applies only to grantees, i.e., applicants selected for 
funding under the NOFAs. Applicants are not to complete the ROI 
statement. Additionally, for FY2006, the ROI statement 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 of today's announcement, to 
further address the ROI concept.
    Applications and Instructions are posted to http://www.grants.gov 
as soon as HUD finalizes them. HUD encourages applicants to subscribe 
to the Grants.gov free notification service. By doing so, applicants 
will receive an email notification as soon as items are posted to the 
Web site. The address to subscribe to this service is http://www.grants.gov/search/email.do. By joining the notification service, if 
a modification is made to the NOFA, applicants will receive an email 
notification that a change has been made.
    HUD reiterates its hope that applicants benefit from the steps HUD 
has taken to provide early information to them on the funding process 
and requirements for the FY2006 SuperNOFA.

    Dated: April 3, 2006.
Roy A. Bernardi,
Deputy Secretary.

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[GRAPHIC] [TIFF OMITTED] TN05MY06.012


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Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. Revitalization of Severely Distressed 
Public Housing HOPE VI Revitalization Grants Fiscal Year 2006.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-5053-N-01. The OMB approval number for this program is: 
2577-0208.
    E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for this NOFA is 14-866, ``Demolition and Revitalization of 
Severely Distressed Public Housing (HOPE VI).''
    F. Dates
    1. Application Submission Date: The application deadline date is 
July 10, 2006. Electronic applications must be received and validated 
by Grants.gov by the deadline date. See the HUD's Super Notice of 
Funding Availability (SuperNOFA) General Section (71 FR 3382), 
published in the Federal Register on January 20, 2006 for application 
submission and timely receipt requirements.
    2. Estimated Grant Award Date: The estimated award date will be 
approximately September 15, 2006.
    G. Optional, Additional Overview Content Information
    1. Available Funds. This NOFA announces the availability of 
approximately $71.9 million in FY 2006 funds for HOPE VI Revitalization 
Program grants.
    2. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of Fiscal Year (FY) 2006 
HOPE VI Funds, the FY 2007 budget proposes the rescission of the FY 
2006 HOPE VI Appropriation. Please note, therefore, that if Congress 
adopts this portion of the President's budget, this NOFA may be 
cancelled at a later date and awards made under this NOFA may not 
ultimately be funded.
    3. The maximum amount of each grant award is $20 million. It is 
anticipated that four grant awards will be made.
    4. Housing choice voucher (HCV) assistance is available from the 
tenant protection voucher fund to successful applicants that receive 
the Revitalization grant awards. The dollar amount of HCV assistance is 
in addition to the $20 million maximum award amount and will be based 
upon resident relocation needs. Applicants must prepare their housing 
choice voucher assistance applications for the targeted project in 
accordance with the requirements of Notice PIH 2005-15 (and any 
reinstatement of or successor to that Notice) and submit it in its 
entirety with the HOPE VI Revitalization Application. HUD will process 
the housing choice voucher assistance applications for funded HOPE VI 
applicants.
    5. All non-troubled public housing authorities (PHAs) with severely 
distressed public housing are eligible to apply, subject to the 
requirements under Section III of this NOFA. PHAs that manage only a 
HCV program, tribal PHAs and tribally-designated housing entities are 
not eligible.
    6. A match of at least five percent is required.
    7. Each applicant may submit only one HOPE VI revitalization 
application.
    8. Application materials may be obtained from http://www.Grants.gov/Apply. Any technical corrections will be published in 
the Federal Register and posted to Grants.gov. Frequently asked 
questions will be posted on HUD's Web site at

http://www.hud.gov/offices/adm/grants/otherhud.cfm and
http://www.hud.gov/offices/pih/programs/ph/hope6/.

    9. General Section Reference. Section I, ``Funding Opportunity 
Description,'' of the Notice of HUD's Fiscal Year 2006 Notice of 
Funding Availability (NOFA) Policy Requirements and General Section to 
the Super NOFA for HUD's Discretionary Programs (General Section), 
Docket No. FR-5030 N 01, published in the Federal Register on January 
20, 2006, and the Introduction to the SuperNOFA issued in the Federal 
Register on March 8, 2006, is hereby incorporated by reference.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    In accordance with Section 24(a) of the United States Housing Act 
of 1937 (42 U.S.C. 1437v) (1937 Act), the purpose of HOPE VI 
Revitalization grants is to assist PHAs to:
    1. Improve the living environment for public housing residents of 
severely distressed public housing projects through the demolition, 
rehabilitation, reconfiguration, or replacement of obsolete public 
housing projects (or portions thereof);
    2. Revitalize sites (including remaining public housing dwelling 
units) on which such public housing projects are located and contribute 
to the improvement of the surrounding neighborhood;
    3. Provide housing that will avoid or decrease the concentration of 
very low-income families; and
    4. Build sustainable communities.

B. Authority

    1. The funding authority for HOPE VI Revitalization grants under 
this HOPE VI NOFA is provided by the Consolidated Appropriations Act, 
2006 (Pub. L.109-115, approved November 30, 2005) under the heading 
``Revitalization of Severely Distressed Public Housing (HOPE VI).''
    2. The program authority for the HOPE VI program is Section 24 of 
the 1937 Act, as amended by Section 402 of the HOPE VI Program 
Reauthorization and Small Community Main Street Rejuvenation and 
Housing Act of 2003 (Pub. L. 108-186, approved December 16, 2003).

C. Definitions

    1. CSS Team. The term ``CSS Team'' refers to PHA staff members and 
any consultants who will have the responsibility to design, implement, 
and manage your CSS program.
    2. CSS Partners. The term ``CSS Partners'' refers to the agencies 
and organizations that you will work with to provide supportive 
services for residents. A partner could be a local service organization 
such as a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local Temporary Assistance for Needy 
Families (TANF) agency that works with you to ensure that their 
services are coordinated and comprehensive.
    3. Developer. A developer is an entity contracted to develop (and 
possibly operate) a mixed finance development that includes public 
housing units, pursuant to 24 CFR part 941, subpart F. A developer most 
often has an ownership interest in the entity that is established to 
own and operate the replacement units (e.g., as the general partner of 
a limited partnership).
    4. Firmly Committed. ``Firmly committed'' means that the amount of 
match resources and their dedication to HOPE VI Revitalization 
activities must be explicit, in writing, and signed by a person 
authorized to make the commitment.
    5. Public Housing Project. A public housing project is a group of 
assisted housing units that has a single Project Number assigned by the 
Director of Public Housing of a HUD Field Office and has, or had (in 
the case of previously demolished units) housing units under an Annual 
Contributions Contract.

[[Page 26614]]

    6. Replacement Housing. Under this HOPE VI NOFA, a HOPE VI 
replacement housing unit shall be deemed to be any combination of 
public housing rental units, eligible homeownership units under Section 
24(d)(1)(J) of the 1937 Act, and HCV assistance that does not exceed 
the number of units demolished and disposed of at the targeted severely 
distressed public housing project.
    7. Severely Distressed. a. In accordance with Section 24(j)(2) of 
the 1937 Act, the term ``severely distressed public housing'' means a 
public housing project (or building in a project) that:
    (1) Requires major redesign, reconstruction, or redevelopment--or 
partial or total demolition--to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plan of the project;
    (2) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (3) (a) Is occupied predominantly by families who are very low-
income families with children, have unemployed members, and are 
dependent on various forms of public assistance; (b) has high rates of 
vandalism and criminal activity (including drug-related criminal 
activity) in comparison to other housing in the area; or (c) is lacking 
in sufficient appropriate transportation, supportive services, economic 
opportunity, schools, civic and religious institutions, or public 
services, resulting in severe social distress in the project;
    (4) Cannot be revitalized through assistance under other programs, 
such as the Capital Fund and Operating Fund programs for public housing 
under the 1937 Act, or the programs under Sections 9 or 14 of the 1937 
Act (as in effect before the effective date under Section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998)), because of cost constraints and inadequacy 
of available amounts; and
    (5) In the case of an individual building that currently forms a 
portion of the public housing project targeted by the application to 
this NOFA:
    (a) Is sufficiently separable from the remainder of the project of 
which the building is part, such that the revitalization of the 
building is feasible; or
    (b) Was part of the targeted public housing project that has been 
legally vacated or demolished, but for which HUD has not yet provided 
replacement housing assistance (other than tenant-based assistance). 
``Replacement housing assistance'' is defined as funds that have been 
furnished by HUD to perform major rehabilitation on, or reconstruction 
of, the public housing units that have been legally vacated or 
demolished.
    b. A severely distressed project that has been legally vacated or 
demolished (but for which HUD has not yet provided replacement housing 
assistance, other than tenant-based assistance) must have met the 
definition of physical distress not later than the day the demolition 
application approval letter was dated by HUD.
    8. Targeted Project. The targeted project is the current public 
housing project that will be revitalized with funding from this NOFA. 
The targeted project may include more than one public housing project 
or be a part of a public housing project. See Section III.C. of this 
NOFA for eligibility of multiple public housing projects and 
separability of a part of a public housing project.
    9. Team. The term ``your Team'' includes PHA staff who will be 
involved in HOPE VI grant administration, and any alternative 
management entity that will manage the revitalization process, be 
responsible for meeting construction time tables, and obligating 
amounts in a timely manner. This team includes any developer partners, 
program managers, property managers, subcontractors, consultants, 
attorneys, financial consultants, and other entities or individuals 
identified in the application who are proposed to carry out program 
activities.
    10. Temporary Relocation. There are no provisions for ``temporary 
relocation'' under the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act Of 1970 (URA). See Notice CPD 04-2, ``Guidance 
on the Application of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act Of 1970 (URA), As Amended, in HOPE VI 
Projects,'' paragraph IV.A.2. for the definition of ``temporary 
relocation'' as it applies to HOPE VI projects. The Notice can be 
obtained through HUDClips at http://www.hudclips.org/.
    11. Universal Design. Universal design is the design of products 
and environments to be usable by all people, to the greatest extent 
possible, without the need for adaptation or specialized design. The 
intent of universal design is to simplify life for everyone by making 
products, communications, and the built environment more usable by as 
many people as possible at little or no extra cost. Universal design 
benefits people of all ages and abilities. Examples include designing 
wider doorways, installing levers instead of doorknobs, and putting 
bathtub/shower grab bars in all units. Computers and telephones can 
also be set up in ways that enable as many residents as possible to use 
them. The Department has a publication that contains a number of ideas 
about how the principles of Universal Design can benefit persons with 
disabilities. To order a copy of Strategies for Providing Accessibility 
and Visitability for HOPE VI and Mixed Finance Homeownership, go to the 
publications and resource page of the HOPE VI Web site at http://www.huduser.org/publications/pubasst/strategies.html.

II. Award Information

A. Availability of HOPE VI Funds

    1. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of Fiscal Year (FY) 2006 
HOPE VI Funds, the FY 2007 budget proposes the rescission of the FY 
2006 HOPE VI Appropriation. Please note, therefore, that if Congress 
adopts this portion of the President's budget, this NOFA may be 
cancelled at a later date and awards made under this NOFA may not 
ultimately be funded.
    2. Revitalization Grants. Approximately $71.9 million of the FY2006 
HOPE VI appropriation has been allocated to fund HOPE VI Revitalization 
grants and will be awarded in accordance with this NOFA. There will be 
approximately four awards. The maximum amount you may request in your 
application for grant award is limited to $20 million or the sum of the 
amounts in Section IV.E. below, whichever is lower. HCV assistance is 
in addition to this amount.
    3. Housing Choice Voucher Assistance. Housing choice voucher (HCV) 
assistance is available from the tenant protection voucher fund to 
successful applicants that receive the Revitalization grant awards. The 
dollar amount of HCV assistance is in addition to the $20 million 
maximum award amount and will be based upon resident relocation needs. 
Applicants must prepare their housing choice voucher assistance 
applications for the targeted project in accordance with the 
requirements of Notice PIH 2005-15 (and any reinstatement of or 
successor to that Notice) and submit it in its entirety with the HOPE 
VI Revitalization Application. HUD will process the housing choice 
voucher

[[Page 26615]]

assistance applications for funded HOPE VI applicants.
    4. Grant term. The period for completion shall not exceed 54 months 
from the date the NOFA award is executed by HUD, as described in the 
grant agreement.

III. Eligibility Information

A. Eligible Applicants

    1. Only PHAs that have severely distressed housing in their 
inventory and are otherwise in conformance with the threshold 
requirements provided in Section III.C. of this NOFA are eligible to 
apply.
    2. Housing Choice Voucher Programs Only, Tribal Housing Agencies, 
and Others. PHAs that only administer HCV/Section 8 programs, tribal 
housing agencies and tribally-designated housing entities, are not 
eligible to apply. Non-profit organizations, for-profit organizations, 
and private citizens and entrepreneurs are not eligible to apply.
    3. Troubled Status. If HUD has designated your housing authority as 
troubled pursuant to Section 6(j)(2) of the 1937 Act, HUD will use 
documents and information available to it to determine whether you 
qualify as an eligible applicant. In accordance with Section 24(j) of 
the 1937 Act, the term ``applicant'' means:
    a. Any PHA that is not designated as ``troubled'' pursuant to 
Section 6(j)(2) of the 1937 Act;
    b. Any PHA for which a private housing management agent has been 
selected, or a receiver has been appointed, pursuant to Section 6(j)(3) 
of the 1937 Act; and
    c. Any PHA that is designated as ``troubled'' pursuant to Section 
6(j)(2) of the 1937 Act and that:
    (1) Is designated as troubled principally for reasons that will not 
affect its capacity to carry out a revitalization program;
    (2) Is making substantial progress toward eliminating the 
deficiencies of the agency that resulted in its troubled status;
    (3) Has not been found to be in non-compliance with fair housing or 
other civil rights requirements; or
    (4) Is otherwise determined by HUD to be capable of carrying out a 
revitalization program.

B. Cost Sharing or Matching

1. Match Requirements
    a. Revitalization grant Match. HUD is required by the 1937 Act (42 
U.S.C. 1437v(c)(1)(A)) to include the requirement for matching funds 
for all HOPE VI-related grants. You are required to have in place a 
match in the amount of five percent of the requested grant amount in 
cash or in-kind donations. Applications that do not demonstrate the 
minimum 5 percent match will not be considered for funding.
    b. Additional Community and Supportive Services (CSS) Match.
    (1) In accordance with the 1937 Act (42 U.S.C. 1437v(c)(1)(B)), in 
addition to the 5 percent Revitalization grant match in Section a. 
above, you may be required to have in place a CSS match. Funds used for 
the Revitalization grant match cannot be used for the CSS match.
    (2) If you are selected for funding through this NOFA, you may use 
up to 15 percent of your grant for CSS activities. However, if you 
propose to use more than 5 percent of your HOPE VI grant for CSS 
activities, you must have in place funds (cash or in-kind donations) 
from sources other than HOPE VI, that match the amount between 5 and 15 
percent of the grant that you will use for CSS activities. These 
resources do not need to be new commitments in order to be counted for 
match.
    c. No HOPE VI Funding in Match. In accordance with Section 24(c) of 
the Act, for purposes of calculating the amount of matching funds 
required by Sections a. and b. above, you may NOT include amounts from 
HOPE VI program funding, including HOPE VI Revitalization, HOPE VI 
Demolition, HOPE VI Neighborhood Networks or HOPE VI Main Street 
grants. You may include funding from other public housing sources 
(e.g., Capital Funds, ROSS funds), other federal sources, any state or 
local government source and any private contributions. You may also 
include the value of donated material or buildings, the value of any 
lease on a building, the value of the time and services contributed by 
volunteers, and the value of any other in-kind services or 
administrative costs provided.
    d. Firmly Committed. Match donations must be firmly committed. See 
the Definitions section for more information.
    e. Matching funds must be directly applicable to the revitalization 
of the targeted project and the transformation of the lives of 
residents.
    f. The PHA's staff time is not an eligible cash or in-kind match.
    g. See Section III, Program Requirements, (including Program 
Requirements that Apply to Match and Leverage and Program Requirements 
that Apply to Match) for match documentation requirements.

C. Other

    1. Eligible Revitalization Activities. HOPE VI Revitalization 
grants may be used for activities to carry out revitalization programs 
for severely distressed public housing in accordance with Section 24(d) 
of the 1937 Act. Revitalization activities approved by HUD must be 
conducted in accordance with the requirements of this NOFA. The 
following is a list of eligible activities.
    a. Relocation. Relocation, including reasonable moving expenses, 
for residents displaced as a result of the revitalization of the 
project. See Sections III.C. and V.A. of this NOFA for relocation 
requirements.
    b. Demolition. Demolition of dwelling units or non-dwelling 
facilities, in whole or in part, although demolition is not a required 
element of a HOPE VI revitalization plan.
    c. Disposition. Disposition of a severely distressed public housing 
site, by sale or lease, in whole or in part, in accordance with Section 
18 of the 1937 Act and implementing regulations at 24 CFR part 970. A 
lease of one year or more that is not incident to the normal operation 
of a project is considered a disposition that is subject to Section 18 
of the 1937 Act.
    d. Rehabilitation and Physical Improvement. Rehabilitation and 
physical improvement of:
    1. Public housing; and
    2. Community facilities, provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing, in accordance with 24 CFR 
968.112(b), (d), (e), and (g)-(o) and 24 CFR 968.130 and 968.135(b) and 
(d) or successor regulations, as applicable.
    e. Development. Development of:
    1. Public housing replacement units; and
    2. Other units (e.g., market-rate units), provided a need exists 
for such units and such development is performed with non-public 
housing funds.
    f.  Homeownership Activities. Assistance involving the 
rehabilitation and development of homeownership units. Assistance may 
include:
    1. Down payment or closing cost assistance;
    2. Hard or soft second mortgages; or
    3. Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
    g. Acquisition. Acquisition of:
    1. Rental units and homeownership units;

[[Page 26616]]

    2. Land for the development of off-site replacement units and 
community facilities (provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing);
    3. Land for economic development-related activities, provided that 
such acquisition is performed with non-public housing funds.
    h. Management Improvements. Necessary management improvements, 
including transitional security activities.
    i. Administration, Planning, Etc. Administration, planning, 
technical assistance, and other activities (including architectural and 
engineering work, program management, and reasonable legal fees) that 
are related to the implementation of the revitalization plan, as 
approved by HUD. See Cost Control Standards in the Program Requirements 
section of this NOFA.
    j. Community and Supportive Services (CSS).
    1. The CSS component of the HOPE VI program encompasses all 
activities that are designed to promote upward mobility, self-
sufficiency, and improved quality of life for the residents of the 
public housing project involved.
    2. CSS activities. CSS activities may include, but are not limited 
to:
    (a) Educational activities that promote learning and serve as the 
foundation for young people from infancy through high school 
graduation, helping them to succeed in academia and the professional 
world. Such activities, which include after-school programs, mentoring, 
and tutoring, must be created with strong partnerships with public and 
private educational institutions.
    (b) Adult educational activities, including remedial education, 
literacy training, tutoring for completion of secondary or 
postsecondary education, assistance in the attainment of certificates 
of high school equivalency, and English as a Second Language courses, 
as needed.
    (c) Readiness and retention activities, which frequently are key to 
securing private sector commitments to the provision of jobs.
    (d) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
    (e) Programs that provide entry-level, registered apprenticeships 
in construction, construction-related, maintenance, or other related 
activities. A registered apprenticeship program is a program that has 
been registered with either a State Apprenticeship Agency recognized by 
the Department of Labor's (DOL) Office of Apprenticeship Training, 
Employer and Labor Services (OATELS) or, if there is no recognized 
state agency, by OATELS. See also DOL regulations at 29 CFR part 29.
    (f) Training on topics such as parenting skills, consumer 
education, family budgeting, and credit management.
    (g) Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed. The Family Self-Sufficiency program can also be used to 
promote homeownership, providing assistance with escrow accounts and 
counseling.
    (h) Coordinating with health care providers or providing on-site 
space for health clinics, doctors, wellness centers, dentists, etc. 
that will primarily serve the public housing residents. HOPE VI funds 
may not be used to provide direct medical care to residents.
    (i) Substance and alcohol abuse treatment and counseling.
    (j) Activities that address domestic violence treatment and 
prevention.
    (k) Child care services that provide sufficient hours of operation 
to facilitate parental access to education and job opportunities, serve 
appropriate age groups, and stimulate children to learn.
    (l) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and to commute to their places 
of employment.
    (m) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    k. Leveraging. Leveraging other resources, including additional 
housing resources, supportive services, job creation, and other 
economic development uses on or near the project that will benefit 
future residents of the site.
    2. Threshold Requirements. Applications must meet all threshold 
requirements in order to be rated and ranked. If an application does 
not meet all threshold requirements, HUD will not consider the 
application as eligible for funding and will not rate and rank it. HUD 
will screen for technical deficiencies and administer a cure period. 
The subsection entitled, ``Corrections to Deficient Applications,'' in 
Section V.B. of the General Section is incorporated by reference and 
applies to this NOFA, except that clarifications or corrections of 
technical deficiencies in accordance with the information provided by 
HUD must be submitted within 7 calendar days of the date of receipt of 
the HUD notification. The thresholds listed below can be cured for 
technical deficiencies except for those indicated as non-curable. If an 
applicant does not cure all its technical deficiencies that relate to 
threshold requirements within the cure period, HUD will consider the 
threshold(s) in question to be failed, will not consider the 
application as eligible for funding and will not rate and rank it. 
Applicants MUST review and follow documentation requirements provided 
in this Thresholds Requirements Section and the Program Requirements of 
Section III.C. A false statement (or certification) in an application 
is grounds for denial or termination of an award and grounds for 
possible prosecution as provided in 18 U.S.C. 1001, 1010, and 1012, and 
32 U.S.C. 3729 and 3802. Required forms, certifications and assurances 
must be included in the HOPE VI application and will be available over 
the Internet at http://www.hud.gov/offices/adm/grants/otherhud.cfm, 
http://www.hud.gov/offices/pih/programs/ph/hope6/ and http://www.grants.gov.
    a. Curable Thresholds. The following thresholds may be cured in 
accordance with the criteria above. Examples of curable (correctable) 
technical deficiencies include but are not limited to inconsistencies 
in the funding request, failure to submit the proper certifications 
(e.g., HUD-2880), and failure to submit a signature and/or date of 
signature on a certification.
    (1) Severe Distress of Targeted Project. The targeted public 
housing project must be severely distressed. See Section I.C. of this 
NOFA for the definition of ``severely distressed.'' If the targeted 
project is not severely distressed, your application will not be 
considered for funding. Applicants must use the severe distress 
certification form provided with this NOFA and place it in your 
attachments. The certification must be signed by an engineer or 
architect licensed by a state licensing board. The license does not 
need to have been issued in the same state as the severely distressed 
project. The engineer or architect must include his or her license 
number and state of registration on the certification. The engineer or 
architect may not be an employee of the housing authority or the city.
    (2) Site Control. If you propose to develop off-site housing in ANY 
phase of your proposed revitalization plan, you MUST provide evidence 
in your application that you (not your developer) have site control of 
EVERY property. If you propose to develop off-site housing and you do 
not provide acceptable evidence of site control, your

[[Page 26617]]

ENTIRE application will be disqualified from further consideration for 
funding.
    (1) Site control documentation may only be contingent upon:
    (a) The receipt of the HOPE VI grant;
    (b) Satisfactory compliance with the environmental review 
requirements of this NOFA; and
    (c) The site and neighborhood standards in Section III.C. of this 
NOFA.
    (d ) Standard underwriting procedures.
    (2) If you demonstrate site control through an option to purchase, 
the option must extend for at least 180 days after the application 
submission date.
    (3) Evidence may include an option to purchase the property, a 
sales agreement, a land swap, or a deed. Evidence may NOT include a 
letter from the Mayor or other official, letters of support from 
members of the appropriate municipal entities, or a resolution 
evidencing the PHA's intent to exercise its power of eminent domain.
    (4) You must include evidence/documentation of site control in your 
attachments.
    (3) Land Use. Your application must include a certification from 
the appropriate local official (not the Executive Director) documenting 
that all required land use approvals for developed and undeveloped land 
have been secured for any off-site housing and other proposed uses, or 
that the request for such approval(s) is on the agenda for the next 
meeting of the appropriate authority in charge of land use. In the case 
of the latter, the certification must include the date of the meeting. 
You must include this certification in your attachments.
    (4) Selection of Developer. You must assure that:
    (a) You have initiated an RFQ by the application submission date 
for the competitive procurement of a developer for your first phase of 
construction, in accordance with 24 CFR 85.36 and 24 CFR 941.602(d) (as 
applicable). If you change developers after you are selected for 
funding, HUD reserves the right to rescind the grant; or
    (b) You will act as your own developer for the proposed project. If 
you change your plan and procure an outside developer after you are 
selected for funding, HUD reserves the right to rescind the grant.
    (c) You must demonstrate compliance with this threshold through 
completion and inclusion of the Assurances for HOPE VI Application 
document.
    (5) Relocation Plan Assurance. (a) If you have not yet relocated 
residents, you must assure that:
    (i) A HOPE VI Relocation Plan was completed as of the application 
due date (to learn more about HOPE VI Relocation Plans, applicants may 
review Notice CPD 04-02, ``Revision to Notice CPD 02-8, Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI 
Projects'';
    (ii) That it conforms to the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) requirements; and
    (iii) That it implements HOPE VI relocation goals, as described in 
Section V.A. of this NOFA. This means your plan must describe how the 
HOPE VI Relocation Plan incorporates the HOPE VI relocation goals in 
Section V.A.
    (b) If relocation was completed (i.e., the targeted public housing 
site is vacant) as of the application submission date, rather than 
certifying that the HOPE VI Relocation Plan has been completed, you 
must assure that the relocation was completed in accordance with URA 
and/or Section 18 requirements (depending on which of these 
requirements applied to the demolition in question).
    (c) You must demonstrate compliance with this threshold through 
completion and inclusion of the Assurances for HOPE VI Application 
document.
    (6) Resident Involvement in the Revitalization Program Assurance. 
You must assure that you have involved affected public housing 
residents at the beginning and during the planning process for the 
revitalization program, prior to submission of your application. If you 
have not included affected residents in the planning process, your 
application will not be considered for funding. You MUST follow the 
resident involvement requirements listed in the Program Requirements 
section, Section III.C. of this NOFA. You must demonstrate compliance 
with this threshold through completion and inclusion of the Assurances 
for HOPE VI Application document.
    (7) Standard Forms and Certifications. The last part of your 
application will be comprised of standard certifications common to many 
HUD programs. For the HOPE VI application, the required standard forms 
and certifications are:
    a. Application for Federal Assistance (SF-424); this will be placed 
at the front of your application;
    b. Acknowledgment of Application Receipt (HUD-2993), applicable 
ONLY if the applicant obtains a waiver from the electronic submission 
requirement; this will be placed at the front of your application;
    c. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    d. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    e. Program Outcome Logic Model (HUD-96010);
    f. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    g. Funding Application (developed in accordance with PIH Notice 
2005-15 or successor), including the Section 8 Tenant-Based Assistance 
Rental Certificate Program, Rental Voucher Program, form HUD-52515, if 
applicable; and
    h. Facsimile Transmittal (HUD-96011).
    (8) HOPE VI Revitalization Applicant Certifications. You must 
include in your application a certification from the Chairman of your 
Board of Commissioners to the requirements listed in the HOPE VI 
Revitalization Applicant Certifications. You must include this 
certification in your attachments.
    b. Non-Curable Thresholds. The following thresholds may NOT be 
cured in accordance with the criteria referenced in III.C.2 above.
    (1) One application. Each applicant may submit only one HOPE VI 
Revitalization application, in accordance with the criteria of this 
NOFA. If HUD receives multiple applications electronically, HUD will 
rate and rank the last application received and validated by Grants.gov 
by the application deadline. All other applications will not be 
considered eligible.
    (1) HUD will not consider applications sent entirely by facsimile 
(See General Section).
    (2) HUD will not accept for review or evaluation any videos 
submitted as part of the application or appendices.
    (3) HUD will not consider any application that does not meet the 
timely submission requirements for electronic submission, in accordance 
with the criteria of the General Section.
    (2) Appropriateness of Proposal. In accordance with Section 
24(e)(1) of the 1937 Act, each application must demonstrate the 
appropriateness of the proposal (revitalization plan) in the context of 
the local housing market relative to other alternatives. You must 
discuss other possible alternatives in the local housing market and 
explain why the housing envisioned in the application is more 
appropriate. This is a statutory requirement and an application 
threshold. If you do not demonstrate the appropriateness of the 
proposal (revitalization plan) in the context of the local housing 
market relative to other alternatives, your

[[Page 26618]]

application will not be considered for funding. Applicants must 
demonstrate compliance with this threshold in their narrative. Examples 
of alternative proposals may include:
    (1) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (2) Proposing a range of incomes, housing types (rental, 
homeownership, market-rate, public housing, townhouse, detached house, 
etc.), or costs which cannot be supported by a market analysis; or
    (3) Proposing to use the land in a manner that is contrary to the 
goals of your agency.
    (3) Contiguous, Single, and Scattered-Site Projects. Except as 
provided in sections (1) and (2) below, each application must target 
one severely distressed public housing project. You must provide a city 
map illustrating the current targeted site(s), whether contiguous, 
single, or scattered-site projects.
    (1) Contiguous Projects. Each application may request funds for 
more than one project if those projects are immediately (a) adjacent to 
one another or (b) within a quarter-mile of each other. If you include 
more than one project in your application, you must provide a map that 
clearly indicates that the projects are either adjacent or within a 
quarter-mile of each other. If HUD determines that they are not, your 
application will not be considered for funding.
    (2) Scattered Site Projects. Your application may request funds to 
revitalize a scattered site public housing project. The sites targeted 
in an application proposing to revitalize scattered sites (regardless 
of whether the scattered sites are under multiple project numbers) must 
fall within an area with a one-mile radius. You may identify a larger 
site if you can show that all of the targeted scattered site units are 
located within the hard edges (e.g., major highways, railroad tracks, 
lakeshore, etc.) of a neighborhood. If you propose to revitalize a 
project that extends beyond a one-mile radius or is otherwise beyond 
the hard edges of a neighborhood, your application will not be 
considered for funding. If you propose to revitalize a scattered site 
public housing project, you must provide a map that clearly indicates 
that the projects fall within an area with a one-mile radius or, if 
larger, are located within the hard edges (e.g., major highways, 
railroad tracks, lakeshore, etc.) of a neighborhood.
    (4) Sites Previously Funded by HOPE VI Revitalization grants. You 
may submit a Revitalization application that targets part of a project 
that is being, or has been, revitalized or replaced under a HOPE VI 
Revitalization grant awarded in previous years. You may not apply for 
new HOPE VI Revitalization funds for units in that project that were 
funded by the existing HOPE VI Revitalization grant or other HUD funds 
which are used to achieve significant revitalization of units (as 
opposed to regular upkeep), even if those funds are inadequate to pay 
the costs to revitalize or replace all of the targeted units. For 
example, if a project has 700 units and you were awarded a HOPE VI 
Revitalization grant or other HUD public housing funds to address 300 
of those units, you may submit an FY-2006 HOPE VI Revitalization 
application to revitalize the remaining 400 units. You may not apply 
for funds to supplement work on the original 300 units. If you request 
funds to revitalize/replace the units not funded by the previous HOPE 
VI Revitalization grant, you must provide a listing of which units were 
funded by the previous grant and which units are being proposed for 
funding under the current grant application. You must demonstrate 
compliance with this threshold in your narrative (including the above 
listing as relevant). If you request funds to revitalize units or 
buildings that have been funded by an existing HOPE VI Revitalization 
grant, your application will not be considered for funding.
    (5) Separability. In accordance with Section 24(j)(2)(A)(v) of the 
1937 Act, if you propose to target only a portion of a project for 
revitalization, in your narrative you must: (1) Demonstrate to HUD's 
satisfaction that the severely distressed public housing is 
sufficiently separable from the remainder of the project, of which the 
building is a part, to make use of the building feasible for 
revitalization. Separations may include a road, berm, catch basin, or 
other recognized neighborhood distinction; and (2) Demonstrate that the 
site plan and building designs of the revitalized portion will provide 
defensible space for the occupants of the revitalized building(s) and 
that the properties that remain will not have a negative influence on 
the revitalized buildings(s), either physically or socially. You must 
demonstrate compliance with this threshold in your narrative. If you do 
not propose to target only a portion of a project for revitalization, 
you may indicate, ``n/a'' in your narrative.
    (6) Desegregation Orders. You must be in full compliance with any 
desegregation or other court order, and voluntary compliance agreements 
related to Fair Housing (e.g., Title VI of the Civil Rights Act of 
1964, the Fair Housing Act, and Section 504 of the Rehabilitation Act 
of 1973) that affects your public housing program and that is in effect 
on the date of application submission. If you are not in full 
compliance, your application will be ineligible for funding. HUD will 
evaluate your compliance with this threshold.
    (7) Dun and Bradstreet Data Universal Numbering System (DUNS) 
Number Requirement. This threshold is hereby incorporated from the 
General Section. All applicants seeking funding directly from HUD must 
obtain a DUNS number and include the number in its Application for 
Federal Assistance submission. Failure to provide a DUNS number will 
prevent you from obtaining an award, regardless of whether it is a new 
award or renewal of an existing award. This policy is pursuant to the 
Office of Management and Budget (OMB) policy issued in the Federal 
Register on June 27, 2003 (68 FR 38402). HUD published its regulation 
implementing the DUNS number requirement on November 9, 2004 (69 FR 
65024). A copy of the OMB Federal Register notice and HUD's regulation 
implementing the DUNS number can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/duns.cfm. Applicants cannot submit 
applications electronically without a DUNS number entry. Applicants 
must carefully enter the DUNS number on the application package, making 
sure it is identical to the DUNS number under which the Authorized 
Organization Representative is registered to submit an application.
    (8) Compliance with Fair Housing and Civil Rights Laws. This 
threshold is hereby incorporated from the General Section. (a) With the 
exception of federally recognized Indian tribes and their 
instrumentalities, applicants must comply with all applicable fair 
housing and civil rights requirements in 24 CFR 5.105(a). If you are a 
federally recognized Indian tribe, you must comply with the 
nondiscrimination provisions enumerated at 24 CFR 1000.12, as 
applicable.
    (b) If you, the applicant: (i) Have been charged with an ongoing 
systemic violation of the Fair Housing Act; or (ii) Are a defendant in 
a Fair Housing Act lawsuit filed by the Department of Justice alleging 
an ongoing pattern or practice of discrimination; or (iii) Have 
received a letter of findings identifying ongoing systemic 
noncompliance under Title VI of the Civil Rights Act of 1964, Section 
504 of the Rehabilitation Act of

[[Page 26619]]

1973, or Section 109 of the Housing and Community Development Act of 
1974, and the charge, lawsuit, or letter of findings referenced in 
subparagaph (i), (ii), or (iii) above has not been resolved to HUD's 
satisfaction before the application deadline, then you are ineligible 
and HUD will not rate and rank your application. HUD will determine if 
actions to resolve the charge, lawsuit, or letter of findings taken 
before the application deadline are sufficient to resolve the matter.
    Examples of actions that would normally be considered sufficient to 
resolve the matter include, but are not limited to: (i) A voluntary 
compliance agreement signed by all parties in response to a letter of 
findings; (ii) A HUD-approved conciliation agreement signed by all 
parties; (iii) A consent order or consent decree; or (iv) An issuance 
of a judicial ruling or a HUD Administrative Law Judge's decision.
    (9) Delinquent Federal Debts. This threshold is hereby incorporated 
from the General Section. Consistent with the purpose and intent of 31 
U.S.C. 3720B and 28 U.S.C. 3201(e), HUD will not award federal funds to 
an applicant that has an outstanding delinquent federal debt unless (1) 
the delinquent account is paid in full, (2) a negotiated repayment 
schedule is established and the repayment schedule is not delinquent, 
or (3) other arrangements satisfactory to HUD are made prior to the 
deadline date.
    (10) Debarment and Suspension. This threshold is hereby 
incorporated from the General Section. In accordance with 24 CFR part 
24, no award of federal funds may be made to applicants that are 
presently debarred or suspended, or proposed to be debarred or 
suspended from doing business with the federal government.
3. Program Requirements
    a. Demolition.
    (1) You may not carry out nor permit others to carry out the 
demolition of the targeted project or any portion of the project until 
HUD approves, in writing, one of the following ((a)-(c)), and until HUD 
has also (i) approved a Request for Release of Funds submitted in 
accordance with 24 CFR part 58, or (ii) if HUD performs an 
environmental review under 24 CFR part 50, approved the property for 
demolition, in writing, following its environmental review.
    (a) Information regarding demolition in your HOPE VI Revitalization 
Application, along with Supplemental Submissions requested by HUD after 
the award of the grant. Section 24(g) of the 1937 Act provides that 
severely distressed public housing that is demolished pursuant to a 
revitalization plan is not required to be approved through a demolition 
application under Section 18 of the 1937 Act or regulations at 24 CFR 
part 970. If you do not receive a HOPE VI Revitalization grant, the 
information in your application will not be used to process a request 
for demolition;
    (b) A demolition application under Section 18 of the 1937 Act. 
While a Section 18 approval is not required for HOPE VI related 
demolition, you will not have to wait for demolition approval through 
your supplemental submissions, as described in Section (a) above; or
    (c) A Section 202 Mandatory Conversion Plan, in compliance with 
regulations at 24 CFR part 971 and other applicable HUD requirements, 
if the project is subject to Mandatory Conversion (Section 202 of the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. 
L. 104-134, approved April 26, 1996). A Mandatory Conversion Plan 
concerns the removal of a public housing project from a PHA's 
inventory.
    b. Development.
    (1) For any standard (non-mixed finance) public housing development 
activity (whether on-site reconstruction or off-site development), you 
must obtain HUD approval of a standard development proposal submitted 
under 24 CFR part 941 (or successor part).
    (2) For mixed-finance housing development, you must obtain HUD 
approval of a mixed finance proposal, submitted under 24 CFR part 941, 
subpart F (or successor part and subpart).
    (3) For new construction of community facilities primarily intended 
to facilitate the delivery of community and supportive services for 
residents of the project and residents of off-site replacement housing, 
you must comply with 24 CFR part 941 (or successor part). Information 
required for this activity must be included in either a standard or 
mixed finance development proposal, as applicable.
    c. Homeownership.
    (1) For homeownership replacement units developed under a 
revitalization plan, you must obtain HUD approval of a homeownership 
proposal. Your homeownership proposal must conform to either:
    (a) Section 24(d)(1)(J) of the 1937 Act; or
    (b) Section 32 of the 1937 Act (see 24 CFR part 906). Additional 
information on this option may be found at http://www.hud.gov/offices/pih/centers/sac/homeownership.
    (2) The homeownership proposal must be consistent with the Section 
8 Area Median Income (AMI) limitations (80 percent of AMI) and any 
other applicable provisions under the 1937 Act. (HUD publishes AMI 
tables for each family size in each locality annually. The income limit 
tables can be found at http://www.huduser.org/datasets/il/il05/index.html.)
    d. Acquisition.
    (1) Acquisition Proposal. Before you undertake any acquisition 
activities with HOPE VI or other public housing funds, you must obtain 
HUD approval of an acquisition proposal that meets the requirements of 
24 CFR 941.303.
    (2) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must obtain HUD approval of a Development Proposal in accordance 
with 24 CFR 941.304 (conventional development) or 24 CFR 941.606 (mixed 
finance development).
    (2) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (3) Land for Economic Development-Related Activities.
    (a) Acquisition of land for this purpose is eligible only if the 
economic development-related activities specifically promote the 
economic self-sufficiency of residents.
    (b) Limited infrastructure and site improvements associated with 
developing retail, commercial, or office facilities, such as rough 
grading and bringing utilities to (but not on) the site are eligible 
activities with prior HUD approval.
    e. Match. See Section III.B. and III.C.3, Program Requirements that 
Apply to Match and Leverage.
    f. Leverage. See Section III.C.3, Program Requirements that Apply 
to Match and Leverage .
    (1) You must actively enlist other stakeholders who are vested in 
and can provide significant financial assistance to your revitalization 
effort, both for physical development and CSS.
    (2) HUD seeks to fund mixed-finance developments that use HOPE VI 
funds to leverage the maximum amount of other funds, particularly from 
private sources, that will result in revitalized public housing, other 
types of assisted and market-rate housing, and private retail and 
economic development.
    (3) There are four types of Leverage: Development, CSS, 
Anticipatory, and Collateral. Development and CSS

