[Federal Register Volume 72, Number 125 (Friday, June 29, 2007)]
[Notices]
[Pages 35850-35868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-12583]



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Part IV





Department of Housing and Urban Development





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HOPE VI Main Street Grants; Notice

  Federal Register / Vol. 72 , No. 125 / Friday, June 29, 2007 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5139-N-01]


HOPE VI Main Street Grants

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

ACTION: Notice of funding availability.

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Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. HOPE VI Main Street Grants.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. FR-5139-N-01; OMB approval number is 
2577-0208.
    E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for this NOFA is 14.878, ``Affordable Housing Development in 
Main Street Rejuvenation Projects.''
    F. Dates.
    1. Application Submission Date. The application deadline date is 
August 29, 2007. Applications must be received and validated by 
Grants.gov no later than 11:59:59 p.m. on the application deadline 
date. Validation by Grants.gov may occur up to 72 hours after 
electronic receipt of the application. See the General Section for 
application submission and timely receipt requirements.
    2. Estimated Grant Award Date. The estimated award date will be 
September 24, 2007.
    G. Electronic Application Submission. Applications for this NOFA 
must be submitted electronically through http://www.grants.gov/applicants/apply_for_grants.jsp. Registration or required annual re-
registration to submit an application electronically may take more than 
a week because of the following: (1) The applicant's requirement to 
register with the Central Contractor Registration (CCR), (2) the cross-
checking of applicant identification numbers between CCR and the 
Internal Revenue Service (IRS), (3) applicant registration with the 
Grants.gov Web site, and (4) the applicant's requirement to register 
the official who will be submitting the application. HUD's Early 
Registration Notice can be obtained through HUD's Web site at http://www.hud.gov/grants/ grants/.
    See ``Other Submission Requirements'' in Section IV.F of this NOFA 
and the General Section for detailed information about application 
submission.

Full Text of Announcement

I. Funding Opportunity Description

    A. Available Funds. This NOFA announces the availability of 
approximately $1.4 million in Fiscal Year (FY) 2006 funds and $1.1 
million in FY 2007 funds, an approximate total funds availability of 
$2.5 million.
    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 
rejuvenation of an historic or traditional central business district or 
``Main Street'' area by replacing unused commercial space in buildings 
with affordable housing units.
    1. The objectives of the program are to:
    a. Redevelop Main Street areas;
    b. Preserve historic or traditional architecture or design features 
in Main Street areas;
    c. Enhance economic development efforts in Main Street areas; and
    d. 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; 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); and the 
Revised Continuing Appropriations Resolution, 2007 (Pub. L. 110-5, 
approved February 15, 2007).
    2. The funding authority for the HOPE VI Main Street program is 
provided by 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) 
and the Revised Continuing Appropriations Resolution, 2007 (Pub. L. 
110-5, approved February 15, 2007).
    3. The HOPE VI Program Reauthorization and Small Community 
Mainstreet Rejuvenation and Housing 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 5 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 for this NOFA means rental or homeownership 
dwelling units that, for INITIAL occupants:
    a. Are made available to low-income families, with a subset of 
units made available to very low-income families; and
    b. Provide the same rules regarding occupant contribution toward 
rent or purchase, and basic terms of rental or purchase, as are 
provided to occupants of public housing units in a HOPE VI development. 
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. The Grantee, with HUD's 
approval, determines how to implement these initial resident 
safeguards. Strict application of public housing rules and regulations 
is not required; e.g., the use of HUD forms and record-keeping 
requirements for occupancy and income. Units developed, rehabilitated 
or reconfigured through this NOFA are NOT and statutorily MUST NOT BE 
public housing units.
    2. Applicant Team (``Team'') means the group of entities that will 
develop the Main Street affordable housing project (``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 
provided 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. Coordination with fair housing groups to educate the Main Street

