[Federal Register Volume 72, Number 37 (Monday, February 26, 2007)]
[Notices]
[Pages 8572-8578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3142]



[[Page 8571]]

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Part III





Department of Housing and Urban Development





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Notice of Funding Availability (NOFA): Section 202 Demonstration Pre-
Development Grant Program; Notice

  Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / 
Notice  

[[Page 8572]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5078-N-01]


Notice of Funding Availability (NOFA): Section 202 Demonstration 
Pre-Development Grant Program

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of Funding Availability.

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Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Housing.
    B. Funding Opportunity Title: Section 202 Demonstration Pre-
Development Grant Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The OMB approval number for this 
NOFA is 2502-0267. The Federal Register number is FR-5078-N-01.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.157, 
Section 202 Demonstration Pre-Development Grant Program.
    F. Dates: The application deadline date is Wednesday, March 28, 
2007. All applications must be received and validated by Grants.gov no 
later than 11:59:59 p.m. eastern time on the application deadline date. 
Refer to the General Section of the Fiscal Year (FY) 2006 SuperNOFA (71 
FR 3382), published January 20, 2006; the NOFA for HUD's discretionary 
programs (71 FR 11712), published March 8, 2006; and Section IV of this 
program NOFA for further information about application, submission, and 
timely receipt requirements.
    G. Additional Overview Content Information: Applicants must be 
registered to apply online at Grants.gov. In addition to reviewing this 
program section, private nonprofit organizations and nonprofit consumer 
cooperatives interested in applying for funding under this program 
should carefully review the General Section of the FY 2006 SuperNOFA 
(71 FR 3382), published January 20, 2006; the NOFA for HUD's 
discretionary programs (71 FR 11712), published March 8, 2006; the 
technical corrections to the FY 2006 SuperNOFA (71 FR 25208), published 
April 28, 2006; the notice entitled ``Notice of HUD's Fiscal Year (FY) 
2006 Notice of Funding Availability, Policy Requirements and General 
Section to SuperNOFA for HUD's Discretionary Grant Programs; 
Correction'' (71 FR 44038), published August 3, 2006; the notice 
entitled ``Notice of HUD's Fiscal Year (FY) 2006, Notice of Funding 
Availability, Policy Requirements and General Section to SuperNOFA for 
HUD's Discretionary Grant Programs; Additional Information Regarding 
Applicant Registration'' (71 FR 45063), published August 8, 2006; and 
the information detailed in this program NOFA, which covers the 
registration, submission, timely receipt, and additional requirements 
for this funding opportunity.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    The purpose of this Demonstration Pre-Development Grant Program is 
to assist Sponsors of projects that receive Fund Reservation Awards 
pursuant to the FY 2006 SuperNOFA for the Section 202 Supportive 
Housing for the Elderly Program by providing predevelopment grant 
funding for architectural and engineering work, site control, and other 
planning-related expenses that are eligible for funding under the 
Section 202 Supportive Housing for the Elderly Program. Subsequent to 
providing predevelopment grant funding to the selected applicants, HUD 
will assess the impact of the availability of such funding on the 
ability of project Sponsors to expedite the development processing of 
projects from Section 202 Fund Reservation to Initial Closing within 18 
months.
    HUD is aware of the complexities of developing Section 202 projects 
and understands that a lack of predevelopment funding may be a 
contributing factor in many instances where project Sponsors are not 
able to move their approved projects from Fund Reservation award to 
Initial Closing within the required 18-month time frame. Funding under 
this program is not intended to duplicate Section 202 Capital Advance 
funding, but rather to provide a source of funding for predevelopment 
costs that would otherwise not be reimbursable until Initial Closing or 
would be payable from eligible funding resources secured outside of 
Section 202 Capital Advance funding.

B. Authority

    The Section 202 Demonstration Pre-Development Grant Program is 
authorized by 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).

II. Award Information

A. Funding Available

    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), 
authorized approximately $20 million for predevelopment grants to 
private nonprofit organizations and consumer cooperatives in connection 
with the development of housing under the Section 202 Supportive 
Housing for the Elderly Program. The total dollar amount that is 
available under this Demonstration Pre-Development Grant Program is 
approximately $19.8 million, due to a one percent rescission pursuant 
to the Department of Defense, Emergency Supplemental Appropriations to 
Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 
2006 (Pub. L. 109-148, approved December 30, 2005).

B. Funding Process

    HUD will only make offers to fully fund as many applications as 
possible from the $19.8 million allocated for Sponsors that receive 
Section 202 Fund Reservations pursuant to the FY 2006 SuperNOFA. 
Applicants selected for funding under the FY 2006 Section 202 
Supportive Housing for the Elderly NOFA are not guaranteed funding 
under this Demonstration Pre-Development Grant Program.