[[Page 26620]]

leverage are program requirements and will be described here. 
Anticipatory and Collateral leverage are included only in the Leverage 
rating factor and are described in Section V. of this NOFA.
    (4) See the Program Requirements that Apply to Match and Leverage 
in this section.
    g. Access to Services. For both on-site and any off-site units, 
your overall Revitalization plan must result in increased access to 
municipal services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well-integrated and strong linkages must be 
established with the appropriate federal, state, and local agencies, 
nonprofit organizations, and the private sector to achieve such access.
    h. Building Standards.
    (1) Building Codes. All activities that include construction, 
rehabilitation, lead-based paint removal, and related activities must 
meet or exceed local building codes. You are encouraged to read the 
policy statement and final report of the HUD Review of Model Building 
Codes that identifies the variances between the design and construction 
requirements of the Fair Housing Act and several model building codes. 
That report can be found on the HUD Web site at http://www.hud.gov/fhe/modelcodes.
    (2) Deconstruction. HUD encourages you to design programs that 
incorporate sustainable construction and demolition practices, such as 
the dismantling or ``deconstruction'' of public housing units, 
recycling of demolition debris, and reusing of salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at http://www.hud.gov/deconstr.pdf.
    (3) Partnership for Advancing Technology in Housing (PATH). HUD 
encourages you to use PATH technologies in the construction and 
delivery of replacement housing. PATH is a voluntary initiative that 
seeks to accelerate the creation and widespread use of advanced 
technologies to radically improve the quality, durability, 
environmental performance, energy efficiency, and affordability of our 
Nation's housing.
    (a) PATH's goal is to achieve dramatic improvement in the quality 
of American housing by the year 2010. PATH encourages leaders from the 
home building, product manufacturing, insurance and financial 
industries, and representatives from federal agencies dealing with 
housing issues to work together to spur housing design and construction 
innovations. PATH will provide technical support in design and cost 
analysis of advanced technologies to be incorporated in project 
construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.
    (c) More information, the list of technologies, the latest PATH 
Newsletter, results from field demonstrations, and PATH projects can be 
found at http://www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction must comply with the latest HUD-adopted Model 
Energy Code issued by the Council of American Building Officials.
    (b) HUD encourages you to set higher standards, where cost 
effective, for energy and water efficiency in HOPE VI new construction, 
which can achieve utility savings of 30 to 50 percent with minimal 
extra cost.
    (c) You are encouraged to negotiate with your local utility company 
to obtain a lower rate. Utility rates and tax laws vary widely 
throughout the country. In some areas, PHAs are exempt or partially 
exempt from utility rate taxes. Some PHAs have paid unnecessarily high 
utility rates because they were billed at an incorrect rate 
classification.
    (d) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (e) You must use new technologies that will conserve energy and 
decrease operating costs where cost effective. Examples of such 
technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (5) Universal Design. HUD encourages you to incorporate the 
principles of universal design in the construction or rehabilitation of 
housing, retail establishments, and community facilities, or when 
communicating with community residents at public meetings or events.
    (6) Energy Star. HUD has adopted a wide-ranging energy action plan 
for improving energy efficiency in all program areas. As a first step 
in implementing the energy plan, HUD, the Environmental Protection 
Agency (EPA), and the Department of Energy (DoE) have signed a joint 
partnership to promote energy efficiency in HUD's affordable housing 
efforts and programs. The purpose of the Energy Star partnership is to 
promote energy efficiency of the affordable housing stock, but also to 
help protect the environment. Applicants constructing, rehabilitating, 
or maintaining housing or community facilities are encouraged to 
promote energy efficiency in design and operations. They are urged 
especially to purchase and use Energy Star-labeled products. Applicants 
providing housing assistance or counseling services are encouraged to 
promote Energy Star building by homebuyers and renters. Program 
activities can include developing Energy Star promotional and 
information materials, outreach to low- and moderate-income renters and 
buyers on the benefits and savings when using Energy Star products and 
appliances, and promoting the designation of community buildings and 
homes as Energy Star compliant. For further information about Energy 
Star, see http://www.energystar.gov or call 888-STAR-YES (888-782-
7937), or for the hearing-impaired, call 888-588-9920 TTY. See also the 
energy efficiency requirements in Section III.C. above. See Section 
V.9.f. of this NOFA for the Energy Star Rating Factor.
    (7) Lead-Based Paint. You must comply with lead-based paint 
evaluation and reduction requirements as provided for under the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.). You 
also must comply with regulations at 24 CFR part 35, 24 CFR 965.701, 
and 24 CFR 968.110(k), as they may be amended or revised from time to 
time. Unless otherwise provided, you will be responsible for lead-based 
paint evaluation and reduction activities. The National Lead 
Information Hotline is 800-424-5323.
    i. Labor Standards. The following standards must be implemented as 
appropriate in regard to HOPE VI grants:
    (1) Labor Standards.
    (a) Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation, of a public housing project must 
be paid, as set forth in a wage determination that the PHA must

[[Page 26621]]

obtain prior to bidding on each construction contract. The wage 
determination and provisions requiring payment of these wage rates must 
be included in the construction contract;
    (b) HUD-determined wage rates apply to:
    (i) Operation (including nonroutine maintenance) of revitalized 
housing, and
    (ii) Demolition followed only by filling in the site and 
establishing a lawn.
    (2) Exclusions. Under Section 12(b) of the 1937 Act, wage rate 
requirements do not apply to individuals who:
    (a) Perform services for which they volunteered;
    (b) Do not receive compensation for those services or are paid 
expenses, reasonable benefits, or a nominal fee for the services; and
    (c) Are not otherwise employed in the work involved (24 CFR part 
70).
    (3) If other federal programs are used in connection with your HOPE 
VI activities, labor standards requirements apply to the extent 
required by the other federal programs on portions of the project that 
are not subject to Davis-Bacon rates under the 1937 Act.
    j. Operation and Management Principles and Policies, and Management 
Agreement. HOPE VI Revitalization grantees will be required to develop 
Management Agreements that describe their operation and management 
principles and policies for their public housing units. You and your 
procured property manager, if applicable, must comply (to the extent 
required) with the provisions of 24 CFR part 966 in planning for the 
implementation of the operation and management principles and policies 
described below.
    (a) Rewarding work and promoting family stability by promoting 
positive incentives such as income disregards and ceiling rents;
    (b) Instituting a system of local preferences adopted in response 
to local housing needs and priorities, e.g., preferences for victims of 
domestic violence, residency preferences, working families, and 
disaster victims. Note that local preferences for public housing must 
comply with Fair Housing requirements at 24 CFR 960.206;
    (c) Encouraging self-sufficiency by including lease requirements 
that promote involvement in the resident association, performance of 
community service, participation in self-sufficiency activities, and 
transitioning from public housing;
    (d) Implementing site-based waiting lists that follow project-based 
management principles for the redeveloped public housing. Note that 
site-based waiting lists for public housing must comply with Fair 
Housing requirements at 24 CFR 903.7(b)(2);
    (e) Instituting strict applicant screening requirements such as 
credit checks, references, home visits, and criminal records checks;
    (f) Strictly enforcing lease and eviction provisions;
    (g) Improving the safety and security of residents through the 
implementation of defensible space principles and the installation of 
physical security systems such as surveillance equipment, control 
engineering systems, etc;
    (h) Enhancing ongoing efforts to eliminate drugs and crime from 
neighborhoods through collaborative efforts with federal, state, and 
local crime prevention programs and entities such as:
    (i) Local law enforcement agencies;
    (ii) Your local United States Attorney;
    (iii) The Weed and Seed Program, if the targeted project is located 
in a designated Weed and Seed area. Operation Weed and Seed is a multi-
agency strategy that ``weeds out'' violent crime, gang activity, drug 
use, and drug trafficking in targeted neighborhoods and then ``seeds'' 
the target area by restoring these neighborhoods through social and 
economic revitalization. Law enforcement activities constitute the 
``weed'' portion of the program. Revitalization, which includes 
prevention, intervention, and treatment services as well as 
neighborhood restoration, constitutes the ``seed''. For more 
information, see the Community and Safety and Conservation Web site at 
http://www.hud.gov/offices/pih/divisions/cscd/.
    k. Non-Fungibility for Moving To Work (MTW) PHAs. Funds awarded 
under this NOFA are not fungible under MTW agreements and must be 
accounted for separately, in accordance with the HOPE VI Revitalization 
grant Agreement, the requirements in OMB Circulars A-87, ``Cost 
Principles Applicable to Grants, Contracts and Other Agreements with 
State and Local Governments,'' A-133, ``Audits of States, Local 
Governments, and Non-Profit Organizations'' and the regulations 24 CFR 
part 85, ``Administrative Requirements for Grants and Cooperative 
Agreements to State, Local, and Federally Recognized Indian Tribal 
Governments,'', and GAAP.
    l. Resident and Community Involvement.
    (1) General. You are required to involve the affected public 
housing residents, state and local governments, private service 
providers, financing agencies, and developers in the planning process, 
proposed implementation, and management of your revitalization plan. 
This involvement must be continuous from the beginning of the planning 
process through the implementation and management of the grant, if 
awarded.
    (2) Resident Training Session. You must conduct at least one 
training session for residents of the severely distressed project on 
the HOPE VI development process. HUD does not prescribe the content of 
this meeting.
    (3) Public Meetings.
    (a) You must conduct at least three public meetings with residents 
and the broader community, in order to involve them in a meaningful way 
in the process of developing the revitalization plan and preparing the 
application. One of these meetings must have taken place at the 
beginning of the planning process.
    (b) These three public meetings must take place on different days 
from each other and from the resident training session.
    (c) During these three meetings, you must address the issues listed 
below (i.e., all issues need not be addressed at each meeting):
    (i) The HOPE VI planning and implementation process;
    (ii) The proposed physical plan, including site and unit design, 
and whether the unit design is in compliance with Fair Housing Act and 
Uniform Federal Accessibility Standards (UFAS) standards;
    (iii) The extent of proposed demolition;
    (iv) Planned community and supportive service activities;
    (v) Other proposed revitalization activities;
    (vi) Relocation issues, including relocation planning, mobility 
counseling, and maintaining the HOPE VI community planning process 
during the demolition and reconstruction phases where temporary 
relocation, i.e., relocation for a reasonable period (less than one 
year), is involved;
    (vii) Reoccupancy plans and policies, including site-based waiting 
lists; and
    (viii) Section 3 and employment opportunities to be created as a 
result of redevelopment activities.
    (4) Accessibility. All training sessions and meetings must be held 
in facilities that are accessible to persons with disabilities, provide 
services such as day care, transportation, and sign language 
interpreters as appropriate, and as practical and applicable, be 
conducted in English and the language(s) most appropriate for the 
community.

[[Page 26622]]

    (5) Allowable Time Period for Training and Meetings.
    (a) At least one public meeting, which included representation from 
both the involved public housing residents and the community, must have 
been held at the beginning of the revitalization planplanning period;
    (b) At least one training session must have been held after the 
publication date of this NOFA in the Federal Register; and
    (c) The minimum of two more public meetings must have been held 
after the publication date of this NOFA in the Federal Register.
    (d) The above minimum number of trainings and meetings are required 
to meet the Resident Involvement threshold in Section III.C.2 of this 
NOFA. Additional meetings and trainings will be counted toward 
demonstration of continual inclusion of the residents and community in 
the rating factors.
    m. CSS Program Requirements.
    (1) Term Period. CSS programs and services must last for the life 
of the grant and must be carefully planned so that they will be 
sustainable after the HOPE VI grant period ends.
    (2) Allowed Funding Mechanisms:
    (a) Maximum CSS grant amount. Consistent with Sections 24(d)(1)(L) 
and 24(j)(3) of the 1937 Act, you may use up to 15 percent of the total 
HOPE VI grant to pay the costs of CSS activities. See Section III.B.1. 
of this NOFA for CSS grant matching requirements. You may spend 
additional sums on CSS activities using donations, other HUD funds made 
available for that purpose, other federal, state, local, PHA, or 
private-sector donations (leverage).
    (b) CSS Endowment Trust. Consistent with Section 24(d)(2) of the 
1937 Act, you may deposit up to 15 percent of your HOPE VI grant (the 
maximum amount of the award allowable for CSS activities) into an 
endowment trust to provide CSS activities. In order to establish an 
endowment trust, you must first execute with HUD a HOPE VI Endowment 
Trust Addendum to the grant agreement. When reviewing your request to 
set up an endowment trust, HUD will take into consideration your 
ability to pay for current CSS activities with HOPE VI or other funds 
and the projected long-term sustainability of the endowment trust to 
carry out those activities.
    (3) CSS Team and Partners.
    (a) The term ``CSS Team'' refers to PHA staff members and any 
consultants who will have the responsibility to design, implement, and 
manage your CSS program.
    (b) The term ``CSS Partners'' refers to the agencies and 
organizations that you will work with to provide supportive services 
for residents. A partner could be a local service organization such as 
a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local Temporary Assistance for Needy 
Families (TANF) agency that works with you to ensure that their 
services are coordinated and comprehensive.
    (c) Partner Agreements. There are several relationships that you 
may have with your partners:
    (i) Subgrant Agreements. You may enter into subgrant agreements 
with nonprofit organizations or state or local governments for the 
performance of CSS activities in accordance with your approved CSS work 
plan.
    (ii) Contracts. You may enter into a contract with for-profit 
businesses, nonprofit organizations, or state or local governments for 
the performance of CSS activities in accordance with your approved CSS 
work plan.
    (iii) Memoranda of Understanding (MOU). You may enter into an MOU 
with any entity that furnishes CSS services for the performance of 
activities in accordance with your approved CSS work plan. However, if 
money is to change hands, the MOU must be formalized with a contract or 
subgrant.
    (iv) Informal Relationships. You may accept assistance from 
partners without prior documentation of your partner relationship. 
However, informal relationships do not lend themselves to planning and 
should definitely be formalized and memorialized with a binding 
contract or subgrant if money changes hands.
    (4) Tracking and Case Management. If selected, the grantee is 
responsible for tracking and providing CSS programs and services to 
residents currently living on the targeted public housing site and 
residents already relocated from the site. It is imperative that case 
management services begin immediately upon award so that residents who 
will be relocated have time to participate in and benefit from CSS 
activities before leaving the site, and that residents who have already 
been relocated are able to participate in and benefit from CSS 
activities.
    (5) CSS Strategy and Objectives Requirements.
    (a) Transition to Housing Self-Sufficiency. One of HUD's major 
priorities is to assist public housing residents in their efforts to 
become financially self-sufficient and less dependent upon direct 
government housing assistance. Your CSS program must include a well-
defined, measurable endeavor that will enable public housing residents 
to transition to other affordable housing programs and to market 
housing. Family Self-Sufficiency (FSS) and CSS activities that are 
designed to increase education and income levels are considered a part 
of this endeavor, as is the establishment of reasonable limits on the 
length of time any household that is not headed by an elderly or 
disabled person can reside in a public housing unit within a HOPE VI 
Revitalization Development.
    (b) Neighborhood Networks. All FY2006 Revitalization grantees will 
be required to establish Neighborhood Networks Centers (NNC) and to 
promote the inclusion of infrastructure that permits unit-based access 
to broadband internet connectivity in all new and replacement public 
housing units. This program provides residents with on-site access to 
computer and training resources that create knowledge and experience 
with computers and the Internet as tools to increase access to CSS, job 
training, and the job market. Grantees may use HOPE VI funds to 
establish NNCs and to provide unit-based Internet connectivity. More 
information on the requirements of the NNC program is available on the 
Neighborhood Networks Web site at http://www.hud.gov/nnw/nnwindex.html. 
There will not be a separate FY-2006 funded NOFA for HOPE VI 
Neighborhood Networks programs.
    (c) Quantifiable Goals. The objectives of your CSS program must be 
results-oriented, with quantifiable goals and outcomes that can be used 
to measure progress and make changes in activities as necessary.
    (d) Appropriate Scale and Type.
    (i) CSS activities must be of an appropriate scale, type, and 
variety to meet the needs of all residents (including adults, seniors, 
youth ages 16 to 21, and children) of the severely distressed project, 
including residents remaining on-site, residents who will relocate 
permanently to other PHA units or Housing Choice Voucher-assisted 
housing, residents who will relocate temporarily during the 
construction phase, and new residents of the revitalized units.
    (ii) Non-public housing residents may also participate in CSS 
activities, as long as the primary participants in the activities are 
residents as described in Section (i) above.
    (e) Coordination.
    (i) CSS activities must be consistent with state and local welfare 
reform requirements and goals.
    (ii) Your CSS activities must be coordinated with the efforts of 
other

[[Page 26623]]

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

[[Page 26624]]

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

[[Page 26625]]

    (i) Relocation or temporary relocation carried out as a result of 
rehabilitation under an approved revitalization plan is subject to the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970 (URA), the URA regulations at 49 CFR part 24, and 
regulations at 24 CFR 968.108 or successor part.
    (ii) Relocation carried out as a result of acquisition under an 
approved revitalization plan is subject to the URA and regulations at 
24 CFR 941.207 or successor part.
    (iii) Relocation carried out as a result of disposition under an 
approved revitalization plan is subject to Section 18 of the 1937 Act, 
as amended.
    (iv) Relocation carried out as a result of demolition under an 
approved revitalization plan is subject to the URA regulations at 24 
CFR part 24.
    (b) You must provide suitable, accessible, decent, safe, and 
sanitary housing for each family required to relocate as a result of 
revitalization activities under your revitalization plan. Any person 
(including individuals, partnerships, corporations, or associations) 
who moves from real property or moves personal property from real 
property directly (1) because of a written notice to acquire real 
property in whole or in part, or (2) because of the acquisition of the 
real property, in whole or in part, for a HUD-assisted activity, is 
covered by federal relocation statute and regulations. Specifically, 
this type of move is covered by the acquisition policies and procedures 
and the relocation requirements of the URA, and the implementing 
government-wide regulation at 49 CFR part 24, and Notice CPD 04-02 (and 
any successor notice), ``Revision to Notice CPD 02-8, Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI 
Projects''. The relocation requirements of the URA and the government-
wide regulations, as well as CPD Notice 02-08, cover any person who 
moves permanently from real property or moves personal property from 
real property directly because of acquisition, rehabilitation, or 
demolition for an activity undertaken with HUD assistance.
    (2) Relocation Plan. Each applicant must complete a HOPE VI 
Relocation plan in accordance with the requirements stated in Section 
IV.B. of this NOFA.
    (a) The HOPE VI Relocation plan is intended to ensure that PHAs 
adhere to the URA and that all residents who have been or will be 
temporarily or permanently relocated from the site are provided with 
CSS activities such as mobility counseling and direct assistance in 
locating housing. Your HOPE VI Relocation plan must serve to minimize 
permanent displacement of current residents of the public housing site 
who wish to remain in or return to the revitalized community. Your HOPE 
VI Relocation plan must also furnish alternative permanent housing for 
current residents of the public housing site who do not wish to remain 
in or return to the revitalized community. Your CSS program must 
provide for the delivery of community and supportive services to 
residents prior to any relocation, temporary or permanent.
    (b) You are encouraged to involve HUD-approved housing counseling 
agencies, including faith-based, nonprofit and other organizations, and 
individuals in the community to which relocatees choose to move, in 
order to ease the transition and minimize the impact on the 
neighborhood. HUD will view favorably innovative programs such as 
community mentors, support groups, and the like.
    (c) If applicable, you are encouraged to work with surrounding 
jurisdictions to assure a smooth transition if residents choose to move 
from your jurisdiction to the surrounding area.
    q. Well-Functioning Communities. See Section V.A. of this NOFA for 
requirements that the unit mix of on-site, off-site and homeownership 
units create a well-functioning community.
    r. Design. HUD is seeking excellence in design. You must carefully 
select your architects and planners, and enlist local affiliates of 
national architectural and planning organizations such as the American 
Institute of Architects, the American Society of Landscape Architects, 
the American Planning Association, the Congress for the New Urbanism, 
and the department of architecture at a local college or university to 
assist you in assessing qualifications of design professionals or 
participating on a selection panel that results in the procurement of 
excellent design services. You should select a design team that is 
committed to a process in which residents, including young people and 
seniors, the broader community, and other stakeholders participate in 
designing the new community.
    Your proposed site plan, new units, and other buildings must be 
designed to be compatible with and enrich the surrounding neighborhood. 
Local architecture and design elements and amenities should be 
incorporated into the new or rehabilitated homes so that the 
revitalized sites and structures will blend into the broader community 
and appeal to the market segments for which they are intended. Housing, 
community facilities, and economic development space must be well 
integrated. You must select members of your team who have the ability 
to meet these requirements.
    s. Internet Access. You must have access to the Internet and 
provide HUD with e-mail addresses of key staff and contact people.
    t. Non-Public Housing Funding for Non-Public Housing or Replacement 
Units. Public housing funds may only be used to develop Replacement 
Housing. You may not use public housing funds, which include HOPE VI 
funds, to develop: retail or commercial space; economic development 
space; or housing units that are not Replacement Housing, as defined in 
this NOFA
    u. Market-Rate Housing and Economic Development. If you include 
market-rate housing, economic development, or retail structures in your 
revitalization plan, such proposals must be supported by a market 
assessment from an independent third party, credentialed market 
research firm, or professional. This assessment should describe its 
assessment of the demand and associated pricing structure for the 
proposed residential units, economic development or retail structures, 
based on the market and economic conditions of the project area.
    v. Eminent Domain and Public Use. Section 726 of the FY 2006 HUD 
Appropriations Act, under which this NOFA is funded, prohibits any use 
of these funds ``to support any Federal, State, or local projects that 
seek to use the power of eminent domain, unless eminent domain is used 
only for a public use.'' The term ``public use'' is expressly stated 
not ``to include economic development that primarily benefits private 
entities.'' Accordingly, applications under this NOFA may not propose 
mixed-use projects in which housing is complemented appreciably with 
commercial facilities (i.e., economic development) if eminent domain is 
used for the site.
    w. Cost Control Standards.
    (1) Your hard development costs must be realistically developed 
through the use of technically competent methodologies, including cost 
estimating services, and should be comparable to industry standards for 
the kind of construction to be performed in the proposed geographic 
area.
    (2) Your cost estimates must represent an economically viable 
preliminary plan for designing, planning, and carrying out your 
proposed activities in accordance with local costs of labor, materials, 
and services.

[[Page 26626]]

    (3) Your projected soft costs must be reasonable and comparable to 
industry standards. Upon award, soft costs will be subject to HUD's 
``Safe Harbor'' cost control standards. For rental units, these safe 
harbors provide specific limitations on such costs as developer's fees 
(between 9 and 12 percent), PHA administration/consultant cost (no more 
than 3 to 6 percent of the total project budget), contractor's fee (6 
percent), overhead (2 percent), and general conditions (6 percent). 
HUD's Cost Control and Safe Harbor Standards can be found on HUD's HOPE 
VI Web site.
    x. Timeliness of Development Activity. Grantees must proceed within 
a reasonable timeframe, as indicated below. In determining 
reasonableness of such timeframe, HUD will take into consideration 
those delays caused by factors beyond your control. These timeframes 
must be reflected in the form of a program schedule, in accordance with 
the timeframes below:
    1. Grantees must submit Supplemental Submissions within 90 days 
from the date of HUD's written request.
    2. Grantees must submit CSS work plans within 90 days from the 
execution of the grant agreement.
    3. Grantees must start construction within 12 months from the date 
of HUD's approval of the Supplemental Submissions as requested by HUD 
after grant award. This time period may not exceed 18 months from the 
date the grant agreement is executed.
    4. Grantees must submit the development proposal (i.e., whether 
mixed-finance development, homeownership development, etc.) for the 
first phase of construction within 12 months of grant award. The 
program schedule must indicate the date on which the development 
proposal for each phase of the revitalization plan will be submitted to 
HUD.
    5. The closing of the first phase must take place within 15 months 
of grant award. For this purpose, ``closing'' means all financial and 
legal arrangements have been executed and actual activities 
(construction, etc.) are ready to commence.
    6. Grantees must complete construction within 48 months from the 
date of HUD's approval of your Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the grant 
agreement is executed.
    7. All other required components of the revitalization plan and any 
other submissions not mentioned above must be submitted in accordance 
with the Quarterly Report Administrative and Compliance Checkpoints 
Report, as approved by HUD.
    z. HOPE VI Endowment Trust Addendum to the Grant Agreement. This 
document must be executed between the grantee and HUD in order for the 
grantee to use CSS funds in accordance with this NOFA.
    aa. Revitalization Plan. After HUD conducts a post-award review of 
your application and makes a visit to the site, you will be required to 
submit components of your revitalization plan to HUD, as provided in 
the HOPE VI Revitalization grant Agreement. These components include, 
but are not limited to:
    a. Supplemental Submissions, including a HOPE VI Program Budget;
    b. A Community and Supportive Services work plan, in accordance 
with guidance provided by HUD;
    c. A standard or mixed-finance development proposal, as applicable;
    d. A demolition and disposition application, as applicable; and
    e. A homeownership proposal, as applicable.
    bb. Pre-Award Accounting System Surveys. HUD may arrange for a pre-
award survey of the applicant's financial management system in cases 
where the recommended applicant has no prior federal support, HUD's 
program officials have reason to question whether the applicant's 
financial management system meets federal financial management 
standards, or the applicant is considered a high risk based upon past 
performance or financial management findings. HUD will not disburse 
funds to any applicant that does not have a financial management system 
that meets federal standards.
    cc. Name Check Review. Applicants are subject to a name check 
review process. Name checks are intended to reveal matters that 
significantly reflect on the applicant's management and financial 
integrity, or if any key individual has been convicted or is presently 
facing criminal charges. If the name check reveals significant adverse 
findings that reflect on the business integrity or responsibility of 
the applicant or any key individual, HUD reserves the right to (1) deny 
funding or consider suspension or termination of an award immediately 
for cause, (2) require the removal of any key individual from 
association with management or implementation of the award, and (3) 
make appropriate provisions or revisions with respect to the method of 
payment or financial reporting requirements.
    dd. False Statements. A false statement in an application is 
grounds for denial or termination of an award and possible punishment 
as provided in 18 U.S.C. 1001.
    ee. Prohibition Against Lobbying Activities. Applicants are subject 
to the provisions of Section 319 of Public Law 101-121 (approved 
October 23, 1989) (31 U.S.C. 1352) (the Byrd Amendment), which 
prohibits recipients of federal contracts, grants, or loans from using 
appropriated funds for lobbying the executive or legislative branches 
of the federal government in connection with a specific contract, 
grant, or loan. In addition, applicants must disclose, using Standard 
Form LLL (SF-LLL), ``Disclosure of Lobbying Activities,'' any funds, 
other than federally appropriated funds, that will be or have been used 
to influence federal employees, members of Congress, or congressional 
staff regarding specific grants or contracts. Federally recognized 
Indian tribes and tribally designated housing entities (TDHEs) 
established by federally recognized Indian tribes as a result of the 
exercise of the tribe's sovereign power are excluded from coverage of 
the Byrd Amendment, but state-recognized Indian tribes and TDHEs 
established only under state law must comply with this requirement. 
Applicants must submit the SF-LLL if they have used or intend to use 
federal funds for lobbying activities.
    ff. Conducting Business in Accordance with Core Values and Ethical 
Standards. Applicants subject to 24 CFR parts 84 and 85 (most nonprofit 
organizations and state, local, and tribal governments or government 
agencies or instrumentalities that receive federal awards of financial 
assistance) are required to develop and maintain a written code of 
conduct (see 24 CFR 84.42 and 85.36(b)(3)). Consistent with regulations 
governing specific programs, your code of conduct must prohibit real 
and apparent conflicts of interest that may arise among officers, 
employees, or agents; prohibit the solicitation and acceptance of gifts 
or gratuities by your officers, employees, or agents for their personal 
benefit in excess of minimal value; and outline administrative and 
disciplinary actions available to remedy violations of such standards. 
Before entering into an agreement with HUD, applicants awarded 
assistance under a HUD program NOFA announced in FY2006 will be 
required to submit a copy of its code of conduct and describe the 
methods it will use to ensure that all officers, employees, and agents 
of its organization are aware of its code of conduct. Applicants are 
prohibited from receiving an award of funds from HUD if they fail to 
meet this requirement for a code of conduct. Applicants that

[[Page 26627]]

submitted an application during FY2004 or FY2005 and included a copy of 
their code of conduct will not be required to submit another copy if 
the applicant is listed on HUD's Web site at http://www.hud.gov/offices/adm/grants/codeofconduct/cconduct.cfm and if the information 
has not been revised. Applicants not listed on the HUD Web site must 
submit a copy of their code of conduct with their FY2006 application 
for assistance. Applicants must also include a copy of their code of 
conduct if the information listed on HUD's Web site has changed (e.g., 
the person who submitted the previous application is no longer your 
authorized organization representative, the organization has changed 
its legal name or merged with another organization, or the address of 
the organization has changed, etc.). Applicants that need to may submit 
their code of conduct to HUD via facsimile using the form HUD-96011, 
Facsimile Transmittal. When using the facsimile transmittal form, 
please type the requested information. Use HUD-96011 as the cover page 
to the submission and include in the top line of the form under ``Name 
of Document Being Requested,'' ``Code of Conduct for (insert 
organization name, city, and state),'' and fax the information to HUD's 
toll-free number at (800) HUD-1010. If you cannot access the 800 number 
or have problems, you may use (215) 825-8798 (this is not a toll-free 
number). When received HUD will update the information on its Code of 
Conduct Web site.
    gg. Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation.
    (1) HUD encourages nonprofit organizations, including grassroots 
faith-based and other community-based organizations, to participate in 
the vast array of programs for which funding is available through HUD's 
programs. HUD also encourages states, units of local government, 
universities, colleges, and other organizations to partner with 
grassroots organizations (e.g., civic organizations, faith communities, 
and grassroots faith-based and other community-based organizations) 
that have not been effectively utilized. These grassroots organizations 
have a strong history of providing vital community services, such as 
assisting the homeless and preventing homelessness, counseling 
individuals and families on fair housing rights, providing elderly 
housing opportunities, developing first-time homeownership programs, 
increasing homeownership and rental housing opportunities in 
neighborhoods of choice, developing affordable and accessible housing 
in neighborhoods across the country, creating economic development 
programs, and supporting the residents of public housing facilities. 
HUD seeks to make its programs more effective, efficient, and 
accessible by expanding opportunities for grassroots organizations to 
participate in developing solutions for their own neighborhoods. 
Additionally, HUD encourages applicants to include these grassroots 
faith-based and other community-based organizations in their work 
plans. Applicants, their partners, and participants must review the 
individual FY2006 HUD program announcements to determine whether they 
are eligible to apply for funding directly or whether they must 
establish a working relationship with an eligible applicant in order to 
participate in a HUD funding opportunity. Grassroots faith-based and 
other community-based organizations, and applicants that currently or 
propose to partner, fund, subgrant, or subcontract with grassroots 
organizations (including grassroots faith-based or other community-
based nonprofit organizations eligible under applicable program 
regulations) in conducting their work programs will receive higher 
rating points as specified in the individual FY2006 HUD program 
announcements.
    (2) Definitions of Grassroots Organizations.
    (a) HUD will consider an organization a ``grassroots organization'' 
if the organization is headquartered in the local community in which it 
provides services; and
    (i) Has a social services budget of $300,000 or less, or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.'' Local affiliates of national organizations are 
encouraged, however, to partner with grassroots organizations, but must 
demonstrate that they are currently working with a grassroots 
organization (e.g., having a grassroots faith-based or other community-
based organization provide volunteers).
    (c) The cap provided in paragraph (2)(a)(i) above includes only 
that portion of an organization's budget allocated to providing social 
services. It does not include other portions of the budget, such as 
salaries and expenses, not directly expended in the provision of social 
services.
    hh. Number of Units. The number of units that you plan to develop 
should reflect your need for replacement units, the need for other 
affordable units and the market demand for market units, along with 
financial feasibility. The number of planned new construction public 
housing units may not result in a net increase from the number of 
public housing units owned, assisted or operated by the public housing 
authority on October 1, 1999, including any public housing units 
demolished as part of any revitalization effort. The total number of 
units to be developed may be less than, or more than, the original 
number of public housing units in the targeted public housing project. 
HUD will review requests to revitalize projects with small numbers of 
units on an equal basis with those with large numbers of units.
    ii. Environmental Requirements.
    a. HUD Approval. HUD notification that you have been selected to 
receive a HOPE VI grant constitutes only preliminary approval. Grant 
funds may not be released under this NOFA (except for activities that 
are excluded from environmental review under 24 CFR part 58 or 50) 
until the responsible entity, as defined in 24 CFR 58.2(a)(7), 
completes an environmental review and you submit and obtain HUD 
approval of a request for release of funds and the responsible entity's 
environmental certification in accordance with 24 CFR part 58 (or HUD 
has completed an environmental review under 24 CFR part 50 where HUD 
has determined to do the environmental review).
    b. Responsibility. If you are selected for funding and an 
environmental review has not been conducted on the targeted site, the 
responsible entity must assume the environmental review 
responsibilities for projects being funded by HOPE VI. If you object to 
the responsible entity conducting the environmental review, on the 
basis of performance, timing, or compatibility of objectives, HUD will 
review the facts and determine who will perform the environmental 
review. At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing, or compatibility of objectives, or in accordance 
with 24 CFR 58.77(d)(1). If a responsible entity objects to performing 
an environmental review, or if HUD determines that the responsible 
entity should not perform the environmental review, HUD may designate 
another responsible entity to conduct the review or may itself conduct 
the environmental review in accordance with the provisions of 24 CFR 
part 50. You must provide any documentation to the responsible entity 
(or HUD, where applicable) that is needed to perform the environmental 
review.
    c. Phase I and Phase II Environmental Site Assessments. If you are 
selected for

[[Page 26628]]

funding, you must have a Phase I environmental site assessment 
completed in accordance with the ASTM Standards E 1527-00, as amended, 
for each affected site. A Phase I assessment is required whether the 
environmental review is completed under 24 CFR part 50 or 24 CFR part 
58. The results of the Phase I assessment must be included in the 
documents that must be provided to the responsible entity (or HUD) for 
the environmental review. If the Phase I assessment recognizes 
environmental concerns or if the results are inconclusive, a Phase II 
environmental site assessment will be required.
    d. Request for Release of Funds. You, and any participant in the 
development process, may not undertake any actions with respect to the 
project that are choice-limiting or could have environmentally adverse 
effects, including demolishing, acquiring, rehabilitating, converting, 
leasing, repairing, or constructing property proposed to be assisted 
under this NOFA, and you, and any participant in the development 
process, may not commit or expend HUD or local funds for these 
activities, until HUD has approved a Request for Release of Funds 
following a responsible entity's environmental review under 24 CFR part 
58, or until HUD has completed an environmental review and given 
approval for the action under 24 CFR part 50. In addition, you must 
carry out any mitigating/remedial measures required by the responsible 
entity (or HUD). If a remediation plan, where required, is not approved 
by HUD and a fully-funded contract with a qualified contractor licensed 
to perform the required type of remediation is not executed, HUD 
reserves the right to determine that the grant is in default.
    e. If the environmental review is completed before HUD approval of 
the HOPE VI Supplemental Submissions and you have submitted your 
Request for Release of Funds (RROF), the supplemental submissions 
approval letter shall state any conditions, modifications, 
prohibitions, etc. as a result of the environmental review, including 
the need for any further environmental review. You must carry out any 
mitigating/remedial measures required by HUD, or select an alternate 
eligible property, if permitted by HUD. If HUD does not approve the 
remediation plan and a fully funded contract with a qualified 
contractor licensed to perform the required type of remediation is not 
executed, HUD reserves the right to determine that the grant is in 
default.
    f. If the environmental review is not completed and you have not 
submitted the RROF before HUD approval of the supplemental submissions, 
the letter approving the supplemental submissions will instruct you and 
any participant in the revitalization process to refrain from 
undertaking, obligating, or expending HUD or non-HUD funds on physical 
activities or other choice-limiting actions until HUD approves your 
RROF and the related certification of the responsible entity (or HUD 
has completed the environmental review). The supplemental submissions 
approval letter also will advise you that the approved supplemental 
submissions may be modified on the basis of the results of the 
environmental review.
    g. There must not be any open issues or uncertainties related to 
environmental issues, public policy factors (such as sewer 
moratoriums), proper zoning, availability of all necessary utilities, 
or clouds on title that would preclude development in the requested 
locality. You will certify to these facts when signing the HOPE VI 
Revitalization Grant Application Certifications.
    h. HUD's environmental Web site is located at http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm.
    kk. Match Donations and Leverage Resources--Post Award. After 
award, during review of grantee mixed-finance, development or 
homeownership proposals, HUD will evaluate the nature of Match and 
Leverage resources to assess the conditions precedent to the 
availability of the funds to the grantee. HUD will assess the 
availability of the participating party(ies)'s financing, the amount 
and source of financing committed to the proposal by the participating 
party(ies), and the firm commitment of those funds. HUD may require an 
opinion of the PHA's and the owner entity's counsel (or other party 
designated by HUD) attesting that counsel has examined the availability 
of the participating party(ies)'s financing, and the amount and source 
of financing committed to the proposal by the participating party(ies), 
and has determined that such financing has been firmly committed by the 
participating party(ies) for use in carrying out the proposal, and that 
such commitment is in the amount required under the terms of the 
proposal.
    ll. Evidence of Use. Grantees will be required to show evidence 
that matching resources were actually received and used for their 
intended purposes through quarterly reports as the project proceeds. 
Sources of matching funds may be substituted after grant award, as long 
as the dollar requirement is met.
    mm. Grantee Enforcement. Grantees must pursue and enforce any 
commitment (including commitments for services) obtained from any 
public or private entity for any contribution or commitment to the 
project or surrounding area that was part of the match amount.
    nn. LOCCS Requirements. The grantee must record all obligations and 
expenditures in LOCCS.
    oo. Final Audit. Grantees are required to obtain a complete final 
closeout audit of the grant's financial statements by a certified 
public accountant (CPA), in accordance with generally accepted 
government audit standards. A written report of the audit must be 
forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    pp. Section 3. HOPE VI grantees must comply with Section 3 of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic 
Opportunities for Low- and Very Low-Income Persons in Connection with 
assisted Projects) and its implementing regulations at 24 CFR part 135. 
Information about Section 3 can be found at HUD's Section 3 Web site at 
http://www.hud.gov/fhe/sec3over.html.
    qq. General Section References. The following sub-sections of 
Section III.C. of the General Section are hereby incorporated by 
reference:
    (1) The Americans with Disabilities Act of 1990;
    (2) Affirmatively Furthering Fair Housing;
    (3) Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3);
    (4) Executive Order 13166, Improving Access to Services for Persons 
With Limited English Proficiency (LEP);
    (5) Accessible Technology;
    (6) Procurement of Recovered Materials;
    (7) Participation in HUD-Sponsored Program Evaluation;
    (8) Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects;
    (9) OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs; and
    (10) Drug-Free Workplace.
    rr. Program Requirements that Apply to Match. If the commitment 
document for any match funds/in-kind services is not included in the 
application and

[[Page 26629]]

provided before the NOFA submission date, the related match will not be 
considered. Depending upon the specific Memorandum of Understanding 
(MOU), the MOU alone may not firmly commit Match funds, e.g., the MOU 
states that a donation agreement may be discussed in the future. If the 
MOU does firmly commit funds, the MOU language that does so should be 
highlighted or mentioned in the application. To ensure inclusion of 
Match funds, MOUs should be accompanied by commitment letters or 
contracts.
    ss. Program Requirements that Apply to Match and Leverage.
    1. You must actively enlist other stakeholders who are vested in 
and can provide significant financial assistance to your revitalization 
effort, both for physical development and CSS.
    2. Types of Resources. HUD seeks to fund mixed-finance developments 
that use HOPE VI funds to leverage the maximum amount of other funds, 
particularly from private sources, that will result in revitalized 
public housing, other types of assisted and market-rate housing, and 
private retail and economic development. There are four types of 
resources: Development, CSS, Anticipatory, and Collateral. Development 
and CSS match and leverage are program requirements, the types of 
resources for which are discussed below. Anticipatory and Collateral 
leverage are included only in the Leverage rating factor.
    3. Development Resources.
    (1) Types of Development Resources. Types of Development Resources 
may include:
    (a) Private mortgage-secured loans and other debt.
    (i) Where there is both a construction loan and a permanent take-
out loan that will replace that construction loan, you must provide 
documentation of both, but only the value of the permanent loan will be 
counted.
    (ii) For privately financed homeownership construction loans, 
acceptable documentation of construction loans will be considered. 
Documentation of permanent financing is not required. (iii)If you have 
obtained a construction loan but not a permanent loan, the value of the 
acceptably documented construction loan will be counted.
    (iv) Your application must include each loan's expected term 
maturity and sources of repayment.
    (b) Insured loans.
    (c) Donations and contributions.
    (d) Housing trust funds.
    (e) Net sales proceeds from a homeownership project. Down payments 
from homebuyers will not be counted. Down payment assistance may be 
counted as a physical development resource if it is provided by a third 
party entity not related to the homebuyer.
    (f) Funds committed to build private sector housing in direct 
connection with the HOPE VI Revitalization plan.
    (g) Tax Increment Funding (TIF).
    (h) Tax Exempt Bonds. Your application must include a description 
of the use and term.
    (i) Other Public Housing Funds. Other public housing sources 
include HOPE VI Revitalization funds from other grants, HOPE VI 
Demolition funds, HOPE VI Neighborhood Networks funds, HOPE VI Main 
Street funds, Capital Fund program funds, and proposals to use 
operating subsidy for debt service. These HUD public housing funds will 
NOT be counted for points under CSS, Development and Collateral 
leverage in this NOFA. However, they can be used as part of your 
revitalization plan. Other public housing funds, except for HOPE VI 
Revitalization funds, will be counted toward your leverage rating for 
anticipatory leverage and may be used toward your match requirement.
    (j) Other Federal Funds. Other federal sources may include non-
public housing funds provided by HUD.
    (k) Sale of Land. The value of land may be included as a 
development resource only if this value is a sales proceed. Absent a 
sales transaction, the value of land may not be counted.
    (l) Donations of Land. Donations of land may be counted as a 
development resource, only if the donating entity owns the land to be 
donated. Donating entities may include a city, county/parish, church, 
community organization, etc. The application must include documentation 
of this ownership, signed by the appropriate authorizing official.
    (m) Low-Income Housing Tax Credits (LIHTC).
    (i) Low-Income Tax Credits are authorized by Section 42 of the IRS 
Code which allows investors to receive a credit against federal tax 
owed in return for providing funds to developers to help build or 
renovate housing that will be rented only to lower-income households 
for a minimum period of 15 years.
    (ii) There are two types of credits, both of which are available 
over a 10-year period: A nine percent credit on construction/rehab 
costs, and a four percent credit on acquisition costs and all 
development costs financed partially with below-market federal loans 
(e.g., tax exempt bonds). Tax credits are generally reserved annually 
through State Housing Finance Agencies, a directory of which can be 
found at http://www.ncsha.org/ncsha/public/statehfadirectory/index.htm.
    (iii) Only LIHTC commitments that have been secured as of the 
application submission date will be considered for the scoring under 
this NOFA. LIHTC commitments that are not secured (i.e., documentation 
in the application does not demonstrate they have been reserved by the 
state or local housing finance agency) will not be counted for scoring. 
Only tax credits that have been reserved specifically for 
revitalization performed through this NOFA will be counted.
    (iv) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form.
    (v) If you propose to include LIHTC equity as a development 
resource for any phase of development, your application must include a 
LIHTC reservation letter from your state or local housing finance 
agency in order to have the tax credit amounts counted as development 
leveraging. This letter must constitute a firm commitment and can only 
be conditioned on the receipt of the HOPE VI grant. HUD acknowledges 
that, depending on the housing finance agency, documentation for four 
percent tax credits may be represented in the form of a tax-exempt bond 
award letter. Accordingly, it will be accepted for match/leverage 
scoring purposes under Section V.A. of this NOFA, if you demonstrate 
that this is the only available evidence of four percent tax credits, 
and assuming that this documentation clearly indicates that tax-exempt 
bonds have been committed to the project.
    (2) Sources of Development Resources. Sources of Development 
Resources may include:
    (a) Public, private, and nonprofit entities, including LIHTC 
purchasers;
    (b) State and local housing finance agencies;
    (c) Local governments;
    (d) The city's housing and redevelopment agency or other comparable 
agency. HUD will consider this to be a separate entity with which you 
are partnering if your PHA is also a redevelopment agency or otherwise 
has citywide responsibilities.
    (i) You are strongly urged to seek a pledge of Community 
Development Block Grant (CDBG) funds for improvements to public 
infrastructure such as streets, water mains, etc. related to the 
revitalization effort. CDBG funds are awarded by HUD by formula to 
units of general local government and to