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affordable housing project's targeted population on its fair housing 
rights.
    4. Firmly committed means that the amount of match or of 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 (FY) 2007 
Notice of Funding Availability (NOFA); Policy Requirements and General 
Section to the FY 2007 SuperNOFA for HUD's Discretionary Programs; 
Notice, Docket No. FR-5100-N-01, published in the Federal Register on 
January 18, 2007. The General Section can be obtained through HUD's Web 
site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
    6. Homeownership unit means a housing unit that a 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 a 
local government.
    9. Leverage means non-HOPE VI-funded donations of cash and in-kind 
services that are firmly committed to the rejuvenation of the Main 
Street Area and are from non-HOPE VI sources.
    a. Leverage may include funds/in-kind services that are already 
expended, received but not expended, and firmly committed but not yet 
received. See the definition of ``firmly committed'' in Section 4., 
above.
    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:
    (9) Staff time of either the local government applicant or the 
recognized developer entity;
    (10) 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;
    (11) Services such as Homeownership Counseling, other CSS and 
family self-sufficiency (FSS) resources, and time and services 
contributed by volunteers.
    (12) Leverage does NOT include, and HUD will not count, Wages 
projected to be paid to residents through jobs that are provided 
through Section 3, or by FSS/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; or a 
combination of such political subdivisions that is recognized by the 
Secretary.
    11. Low-income limits prescribed by HUD are stated on the internet 
at http://www.huduser.org/datasets/il/il2007/select_Geography.odb. 
Low-Income family 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. Local area is defined 
as the nonmetropolitan 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 determined and designated by the 
applicant that fulfills the requirements stated in ``Program 
Requirements,'' Section III.C of this NOFA, and:
    a. Is within the jurisdiction of the applicant;
    b. Has specific boundaries that are determined by the applicant;
    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;
    d. Is the location of a downtown or ``Main Street'' rejuvenation 
effort that:
    (1) Has as its purpose the revitalization or redevelopment of the 
historic or traditional commercial area;
    (2) Involves investment, or other participation, by the applicant 
local government and private entities in the community in which the 
project is carried out; and
    (3) Involves the development of affordable housing that is located 
in the commercial area.
    13. Main Street affordable housing project (``project'') means the 
collection of affordable housing units that are developed in the Main 
Street Area using funds obtained through this NOFA, and meet the 
requirements as stated in ``Program Requirements,'' Section III.C of 
this NOFA.
    14. Match is cash or in-kind donations that will be expended on 
allowable activities under the grant. The match must:
    a. Total at least 5 percent of the requested HOPE VI Main Street 
grant amount; and
    b. Be from government or private-sector sources other than HOPE VI 
funding, including Community Development Block Grant (CDBG) funds, 
which by statute are considered local money.
    15. Owner entity is the legal entity that holds title to the real 
property that contains any affordable housing units developed through 
this NOFA.
    16. 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 that:
    (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

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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.
    17. Program means the HOPE VI Main Street Program.
    18. Recognized developer means the local government applicant or a 
legal entity that has an agreement with the local government applicant 
to seek financing for, rehabilitation and/or construction of housing 
units, and the provision of 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.
    19. 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 site 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 applicant, 
original owner, and, possibly, the developer and other interested 
parties.
    20. Unit of local government: See ``local government'' under this 
section.
    21. 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/il2007/select_Geography.odb. Local area is defined as the 
PMSA/MSA or nonmetropolitan county/parish, as prescribed by HUD, in 
which the low-income family resides.
    22. 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 approximately $1.4 million 
appropriated for FY 2006 and $1.1 million appropriated for FY 2007, 
totaling approximately $2.5 million, is available for funding under 
this NOFA and must be obligated by September 30, 2007.
    B. Number of Awards. This NOFA will result in approximately 3 
awards.
    C. Range of Amounts of Each Award. Each applicant may request up to 
$1,000,000.
    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 a population of 50,000 or less; and
    2. Not be served by a local government, county/parish, or regional 
or State public housing agency (PHA) that administers more than 100 
public housing units within the local government's jurisdiction. Such 
units exclude Section 8 Housing Voucher subsidized units and public 
housing units in Mixed-Finance developments where the public housing 
agency is not the General Partner in the for-profit ownership entity.
    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 or in-kind services in the 
amount of 5 percent of the requested grant amount from sources other 
than HUD HOPE VI funds. Match sources may include other Federal 
sources, 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. MATCH FUNDS MUST 
BE USED ONLY FOR CARRYING OUT ELIGIBLE AFFORDABLE HOUSING ACTIVITIES 
THAT RELATE TO THE MAIN STREET AFFORDABLE HOUSING PROJECT PRESENTED IN 
THIS APPLICATION. The match may include funds that have already been 
spent or funds that are for future use.
    a. Match donations must be firmly committed to the Main Street 
affordable housing project presented in the application. See the 
definition of ``firmly committed'' in ``Definitions,'' Section I.D of 
this NOFA.
    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. 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, reconfiguration, or rehabilitation of 
affordable rental and homeownership housing located within the Main 
Street Area. 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 envelope, 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 the Main Street affordable housing project presented 
in the application.
    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