C. Maximum Grant Award

    The maximum grant amount per single application is $400,000. 
However, no more than $800,000 may be awarded to a single entity or its 
affiliated organizations. The amount of funding requested must be 
within the maximum grant award amounts or the application will not 
receive funding consideration.

D. Reduction of Requested Grant Amount

    HUD may make an award in an amount less than requested, if:
    1. HUD determines that any of the proposed predevelopment 
activities are ineligible for funding under the Section 202 Supportive 
Housing for the Elderly Program;
    2. HUD determines that an eligible applicant has not been able to 
provide sufficient evidence to support the proposed cost of an eligible 
predevelopment item or activity;
    3. HUD determines that a reduced grant would prevent duplicative 
federal funding; or
    4. HUD determines that proposed costs for predevelopment activities 
are

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not based on comparable costs for eligible items and activities in the 
applicant's community. HUD field office staff will review proposed 
costs in accordance with customary and reasonable costs for such items 
within the geographical jurisdiction of the respective Multifamily Hub 
and/or Multifamily Program Center Office. If requested by HUD, eligible 
applicants must provide supportable evidence of comparable costs for 
proposed activities.

E. Term of Funded Activities

    The grant term is 18 months from the date of the Section 202 
Supportive Housing for the Elderly Agreement Letter to Initial Closing. 
Funds not expended by the end of the grant term are subject to 
recapture and/or repayment if expended on ineligible activities. 
Failure to complete the development processing of the Section 202 
project by the end of the grant term may result in grant termination, 
grant reduction, or other action deemed appropriate by HUD. HUD may use 
past performance in making future funding decisions.

III. Eligibility Information

A. Eligible Applicants

    All private nonprofit organizations and nonprofit consumer 
cooperatives that submitted an application for funding consideration 
under the FY 2006 SuperNOFA for the Section 202 Supportive Housing for 
the Elderly Program are eligible to apply for funding under this 
Demonstration Pre-Development Grant Program. (Please refer to the 
Section 202 program NOFA (71 FR 12009), published March 8, 2006, for a 
discussion on the eligibility criteria for the Section 202 program.) 
However, funding awards under this Demonstration Pre-Development Grant 
Program will be restricted to those applicants that are selected for 
Fund Reservation Awards under the FY 2006 SuperNOFA for the Section 202 
Supportive Housing for the Elderly Program. Funding under this 
Demonstration Pre-Development Grant Program will not be ``fair shared'' 
to each HUD office. Ineligible applicants under this program include:
    1. Applicants that failed to submit a request for Fund Reservation 
under the FY 2006 Section 202 program NOFA;
    2. Applications from eligible applicants that do not receive a Fund 
Reservation Award under the FY 2006 SuperNOFA for the Section 202 
program;
    3. Applications from applicants that are ineligible under the 
Section 202 program, including public bodies and instrumentalities of 
public bodies; and
    4. Applicants submitting proposals involving mixed-financing for 
additional units.

B. Cost Sharing or Matching

    No match required.