[[Page 26630]]

states, which may then award a grant or loan to a PHA, a partnership, a 
nonprofit organization, or other entity for revitalization activities, 
including loans to a project's for-profit partnership. More information 
about the CDBG Program can be found at http://www.hud.gov/offices/cpd/index.cfm.
    (ii) The city, county/parish, or state may provide HOME funds to be 
used in conjunction with HOPE VI funds. The Home Investment Partnership 
program provides housing funds that are distributed from HUD to units 
of general local governments and states. Funds may be used for new 
construction, rehabilitation, acquisition of standard housing, 
assistance to homebuyers, and tenant-based rental assistance. Current 
legislation allows HOME funds to be used in conjunction with HOPE VI 
funds, but they may not be used in conjunction with public housing 
capital funds under Section 9(d) of the 1937 Act. Information about the 
HOME program can be found at: http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.
    (e) Foundations;
    (f) Government Sponsored Enterprises such as the Federal Home Loan 
Bank, Fannie Mae, and Freddie Mac;
    (g) HUD and other federal agencies;
    (h) Financial institutions, banks, or insurers; and
    (i) Other private funders.
    4. Community and Supportive Services Resources.
    a. General.
    (1) HUD seeks to fund mixed-finance developments that use HOPE VI 
funds to leverage the maximum amount of other resources to support CSS 
activities in order to ensure the successful transformation of the 
lives of residents and the sustainability of the revitalized public 
housing development. Match and leveraging of HOPE VI CSS funds with 
other funds and services is critical to the sustainability of CSS 
activities so that they will continue after the HOPE VI funds have been 
expended. Commitments of funding or in-kind services related to the 
provision of CSS activities may be counted as CSS resources and toward 
match and the calculation of CSS leverage in accordance with the 
requirements below.
    (a) For CSS leverage (not match), include only funds/in-kind 
services that will be newly generated for HOPE VI activities. If an 
existing service provider significantly increases the level of services 
provided at the site, the increased amount of funds may be counted, 
except for TANF cash benefits. HUD will not count any funds for 
leverage points that have already been provided on a routine basis, 
such as TANF cash benefits and in-kind services that have been 
supporting ongoing CSS-type activities.
    (b) Existing and newly generated TANF cash benefits will not count 
as leverage. Newly generated non-cash services provided by TANF 
agencies will count as leverage.
    (c) Even though an in-kind CSS contribution may count as a 
resource, it may not be appropriate to include on the sources and uses 
attachment. Each source on the sources and uses attachment must be 
matched by a specific and appropriate use. For example, donations of 
staff time may not be used to offset costs for infrastructure.
    (d) Note that wages projected to be paid to residents through jobs, 
or projected benefits (e.g., health/insurance/retirement benefits) 
related to projected resources to be provided by CSS partners may not 
be counted.
    (e) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form.
    (f) The PHA's staff time is not an eligible cash or in-kind match.
    (2) Types of Community and Supportive Services Resources. Types of 
Community and Supportive Services resources may include but are not 
limited to:
    (a) Materials;
    (b) A building;
    (c) A lease on a building;
    (d) Other infrastructure;
    (e) Time and services contributed by volunteers;
    (f) Staff salaries and benefits;
    (g) Supplies;
    (h) The value of supportive services provided by a partner agency, 
in accordance with the eligible CSS activities described in Section 
I.D.
    (3) Sources of Community and Supportive Services Resources. In 
order to achieve quantifiable self-sufficiency results, you must form 
partnerships with organizations that are skilled in the delivery of 
services to residents of public housing and that can provide 
commitments of resources to support those services. You must actively 
enlist as partners other stakeholders who are vested in and can provide 
commitments of funds and in-kind services for the CSS portion of your 
revitalization effort. The following are the kinds of organizations and 
agencies that can provide you with resources necessary to carry out and 
sustain your CSS activities.
    (a) Local Boards of Education, public libraries, local community 
colleges, institutions of higher learning, nonprofit or for-profit 
educational institutions, and public/private mentoring programs that 
will lead to new or improved educational facilities and improved 
educational achievement of young people in the revitalized development, 
from birth through higher education.
    (b) TANF agencies/welfare departments for TANF and non-TANF in-kind 
services, and non-TANF cash donations, e.g., donation of TANF agency 
staff.
    (c) Job development organizations that link private sector or 
nonprofit employers with low-income prospective employees.
    (d) Workforce Development Agencies.
    (e) Organizations that provide residents with job readiness and 
retention training and support.
    (f) Economic development agencies such as the Small Business 
Administration, which provide entrepreneurial training and small 
business development centers.
    (g) National corporations, local businesses, and other large 
institutions such as hospitals that can commit to provide entry-level 
jobs. Employers may agree to train residents or commit to hire 
residents after they complete jobs preparedness or training programs 
that are provided by you, other partners, or the employer itself.
    (h) Programs that integrate employment training, education, and 
counseling, and where creative partnerships with local boards of 
education, state charter schools, TANF agencies, foundations, and 
private funding sources have been or could be established, such as:
    (i) Youthbuild. HUD's Youthbuild program provides grants to 
organizations that provide education and job training to young adults 
ages 16 to 24 who have dropped out of school. Participants spend half 
their time rehabilitating low-income housing and the other half in 
educational programs. Youthbuild provides a vehicle for achieving 
compliance with the objective of Section 3, as described in Section 
III.C. of the General Section. More information on HUD's Youthbuild 
program can be found at http://www.hud.gov/progdesc/youthb.cfm.
    (ii) Step-Up, an apprenticeship-based employment and training 
program that provides career potential for low-income persons by 
enabling them to work on construction projects that have certain 
prevailing wage requirements. Step-Up encourages work by offering 
apprenticeships through which low-income participants earn wages while

[[Page 26631]]

learning skills on the job, supplemented by classroom-related 
instruction. Step-Up can also contribute to a PHA's effort to meet the 
requirements of Section 3. More information can be found at http://www.hud.gov/progdesc/stepup.cfm.
    (i) Sources of capital such as foundations, banks, credit unions, 
and charitable, fraternal, and business organizations.
    (j) Nonprofit organizations such as the Girl Scouts and the Urban 
League, each of which has a Memorandum of Agreement (MOA) with HUD. 
Copies of these MOAs can be found on the Community and Supportive 
Services page of the HOPE VI Web site at http://www.hud.gov/hopevi.
    (k) Civil rights and fair housing organizations.
    (l) Local area agencies on aging.
    (m) Local agencies and organizations serving persons with 
disabilities.

IV. Application and Submission Information

    General. All applications MUST be submitted electronically via 
Grants.Gov, as described in this NOFA. This section hereby incorporates 
Section IV of the General Section, except for Section IV.A.5. and 
Section IV.B.1. The General Section requirements apply to this NOFA 
unless otherwise stated in this NOFA. Applicants MUST follow the 
electronic submission requirements in the General Section and this 
NOFA.

A. Addresses To Request Application Package

    This section describes how applicants may obtain application forms, 
additional information, and technical assistance. Copies of the 
published NOFA and application forms for HUD programs announced through 
NOFAs may be downloaded from the Grants.gov Web site at http://www.grants.gov/FIND and chosen from links provided under the topic 
``Search Grant Opportunities,'' which allows applicants to do a basic 
search or to browse by category or agency. Applicants having difficulty 
accessing the information may receive customer support from Grants.gov 
by calling its help line at (800) 518-GRANTS or sending an email to 
[email protected]. The customer service representatives will assist 
applicants in accessing the information. Applicants that do not have 
Internet access that need to obtain a copy of a NOFA 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.
    1. Application Kits. There are no application kits for HUD 
programs. All the information you need to apply will be in the NOFA and 
available at http://www.grants.gov/Apply. The NOFA and forms can be 
downloaded from http://www.grants.gov/Apply, by clicking on Apply Step 
1. Please pay attention to the submission requirements and format for 
submission specified in this NOFA to ensure that you have submitted all 
required elements of your application.
    2. Official NOFA Content Retrieval. In order to retrieve the 
instructions, applicants must go to the Grants.gov Web site entitled 
``Download Application Package'' at https://apply.grants.gov/forms_apps_idx.html. Insert the Catalog of Federal Domestic Assistance 
(CFDA) number or the Funding Competition ID, or the Funding Opportunity 
Number. Once this information has been inserted, click on the 
``Download Package'' button. The next page on the Web site, ``Selected 
Grant Application for Download,'' instructs applicants to download the 
application and its instructions by selecting the corresponding 
download link and saving the files to the applicant's computer for 
future reference and use. You do not need to be registered to read the 
instructions or complete the application once you have downloaded it 
and saved it on your computer.
    a. Instructions and Application Download Contents. The instructions 
download will contain several files. The Application Download will 
contain a cover page entitled ``Grant Application Package.'' The cover 
page provides information regarding the application package you have 
chosen to download, i.e., Opportunity Title, Agency Name, CFDA Number, 
etc., so that you can ensure that you have selected the correct 
application to prepare. The Grant Application cover page separates the 
required forms into two categories: ``Mandatory Documents'' and 
``Optional Documents.'' Please note that regardless of the box in which 
the forms are listed, the published Federal Register document is the 
official document HUD uses to solicit applications. Therefore, 
applicants should follow the submission requirements in this HOPE VI 
NOFA. This NOFA contains a list of forms and other documents that are 
part of the submission. The NOFA also identifies which forms may be 
applicable to only certain applicants and if so, they need to be 
submitted with the application.
    b. 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 http://www.grants.gov, the Federal Register 
publication prevails. Please be sure to review your application 
submission against the requirements in the Federal Register file of the 
NOFA. Any technical corrections to the NOFA will also be published in 
the Federal Register and posted to the grants.gov Web site, as 
described above. Applicants are responsible for monitoring the Web 
sites above and the Federal Register during the application preparation 
period.
    2. Technical Assistance. HUD staff will be available to provide you 
with general guidance and technical assistance about this NOFA. 
However, HUD staff is not permitted to help prepare your application. 
For technical support for downloading an application or submitting an 
application, please call Grants.gov Customer Support at (800) 518-
GRANTS (this is a toll-free number) or send an e-mail to 
[email protected].

B. Content and Form of Application Submission

    1. Application Submission.
    a. Paper Application Submissions. If your organization is granted a 
waiver to the electronic application submission requirement, you should 
follow the following instructions regarding paper application 
submissions. Unless otherwise indicated, the Executive Director of the 
applicant PHA, or his or her designee, must sign each form or 
certification that is required to be submitted with the application, 
whether part of an attachment or a standard certification. Signatures 
need not be original in the duplicate Headquarters copy and the 
duplicate field office copy.
    c. Paper Application Layout. If you are granted a waiver to the 
electronic submission requirement:
    (1) Double-space your narrative pages. Single-spaced pages will be 
counted as two pages;
    (2) Use 8\1/2\ x 11-inch paper, one side only. Only the city map 
may be submitted on an 8\1/2\ by 14-inch sheet of paper. Larger pages 
will be counted as two pages;
    (3) All margins should be approximately 1 inch. If any margin is 
smaller than \1/2\ inch the page will be counted as two pages;
    (4) Use 12-point, Times New Roman font;
    (5) Any pages marked as sub-pages (e.g., with numbers and letters 
such as 75A, 75B, 75C), will be treated as separate pages;
    (6) If a section is not applicable, omit it; do not insert a page 
marked n/a;
    (7) Mark each Exhibit and Attachment with the appropriate tab 
listed in

[[Page 26632]]

section IV.B. and in the Submission Instructions. No material on the 
tab will be considered for review purposes, although pictures are 
allowed;
    (8) No more than one page of text may be placed on one sheet of 
paper; i.e., you may not shrink pages to get two or more on a page. 
Shrunken pages, or pages where a minimized/reduced font are used, will 
be counted as multiple pages;
    (9) Do not format your narrative in columns. Pages with text in 
columns will be counted as two pages; and
    (10) The applications (copy and original) should each be packaged 
in a three-ring binder.
    d. Paper Application Page Count. If you are granted a waiver to the 
electronic submission requirement:
    (1) Narrative Exhibits.
    (a) The first part of your application will be comprised of 
narrative exhibits. Your narratives will respond to each rating factor 
in the NOFA and will also respond to threshold requirements. Among 
other things, your narratives must describe your overall planning 
activities, including but not limited to relocation, community, and 
supportive services, and development issues.
    (b) Each HOPE VI Revitalization application must contain no more 
than 100 pages of narrative exhibits. Any pages after the first 100 
pages of narrative exhibits will not be reviewed. Although submitting 
pages in excess of the page limitations will not disqualify an 
application, HUD will not consider the information on any excess pages, 
which may result in a lower score or failure of a threshold. Text 
submitted at the request of HUD to correct a technical deficiency will 
not be counted in the 100-page limit.
    (2) Attachments.
    (a) The second part of your application will be comprised of 
Attachments. These documents will also respond to the rating factors in 
the NOFA, as well as threshold and mandatory documentation 
requirements. They will include documents such as maps, photographs, 
letters of commitment, application data forms, various certifications 
unique to HOPE VI Revitalization, and other certifications.
    (b) Each HOPE VI Revitalization application must contain no more 
than 125 pages of attachments. Any pages after the first 125 pages of 
attachments will not be considered. Although submitting pages in excess 
of the page limit will not disqualify an application, HUD will not 
consider the information on any excess pages, which may result in a 
lower score or failure to meet a threshold.
    (3) Exceptions to page limits. The documents listed below 
constitute the only exceptions and are not counted in the page limits 
listed in Sections (1) and (2) above:
    (a) Additional pages submitted at the request of HUD in response to 
a technical deficiency.
    (b) Attachments that provide documentation of commitments from 
resource providers or CSS providers.
    (c) Attachments that provide documentation of site control and site 
acquisition in accordance with Section III. of this NOFA.
    (d) Narratives and Attachments, as relevant, required to be 
submitted only by existing HOPE VI Revitalization grantees in 
accordance with Sections V.A. of this NOFA (Capacity).
    (e) Information required of MTW applicants only.
    e. Electronic Format.
    (1) Exhibits. Exhibits are as listed in Section IV.B.2.a of this 
NOFA. Each Exhibit should be contained in a separate file and section 
of the application. Each file should contain one title page (do not 
create title pages separately from the document it goes with).
    (a) Exhibit Title Pages. HUD will use title pages as tabs when it 
downloads and prints the application. Provided the information on the 
title page is limited to the list in Section (b) below, the title pages 
will not be counted when HUD determines the length of each Exhibit, or 
the overall length of the Exhibits.
    (i) Each title page should only contain:
    (A) The name of the Exhibit, as described in Section IV.B.2.a. of 
this NOFA, e. g., ``Narrative Exhibit A: Summary Information'';
    (B) The name of the applicant; and
    (C) The name of the file that contains the Exhibit.
    (b) Exhibit File Names and Types.
    (i) All Exhibit files in the application must be contained in one 
Exhibit ZIP file.
    (ii) Each file within the ZIP file must be formatted so it can be 
read by MS Word 2000 (.DOC).
    (iii) Each file name must include the information below, in the 
order stated:
    (A) Short version of applicant's name, e. g., town, city, county/
parish, etc., and state; and
    (B) The word ``Exhibit'' and the Exhibit letter (A through I), as 
listed in Section IV.B.2.a. of this NOFA;
    (C) An example of an Exhibit file name is, ``Atlanta GA Exhibit 
A.''
    (2) Attachments. Attachments are as listed in Section IV.B.2.b. of 
this NOFA. Each Attachment should be contained in a separate file and 
section of the application. Each Attachment that is not a HUD Form 
should contain one title page.
    (a) Attachment Title Pages. HUD will use title pages as tabs if it 
downloads and prints the application. Provided the information on the 
title page is limited to the list in Section (b) below, the title pages 
will not be counted when HUD determines the length of each Attachment, 
or the overall length of the Attachments. HUD forms do not require 
title pages.
    (i) Each title page should only contain:
    (A) The name of the Attachment, as described in Section IV.B.2.b. 
of this NOFA, e. g., ``Attachment 10: Extraordinary Site Costs 
Certification'';
    (B) The name of the applicant; and
    (C) The name of the file that contains the Attachment.
    (b) Attachment File Names and Types.
    (i) All Attachments that are not listed separately on grants.gov 
and are formatted as PureEdge forms, e.g., SF-424, must be contained in 
one Attachment ZIP file.
    (ii) Each file within the ZIP file must be formatted so it can be 
read by MS Excel (.XLS) or Adobe Acrobat (.PDF).
    (A) Attachments that are downloaded from grants.gov in MS Excel 
format may be submitted in Excel format.
    (B) Attachments that are downloaded from grants.gov in text format, 
e.g., certifications, should be submitted in Adobe Acrobat (PDF) 
format.
    (C) Third-party documents, e.g., leverage commitment letters, 
pictures, etc., should be submitted in Adobe Acrobat (PDF) format.
    (iii) Each file name must include the information below, in the 
order stated:
    (A) Short version of applicant's name, e.g., town, city, county/
parish, etc., and state; and
    (B) The word ``Attachment'' and the Attachment number (1 through 
41), as listed in Section IV.B.2.b. of this NOFA;
    (C) An example of an Exhibit file name is, ``Atlanta GA Attachment 
1''
    (3) Maximum Length of Application.
    (i) Page Definition and Format.
    (A) For Exhibits, a ``page'' contains a maximum of 23 double-spaced 
lines. The length of each line must be a maximum of 6\1/2\ inches. This 
is the equivalent of formatting to be printed on 8\1/2\ x 
11 paper, with one inch top, bottom, left and right margins. 
The font must be 12-point Times New Roman. Each page must be numbered.
    (B) For Attachments, an applicant formatted text page is defined as 
in (A) above. Third-party documents converted into PDF format must not 
be shrunk to fit more than one original page on each application page. 
Pages of

[[Page 26633]]

HUD Forms and certification formats furnished by HUD are as numbered by 
HUD.
    (C) The maximum total length of the Exhibits and of the Attachments 
is as stated in Section IV.B.1.d. above.
    d. See Section IV of this NOFA on how to electronically submit 
third-party and large documents (i.e., documents 8\1/2\ by 14-inch, 
etc.).
    2. Application Content. The following is a list of narrative 
exhibits and attachments that are required as part of the application. 
Non-submission of these items may lower your rating score or make you 
ineligible for award under this NOFA. Review the threshold requirements 
in Section III.C. of this NOFA and to ascertain the effects of non-
submission. HUD forms required by this NOFA can be obtained on the 
Internet at Grants.gov. Applicants that are granted a waiver to the 
electronic submission requirement must include the narrative exhibits 
and attachments in the application in the order listed below.
    a. Narrative Exhibits.

(1) Acknowledgment of Application Receipt, form HUD-2993 (applies only 
if you are granted a waiver to the electronic submission requirement)
(2) Application for Federal Assistance, Standard Form SF-424
(3) HOPE VI Revitalization Application Table of Contents
(4) Narrative Exhibit A: Summary Information
(5) Narrative Exhibit B: Capacity
(6) Narrative Exhibit C: Need
(7) Narrative Exhibit D: Resident and Community Involvement
(8) Narrative Exhibit E: Community and Supportive Services
(9) Narrative Exhibit F: Relocation
(10) Narrative Exhibit G: Fair Housing and Equal Opportunity
(11) Narrative Exhibit H: Well-Functioning Communities
(12) Narrative Exhibit I: Soundness of Approach

    b. Attachments.

(1) Attachments 1 through 7: HOPE VI Application Data Form, form HUD-
52860-A
(2) Attachment 8: HOPE VI Budget, form HUD-52825-A
(3) Attachment 9: TDC-Grant Limitations Worksheet, form HUD-52799
(4) Attachment 10: Extraordinary Site Costs Certification, if 
applicable
(5) Attachment 11: City Map
(6) Attachment 12: Assurances for a HOPE VI Application: for Developer, 
HOPE VI Revitalization Resident Training & Public Meeting 
Certification, Relocation Plan (whether relocation is completed or is 
yet to be completed)
(7) Attachment 13: Program Schedule
(8) Attachment 14: Certification of Severe Physical Distress
(9) Attachment 15: Photographs of the Severely Distressed Housing
(10) Attachment 16: Neighborhood Conditions
(11) Attachment 17: Preliminary Market Assessment Letter, if relevant
(12) Attachment 18: Documentation of Site Control for Off-Site Public 
Housing
(13) Attachments 19 through 22: HOPE VI Revitalization Leverage 
Resources, form HUD-52797
(14) Attachment 23: Documentation of Environmental, & Neighborhood 
Standards
(15) Attachment 24: Land Use Certification or Documentation
(16) Attachment 25: Evaluation Commitment Letter(s)
(17) Attachment 26: Current Site Plan
(18) Attachment 27: Photographs of Architecture in the Surrounding 
Community
(19) Attachment 28: Conceptual Site Plan
(20) Attachment 29: Conceptual Building Elevations
(21) Attachment 30: HOPE VI Revitalization Application Certifications
(22) Attachment 31: HOPE VI Revitalization Project Readiness 
Certification, form HUD-52787
(23) Attachment 32: Standard Forms and Certifications
    a. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    b. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    c. Program Outcome Logic Model (HUD-96010);
    d. America's Affordable Communities Initiative (HUD-27300);
    e. If applicable, Funding Application for Housing Choice Voucher 
Assistance prepared in accordance with Notice PIH 2005-15 (and any 
reinstatement of or successor to that Notice), including, Section 8 
Tenant-Based Assistance Rental Certificate Program, Rental Voucher 
Program, form HUD-52515, and
    f. Facsimile Transmittal (HUD-96011).
    3. Match Documentation. See the match requirements in Section 
III.C., Program Requirements, Program Requirements that Apply to Match 
and Leverage.
    4. Resources Requirements for Match and Leverage. See Section 
III.C., Program Requirements, Program Requirements that Apply to Match 
and Leverage.
    5. Threshold Documentation. See the Threshold Requirements section 
of the NOFA in Section III.C. To meet threshold requirements, you must 
include specific documentation as required by this NOFA.
    6. Rating Factor Documentation. See the Rating Factors in Section 
V.A for information on documentation. To receive points for certain 
rating factors, you must include specific documentation as required by 
this NOFA.
    7. Housing Choice Voucher (HCV) Assistance. Housing choice voucher 
(HCV) assistance is available from the tenant protection voucher fund 
to successful applicants that receive the Revitalization grant awards. 
The dollar amount of HCV assistance is in addition to the $20 million 
maximum award amount and will be based upon resident relocation needs. 
Applicants must prepare their housing choice voucher assistance 
applications for the targeted project in accordance with the 
requirements of Notice PIH 2005-15 (and any reinstatement of or 
successor to that Notice) and submit it in its entirety with the HOPE 
VI Revitalization Application. HUD will process the housing choice 
voucher assistance applications for funded HOPE VI applicants. If you 
are not funded by this NOFA, the HCV application will not be processed. 
For applicants who are granted a waiver to the electronic application 
process, the HCV request should be located with the Standard Forms and 
Certifications at the back of the application.) The notice can be 
obtained through the Internet at http://www.hudclips.org/cgi/index.cgi.
    8. Further Documentation Guidance on Narrative Exhibits and 
Attachments. Please be sure to carefully review Sections III and V for 
program and documentation requirements for all the elements below.
    a. Exhibit A. Verify that you have included information relating to 
the following exhibits.
    (1) Executive Summary. Provide an Executive Summary, not to exceed 
three pages. Describe your Revitalization plan, as clearly and 
thoroughly as possible. Do not argue for the need for the HOPE VI 
grant, but explain what you would do if you received a grant. Briefly 
describe why the targeted project is severely distressed, provide the 
number of units, and indicate how many of the units are occupied. 
Describe specific plans for the revitalization of the site. Include 
income mix, basic features (such as restoration of streets), and any 
mixed use or non-housing components. If you are proposing off site 
replacement housing,

[[Page 26634]]

provide the number and type of units and describe the off site 
locations. Describe any homeownership components included in your Plan, 
including numbers of units. Briefly summarize your plans for community 
and supportive services. State the amount of HOPE VI funds you are 
requesting, and list the other major funding sources you will use for 
your mixed-finance development. Identify whether you have procured a 
developer or whether you will act as your own developer.
    (2) Physical Plan. Describe your planned physical revitalization 
activities:
    (a) Rehabilitation of severely distressed public housing units in 
accordance with Sections I(D) and III(C) of the NOFA;
    (b) Development of public housing replacement rental housing, both 
on-site and off-site in accordance with Sections I(D) and III(C) of the 
NOFA;
    (c) Indicate whether you plan to use PATH technologies and Energy 
Star in the construction of replacement housing in accordance with 
Section III(C) of the NOFA;
    (d) Market rate housing units (see Sections III(C);
    (e) Units to be financed with low-income housing tax credits;
    (f) Replacement homeownership assistance for displaced public 
housing residents or other public housing-eligible low-income families, 
in accordance with Sections I(D) and III(C) of the NOFA. Also describe 
any market-rate homeownership units planned, sources and uses of funds. 
Describe the relationship between the HOPE VI activities and costs and 
the development of homeownership units, both public housing and market 
rate. If you are selected for funding, you will be required to submit a 
Homeownership Proposal (homeownership term sheet);
    (g) Rehabilitation or new construction of community facilities 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the targeted development and 
residents of off-site replacement housing, in accordance with Sections 
I(D) and III(C). Describe the type and amount of such space and how the 
facilities will be used in CSS program delivery or other activities;
    (h) Zoning, land acquisition, and infrastructure and site 
improvements. Note that HOPE VI grant funds may not be used to pay hard 
development costs or to buy equipment for retail or commercial 
facilities;
    (3) Hazard Reduction. Review Sections I(D), III(C), and IV(E) of 
the NOFA. For units to be rehabilitated or demolished, describe the 
extent of any required abatement of environmentally hazardous materials 
such as asbestos.
    (4) Demolition. Review Sections I(D) and III(C) of the NOFA. 
Describe your plans for demolition, including the buildings (dwelling 
and non-dwelling units) proposed to be demolished, the purpose of the 
demolition, and the use of the site after demolition. If the proposed 
demolition was previously approved as a Section 18 demolition 
application, state the date the Section 18 demolition application was 
submitted to HUD and the date it was approved by HUD. Indicate whether 
you plan to implement the concept of Deconstruction, as described in 
Section III(C) of the NOFA.
    (5) Disposition. Review Sections I(D) and III(C) of the NOFA. 
Describe the extent of any planned disposition of any portion of the 
site. Cite the number of units or acreage to be disposed, the method of 
disposition (sale, lease, trade), and the status of any disposition 
application made to HUD.
    (6) Site Improvements. Review Sections I(D), III(C), and IV(E) of 
the NOFA. Describe any proposed on-site improvements, including 
infrastructure requirements, changes in streets, etc. Describe all 
public improvements needed to ensure the viability of the proposed 
project with a narrative description of the sources of funds available 
to carry out such improvements.
    (7) Site Conditions. Review Sections I(D), III(C), and IV(E) of the 
NOFA. Describe the conditions of the site to be used for replacement 
housing. Listing all potential contamination or danger sources (e.g. 
smells, fire, heat, explosion and noise) that might be hazardous or 
cause discomfort to residents, PHA personnel, or construction workers. 
List potential danger sources, including commercial and industrial 
facilities, Brownfields and other sites with potentially contaminated 
soil, commercial airports and military airfields. Note any facilities 
and/or activities within one mile of the proposed site.
    (8) Separability. Section III(C) of the NOFA. If applicable, 
address the separability of the revitalized building(s) within the 
targeted project. This is a threshold.
    (9) Proximity. If applicable, describe how two contiguous projects 
meet the requirement of Section III(C) of the NOFA, or how scattered 
sites meet the requirements of Section III(C) of the NOFA,
    b. Exhibit B. Capacity. Verify that you have included information 
relating to the following exhibits:
    (1) PHAS, Maintenance, and SEMAP. Respond to the Rating Factors at 
V(A)(1)(g), V(A)(1)(h), and V(A)(1)(i) of the NOFA.
    (2) Development Capacity of Developer. Respond to Rating Factor 
V(A)(1)(a).
    (3) Development Capacity of Applicant. Respond to Rating Factor 
V(A)(1)(b).
    (4) Capacity of Existing HOPE VI Revitalization grantees. Respond 
to Rating FactorV(A)(1)(c) of the NOFA. This rating factor applies only 
to PHAs with existing HOPE VI Revitalization grants from fiscal years 
1993-2003. Production achievement numbers will be taken from the HOPE 
VI Quarterly Progress Reports for the quarter ending March 31, 2006.
    (5) CSS Program Capacity. Respond to Rating Factor V(A)(1)(d) of 
the NOFA.
    (6) Property Management Capacity. Respond to Rating Factor 
V(A)(1)(e) of the NOFA.
    (7) PHA or MTW Plan. Respond to Rating Factor V(A)(1)(f) of the 
NOFA.
    c. Exhibit C. Need. Verify that you have included information 
relating to the following:
    (1) Need for Revitalization: Severe Physical Distress of the Public 
Housing Site. Respond to Rating Factor V(A)(2)(a) of the NOFA.
    (2) Need for Revitalization: Impact of the Severely Distressed Site 
on the Surrounding Neighborhood. Respond to Rating Factor V(A)(2)(b) of 
the NOFA.
    (3) Need for HOPE VI Funding (Obligation of Capital Funds). Respond 
to Rating Factor V(A)(2)(c) of the NOFA.
    (4) Previously-Funded Sites. Respond to Section III(C)(2) of the 
NOFA. This is a threshold requirement.
    (5) Need for Affordable, Accessible Housing in the Community. 
Respond to Rating Factor V(A)(2)(d) of the NOFA.
    d. Exhibit D. Resident and Community Involvement. Verify that you 
have included information relating to the following. Discuss your 
communications about your development plan and HUD communications with 
residents, community members, and other interested parties. Include the 
resident training attachment. Review program requirements in Section 
III and respond to Rating Factor V(A)(4).
    e. Exhibit E. Community and Supportive Services. Respond to Section 
V(A)(5). Verify that you have included information relating to the 
following. Endowment Trust. If you plan to place CSS funds in an 
Endowment Trust, review Section III(C) and Section V(A)(5), and state 
the dollar amount and percentage of the entire grant that you plan to 
place in the Trust.

[[Page 26635]]

    f. Exhibit F. Relocation. Verify that you have included information 
relating to the following:
    (1) Housing Choice Voucher Needs. Review Section III(C) and V(A)(6) 
of the NOFA. State the number of Housing Choice Vouchers that will be 
required for relocation if this HOPE VI application is approved, both 
in total and the number needed for FY 2006. Indicate the number of 
units and the bedroom breakout. Applicants must prepare their housing 
choice voucher assistance applications for the targeted project in 
accordance with the requirements of Notice PIH 2005-15 (and any 
reinstatement of or successor to that Notice) and submit it in its 
entirety with the HOPE VI Revitalization Application (not just HUD form 
52515). This application should be placed at the back of the 
application with the other Standard Forms and Certifications. HUD will 
process the housing choice voucher assistance applications for funded 
HOPE VI applicants.
    (2) Relocation Plan. Review Sections III(C)(2) and III(C)(3) of the 
NOFA and respond to Rating Factor V(A)(6). For additional guidance on 
developing a relocation plan, refer to CPD Notice 04-02 (``Guidance on 
the Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as amended, in HOPE VI 
Projects'') or any successor notice.
    g. Exhibit G. Fair Housing and Equal Opportunity. Verify that you 
have included information relating to the following:
    (1) Accessibility. Respond to Rating Factor V(A)(7)(a)(1).
    (2) Universal Design. Respond to Rating Factor V(A)(7)(a)(2).
    (3) Fair Housing. Respond to Rating Factor V(A)(7)(b).
    (4) Section 3. Respond to Rating Factor V(A)(7)(c).
    h. Exhibit H. Verify that you have included information relating to 
the following:
    (1) Unit Mix and Need for Affordable Housing. Respond to Rating 
Factor V(A)(8)(a);
    (2) Off-Site Housing. Respond to Rating Factor V(A)(8)(b); and
    (3) Homeownership Housing. Respond to Rating Factor V(A)(8)(c).
    i. Exhibit I. Verify that you have included information relating to 
the following:
    (1) Appropriateness of Proposal. Respond to the threshold 
requirement in Section III(C)(2).
    (2) Appropriateness and Feasibility of the Plan. Respond to Rating 
Factor V(A)(9)(b);
    (3) Neighborhood Impact and Sustainability of the Plan. Respond to 
Rating Factor V(A)(9)(c);
    (4) Project Readiness. Respond to Rating Factor V(A)(9)(d) by 
completing the certification form provided;
    (5) Program Schedule. Respond to Rating Factor V(A)(9)(e);
    (6) Design. Describe the features of your proposed design and 
respond to Rating Factor V(A)(9)(f);
    (7) Energy Star. Respond to Rating Factor V(A)(9)(g); and
    (8) Evaluation. Respond to Rating Factor V(A)(9)(h).
    j. Attachments 1 through 7. These attachments are required in all 
applications. See the instructions for filling out the HOPE VI 
Application Data Forms, Appendix 1, at the end of this NOFA.
    k. Attachment 8. This attachment is required in all applications. 
In addition to the instructions included in the HOPE VI Budget form, 
general guidance on preparing a HOPE VI budget can be found on the 
Grant Administration page of the HOPE VI Web site, http://www.hud.gov/offices/pih/programs/ph/hope6/.
    l. Attachment 9. Form HUD-52799, ``TDC/Grant Limitations 
Worksheet''. This attachment is required in all applications. The Excel 
workbook will assist you in determining your TDC limits required in 
Section IV.E..
    m. Attachment 10. Extraordinary Site Costs Certification. This 
attachment is applicable only if you request funds to pay for 
extraordinary site costs, outside the TDC limits. See section IV.E.
    n. Attachment 11. City Map. This attachment is required in all 
applications. Review Section III(C). Provide a to-scale city map that 
clearly identifies the following in the context of existing city 
streets, the central business district, other key city sites, and 
census tracts:
    (a) The existing development;
    (b) Replacement neighborhoods, if available;
    (c) Off-site properties to be acquired, if any;
    (d) The location of the Federally-designated Empowerment Zone or 
Enterprise Community (if applicable); and
    (e) Other useful information to place the project in the context of 
the city, county, or municipality and other revitalization activity 
underway or planned.
    (2) If you request funds for more than one project or for scattered 
site housing, the map must clearly show that the application meets the 
NOFA's site and unit requirements. If you have received a waiver to the 
electronic submission requirement, this map may be submitted on 8\1/
2\ by 14 paper.
    o. Attachment 12. Assurances for a HOPE VI Application: for 
Developer, HOPE VI Revitalization Resident Training & Public Meeting 
Certification, Relocation Plan (whether relocation is completed or is 
yet to be completed). Please complete this assurance document. Do not 
sign; a signature is not required.
    q. Attachment 13. Program Schedule. Review Rating Factor V.A.9.e.
    r. Attachment 14. Certification of Severe Physical Distress. This 
attachment is required in all applications. In accordance with Sections 
I(C) and III(C)(2) and (3), an engineer or architect must complete 
Attachment 16. No backup documentation is required for this 
certification. No backup documentation is required for this 
certification.
    s. Attachment 15. Photographs of the Severely Distressed Housing. 
This attachment is required in all applications. Review Rating Factor 
V(A)(2)(a). Submit photographs of the targeted severely distressed 
public housing that illustrate the extent of physical distress.
    t. Attachment 16. Neighborhood Conditions. This attachment is 
required in all applications. Submit documentation described in Rating 
Factor V(A)(2)(b). Documentation may include crime statistics, 
photographs or renderings, socio-economic data, trends in property 
values, evidence of property deterioration and abandonment, evidence of 
underutilization of surrounding properties, and other indications of 
neighborhood distress and/or disinvestment.
    u. Attachment 17. Preliminary Market Assessment Letter, if 
relevant. This is applicable if you include market rate housing in your 
application, in accordance with Section V, Soundess of Approach.
    v. Attachment 18. Documentation of Site Control for Off-Site Public 
Housing. This is applicable if your plan includes off-site housing or 
other development. If applicable, provide evidence of site control for 
rental replacement units or land, in accordance with Section III(C)(2). 
See Section IV(B) for documentation requirements.
    w. Attachments 19 through 22. HOPE VI Revitalization Leverage 
Resources, form HUD-52797. These attachments are included in form HUD 
52797, ``HOPE VI Revitalization Leverage Resources.'' and are required 
in all applications.
    (1) Physical Development Resources. In accordance with Rating 
Factor V(A)(3)(b), complete this Attachment

[[Page 26636]]

19, as provided in this application, by entering the dollar value of 
each resource that will be used for physical development. For each 
resource entered, you must submit backup documentation in Attachment 
19. See Section III.C, Program Requirements, Program Requirements for 
Match and Leverage for resource and documentation requirements.
    (2) CSS Resources. In accordance with Rating Factor V(A)(3)(c), 
complete this Attachment 20, as provided in this Application, by 
entering the dollar value of all resources that will be used for CSS 
activities. For each resource entered, submit backup documentation in 
Attachment 20. See Section III.C, Program Requirements, Program 
Requirements for Match and Leverage for resource and documentation 
requirements.
    (3) Anticipatory Resources. Complete Attachment 21, as provided in 
this Application, by entering the dollar value of all anticipatory 
resources as described in Rating Factor V(A)(3)(d). For each resource 
entered, submit backup documentation in Attachment 21. See Section 
III.C, Program Requirements, Program Requirements for Match and 
Leverage for resource and documentation requirements.
    (4) Collateral Resources. Complete Attachment 22, as provided in 
this Application, by entering the dollar value of all collateral 
resources as described in Rating Factor V(A)(3)(e). For each resource 
entered, submit backup documentation behind Attachment 22. See Section 
III.C, Program Requirements, Program Requirements for Match and 
Leverage for resource and documentation requirements.
    x. Attachment 23. Documentation of Environmental, & Neighborhood 
Standards. This is applicable if your plan includes off-site housing or 
other off-site development. Provide a certification that the site(s) 
acquired for off-site public housing meet environmental and site and 
neighborhood standards, as provided in Section V(A)(8)(b)(2). This 
certification may be in the form of a letter.
    y. Attachment 24. Land Use Certification or Documentation. Complete 
this certification in accordance with the land use threshold in Section 
III(C)(2). This attachment may be a certification or copies of the 
actual land use documentation. The certification may be in the form of 
a letter.
    z. Attachment 25. Evaluation Commitment Letter(s). This attachment 
is required in all applications. Review Section V(A)(9)(h) and provide 
the requested commitment letter(s) that addresses the indicated 
evaluation areas.
    aa. Attachment 26. Current Site Plan. This attachment is required 
in all applications. The Site Plan shows the targeted public housing 
site's various buildings and identifies which buildings are to be 
rehabilitated, demolished, or disposed of. Demolished buildings should 
be shown and labeled as such.
    bb. Attachment 27. Photographs of Architecture in the Surrounding 
Community. Photographs of Architecture in the Surrounding Community. 
This attachment is required in all applications. Provide photographs to 
demonstrate that your plan conforms to the Design requirements of 
Section III.C.3. and Rating Factor V(A)(9)(f).
    cc. Attachment 28. Conceptual Site Plan. This attachment is 
required in all applications. The Conceptual Site Plan indicates where 
your plan's proposed construction and rehabilitation activities will 
take place and any planned acquisition of adjacent property and/or 
buildings. Review the design requirements of Section III.C.3. and 
Rating Factor V(A)(9)(f).
    dd. Attachment 29. Conceptual Building Elevations. This attachment 
is required in all applications. Review the design requirements of 
Section III.C.3. and Rating Factor V(A)(9)(f). Include building 
elevation drawings for the various types of your proposed housing.
    ee. Attachment 30. HOPE VI Revitalization Application 
Certifications. This attachment is required in all applications. This 
form is available from Grants.gov. Note that these certifications (4 
page document) must be signed by the Chairman of the Board of the PHA, 
NOT the Executive Director.
    ff. Attachment 31. HOPE VI Revitalization Project Readiness 
Certification, form HUD-52787. This attachment is required in all 
applications. Complete Attachment 31 by indicating which of the items 
in Rating Factor V(A)(9)(d) of the NOFA have been completed.
    gg. Attachment 32. Standard Forms and Certifications
    a. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    b. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    c. Program Outcome Logic Model (HUD-96010);
    d. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    e. If applicable, Funding Application for Housing Choice Voucher 
Assistance prepared in accordance with Notice PIH 2005-15 (and any 
reinstatement of or successor to that Notice), including, Section 8 
Tenant-Based Assistance Rental Certificate Program, Rental Voucher 
Program, form HUD-52515. It is applicable only if you are requesting 
Housing Choice Vouchers that are related to your proposed plan. In 
preparing the request for vouchers, applicants must follow PIH Notice 
2005-15 and any successor notices; and
    f. Facsimile Transmittal (HUD-96011).