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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 the Main Street affordable housing project presented in 
the application, similar to and including, but not limited to:
    (1) Staff training (including travel) related to affordable housing 
development and 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.
    (1) Only 15 percent of the grant amount may be used for Community 
and Supportive Services. 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 5 
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.
    (1) In order to demonstrate that the applicant meets this 
threshold, for each match resource, the application must include a 
letter stating the match amount and that the match is firmly committed 
to be used for activities related to the particular Main Street 
affordable housing project presented in the application. Each match 
resource must also be listed on page 12 of the ``HOPE VI Main Street 
Application Data Sheet,'' form HUD-52861, (under the Excel Worksheet 
Tab, ``matching and Housing Resources'') which will be a part of the 
application. Columns on that page provide space to include the 
following required information for each source: Resource organization 
name, name and telephone number of a contact at the resource 
organization, the amount of the resource organization's contribution, 
and whether the contribution is in cash or in-kind services. All 
columns, except the last, ``Leverage Period More than 2 Years,'' must 
be filled in.
    (2) If the applicant does not demonstrate that there will be 
matching funds of at least 5 percent 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.
    (1) In order to demonstrate that the applicant meets this 
threshold, the application must contain the attachment ``Map of the 
Main Street Area.'' The attached map must clearly show the applicant-
determined Main Street Area boundaries. Boundaries may be streets, rail 
lines, rivers, or other man-made or natural bounds. No other 
documentation is necessary.
    (2) If the applicant's jurisdiction does not have a Main Street 
Area, the application will not be eligible for funding through this 
NOFA.
    c. 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.
    (1) By applying for a grant through this NOFA, the applicant 
certifies that the Main Street affordable housing project meets the 
Program Requirements. No other documentation is necessary to meet this 
threshold.
    (2) If the targeted affordable housing project does not conform to 
this NOFA's requirements, the application will not be eligible for 
funding through this NOFA.
    d. One Main Street Area. Under this NOFA, the applicant must apply 
for assistance only in support of one Main Street Area. 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.
    e. 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) 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).
    (3) 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:
    (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) Dun and Bradstreet Data Universal Numbering System (DUNS) 
number;
    (ii) Employer Identification Number (EIN);
    (iii) Applicant's Legal Name (Note: Applicants must enter their 
legal name in box 8.a. of the SF-424 as it appears in the Central 
Contractor Register (CCR). See the General Section regarding CCR 
registration);
    (iv) Address (Street, PO Box, City, State, and ZIP Code); and
    (d) Authorized Official's information (Name, Title, Telephone 
Number, and E-mail Address).
    (4) 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 the 
organization's 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.
    (5) See Section III.C of the General Section for more detailed 
information and instructions if the applicant needs to submit its code 
of conduct to HUD via facsimile.
    (6) If the applicant does not provide a copy of the code of 
conduct, and its implementation methodology in its application, or is 
not listed by HUD as having already submitted such documentation, the 
application will not be eligible for funding through this NOFA.
    f. 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) DUNS Number Requirement;