C. Other

    1. Requirement and Procedures. To receive and administer funding 
under this Demonstration Pre-Development Grant Program, applicants must 
fully satisfy the eligibility requirements for participation in the 
Section 202 Supportive Housing for the Elderly Program and comply with 
the following:
    a. Statutory and Regulatory Requirements. You must comply with all 
statutory, regulatory, threshold, and public policy requirements listed 
in the General Section of the FY 2006 SuperNOFA (71 FR 3382), published 
January 20, 2006.
    b. Allowable Use of Funds. Pre-Development Grant Program funds may 
be used to cover the cost of predevelopment activities relating to the 
development of supportive housing for the elderly under the Section 202 
program as described in Section IV(E)(1) (``Eligible Activities''). 
However, before a grantee can enter into a contract for professional 
services, the entity must receive approval under the form HUD-2530 
clearance process. Such entities include, but are not limited to, 
housing consultants (including those instances where eligible Sponsors 
proposed to provide such services), general contractors, and management 
agents.
    c. Organizational Costs. Eligible organizational expenses and/or 
costs are limited to those incurred in connection with the organization 
of an Owner entity, pursuant to the requirements of the Section 202 
Supportive Housing for the Elderly Program.
    d. Site Control. Applicants are required to provide evidence of 
site control, consistent with the requirements of the Section 202 
program, as a condition to being funded under the FY 2006 Section 202 
NOFA. Applicants who receive funding awards under this Pre-Development 
Grant Program NOFA may utilize this funding to extend site control in 
accordance with the site control requirements under the Section 202 
Supportive Housing for the Elderly Program. See the FY 2006 Section 202 
program NOFA (71 FR 12009), published March 8, 2006, for further 
discussion.
    e. Phase I and Phase II Environmental Site Assessments (ESA). The 
requirements for Phase I and II ESAs are the same as those that apply 
to the Section 202 Supportive Housing for the Elderly Program and are 
contained in the FY 2006 Section 202 program NOFA and the Notice 
entitled, ``Notice of HUD's Fiscal Year (FY) 2006 Notice of Funding 
Availability, Policy Requirements and General Section to SuperNOFA for 
HUD's Discretionary Grant Programs; Correction'' (71 FR 44038), 
published August 3, 2006.
    f. False Statements. See the General Section of the FY 2006 
SuperNOFA.
    2. Program-Related Threshold Requirements. In addition to the 
threshold requirements in the General Section of the FY 2006 SuperNOFA, 
applicants must adhere to all program-specific threshold requirements 
as detailed in this Pre-Development Grant Program NOFA. HUD will 
consider an application non-responsive to this NOFA and will not accept 
it for processing if the applicant:
    a. is determined to be ineligible (Please refer to Section III(A) 
of this NOFA for a more detailed discussion on ineligible applicants);
    b. requested more than the maximum grant amount;
    c. is granted a waiver to submit a paper application, but fails to 
submit the required original and four copies; or
    d. failed to submit the threshold requirements as identified by the 
asterisk (*) in Section IV(B) of this Pre-Development Grant Program 
NOFA by the deadline date.

IV. Application and Submission Information

A. Addresses To Request Application Package

    All information needed for the preparation and submission of this 
application is included in this Pre-Development Grant Program NOFA and 
the General Section of the FY 2006 SuperNOFA (71 FR 3382), published 
January 20, 2006. Copies of the General Section, this Pre-Development 
Grant Program NOFA, and needed forms are found in the instructions and 
application downloads, which is on the Grants.gov Web site at http://www.Grants.gov. If you have difficulty accessing the information, you 
may call the Grants.gov Support desk toll-free at (800) 518-GRANTS or 
e-mail your questions to [email protected]. The Help Desk staff will 
assist you in accessing the information.
    Your application must be transmitted electronically using 
www.Grants.gov unless you request and receive a waiver of the 
requirement for electronic application submittal. See the General 
Section for further information and instructions pertaining to 
electronic

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application submission and waiver request requirements.
    For applicants receiving a waiver to submit a paper application, an 
original and four copies of the completed application package must be 
received by the appropriate local HUD office on or before the deadline 
date. See http://www.hud.gov/offices/adm/grants/fundsavail.cfm (select 
``Important Information Related to the SuperNOFA'' and then select 
``Field Offices'') for a complete listing of the Multifamily Hub 
Offices and Multifamily Program Centers.