C. Deadline Dates and Times

    Applications submitted through 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, July 10, 2006. Important Submission Tip: 
Please be aware that when submitting an application via Grants.gov, you 
will first receive a confirmation notice that Grants.gov received the 
application. The application will then go through a validation process. 
If the validation process finds problems with the application, it will 
be rejected and unavailable for retrieval by HUD. The validation check 
ensures that:
    1. The application is virus free;
    2. The application meets the deadline requirements established for 
the funding opportunity;
    3. The DUNS number submitted on the application matches the DUNS 
number in the registration, and that the Authorized Organization 
Representative has been authorized to submit the application for 
funding by the organization identified by its DUNS number; and
    4. All the mandatory fields and forms were completed on the 
application.
    5. Upload the application using Internet Explorer or Netscape 
browsers.
    If the application fails any of these items on the validation 
check, the application will be rejected. The validation check occurs 24 
to 48 hours after the application submission. Therefore, HUD recommends 
that all applicants submit their application no later than 48 to 72 
hours before the deadline. That way, if the application fails the 
validation process, the applicant will receive an email notification 
providing the error messages. By submitting 48 to 72 hours in advance 
of the deadline, applicants have time to cure deficiencies in their 
application and resubmit it in time to meet deadline requirements.
    6. Submission Date, Address, Delivery Requirements and Acceptance 
for Applicants that have Received Waivers that Allow Submission of a 
Paper Copy Application. The following applies ONLY if you are granted a 
waiver to the

[[Page 26637]]

electronic application submission requirements.
    a. Method of Delivery. Applicants granted a wavier to the 
electronic submission requirement must use the United States Postal 
Service (USPS) or overnight mail service (which provide written receipt 
of delivery date) to submit their applications to HUD. Hand-carried and 
courier delivered applications will not be accepted.
    b. Submission Date and Time. Applications must be received by 4 pm 
on July 10, 2006. Applications will be considered late and ineligible 
to receive funding if not received on or before the application 
submission date and time, regardless of the postmark date.
    c. Address for Submitting Applications. Send the original and one 
copy of your completed application to Ms. Dominique Blom, Acting Deputy 
Assistant Secretary for Public Housing Investments, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4130, 
Washington, DC 20410-5000. Please make sure that you note the room 
number. The correct room number is very important in ensuring that your 
application is properly accepted and not misdirected.
    d. Form of Acceptance. HUD will consider an application as being 
accepted when it is delivered to the Office of Public Housing 
Investments, Room 4130, HUD Headquarters, 451 Seventh Street, SW., 
Washington, DC 20410-5000. Upon delivery and acceptance, the Grant 
Administrator will manually add the application's PHA name, development 
name, time of receipt, and date of receipt to an application receipt 
log.
    e. Wrong Address. Applications mailed to the wrong location or 
office designated for receipt of the application, which result in the 
designated office not receiving the application in accordance with the 
requirements for timely submission, will result in the application 
being considered late. Late applications will not receive funding 
consideration. HUD will not be responsible for directing packages to 
the appropriate office(s).
    f. Field Office Copy. You must send one duplicate copy of your 
application to your HUD field office. The HUD field office copy of the 
application is due before 4 p.m. on the application submission date. If 
the HUD field office receives an application on time, but the 
application is not received on time at Headquarters, it will not be 
considered.
    g. No Facsimiles or Videos. With the exception of third party 
documents submitted via electronic facsimile (See Section IV.F. of the 
General Section), HUD will not accept for review and evaluation, or 
fund, any applications sent by facsimile (fax). However, facsimile 
corrections to technical deficiencies will be accepted, as described in 
Section V.B. of this NOFA. Also, videos submitted as part of an 
application will not be viewed.
    h. Proof of timely submission. Proof of timely submission for all 
applications, regardless of whether they are delivered through USPS or 
overnight mail services shall be the date and time recorded by the 
Grant Administrator in the application receipt log.
    i. Acknowledgment of Application Receipt. If you wish to receive 
acknowledgment of HUD's receipt of the application, the Acknowledgment 
of Application Receipt, form HUD-2993, should be included in the front 
of the application. After receipt, HUD will return the form to you.

D. Intergovernmental Review

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' was issued to foster intergovernmental partnership and 
strengthen federalism by relying on state and local processes for the 
coordination and review of federal financial assistance and direct 
federal development. HUD implementing regulations are published at 24 
CFR part 52. The order allows each state to designate an entity to 
perform a state review function. Applicants can find the official 
listing of State Points of Contact (SPOC) for this review process at & 
http://www.whitehouse.gov/omb/grants/spoc.html. States not listed on 
the Web site have chosen not to participate in the intergovernmental 
review process and, therefore, do not have a SPOC. If your state has a 
SPOC, you should contact the SPOC to see if it is interested in 
reviewing your application before submission to HUD. Please make sure 
that you allow ample time for this review when developing and 
submitting your applications. If your state does not have a SPOC, you 
can submit your application directly to HUD using Grants.gov.

E. Funding Restrictions

1. Statutory Time Limits
    a. Required Obligation Date. Funds appropriated for the HOPE VI 
program for FY2006 must be obligated on or before September 30, 2007. 
Any funds that are not obligated by that date will be recaptured by the 
Treasury, and thereafter will not be available for obligation for any 
purpose.
    b. Required Expenditure Date. In accordance with 31 U.S.C. 1552, 
all FY 2006 HOPE VI funds must be expended by September 30, 2012. Any 
funds that are not expended by that date will be placed in an expired 
account, and will be available only for the purposes of liquidating 
obligations properly chargeable to that account prior to its expiration 
and of making legitimate obligation adjustments.
    3. Grant Amount Limitations.
    a. Requested Amount. See Section II of this NOFA for details.
    4. Ineligible Activities.
    a. You may not use HOPE VI Revitalization grant funds to pay for 
any revitalization activities carried out on or before the date of the 
letter announcing the award of the HOPE VI Grant.
    b. Market-Rate Units. HOPE VI funds may not be used to develop 
market-rate units or affordable housing units that do not qualify as 
public housing or homeownership replacement units.
    c. Retail or Commercial Development. HOPE VI funds may not be used 
for hard construction costs related to, or for the purchase of 
equipment for, retail, commercial, or non-public housing office 
facilities.
    5. Total Development Cost (TDC).
    a. The ``TDC Limit'' (24 CFR 941.306, Notice PIH 2005-26 (HA), or 
extending Notice) refers to the maximum amount of HUD funding that HUD 
will approve for development of specific public housing units in a 
given location. The TDC limit applies only to the costs of development 
of public housing that are paid directly with HUD public housing funds, 
including HOPE VI funds; a PHA may exceed the TDC limit using non-
public housing funds such as CDBG, HOME, low-income housing tax credit 
equity, etc.
    b. The HUD TDC Cost Tables are issued for each calendar year for 
the building type and bedroom distribution for the public housing 
replacement units. Use the TDC limits in effect at the time this HOPE 
VI NOFA is published when making your TDC calculations. TDC definitions 
and limits in the final rule are summarized as follows:
    (1) The total cost of development, which includes relocation costs, 
is limited to the sum of:
    (a) Up to 100 percent of HUD's published TDC limits for the costs 
of demolition and new construction, multiplied by the number of HOPE VI 
public housing replacement units; and
    (b) Ninety percent of the TDC limits, multiplied by the number of 
public housing units after substantial rehabilitation and 
reconfiguration.
    (2) The TDC limit for a project is made up of the following 
components:
    (a) Housing Cost Cap (HCC): HUD's published limit on the use of 
public housing funds for the cost of

[[Page 26638]]

constructing the public housing units, which includes unit hard costs, 
builder's overhead and profit, utilities from the street, finish 
landscaping, and a hard cost contingency. Estimates should take into 
consideration the Davis-Bacon wage rate and other requirements as 
described in ``Labor Standards'', Section III.C. of this NOFA.
    (b) Community Renewal (CR): The balance of funds remaining within 
the project's TDC limit after the housing construction costs described 
in (a) above are subtracted from the TDC limit. This is the amount of 
public housing funds available to pay for PHA administration, planning, 
infrastructure and other site improvements, community and economic 
development facilities, acquisition, relocation, demolition, and 
remediation of units to be replaced on site, and all other development 
costs.
    (3) CSS. You may request an amount not to exceed 15 percent of the 
total HOPE VI grant to pay the costs of CSS activities, as described in 
Section III.C. of this NOFA. These costs are in addition to, i.e., 
excluded from, the TDC calculation above.
    (4) Demolition and Site Remediation Costs of Unreplaced On-site 
Units. You may request an amount necessary for demolition and site 
remediation costs of units that will not be replaced on-site. This cost 
is in addition to (i.e., excluded from) the TDC calculation above.
    (5) Extraordinary Site Costs.
    (a) You may request a reasonable amount to pay extraordinary site 
costs, which are construction costs related to unusual pre-existing 
site conditions that are incurred, or anticipated to be incurred. If 
such costs are significantly greater than those typically required for 
similar construction, are verified by an independent, certified 
engineer or architect (See Section IV.B. for documentation 
requirements.), and are approved by HUD, they may be excluded from the 
TDC calculation above. Extraordinary site costs may be incurred in the 
remediation and demolition of existing property, as well as in the 
development of new and rehabilitated units. Examples of such costs 
include, but are not limited to: abatement of extraordinary 
environmental site hazards; removal or replacement of extensive 
underground utility systems; extensive rock and soil removal and 
replacement; removal of hazardous underground tanks; work to address 
unusual site conditions such as slopes, terraces, water catchments, 
lakes, etc.; and work to address flood plain and other environmental 
remediation issues. Costs to abate asbestos and lead-based paint from 
structures are normal demolition costs. Extraordinary measures to 
remove lead-based paint that has leached into the soil would constitute 
an extraordinary site cost.
    (b) Extraordinary site costs must be justified and verified by a 
licensed engineer or architect who is not an employee of the housing 
authority or the city. The engineer or architect must provide his or 
her license number and state of registration. If this certification is 
not included in the application after the cure period described in 
Section IV.B.4. of the General Section, extraordinary site costs will 
not be allowed in the award amount. In this case, the amount of the 
extraordinary site costs included in the application will be subtracted 
from the grant amount.
    6. Cost Control Standards.
    a. Your projected hard development costs must be realistic, 
developed through the use of technically competent methodologies, 
including cost estimating services, and comparable to industry 
standards for the kind of construction to be performed in the proposed 
geographic area.
    b. Your cost estimates must represent an economically viable 
preliminary plan for designing, planning, and carrying out your 
proposed activities in accordance with local costs of labor, materials, 
and services.
    c. Your projected soft costs must be reasonable and comparable to 
industry standards. Upon award, soft costs will be subject to HUD's 
``Safe Harbor'' cost control standards. For rental units, these safe 
harbors provide specific limitations on such costs as developer's fees 
(between 9 and 12 percent), PHA administration/consultant cost (no more 
than 3 to 6 percent of the total project budget), contractor's fee (6 
percent), overhead (2 percent), and general conditions (6 percent). 
HUD's Cost Control and Safe Harbor Standards can be found on HUD's HOPE 
VI Web site.
    d. If you are eligible for funding, HUD will delete any unallowable 
items from your budget and may reduce your grant accordingly.
    7. Withdrawal of Grant Amounts. In accordance with Section 24(i) of 
the 1937 Act, if a grantee does not proceed within a reasonable 
timeframe, as described in Section VI.B.2. of this NOFA, HUD shall 
withdraw any unobligated grant amounts. HUD shall redistribute any 
withdrawn amounts to one or more other applicants eligible for HOPE VI 
assistance or to one or more other entities capable of proceeding 
expeditiously in the same locality in carrying out the Revitalization 
plan of the original grantee.

F. Other Submission Requirements

    Application Submission and Receipt Procedures. This section 
provides the application submission and receipt instructions for HUD 
program applications. Please read the following instructions carefully 
and completely, as failure to comply with these procedures may 
disqualify your application.
    1. Electronic Submission of Applications. Applicants must submit 
their applications electronically through Grants.gov. HUD described the 
Grants.gov registration process in its Early Grants.gov Registration 
notice published in the Federal Register on December 9, 2005 (70 FR 
73332), and in other information available at http://www.grants.gov/GetStarted. The site provides registration checklists that applicants 
are advised to use, to ensure that they have all the information they 
need to complete all the steps in the registration process. Past 
applicants have found that the checklists made their registration 
easier and faster.
    There are five sequential steps required for an applicant to 
complete the Grants.gov registration process:
    a. Step one is to call Dun and Bradstreet and request a Dun and 
Bradstreet Universal Data Numbering System (DUNS) number for the 
organization (if it does not already have one), as described above. The 
DUNS number is used by the federal government to identify the 
organization. Organizations should be able to obtain a DUNS number on 
the same date they contact Dun and Bradstreet by phone (866) 705-5711 
(this is a toll-free number).
    b. Step two is to register with the Central Contractor Registry 
(CCR) either toll-free by telephone ((888) 227-2423) or by going online 
at http://www.ccr.gov. When an organization registers with the CCR, the 
organization will be required to designate an E-Business Point of 
Contact (E-Business POC). The E-Business POC will designate a special 
password called an ``M-PIN.'' The password gives the E-Business POC 
sole authority to designate which staff member(s) from the organization 
will be allowed to submit applications electronically on its behalf. 
Staff members that are designated by the organization's E-Business POC 
to submit applications on its behalf are called Authorized Organization 
Representatives (AORs). Registering with the CCR is required for an 
organization to be able to use Grants.gov. It takes 1 to 3 days to 
complete this process because security

[[Page 26639]]

information has to be sent to the organization.
    Note that CCR registration expires on an annual basis and, 
therefore, it must be updated to remain active. The CCR will send the 
E-Business POC an email message 30 days before the expiration date of 
their current registration. If the E-Business POC does not update the 
CCR registration by the expiration date, the CCR will send the 
organization a letter notifying it that its account has been 
deactivated.
    c. Step three requires that AORs from the organization register 
with the Credential Provider to obtain their username and password, via 
the Web site, https://apply.grants.gov/OrcRegister. The AOR usernames 
and passwords serve as ``electronic signatures'' when an AOR submits an 
application via Grants.gov on behalf of an organization. AORs must wait 
until after their organization has received registration confirmation 
from the CCR before they can obtain their user names and passwords. 
AORs designate their user name and password when registering with a 
credential provider. AORs will receive validation of their user names 
and passwords on the same day that they submit the information online.
    d. Step four requires the AORs to register with Grants.gov. AORs 
must register with Grants.gov to obtain an account at the Web site, 
https://apply.grants.gov/GrantsgovRegister. AOR registration with 
Grants.gov allows AORs to submit applications on behalf of the 
organization and to track the status of submitted applications.
    e. Step five requires the E-Business POC to approve the designated 
AORs. When an AOR registers with Grants.gov (step 4), the E-Business 
POC will receive an e-mail notification. The E-Business POC must 
subsequently log into Grants.gov (using the organization's DUNS number 
as the user name and the M-PIN as the password) and approve the AOR(s), 
thereby giving each approved AOR permission to electronically submit 
applications on behalf of the organization using Grants.gov. Only the 
organization's E-Business POC can approve AORs. After the E-Business 
POC approves an AOR, Grants.gov will send the AOR confirmation of the 
approval via e-mail. See HUD's Notice on Early Registration for 
complete details of the registration process and steps.
    2. Important Registration Tips.
    a. The registration process is distinct from application submission 
and encompasses five-steps that can take approximately 10 business days 
to complete. Therefore, applicants must allow sufficient time to 
complete their registration prior to submitting their application. 
Applicants can submit their application to Grants.gov once they are 
fully registered. Please note that the Internal Revenue Service takes 
approximately 5 weeks to provide a new organization with a Tax 
Identification Number (TIN) or Employer Identification Number (EIN). 
You will need a TIN or EIN to register in the CCR. Please allow 
sufficient time to obtain the TIN or EIN if you currently do not have 
one for your organization, as you will need the number to complete the 
registration process in CCR.
    b. Applicants must remember the password and ID they are provided 
during the registration process. Passwords and IDs are case sensitive. 
Forgetting your password or ID could delay the timely submission of 
your application.
    c. Applicants must register and the E-Business Point of Contact 
must authorize the individual(s) who will be submitting the application 
on behalf of the organization. By authorizing the person to submit on 
behalf of the organization, the organization is stating that the person 
can make a legally binding commitment for the organization.
    3. Instructions On How to Submit an Electronic Application to HUD 
via http://www.grants.gov/Apply.
    a. Complete Application Package. Grants.gov has a full set of 
instructions on how to complete a grant application on its Web site at 
http://www.grants.gov/CompleteApplication. Applicants are encouraged to 
read the ``Complete Application Package'' Web site. The site contains a 
multimedia demonstration that guides applicants through the process of 
completing an application package. The training demonstration is also 
available in text format on the Web site. Grants.gov allows applicants 
to download the application package, application instructions, and 
forms incorporated in the instructions and work off-line. In addition 
to forms that are part of the application instructions downloaded from 
Grants.gov, there are a series of electronic forms that use a 
PureEdgeTM Reader. The PureEdgeTM Reader is 
available free for download from Step 2 of http://www.grants.gov/Get 
Started. Grants.gov has an updated version of the PureEdge Viewer 
(version 6.2). If applicants have not upgraded their version of the 
PureEdge viewer, they must do so before downloading the application 
package. The PureEdgeTM Reader allows applicants to read the 
electronic files in a form format so that they will look like any other 
Standard or HUD form. The PureEdgeTM forms have content-
sensitive help. To use this feature, click on the icon that features an 
arrow with a question mark at the top of the page. This engages the 
content-sensitive help for each field on the electronic form. The 
PureEdgeTM forms can be downloaded and saved on your hard 
drive, network drive(s), or CDs. Because of the size of the 
application, HUD recommends downloading the application to your 
computer hard drive.
    Please review Section IV. to ensure that your application contains 
all the required materials.
    MacIntosh users will need to use the Virtual PC emulator software, 
which allows PC software to run on MacIntosh platforms. More 
information on PureEdgeTM Support for MacIntosh Users is 
available at http://www.grants.gov/CompleteApplication#, located under 
the topic Tips and Tools. Grants.gov is in the process of upgrading its 
system to allow MacIntosh users to be able to view PureEdge forms. The 
new feature will be issued shortly. Please check the Grants.gov Web 
site for the announcement of this additional feature.
    b. Mandatory Fields on PureEdgeTM Forms. In the 
PureEdgeTM forms, you will find fields with a yellow 
background. These data fields are mandatory and must be completed.
    c. Completion of SF-424 Fields First. The PureEdgeTM 
forms are designed to automatically populate common data such as the 
applicant name and address, DUNS number, etc., on all 
PureEdgeTM electronic forms. In order to trigger this 
function, the Standard Form 424 (SF-424) must be completed first. Once 
applicants complete the SF-424, the information entered will transfer 
to the other forms.
    d. Submission of Narrative Statements, Third Party Letters, and 
Certifications. In addition to forms, many of the NOFAs require the 
submission of other documentation, such as third party letters, 
certifications, or program narrative statements. This section discusses 
how you should submit this additional information electronically as 
part of your application:
    (1) Narrative Statements to the Factors for Award. Narrative 
statements must be submitted as an electronic file in Microsoft Word 
(version 9 or earlier), Microsoft Excel 2000, or in Portable Document 
Format (PDF) that is compatible with AdobeTM Reader version 
6.0 or earlier. Applicants should also follow the directions provided 
above in Section IV. regarding narratives. If HUD receives a file in a

[[Page 26640]]

format other than those specified, HUD will not be able to read the 
file, and it will not be reviewed. Each response to a Factor for Award 
should be clearly identified and can be incorporated into a single 
attachment or all attachments zipped together into a single attached 
file. Please carefully review the NOFA requirements for submission 
format in section IV.B. Documents that applicants possess in electronic 
format, e.g., narratives they have written, or graphic images (such as 
Computer Aided Design (CAD) files from an architect), must be attached 
using the ``Attachments'' form included in the application package 
downloaded from Grants.gov. In order to reduce the size of its 
attachments, applicants can compress all or several files using a ZIP 
utility. Applicants can then attach the zipped file as described above.
    (2) Third Party Letters, Certifications Requiring Signatures, and 
Other Documentation. Applicants required to submit third party 
documentation (e.g., establishing matching or leveraged fund, 
documentation of 501(c)(3) status or incorporation papers, documents 
that support the need for the program, memoranda of understanding 
(MOUs), or program required documentation that supports your 
organization's claims regarding work that has been done to remove 
regulatory barriers to affordable housing) can choose from the 
following two options, as a way to provide HUD with the documentation:
    (a) Scanning Documents to Create Electronic Files. Scanning 
documents increases the size of files. Applicants may not submit 
scanned files unless the facsimile solution described below will not 
work due to the nature of the document. Electronic files must be 
labeled so that the recipient at HUD will know what the file contains. 
See Section IV for instructions on how to name the files applicants 
must submit.
    (b) Faxing Required Documentation. Applicants may submit the 
required documentation to HUD by facsimile. Applicants may only use the 
fax method to submit attachments that are part of their electronic 
applications. HUD will not accept entire applications by fax. HUD will 
disqualify applications submitted entirely by fax.
    Facsimiles submitted in response to a NOFA must use the form HUD-
96011. The transmittal form to be downloaded with the application can 
be found on Grants.gov. The transmittal form found in the downloaded 
application contains a unique identifier that allows HUD to match an 
applicant's application submitted via Grants.gov with faxes coming from 
a variety of sources. Therefore, for HUD to correctly match a fax to a 
particular application, the applicant must use and require third 
parties that fax documentation on its behalf to use the form HUD-96011 
as the cover page of the facsimile. Using the form HUD-96011 will 
ensure that HUD can electronically read faxes submitted by and on 
behalf of an applicant and match them to the applicant's application 
package received via Grants.gov.
    When you download an application package from Grants.gov, be sure 
to save it to your hard drive, complete the SF-424, and then provide 
copies of the form HUD-96011 facsimile transmittal cover page to third 
parties that will submit information in support of your application. Do 
not download the same application package from Grants.gov more than 
once. Each time the application package is downloaded, the forms are 
given a unique ID number. To ensure that all the forms in your package 
contain the same unique ID number, after downloading your application 
complete the SF-424, save the forms to your hard drive, and use the 
saved forms to create your application. If you have to provide a copy 
of the form HUD-96011 to another party that will be responsible for 
faxing an item as part of your application, make a copy of the 
facsimile transmittal cover page from your downloaded application and 
provide that copy to the third party for use with the fax transmission. 
Please instruct third parties to use the form HUD-96011 that you have 
provided as a cover page when they submit information supporting your 
application using the facsimile method, because it contains the 
embedded ID number that is unique to your application submission. 
Applicants must fax their information, and third parties must fax 
information in support of an applicant's application, using the HUD-
96011 facsimile transmittal cover page, to the following fax number: 
(800) HUD-1010. If you cannot access this 800 number or have problems, 
you may use (215) 825-8798 (this is not a toll-free number). Failure to 
use the form HUD-96011 as the cover page will create a problem in 
electronically matching your faxes to the application. If HUD is unable 
to match the faxes electronically due to an applicant's failure to 
follow these directions, HUD will not hand-match faxes to applications 
and not consider the faxed information in rating the application.
    In addition, applicants must fax individual documents as separate 
submissions to avoid fax transmission problems. When faxing several 
documents, applicants must use the form HUD-96011 as the cover page for 
each document (e.g., Letter of Matching or Leveraging funds, Memorandum 
of Understanding, Certification of Consistency with the Consolidated 
Plan, etc.) Please be aware that faxing large documents at one time may 
result in transmission failures. Be sure to check the record of your 
transmission issued by the fax machine to ensure that your fax 
submission was completed ``OK.'' For large or long documents, HUD 
suggests that you divide the document into smaller sections for faxing 
purposes. Each time you fax a document that you have divided into 
smaller sections, you should indicate on the cover sheet the section 
number of the total number of sections that you submitted, (e.g., 
``Part 1 of 4 parts'' or ``pages 1-10 of 20 pages'').
    Your facsimile machine should provide you with a record of whether 
HUD received your transmission. If you get a negative response or a 
transmission error, you should resubmit the document until you confirm 
that HUD has received your transmission. HUD will not acknowledge that 
it received a fax successfully. When HUD receives a fax electronically, 
HUD will electronically read it with an optical character reader and 
attach it to the application submitted through Grants.gov. Applicants 
and third parties submitting information in support of the applicant's 
application may submit information by facsimile transmissions at any 
time before the application deadline date. Applicants must ensure that 
the form HUD-96011 used to fax information matches their electronic 
application (i.e., is part of the application package downloaded from 
Grants.gov). All faxed materials must be received no later than 
11:59:59 p.m. eastern time on the application deadline date. HUD will 
store the information and match it to the electronic application when 
HUD receives it from Grants.gov.
    Facsimile Transmission Tip: Be sure to save your receipt of 
successful facsimile transmission as proof that the document was timely 
submitted to HUD. In cases where receipt may be in question, the 
transmittal receipt is your proof of timely receipt and successful 
submission.
    (c) Submissions Using Other File Formats. If you are required to 
submit files in other formats such as CAD files of architectural 
drawings and blueprints, or pictures, you must attach these as 
electronic files in PDF format that is compatible with 
AdobeTM Reader version 6.0 or earlier. The files should be 
part of the zipped folder that is

[[Page 26641]]

attached and submitted with your application transmission.
    e. Customer Support. The Grants.gov Web site provides customer 
support via (800) 518-GRANTS (this is a toll-free number) or via e-mail 
at [email protected]. The customer support center is open from 7 a.m. 
to 9 p.m. eastern time, Monday through Friday, except federal holidays, 
to address Grants.gov technology issues. For technical assistance to 
program-related questions, contact the number listed in Section VII 
Agency Contact.
    4. Timely Receipt Requirements and Proof of Timely Submission.
    a. Electronic Submission.
    (1) All applications must be received and validated by Grants.gov 
by 11:59:59 p.m. eastern time on the application deadline date. If the 
application is not validated before the deadline date, it will not be 
considered as meeting the deadline requirements.
    Important Submission Tip: Upon successful submission, an applicant 
will receive an email notification confirming receipt and indicating 
the application is being validated and that the validation process will 
be completed in approximately 24 to 48 hours. If the application does 
not pass the validation check, it will be rejected and the applicant 
notified of the reason for the rejected application. Applicants should 
therefore not assume because Grants.gov received an application, that 
they have successfully submitted the application until they receive the 
validation notice. If a rejection notice is received, the applicant 
should review the reasons for rejection and, if time permits, correct 
the error(s) and resubmit the application in time to meet the deadline 
requirements.
    (2) Proof of timely submission and validation is automatically 
recorded by Grants.gov. An electronic time stamp is generated within 
the system when the application has been successfully received and 
validated.
    (3) An applicant will receive an acknowledgement of receipt and a 
tracking number from Grants.gov with the successful transmission of its 
application followed by the validation receipt. When the validated 
application is transmitted from Grants.gov to HUD, the applicant will 
receive an email notification that the application was received by the 
funding agency. Applicants should print and file these receipts along 
with facsimile receipts for information provided by facsimile, as proof 
of timely submission. Applicants will be considered as meeting the 
deadline date requirements when Grants.gov has received and validated 
your application no later than the deadline date and time, and all fax 
transmissions have been received by the deadline date and time.
    (4) Applications validated by Grants.gov after the established 
deadline date and time for the program will be considered late. HUD 
will not consider any late application submissions. Similarly, HUD will 
not consider information submitted by facsimile as part of the 
application if received by HUD after the established deadline date and 
time. Please take into account the transmission time required for 
submitting your application via the Internet and the time required to 
fax any related documents. HUD suggests that applicants submit their 
applications during the operating hours of the Grants.gov Support Desk 
so that, if there are questions concerning transmission, operators will 
be available to assist you through the process. Submitting your 
application during the Support Desk hours will also ensure that you 
have sufficient time for the application to complete its transmission 
before the application deadline.
    (5) Applicants using dial-up connections should be aware that 
transmitting your application takes extra time before Grants.gov 
receives it. Grants.gov will provide either an error or a successfully 
received transmission message. The Grants.gov Support Desk reports that 
some applicants abort the transmission because they think that nothing 
is occurring during the transmission process. Please be patient and 
give the system time to process the application. Uploading and 
transmitting a large file, particularly electronic forms with 
associated eXtensible mark-up language (XML) schema, will take 
considerable time to process and be received by Grants.gov.
    Important Submission Tip. When submitting an application 
electronically, applicants should take the following steps to speed up 
the transmission process:
     Close all other applications running on the computer used 
for the upload;
     Save the completed application to the desktop, checking to 
make sure that the file that you intend to submit is the complete and 
final version of your application;
     Open and view all attachment files to make sure they are 
the final versions of the attachments that you plan to submit. Check 
your system to make sure other versions are not still saved and delete 
old versions so you do not submit the wrong attachments in the 
application submission;
     Check the application for errors using the check 
application for errors button contained in the Grants.gov application; 
if errors are found, follow each error message and correct the error;
     Submit your application using Internet Explorer or 
Netscape browsers. Grants.gov has been tested using these browsers, and 
HUD has found easier transmission with these browsers than others;
     Transmission, even for very large applications, should be 
completed in a few minutes. Transmission should not take longer than an 
hour. If transmission takes longer, close down the application, and 
contact the Grants.gov help line, retaining the help desk ticket number 
for future reference. You may also use the submit tips available on the 
Grants.gov Web site;
     Submit the application to Grants.gov 48 to 72 hours in 
advance of the deadline to provide sufficient time to correct any 
validation errors noted and address any registration issues;
     If validation errors are reported, correct the validation 
errors and resubmit the application if it is prior to the deadline 
date; late applications will not be accepted by Grants.gov;
     If you are not sure what to do, call the Grants.gov help 
desk and retain the ticket number for future reference.
     Do not attempt to submit electronically if the computer 
you are using does not meet the minimum requirements for electronic 
submission. These requirements are listed on the Grants.gov Web site, 
as well as HUD's Web site;
     If you get an ``MEC'' error message, it is a Microsoft 
Configuration Error. Contact your software provider or your computer/
information technology support desk to help you configure your system 
for the size files you are trying to upload. This is not a Grants.gov 
system issue, but rather an issue with your computer configuration.
    b. Late applications, whether received electronically or in hard 
copy, will not receive funding consideration. HUD will not be 
responsible for directing or forwarding applications to the appropriate 
location. Applicants should pay close attention to these submission and 
timely receipt instructions, as they can make a difference in whether 
HUD will accept your application for funding consideration.
    5. Waiver of Electronic Submission Requirements. For FY2006, the 
procedures for obtaining a waiver of the electronic submission 
requirement have changed. On December 29, 2005 (70 FR 77292), HUD 
published a final rule that established in 24 CFR 5.1005 the regulatory 
framework for HUD's electronic submission requirement, as well as the 
procedures for obtaining a waiver. Applicants seeking a waiver of

[[Page 26642]]

the electronic submission requirement must request a waiver in 
accordance with 24 CFR 5.1005. If the waiver is granted, the program 
office's response will include instructions on how, where, and how many 
hard copies of the paper application must be submitted. Applicants that 
are granted a waiver of the electronic submission requirement will not 
be afforded additional time to submit their applications. The deadlines 
for applications will remain as provided in this NOFA. As a result, 
applicants seeking a waiver of the electronic application submission 
requirement should submit their waiver request with sufficient time to 
allow HUD to process and respond to the request. Applicants should also 
allow themselves sufficient time to submit their application so that 
HUD receives the application by the established deadline date. For this 
reason, HUD strongly recommends that an applicant that finds it is 
unable to submit its application electronically and must seek a waiver 
of the electronic grant submission requirement, submit its waiver 
request to the headquarters of the applicable HUD office no later than 
30 days before the application deadline date. This will allow time for 
HUD to process the waiver request and give the applicant sufficient 
time to submit the paper application to meet the deadline date 
requirement if the waiver is granted. To expedite the receipt and 
review of such requests, applicants may email their requests to the 
program contact listed in the NOFA. Applications that are received 
after the established deadline date will not be considered.

V. Application Review Information

A. Criteria

1. Rating Factor: Capacity--23 Points Total
    a. Capacity of the Development Team--5 points. Address this Rating 
Factor through your narrative. This rating factor looks at the capacity 
of the development team as a whole. The term ``your Team'' includes PHA 
staff who will be involved in HOPE VI grant administration, and any 
alternative management entity that will manage the revitalization 
process, be responsible for meeting construction time tables, and 
obligating amounts in a timely manner. This includes any developer 
partners, program managers, property managers, subcontractors, 
consultants, attorneys, financial consultants, and other entities or 
individuals identified and proposed to carry out program activities.
    (1) You will receive up to 5 points if your application 
demonstrates that:
    (a) Your developer or other team members have extensive, recent 
(within the last five years), and successful experience in the 
redevelopment of public housing, including planning, implementing, and 
managing physical development, financing, leveraging, and partnership 
activities;
    (b) Your developer or other team members have extensive, recent 
(within the last five years), and successful experience in mixed 
finance and mixed income development, including planning, implementing, 
and managing physical development, financing, leveraging, and 
partnership activities;
    (c) You propose development using low-income tax credits, and your 
developer or other team members have relevant tax credit experience; 
and
    (d) If homeownership, rent-to-own, cooperative ownership, or other 
major development components are proposed, your developer or other team 
member has relevant, successful experience in development, sales, or 
conversion activities.
    (2) You will receive up to 3 points if your developer or other team 
members have some but not extensive experience in the factors described 
above.
    (3) You will receive zero points if your developer or other team 
members do not have the experience described above and the application 
does not demonstrate that it has the capacity to carry out your 
Revitalization plan. You will also receive 0 points if your application 
does not address this factor to an extent that makes HUD's rating of 
this factor possible.
    b. Development Capacity of Applicant--5 points. Address this Rating 
Factor through your narrative. This rating factor looks at the 
development capacity of ONLY the applicant (not other members of the 
development team).
    (1) You will receive up to 5 points if your application 
demonstrates that:
    (a) Separate from your team, you have extensive, recent (within the 
last five years), and successful experience in the redevelopment of 
public housing, including planning, implementing, and managing physical 
development, financing, leveraging, and partnership activities;
    (b) Separate from your team, you have extensive, recent (within the 
last five years), and successful experience in mixed finance and mixed 
income development, including planning, implementing, and managing 
physical development, financing, leveraging, and partnership 
activities;
    (c) As relevant, you have identified potential gaps in your current 
staffing in relation to development activities, and you have plans to 
fill such gaps, internally or externally, in a timely manner in order 
to implement successfully your Revitalization plan;
    (d) You have demonstrated that physical development activities will 
proceed as promptly as possible following grant award, and you will be 
able to begin significant construction within 18 months of the award of 
the grant. Applicants must provide a program schedule, developed in 
accordance with the timeframes in Section III.C. (Timeliness of 
Development) and V.A, in order to demonstrate this criterion.
    (1) You will receive up to 3 points if you have some but not 
extensive experience in the factors described above.
    (2) You will receive zero points if you do not have the experience 
described and the application does not demonstrate that it has the 
capacity to carry out your Revitalization plan. You will also receive 0 
points if your application does not address this factor to an extent 
that makes HUD's rating of this factor possible.
    c. Capacity of Existing HOPE VI Revitalization grantees. HUD will 
use data from the Quarterly Reports to evaluate this Rating Factor.
    (1) This section applies only to applicants that have received HOPE 
VI Revitalization grants for fiscal years 1993-2003. If an applicant 
has more than one HOPE VI Revitalization grant, each will be rated 
separately, not averaged, and the highest deduction will be made. 
Applicants with HOPE VI Revitalization grants only from FY2004 or 
FY2005, or no existing HOPE VI Revitalization grants are not subject to 
this section.
    (2) As indicated in the following tables, up to 5 points will be 
deducted if a grantee has failed to achieve adequate progress in 
relation to cumulative public housing rental unit production. 
Production achievement numbers will be taken from the quarterly 
reporting system for the quarter most recently completed at the time 
the NOFA is published in the Federal Register (March 31, 2006).

------------------------------------------------------------------------
                                                                Points
    Percent of public housing unit  production completed       deducted
------------------------------------------------------------------------
                      Grants Awarded in FY1993-1999
------------------------------------------------------------------------
Less than 100 Percent......................................            5
------------------------------------------------------------------------
                        Grants Awarded in FY2000
------------------------------------------------------------------------
90-100 Percent.............................................            0
80-89 Percent..............................................            1
75-79 Percent..............................................            2
70-74 Percent..............................................            3

[[Page 26643]]

 
65-69 Percent..............................................            4
Less than 65 Percent.......................................            5
------------------------------------------------------------------------
                        Grants Awarded in FY2001
------------------------------------------------------------------------
80-100 Percent.............................................            0
70-79 Percent..............................................            1
60-69 Percent..............................................            2
50-59 Percent..............................................            3
40-49 Percent..............................................            4
Less than 40 Percent.......................................            5
------------------------------------------------------------------------
                        Grants Awarded in FY2002
------------------------------------------------------------------------
60-100 Percent.............................................            0
50-59 Percent..............................................            1
40-49 Percent..............................................            2
30-39 Percent..............................................            3
20-29 Percent..............................................            4
Less than 20 Percent.......................................            5
------------------------------------------------------------------------
                        Grants Awarded in FY2003
------------------------------------------------------------------------
25-100 Percent.............................................            0
20-24 Percent..............................................            1
15-19 Percent..............................................            2
10-14 Percent..............................................            3
5-9 Percent................................................            4
Less than 5 Percent........................................            5
------------------------------------------------------------------------

    d. CSS Program Capacity--3 points.
    See Sections I. and III. of this NOFA for detailed information on 
CSS activities. Address this Rating Factor through your narrative.
    (1) You will receive 2 points if your application demonstrates one 
of the following. If you fail to demonstrate one of the following, you 
will receive 0 points:
    (a) If you propose to carry out your CSS plan in-house and you have 
recent, quantifiable, successful experience in planning, implementing, 
and managing the types of CSS activities proposed in your application, 
or
    (b) If you propose that a member(s) of your team will carry out 
your CSS plan, that this procured team member(s) has the qualifications 
and demonstrated experience to plan, implement, manage, and coordinate 
the types of activities proposed, and that you have the capacity to 
manage that team member, including a plan for promptly hiring staff or 
procuring this team member.
    (2) You will receive 1 point if your application demonstrates that:
    (a) You have an existing HOPE VI grant and your current CSS team 
will be adequate to implement a new program, including new or changing 
programs, without weakening your existing team.
    (b) You do not have an existing HOPE VI Revitalization grant and 
you demonstrate how your proposed CSS team will be adequate to 
implement a new program, including new or changing services, without 
weakening your existing staffing structure.
    e. Property Management Capacity--3 points. Address this Rating 
Factor through your narrative.
    (1) Property management activities may be the responsibility of the 
PHA or another member of the team, which may include a separate entity 
that you have procured or will procure to carry out property management 
activities. In your application you will describe the number of units 
and the condition of the units currently managed by you or your 
property manager, your annual budget for those activities, and any 
awards or recognition that you or your property manager have received.
    (2) Past Property Management Experience--2 points.
    (a) You will receive 2 points if your application demonstrates that 
you or your property manager currently have extensive knowledge and 
recent (within the last five years), successful experience in property 
management of the housing types included in your revitalization plan. 
This may include market-rate rental housing, public housing, and other 
affordable housing, including rental units developed with low-income 
housing tax credit assistance. If your Revitalization plan includes 
cooperatively-owned housing, rent-to-own units, or other types of 
managed housing, in order to receive the points for this factor, you 
must demonstrate recent, successful experience in the management of 
such housing by the relevant member(s) of your team.
    (b) You will receive 1 point if your application demonstrates that 
you or your property manager has some but not extensive experience of 
the kind required for your Revitalization plan.
    (c) You will receive 0 points if your application does not 
demonstrate that you or your property manager have the experience to 
manage your proposed plan, or if your application does not address this 
factor to an extent that makes HUD's rating of this factor possible.
    (3) Property Management Plan--1 point.
    (a) You will receive 1 point if your application describes how you 
or your property manager will administer the following elements of a 
property management plan:

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

    (b) You will receive 0 points if your application does not describe 
how you or your property manager will administer all the elements of a 
property management plan listed above, or if there is not sufficient 
information provided to evaluate this factor.
    f. PHA or MTW Plan--1 point.
    (1) You will receive 1 point if your application demonstrates that 
you have incorporated the revitalization plan described in your 
application into your most recent PHA plan or MTW Annual plan (whether 
approved by HUD or pending approval). In order to qualify as 
``incorporated'' under this factor, your PHA or MTW plan must indicate 
the intent to pursue a HOPE VI Revitalization grant and the public 
housing development for which it is targeted.
    (2) You will receive 0 points if you have not incorporated the 
revitalization plan described in your application into your PHA or MTW 
plan, or if your application does not address this factor to an extent 
that makes HUD's rating of this factor possible.
    g. Public Housing Assessment System (PHAS)--2 points.
    (1) If you have been rated as an Overall High Performer for your 
most recent PHAS review as of the application submission date, you will 
receive 2 points.
    (2) If you have been rated as an Overall Standard Performer for 
your most recent PHAS review as of the application submission date, you 
will receive 1 point.
    (3) If you have been rated as a Troubled Performer that is either 
Troubled in One Area or Overall Troubled as of the application 
submission date, you will receive 0 points.
    (4) For this rating factor, MTW PHA applicants will be rated on 
their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
    h. Regular Maintenance--2 points.
    (1) Through PHAS, HUD measures the prevalence of items that need to 
be fixed (defects) in PHAs' public housing developments. PHAs receive a 
report entitled ``Comparison of the Top 20

[[Page 26644]]