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    (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) The Main Street Area rejuvenation effort:
    (a) Is carried out within the jurisdiction of the applicant;
    (b) Involves the development of affordable housing that is located 
in the commercial area that is the subject of the rejuvenation effort; 
and
    (c) Has as its purpose the revitalization or redevelopment of a 
historic or traditional commercial area.
    (2) A portion of the Main Street affordable housing project units 
will be reserved for very low-income initial occupants.
    (3) Historic preservation requirements in Section 106 of the 
National Historic Preservation Act of 1966 (NHPA) will be fulfilled, 
where applicable.
    (4) Environmental requirements stated in the NOFA will be 
fulfilled.
    (5) Building standards stated in the NOFA will be fulfilled.
    (6) Relocation requirements under the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 (URA) will be 
fulfilled.
    (7) Fair Housing, Civil Rights, and Section 3 requirements will be 
followed and fulfilled.
    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 
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) Include the development of the Main Street affordable housing 
project that is proposed and described in the application for a grant 
under 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 and related match funds. 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; and
    (3) NOT replace demolished or otherwise disposed of public housing 
units.
    c. 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.
    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 rental or 
purchase, and basic terms of rental or purchase, as residents of HOPE 
VI development public housing units. Site-based waiting lists, resident 
job or training requirements, and other occupancy requirements that are 
allowed under Section 24 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 and 
maintain 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 determine, develop, and obtain HUD 
approval of a written statement of its rent determination and occupancy 
policies.
    (3) Public housing, HUD HOME, or Low-Income Housing Tax Credit 
rental requirements are not mandatory under the Main Street program, 
but may be used as examples for such policies. Such examples are 
located at 24 CFR 903.7(d) and 24 CFR 903.7(f). If other government 
programs are used in connection with the applicant's Main Street grant 
activities, such requirements apply to the extent required by the other 
programs.
    e. Main Street 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. Providing 
homeownership counseling to residents is mandatory if the application 
includes development of homeownership units.
    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.
    (1) The Main Street Area rejuvenation effort must have community 
support from government and the private sector. Leverage, or the 
contribution of funds or in-kind services from sources other than a 
grant that results from this NOFA, demonstrates this support. See 
``Leverage'' in ``Definitions,'' Section I.D of this NOFA. To measure 
the amount of support that the Main Street Area rejuvenation effort 
has, this NOFA includes a Leverage rating factor. See Rating Factor 
3(c) in Section V.A.3 of this NOFA.
    (2) Unlike grant and match funds from this NOFA, Leverage is not 
limited to the funding of affordable housing development. Leverage can 
include contributions that have been made to, or are firmly committed 
to, the Main Street Area rejuvenation effort as a whole. It can include 
past or future funding for other affordable housing, retail supportive 
services, jobs, and other economic development that is part of the Main 
Street Area rejuvenation effort. Other examples of uses for Leverage 
funds include, but are not limited to:
    (a) 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;
    (b) Off-site site improvements that are contiguous to the site;
    (c) Demolition;

[[Page 35855]]

    (d) Restoration of the Main Street affordable housing project 
facade when facade rehabilitation is not an integral part of the 
project's rehabilitation;
    (e) 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;
    (f) Rehabilitation of retail space elsewhere in the Main Street 
Area;
    (g) Funding of Reserves; e.g., the Initial Operating Reserve 
necessary for financial viability during the initial affordable housing 
occupancy period, Replacement Reserves, etc.;
    (h) Homeownership financial assistance, e.g., write-down of 
homeownership unit development costs and downpayment assistance;
    (i) Other uses that relate directly to the Main Street affordable 
housing project;
    (j) Site improvements, e.g., repaving streets or upgrading streets 
or sidewalks with brick or cobblestone, adding ``boulevard'' islands, 
etc.;
    (k) Legal and administrative fees and costs; and
    (l) Other uses that do not relate directly to the Main Street 
affordable housing project, but do relate to the Main Street Area 
rejuvenation effort.
    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. Such a 
transfer, excluding legal fees, is an allowable grant activity. See 
Section IV.E of this NOFA for limits on the 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 (see http://www.astm.org). 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/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 identify 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/offices/fheo/disabilities/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 of salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at http://www.huduser.org/publications/destech/decon.html.
    (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 improve radically 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 U.S. 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 must comply with the

[[Page 35856]]