B. Content and Form of Application Submission

    You should ensure that your application is complete before 
transmitting it to the following Web site: http://www.grants.gov and, 
in cases where a waiver of electronic submission requirement is 
granted, an original and four copies must be submitted to the 
appropriate HUD office. Upon receipt of the application by HUD staff, 
HUD will screen all applications to determine if there are any curable 
deficiencies. See Section V(B)(2) of this Pre-Development Grant Program 
NOFA for further discussion.
    Applicants may submit more than one application to a single field 
office. However, no more than one application may be submitted per 
project. All applicable documents must have an original signature. Each 
application must propose a separate project and the proposed 
development must be located within the jurisdiction of the appropriate 
field office. To be eligible for review, all applications must contain 
the required exhibits that include form SF-424, form HUD-2880, and the 
narrative discussions. Forms needed for the application may be obtained 
from http://www.grants.gov. Threshold items are identified by an 
asterisk (*). Failure to include threshold items in your initial 
application submission will render your application non-responsive and 
that application will not be considered for funding by HUD. 
Applications must contain the required exhibits listed below:
    1. Cover Letter. A brief narrative detailing the project's name and 
HUD project number and the name(s), address(es), contact person 
name(s), and telephone number(s) of the Sponsor(s). The letter must 
also detail the total grant amount being requested under this Program 
NOFA.
    2. Standard Form 424--Application for Federal Assistance.
    3. * Narrative Demonstrating Need for Predevelopment Funding. This 
exhibit requires applicants to submit form HUD-2880, ``Applicant/
Recipient Disclosure/Update Report,'' a disclosure of assistance from 
other governmental sources received in connection with the project. 
Applicants must also submit a brief narrative describing the financial 
circumstances that resulted in the need to apply for funding assistance 
with predevelopment activities and how the lack of such assistance has 
impacted the organization's previous or current development efforts.
    4. * Proposed Predevelopment Activities and Budget. This exhibit 
requires applicants to submit a spreadsheet that specifically 
identifies the proposed activity(ies) and their anticipated cost. The 
recommended format is as follows:
    Column 1--Clearly identify each eligible predevelopment activity 
being proposed by the applicant.
    Column 2--Identify the anticipated cost for each activity.
    The spreadsheet must identify the total predevelopment funding 
assistance being proposed in the application.
    5. * Project Development Schedule. This Exhibit should include a 
detailed development schedule that identifies the predevelopment 
activities being proposed, their projected start and completion dates, 
the projected completion date for all predevelopment planning 
activities, and a brief narrative describing the applicant's plan for 
monitoring this schedule of activities and addressing potential delays. 
All projected development schedules must clearly demonstrate the 
applicant's ability to move its approved FY 2006 Section 202 elderly 
housing project from Fund Reservation to Initial Closing within 18 
months of grant approval and must provide a statement addressing how 
access to predevelopment funding will assist the applicant in moving 
its FY 2006 Section 202 elderly housing project to Initial Closing 
within 18 months of Fund Reservation approval. The completion of the 
Logic Model (form HUD-96010) will assist you in responding to this 
exhibit.
    6. Logic Model (HUD-96010). The Logic Model is representative of 
this Section 202 Demonstration Pre-Development Grant Program proposal 
and serves as the ``executive summary'' for this grant request. 
Applicants must ensure that its logic model accurately represents the 
purpose of the funding request and the expected impact on the 
development process.
    7. Facsimile Transmittal Cover Page (HUD-96011). This form must be 
used as part of the electronic application to transmit third-party 
documents and other information as described in the General Section of 
the SuperNOFA (if applicable).
    8. Acknowledgment of Application Receipt (HUD-2993). This form is 
not required for applications submitted electronically.
    9. Client Comments and Suggestions (HUD-2994). Submitting this form 
is optional.
    If changes have been made to any of the forms that were submitted 
under the FY 2006 Section 202 NOFA, HUD requires that the updated 
form(s) be resubmitted under this Demonstration Pre-Development Grant 
Program NOFA.

C. Submission Dates and Times

    Your application must be received and validated electronically by 
Grants.gov no later than 11:59:59 p.m. eastern time by the application 
deadline date, unless a waiver of the electronic delivery process has 
been approved by HUD. Please refer to the General Section of the FY 
2006 SuperNOFA for instructions on applying for a waiver. If a waiver 
is granted, HUD must receive an original and four copies of your 
application on or before the deadline date. You must comply with the 
mailing and timely receipt instructions in the General Section of the 
FY 2006 SuperNOFA.

D. Intergovernmental Review

    This funding opportunity is subject to Executive Order (EO) 12372, 
``Intergovernmental Review of Federal Programs.'' You must contact your 
state's Single Point of Contact (SPOC) to find out about and comply 
with the state's process under EO 12372. The names and addresses of the 
SPOCs are listed on the Office of Management and Budget's home page at 
http://www.whitehouse.gov/omb/grants/spoc.html. If required by the 
state, the submission to the state needs to occur no later than the 
application deadline date. It is recommended that you provide the state 
with sufficient time to review the application. Therefore, it is 
important that you consult with the SPOC for state review time frames 
and take that into account when submitting the application.

E. Funding Restrictions

    1. Eligible Activities. Section 202 Demonstration Pre-Development 
Grant Program funds must be used exclusively to facilitate planning, 
design, and predevelopment activities for projects funded under the FY 
2006 SuperNOFA for the Section 202 Supportive Housing for the Elderly 
Program. Such activities include architectural and engineering work, 
site control planning, and other planning activities related to the