Observed Defects (Projected).'' HUD conducts analyses related to this 
report. In these analyses, HUD separates the regular maintenance 
projected defects from the total projected defects (other categories of 
defects include capital and life threatening/exigent health and 
safety), applies them across all units in the PHA's inventory and 
develops a rate of defects per unit. HUD will compare the PHA's most 
recent PHAS projected number of regular maintenance defects per unit 
and compare it to the previous projected number of regular maintenance 
defects per unit. (a) You will receive 2 points if your projected 
number of regular maintenance defects per unit has improved. (b) You 
will receive 0 points if your projected number of regular maintenance 
defects per unit have not improved.
    (2) MTW PHA. For this rating factor, MTW PHA applicants will be 
rated on their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
    i. Section 8 Management Assessment Program (SEMAP)--2 points.
    (1) If you have been rated as a High Performer for your most recent 
SEMAP rating as of the application submission date, you will receive 2 
points.
    (2) If you have been rated as Standard for your most recent SEMAP 
rating as of the application submission date, you will receive 1 point.
    (3) If you have been rated as Troubled for your most recent SEMAP 
rating as of the application submission date, you will receive zero 
points.
    (4) For this rating factor, MTW PHA applicants will be rated on 
their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
    2. Rating Factor: Need--20 Points Total
    a. Severe Physical Distress of the Public Housing Development--10 
Points
    (1) HUD will evaluate the extent of the severe physical distress of 
the targeted public housing development. If the targeted units have 
already been demolished, HUD will evaluate your description of the 
extent of the severe physical distress of the site as of the day the 
demolition application was approved by HUD. You will receive points for 
the following separate subfactors, as indicated.
    (a) You will receive up to 3 points if your application 
demonstrates that there are major deficiencies in the project's 
infrastructure, including roofs, electrical, plumbing, heating and 
cooling, mechanical systems, settlement, and other deficiencies in 
Housing Quality Standards.
    (b) You will receive up to 3 points if your application 
demonstrates that there are major deficiencies in the project site, 
including poor soil conditions, inadequate drainage, deteriorated 
laterals and sewers, and inappropriate topography.
    (c) You will receive up to 4 points if your application 
demonstrates that there are major design deficiencies, including:
    Inappropriately high population density, room, and unit size and 
configurations; Isolation; Indefensible space; Significant utility 
expenses caused by energy conservation deficiencies that may be 
documented by an energy audit; and Inaccessibility for persons with 
disabilities with regard to individual units (less than 5 percent of 
the units are accessible), entranceways, and common areas.
    b. Impact of the Severely Distressed Site on the Surrounding 
Neighborhood--3 Points
    (1) HUD will evaluate the extent to which the severely distressed 
public housing project is a significant contributing factor to the 
physical decline of, and disinvestment by, public and private entities 
in the surrounding neighborhood. In making this determination, HUD will 
evaluate your narrative, crime statistics, photographs or renderings, 
socio-economic data, trends in property values, evidence of property 
deterioration and abandonment, evidence of underutilization of 
surrounding properties, and indications of neighborhood disinvestment.
    (2) You will receive up to 3 Points if your application 
demonstrates that the project has a significant impact on the 
surrounding neighborhood, as documented by each item listed above.
    (3) You will receive up to 2 Points if your application 
demonstrates that the project has a moderate impact on the 
neighborhood, and only some of the items listed above are adequately 
documented.
    (4) You will receive 0 Points if your application does not 
demonstrate that the project has an impact on the surrounding 
neighborhood, or if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
    c. Need for HOPE VI Funding--4 Points
    (1) HUD will evaluate the extent to which you could undertake the 
proposed revitalization activities without a HOPE VI grant. Large 
amounts of available FY 2001-2005 Capital Funds (including 
Comprehensive Improvement Assistance Program (CIAP) and Comprehensive 
Grant Program (CGP) but not Replacement Housing Factor funds (RHF) for 
purposes of this NOFA) indicate that the revitalization could be 
carried out without a HOPE VI grant. Available Capital Funds are 
defined as non-obligated funds that have not been earmarked for other 
purposes in your PHA Plan. Funds earmarked in the PHA Plan for uses 
other than the revitalization proposed in this application will not be 
considered as available. Based on the above definition, to determine 
the amount of available FY 2001-2005 Capital Funds, applicants must 
indicate in their application the amount in the narrative of their 
application. See Section IV.B. of this NOFA for documentation 
requirements.
    (2) You will receive 4 Points if your available Capital Funds 
balance is up to 20 percent of the amount of HOPE VI funds requested.
    (3) You will receive 3 Points if your available balance is 21-45 
percent of the amount of HOPE VI funds requested.
    (4) You will receive 2 Points if your available balance is 46-70 
percent of the amount of HOPE VI funds requested.
    (5) You will receive 1 Point if your available balance is 71 to 90 
percent of the amount of HOPE VI funds requested.
    (6) You will receive zero Points if your available balance is more 
than 90 percent of the amount of HOPE VI funds requested.
    d. Need for Affordable Accessible Housing in the Community--3 
Points
    (1) Your application must demonstrate the need for other housing 
available and affordable to families receiving tenant-based assistance 
under section 8 (HCV), as described below and must be the most recent 
information available at the time of the application deadline.
    (2) For purposes of this factor, the need for affordable housing in 
the community will be measured by Housing Choice Voucher program 
utilization rates or public housing occupancy rates, whichever of the 
two reflects the most need. In figuring the Housing Choice Voucher 
utilization rate, determine and provide the percentage of HCV units out 
of the total number authorized or the percentage of HCV funds expended 
out of the total amount authorized, whichever

[[Page 26645]]

percentage is higher. In figuring the public housing occupancy rate, 
provide the percentage of units occupied out of the total in your 
federal public housing inventory, excluding the targeted public housing 
site. You should base your calculation only on the federal public 
housing units you manage. You may not exclude units in your public 
housing inventory that are being reserved for relocation needs related 
to other HOPE VI Revitalization grant(s); or units in your public 
housing inventory that are being held vacant for uses related to a 
Section 504 voluntary compliance agreement. If you are a non-MTW site, 
you must use information consistent with the Section Eight Management 
Assessment Program (SEMAP) and/or the Public Housing Assessment System 
(PHAS) submissions. If you are an MTW site, and do not report into 
SEMAP and/or PHAS, you must demonstrate your utilization and/or 
occupancy rate using similar methods and information sources in order 
to earn points under this rating factor.
    (3) You will receive 3 Points if your application demonstrates that 
the higher of:
    (a) The utilization rate of your Housing Choice Voucher program is 
97 percent or higher; or
    (b) The occupancy rate of your public housing inventory is 97 
percent or higher.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (4) You will receive 2 Points if your application demonstrates that 
the higher of:
    (a) The utilization rate of your Housing Choice Voucher program is 
between 95 and 96 percent; or,
    (b) The occupancy rate of your public housing inventory is between 
95 and 96 percent.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (5) You will receive 1 Point if your application demonstrates that 
the higher of:
    (a) The utilization rate of your Housing Choice Voucher program is 
between 93 and 94 percent; or
    (b) The occupancy rate of your public housing inventory is between 
93 and 94 percent.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (6) You will receive 0 Points if both the utilization rate of your 
Housing Choice Voucher program and the occupancy rate of your public 
housing inventory are less than 93 percent.
    3. Rating Factor: Leveraging--16 Points Total
    a. Leverage. Although related to match, leverage is strictly a 
rating factor. Leverage consists of firm commitments of funds and other 
resources. HUD will rate your application based on the amount of funds 
and other resources that will be leveraged by the HOPE VI grant as a 
percentage of the amount of HOPE VI funds requested. There are four 
types of Leverage: Development and CSS, as described in the ``Program 
Requirements'' section of Section III.C. of this NOFA, and 
Anticipatory, and Collateral as described in this rating factor. Each 
resource may be used for only one leverage category. Any resource 
listed in more than one category will be disqualified from all 
categories. In determining Leverage ratios, HUD will include as 
Leverage the match amounts that are required by Section III. of this 
NOFA. Applicants must follow the Program Requirements for Match and 
Leverage section of Section III.C of this NOFA when preparing their 
leverage documentation. If leverage sources and amounts are not 
documented in accordance with Sections III.C., they will not be counted 
toward your leverage amounts.
    b. Development Leveraging--7 Points.
    For each commitment document, HUD will evaluate the strength of 
commitment and add the amounts that are acceptably documented. HUD will 
then calculate the ratio of the amount of HUD funds requested to the 
amount of funds that HUD deems acceptably documented. HUD will round 
figures to two decimal points, using standard rounding rules. See 
Section III.C, Program Requirements, Program Requirements for Match and 
Leverage for resource and documentation requirements. These 
requirements MUST be followed in order to earn points under the 
leverage rating factor.
    (1) You will receive 7 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS, 
administration or relocation) to the dollar value of documented, 
committed development resources from other sources is 1:3 or higher.
    (2) You will receive 6 Points if the ratio is between 1:2.50 and 
1:2.99
    (3) You will receive 5 Points if the ratio is between 1:2.0 and 
1:2.49.
    (4) You will receive 4 Points if the ratio is between 1:1.50 and 
1:1.99.
    (5) You will receive 3 Points if the ratio is between 1:1.0 and 
1:1.49.
    (6) You will receive 2 Points if the ratio is between 1:0.50 and 
1:0.99.
    (7) You will receive one Point if the ratio is between 1:0.25 and 
1:0.49.
    (8) You will receive 0 Points if the ratio is less than 1:0.25, or 
if your application does not address this factor to an extent that 
makes HUD's rating of this factor possible. You will receive 0 Points 
if your application does not request HOPE VI funds for CSS purposes.
    c. CSS Leveraging--5 Points. See Section III.C, Program 
Requirements, Program Requirements for Match and Leverage for resource 
and documentation requirements. These requirements MUST be followed in 
order to earn points under the leverage rating factor.
    (1) You will receive 5 Points if the ratio of the amount of HOPE VI 
funds requested for CSS activities to the dollar value of documented, 
committed CSS resources leveraged from other sources is 1:2 or higher.
    (2) You will receive 4 Points if the ratio is between 1:1.75 and 
1:1.99.
    (3) You will receive 3 Points if the ratio is between 1:1.5 and 
1:1.749.
    (4) You will receive 2 Points if the ratio is between 1:1.25 and 
1:1.49.
    (5) You will receive one Point if the ratio is between 1:1 and 
1:1.249.
    (6) You will receive 0 Points if the ratio is less than 1:1, or if 
your application does not address this factor to an extent that makes 
HUD's rating of this factor possible. You will receive 0 Points if your 
application does not request HOPE VI funds for CSS purposes.
    d. Anticipatory Resources Leveraging--2 Points.
    Anticipatory Resources relate to activities that have taken place 
in the past and that were conducted in direct relation to a HOPE VI 
Revitalization grant. In many cases, PHAs, cities, or other entities 
may have carried out revitalization activities (including demolition) 
in previous years in anticipation of your receipt of a HOPE VI 
Revitalization grant. These expenditures, if documented, may be counted 
as leveraged anticipatory resources. They cannot duplicate any other 
type of resource and cannot be counted towards match. Public Housing 
funds other than HOPE VI Revitalization, e.g., HOPE VI Demolition grant 
funds, HOPE VI Neighborhood Networks grant funds, HOPE VI Main Street 
grant funds, Capital Fund Program, may be included, and will be 
counted, toward your Anticipatory Resources rating below. For 
Anticipatory Resources ratios, ``HOPE VI funds requested for physical 
development activities'' is defined as your total requested amount of 
funds minus your requested CSS, administration amounts, and relocation. 
HUD will presume that your combined CSS, administration and relocation 
amounts are the total of Budget Line Items 1408 (excluding non-CSS

[[Page 26646]]

Management Improvements), 1410, and 1495 on the form HUD-52825-A, 
``HOPE VI Budget'' that is included in your application. See Section 
III for Program Requirements and Section IV for Documentation 
Requirements. These requirements MUST be followed as relevant in order 
to earn points under the leverage rating factor
    (1) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities to the amount of 
your documented anticipatory resources is 1:0.1 or higher.
    (2) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities, to the amount of 
your documented anticipatory resources is less than 1:0.1.
    e. Collateral Investment Leveraging--2 Points.
    Collateral investment includes physical redevelopment activities 
that are currently underway, or have yet to begin but are projected to 
be completed before October 1, 2010. The expected completion time must 
be addressed in your application. In order for a leverage source to be 
counted as collateral investment, your application must demonstrate 
that the related activities will directly enhance the new HOPE VI 
community, but will occur whether or not a Revitalization grant is 
awarded to you and the public housing project is revitalized. This 
includes economic or other kinds of development activities that would 
have occurred with or without the anticipation of HOPE VI funds. These 
resources cannot duplicate any other type of resource and cannot be 
counted as match. Examples of collateral investments include local 
schools, libraries, subways, light rail stations, improved roads, day 
care facilities, and medical facilities. See Section III for Program 
Requirements and Section IV for Documentation Requirements. These 
requirements MUST be followed as relevant in order to earn points under 
the leverage rating factor.
    (1) You will receive 2 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is 1:1.0 or higher.
    (2) You will receive 0 Points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is less than 1:1.0.
    4. Rating Factor: Resident and Community Involvement--3 Points 
Total
    a. HUD will evaluate the nature, extent, and quality of the 
resident and community outreach and involvement you have achieved by 
the time your application is submitted, as well as your plans for 
continued and additional outreach and involvement beyond the minimum 
threshold requirements. See Section III.C. of this NOFA for Resident 
and Community Involvement requirements.
    b. Resident and Community Involvement--3 Points.
    You will receive one Point for each of the following criteria met 
in your application, which are over and above the threshold 
requirements listed in Section III.C. of this NOFA.
    (1) Your application demonstrates that you have communicated 
regularly and significantly with affected residents, state and local 
governments, private service providers, financing entities, developers, 
and other members of the surrounding community about the development of 
your revitalization plant by giving residents and community members 
information about your actions regarding the revitalization plan and 
providing a forum where residents and community members can contribute 
recommendations and opinions with regard to the development and 
implementation of the revitalization plan.
    (2) Your application demonstrates your efforts, past and proposed, 
to make appropriate HUD communications about HOPE VI available to 
affected residents and other interested parties, e.g., a copy of the 
NOFA, computer access to the HUD Web site, etc.
    (3) Your application demonstrates your plans to provide affected 
residents with reasonable training on the general principles of 
development, technical assistance, and capacity building so that they 
may participate meaningfully in the development and implementation 
process.
    5. Rating Factor: Community and Supportive Services--12 Points 
Total
    a. CSS Program Requirements. See Section III.C for CSS program 
requirements. In your application, you will describe your CSS plan, 
including any plans to implement a CSS Endowment Trust. Each of the 
following subfactors will be rated separately.
    b. Case Management--2 points.
    (1) You will receive 2 Points if your application demonstrates that 
you are already providing case management services to the targeted 
residents by this proposal as of the application due;
    (2) You will receive 1 point if your application demonstrates that 
you will be able to provide case management within 30 days from the 
date of the grant award letter so that residents who will be relocated 
have time to participate and benefit from CSS activities before leaving 
the site.
    (3) You will receive 0 points if your application does not 
demonstrate either of the above criteria, or your application does not 
include sufficient information to be able to evaluate this factor.
    c. Needs Assessment and Results--3 points.
    (1) You will receive 3 points if your application demonstrates that 
a comprehensive resident needs assessment has been completed as of the 
application due date and that this needs assessment is the basis for 
the CSS Program proposed in the application. You must describe and 
quantify the results of the needs assessment.
    (2) You will receive up to 2 points if your application 
demonstrates that a resident needs assessment has been completed as of 
the application due date, but does not show that the needs assessment 
was comprehensive clearly linked to the proposed CSS Program, and/or 
does not describe and quantify the results of the needs assessment.
    (2) You will receive 0 points if your application does not 
demonstrate any of the above criteria, or your application does not 
include sufficient information to be able to evaluate this factor.
    d. Transition to Housing Self-Sufficiency--5 points.
    You will receive up to 5 Points if you address the methods you will 
use to assist public housing residents in their efforts to transition 
to other affordable and market-rate housing, i.e., to gain ``housing 
self-sufficiency.''
    (1) You will receive up to 5 Points if your application 
demonstrates that your CSS Program includes and addresses all three of 
the below items. Your CSS Program:
    (a) Provides measurable outcomes for this endeavor;
    (b) Describes in detail how your other CSS and FSS activities 
relate to the transition of public housing residents to housing self-
sufficiency; and
    (c) Specifically addresses the grassroots, community-based and 
faith-based organizations, etc. that will join you in the endeavor.
    (2) You will receive up to 2 Points if your CSS Program includes 
and addresses at least two of the above three items (a) through (c) 
above.
    (3) You will receive 0 Points if your CSS Program includes and 
addresses less than two of the above items (a) through (c) above.

[[Page 26647]]

    f. Quality and Results Orientation in CSS Program--2 points.
    (1) You will receive 2 Points if you have proposed a comprehensive, 
high quality, results-oriented CSS program that is based on a case 
management system and that provides services/programs to meet the needs 
of all residents groups (e.g., youth, adult, elderly, disabled) 
targeted by the application. These services/programs may be provided 
directly or by partners. They must be designed to assist residents 
affected by the revitalization in transforming their lives and becoming 
self-sufficient, as relevant.
    (2) You will receive up to 1 Point if you have proposed a CSS 
program that meets some but not all of the criteria in the paragraph 
above;
    (3) You will receive 0 points if your application does not 
demonstrate any of the above criteria, or your application does not 
include sufficient information to be able to evaluate this factor.
    6. Rating Factor: Relocation--5 Points Total
    See Sections III.C. of this NOFA for Relocation and Relocation Plan 
requirements. For all applicants, whether you have completed, or have 
yet to complete, relocation of all residents of the targeted project, 
your HOPE VI Relocation Plan must include the three goals set out in 
Section 24 of the 1937 Act, as described in Sections a.(1)(a), (b) and 
(c) below.
    a. You will receive up to 5 Points for this Factor if you describe 
thoroughly how your Relocation Plan:
    (1) Includes a description of specific activities that have 
minimized, or will minimize, permanent displacement of residents of the 
units that will be rehabilitated or demolished in the targeted public 
housing site, provided that those residents wish to remain in or return 
to the revitalized community;
    (2) Includes a description of specific activities that will give 
existing residents priority over other families for future occupancy of 
public housing units in completed HOPE VI Revitalization Development 
projects, or, for existing residents that can afford to live in non-
public housing HOPE VI units, priority for future occupancy of those 
planned units; and
    (3) Includes a description of specific CSS activities that will be 
provided to residents prior to any relocation;
    b. You will receive up to 3 Points for this Factor if your 
Relocation Plan complies with some but not all of the criteria above.
    c. You will receive 0 Points for this Factor if: (1) Your 
Relocation Plan does not comply with any of the requirements above; or 
(2) Your application does not provide sufficient information to 
evaluate this rating factor.
    7. Rating Factor: Fair Housing and Equal Opportunity--6 Points 
Total
    a. FHEO Disability Issues--3 Points Total.
    (1) Accessibility--2 Points.
    (a) Over and above the accessibility requirements listed in Section 
III.C. of this NOFA, you will receive 2 Points if your application 
demonstrates that you have a detailed plan to:
    (i) Provide accessibility in homeownership units (e.g., setting a 
goal of constructing a percentage of the homeownership units as 
accessible units for persons with mobility impairments; promising to 
work with prospective disabled buyers on modifications to be carried 
out at a buyer's request; exploring design alternatives that result in 
townhouses that are accessible to persons with disabilities);
    (ii) Provide accessible units for all eligible populations ranging 
from one-bedroom units for non-elderly single persons with disabilities 
through units in all bedroom sizes to be provided;
    (iii) Provide for accessibility modifications, where necessary, to 
Housing Choice Voucher-assisted units of residents who relocate from 
the targeted project to private or other public housing due to 
revitalization activities. The Department has determined that the costs 
of such modifications are eligible costs under the HOPE VI program;
    (iv) Where playgrounds are planned, propose ways to make them 
accessible to children with disabilities, over and above statutory and 
regulatory requirements; and
    (v) Where possible, design units with accessible front entrances.
    (b) You will receive 1 Point if your application demonstrates that 
you have a detailed plan to implement from one to four of the 
accessibility priorities stated above, explaining why and how you will 
implement the identified accessibility priorities.
    (c) You will receive 0 Points if your application does not 
demonstrate that you have a detailed plan that meets the specifications 
above, or if your application does not address this factor to an extent 
that makes HUD's rating of this factor possible.
    (2) Universal Design--1 Point.
    (a) You will receive 1 Point if your application demonstrates that 
you have a specific plan to meet:
    (i) The adaptability standards adopted by HUD at 24 CFR 8.3 that 
apply to those units not otherwise covered by the accessibility 
requirements. Adaptability is the ability of certain elements of a 
dwelling unit, such as kitchen counters, sinks, and grab bars, to be 
added to, raised, lowered, or otherwise altered, to accommodate the 
needs of persons with or without disabilities, or to accommodate the 
needs of persons with different types or degrees of disability. For 
example, the wiring for visible emergency alarms may be installed so 
that a unit can be made ready for occupancy by a hearing-impaired 
person (For information on adaptability, see http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf); and
    (ii) The visitability standards recommended by HUD that apply to 
units not otherwise covered by the accessibility requirements. 
Visitability standards allow a person with mobility impairments access 
into the home, but do not require that all features be made accessible. 
A visitable home also serves persons without disabilities, such as a 
mother pushing a stroller or a person delivering a large appliance. See 
http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf for 
information on visitability.
    The two standards of visitability are:
    (A) At least one entrance at grade (no steps), approached by a 
sidewalk; and
    (B) The entrance door and all interior passage doors are at least 2 
feet 10 inches wide, allowing 32 inches of clear passage space.
    (b) You will receive 0 Points if your application does not 
demonstrate that you have specific plans to implement both (i) and (ii) 
as specified above, or if your application does not address this factor 
to an extent that makes HUD's rating of this factor possible.
    b. Fair Housing and Affirmative Marketing--1 Point Total.
    (1) Fair Housing--1 Point.
    (a) You will receive one Point if your application demonstrates 
that:
    (i) You have made and will make specific efforts to attract 
families from all segments of the population on a non-discriminatory 
basis and with a broad spectrum of incomes to the revitalized site 
through intensive affirmative marketing efforts and how these efforts 
contribute to the deconcentration of low-income neighborhoods;
    (ii) You have made and will make specific efforts to target your 
marketing and outreach activities to those persons and groups least 
likely to know about these housing opportunities, in order to promote 
housing choice and opportunity throughout your jurisdiction and 
contribute to the deconcentration of both minority and low-income 
neighborhoods. In your application, you must describe how

[[Page 26648]]

your outreach and marketing efforts will reach out to persons of 
different races and ethnic groups, families with or without children, 
persons with disabilities and able-bodied persons, and the elderly; and
    (iii) The specific steps you plan to take through your proposed 
activities to affirmatively further fair housing. These steps can 
include, but are not limited to:
    (A) Addressing impediments to fair housing choice relating to your 
operations;
    (B) Working with local jurisdictions to implement their initiatives 
to affirmatively further fair housing;
    (C) Implementing, in accordance with Departmental guidance, 
relocation plans that result in increased housing choice and 
opportunity for residents affected by HOPE VI revitalization activities 
funded under this NOFA;
    (D) Implementing admissions and occupancy policies that are 
nondiscriminatory and help reduce racial and national origin 
concentrations; and
    (E) Initiating other steps to remedy discrimination in housing and 
promote fair housing rights and fair housing choice.
    (b) You will receive 0 Points if you do not address all of the 
above issues, or if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
    c. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3)--2 Points.
    (1) HOPE VI grantees must comply with Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very Low-Income Persons in Connection with assisted 
Projects) and its implementing regulations at 24 CFR part 135. 
Information about Section 3 can be found at HUD's Section 3 Web site at 
http://www.hud.gov/fhe/sec3over.html.
    (2) You will receive 2 Points if your application demonstrates that 
you have a feasible plan to implement Section 3 that not only meets the 
minimum requirements described in Section (1) above but also exceeds 
those requirements. Your plan must include your goals by age group, 
types of jobs, and other opportunities to be provided, and plans for 
tracking and evaluation. Section 3 firms must be in place quickly so 
that residents are trained in time to take advantage of employment 
opportunities such as jobs and other contractual opportunities in the 
pre-development, demolition, and construction phases of the 
revitalization. Your Section 3 plan must demonstrate that you will, to 
the greatest extent feasible, direct training, employment, and other 
economic opportunities to:
    (a) Low- and very low-income persons, particularly those who are 
recipients of government assistance for housing, and
    (b) Business concerns which provide economic opportunities to low- 
and very low-income persons.
    (3) You will receive 0 Points if your plan to implement Section 3 
does not meet the standards listed in Section (1) and (2) above, or if 
your application does not address this factor to an extent that makes 
HUD's rating of this factor possible.
    8. Rating Factor: Well-Functioning Communities--8 Points Total
    a. Affordable Housing--Up to 3 Points
    (1) Housing Definitions. For the purposes of this rating section, 
housing units are defined differently than in PIH housing programs, as 
follows:
    (a) ``project-based affordable housing units'' are defined as on-
site and off-site housing units where there are affordable-housing use 
restrictions on the unit, e.g., public housing, project-based HCV 
(Section 8) units, LIHTC units, HOME units, affordable homeownership 
units, etc.
    (b) ``public housing'' is defined as rental units that will be 
subject to the ACC.
    (2) Unit Mix and Need for Affordable Housing.
    (a) Your proposed unit mix should sustain or create more project-
based affordable housing units that will be available to persons 
eligible for public housing in markets where the plan shows there is 
demand for the maintenance or creation of such units. While it is up to 
you to determine the unit mix that is appropriate for your site, it is 
essential that this unit mix include a sufficient amount of public 
housing rental units and other project-based affordable units. To the 
extent that the local market shows there is a demand for it, applicants 
are encouraged to create additional project-based affordable housing 
units to be made available for persons eligible for public housing.
    (b) For purposes of this factor, HUD will determine whether you 
need project-based affordable housing by using your Housing Choice 
Voucher program utilization rate or public housing occupancy rate, 
whichever of the two reflects the least need. In figuring the Housing 
Choice Voucher utilization rate, determine and provide the percentage 
of HCV units out of the total number authorized or the percentage of 
HCV funds expended out of the total amount authorized, whichever 
percentage is higher. In figuring the public housing occupancy rate, 
provide the percentage of units occupied out of the total in your 
federal public housing inventory, excluding the units in the targeted 
project. You should base your calculation only on the federal public 
housing units you manage. You may not exclude units in your public 
housing inventory that are being reserved for relocation needs related 
to other HOPE VI Revitalization grant(s); or units in your public 
housing inventory that are being held vacant for uses related to a 
Section 504 voluntary compliance agreement. If you are a non-MTW site, 
you must use information consistent with the Section Eight Management 
Assessment Program (SEMAP) and/or the Public Housing Assessment System 
(PHAS) submissions. If you are an MTW site, and do not report into 
SEMAP and/or PHAS, you must demonstrate your utilization and/or 
occupancy rate using similar methods and information sources in order 
to earn points under this rating factor.
    (3) Scoring when there will be No Need for More Affordable Housing 
after the Targeted Project is Demolished--1 Point.
    (a) You will receive 1 Point for this factor if your application 
demonstrates that either:
    (i) The utilization rate of your Housing Choice Voucher program is 
less than 95 percent; or
    (ii) The occupancy rate of your public housing inventory is less 
than 95 percent.
    (iii) If either (a) or (b) above is less than 95 percent, the other 
percentage will be disregarded.
    (4) Scoring when there will be Need for More Affordable Housing 
after the Targeted Project is Demolished--up to 3 Points.
    (a) For this factor, HUD considers you in need of project-based 
affordable housing if both:
    (i) The utilization rate of your Housing Choice Voucher program is 
95 percent or more; and
    (ii) The occupancy rate of your public housing inventory is 95 
percent or more.
    (iii) If either (i) or (ii) above are less than 95 percent, you do 
not need affordable housing. You qualify for (3) above, not this 
section (4).
    (b) The percentages below are defined as the number of planned 
project-based affordable units divided by the number of public housing 
units that the targeted project contains or contained;
    (c) You will receive 3 Points if your application demonstrates that 
the number of project-based affordable units in your plan is 125 
percent or more of

[[Page 26649]]

the number of public housing units that the targeted project contains 
or contained;
    (d) You will receive 2 Points if your application demonstrates that 
the number of project-based affordable units in your plan is 110 to 124 
percent of the number of public housing units that the targeted project 
contains or contained;
    (e) You will receive 1 Point if your application demonstrates that 
the number of project-based affordable units in your plan is 100 to 109 
percent of the number of public housing units that the targeted project 
contains or contained.
    (f) You will receive 0 Points if your application demonstrates that 
the number of project-based affordable units in your plan is less than 
the number of public housing units that the targeted project contains 
or contained or if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
    b. Off-Site Housing--1 Point
    (1) Factor Background
    (a) Although not required, you are encouraged to consider 
development of replacement housing in locations other than the original 
severely distressed site (i.e., off-site housing). Locating off-site 
housing in neighborhoods with low levels of poverty and low 
concentrations of minorities will provide maximized housing 
alternatives for low-income residents who are currently on-site and 
assist the goal of creating desegregated, mixed-income communities. The 
effect on-site will be to assist in the deconcentration of low-income 
residents and increase the number of replacement units.
    (b) Although it is acknowledged that off-site housing is not 
appropriate in some communities, if you do not propose to include off-
site housing in your Revitalization plan, you are not eligible to 
receive this point.
    (c) If you propose an off-site housing component in your 
application, you must be sure to include that component when you 
discuss other components (e.g. on-site housing, homeownership housing, 
etc.). Throughout your application, your unit counts and other 
numerical data must take into account the off-site component.
    (2) Scoring. You will receive 1 Point if you propose to develop an 
off-site housing component(s) and document that: You have site control 
of the property(ies), that the site(s) meets all environmental review 
requirements, and that the site(s) meets site and neighborhood 
standards, in accordance with Section III.C.(1) of this NOFA.
    c. Homeownership Housing--4 Points.
    The Department has placed the highest priority on increasing 
homeownership opportunities for low- and moderate-income persons, 
persons with disabilities, the elderly, minorities, and families where 
English may be a second language. Too often these individuals and 
families are shut out of the housing market through no fault of their 
own. HUD encourages applicants to work aggressively to open up the 
realm of homeownership.
    (1) Your application will receive 4 Points if your application 
demonstrates that your revitalization plan includes homeownership and 
that you have a feasible, well-defined plan for homeownership. In order 
to demonstrate this, your application should include descriptions of 
the following:
    (a) The purpose of your homeownership program;
    (b) The number of units planned and their location(s);
    (c) A description and justification of the families that will be 
targeted for the program;
    (d) The proposed source of your construction and permanent 
financing of the units; and
    (e) A description of the homeownership counseling you or a HUD-
approved housing counseling agency will provide to prospective 
families, including such subjects as the homeownership process, housing 
in non-impacted areas, credit repair, budgeting, and home maintenance.
    (2) You will receive 2 Points for this factor if you address in 
your description from one to four of the items listed under (1).
    (3) You will receive 0 Points for this factor if you do not propose 
to include homeownership units in your Revitalization plan, your 
proposed program is not feasible and well defined, or if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
    9. Rating Factor: Soundness of Approach--30 Points Total
    a. Quality and Consistency of the Application--2 Points.
    (1) The information and strategies described in your application 
must be well organized, coherent, and internally consistent. Numbers 
and statistics in your narratives must be consistent with the 
information provided in the attachments. Also, the physical and CSS 
aspects of the application must be compatible and coordinated with each 
other. Pay particular attention to the data provided for:
    (a) Types and numbers of units;
    (b) Budgets;
    (c) Other financial estimates, including sources and uses; and
    (d) Numbers of residents affected.
    (2) You will receive 2 points if your application demonstrates a 
high level of quality and consistency;
    (3) You will receive 1 point if your application has a high level 
of quality, but contains minor internal discrepancies;
    (4) You will receive 0 points if your application fails to 
demonstrate an acceptable level of quality and consistency;
    b. Appropriateness and Feasibility of the Plan--5 Points
    (1) You will receive 5 points if your application demonstrates the 
following about your revitalization plan:
    (a) It is appropriate and suitable, in the context of the community 
and other revitalization options, in accordance with the 
Appropriateness of Proposal threshold in Section III.C. of this NOFA;
    (b) Fulfills the needs that your application demonstrated for 
Rating Factor 2;
    (c) Is marketable, in the context of local conditions;
    (d) If you include market-rate housing, economic development, or 
retail structures in your revitalization plan, you must provide a 
signed letter from an independent, third party, credentialed market 
research firm, or professional that describes its assessment of the 
demand and associated pricing structure for the proposed residential 
units, economic development or retail structures, based on the market 
and economic conditions of the project area.
    (e) Is financially feasible, as demonstrated in the financial 
structure(s) proposed in the application;
    (f) Does not propose to use public housing funds for non-public 
housing uses;
    (g) If extraordinary site costs have been identified, a 
certification of these costs has been provided in the application;
    (h) Describes the cost controls that will be used in implementing 
the project, in accordance with the Funding Restrictions and Program 
Requirements sections of this NOFA;
    (i) Includes a completed TDC/Grant Limitations Worksheet in the 
application and follows the Funding Restrictions and Program 
Requirements sections of this NOFA.
    (2) You will receive 3 points if your application demonstrates some 
but not all of the criteria above.
    (3) You will receive zero Points if your application does not 
demonstrate the criteria above or your application does not provide 
sufficient information to evaluate this factor.
    c. Neighborhood Impact and Sustainability of the Plan--5 Points.

[[Page 26650]]

    (1) You will receive up to 5 Points if your application 
demonstrates your revitalization plan, including plans for retail, 
office, other economic development activities, as appropriate, will:
    (a) Result in a revitalized site that will enhance the neighborhood 
in which the project is located;
    (b) Spur outside investment into the surrounding community;
    (c) Enhance economic opportunities for residents; and
    (d) Remove an impediment to continued redevelopment or start a 
community-wide revitalization process.
    (2) You will receive up to 3 Points if your application 
demonstrates that your revitalization plan will have only a moderate 
effect on activities in the surrounding community, as described in (a) 
through (d) above.
    (3) You will receive 0 Points if your application does not 
demonstrate that your revitalization plan will have an effect on the 
surrounding community, as described in (a) through (d) above, or if 
your application does not address this factor to an extent that makes 
HUD's rating of this factor possible.
    d. Project Readiness--7 Points.
    HUD places top priority on projects that will be able to commence 
immediately after grant award. You will receive the following points 
for each applicable subfactor certified in your application.
    (1) You will receive 2 Points if the targeted severely distressed 
public housing site is completely vacant, i.e., all residents have been 
relocated.
    (2) You will receive 2 Points if the targeted severely distressed 
public housing site is cleared, i.e., all buildings are demolished, or 
your revitalization plan only includes rehabilitation and no demolition 
of public housing units.
    (3) You will receive 1 Point if a Master Development Agreement 
(MDA) has been developed and is ready to submit to HUD. However, in 
cases where the PHA (not an affiliate/subsidiary/instrumentality) will 
act as its own developer for all components of the revitalization plan, 
then an MDA is not needed and the one point will be awarded 
automatically.
    (4) You will receive 1 Point if your preliminary site design is 
complete.
    (5) You will receive 1 Point if you have held five (5) or more 
public planning sessions leading to resident acceptance of the plan.
    e. Program Schedule. 5 points. You will receive 5 points if the 
program schedule provided in your application incorporates all the 
timelines/milestones discussed below. If your schedule does not 
incorporate all the timelines/milestones, you will earn 0 points. The 
timelines/milestones are:
    (1) Grantees must submit Supplemental Submissions within 90 days 
from the date of HUD's written request.
    (2) Grantees must submit CSS work plans within 90 days from the 
execution of the grant agreement.
    (3) Grantees must start construction within 12 months from the date 
of HUD's approval of the Supplemental Submissions as requested by HUD 
after grant award. This time period may not exceed 18 months from the 
date the grant agreement is executed.
    (4) Grantees must submit the development proposal (i.e., whether 
mixed-finance development, homeownership development, etc.) for the 
first phase of construction within 12 months of grant award. The 
program schedule must indicate the date on which the development 
proposal for each phase of the Revitalization plan will be submitted to 
HUD.
    (5) The closing of the first phase must take place within 15 months 
of grant award. For this purpose, ``closing'' means all financial and 
legal arrangements have been executed and actual activities 
(construction, etc.) are ready to commence.
    (6) Grantees must complete construction within 48 months from the 
date of HUD's approval of your Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the grant 
agreement is executed.
    f. Design--3 Points.
    (1) You will receive up to 3 Points if your proposed site plan, new 
dwelling units, and buildings demonstrate that:
    (a) You have proposed a site plan that is compact, pedestrian-
friendly, with an interconnected network of streets and public open 
space;
    (b) Your proposed housing, community facilities, and economic 
development facilities are thoroughly integrated into the community 
through the use of local architectural tradition, building scale, 
grouping of buildings, and design elements; and
    (c) Your plan proposes appropriate enhancements of the natural 
environment.
    (2) You will receive one Point if your proposed site plan, new 
dwelling units, and buildings demonstrate design that adequately 
addresses one or two, but not all three of the elements in (1) above.
    (3) You will receive 0 Points if your proposed design is 
perfunctory or otherwise does not address the elements in (1) above. 
You will also receive 0 Points if your application does not address 
this factor to an extent that makes HUD's rating of this factor 
possible.
    g. Energy Star--1 Point
    (1) Promotion of Energy Star compliance is a HOPE VI Revitalization 
program requirement. See Section III.C. of this NOFA.
    (2) You will receive 1 Point if your application demonstrates that 
you will:
    (a) Use Energy Star labeled products;
    (b) Promote Energy Star design of replacement units; and
    (c) Include Energy Star in homeownership counseling.
    (3) You will receive 0 Points if your application does not 
demonstrate that you will perform (a) through (c) above.
    h. Evaluation--2 Points.
    You are encouraged to work with your local university(ies), other 
institutions of learning, foundations, or others to evaluate the 
performance and impact of their HOPE VI revitalization plan over the 
life of the grant. The proposed methodology must measure success 
against goals you set at the outset of your revitalization activities. 
Evaluators must establish baselines and provide ongoing interim reports 
that will allow you to make changes as necessary as your project 
proceeds. Where possible, you are encouraged to form partnerships with 
Historically Black Colleges and Universities (HBCUs); Hispanic-Serving 
Institutions (HSIs); Community Outreach Partnership Centers (COPCs); 
the Alaskan Native/Native Hawaiian Institution Assisting Communities 
Program (as appropriate); and others in HUD's University Partnerships 
Program.
    (1) You will receive 2 Points if your application includes a 
letter(s) from an institution(s) of higher learning, foundations, or 
other organization that specializes in research and evaluation that 
provides a commitment to work with you to evaluate your program and 
describes its proposed approach to carry out the evaluation if your 
application is selected for funding. The letter must provide the extent 
of the commitment and involvement, the extent to which you and the 
local institution of higher learning will cooperate, and the proposed 
approach. The commitment letter must address all of the following areas 
for evaluation in order to earn full points:
    (a) The impact of your HOPE VI effort on the lives of the 
residents;
    (b) The nature and extent of economic development generated in the 
community;
    (c) The effect of the revitalization effort on the surrounding 
community, including spillover revitalization activities, property 
values, etc.; and

[[Page 26651]]

    (d) Your success at integrating the physical and CSS aspects of 
your strategy.
    (2) You will receive zero Points if your application does not 
include a commitment letter that addresses each of the areas above 
(paragraphs (a)-(d).
    10. Rating Factor: Incentive Criteria on Regulatory Barrier 
Removal--2 Points Total
    a. Description.
    Applicants must follow the guidance provided in the General Section 
under Section V.B. concerning the Removal of Regulatory Barriers to 
Affordable Housing in order to earn points under this rating factor. 
Information from the General Section V.B. is provided below in part. In 
FY2006, HUD continues to make removal of regulatory barriers a policy 
priority. Through the Department's America's Affordable Communities 
Initiative, HUD is seeking input into how it can work more effectively 
with the public and private sectors to remove regulatory barriers to 
affordable housing. Increasing the affordability of rental and 
homeownership housing continues to be a high priority of the 
Department. Addressing these barriers to housing affordability is a 
necessary component of any overall national housing policy. 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.'' Copies of HUD's notices 
published on this issue can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Form HUD-27300 is 
available at http://www.hudclips.org/sub/nonhud/cgi/pdfforms/27300.pdf.
    b. Scoring.
    (1) Local jurisdictions and counties with land use and building 
regulatory authority applying for funding, as well as housing 
authorities, nonprofit organizations, and other qualified applicants 
applying for funds for projects located in these jurisdictions, are 
invited to answer the 20 questions under Part A.
    (2) State agencies or departments applying for funding, as well as 
housing authorities, nonprofit organizations, and other qualified 
applicants applying for funds for projects located in unincorporated 
areas or areas not otherwise covered in Part A, are invited to answer 
the 15 questions under Part B.
    (3) Applicants that will be providing services in multiple 
jurisdictions may choose to address the questions in either Part A or 
Part B for that jurisdiction in which the preponderance of services 
will be performed if an award is made.
    (4) In no case will an applicant receive more than two points for 
barrier removal activities under this policy priority.
    (5) 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.
    (6) Under Part B, an applicant that scores at least four in Column 
2 will receive one point in the NOFA evaluation. An applicant that 
scores eight or greater will receive a total of two points in the 
respective evaluation.
    (7) 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, Internet 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. Applicants are 
encouraged to read HUD's three notices, which are available at http://www.hud.gov/affordablecommunities, to obtain an understanding of this 
policy priority and how it can affect their score. Applicants that do 
not provide the Internet addresses, references, or documentation will 
not get the policy priority points.