2003 International Energy Conservation Code (IECC 2003), which 
incorporates American Society of Heating, Refrigeration and Air 
Conditioning Engineers (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.
    (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) 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;
    (vi) Energy Star appliances; and
    (vii) Combined heat and power (cogeneration).
    (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. 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 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 informational materials, outreach to low- 
and moderate-income renters and buyers on the benefits and savings when 
using Energy Star products and appliances, and promoting the 
designation of community buildings and homes as Energy Star compliant. 
For further information about Energy Star, see http://www.energystar.gov or call (888) STAR-YES ((888) 782-7937) or, for the 
hearing-impaired, (888) 588-9920 (TTY).
    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 the Lead 
Disclosure Rule (24 CFR 35, subpart A), which addresses 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 (800) 424-5323.
    m. Labor Standards. Davis-Bacon wage rates do NOT apply to grants 
from this NOFA, with the following exceptions:
    (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 any grant funds from an award through this NOFA are expended 
by a PHA, acting as a developer, partnering with a developer, or as a 
partner in an ownership entity partnership, Davis-Bacon wage rates will 
apply to laborers and mechanics (other than volunteers under 24 CFR 
part 70) employed in development of all housing units, and HUD-
determined wage rates will apply to laborers and mechanics (other than 
volunteers) employed in the operation of all housing units, regardless 
of whether such units are public housing or non-public housing.
    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,

[[Page 35857]]

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, provide 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 on 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 to which the 
applicant local government may be subject.
    p. Procurement. City governments are required to follow the 
procurement regulations at 24 CFR 85.36. State and local procurement 
requirements apply to the extent required by those governments.
    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. Environmental Requirements;
    o. Conflict of Interest;
    p. Drug-Free Workplace; and
    q. 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/applicants/apply_for_grants.jsp. If you have difficulty accessing the 
information, you may receive customer support from Grants.gov by 
calling the help line at (800) 518-GRANTS ((800) 518-4726) 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 the Federal Information Relay Service at 
(800) 877-8339.
    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 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 form SF-424. (Note: Applicants must 
enter their legal name in box 8.a. of the SF-424 as it appears in the 
Central Contractor Register (CCR). See the General Section regarding 
CCR registration).
    b. Electronic Format.
    (1) General.
    (a) Sections of the application are as listed below.
    (b) In accordance with the General Section, applications are to be 
submitted electronically via http://www.grants.gov/applicants/apply_for_grants.jsp. See the General Section for additional instructions.
    (2) File Names.
    (a) The name of each submission file should include the information 
below 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 ``Narrative'' or ``Attachment,'' as applicable, and 
the Section letter(s) (A through U) that are included in the file, as 
listed below.
    (b) Examples of file names are ``AtlantaGANarrative SectionD--
ABC.doc'' and ``NewYorkNYAttachment SectionM--KL.pdf.'' Do not include 
spaces in the file names. Replace spaces with underscore marks.
    (3) Summary and Rating Factor Narrative Files.
    (a) In the Application Package, the form SF-424, ``Application for 
Federal

[[Page 35858]]