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development of a multifamily housing project funded under the FY 2006 
Section 202 Supportive Housing for the Elderly Program. Grantees may 
not use funds for land acquisition, leasing, new construction, or for 
property rehabilitation, alteration, demolition, or disposition.
    a. All expenses related to eligible activities must be limited to 
those actual costs that are incurred prior to initial closing and be 
otherwise eligible activities under the Section 202 program. Activities 
that are eligible for funding include the following:
    (1) Appraisals. The applicant's cost for obtaining an appraisal to 
establish the fair market value of the proposed site, completed by a 
qualified and licensed appraiser.
    (2) Architect Services. The design fees charged by licensed 
architectural/engineering firms for architectural services regarding 
the applicant's project.
    (3) Engineering Services. Actual cost of boundary survey, 
topographic survey, soil borings and tests.
    (4) Environmental Site Assessment. Actual cost incurred for the 
environmental site assessment, i.e., Phase I and Phase II.
    (5) Consultant Services. Up to 20 percent of the total amount of 
the contract between the applicant and its consultant for services 
related to the development and submission of an approvable Section 202 
Fund Reservation application.
    (6) Cost Analysis. The cost of the contract between the applicant 
and a professional with experience in cost estimation, for an 
independent cost estimate needed to determine the viability of a 
proposed project as required for Firm commitment processing under the 
Section 202 program.
    (7) Legal Fees. The cost for legal services and title binder fees.
    (8) Site Control. The applicant's cost for extending the time for 
site control of the original site, including option costs necessary to 
extend option agreement for up to 18 months, to the closing target 
date. The proceeds of this grant may not be used for site acquisition.
    (9) Market Studies. The applicant's cost for a study completed by a 
qualified, independent, third-party market research firm for purposes 
of examining the need for and verifying the marketability of the 
proposed project.
    (10) Organizational Expenses. The actual cost related to the 
creation of an owner entity for the proposed project, pursuant to 
Section 202 program regulations.
    (11) Impact Fees. One-time fees local governments charge Sponsor/
Owners to offset the impact such housing will have on the community. 
(Typical impact fees are traffic, solid waste, sewer, water, electric, 
gas, police protection, and fire protection.)
    (12) Relocation expenses. If the project involves displacement of 
site occupants who are eligible for relocation assistance, indicate the 
total estimated cost.
    (13) Building permits and variance fees. The cost of obtaining 
building permits and variances.
    2. Ineligible Activities. No proposed activity that is deemed to be 
ineligible will be funded from the Demonstration Pre-Development Grant 
Program funds.
    a. Section 202 Demonstration Pre-Development Grant Program funds 
may not be used for the following:
    (1) To acquire sites or other real property; or to fund 
organizational overhead and/or operating expenses, staff salaries, or 
any planning activity that is otherwise ineligible for assistance under 
the Section 202 Supportive Housing for the Elderly Program.
    (2) To meet Minimum Capital Investment (MCI) requirements for the 
Section 202 program.
    (3) Performance/Payment Bonds (dual obligee).
    (4) Taxes and interest.
    (5) Bond premium, builder's risk, liability insurance, fidelity 
bond insurance, performance bond insurance, cash bond, and insurance 
premiums.
    b. In the event that funding awarded under this program is utilized 
for activities or purposes that have not been approved by HUD, the 
Department will seek repayment or any other available remedies.
    3. Applicants submitting proposals involving mixed-financing for 
additional units are not eligible to be considered for predevelopment 
funding under this NOFA.

F. Other Submission Requirements

    Application Submission and Receipt Procedures. This section 
provides the application submission and receipt instructions for HUD 
program applications. Refer to the General Section for specific 
procedures for additional information on application submission 
requirements.
    1. Electronic Submission. Demonstration Pre-Development Grant 
Program applicants must submit their applications electronically 
through http://www.grants.gov/Apply, unless a waiver is granted.
    a. The http://www.grants.gov/Apply website offers a simple, unified 
application process. Submission requires an authenticated signature and 
registration at Grants.gov. There are five steps to complete the 
registration process, and information is available at the 
www.grants.gov Web site. Applicants should carefully read HUD's Federal 
Register notice on early registration (70 FR 73332), published December 
9, 2005, or page 3390 of the General Section, published January 20, 
2006.
    b. In addition, applicants should carefully read HUD's Federal 
Register notice entitled, ``Notice of HUD's Fiscal Year (FY) 2006, 
Notice of Funding Availability, Policy Requirements and General Section 
to SuperNOFA for HUD's Discretionary Grant Programs; Additional 
Information Regarding Applicant Registration'' (71 FR 45063), published 
August 8, 2006. The notice alerts applicants of a recent change in the 
registration process with the Central Contractor Registry (CCR). As of 
August 1, 2006, CCR registrants cannot enter or modify their name and 
address information, because it will be pre-populated using Dun and 
Bradstreet (D&B) Data Universal Numbering System (DUNS) record data. 
During a new registration or when updating a record, CCR registrants 
will have a choice to accept or reject the information provided from 
D&B. If the CCR registrant agrees with the D&B-supplied information, 
the D&B data will be accepted into the CCR registrant's record. If the 
CCR registrant disagrees with the D&B-supplied information, the 
registrant will need to go to the D&B Web site, http://fedgov.dnb.com/webform, to modify the information contained in the D&B record before 
proceeding with its CCR registration. See further details in the above-
referenced Federal Register notice.
    2. Instructions. Instructions on how to submit an electronic 
application to HUD via grants.gov/Apply are contained in section IV(F) 
of the General Section. Also, Grants.gov has a full set of instructions 
on how to apply for funds on its Web site at http://www.grants.gov/applicants/apply_for_grants.jsp. In addition, HUD has published a 
Desktop User Guide for Submitting Electronic Grant Applications, which 
is available on HUD's Web site at http://www.hud.gov/offices/adm/grants/deskguide/deskguide.cfm. The guide contains screen shots and 
detailed instructions. Applicants are encouraged to read all sources of 
instructions carefully.
    3. Waiver of Electronic Submission Requirement. HUD will accept 
electronic applications only if submitted through www.grants.gov, 
unless the applicant has received a waiver. If you