B. Reviews and Selection Process

    HUD's selection process is designed to ensure that grants are 
awarded to eligible PHAs with the most meritorious applications. HUD 
will consider the information you submit by the application submission 
date. After the application submission date, HUD may not, consistent 
with its regulations in 24 CFR part 4, subpart B, consider any 
unsolicited information that you or any third party may want to 
provide.
1. Application Screening
    a. HUD will screen each application to determine if:
    (1) It meets the threshold criteria listed in Section III.C. of 
this NOFA; and
    (2) It is deficient, i.e., contains any Technical Deficiencies.
    b. See Section III.C. of this NOFA for case-by-case information 
regarding thresholds and technical deficiencies. See Section IV.B. of 
this NOFA for documentation requirements that will support threshold 
compliance and will avoid technical deficiencies.
    c. Corrections to Deficient Applications--Cure Period. The 
subsection entitled, ``Corrections to Deficient Applications,'' in 
Section V.B. of the General Section is incorporated by reference and 
applies to this NOFA, except that clarifications or corrections of 
technical deficiencies in accordance with the information provided by 
HUD must be submitted within 7 calendar days of the date of receipt of 
the HUD notification. (If the deadline 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.).
    d. Applications that will not be rated or ranked. HUD will not rate 
or rank applications that are deficient at the end of the cure period 
stated in Section V.B. of the General Section or have not met the 
thresholds described in Section III.C. of this NOFA. Such applications 
will not be eligible for funding.
2. Preliminary Rating and Ranking
    a. Rating.
    (1) HUD staff will preliminarily rate each eligible application, 
SOLELY on the basis of the rating factors described in Section V.A. of 
this NOFA.
    (2) When rating applications, HUD reviewers will not use any 
information included in any HOPE VI application submitted in a prior 
year.
    (3) HUD will assign a preliminary score for each rating factor and 
a preliminary total score for each eligible application.
    (4) The maximum number of points for each application is 125.
    b. Ranking.
    (1) After preliminary review, applications will be ranked in score 
order.
3. Final Panel Review
    a. A Final Review Panel made up of HUD staff will:
    (1) Review the Preliminary Rating and Ranking documentation to:
    (a) Ensure that any inconsistencies between preliminary reviewers 
have been identified and rectified; and
    (b) Ensure that the Preliminary Rating and Ranking documentation 
accurately reflects the contents of the application.
    (2) Assign a final score to each application; and
    (3) Recommend for selection the most highly rated applications, 
subject to the amount of available funding, in accordance with the 
allocation of funds described in Section II of this NOFA.

[[Page 26652]]

    4. HUD reserves the right to make reductions in funding for any 
ineligible items included in an applicant's proposed budget.
    5. In accordance with the FY2006 HOPE VI appropriation, HUD may not 
use HOPE VI funds to grant competitive advantage in awards to settle 
litigation or pay judgments.
6. Tie Scores
    If two or more applications have the same score and there are 
insufficient funds to select all of them, HUD will select for funding 
the application(s) with the highest score for the Soundness of Approach 
Rating Factor. If a tie remains, HUD will select for funding the 
application(s) with the highest score for the Capacity Rating Factor. 
HUD will select further tied applications with the highest score for 
the Need Rating Factor.
7. Remaining Funds
    a. HUD reserves the right to reallocate remaining funds from this 
NOFA to other eligible activities under Section 24 of the 1937 Act.
    (1) If the total amount of funds requested by all applications 
found eligible for funding under Section V.B. of this NOFA is less than 
the amount of funds available from this NOFA, all eligible applications 
will be funded and those funds in excess of the total requested amount 
will be considered remaining funds.
    (2) If the total amount of funds requested by all applications 
found eligible for funding under Section V.B. of this NOFA is greater 
than the amount of funds available from this NOFA, eligible 
applications will be funded until the amount of non-awarded funds is 
less than the amount required to feasibly fund the next eligible 
application. In this case, the funds that have not been awarded will be 
considered remaining funds.
    8. The following sub-sections of Section V. of the General Section 
are hereby incorporated by reference:
    a. HUD's Strategic Goals;
    b. Policy Priorities;
    c. Threshold Compliance;
    d. Corrections to Deficient Applications;
    e. Rating; and
    f. Ranking.

VI. Award Administration Information

A. Award Notices

    1. Initial Announcement. The HUD Reform Act prohibits HUD from 
notifying you as to whether or not you have been selected to receive a 
grant until it has announced all grant recipients. If your application 
has been found to be ineligible or if it did not receive enough Points 
to be funded, you will not be notified until the successful applicants 
have been notified. HUD will provide written notification to all 
applicants, whether or not they have been selected for funding.
    2. Award Letter. The notice of award letter is signed by the 
Assistant Secretary for Public and Indian Housing (grants officer) and 
will be delivered by fax and the U.S. Postal Service.
    3. Revitalization Grant Agreement. When you are selected to receive 
a Revitalization grant, HUD will send you a HOPE VI Revitalization 
grant Agreement, which constitutes the contract between you and HUD to 
carry out and fund public housing revitalization activities. Both you 
and HUD will sign the cover sheet of the grant agreement, form HUD-
1044. It is effective on the date of HUD's signature, which is the 
second signature. The grant agreement differs from year to year. Past 
Revitalization grant Agreements can be found on the HOPE VI Web site at 
http://www.hud.gov/hopevi.
    4. Applicant Debriefing. Upon request, HUD will provide an 
applicant a copy of the total score received by their application and 
the score received for each rating factor.
    5. General Section References. The following sub-section of Section 
VI.A. of the General Section is hereby incorporated by reference:
    a. Adjustments to Funding.
    b. Administrative and National Policy Requirements
    1. Program Requirements. See the Program Requirements in Section 
III for information on HOPE VI program requirements grantees must 
follow.
    2. Conflict of Interest in Grant Activities.
    a. Prohibition. In addition to the conflict of interest 
requirements in 24 CFR part 85, no person who is an employee, agent, 
consultant, officer, or elected or appointed official of a grantee and 
who exercises or has exercised any functions or responsibilities with 
respect to activities assisted under a HOPE VI grant, or who is in a 
position to participate in a decision-making process or gain inside 
information with regard to such activities, may obtain a financial 
interest or benefit from the activity, or have an interest in any 
contract, subcontract, or agreement with respect thereto, or the 
proceeds thereunder, either for himself or herself or for those with 
whom he or she has family or business ties, during his or her tenure or 
for one year thereafter.
    b. HUD-Approved Exception.
    (1) Standard. HUD may grant an exception to the prohibition above 
on a case-by-case basis when it determines that such an exception will 
serve to further the purposes of HOPE VI and its effective and 
efficient administration.
    (2) Procedure. HUD will consider granting an exception only after 
the grantee has provided a disclosure of the nature of the conflict, 
accompanied by:
    (a) An assurance that there has been public disclosure of the 
conflict;
    (b) A description of how the public disclosure was made; and
    (c) An opinion of the grantee's attorney that the interest for 
which the exception is sought does not violate state or local laws.
    (d) Consideration of Relevant Factors. In determining whether to 
grant a requested exception under Section (b) above, HUD will consider 
the cumulative effect of the following factors, where applicable:
    (A) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the Revitalization plan and 
demolition activities that would otherwise not be available;
    (B) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (C) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the Revitalization plan and 
Demolition plan and the exception will permit such person to receive 
generally the same interests or benefits as are being made available or 
provided to the group or class;
    (D) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decision making process, with 
respect to the specific activity in question;
    (E) Whether the interest or benefit was present before the affected 
person was in a position as described in Section (C) above;
    (F) Whether undue hardship will result either to the grantee or the 
person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (G) Any other relevant considerations.
    3. Salary Limitation for Consultants. FY 2006 funds may not be used 
to pay or to provide reimbursement for payment of the salary of a 
consultant whether retained by the Federal government or the grantee at 
more than the daily equivalent of the rate of the high of the pay band 
paid for level IV of the Executive Schedule, unless specifically 
authorized by law.
    4. Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), your application may not 
propose to provide financial assistance for acquisition or

[[Page 26653]]

construction (including rehabilitation) of properties located in an 
area identified by the Federal Emergency Management Agency (FEMA) as 
having special flood hazards, unless:
    a. The community in which the area is situated is participating in 
the National Flood Insurance Program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a grant agreement.
    5. Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), your application may not target 
properties in the Coastal Barrier Resources System.
    6. Policy Requirements.
    a. OMB Circulars and Administrative Requirements. You must comply 
with the following administrative requirements related to the 
expenditure of federal funds. OMB circulars can be found at http://www.whitehouse.gov/omb/circulars/index.html. Copies of the OMB 
circulars may be obtained from EOP Publications, Room 2200, New 
Executive Office Building, Washington, DC 20503; telephone (202) 395-
7332 (this is not a toll-free number). The Code of Federal Regulations 
can be found at http://www.access.gpo.gov/nara/cfr/index.html.
    (1) Administrative requirements applicable to PHAs are:
    (a) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments), as modified by 24 CFR 941 or successor part, 
subpart F, relating to the procurement of partners in mixed finance 
developments.
    (b) OMB Circular A-87 (Cost Principles for State, Local, and Indian 
Tribal Governments);
    (c) 24 CFR 85.26 (audit requirements).
    (2) Administrative requirements applicable to nonprofit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Nonprofit Organizations);
    (b) OMB Circular A-122 (Cost Principles for Nonprofit 
Organizations);
    (c) 24 CFR 84.26 (audit requirements).
    (3) Administrative requirements applicable to for profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Nonprofit Organizations);
    (b) 48 CFR part 31 (contract cost principles and procedures);
    (c) 24 CFR 84.26 (audit requirements).

C. Reporting

1. Quarterly Report
    a. If you are selected for funding, you must submit a quarterly 
report to HUD.
    (1) HUD will provide training and technical assistance on the 
filing and submitting of quarterly reports.
    (2) Filing of quarterly reports is mandatory for all grantees, and 
failure to do so within the required timeframe will result in 
suspension of grant funds until the report is filed and approved by 
HUD.
    (3) Grantees will be held to the milestones that are reported on 
the Quarterly Report Administrative and Compliance Checkpoints Report, 
as approved by HUD.
    (4) Grantees must also report obligations and expenditures in 
LOCCS, or its successor system, on a quarterly basis.
2. Logic Model Reporting
    a. The reporting shall include submission of a completed Logic 
Model indicating results achieved against the proposed output goal(s) 
and proposed outcome(s) which you stated in your approved application 
and agreed upon with HUD. The submission of the Logic Model and 
required information should be in accord with the reporting timeframes 
as identified in your grant agreement.
    b. The goals and outcomes that you include in the Logic Model 
should reflect your major activities and accomplishments under the 
grant. For example, you would include unit construction, demolition, 
etc. from the ``bricks-and-mortar'' portion of the grant. As another 
example, for the CSS portion of the grant, you may include the number 
of jobs created or the number of families that have reached self-
sufficiency, but you would not include information on specific job 
training and self-sufficiency courses.
    c. As a condition of the receipt of financial assistance under this 
NOFA, all successful applicants will be required to cooperate with all 
HUD staff or contractors performing HUD-funded research and evaluation 
studies.
3. Final Report
    a. The grantees shall submit a final report, which will include a 
financial report and a narrative evaluating overall performance against 
its HOPE VI Revitalization plan. Grantees shall use quantifiable data 
to measure performance against goals and objectives outlined in its 
application. The financial report shall contain a summary of all 
expenditures made from the beginning of the grant agreement to the end 
of the grant agreement and shall include any unexpended balances.
    b. Racial and Ethnic Data. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. It has adopted the Office 
of Management and Budget's Standards for the Collection of Racial and 
Ethnic Data. In view of these requirements, you should use form HUD-
27061, Racial and Ethnic Data Reporting Form (instructions for its 
use), found on http://www.HUDClips.org, a comparable program form, or a 
comparable electronic data system for this purpose.
    c. The final narrative and financial report shall be due to HUD 90 
days after either the full expenditure of funds, or when the grant term 
expires, whichever comes first.

VII. Agency Contacts

A. Technical Assistance

    1. Before the application submission date, HUD staff will be 
available to provide you with general guidance and technical 
assistance. However, HUD staff is not permitted to assist in preparing 
your application. If you have a question or need a clarification, you 
may call or send an email message to the Office of Public Housing 
Investments, attention: Leigh van Rij, at 202-401-8812, extension 5788, 
<[email protected]> (these are not toll-free numbers). You 
may also call, fax, or write Ms. Dominique Blom, Acting Deputy 
Assistant Secretary for Public Housing Investments, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4130, 
Washington, DC 20410-5000; telephone (202) 401-8812; fax (202) 401-2370 
(these are not toll-free numbers). Persons with hearing or speech 
challenges may access these telephone numbers through a text telephone 
(TTY) by calling the toll-free Federal Information Relay Service at 
(800) 877-8339.
    2. Frequently Asked Questions and General HOPE VI Information. 
Before the application submission date, frequently asked questions 
(FAQ) on the NOFA will be posted to HUD's grants Web site at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    3. You may obtain general information about HUD's HOPE VI programs 
from HUD's HOPE VI Web site: http://www.hud.gov/offices/pih/programs/ph/hope6/.

B. Technical Corrections to the NOFA

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

[[Page 26654]]

    2. Any technical corrections will also be published in the Federal 
Register.
    3. You are responsible for monitoring these sites during the 
application preparation period.

VIII. Other Information

    A. Waivers. Any HOPE VI-funded activities at public housing 
projects are subject to statutory requirements applicable to public 
housing projects under the 1937 Act, other statutes, and the annual 
contributions contract (ACC). Within such restrictions, HUD seeks 
innovative solutions to the long-standing problems of severely 
distressed public housing projects. You may request, for the 
revitalized project, a waiver of HUD regulations, subject to statutory 
limitations and a finding of good cause under 24 CFR 5.110 if the 
waiver will permit you to undertake measures that enhance the long-term 
viability of a project revitalized under this program. HUD will assess 
each request to determine whether good cause is established to grant 
the waiver.
    B. Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made for this notice in accordance 
with HUD regulations at 24 CFR part 50 that implement Section 102(2)(C) 
of the National Environmental Policy Act of 1969 (42 U.S.C. 4332). The 
Finding of No Significant Impact is available for public inspection 
between 8 a.m. and 5 p.m. in the Office of the General Counsel, 
Regulations Division, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-0500.
    C. General Section References. The following sub-sections of 
Section VIII. of the General Section are hereby incorporated by 
reference:
    1. Executive Order 13132, Federalism;
    2. Public Access, Documentation and Disclosure;
    4. Section 103 of the HUD Reform Act;
    5. The FY 2004 HUD NOFA Process and Future HUD Funding Processes; 
and
    6. Sense of Congress.
    D. Paperwork Reduction Act Statement. The information collection 
requirements contained in this document have been approved by the 
Office of Management and Budget (OMB), under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2577-
0208. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor, and 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 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.

Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. HOPE VI Main Street Grants.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-5059-N-01. The Office of Management and Budget (OMB) 
paperwork approval number for this program is 2577-0208.
    E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for this NOFA is 14-866, ``Demolition and Revitalization of 
Severely Distressed Affordable Housing (HOPE VI).''
    F. Dates.
    1. Application Submission Date. The application deadline date is 
July 11, 2006. Applications must be received and validated Grants.gov 
by 11:59:59 p.m. on the application deadline date. See the General 
Section for application submission and timely receipt requirements.
    2. Estimated Grant Award Date. The estimated award date will be 
approximately September 15, 2006.
    G. Electronic Application Submission. Applications for this NOFA 
must be submitted electronically through http://www.grants.gov. The 
applicant must be fully registered completing the five step 
registration process for new applicants or if you have previously 
submitted an application for assistance with Grants.gov, ensuring that 
the registration in the Central Contractor Registry is updated. See 
HUD's Federal Register Notice published on December 9, 2005 entitled 
``Notice of Opportunity to Register Early for Electronic Submission of 
Grant and HUD's registration brochure entitled ``Step By Step: Your 
Guide to Registering for Grant Opportunities, Information for 
Applicants and Grantees. Submission validation by grants.gov may take 
24-48 hours so when submitting your application please take these time 
frames into account. HUD recommends early submission so that if your 
application is rejected you will have to make the correction and 
resubmit prior to the deadline date. See ``Other Submission 
Requirements,'' Section IV.F. of this NOFA and the General Section, and 
http://www.grants.gov/GetStarted.

Full Text of Announcement

I. Funding Opportunity Description

    A. Available Funds. This NOFA announces the availability of 
approximately $2.5 million in Fiscal Year (FY) 2005 funds and 
approximately $2.5 million in FY 2006 funds.
    B. Purpose of the Program. The purpose of the HOPE VI Main Street 
program is to provide grants to small communities to assist in the 
rehabilitation and new construction of affordable housing in 
conjunction with an existing program to revitalize an historic or 
traditional central business district or ``Main Street Area.'' The 
objectives of the program are to:
    1. Redevelop Main Street Areas;
    2. Preserve historic or traditional architecture or design features 
in Main Street Areas;
    3. Enhance economic development efforts in Main Street Areas; and
    4. Provide affordable housing in Main Street Areas.
    C. Statutory Authority.
    1. The program authority for the HOPE VI Main Street program is 
Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), 
as amended by Section 535 of the Quality Housing and Work 
Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 2461, approved 
October 21, 1998), as amended, and the HOPE VI Program Reauthorization 
and Small Community Mainstreet Rejuvenation and Housing Act of 2003 
(Pub. L. 108-186, 117 Stat. 2685, approved December 16, 2003).
    2. The funding authority for the HOPE VI Main Street program is 
provided by the Consolidated Appropriations Act, 2005 (Pub. L 108-447, 
approved December 8, 2005), under Title II, Public and Indian Housing, 
Revitalization of Severely Distressed Public Housing (Hope VI), and the 
Transportation, Treasury, Housing and Urban Development, the Judiciary, 
the District of Columbia, and Independent Agencies Appropriations Act, 
2006 (Pub. L. 109-115, approved November 30, 2005), under 
Revitalization of Severely Distressed Public Housing (HOPE VI).
    3. The HOPE VI Program Reauthorization and Small Community 
Mainstreet Rejuvenation and Housing

[[Page 26655]]

Act of 2003 states that, of the amount appropriated for the overall 
HOPE VI program for any fiscal year, the Secretary shall provide up to 
five percent for use only for the Main Street initiative. The statute 
amended Section 24(n) of the Act, which now provides for grants to 
smaller communities, to provide assistance to carry out eligible 
affordable housing activities.
    D. Definition of Terms
    1. Affordable Housing means rental or homeownership dwelling units 
that:
    a. Are made available for initial occupancy to low-income families, 
with a subset of units made available to very low- and extremely low-
income families; and
    b. Are subject to the same rules regarding occupant contribution 
toward rent or purchase, and terms of rental or purchase, as are public 
housing units in a HOPE VI development. Public housing rights and 
responsibilities vary among HOPE VI developments. HOPE VI public 
housing units use various mechanisms to set the resident portion of 
rent, resident job training or employment requirements, resident rights 
of return, and other occupancy issues.
    2. Applicant Team (``Team'') means the group of entities that will 
develop the Project. The Team includes the unit of local government 
that submits the application and, where applicable, the procured 
developer, the procured property manager, architects (including 
architects who are knowledgeable about universal design and Section 504 
accessible design requirements), construction contractors, attorneys, 
investment partners that comprise an owner entity, and other parties 
that may be involved in the development and management of the Project.
    3. Community and Supportive Services (``CSS'') means services to 
residents of the Project that may include, but are not limited to:
    a. Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed;
    b. Educational, life skills, job readiness and retention, 
employment training, and other activities as described on HUD's HOPE VI 
Web site at http://www.hud.gov/offices/pih/programs/ph/hope6/css/; and
    c. Coordinating with fair housing groups to educate the Main Street 
Affordable Housing Project's targeted population on its fair housing 
rights.
    4. Firmly Committed means that the amount of Match or Leverage 
resources, and their dedication to HOPE VI Main Street activities must 
be explicit, in writing, and signed by a person authorized to make the 
commitment.
    5. General Section means the Notice of HUD's Fiscal Year 2006 
Notice of Funding Availability Policy Requirements and General Section 
to the SuperNOFA for HUD's Discretionary Programs; Notice, Docket No. 
FR-FR-5030-N-01, published in the Federal Register on January 20, 2006.
    6. Homeownership Unit means a housing unit that the Local 
Government makes available through a grant from this NOFA for purchase 
by low-income families for use as their principal residence;
    7. Initial Occupancy Period means the period of time that a rental 
unit is occupied by the initial low-income resident or the period of 
time that a homeownership unit is owned by the initial third-party, 
low-income purchaser. There is no set requirement for the length of 
this occupancy period.
    8. Jurisdiction means the physical area under the supervision of 
the Local Government.
    9. Leverage means non-HOPE VI funded donations of cash and in-kind 
services that are firmly committed to the development of the Main 
Street Affordable Housing Project (called Main Street Affordable 
Housing Project Leverage) or to the Main Street Area as a whole (called 
Main Street Area Leverage).
    a. Leverage may include funds/in-kind services that are already 
expended, received but not expended, and firmly committed but not yet 
received.
    b. Types of resources that may be counted include:
    (1) Private mortgage-secured loans, Insured loans, and other debt;
    (2) Housing trust funds;
    (3) Net sales proceeds from a homeownership project that exceed the 
amount of HOPE VI funds used to develop the homeownership unit;
    (4) Tax Increment Financing (TIF);
    (5) Proceeds from Low-Income Housing Tax Credits (LIHTC), Historic 
Preservation Tax Credits, and Tax Exempt Bonds;
    (6) Land Sale Proceeds. The value of land sale proceeds may be 
included as leverage only if this value is a sales proceed. Absent a 
sales transaction, the value of land will not be counted;
    (7) Other Federal Funds. Other federal sources may include non-
public housing funds provided by HUD;
    (8) In-Kind Services, including donations of:
    (a) Property such as land (donations of land may be counted as 
leverage only if the donating entity owns the land to be donated), 
materials, supplies, a building, a lease on a building, and other 
infrastructure;
    (b) Services such as Homeownership Counseling, other CSS and FSS 
resources (see ``Definitions,'' Section I.D. of this NOFA for the 
definition of CSS), and time and services contributed by volunteers.
    c. Leverage does NOT include, and HUD will not count:
    (1) Staff time of either the Local Government applicant or the 
recognized developer entity; and
    (2) Wages projected to be paid to residents through jobs that are 
provided by CSS partners.
    10. Local Government means any city, county/parish, town, township, 
parish, village, or other general purpose political subdivision of a 
state; Guam, the Northern Mariana Islands, the Virgin Islands, American 
Samoa, the District of Columbia and the Trust Territory of the Pacific 
Islands, or a general purpose political subdivision thereof; a 
combination of such political subdivisions that is recognized by the 
Secretary.
    11. Low-Income means a family (resident) with an income equal to or 
less than 80 percent of median income for the local area, adjusted for 
family size, in accordance with Section 3(b)(2) of the United States 
Housing Act of 1937, as amended. HUD may establish a level higher or 
lower than 80 percent because of prevailing construction costs or 
unusually high or low family incomes in the area. HUD prescribed income 
limits are stated at http://www.huduser.org/datasets/il/IL05/Section8_IncomeLimits_2005.doc. Local area is defined as the non-metropolitan 
county/parish or Primary Metropolitan Statistical Area/Metropolitan 
Statistical Area (PMSA/MSA) or county/parish, as prescribed by HUD, in 
which the low-income family resides.
    12. Main Street Area means an area designated by the applicant, 
that:
    a. Is within the jurisdiction of the applicant;
    b. Has specific boundaries;
    c. Is or was:
    (1) Traditionally the central business district and center for 
socio-economic interaction;
    (2) Characterized by a cohesive core of historic and/or older 
commercial and mixed-use buildings, often interspersed with civic, 
religious, and residential buildings, which represent the community's 
architectural heritage;
    (3) Typically arranged along a main street with intersecting side 
streets and public space; and
    (4) Pedestrian-oriented.
    13. Main Street Affordable Housing Project (``Project'') is defined 
in

[[Page 26656]]

``Program Requirements,'' Section III.C. of this NOFA.
    14. Main Street Rejuvenation Master Plan (``Main Street Plan'') is 
a document, or group of documents, that serves to guide the 
rejuvenation of a Main Street Area. It may be a formal, detailed 
declaration of intent, or an informal collection of records from 
various City, Chamber of Commerce, Main Street organization meetings, 
and portions of the applicant's city-wide Master Plan, that describes 
and demonstrates the Main Street rejuvenation effort's components, such 
as:
    a. Design, promotion, and economic impact;
    b. Broad community support;
    c. Investment by both the public and private sectors;
    d. Long-term planning and commitment by a local organization;
    e. Active administration and implementation by the applicant, or by 
a locally recognized Main Street rejuvenation organization; and
    f. Strong preservation element for historic or traditional 
architecture.
    g. Main Street Plan documentation must comply with the minimum 
requirements stated in ``Program Requirements,'' Section III.C. of this 
NOFA.
    15. Match is cash or in-kind donations that:
    a. Total at least five percent of the requested HOPE VI Main Street 
grant amount; and
    b. Are from government or private-sector sources other than HOPE VI 
funding, including Community Development Block Grant Funds, which by 
statute are considered local money.
    16. Owner entity is the legal entity that holds title to the real 
property that contains any affordable housing units developed through 
this NOFA.
    17. 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.
    d. The term ``person with disabilities'' may include persons who 
have acquired immunodeficiency syndrome (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, based solely on any drug or alcohol 
dependence.
    e. 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 reasonable accommodations.
    18. Program means the HOPE VI Main Street Program.
    19. Recognized Developer means the Local Government applicant or a 
legal entity that has an agreement with the Local Government applicant 
to seek financing for, rehabilitate and/or construct housing units, and 
to provide Community and Supportive Services (if required), for a HOPE 
VI Main Street grantee.
    a. For a non-complex development, the applicant may choose not to 
use a developer, and instead directly procure a design/build 
construction contractor and accountant.
    20. Site Control means the Local Government applicant, or its 
developer, has the legal authority to commit the owner of the property 
to the rehabilitation to be performed with HOPE VI Main Street grant 
funds. Some examples of site control are:
    a. The local government owns the property outright;
    b. The private owner of the property and the applicant have signed 
a developer agreement and the private owner is the developer;
    c. The government-or private-owner has signed a developer agreement 
with a separate developer and the agreement gives the developer 
control;
    d. The applicant or developer has an option to purchase the 
property that covers a time period sufficient to obtain grant funds for 
purchase (at least 180 days after award), and is contingent only upon: 
(1) Receipt of a grant from this NOFA; and (2) satisfactory compliance 
with this NOFA's environmental review requirements;
    e. An owner-entity partnership was formed between the original 
owner and the applicant or the developer (or both) and possibly a 
third-party investor (Tax Credits) and the developer is the General 
Partner; etc.
    21. Unit of Local Government: See ``Local Government'' under this 
section.
    22. Very Low-Income Family means a family (resident) with an income 
equal to or less than 50 percent of median income for the local area, 
adjusted for family size, in accordance with Section 3(b)(2) of the 
United States Housing Act of 1937, as amended. HUD may establish a 
level higher or lower than 50 percent because of prevailing 
construction costs or unusually high or low family incomes in the area. 
HUD prescribed income limits are stated at http://www.huduser.org/datasets/il/IL05/Section8_IncomeLimits_2005.doc. Local area is 
defined as the PMSA/MSA or nonmetropolitan county/parish, as prescribed 
by HUD, in which the low-income family resides.
    E. General Section Reference. The subsection entitled ``Funding 
Opportunity Description'' in Section I. of the General Section is 
hereby incorporated by reference.

II. Award Information

    A. Available Funds. A total of $5 million is available for funding. 
$2.5 million is appropriated for FY 2005 and must be obligated before 
September 30, 2006; $2.5 million is appropriated for FY 2006 and must 
be obligated before September 30, 2007.
    B. Number of Awards. This NOFA will result in approximately 10 
awards.
    C. Range of Amounts of Each Award. Each applicant may request up to 
$500,000.
    D. Start Date, Period of Performance. The term of the grants that 
result from this NOFA will start on the date that the grant award 
document is signed by HUD and will continue for 30 months thereafter.
    E. Type of Instrument. Grant Agreement.
    F. Supplementation. Grants resulting from this NOFA do not 
supplement other HOPE VI grants.

III. Eligibility Information

    A. Eligible Applicants. Eligible applicants include, and are 
limited to, Local Governments, as defined in Section I.D. of this NOFA 
and Section 102 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5302). The Local Government must:
    1. Have an active Main Street rejuvenation effort within its 
jurisdiction;
    2. Have a population of 50,000 or fewer; and
    3. Not be served by a Local Government, county/parish, regional or 
state public housing agency (PHA) that administers more than 100 public 
housing units, provided that more than 100 of those units are within 
the Local Government applicant's jurisdiction. For example, if a Local 
Government is served by a county PHA that administers 180 public 
housing units

[[Page 26657]]

(excluding Section 8), and 90 of those units are located within the 
jurisdiction of the Local Government, then the Local Government is 
eligible to apply. On the other hand, if a Local Government is served 
by a county PHA that administers 180 public housing units (excluding 
Section 8), and 103 of those units are located within the jurisdiction 
of the Local Government, then the Local Government is NOT eligible to 
apply.
    B. Cost Sharing or Match.
    1. Match. HUD is required by the Quality Housing and Work 
Responsibility Act (42 U.S.C. 1437v(c)(1)(A)) to include the 
requirement for matching funds for all HOPE VI-related grants. 
Applicants must provide matching funds in the amount of five percent of 
the requested grant amount from sources other than HUD HOPE VI funds. 
Match sources may include other federal sources, Community Development 
Block Grant (CDBG) funds (which are statutorily considered local 
funds), any state or local government sources, any private 
contributions, the value of any donated material or building, the value 
of any lease on a building, the value of the time and services 
contributed by volunteers, and the value of any other in-kind services 
provided. The match may include funds already spent on, or funds 
committed to, the Main Street Affordable Housing Project, provided that 
they were or shall be used only for carrying out eligible affordable 
housing activities.
    a. Match donations must be firmly committed. ``Firmly committed'' 
means that the amount of match resources and their dedication to Main 
Street-related affordable housing activities must be explicit, in 
writing, and signed by a person authorized to make the commitment. The 
commitment must be in place at the time of award.
    b. The applicant may propose to use the applicant's own funds to 
meet the match requirement, provided that the match funds do not 
originate from HOPE VI funds.
    c. The applicant's staff time is not an eligible cash or in-kind 
match.
    d. See Section IV.B. of this NOFA for the requirements for 
documentation of match resources.
    C. Other.
    1. Eligible Uses of Grant Funds. Main Street grant funds may be 
expended on the following activities:
    a. New construction and rehabilitation of Main Street-related 
affordable rental and homeownership housing. New construction and 
rehabilitation activities that are intrinsic to the development of the 
affordable housing units may extend to other portions of the Main 
Street Affordable Housing Project, e.g., to the building envelop, to 
interior bearing walls of commercial space located below the affordable 
housing units, and to systems installation through commercial space 
located below or adjacent to the affordable housing units;
    b. Architectural and Engineering activities, surveys, permits, and 
other planning and implementation costs related to the construction and 
rehabilitation of Main Street-related affordable housing;
    c. Tax credit syndication costs;
    d. Funding of moving expenses for low-income residents displaced as 
a result of construction or rehabilitation of the Project, in 
accordance with the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA) and Handbook CPD 02-08, Guidance 
on the Application of the Uniform Relocation Assurance and Real 
Property Acquisition Policies Act of 1970 (URA), as amended in HOPE VI 
Projects;
    e. Management improvements necessary for the proper development and 
management of Main Street-related affordable housing, similar to and 
including, but not limited to:
    (1) Staff training (including travel) related to affordable housing 
development and management and public housing property management;
    (2) Staff time and materials or contractor services to revise or 
develop:
    (a) Procedure manuals;
    (b) Accounting systems, excluding accounting services;
    (c) Lease documents;
    (d) Resident screening procedures; and
    (e) Data processing systems.
    f. Leveraging non-HOPE VI funds and in-kind services. See the 
definition of ``Leverage'' in Section I.D. of this NOFA.;
    g. Community and Supportive Services. See Funding Restrictions in 
Section IV.E. of this NOFA.
    h. See ``Funding Restrictions,'' Section IV.E. of this NOFA, for 
non-allowable costs and activities.
    2. Thresholds.
    a. Match. Applicants must provide matching funds in the amount of 
five percent of the requested grant amount from sources other than HUD 
HOPE VI funds. See, ``Cost Sharing or Match,'' Section III.B. of this 
NOFA. If the applicant does not demonstrate that there will be matching 
funds of at least five percent (5%) of the requested grant amount, the 
application will not be eligible for funding through this NOFA.
    b. Main Street Area. The applicant must have within its 
jurisdiction a Main Street Area. See Section I.D. of this NOFA for the 
definition of a Main Street Area. If the applicant's jurisdiction does 
not have a Main Street Area, the application will not be eligible for 
funding through this NOFA.
    c. Prior Existence of Main Street Rejuvenation Master Plan. The 
Main Street Plan must have been in existence prior to the publication 
date of this NOFA, that is, the Main Street Plan must demonstrate that, 
prior to this date, written documentation existed that fulfilled the 
definition of a Main Street Plan as defined in Section I.D. of this 
NOFA. If the applicant's Main Street Rejuvenation Master Plan was not 
in existence before the publication date of this NOFA, the application 
will not be eligible for funding through this NOFA.
    d. Main Street Affordable Housing Project (``Project''). The 
targeted affordable housing project must conform to this NOFA's 
requirements for a Main Street Affordable Housing Project, as defined 
in ``Program Requirements,'' Section III.C. of this NOFA. If the 
targeted affordable housing project does not conform to this NOFA's 
requirements of a project, the application will not be eligible for 
funding through this NOFA.
    e. Inclusion of Affordable Housing. Affordable housing must have 
been included in the applicant's Main Street Plan on or before the 
application deadline date for this NOFA. If affordable housing was not 
included in the applicant's Main Street Plan on or before the 
application deadline date for this NOFA, the application will not be 
eligible for funding through this NOFA.
    f. Zoning. Zoning for residential housing, or mixed-use zoning that 
includes residential housing, must be in place on all project sites on 
or before the application deadline date. If zoning for residential 
housing, or mixed-use zoning that includes residential housing, is not 
in place on all project sites on or before the application deadline 
date, the application will not be eligible for funding through this 
NOFA.
    g. Leverage for the Main Street Rejuvenation Effort. The applicant 
must provide leverage funds/in-kind services that are firmly committed 
to the Main Street rejuvenation effort that is described in the Main 
Street Rejuvenation Master Plan. According to the authorizing statute, 
the targeted housing project must be part of an existing Main Street 
rejuvenation effort. Existence of Main Street leverage donations that 
are not connected to the targeted housing project helps to demonstrate 
that there is a wider-scaler rejuvenation effort in progress. These

[[Page 26658]]

leverage funds/in-kind services must be from sources other than HUD 
HOPE VI funds, and the amount must be in excess of 50 percent of the 
requested grant amount.
    (1) As explained in the above section, leverage for this threshold 
does not include, and HUD will not count, funds/in-kind services that 
are limited to use in the development of the affordable housing project 
that the applicant has targeted for this NOFA.
    (2) See rejuvenation effort leverage documentation requirements for 
form HUD-52861, ``HOPE VI Main Street Application Data Sheet,'' 
attached to this NOFA.
    (3) If the applicant provides Main Street Area rejuvenation effort 
leverage funds/in-kind services of an amount less than 50 percent of 
the requested grant amount, the application will not be eligible for 
funding through this NOFA.
    h. One Main Street Area. The applicant must only apply for 
assistance in support of one Main Street Area under this NOFA, that is, 
if the Local Government's jurisdiction includes two neighborhoods, each 
with a traditional commercial/social center, the application must 
contain only one of those traditional commercial/social centers. 
However, the applicant's Main Street Affordable Housing Project may 
consist of several scattered sites within that one Main Street Area. If 
the applicant applies for assistance for more than one Main Street Area 
through this NOFA, the application will not be eligible for funding 
through this NOFA.
    i. Code of Conduct.
    (1) The applicant must have developed and must maintain a written 
code of conduct (see 24 CFR 84.42 and 85.36(b)(3)). The applicant must 
provide, or have provided, documentation that demonstrates that it has 
a written code of conduct.
    (2) If the applicant does not provide a copy of the code of 
conduct, and its implementation methodology, in the application, or is 
not listed by HUD as having already submitted such documentation, the 
application will not be eligible for funding through this NOFA.
    (3) See ``Threshold Documentation,'' Section IV.B. of this NOFA, 
and Section III.C. of the General Section.
    j. The following sub-sections of Section III of the General Section 
are hereby incorporated by reference. The applicant must comply with 
each of the incorporated threshold requirements in order to be eligible 
for funding, including:
    (1) Ineligible Applicants;
    (2) Dun and Bradstreet Data Universal Numbering System (DUNS) 
Number Requirement;
    (3) Compliance with Fair Housing and Civil Rights Laws;
    (4) Conducting Business In Accordance with Core Values and Ethical 
Standards;
    (5) Delinquent Federal Debts;
    (6) Pre-Award Accounting System Surveys;
    (7) Name Check Review;
    (8) False Statements;
    (9) Prohibition Against Lobbying Activities; and
    (10) Debarment and Suspension.
    3. Certification of Certain Thresholds.
    a. Certification by Application. The SF-424, ``Application for 
Federal Assistance,'' is the cover sheet to the application. By 
manually or electronically signing the SF-424, the applicant certifies 
that the following thresholds have been met:
    (1) All Match resources included in the application are ``firmly 
committed.'' See the definition of ``firmly committed'' in Section I.D. 
of this NOFA;
    (2) The Main Street Rejuvenation Master Plan that is included as 
part of this application existed prior to the publication date of this 
NOFA;
    (3) The Main Street Plan contained affordable housing prior to the 
application deadline date of this NOFA;
    (4) All project sites have zoning that allows for residential 
development;
    (5) All leverage resources included in the application are ``firmly 
committed.'' See the definition of ``firmly committed'' in Section I.D. 
of this NOFA;
    (6) Historic preservation requirements in Section 106 of the 
National Historic Preservation Act of 1966 (NHPA) will be fulfilled, 
where applicable.
    (7) Environmental requirements stated in the NOFA will be 
fulfilled;
    (8) Building standards stated in the NOFA will be fulfilled; and
    (9) Relocation requirements under the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 (URA) will be 
fulfilled; and
    (10) Fair Housing, Civil Rights, and Section 3 requirements will be 
followed and fulfilled.
    b. Information for the Applicant's Certifying Official.
    (1) Application documentation that is included for the sole purpose 
of supporting certified thresholds is not necessary, and will not 
improve the applicant's chances of receiving a grant through this NOFA.
    (2) Because of other NOFA requirements, the applicant may already 
have included documentation in the application that happens to also 
support a certified threshold. For example, the applicant includes the 
Main Street Plan to respond to the Rating Factors. It also contains 
documentation that is related to several thresholds.
    (3) For the benefit of the applicant's certifying official, this 
information will help prevent accidental misrepresentation by providing 
evidence that these thresholds have been met. For the applicant 
certifying official's further benefit, viewing of documents similar to 
the following may help prevent accidental misrepresentation of 
certifications for thresholds with no related application 
documentation:
    (a) Main Street Plan Existence. Any document dated prior to the 
publication of this NOFA that demonstrates the applicant intended to 
rejuvenate a Main Street Area, or the applicant acknowledged that a 
local Main Street organization intended to rejuvenate a Main Street 
Area;
    (b) Inclusion of Affordable Housing. Documentation in the Main 
Street Plan that demonstrates that the concept of including development 
of affordable housing in the Main Street commercial area is included in 
the rejuvenation strategy;
    (c) Zoning. Zoning approvals or a certification from the 
appropriate local official documenting that all required zoning 
approvals have been secured; and
    (d) Main Street Area Leverage. Main Street Area leverage may 
include, but is not limited to, any public or private sector salaries 
paid for Main Street related services or physical improvements made to 
the Main Street Area, such as the cost of developing a Main Street 
Plan, salaries of people promoting the Main Street Plan, building 
construction or rehabilitation, site or infrastructure improvements, 
etc. Documentation of these expenditures may include, but is not 
limited to: Tax returns, typical accounting ledgers kept by the Local 
Government applicant, non-profit organization or private property 
owners; reports to government agencies; and summary reports or other 
publications produced by interested parties. Leverage includes past 
expenditures, current cash-on-hand, and letters of commitment for 
future cash/in-kind services to be donated to the Main Street Area 
rejuvenation effort.
    4. Program Requirements.
    a. Main Street Area Recognition by HUD. The applicant must have, 
within the applicant's jurisdiction, a HUD-recognized Main Street Area 
rejuvenation effort that involves affordable housing. In order to be