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apply for and receive a waiver from the electronic submission 
requirement, your application (original and four copies), must be 
received by the deadline by the Director of the appropriate local HUD 
Multifamily Hub office that has jurisdiction over the housing 
development identified in your application. If submitting a paper 
application, please note the office hours of the office where you are 
submitting your application. For your use in determining the 
appropriate HUD Multifamily Hub Office to which you must submit your 
application, see HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm for a listing of local HUD offices (select 
``Important Information Related to the SuperNOFA'' and then select 
``Field Offices''). The HUD Program Centers are under each Hub. If you 
send your application to the wrong Hub Office, or if it is received 
after hours on the deadline date, it will be rejected. Therefore, if 
you are uncertain which Hub Office to submit your application to, you 
are encouraged to contact the local HUD office that is closest to your 
project's location to ascertain the office's jurisdiction and hours and 
to ensure that you submit your application to the correct local HUD 
Multifamily Hub Office at a time when the office is open. Paper 
applications must be received in the appropriate Hub Office by 11:59:59 
p.m. eastern time on the application deadline date. HUD will no longer 
allow a 15-day grace period for receipt of applications postmarked on 
or before the application deadline date.
    4. Proof of Timely Submission. Applicants must submit their 
applications to www.grants.gov in time for receipt and validation at 
Grants.gov by 11:59:59 p.m. eastern time on the application deadline 
date. Validation can take 24 to 48 hours, so applicants should submit 
with ample time for the process to be completed. Applicants are also 
advised to submit 72 hours in advance of the deadline so that they have 
sufficient time to correct any deficiencies that would prevent the 
acceptance of the application by Grants.gov. (Refer to the General 
Section for specific procedures regarding proof of timely submission of 
applications.)
    5. Address for Submitting Applications. Applications must be 
submitted electronically through the www.grants.gov Web site, unless 
the applicant receives a waiver from the electronic application 
submission requirement. See Section IV of the General Section, 
``Application Submission and Receipt Procedures,'' for information on 
applying online. The applications submitted electronically via 
www.grants.gov will be electronically downloaded and forwarded to the 
appropriate local HUD office.

V. Application Review Information

A. Criteria

    HUD Headquarters will use a rating process to select applications 
for the Section 202 Demonstration Pre-Development Grant Program. HUD 
will award funding under the following process until all available 
funding has been exhausted.