[[Page 26659]]

recognized by HUD, a Main Street Area rejuvenation effort must:
    (1) Be located within a definable Main Street Area (See Section 
I.D. of this NOFA);
    (2) Have as its purpose the rejuvenation or redevelopment of a 
historic or traditional commercial area;
    (3) Involve investment or other participation by both the local 
government and locally located private entities;
    (4) Comply with historic preservation requirements as directed by 
the cognizant State Historic Preservation Officer (``SHPO'') or, if 
such historic preservation requirements are not applicable, to preserve 
significant traditional, architectural, and design features in the 
project structures or Main Street Area; and
    (5) Have been described in a Main Street Plan that existed prior to 
the publication date of this NOFA.
    b. Main Street Affordable Housing Project (Project). The ``Main 
Street Affordable Housing Project'' is the collection of affordable 
housing units that are rejuvenated or developed in the Main Street Area 
using funds obtained through this NOFA. The project must:
    (1) Involve the construction or rehabilitation of affordable 
housing units. The number of units that will be developed through this 
NOFA must at least equal the number of units stated in form HUD-52861, 
``HOPE VI Main Street Application Data Sheet,'' on the ``Unit Mix and 
Accessibility Summary, Post-Revitalization'' page.
    (2) Be located within the boundaries of the applicant's Main Street 
Area;
    (3) Be located within the jurisdiction of the applicant; and
    (4) Have been included as part of a Main Street Rejuvenation Master 
Plan before the application deadline date of this NOFA; and
    (5) Be constructed in accordance with Building and Fair Housing 
standards stated in this Section III.C., including Universal Design and 
Accessibility standards.
    c. Main Street Plan. The Main Street Rejuvenation Master Plan must, 
at a minimum:
    (1) Currently or in the past, have an architect, land planner, or 
qualified planning professional involved in Plan preparation. 
Participation as a principal preparer or an advisor, in any part of its 
preparation, is acceptable. This professional may be, or may have been, 
employed by the applicant, been on the applicant's Team, or been an 
independent third party. This professional should have knowledge of 
universal design and Section 504 accessible design requirements.;
    (2) Describe the proposed Main Street Area rejuvenation strategies 
and actions;
    (3) Include the development of affordable housing;
    (4) Include a map that indicates the Main Street Area and the Main 
Street Affordable Housing Project site(s); and
    (5) Include a list of sites where affordable housing will be 
rehabilitated or developed. The list of sites must have been included 
in the Main Street Plan on or before the application deadline date.
    (6) Include promotion and marketing.
    (a) Affirmative fair housing marketing should be included in the 
listing of affordable housing promotion and marketing activities. For 
affirmative fair housing marketing, the applicant should identify the 
population least likely to apply for affordable housing developed 
through this NOFA before commencing with marketing for that housing.''
    d. Requirements During the Initial Occupancy Period.
    (1) Initial residents of affordable rental units and initial 
resident purchasers of affordable homeownership units must be subject 
to the same rules regarding occupant contribution toward rent or 
purchase, and terms of rental or purchase, as residents of public 
housing units in a HOPE VI development, i.e., site-based waiting lists, 
resident job or training requirements, and other occupancy requirements 
that are allowed under Section 24 of the of the U.S. Housing Act of 
1937 (1937 Act) may be applied to the units.
    (2) The project owner entity is not required to develop most 
mandatory PHA documentation, e.g., the PHA Plans as described in 24 CFR 
Part 903, etc. However, before the project is initially rented, the 
ownership entity must develop a written statement of its rent 
determination and occupancy policies.
    (3) Public housing rental requirements that are contained in 24 CFR 
903.7(d) and 24 CFR 903.7(f) are not mandatory, but may be used as 
examples for such policies.
    e. HOPE VI Homeownership. The initial sale of an affordable 
homeownership unit to a third-party, low-income purchaser must take 
place in accordance with Section 24 of the 1937 Act.
    f. Use Restrictions. Project units must be maintained as affordable 
housing only for the period of initial rental occupancy or the initial 
resident's ownership. The applicant may elect to apply Use Restrictions 
for a longer period, or in excess, of this requirement.
    g. Leveraging Other Resources. This NOFA states that each applicant 
must obtain non-HOPE VI leverage resources for use in the Main Street 
Affordable Housing Project (see ``Match,'' Section III.B. and, ``Rating 
Factor 4,'' Section V.A. of this NOFA) and, separately, for use in the 
Main Street Area effort as a whole (see ``Thresholds,'' Section III.C. 
of this NOFA). Main Street grant funds may be used to maximize the 
amount of leverage, i.e., leveraged funds and in-kind services, that 
the applicant can obtain from sources other than the HOPE VI program. 
In this capacity, grant funds may be used: (1) To collateralize 
municipal bonds or private-sector loans for affordable housing uses; 
and (2) as affordable housing ``seed money'' to attract Main Street 
Affordable Housing Project or Main Street Area leverage.
    (1) Uses of Leverage. Leverage funds and in-kind services may be 
used for eligible activities listed in ``Eligible Uses of Grant 
Funds,'' Section III.C. of this NOFA and, in addition, for related 
activities may not be eligible uses of grant funds, but that are 
necessary for the development of the Main Street Affordable Housing 
Project. Such activities include, but are not limited to:
    (a) For Main Street Affordable Housing Project Leverage:
    (i) The acquisition of existing housing units that will become 
affordable housing, but do not require rehabilitation, including 
associated costs, such as appraisals, surveys, tax settlements, broker 
fees, and other closing costs;
    (ii) Off-site site improvements that are contiguous to the site;
    (iii) Demolition;
    (iv) Restoration of the Main Street Affordable Housing Project 
farade when farade rehabilitation is not an integral part of the 
project's rehabilitation;
    (v) Rehabilitation of retail space in the Main Street Affordable 
Housing Project, even if this rehabilitation is not an integral part of 
the rehabilitation of the rental areas of the Project;
    (vi) Funding of Reserves, e.g., Initial Operating Reserve necessary 
for financial viability during the initial affordable housing occupancy 
period, Replacement Reserves, etc.;
    (vii) Legal and administrative fees and costs directly related to 
the Main Street Affordable Housing Project;
    (viii) Homeownership financial assistance, e.g., write-down of 
homeownership unit development costs and down payment assistance; and
    (ix) Other uses that relate directly to the Main Street Affordable 
Housing Project.
    (b) For Main Street Area Leverage:
    (i) Rehabilitation of retail space;

[[Page 26660]]

    (ii) Site improvements, e.g., repaving streets or upgrading streets 
or sidewalks with brick or cobblestone, adding ``boulevard'' islands, 
etc.;
    (iii) Legal and administrative fees and costs; and
    (iv) Other uses that do not relate directly to the Main Street 
Affordable Housing Project, but do relate to the Main Street Area 
rejuvenation effort described in the Main Street Plan.
    h. Transfer of Title for Tax Credits. The original owner entity of 
Main Street Affordable Housing Project properties may transfer title 
to, or commit to a long-term lease with, an owner entity partnership 
that includes the original owner, the applicant, an equity partner and, 
when appropriate, other partners, for the purpose of obtaining Low 
Income or Historic Tax Credit equity as a leverage resource. See 
Section IV.E. of this NOFA for limits on sale of real property.
    i. Section 106 Historic Preservation Requirements. Grantees may not 
commit HUD funds until HUD has completed the historic preservation 
review and consultation process under Section 106 of the National 
Historic Preservation Act of 1966 (16 U.S.C. 470f) and its implementing 
regulation, 36 CFR part 800, as applicable, in accordance with 
environmental review requirements under 24 CFR part 50. See http://www.achp.gov/ for details on the Section 106 review process.
    j. Environmental Requirements.
    (1) HUD's notification of award to a selected applicant constitutes 
a preliminary approval by HUD, subject to HUD's completion of an 
environmental review, of proposed sites in accordance with 24 CFR part 
50. Selection for participation (preliminary approval) does not 
constitute approval of the proposed site(s).
    (2) Your application constitutes a certification that you, the 
applicant, will supply HUD with all available, relevant information 
necessary for HUD to perform any environmental review required by 24 
CFR part 50 for each property; will carry out mitigating measures 
required by HUD or, if mitigation is not feasible, select alternate 
eligible property; and will not acquire, rehabilitate, convert, 
demolish, lease, repair, or construct property, nor commit or expend 
HOPE VI, other HUD or other non-HUD funds for these program activities 
with respect to any eligible property, until you receive written HUD 
approval of the property.
    (3) Each proposal will be subject to a HUD environmental review, in 
accordance with 24 CFR part 50, and the proposal may be modified or the 
proposed sites rejected as a result of that review.
    (4) Phase I and Phase II Environmental Site Assessments. If you are 
selected for funding, you must have a Phase I environmental site 
assessment completed in accordance with the ASTM Standards E 1527-05, 
as amended, for each affected site. The results of the Phase I 
assessment must be included in the documents that must be provided to 
HUD for the environmental review. If the Phase I assessment recognizes 
environmental concerns or if the results are inconclusive, a Phase II 
environmental site assessment will be required.
    (5) Mitigating and remedial measures. You must carry out any 
mitigating/remedial measures required by HUD. If a remediation plan, 
where required, is not approved by HUD and a fully-funded contract with 
a qualified contractor licensed to perform the required type of 
remediation is not executed, HUD reserves the right to determine that 
the grant is in default.
    (6) Your application constitutes a certification that there are not 
any environmental or public policy factors such as sewer moratoriums 
that would preclude development in the requested Main Street Area.
    (7) Note that environmental requirements for this NOFA are found in 
24 CFR part 50, which requires HUD environmental approval. Please note 
that 24 CFR part 58, which allows State and local governments to assume 
Federal environmental responsibilities, is not applicable.
    (8) HUD's Environmental Web site is located at http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm.
    k. Building Standards.
    (1) Building Codes. All activities that include construction, 
rehabilitation, lead-based paint removal, and related activities must 
meet or exceed local building codes. The applicant is encouraged to 
read the policy statement and Final Report of the HUD Review of Model 
Building Codes that identifies the variances between the design and 
construction requirements of the Fair Housing Act and several model 
building codes. That report can be found on the HUD Web site at http://www.hud.gov/fhe/modelcodes.
    (2) Deconstruction. HUD encourages the applicant to design programs 
that incorporate sustainable construction and demolition practices, 
such as the dismantling or ``deconstruction'' of housing units, 
recycling of demolition debris, and reusing salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at http://
www.hud.gov/deconstr.PDF.
    (3) Partnership for Advancing Technology in Housing (``PATH''). HUD 
encourages the applicant to use PATH technologies in the construction 
and delivery of affordable housing. PATH is a voluntary initiative that 
seeks to accelerate the creation and widespread use of advanced 
technologies to radically improve the quality, durability, 
environmental performance, energy efficiency, and affordability of our 
nation's housing.
    (a) The goal of PATH is to achieve dramatic improvement in the 
quality of American housing by the year 2010. PATH encourages leaders 
from the home building, product manufacturing, insurance, and financial 
industries, and representatives from federal agencies dealing with 
housing issues to work together to spur housing design and construction 
innovations. PATH will provide technical support in design and cost 
analysis of advanced technologies to be incorporated in project 
construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.
    (c) More information, including a list of technologies, the latest 
PATH Newsletter, results from field demonstrations, and descriptions of 
PATH projects can be found at http://www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction and rehabilitation that is started on or 
before September 30, 2006 must comply with HUD Minimum property 
standards, which incorporates by reference the Council of American 
Building Officials (CABO) Model Energy Code, 1992 edition. Construction 
of multifamily high-rises (having a height of four or more stories 
above grade) must comply with ASHRAE 90.1 1989. New construction and 
rehabilitation that is started after September 30, 2006 must comply 
with the 2003 International Energy Conservation Code (IECC 2003), which 
incorporates ASHRAE 90.1 2001 by reference for high-rise multifamily 
housing.
    (i) IECC 2003 Administrative Guidance. IECC 2003 applies to all 
construction and rehabilitation of residential and commercial property. 
The standard contains exceptions that allow for its reasonable 
application to Main Street NOFA activities.

[[Page 26661]]

    (A) IECC 2003 Section ``101.2.2.3 Historic buildings. The 
provisions of this code * * * shall not be mandatory for existing 
buildings or structures specifically identified and classified as 
historically significant by the state or local jurisdiction, listed in 
The National Register of Historic Places, or which have been determined 
to be eligible for such listing.''
    (B) IECC 2003 Section ``101.2.3 Mixed occupancy. [For mixed-use 
buildings,] * * * each portion of the building shall conform to the 
requirements for the occupancy housed therein. Buildings [with more 
than two housing units] with a height of four or more stories above 
grade shall be considered commercial buildings * * * regardless of the 
number of floors that are classified as residential.'' That is, if 
there is a store in the building, that part of the building is 
considered commercial. The rest of the building would incorporate low-
rise residential requirements.
    (C) IECC 2003 Section ``101.2.2.2 Additions, alterations or 
repairs. Additions [and rehabilitation of a building or portion of a 
building] * * * shall conform to the provisions of this code * * * 
without requiring the unaltered portions(s) of the existing system to 
comply with all of the requirements of this code. Additions [or 
rehabilitation] shall not cause any one of the aforementioned and 
existing systems to become unsafe, hazardous or overloaded.''
    (b) Where local or State energy related building codes exceed the 
above standards, new construction and rehabilitation must comply with 
those local or State standards.
    (c) In HOPE VI new construction and gut-rehabilitation, HUD 
encourages the applicant to set higher energy and water efficiency 
standards than the Model Energy Code contains. Such higher standards 
can achieve utility savings of 30 to 50 percent with minimal extra 
cost. To achieve higher levels of energy efficiency, development costs 
can be financed through leverage grants from non-HOPE VI sources, e.g., 
CDBG, HOME, Weatherization Assistance, Energy Star rebates, etc. 
Increased development costs are typically offset by reduced utility 
expenses.
    (d) The applicant is encouraged to negotiate with its local utility 
company to obtain lower utility rates. Utility rates and tax laws vary 
widely throughout the country. In some areas, local governments are 
exempt or partially exempt from utility rate taxes. Some local 
governments have paid unnecessarily high utility rates because they 
were billed using an incorrect rate classification.
    (e) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (f) The applicant must use new technologies that will conserve 
energy and decrease operating costs where cost effective. Examples of 
such technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (5) Universal Design. HUD encourages the applicant to incorporate 
the principles of universal design in the construction or 
rehabilitation of housing, retail establishments, and community 
facilities, and when communicating with community residents at public 
meetings or events. Universal Design is the design of products and 
environments to be usable by all people, to the greatest extent 
possible, without the need for adaptation or specialized design. The 
intent of Universal Design is to simplify life for everyone by making 
products, communications, and the built environment more usable by as 
many people as possible at little or no extra cost. Universal Design 
benefits people of all ages and abilities. Examples include designing 
wider doorways, installing levers instead of doorknobs, and putting 
bathtub/shower grab bars in all units. Computers and telephones can 
also be set up in ways that enable as many residents as possible to use 
them. The Department has a publication that contains a number of ideas 
about how the principles of Universal Design can benefit persons with 
disabilities. To order a copy of Strategies for Providing Accessibility 
and Visitability for HOPE VI and Mixed Finance Homeownership, go to the 
publications and resource page of the HOPE VI Web site at http://www.huduser.org/publications/pubasst/strategies.html.
    (6) Energy Star. The Department of Housing and Urban Development 
has adopted a wide-ranging energy action plan for improving energy 
efficiency in all program areas. As a first step in implementing the 
energy plan, HUD, the Environmental Protection Agency (EPA) and the 
Department of Energy (DoE) have signed a 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 build 
to Energy Star qualifications and to purchase and use Energy Star-
labeled products. Applicants providing housing assistance or counseling 
services are encouraged to promote Energy Star building to 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.
    (7) All buildings must be in compliance with design and 
construction requirements of the Civil Rights Act of 1964, Section 504 
of the Rehabilitation Act of 1973, and Section 109 of the Housing and 
Community Development Act of 1974.
    l. Lead-Based Paint. The applicant must comply with lead-based 
paint evaluation and reduction requirements as provided for under the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.), 
the EPA's Pre-Renovation Education Rule (40 CFR 745, subpart E), HUD's 
Lead Safe Housing Rule (24 CFR 35, subparts B-R), and theLead 
Disclosure Rule (24 CFR 35, subpart A), which regulates documents 
provided to pre-1978 housing owners regarding lead paint or hazard 
testing or lead hazard reduction activities, as they may be amended or 
revised from time to time. The applicant will be responsible for lead-
based paint evaluation and reduction activities for housing constructed 
prior to 1978. The National Lead Information Hotline is 1-800-424-5323.
    m. Labor Standards.
    (1) If other federal programs are used in connection with the 
applicant's HOPE VI Main Street activities, Davis-Bacon requirements 
apply to the extent required by the other federal programs.
    (2) If an applicant provides Main Street grant funds to a PHA to 
construct, rehabilitate, or otherwise assist affordable housing under 
this NOFA, Davis-Bacon wage rates will apply to laborers and mechanics 
(other than volunteers under 24 CFR part 70)

[[Page 26662]]

employed in the development of such units, and HUD-determined wage 
rates will apply to laborers and mechanics (other than volunteers) 
employed in the operation of such units.
    n. Relocation Requirements. The Uniform Relocation Assistance and 
Real Property Acquisition Policies Act of 1979 (42 U.S.C. 4601-4655), 
implementing regulations at 49 CFR part 24, and ``Handbook CPD 02-08, 
Guidance on the Application of the Uniform Relocation Assurance and 
Real Property Acquisition Policies Act of 1970 (URA), as amended in 
HOPE VI Projects'' apply to anyone who is displaced as a result of 
acquisition, rehabilitation, or demolition due to a HUD-assisted 
activity.
    o. Fair Housing and Equal Opportunity Requirements. Fair Housing 
and Equal Opportunity requirements stated in Section III.C. of the 
General Section apply as referenced in this NOFA. In addition, the 
following requirement applies:
    (1) Accessibility Requirements.
    (a) All ``multifamily'' HOPE VI developments, defined as projects 
with more than five units, are subject to the accessibility 
requirements contained in several federal laws, as implemented in 24 
CFR part 8. PIH Notice 2003-31, available at http://www.hud.gov/offices/pih/publications/notices/, and subsequent updates, provides an 
overview of all pertinent laws and implementing regulations pertaining 
to HOPE VI.
    (b) Generally, for substantial rehabilitation of projects with more 
than 15 housing units, or new construction of a multifamily project, at 
least 5 percent of the units, or one unit, whichever is greater, must 
be accessible to persons with mobility impairments. An additional 2 
percent, but not less than one unit, must be made accessible for 
persons with hearing or vision impairment. See, in particular, 24 CFR 
parts 8.20 through 8.32.
    (c) In addition, under the Fair Housing Act, all new construction 
of covered multifamily buildings must contain certain features of 
accessible and adaptable design. The relevant accessibility 
requirements are provided in HUD's FHEO Web site at http://www.hud.gov/groups/fairhousing.cfm. Units covered are all those in elevator 
buildings with four or more units and all ground floor units in 
buildings without elevators. See also ``program accessibility'' at 
http://www.hud.gov/offices/fheo/disabilities/sect504faq.cfm#anchor263905. This section is in addition to, and does 
not replace, other non-HUD accessibility requirements that the 
applicant local government may be subject to.
    5. General Section References. The following subsections of Section 
III of the General Section are hereby incorporated by reference:
    a. Additional Nondiscrimination and Other Requirements;
    (1) Civil Rights Laws, including the Americans with Disabilities 
Act of 1990 (42 U.S.C. 1201 et seq.);
    (2) The Age Discrimination Act of 1974 (42 U.S.C. 6101 et seq.); 
and
    (3) Title IX of the Education Amendments Act of 1972 (20 U.S.C. 
1681 et seq.)
    b. Affirmatively Furthering Fair Housing;
    c. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3);
    d. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses;
    e. Relocation;
    f. Executive Order 13166, Improving Access to Services for Persons 
With Limited English Proficiency (LEP);
    g. Executive Order 13279, Equal Protection of the Laws for Faith-
Based and Community Organizations;
    h. Accessible Technology;
    i. Procurement of Recovered Materials;
    j. Participation in HUD-Sponsored Program Evaluation;
    k. Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects;
    l. Salary Limitation for Consultants;
    m. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs;
    n. Drug-Free Workplace; and
    o. Safeguarding Resident/Client Files.

IV. Application and Submission Information

A. Addresses To Request Application Package

    This section describes how you may obtain application forms, 
additional information about the General Section of this NOFA, and 
technical assistance.
    1. Copies of this published NOFA and related application forms 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 the help line at (800) 518-
GRANTS or by sending an e-mail to [email protected]. The operators 
will assist you in accessing the information. If you do not have 
Internet access and need to obtain a copy of this NOFA, you can contact 
HUD's NOFA Information Center toll-free at (800) HUD-8929. Persons with 
hearing or speech impairments may call toll-free at (800) HUD-22091.
    2. The published Federal Register document is the official document 
that HUD uses to evaluate applications. Therefore, if there is a 
discrepancy between any materials published by HUD in its Federal 
Register publications and other information provided in paper copy, 
electronic copy, or at http://www.grants.gov, the Federal Register 
publication prevails. Please be sure to review the application 
submission against the requirements in the Federal Register file of 
this NOFA.

B. Content and Form of Application Submission

    1. Number of Applications Permitted. Each applicant may submit only 
one application.
    2. Joint Applications. Joint applications are not permitted. 
However, the applicant may enter into subgrant agreements with procured 
developers, other partners, nonprofit organizations, state governments, 
or other local governments to perform the activities proposed under the 
application.
    3. General Format and Length of Application.
    a. Applicant Name. The applicant's official name is the name that 
is submitted to grants.gov on the SF-424.
    b. Electronic Format.
    (1) General.
    (a) Sections of the application are as listed in Section IV.B. of 
this NOFA.
    (b) In accordance with instructions on grants.gov and in the 
General Section, section submissions may be submitted through PureEdge 
fill-in forms that are part of the grants.gov Application Package, in 
electronic files attached to the grants.gov Application Package, or (if 
the applicant encounters a problem submitting some part of the 
application electronically to grants.gov) via Facsimile. Note that 
applicants must use form HUD 96011, as the cover page to the facsimile 
and that applications submitted entirely by facsimile will not be 
accepted by HUD.
    (c) More than one Section's submission may be combined in one file, 
provided that each Section's submission is clearly labeled and is 
separately identifiable by a HUD reviewer.
    (2) File Names.
    (a) The name of each submission file should include the information 
below

[[Page 26663]]

so that a HUD reviewer will be able to identify it as part of the 
application:
    (i) Short version of applicant's name, e.g., town, city, county/
parish, etc., and state; and
    (ii) The word ``Narratives'' or ``Attachment,'' as applicable, and 
the Section letter(s) (A through U) that are included in the file, as 
listed in Section IV.B. of this NOFA;
    (b) Examples of file names are, ``Atlanta GA Narratives ABC.doc,'' 
and, ``New York NY Attachments KL.pdf''
    (3) Narrative Files.
    (a) Each narrative submission file must be formatted so it can be 
read by MS Word 2000 (.DOC).
    (b) To be included in the application, each file must be entered 
into the grants.gov ``Project Narrative Attachment Form'' located in 
the Mandatory Documents area of the ``Grant Application Package.''
    (i) After the form is open, enter your first file as the 
``Mandatory Project Narrative File. Add subsequent files, if any, as 
``Optional Project Narrative Files'' by clicking on ``Attach'' in the 
Attachments window.
    (4) Attachment Files.
    (a) In the grants.gov Grant Application Package, certain form 
Attachments have been converted into PureEdge documents for completion 
by the applicant on the screen. The applicant must simply fill these 
forms in and submit them. Other Attachments are part of grants.gov's 
Application Instructions. The following instructions apply to those 
Attachments.
    (b) Each Attachment file must be formatted so it can be read by MS 
Word (.DOC), MS Excel (.XLS) or Adobe Acrobat (.PDF). See the General 
Section for format version specifications.
    (c) Downloaded files, e.g., forms HUD-52861 and HUD-52825A, should 
be submitted in their original format.
    (d) Existing and third-party documents, e.g., Main Street Plan, 
maps and drawings, should be submitted in Adobe Acrobat (PDF) format.
    (e) You must complete these Attachments in stand-alone 
applications, such as MS Excel. To include these downloaded Attachments 
in the application, you must enter each Attachment's file into the 
grants.gov ``Other Attachments Form,'' which is located in the 
Mandatory Documents area of the Grant Application Package.
    (i) After the form is open, enter your first file as the 
``Mandatory Other Attachment.'' Add subsequent files, if any, as 
``Optional Other Attachments'' by clicking on ``Attach'' in the 
Attachments window.
    c. Maximum Length of Application. There is no overall maximum 
application length. However, there are maximum page limits for specific 
parts of the application. Pages beyond the below listed limits will not 
be reviewed. Page limits are as follows:
    (a) The Executive Summary is limited to a maximum of two pages;
    (b) All of the Narrative Sections' responses together, including 
the Rating Factor responses, are limited to a maximum of 20 pages;
    (c) The Program Schedule is limited to a maximum of one page;
    (d) The Main Street Area Map, including identification of all 
project the sites, is limited to a maximum of one page. The map must be 
approximately to scale and must be of sufficient quality to be legible 
at 11'' x 17'' printed size;
    (e) Each different Main Street Affordable Housing Project unit 
layout is limited to a maximum of one page. One page may contain up to 
four layouts; and
    (f) The Main Street Plan is limited to a maximum of 20 pages. In 
order to meet the size limitation, the applicant may submit only the 
portions of the Main Street Plan that pertain to the ``Thresholds'' and 
``Program Requirements,'' in Section III.C., and the Rating Factors in 
Section V.A. of this NOFA.
    (g) The Evaluation Plan is limited to a maximum of three pages.
    (h) Applicant Team Resumes are limited to a maximum of 5 pages. 
More than one resume may be placed on each page.
    (2) Page Definition and Layout.
    (a) A page is the electronic equivalent of an 8\1/2\'' x 11'' paper 
page, with one inch top, bottom, left and right margins.
    (b) For DOC files, a ``page'' contains a maximum of 23 double-
spaced lines. The length of each line is limited to 6\1/2\ inches. The 
font must be 12-point Times New Roman. Each page must be numbered. The 
page numbers may be within the bottom one inch of the page, beyond the 
23 lines, e.g., in the footer area.
    (c) Third-party and existing documents converted into PDF format 
may retain their original page layout. They must not be shrunk to fit 
more than one original page on each application page. To add page 
numbers to PDF files using Adobe Acrobat 6, click on Document; Add 
Headers & Footers; Footer; Align Right; Insert Page Number.
    (d) Pages of HUD forms and certification formats furnished by HUD 
must remain as numbered by HUD.
    d. List of Application Sections and Related Documents.
    (1) Summary Information:
    (a) Section A: Application for Federal Assistance, form SF-424;
    (b) Section B: Executive Summary;
    (2) Rating Factor Responses:
    (a) Section C: Rating Factor 1, Capacity, Narrative Response;
    (b) Section D: Rating Factor 3, Appropriateness of Main Street 
Plan;
    (c) Section E: Rating Factor 4, Appropriateness of the Main Street 
Affordable Housing Project;
    (d) Section F: Rating Factor 5, Program Administration and Fiscal 
Management;
    (e) Section G: Rating Factor 6, Incentive Criteria on Regulatory 
Barrier Removal (information required by form HUD-27300);
    (3) Attachments:
    (a) Section H: Program Schedule;
    (b) Section I: HOPE VI Main Street Application Data Sheet, form 
HUD-52861;
    (c) Section J: HOPE VI Budget, form HUD-52825A;
    (d) Section K: 5-Year Cash Flow Proforma;
    (e) Section L: Map of Main Street Area;
    (f) Section M: Housing Unit Layout;
    (g) Section N: Main Street Rejuvenation Master Plan (Main Street 
Plan);
    (h) Section O: America's Affordable Communities Initiative, form 
HUD-27300, and related documentation;
    (i) Section P: Certification of Consistency with the RC/EZ/EC-IIs 
Strategic Plan, form HUD-2990, if applicable;
    (j) Section Q: Logic Model, form HUD-96010, including:
    (i) Indicators, outcomes and related items obtained from the 
grants.gov Grant Application Package Logic Model drop-down menu, and
    (ii) The grant Evaluation Plan;
    (k) Section R: Code of Conduct (including distribution 
methodology);
    (l) Section S: Applicant/Recipient Disclosure/Update Report, form 
HUD-2880, if applicable;
    (m) Section T: Disclosure of Lobbying Activities, Standard Form 
LLL, if applicable; and
    (n) Section U: Applicant Team Resumes.
    4. Threshold Documentation.
    a. Code of Conduct.
    (1) The applicant must submit a copy of its code of conduct as part 
of the application if its code of conduct is not already on file with 
HUD. See 24 CFR 84.42 and 85.36(b)(3).
    (2) Unless the applicant is listed on HUD's Web site at http://www.hud.gov/offices/adm/grants/codeofconduct/cconduct.cfm and the 
information has not been revised, the applicant is required to submit:

[[Page 26664]]

    (a) A copy of its code of conduct;
    (b) A description of the methods it will use to ensure that all 
officers, employees, and agents of its organization are aware of its 
code of conduct; and
    (c) The following information, as it is stated on the SF-424:
    (i) DUNS;
    (ii) EIN;
    (iii) Applicant Legal Name;
    (iv) Address (Street, P.O. Box, City, State, and Zip);
    (d) Authorized Official's information (Name, Title, Phone, and 
Email)
    (3) The code of conduct must prohibit real and apparent conflicts 
of interest that may arise among officers, employees, or agents; 
prohibit the solicitation and acceptance of gifts or gratuities by your 
officers, employees, or agents for their personal benefit in excess of 
minimal value; and outline administrative and disciplinary actions 
available to remedy violations of such standards.
    (4) See the General Section, III.C., for more detailed information 
and instructions if the applicant needs to submit their code of conduct 
to HUD via facsimile.
    5. Summary and Attachment Documentation.
    a. Executive Summary.
    (1) Provide an Executive Summary, not to exceed two pages. Describe 
your affordable housing plan. State whether: (1) You have procured (or 
will procure) a developer, (2) you will act as your own developer, or 
(3) you will not use a developer because your housing project is not 
complex enough to warrant one. Briefly describe:
    (a) The type of housing, e.g., walk-up above retail space, detached 
house, etc.;
    (b) The number of units and buildings;
    (c) The specific plans for the Main Street Area that surrounds the 
Main Street Affordable Housing Project. Include income mix, basic 
features (such as restoration of streets), and a general description of 
mixed-use and non-housing Main Street rejuvenation components.
    (d) The number of homeownership units in your proposal, if any;
    (e) The amount of HOPE VI funds you are requesting. See Section 
IV.E. of this NOFA for funding limits; and
    (f) A list of major non-HOPE VI funding sources for the Main Street 
Affordable Housing Project, if any.
    b. Program Schedule. The application requires a Program Schedule 
for the applicant's Project. The Program Schedule must reflect the 
Reasonable Time-Frame and Development Proposal time requirements stated 
in Section VI.B. of this NOFA.
    c. HOPE VI Main Street Application Data Sheet, form HUD-52861, in 
MS Excel format (.XLS).
    (1) This form consists of several Excel worksheets. Each worksheet 
requires information that is necessary for the applicant to meet 
thresholds, obtain rating points, or determine the maximum grant 
amount. Instructions for completing the data worksheets are located in 
the left-hand worksheet, with the tab name, ``Instructions.'' The 
worksheets should be completed from the left-most tab toward the right. 
In this way, the information that the applicant provides will 
automatically be inserted to the right into other worksheets as needed.
    (2) Unit Mix. This worksheet will be HUD's primary source of 
information on the Main Street Affordable Housing Project's unit number 
and type. This information also feeds into the calculations for maximum 
grant amount.
    (3) Construction Sources and Uses. This worksheet contains the 
planned costs and funding resources that will exist during the 
construction period. That is, if a construction loan will be obtained, 
it would be included here along with other financing that will be 
expended during the construction period, including grant funds used in 
construction. A permanent mortgage would not be included here.
    (4) Permanent Sources and Uses. This worksheet contains the planned 
costs and long-term financing that will be used to develop the Main 
Street Affordable Housing Project. Tax credit equity, permanent 
mortgages, grant funds that will be used in construction, rent-up, 
developer fee, etc., would be included here.
    (5) TDC. The maximum amount of the grant must be based on HUD's 
Total Development Cost per unit developed. The applicant must choose an 
applicable city and state. HUD developed TDCs for larger cities, 
metropolitan statistical areas and primary metropolitan statistical 
areas (MSA/PMSA), not for small, rural cities. Therefore, the applicant 
must determine which listed city or MSA/PMSA is most applicable to it.
    (6) Match and Housing Resources. In order to meet HOPE VI's 5% 
Match, and to obtain rating points for Main Street Affordable Housing 
Project leverage, the applicant must enter funding sources, amounts, 
the leverage and related information in this worksheet. If a source is 
not listed in this worksheet, the amount will not be included in HUD's 
review and rating. Allowable resources may be cash contributions or 
contributions of in-kind services THAT WILL BE EXPENDED ON THE MAIN 
STREET AFFORDABLE HOUSING PROJECT ONLY.
    (7) Main Street Area Rejuvenation Effort Leverage Resources. In 
order to meet the 50% Main Street Area leverage threshold, the 
applicant must enter funding sources, amounts and related information 
in this worksheet. Allowable resources may be cash contributions or 
contributions of in-kind services that have been expended, or are 
committed to, the Main Street Area rejuvenation effort as a whole, 
EXCLUDING THE MAIN STREET AFFORDABLE HOUSING PROJECT. If a source is 
not listed in this worksheet, the amount will not be included in HUD's 
review and rating
    (8) For each of the applicant's Match and leverage resources, the 
applicant must include:
    (i) The name of the entity providing the resource;
    (ii) The name of a contact for the entity providing the resource 
that is familiar with the contribution toward this application;
    (iii) The telephone number of a contact for the resource who is 
familiar with the contribution toward this application;
    (iv) The leverage amount;
    (v) Whether the leverage amount is cash or in-kind services; and
    (vi) The period in which the leverage resource was expended or will 
be received, e.g., expended during 2005, or, for a future leverage 
resource, the period in which it will be furnished, e.g., over the next 
two years.
    d. HOPE VI Budget. Enter the amount you are requesting through this 
NOFA. In ``Part I: Summary,'' in the ``PHA'' space, enter the 
applicant's name as stated on the SF-424. Also complete the column 
entitled, ``Revised Overall HOPE VI Budget for All Project Phases.'' It 
is not necessary to fill in the other columns. In ``Part II: Supporting 
Pages,'' in the ``PHA'' space, enter the applicant's name as stated on 
the SF-424 and complete only columns 2 and 3.
    e. Cash Flow Proforma. The applicant must include a five-year 
estimate of project income, expenses, and cash flow (``proforma'') that 
shows that the project will be financially viable over the long term. 
In the proforma, the applicant should assume that the initial occupancy 
period is a minimum of two years. Note that initial funding of reserves 
with grant funds is NOT an allowable use of funds from this NOFA. 
Reserves may be funded through leverage resources. Viability must be 
shown for the entire project, i.e., all buildings that include 
affordable

[[Page 26665]]

housing units that are partially or wholly funded with HOPE VI funds. 
The applicant may include one proforma for the entire project, or 
several proformas, broken out for the various portions of the project, 
as fits the circumstances best. For example, separate proformas may be 
included for:
    (1) All buildings together;
    (2) Separately for each building in the project; or
    (3) Separately for each owner entity in the project.
    f. Map of Main Street Area. The drawing must denote the boundaries 
of a Main Street Area and denote each housing site that is included in 
the applicant's project. The map should be grayscale for printing on a 
black-and-white printer. Boundaries and site(s) should be delineated 
with black lines. The boundaries may include streets, highways, 
railroad tracks, etc., and natural boundaries such as streams, hills, 
and ravines, etc.
    g. Housing Unit Layout. The applicant must include one unit layout 
drawing for each of the different size and type affordable housing 
units that are planned. The drawings do not need to be blueprint 
quality, but should be approximately to scale. Up to four layouts may 
be included on each page. The layouts should be in grayscale, for 
printing on a black-and-white printer.
    h. Main Street Rejuvenation Master Plan (Main Street Plan). The 
applicant's Main Street Rejuvenation Master Plan must address, at a 
minimum, the six subjects listed in ``Main Street Rejuvenation Master 
Plan,'' in ``Definitions,'' Section I.D. of this NOFA. The Main Street 
Plan should include amendments that occurred during the publication 
period of this NOFA, e.g., inclusion of affordable housing, Main Street 
Affordable Housing Project site address. It is not necessary to include 
a market analysis to demonstrate that affordable housing is needed in 
the Main Street Area. It is also not necessary to include nominations 
to the National Register of Historic Places (NRHP). The applicant may 
submit only the portions of the Main Street Plan that pertain to 
subjects that are listed in Section III.C. of this NOFA, under 
``Thresholds,'' ``Program Requirements,'' and the Rating Factors in 
Section V.A. of this NOFA.
    i. America's Affordable Communities Initiative, form HUD-27300. The 
applicant must complete and include this form, and accompanying 
documentation, in the application in order to receive rating points. 
See the General Section.
    j. Certification of Consistency with the RC/EZ/EC-IIs Strategic 
Plan, form HUD-2990. If the applicant is eligible for, and desires, 
this NOFA's RC/EZ/EC-II bonus points, the applicant must complete, 
sign, and include this certification form in the application in order 
to receive the rating points. The certification must also meet the 
requirements stated in the General Section.
    k. Logic Model. The applicant must complete the form HUD-96010, 
``Logic Model,'' in accordance with the ``Logic Model Instructions'' 
part of the form and Section VI.B. of the General Section. The Logic 
Model is included in the ``Application Instructions'' of the 
application on grants.gov. The Logic Model has self-contained 
instructions for its use. HUD suggests that you read those instructions 
first and then complete the Logic Model, selecting the applicable 
responses for your proposed program from the drop down selections. 
After completing the Logic Model, save it and attach it to your 
electronic application submission using the ``Other Attachments Form'' 
found in the Mandatory Documents block of the grants.gov Application 
Package.
    6. Rating Factor Format. The narrative portion of the application 
includes the executive summary and all of the applicant's responses to 
the Rating Factors. To ensure proper credit for information applicable 
to each Rating Factor, the applicant should include references to 
application Sections, as listed in Section IV.B. of this NOFA, and to 
pages of the Main Street Plan, as appropriate for Rating Factor 
responses. The applicant's Rating Factor responses should be as 
descriptive as possible, ensuring that every requested item is 
addressed. The applicant should make sure to include all information 
requested in this NOFA. Although information from all parts of the 
application will be taken into account in rating the various factors, 
if supporting information cannot be found by the reviewer, it cannot be 
used to support a factor's rating.
    7. Rating Factor Documentation.
    a. References to the Main Street Rejuvenation Master Plan.
    (1) The purpose of referencing the Main Street Rejuvenation Master 
Plan is to decrease the amount of Rating Factor narrative that the 
applicant finds necessary to achieve its maximum rating. It is NOT 
necessary to repeat in the Rating Factor narratives the information 
that the applicant included in its Main Street Plan.
    (2) Each reference to the Main Street Plan should be specific, 
including the page number of the Main Street Plan where the information 
can be found and a reference to identify its location on the page. More 
than one specific reference to the Main Street Plan may be included for 
any one subject or Rating Factor narrative.
    b. Team Experience and Key Personnel Knowledge. Documentation that 
demonstrates knowledge and experience may include, but is not limited 
to:
    (1) A list and short description of affordable housing projects 
that the members of the applicant's team have completed;
    (2) A list and short description of contracts or grants completed 
by the members of the applicant's team for similar housing development 
or services;
    (3) Third-party evaluation reports;
    (4) R[eacute]sum[eacute]s of key personnel; and
    (5) Other documentation showing knowledge and experience of 
affordable housing development or construction.
    c. Need for Affordable Housing. It is not necessary for the 
applicant to include documentation for this Rating Factor in the 
application. HUD reviewers will derive the need for affordable housing 
is based on a comparison of HUD's Fair Market Rent (FMR) for the 
applicant's Primary Metropolitan Statistical Area/Metropolitan 
Statistical Area (``PMSA/MSA'') or nonmetropolitan county/parish and 
the maximum amount of rent that a very low-income family living in that 
PMSA/MSA or nonmetropolitan county/parish can afford to pay. In 
performing the comparison, HUD will compare the FMR for a three-bedroom 
unit to the rent that would be paid by a four-person very low-income 
family.
    (1) PMSA/MSAs and nonmetropolitan counties/parishes are as listed 
in HUD's document titled ``FY 2005 State List of Counties (and New 
England Towns) Identified by Metropolitan and Nonmetropolitan Status'' 
at http://www.huduser.org/datasets/il/IL05/Definitions05.doc.
    (2) The FMRs are listed at http://www.huduser.org/datasets/fmr/fmr2006F/FY2006F_SCHEDULE_B.doc.
    d. The maximum, affordable very low-income rent is based on HUD's 
Income Limits, as listed at http://www.huduser.org/datasets/il/IL05/Section8_IncomeLimits_2005.docfor very low-income families. The 
initial occupant must not pay more in rent than a public housing 
resident at a HOPE VI development, which is 30% of one twelfth of the 
listed income limit for a very low-income family Readiness and 
Appropriateness of the Main Street Affordable Housing Project
    (1) Site Control. See the definition of Site Control in Section 
I.D. of this NOFA.

[[Page 26666]]

    Section (3). A minimal Section (3) plan must include at least 
general methods that the applicant will use to comply with implementing 
regulations at 24 CFR part 135 and give job training, employment, 
contracting and other economic opportunities to section 3 residents and 
section 3 business concerns. A Section (3) plan that exceeds this may 
contain more specific information, e.g., goals by age group, types of 
jobs, and other opportunities to be furnished; plans for tracking and 
evaluation of goals. To include Logic Model Section (3) information in 
the Section (3) plan, the applicant should make reference to such 
information in the Section (3) Narrative.
    e. Program Administration and Fiscal Management.
    (1) Documentation that demonstrates program administration and 
fiscal management MUST include:
    (a) A list of any findings issued or material weaknesses found by 
HUD or other federal or state agencies. A description of how the 
applicant addressed the findings and/or weaknesses. If no findings or 
material weaknesses were exposed or existed on or before the 
publication date of this NOFA, include a statement to that effect in 
the narrative; and
    (b) An Evaluation Plan. The plan should include the applicant's 
indicators, outcomes and evaluation methodology in prose format. The 
plan should include those indicators, outcomes, and methodologies 
included in the applicant completed Logic Model. The plan must include 
the methodology to be used to measure progress toward grant completion, 
and the return on investment (ROI) that the grant has achieved. The 
Evaluation Plan may contain indicators, outcomes and methodologies in 
addition to those stated in the Logic Model.
    (2) Documentation that demonstrates program administration and 
fiscal management should include
    (a) A description of the procurement system structure that the 
applicant has in place, including internal controls. Note that 
procurement system information will be included in the narrative page 
limit;
    (b) A description of the fiscal management structure that the 
applicant has in place, including fiscal controls and internal 
controls;
    (c) A summary of the results of the last available annual external, 
independent audit, including findings, if any;
    (d) A description of the applicant's management control structure, 
including management roles and responsibilities and evidence that the 
applicant's management is results-oriented, e.g., existing production, 
rental, and maintenance goals.
    f. Incentive Criteria on Regulatory Barrier Removal.
    (1) The applicant must include the completed form HUD-27300 in the 
application, along with background documentation where required by the 
form, if it wants to receive up to 2 policy priority points for removal 
of barriers to affordable housing. See Section IV. of the General 
Section.
    g. RC/EZ/EC-IIs.
    (1) To receive up to two bonus points for performing the NOFA 
activities in a RC/EZ/EC-II area, the applicant must complete, sign, 
and submit the ``Certification of Consistency with RC/EZ/EC Strategic 
Plan'' (form HUD-2990) as part of the application and meet the 
requirements of the General Section.

C. Submission Dates and Times

    1. Application deadline date. Electronic applications must be 
received and validated by Grants.gov by 11:59:59 p.m. eastern time on 
the application deadline of July 11, 2006. Paper copy applications 
submitted if a waiver to the electronic submission is granted, must be 
received by the application deadline date of July 11, 2006. See the 
General Section.
    2. No Facsimiles or Videos. HUD will not accept for review, 
evaluation, or funding, any entire application sent by facsimile (fax). 
However, third-party documents or other materials sent by facsimile in 
compliance with the instructions under Section IV. of the General 
Section, and that are received by the application deadline date will be 
accepted. Also, videos submitted as part of an application will not be 
viewed.