B. Review and Selection Process

    1. Application Review Process. HUD's application review process 
will include, but is not limited to, an eligibility review of each 
predevelopment planning activity being proposed by the applicant, the 
reasonableness of the proposed cost for each activity, the 
reasonableness of the applicant's proposed budget, and the ability of 
project Sponsors to expedite the development processing of projects 
from Section 202 Fund Reservation to Initial Closing within the 18-
month time frame. All activities must be related to the development of 
the Section 202 housing project selected under the FY 2006 Section 202 
Supportive Housing for the Elderly Program and be otherwise eligible 
activities under the Section 202 program.
    2. Review for Curable Deficiencies. A curable deficiency is a 
missing Exhibit or portion of an Exhibit that will not affect the 
eligibility of the applicant. The Exhibits identified by an asterisk 
(*) as threshold requirements must be dated on or before the 
application deadline date. Refer to the General Section of the 
SuperNOFA for additional information regarding procedures for 
corrections to deficient applications. HUD will screen all applications 
received by the application submission deadline for curable 
deficiencies. The relevant HUD Office will notify you in writing if 
your application is missing any of the exhibits or portions of 
exhibits, as listed in Section IV(B) of this NOFA, and you will be 
given 14 calendar days from the date of the HUD written notification to 
submit the information required to cure the noted deficiencies.
    3. Review for Threshold Requirements. All applications must meet 
the threshold requirements identified in the General Section of the FY 
2006 SuperNOFA and in Section IV(B) and Section III(C)(2) of this 
program NOFA. Failure to meet any threshold item will render an 
application ineligible for funding consideration. Please note that 
Section III(C)(2) of the General Section of the FY 2006 SuperNOFA, and 
the items identified by an asterisk (*) as listed in Section IV(B) and 
in Section III(C)(2) of this NOFA, are also threshold requirements and 
must be dated on or before the application deadline date. Failure to 
satisfy all threshold requirements at the time of submission will 
render the application in question as being nonresponsive to this NOFA 
and the application will be subject to no further review. See the 
General Section of the FY 2006 SuperNOFA for additional procedures for 
corrections to deficient applications.
    4. Technical Review. After an application has passed threshold 
review, HUD Multifamily Field Office staff will review it for 
compliance with the eligibility criteria set forth in this NOFA. 
However, HUD will not reject an application based on technical review 
without notifying the applicant of that rejection, the reason(s) for 
the rejection, and providing the applicant with an opportunity to 
appeal. The applicant will have 14 calendar days from the date of HUD's 
written notice to appeal a technical rejection to the HUD office. The 
HUD office will make a determination on an appeal before making its 
selection of projects to be forwarded to HUD Headquarters. HUD field 
office staff will forward to Headquarters a listing of eligible 
applications that were received by the deadline date, met all 
eligibility criteria, proposed reasonable costs for eligible 
activities, and included all technical corrections by the designated 
deadline date.
    5. Selection Process. HUD Headquarters will select Section 202 
Demonstration Pre-Development Grant Program applications based on HUD 
Multifamily Program Centers' rating of the respective FY 2006 Section 
202 program applications, beginning with the highest rated application 
nationwide. After this selection, HUD Headquarters will select the next 
highest rated application in another Program Center. Only one 
application will be selected per Multifamily Program Center. However, 
if there are no approvable applications in other Multifamily Program 
Centers, the process will begin again with the selection of the next 
highest rated application nationwide. More than one application may be 
selected per HUD Multifamily Program Center if there are no other 
approvable applications.
    This process will continue into a second round and subsequent 
round(s) until all approvable applications are selected using the 
available remaining funds. HUD Headquarters will fully

[[Page 8577]]

fund as many applications as allocated funds will allow. HUD 
Headquarters will review its selection results to ensure that no single 
entity (including affiliated entities) receives grant funding in excess 
of $800,000. Once an organization receives its maximum amount of grant 
funding, no other projects from that organization will be eligible for 
selection from the succeeding rounds.
    If there is a tie score between two or more applications, HUD will 
select the applicant with the highest score in Rating Factor 1 of the 
FY 2006 Section 202 program application. If Rating Factor 1 is scored 
identically, the scores in Rating Factors 2, 3, and 4, of the FY 2006 
Section 202 program application will be compared in that order, until 
one of the applications received a higher score. If both applications 
still score the same, then the application that requests the least 
funding will be selected.
    6. Adjustments to Funding/Reduction of Requested Grant Amount. See 
Section II(D) of this program NOFA.

VI. Award Administration Information

A. Award Notices

    Following the congressional notification process, HUD will issue a 
press release announcing the selection of awards. Once such an 
announcement has been made, successful applicants will receive their 
selection letters and grant agreement via regular or overnight mail. 
The grant agreement is the legally binding document that establishes a 
relationship between HUD and the award recipient organization. Once 
properly executed, it authorizes the obligation and disbursement of 
funds.
    1. As a condition of receiving a grant under this Section 202 
Demonstration Pre-Development Grant Program, Grantees must open a 
separate, non-interest-bearing account for the receipt and handling of 
these funds.
    2. All applicants that were not selected for funding will receive a 
non-selection letter.
    3. You may request a debriefing on your application in accordance 
with section VI(A) of the General Section of the FY 2006 SuperNOFA. The 
request must be made to the Director of Multifamily Housing at the HUD 
field office to which you sent your application.

B. Administrative and National Policy Requirements

    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) 
requires HUD to obligate all Section 202 funds appropriated for FY 2006 
by September 30, 2009. Under 31 U.S.C. 1551, no funds can be disbursed 
from this account after September 30, 2014. Under this Demonstration 
Pre-Development Grant Program, obligation of funds occurs upon 
execution of the Grant Agreement.