D. Intergovernmental Review

    1. Executive Order 12372, Intergovernmental Review of Federal 
Programs. Executive Order 12372 was issued to foster intergovernmental 
partnership and strengthen federalism by relying on state and local 
processes for the coordination and review of federal financial 
assistance and direct federal development. HUD implementing regulations 
are published in 24 CFR part 52. The executive order allows each state 
to designate an entity to perform a state review function. The official 
listing of State Points of Contact (SPOCs) for this review process can 
be found at http://www.whitehouse.gov/omb/grants/spoc.html. States not 
listed on the Web site have chosen not to participate in the 
intergovernmental review process and, therefore, do not have a SPOC. If 
the applicant's state has a SPOC, the applicant should contact it to 
see if it is interested in reviewing the application prior to 
submission to HUD. The applicant should allow ample time for this 
review process when developing and submitting the applications. If the 
applicant's state does not have a SPOC, the applicant may send 
applications directly to HUD.

E. Funding Restrictions

    1. Grant funds must only be used to provide assistance to carry out 
eligible affordable housing activities, as stated in Section III.C. of 
this NOFA.
    2. HOPE VI funds may not be used to meet the Match requirement.
    3. Non-allowable Costs and Activities. Grant funds awarded through 
this NOFA must not be expended on:
    a. Total demolition of a building (including where a building 
foundation is retained);
    b. Sale or lease of the Main Street Affordable Housing Project site 
(excluding lease or transfer of title for the purposes of obtaining tax 
credits, provided that the recipient owner entity of the title or lease 
includes the applicant, and excluding purchase of property for 
rehabilitation);
    c. Funding of project reserves of any type;
    d. Payment of the applicant's administrative costs;
    e. Payment of any and all legal fees;
    f. Development of public housing replacement units (defined as 
units that replace disposed of or demolished public housing);
    g. Housing Choice Vouchers;
    h. Transitional security activities;
    i. Main Street technical assistance consultants or contracts; and
    j. Costs incurred prior to grant award, including the cost of 
application preparation.
    4. Main Street Affordable Housing Project Leverage. Excluding the 
Match amount, Main Street Affordable Housing Project Leverage resources 
may be used to fund non-allowable expenditures, provided that these 
expenditures support the development of affordable housing.
    5. Cost Controls.
    a. The total amount of HOPE VI funds expended shall not exceed the 
Total Development Cost (``TDC''), as published by HUD in NOTICE PIH 
2005-26 (HA), ``Public Housing Development Cost Limits,'' for the 
number of affordable housing units that will be developed through this 
NOFA. The TDC limits can be found at on HUD's HOPE VI Main Street Web 
site, http://www.hud.gov/offices/pih/programs/ph/hope6/grants/mainstreet/ or at http://www.hudclips.org/ sub--nonhud/cgi/nph-

[[Page 26667]]

brs.cgi?d=PIHN&s1= total+development+cost& op1=AND&l=100& 
SECT1=TXT_HITS& SECT5=HEHB&u=./hudclips.cgi&p= 1&r=4&f=G.
    b. Cost Control Safe Harbors apply. Grantees must comply with HOPE 
VI Main Street Cost Control and Safe Harbor Standards as follows:
    (1) Developer Fee Safe Harbor. The HOPE VI Main Street Safe Harbor 
for the developer fee is 9% or less of total Main Street Affordable 
Housing Project costs that are funded by grant funds or leverage funds 
included in the NOFA application (less the total amount of all reserve 
accounts and less the developer fee, itself.) The maximum developer fee 
is 12% of total Main Street Affordable Housing Project costs that are 
funded by grant funds or leverage funds included in the NOFA 
application. Any fee above the 9% safe harbor must be justified and 
approved by HUD in advance. Possible justifications for exceeding the 
9% safe harbor include:
    (a) Developer independently obtains project financing, including 
tax credits. The more sources of financing, the greater the 
justification for a higher developer fee;
    (b) Developer obtains site control from an entity other than the 
Grantee. The more sites acquired the greater the justification for a 
higher developer fee;
    (c) The project is complex (e.g., in financial, legal, 
environmental and/or political terms.)
    (d) The developer bears more than 25% of the predevelopment costs;
    (e) The developer fee is deferred or paid out of positive cash flow 
from the project;
    (f) The developer guarantee(s) is for a large dollar amount in 
proportion to the project size and/or the guarantee(s) is for a long 
term.
    (2) General Contractor Fee. The HOPE VI Main Street Safe Harbor for 
the general contractor fee is as follows:
    (a) General Requirements: 6% of hard-costs (including contingency 
and bond premium);
    (b) Overhead: 2% of hard-costs plus General Requirements;
    (c) Profit: 6% of hard-costs, General Requirements and Overhead;
    (d) The maximum Safe Harbor for these combined costs is 14%, unless 
adequate justification is provided to HUD.
    6. Community and Supportive Services (``CSS''). Furnishing CSS to 
residents is voluntary, except for homeownership counseling when the 
application includes development of homeownership units. If the 
applicant chooses to furnish CSS, expenditures are limited to 15 
percent of the grant amount.
    7. Statutory time limit for award, obligation, and expenditure.
    a. The estimated date of award will be September 15, 2006.
    b. Funds available through this NOFA must be obligated on or before 
September 30, 2006.
    c. In accordance with 31 U.S.C. 1552 (Pub. L. 97-258, Sept. 13, 
1982, 96 Stat. 935; Pub. L. 101-510, div. A, title XIV, Sec. 
1405(a)(1), Nov. 5, 1990, 104 Stat. 1676.), all HOPE VI funds that were 
appropriated in FY 2005 must be expended by September 30, 2011, and all 
HOPE VI funds that were appropriated in FY 2006 must be expended by 
September 30, 2012. Any funds that are not expended by these dates will 
be canceled and recaptured by the Treasury, and thereafter will not be 
available for obligation or expenditure for any purpose.
    8. Withdrawal of Funding. If a grantee under this NOFA does not 
proceed within a reasonable time frame, HUD shall withdraw any grant 
amounts that have not been obligated. HUD shall redistribute any 
withdrawn amounts to one or more other applicants eligible for 
assistance.
    9. Transfer of Funds. HUD has the discretion to transfer funds 
available through this NOFA to any other HOPE VI program.
    10. Limitation on Eligible Expenditures. Expenditures on services, 
equipment, and physical improvements must directly relate to project 
activities allowed under this NOFA.
    11. Pre-Award Activities. Award funds shall not be used to 
reimburse pre-award expenses.

F. Other Submission Requirements

    1. Application Submission and Receipt Procedures. See Section IV.F. 
of the General Section.
    2. Timely Receipt Requirements and Proof of Timely Submission.
    a. Electronic Submission. All electronic applications must be 
received and verified by www.grants.gov by 11:59:59 p.m. eastern time 
on or before the deadline date established for this NOFA.
    An electronic time stamp is generated within the system when the 
application is successfully received by grants.gov and again when the 
application is successfully validated by grants.gov. The applicant will 
receive an acknowledgement of receipt and a tracking number from 
grants.gov with the successful transmission of the application. 
Applicants should print these receipts and save them, along with 
facsimile receipts for information provided by fax, as proof of timely 
submission. When HUD successfully retrieves the application from 
grants.gov, HUD will provide an electronic acknowledgment of receipt to 
the e-mail address provided on the SF-424. Proof of Timely Submission 
shall be the date and time that grants.gov receives and validates your 
application submittal and the date HUD receives those portions of your 
application submitted by fax. All fax transmissions must be received by 
the application deadline date and time.
    Applications received and validated by grants.gov, after the 
established due date for the program, will be considered late and will 
not be considered for funding by HUD. Similarly, applications will be 
considered late if information submitted by facsimile as part of the 
application is not received by HUD by the established deadline date and 
time. Please take into account the transmission time required for 
submitting your application via the Internet and the time required to 
submit any related documents via electronic facsimile. HUD suggests 
that applicants submit their applications early (see the General 
Section) and during the operating hours of the grants.gov Support Desk, 
so that if there are questions concerning transmission, operators will 
be available to walk you through the process. Submitting your 
application during the Support Desk hours will also ensure that you 
have sufficient time for the application to complete its transmission 
prior to the application deadline and ask any questions should you have 
any concerns in trying to submit your application.
    Applicants using dial-up connections should be aware that 
transmission should take some time before grants.gov receives it. 
Grants.gov will provide either an error or a successfully received 
transmission message. The grants.gov Support Desk reports that some 
applicants abort the transmission because they think that nothing is 
occurring during the transmission process. Please be patient and give 
the system time to process the application. Uploading and transmitting 
many files, particularly electronic forms with associated XML schemas, 
will take some time to be processed. However, applicants are advised to 
use the Internet Explorer or Netscape browsers for submitting the 
application as they have been tested on Grants.gov and have a proven 
track record. Applicants are also advised that applications that take 1 
hour or more to upload may be timed out by their Internet Service 
provider. To avoid such issues applicants should zip their files to 
shrink the size of the

[[Page 26668]]

transmissions and make sure that you are uploading the application from 
the desktop and other applications have been closed. Following these 
simple procedures will help speed the upload.
    b. Applications Receiving Waivers to Submit a Paper Copy 
Application. See the Section IV. of the General Section. Applicants 
granted a wavier to the electronic submission requirement must be 
submitted in their entirety to the applicable HUD office by the 
application deadline date. Written notification of waiver approval will 
include information on mailing instructions and timely receipt of the 
application by HUD.
    c. No Facsimiles of Entire Application. HUD will not accept fax 
transmissions from applicants who receive a waiver to submit a paper 
copy application. Paper applications must be complete and submitted, in 
their entirety, on or before the application deadline date.
    3. General Section References. Section IV of the General Section is 
hereby incorporated by reference.
    4. Forms. The following HUD standard forms are not required as part 
of the application for this NOFA:
    a. Grant Application Detailed Budget (HUD-424-CB); and
    b. Grant Application Detailed Budget Worksheet (HUD-424-CBW).

V. Application Review Information

A. Selection Criteria (Rating Factors)

1. Rating Factor 1: Capacity (up to 30 Points)
    This factor addresses whether the Applicant Team has the capacity 
and organizational resources necessary to successfully implement the 
proposed activities within the grant period.
    a. Past Experience (up to 15 points).
    (1) The applicant will earn a maximum of 15 points if the applicant 
demonstrates that the applicant's team has extensive experience of 
affordable housing development and historic preservation requirements, 
and is on schedule in implementing the Main Street Plan, that is, the 
applicant's team has developed or rehabilitated more than 5 affordable 
housing projects and 3 NRHP or traditional architecture projects over 
the past three years.
    (2) The applicant will earn a maximum of 10 points if the applicant 
demonstrates that the applicant's team has adequate experience of 
affordable housing development and historic preservation requirements, 
and is on schedule in implementing the Main Street Plan. That is, the 
applicant's team has developed or rehabilitated more than 2 affordable 
housing projects and 1 NRHP or traditional architecture projects over 
the past three years.
    (3) The applicant will earn a maximum of 5 points if the applicant 
demonstrates that the applicant team has extensive experience, gained 
over the past three years, of affordable housing development and 
historic preservation requirements, but is behind schedule in 
implementing the Main Street Plan.
    (4) The applicant will earn a maximum of 0 points if the applicant 
cannot demonstrate that its team has at least adequate experience of 
housing development and historic preservation requirements, whether 
implementation of the Main Street Plan is on schedule or not.
    b. Knowledge of Key Personnel (up to 10 points).
    (1) The applicant will earn a maximum of 10 points if the applicant 
demonstrates that its key personnel have extensive knowledge, gained 
over the past three years, of affordable housing development and 
historic preservation requirements.
    (2) The applicant will earn a maximum of 5 points if the applicant 
demonstrates that the applicant team's key personnel have adequate 
knowledge, gained over the past three years, of affordable housing 
development and historic preservation requirements.
    (3) The applicant will earn a maximum of 0 points if the applicant 
cannot demonstrate that its key personnel have at least adequate 
knowledge, gained over the past three years, of housing development and 
historic preservation requirements.
    c. Tracking and Reporting System for Production Milestones (up to 5 
points).
    (1) The applicant will earn a maximum of 5 points if the applicant 
demonstrates that a tracking and reporting system for key production 
milestones has existed and has been in use continuously for the Main 
Street Area rejuvenation effort, and the applicant demonstrates how the 
tracking and reporting system will be used to implement a grant awarded 
through this NOFA.
    (2) The applicant will earn a maximum of 3 points if a tracking and 
reporting system exists as of the application deadline date (i.e., was 
developed as a result of this NOFA), but has not been used on the Main 
Street Area rejuvenation effort, provided that the applicant 
demonstrates how it will be used to implement a grant awarded through 
this NOFA.
    (3) The applicant will receive 0 points if:
    (a) A tracking and reporting system does not exist; or
    (b) The applicant does not demonstrate how one will be used to 
implement a grant awarded through this NOFA.
2. Rating Factor 2: Need for Affordable Housing (up to 10 Points)
    a. For the applicant's PMSA/MSA or nonmetropolitan county/parish, 
if the ratio of the maximum affordable rent for a 3-person very low-
income family to the FMR of a 2-bedroom size unit (affordable rent 
divided by FMR) is equal to or less than 1.1, the applicant will 
receive 10 points. Affordable rent is 30% of the Income Limit for a 
very low-income family, divided by 12 (months per year).
    b. For the applicant's PMSA/MSA or nonmetropolitan county/parish, 
if the ratio of the maximum affordable rent for a 3-person family to 
the FMR of a 2-bedroom size unit (affordable rent divided by FMR) is 
greater than 1.1, the applicant will receive 0 points. Affordable rent 
is 30% of the Income Limit for a very low-income family, divided by 12 
(months per year).
3. Rating Factor 3: Appropriateness of the Main Street Plan (up to 20 
Points)
    a. Main Street Plan Requirements (up to 3 points).
    (1) The Main Street Plan should at a minimum:
    (a) Have had an architect, land planner, or qualified planning 
professional involved in Plan preparation.
    (b) Describe the proposed Main Street Rejuvenation redevelopment 
strategies;
    (c) Describe the proposed Main Street Rejuvenation redevelopment 
actions;
    (d) Include a map that indicates the Main Street Area and the Main 
Street Affordable Housing Project sites;
    (e) Include a narrative that refers to the map and describes the 
various planned redevelopment actions; and
    (f) Include a list of properties where affordable housing will be 
rehabilitated or developed. The list of properties must have been 
included in the Main Street Plan on or before the application deadline 
date. The properties must be described by lot/block number, street 
address, legal description, or other exact description.
    (2) Scoring:
    (a) The applicant will receive 3 points if the application 
demonstrates that the Main Street Plan includes either 5 or 6 of the 
elements listed above.
    (b) The applicant will receive 2 points if the application 
demonstrates that the Main Street Plan includes either 3 or 4 of the 
elements listed above.

[[Page 26669]]

    (c) The applicant will receive 0 points if the application does not 
demonstrate that the Main Street Plan includes at least 3 of the 
elements listed above.
    b. Main Street Plan Qualities (up to 17 points).
    (1) Commitment to Historic or Traditional Architecture.
    (a) The applicant will receive 5 points if the applicant's Main 
Street Plan demonstrates a strong commitment to the preservation of 
historic or traditional architecture.
    (b) The applicant will receive 3 points if the applicant's Main 
Street Plan addresses the preservation of historic or traditional 
architecture but does not convey a strong commitment to it.
    (c) The applicant will receive 0 points if the applicant Main 
Street Plan does not address the preservation of historic or 
traditional architecture.
    (2) Design Guidelines.
    (a) The applicant will receive 4 points if the applicant's Main 
Street Plan contains specific design guidelines that relate to historic 
or traditional architecture, and that promote universal design, as 
described in Section III.C. of this NOFA.
    (b) The applicant will receive 0 points if the Main Street Plan 
does not contain design guidelines.
    (3) Public and Private Support.
    (a) The applicant will receive 5 points if the applicant's Main 
Street Plan has received strong local public and private sector support 
demonstrated by long-term (at least two years) financial and in-kind 
service leverage commitments to the Main Street Area equal to or 
greater than 200 percent of the applicant's requested grant amount.
    (b) The applicant will receive 3 points if the applicant's Main 
Street Plan has received strong local public and private sector support 
demonstrated by long-term (at least two years) financial and in-kind 
service leverage commitments to the Main Street Area equal to or 
greater than 100 percent, but less than 200 percent of the applicant's 
requested grant amount.
    (c) The applicant will receive 0 points if the applicant's Main 
Street Plan has received local public and private sector support 
demonstrated by long-term (at least two years) financial and in-kind 
service leverage commitments to the Main Street Area less than 100 
percent of the applicant's requested grant amount.
    (4) Promotion and Marketing.
    (a) The applicant will receive 3 points if the applicant's Main 
Street Plan SETS FORTH A PLAN to promote and market the Main Street 
Area rejuvenation effort to financiers, other parties that may be 
involved in the rejuvenation effort and to possible future residents of 
the Main Street Affordable Housing Project, including (in accordance 
with affirmative fair housing marketing requirements) the population 
that is least likely to apply.
    (b) The applicant will receive 1 point if the applicant's Main 
Street Plan includes a discussion of either promotion or marketing, but 
not both, of the Main Street Area rejuvenation effort to parties that 
may be involved in the rejuvenation effort and to possible future 
residents of the Main Street Affordable Housing Project, including (in 
accordance with affirmative fair housing marketing requirements) the 
population that is least likely to apply.
    (c) The applicant will receive 0 points if the applicant's Main 
Street Plan does not includes a discussion of promotion or marketing of 
the Main Street Area rejuvenation effort.
4. Rating Factor 4: Readiness and Appropriateness of the Main Street 
Affordable Housing Project (up to 25 Points)
    a. Site Control (up to 5 points).
    (1) Site control is an indicator that the applicant is ready to 
move forward with the rehabilitation efforts that are included in the 
application and the NOFA.
    (2) Scoring:
    (a) The applicant will receive 5 points if the application includes 
documentation that demonstrates site control over (all of) the 
affordable housing site(s) that comprise the Main Street Affordable 
Housing Project, as included in the application's Section L: Map of the 
Main Street Area.
    (b) The applicant will receive 0 points if the application does not 
include documentation that demonstrates site control over the 
affordable housing sites that comprise the Main Street Affordable 
Housing Project, as included in the application's Section L: Map of the 
Main Street Area.
    b. Main Street Affordable Housing Project Leverage (up to 10 
points).
    (1) In this NOFA, there are three categories of cash and in-kind 
contributions (``leverage''), Main Street Area Leverage, Main Street 
Housing Project Leverage, and match:
    (a) Main Street Area Leverage includes leverage used for activities 
related to the Main Street Area rejuvenation effort as a whole, and 
does not include Main Street Affordable Housing Project leverage. Note 
that long-term Main Street Area Leverage is rated above in Section 
V.A.3.b. of this NOFA, entitled ``Public and Private Support.''
    (b) Main Street Affordable Housing Project Leverage includes 
leverage that is specifically used only for development of the Main 
Street Affordable Housing Project.
    (c) Match is a separate, statutorily required sub-group of Main 
Street Affordable Housing Project Leverage.
    (2) This Rating Factor measures Main Street Affordable Housing 
Project Leverage only. The amount of Main Street Affordable Housing 
Project Leverage includes the match amount. Points are assigned based 
on the following scale:

------------------------------------------------------------------------
                                                                 Points
             Leverage as percent of grant amount                awarded
------------------------------------------------------------------------
Less than 50 percent.........................................          0
Greater than or equal to 50 percent but less than 100 percent          5
100 percent or more..........................................         10
------------------------------------------------------------------------

    c. Retention of historic or traditional architecture (up to 5 
points).
    (1) The applicant will receive 5 points if the application 
demonstrates that the buildings in the project will maintain all of the 
historic or traditional architecture and design features on all floors 
of the buildings.
    (2) The applicant will receive 3 points if the application 
demonstrates that the buildings in the project will retain some of the 
historic or traditional architecture and design features on some or all 
of the floors of the buildings.
    (3) The applicant will receive 0 points if the application does not 
demonstrate that the buildings in the project will retain historic or 
traditional architecture and design features.
    d. Reservation for Very Low-Income Families (up to 3 points).
    (1) The applicant will receive 3 points if the ratio of units 
reserved for very low-income initial residents to units reserved for 
low-income residents (very low-income divided by low-income) is greater 
than 20 percent of the total affordable housing units in the project.
    (2) The applicant will receive 0 points if the ratio of units 
reserved for very low-income initial residents to units reserved for 
low-income residents (very low-income divided by low-income) is less 
than or equal to 20 percent of the total affordable housing units in 
the project.
    e. Economic Opportunities for Low- and Very Low-Income Persons 
(Provision of Section 3) (up to 2 Points).
    HOPE VI grantees must comply with Section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very Low-Income Persons in Connection with assisted 
Projects) and its implementing regulations at 24 CFR

[[Page 26670]]

part 135. One of the purposes of the assistance is to give, to the 
greatest extent feasible, and consistent with existing Federal, State 
and local laws and regulations, job training, employment, contracting 
and other economic opportunities to section 3 residents and section 3 
business concerns.
    (1) The applicant will receive 2 points if the application includes 
a feasible plan to implement Section 3 that not only meets the minimum 
requirements described in Section (1) above, but also exceeds those 
requirements.
    The applicant will receive 0 points if the application does not 
include a feasible plan to implement Section 3 that not only meets the 
minimum requirements described in Section (1) above, but also exceeds 
those requirements.
    f.  Energy Star (up to 1 point).
    (1) Promotion of Energy Star compliance is a HOPE VI Main Street 
program goal. See ``Program Requirements,'' Section III.C. of this 
NOFA.
    (2) You will receive 1 point if your application demonstrates that 
you will:
    (a) Use Energy Star-labeled products;
    (b) Promote Energy Star design of affordable units; and
    (c) If your application includes the development of homeownership 
units, include Energy Star in required homeownership counseling.
    (2) You will receive 0 points if your application does not 
demonstrate that you will perform (a) and (b) above, and, if 
applicable, (c) above.
5. Rating Factor 5: Program Administration and Fiscal Management (up to 
13 Points)
    a. Program Schedule (up to 5 points).
    (1) The applicant may receive a maximum of 5 points if the 
applicant demonstrates that the milestones in the Program Schedule are 
realistic and achievable. That is, the application demonstrates that 
the applicant has performed the following actions and, where 
applicable, has obtained information that was used in developing the 
Program Schedule:
    (a) Contacted the State Historic Preservation Officer, the local 
HUD Field Office, architects, materials suppliers, and other parties 
that milestones depend upon to ensure that the milestones can 
reasonably be met;
    (b) Checked to see if any litigation or court orders exist that 
will affect the milestones; and
    (c) Prepared a chart that states estimated production milestones, 
their relative time frames, and each milestone's time to completion, 
e.g., Gantt Chart.
    (2) The applicant may receive a maximum of 3 points if the 
applicant has performed two of the three actions in (a) through (c) 
above, and, where applicable, has obtained information that was used in 
developing the Program Schedule.
    (3) The applicant will receive 0 points if the applicant has not 
performed at least two of the three actions in (a) through (c) above.
    b. Fiscal Management (up to 6 points).
    (1) If the applicant shows fiscal management controls, a 
procurement system, and a results-oriented management structure that 
are adequate to manage a grant from this NOFA, and the applicant 
demonstrates that their management structure and controls are results-
oriented, the applicant will receive 6 points;
    (2) If the applicant shows fiscal management controls, a 
procurement system, and management structure and controls that are 
adequate to manage a grant from this NOFA, but the applicant does not 
demonstrate that the applicant's management structure and controls are 
results-oriented, the applicant will receive 3 points;
    (3) If the applicant does not describe its program management 
structure and fiscal management controls and does not show that they 
are adequate, the applicant will receive 0 points.
    c. Evaluation (up to 2 points).
    (1) If the applicant's required Evaluation Plan demonstrates the 
methods that will be used, and data that will be collected, to evaluate 
the indicators and outcomes of this grant, including, at a minimum, the 
indicators and outcomes stated in the applicant's Logic Model, the 
applicant will receive 2 points.
    (2) If the applicant's required Evaluation Plan does not 
demonstrate the methods that will be used, and data that will be 
collected, to evaluate the indicators and outcomes of this grant, 
including, at a minimum, the indicators and outcomes stated in the 
applicant's Logic Model, the applicant will receive 0 points.
6. Rating Factor 6: Incentive Criteria on Regulatory Barrier Removal--
(up to 2 Points)
    a. Description.
    (1) HUD's Notice, ``America's Affordable Communities Initiative, 
HUD's Initiative on Removal of Regulatory Barriers: Announcement of 
Incentive Criteria on Barrier Removal in HUD's FY 2004 Competitive 
Funding Allocations,'' Federal Register Docket Number FR-4882-N-03, 
published on March 22, 2004, provides that most HUD competitive NOFAs 
will include an incentive for local and state governments to decrease 
their regulatory barriers to the development of affordable housing.
    (2) Form HUD-27300 contains questions that explore the applicant's 
efforts to decrease regulatory barriers.
    b. Scoring.
    (1) If the applicant is considered a local unit of government with 
land use and building regulatory authority, an agency or department of 
a local unit of government, a nonprofit organization, or other 
qualified applicant applying for funding for a project located in the 
jurisdiction of the local unit of government, the applicant is invited 
to answer the 20 questions in Part A of form HUD-27300. For those 
applications in which regulatory authority is split between 
jurisdictions (e.g., county/parish and town), the applicant should 
answer the question for that jurisdiction that has regulatory authority 
over the issue at question.
    (a) If the applicant checked Column 2 for five to ten questions 
from Part A, the applicant will receive 1 point in the NOFA evaluation.
    (b) If the applicant checked Column 2 for 11 or more questions from 
Part A, the applicant will receive 2 points in the NOFA evaluation.
    (2) Part B of the form is for an applicant that is a state 
government or an agency or department of a state government. State 
governments are not eligible to apply for this NOFA and, as such, Part 
B of the form is not applicable.
    (3) In no case will an applicant receive greater than two points 
for barrier removal activities.
    (4) An applicant must submit the documentation requested in the 
questionnaire or provide a Web site address (URL) where the 
documentation can be readily found, to receive the bonus points for 
this policy priority. See Section IV. of the General Section for 
documentation requirements.
7. Rating Factor 7: RC/EZ/EC-IIs--(up to 2 Points)
    a. RC/EZ/EC-IIs. 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 the United 
States Department of Agriculture 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

[[Page 26671]]

(TIUP). (For ease of reference in this notice, all of the federally 
designated areas are collectively referred to as ``RC/EZ/EC-IIs'' and 
residents of any of these federally designated areas as ``RC/EZ/EC-II 
residents.'') This NOFA contains a certification, ``Certification of 
Consistency with RC/EZ/EC Strategic Plan'' (form HUD-2990), that must 
be completed for the applicant to be considered for RC/EZ/EC-II bonus 
points. A list of RC/EZ/EC-IIs can be obtained from HUD's Web page at 
http://www.hud.gov/cr. Applicants can determine if their program/
project activities are located in one of these designated areas by 
using the locator on HUD's Web site at http://www.hud.gov/crlocator.

B. Review and Selection Process

    1. HUD's selection process is designed to ensure that grants are 
awarded to eligible local governments with the most meritorious 
applications.
    2. Application Screening.
    a. HUD will screen each application to determine if:
    (1) It meets the threshold criteria listed in Section III.C. of 
this NOFA; and
    (2) It is deficient, i.e., contains any technical deficiencies.
    b. Corrections to Deficient Applications. The subsection entitled, 
``Corrections to Deficient Applications,'' in Section V.B. of the 
General Section applies. Clarifications or corrections of technical 
deficiencies in accordance with the information provided by HUD must be 
submitted within 14 calendar days of the date of receipt of the HUD 
notification.
    c. Applications that will not be rated or ranked.
    (1) HUD will not rate or rank applications that are deficient at 
the end of a 14 calendar day cure period, as described in Section V.B. 
above and the General Section.
    (2) HUD will not rate or rank applications that have not met the 
thresholds described in Section III.C. of this NOFA. Such applications 
will not be eligible for funding.
    3. Preliminary Rating and Ranking.
    a. Rating.
    (1) HUD staff will preliminarily rate each eligible application, 
SOLELY on the basis of the Rating Factors described in Section V.A. of 
this NOFA.
    (2) When rating applications, HUD reviewers will not use any 
information included in any application submitted for another NOFA.
    (3) HUD will assign a preliminary score for each Rating Factor and 
a preliminary total score for each eligible application.
    (4) The maximum number of points for each application is 100, plus 
a possible 2 RC/EZ/EC-II bonus points.
    (5) Minimum Score. Applications that do not have a preliminary 
score of at least 50 will not be eligible for funding.
    b. Ranking.
    (1) After preliminary review, applications with a minimum score of 
50 or above will be ranked in score order.
    4. Final Panel Review.
    a. A Final Review Panel made up of HUD staff will:
    (1) Review the Preliminary Rating and Ranking documentation to:
    (a) Ensure that any inconsistencies between preliminary reviewers 
have been identified and rectified; and
    (b) Ensure that the Preliminary Rating and Ranking documentation 
accurately reflects the contents of the application.
    (2) Assign a final score to each application; and
    (3) Recommend for selection the most highly rated applications, 
subject to the amount of available funding, in accordance with the 
allocation of funds described in Section II of this NOFA.
    5. HUD reserves the right to make reductions in funding for any 
ineligible items included in an applicant's proposed budget.
    6. In accordance with the FY 2005 HOPE VI appropriation, HUD may 
not use HOPE VI funds, including HOPE VI Main Street funds, to grant 
competitive advantage in awards to settle litigation or pay judgments.
    7. Tie Scores. If two or more applications have the same score and 
there are insufficient funds to select all of them, HUD will select for 
funding the application(s) with the highest score for the Main Street 
Plan Qualities Rating Factor. If a tie remains, HUD will select for 
funding the application(s) with the highest score for the Capacity 
Rating Factor. HUD will select further tied applications with the 
highest score for the Need Rating Factor.
    8. Remaining Funds.
    a. HUD reserves the right to reallocate remaining funds from this 
NOFA to other eligible activities under Section 24 of the Act.
    (1) If the total amount of funds requested by all applications 
found eligible for funding under Section V.B. of this NOFA is less than 
the amount of funds available from this NOFA, all eligible applications 
will be funded and those funds in excess of the total requested amount 
will be considered remaining funds.
    (2) If the total amount of funds requested by all applications 
found eligible for funding under Section V.B. of this NOFA is greater 
than the amount of funds available from this NOFA, eligible 
applications will be funded until the amount of non-awarded funds is 
less than the amount required to feasibly fund the next eligible 
application. In this case, the funds that have not been awarded will be 
considered remaining funds.
    9. The following sub-sections of Section V. of the General Section 
are hereby incorporated by reference:
    a. HUD's Strategic Goals;
    b. Policy Priorities;
    c. Threshold Compliance;
    d. Corrections to Deficient Applications;
    e. Rating; and
    f. Ranking.

VI. Award Administration Information

A. Award Notices

    1. Initial Announcement. The HUD Reform Act prohibits HUD from 
notifying the applicant as to whether or not the applicant has been 
selected to receive a grant until HUD has announced all grant 
recipients. If the application has been found to be ineligible or if it 
did not receive enough points to be funded, the applicant will not be 
notified until the successful applicants have been notified. HUD will 
provide written notification to all applicants, whether or not they 
have been selected for funding.
    2. Authorizing Document. The notice of award signed by the 
Assistant Secretary for Public and Indian Housing (grants officer) is 
the authorizing document. This notice will be delivered via the United 
States Postal Service to the applicant's authorized signatory at the 
applicant's address, as stated on the SF-424.
    3. Applicant Debriefing. For a period of at least 120 days, 
beginning 30 days after the awards for assistance are announced 
publicly, HUD will provide a debriefing to an application that requests 
one. All debriefing requests must be made in writing by the authorized 
official whose signature appears on the SF-424 or his/her successor in 
office, and submitted to the person or organization identified for 
``Technical Assistance'' in Section VII.B. of this NOFA. Information 
provided during a debriefing will include, at a minimum, the final 
score you received for each Rating Factor.
    4. General Section References. The following sub-sections of 
Section VI.A. of the General Section are hereby incorporated by 
reference:
    a. Adjustments to Funding.

[[Page 26672]]

B. Administrative and National Policy Requirements

1. Administrative Requirements
    a. Grant Agreement Execution. The grantee must execute the Grant 
Agreement within 90 days after HUD mails the Grant Agreement to the 
grantee.
    b. Grant term. The time period for completion shall not exceed 30 
months from the date the NOFA award is executed.
    c. Sub-Grants and Contracts. Grant funds may be expended directly 
by the applicant or they may be granted or loaned by the applicant to a 
third-party procured developer who is undertaking the development of 
the Project.
    d. Reasonable Time Frame. Grantees must proceed within a reasonable 
time frame to complete the following milestone activities:
    (1) Development Proposal. Grantees must submit a development 
proposal for the project within 6 months after the grant award date or, 
if State Historic Preservation Officer approval is necessary, 9 months 
after the grant award date.
    (a) Development proposals must include the following information:
    (i) Identification of parties to the project development;
    (ii) Activities and relationships of parties, e.g., Party A will 
loan $50,000 to Party C via a hard loan with an interest rate of 6 
percent, with a 30-year amortization and a 15-year term.
    (iii) Financing, i.e., Sources and Uses in the form HUD-52861 
format;
    (iv) Unit description, i.e., unit number and sizes.
    (v) Site locations, i.e., lot and block, street address, or legal 
description;
    (vi) Development construction cost estimate; and
    (vii) Certification that open competition will be used by the 
grantee to select a development partner and/or owner entity, if 
applicable.
    (2) First Construction Start. Grantees must start housing unit 
construction within 12 months after the grant award date or, if SHPO 
approval is necessary, 15 months after grant award date.
    (3) Last Construction Completion. Grantees must complete 
construction (receive Certificates of Occupancy for all units) within 
30 months from the grant award date.
    (4) In determining reasonableness of such time frame, HUD will take 
into consideration those delays caused by factors beyond the 
applicant's control.
    (5) In accordance with the threshold requirement in Section III.C. 
of this NOFA and the threshold documentation in Section IV.B. of this 
NOFA, the above time frames must be stated in a Program Schedule that 
includes the following milestones, at a minimum:
    (a) Grant Award Date (assume two months after application deadline 
date);
    (b) Grant Agreement Execution Date (the Grant Agreement will be 
mailed to the grantee within one month after notice of award. The 
grantee will be given a maximum of 90 days to execute the Agreement);
    (c) Development Plan Submission Date;
    (d) Date of closing of financing of the first phase. If the 
applicant plans not to have a financial closing, it must state so in 
the Schedule;
    (e) Date of the start of construction of the first housing unit; 
and
    (f) Date of the completion of construction of the last housing 
unit.
    e. Preliminary Environmental Approval Only. HUD's notification of 
award to a selected applicant constitutes a preliminary approval by HUD 
subject to the completion of an environmental review of the proposed 
sites in accordance with 24 CFR part 50. See Section III.C. of this 
NOFA for information about environmental requirements.
    f. Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), the application may not 
propose to provide financial assistance for acquisition or construction 
(including rehabilitation) of properties located in an area identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless:
    (1) The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    (2) Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a Grant Agreement.
    g. Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), the application may not target 
properties in the Coastal Barrier Resources System.
2. National Policy Requirements
    a. See references to the General Section in Section III of this 
NOFA.
3. Reporting
    a. Quarterly Administrative and Compliance Checkpoints Report 
(Quarterly Report).
    (1) If the applicant is selected for funding, the applicant must 
submit a Main Street Quarterly Report to HUD. The report will be 
completed on-line. The Grantee will enter into the Quarterly Progress 
Report:
    (a) On a quarterly basis:
    (i) Administrative and production milestones, called 
``Checkpoints,'';
    (ii) Financial status, by Budget Line Item as listed on form HUD-
52825-A, ``HOPE VI Budget,'' including the grant budget, amounts 
authorized by HUD for expenditure, and amounts expended to date; and
    (iii) A short status narrative.
    (b) On an annual basis, the Total real estate tax assessment for 
the census tract that includes the Main Street Area.
    (2) HUD will provide training and technical assistance on the 
filing and submitting of Main Street Quarterly Progress Reports.
    (3) Filing of Quarterly Progress Reports is mandatory for all 
grantees, and failure to do so within the required quarterly time frame 
will result in suspension of grant funds until the report is filed and 
approved by HUD.
    (4) Grantees will be held to the milestones that are reported in 
the Quarterly Progress Report, as approved by HUD.
    4. LOCCS. Grantees must report all obligations and expenditures in 
HUD's Line of Credit Control System (LOCCS), or its successor system, 
on a quarterly basis.
    5. Logic Model Reporting. The grantee's Logic Model will be based 
upon the Logic Model included in the application. Provided that the 
Logic Model complies with the requirements of this NOFA, the General 
Section and the Grant Agreement, HUD will approve the Logic Model's 
outputs and outcomes at the time of approval of the Development 
Proposal. Beginning after HUD approval, at a minimum, the grantee will 
be required to submit a completed Logic Model showing outputs and 
outcomes achieved quarterly. Responses to the management questions and 
the ROI Statement in the Logic model for the Main Street program must 
be submitted annually. See Logic Model reporting in the General 
Section.
    6. Information for Research and Evaluation Studies. As a condition 
of the receipt of financial assistance under a HUD Program NOFA, all 
successful applicants will be required to cooperate with all HUD staff 
or contractors performing HUD-funded research and evaluation studies.
    7. Final Audit. Grantees are required to obtain a complete final 
closeout audit of the grantee financial statements for the grant funds. 
The audit must be completed by a certified public accountant (CPA) in 
accordance with generally accepted government audit

[[Page 26673]]

standards, if the Grantee expends $500,000 or more in a calendar or 
program year. A written report of the audit must be forwarded to HUD 
within 60 days of issuance. Grant recipients must comply with the 
requirements of 24 CFR part 84 or 24 CFR part 85 as stated in OMB 
Circulars A-110, A-87, and A-122, as applicable.
    8. Final Report.
    a. Within 30 days after the grantee obtains the results of the 
Final Audit, the grantee shall submit a final report. The final report 
will include a financial report, a narrative evaluating overall 
performance against its HOPE VI Main Street application and Main Street 
Quarterly Progress Report, and a completed Logic Model, form HUD-96010, 
including responses to the management questions and the ROI Statement. 
Grantees shall use quantifiable data to measure performance against 
goals and objectives outlined in its application. The financial report 
shall contain a summary of all expenditures made from the beginning of 
the grant agreement to the end of the grant agreement and shall include 
any unexpended balances.
    b. Racial and Ethnic Data. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. It has adopted the Office 
of Management and Budget's Standards for the Collection of Racial and 
Ethnic Data. In view of these requirements, you should use form HUD-
27061, Racial and Ethnic Data Reporting Form (instructions for its 
use), found on http://www.HUDclips.org; a comparable program form; or a 
comparable electronic data system.
    c. The final narrative, financial report, closeout documentation as 
required by HUD, and Logic Model shall be due to HUD 90 days after 
either the full expenditure of funds, or when the grant term expires, 
whichever comes first.

VII. Agency Contacts

A. Technical Corrections to the NOFA.

    1. Technical corrections to this NOFA will be posted to the 
grants.gov Web site.
    2. Any technical corrections will also be published in the Federal 
Register.
    3. The applicant is responsible for monitoring these sites during 
the application preparation period. Applicants may sign up for the 
grants.gov notification service. Applicants signed up for the service 
will receive notification from grants.gov if HUD issues any 
modifications to the NOFA, Application Package, or Application 
Instructions.

B. Technical Assistance

     Before the application deadline date, HUD staff will be available 
to provide the applicant with general guidance and technical assistance 
on this NOFA. However, HUD staff is not permitted to assist in 
preparing the application. If the applicant has a question or needs 
clarification, the applicant may call Lar Gnessin at (202) 708-0614, 
ext. 2676, send an e-mail to [email protected], or the 
applicant may contact Ms. Dominique Blom, Acting Deputy Assistant 
Secretary for Public Housing Investments, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Room 4130, Washington, DC 
20410-5000; telephone (202) 401-8812; fax (202) 401-2370 (these are not 
toll-free numbers). Persons with hearing and/or speech impairments may 
access these telephone numbers via text telephone (TTY) by calling the 
toll-free Federal Information Relay Service at (800) 877-8339. For 
technical support about downloading an application, registering with 
grants.gov, and submitting an application, please call grants.gov 
Customer Support at 800-518-GRANTS (This is a toll-free number) or e-
mail grants.gov at support@grants.

C. General Information

    General information about HUD's HOPE VI programs can be found on 
the Internet at http://www.hud.gov/offices/pih/programs/ph/hope6/. 
General information specifically about HUD's HOPE VI Main Street 
Program can be found on the Internet at http://www.hud.gov/offices/pih/programs/ph/hope6/grants/mainstreet/.

VIII. Other Information

    A. General Section References. The following sub-sections of 
Section VIII. of the General Section are hereby incorporated by 
reference:
    1. Executive Order 13132, Federalism;
    2. Public Access, Documentation and Disclosure;
    3. Section 103 of the HUD Reform Act; and
    4. The FY 2005 HUD NOFA Process and Future HUD Funding Processes.
    B. Environmental Impact. A ``Finding of No Significant Impact'' 
(FONSI) with respect to the environment has been made for this notice 
in accordance with HUD regulations at 24 CFR part 50 that implement 
Section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332). The FONSI is available for public inspection between 8 
a.m. and 5 p.m. in the Office of the General Counsel, Regulations 
Division, U.S. Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 10276, Washington, DC 20410-0500.
    C. Paperwork Reduction Act Statement. The information collection 
requirements contained in this document have been approved by the 
Office of Management and Budget (OMB), under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2577-
0208. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor, and 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 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.

[FR Doc. 06-4084 Filed 5-4-06; 8:45 am]
BILLING CODE 4210-01-P