C. Reporting

    Grantees must submit quarterly updates of the program outcome Logic 
Model (form HUD-96010) as well as quarterly SF-269, Financial Status 
Reports. In order for HUD to evaluate the effectiveness of this 
funding, each Logic Model must indicate the results achieved against 
the proposed output goal(s) and proposed outcome(s) that were stated in 
the FY 2006 Section 202 Demonstration Pre-Development Grant Program 
application and agreed upon by HUD. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. HUD has adopted the Office 
of Management and Budget's Standards for Collection of Racial and 
Ethnic Data. In view of these requirements, you should use form HUD-
27061, Racial and Ethnic Data Reporting form (and instructions for its 
use) found on http://www.HUDclips.org.

D. Environmental Requirements

    The provision of assistance under this NOFA is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321) and not subject to compliance 
action for related environmental authorities under 24 CFR 50.19(b)(1), 
(3), (5), (8), and (16).

E. Environmental Impact

    This NOFA does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this NOFA 
is categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

VII. Agency Contacts

    A. For programmatic information, you may contact the appropriate 
local HUD office; or Brenda M. Butler at HUD Headquarters at (202) 708-
3000 or via e-mail at [email protected]. Persons with hearing and 
speech impairments may access the above number via TTY by calling the 
toll-free Federal Information Relay Service at (800) 877-8339.
    B. For technical assistance in downloading and submitting an 
application package through www.Grants.gov, contact the Grants.gov Help 
Desk at (800) 518-GRANTS or via e-mail at [email protected].

VIII. Other Information

A. Section 102 of the HUD Reform Act (Documentation and Public Access 
Requirements)

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and the 
regulations codified at 24 CFR part 4, subpart A, contain a number of 
provisions that are designed to ensure greater accountability and 
integrity in the provision of certain types of assistance administered 
by HUD. On January 14, 1992, HUD published a notice that also provides 
information on the implementation of Section 102 (57 FR 1942). The 
documentation, public access, and disclosure requirements of Section 
102 apply to assistance awarded under this NOFA, as follows:
    1. Documentation. HUD will ensure that documentation and other 
information regarding each application submitted pursuant to this NOFA 
are sufficient to indicate the basis upon which assistance was provided 
or denied. This material, including any letters of support, will be 
made available for public inspection for a 5-year period beginning not 
less than 30 days after the award of the assistance. Material will be 
made available in accordance with the Freedom of Information Act (5 
U.S.C. 552) and HUD's implementing regulations (24 CFR part 15).
    2. Disclosures. HUD will make available to the public, for 5 years, 
all applicant disclosure reports (form HUD-2880) submitted in 
connection with this NOFA. Update reports (also reported on form HUD-
2880) will be made available along with the applicant disclosure 
reports, but in no case for a period of less than 3 years. All reports, 
both applicant disclosures and updates, will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's 
implementing regulations (24 CFR part 15).
    3. Publication of Recipients of HUD Funding. HUD will publish a 
notice in the Federal Register to notify the public of all decisions 
made by HUD to provide:

[[Page 8578]]

    a. Assistance subject to Section 102(a) of the HUD Reform Act; and
    b. Assistance provided through grants or cooperative agreements on 
a discretionary (non-formula, non-demand) basis, but that is not 
provided on the basis of a competition.

B. Section 103 of the HUD Reform Act

    HUD's regulations implementing Section 103 of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a), 
codified at 24 CFR part 4, subpart B, apply to this funding 
competition. The regulations continue to apply until the announcement 
of the selection of successful applicants. HUD employees involved in 
the review of applications and in the making of funding decisions are 
limited by the regulations in providing advance information to any 
person (other than an authorized employee of HUD) concerning funding 
decisions or from otherwise giving any applicant an unfair competitive 
advantage. Persons who apply for assistance in this competition should 
confine their inquiries to the subject areas permitted under 24 CFR 
part 4.
    Applicants or employees who have ethics-related questions should 
contact the HUD Ethics Law Division at (202) 708-3815. (This is not a 
toll-free number.) HUD employees who have specific program questions 
should contact the appropriate field office counsel or Headquarters 
counsel for the program to which the question pertains.

C. Paperwork Reduction Act Statement

    The information collection requirements contained in this document 
are currently approved by the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and 
assigned OMB control number 2502-0267. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a currently valid OMB control number. Public 
reporting burden for the collection of information is estimated to 
average 4 hours per annum per respondent for the application and grant 
administration. This includes the time for collecting, reviewing, and 
reporting the data for the application, semi-annual reports, and final 
report. The information will be used for grantee selection and 
monitoring the administration of funds. Response to this request for 
information is required in order to receive the benefits to be derived.

    Dated: February 16, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E7-3142 Filed 2-23-07; 8:45 am]
BILLING CODE 4210-67-P