Assistance,'' should be completed first. Other Exhibits are part of the 
Application Instructions that you will download from Grants.gov, which 
are described in Sections IV.B.5 through 6 and in the ``Rating 
Factors,'' Section V.A of this NOFA. The following instructions apply 
to those Narrative Exhibits.
    (b) Each narrative submission file must be formatted so it can be 
read by MS Word (version 9 or earlier).
    (c) Each Narrative Exhibit, for each section of the application, 
should be contained in a separate file, as listed in Section IV.A.3.d 
of this NOFA, directly below.
    (d) Narrative Exhibit Title Pages. HUD will use title pages to 
identify each section of the application. Each Narrative Exhibit file 
should contain one title page (the first page of the file. Do not 
create title pages separately from the documents they go with). 
Provided the information on the title page is limited to the list in 
section (i) below, the title pages will not be counted when HUD 
determines the length of each Narrative Exhibit, or the overall length 
of the Narrative Exhibits.
    (i) Each title page should contain only:
    (A) The name of the Narrative Exhibit, as described in ``File 
Names,'' Section IV.B.3.b.(2), above, e.g., ``Narrative Exhibit B: 
Executive Summary'';
    (B) The name of the applicant; and
    (C) The name of the file that contains the Narrative Exhibit.
    (4) Entering Narrative Files into the Application.
    (a) Each narrative submission file must be formatted so it can be 
read by MS Word (version 9 or earlier).
    (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.
    (5) Attachment Files.
    (a) In the Grants.gov Grant Application Package, certain form 
Attachments have been converted into 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 Application 
Instructions and are defined in this Section IV of this NOFA. 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, 
or faxed using the HUD Facsimile Transmittal (HUD-96011) form.
    (e) You must complete these Attachments in stand-alone computer 
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.
    (1) 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) All of the Narrative Sections' responses together, including 
the Rating Factor responses, are limited to a maximum of 20 pages;
    (b) The Program Schedule is limited to a maximum of one page;
    (c) The Main Street Area Map, including identification of all 
project sites, is limited to a maximum of one page. The map may be 
hand-drawn, but must be approximately to scale and must be of 
sufficient quality to be legible at 11 x 17 
printed size. Computer-Aided Design software is not necessary;
    (d) The representative affordable housing unit layout is limited to 
a maximum of one page; and
    (e) Applicant Team Resumes are limited to a maximum of five 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, 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; and Insert Page Number. Page 
numbers may also be added manually.
    (d) Pages of HUD forms and certification formats furnished by HUD 
must remain as numbered by HUD. These forms do not count toward any 
page limits.
    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, Readiness and Appropriateness of 
the Main Street affordable housing project, Narrative Response;
    (c) Section E: Rating Factor 4, Program Administration and Fiscal 
Management, Narrative Response;
    (d) Section F: Rating Factor 5, Incentive Criteria on Regulatory 
Barrier Removal (HUD Community Initiative (information required by form 
HUD-27300), Narrative Response;
    (3) Attachments:
    (a) Section G: Readiness Certifications and Documents;
    (b) Section H: Program Schedule;
    (c) Section I: HOPE VI Main Street Application Data Sheet, form 
HUD-52861;
    (d) Section J: HOPE VI Budget, form HUD-52825A;
    (e) Section K: 5-Year Cash Flow Proforma;
    (f) Section L: Map of Main Street Area;
    (g) Section M: Site Plan and Typical Unit Layout;
    (h) Section N: HUD Community Initiative, form HUD-27300 (Narrative 
includes explanation and background);
    (i) Section O: Certification of Consistency with the RC/EZ/EC-IIs 
Strategic Plan, form HUD-2990, if applicable;
    (j) Section P: Program Outcome Logic Model, form HUD-96010 
(including indicators, outcomes and related items obtained in 
accordance with Section VI.C of the General Section);
    (k) Section Q: Code of Conduct (including distribution 
methodology);
    (l) Section R: Applicant/Recipient Disclosure Report, form HUD-
2880,

[[Page 35859]]

(``HUD Applicant Recipient Disclosure Report'' on Grants.gov) if 
applicable;
    (m) Section S: Disclosure of Lobbying Activities, Standard Form 
LLL, if applicable;
    (n) Section T: HUD-96011 Third Party Documentation Facsimile 
Transmittal (``Facsimile Transmittal Form'' on Grants.gov) (to be used 
to transmit third-party documents as part of your electronic 
application, if applicable); and
    (o) Section U: HUD-2994, You Are Our Client Grant Applicant Survey 
(optional)
    4. Threshold Documentation. Threshold documentation requirements 
are limited to those stated in ``Thresholds,'' Section III.C.2, 
``Certification of Certain Thresholds,'' Section III.C.3, of this NOFA, 
and ``Conducting Business in Accordance with Core Values and Ethical 
Standards,'' in Section III.C of the General Section.
    5. Summary and Attachment Documentation.
    a. Executive Summary.
    (1) Provide an Executive Summary. 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 description of 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 resources for the Main 
Street affordable housing project and the Main Street Area rejuvenation 
effort as a whole.
    b. Readiness (Site Control, Zoning, and Developer/Construction 
Agreement). See ``Rating Factor Documentation,'' Section 6, below.
    c. 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.
    d. 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 and rent-up 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 (Total Development Cost).
    (a) The maximum amount of the grant must be based on HUD's 
published TDC per unit developed. See HUD's Notice PIH-2006-22 (HA), 
``Public Housing Development Cost Limits.''
    (b) HUD has developed TDCs for larger cities, metropolitan 
statistical areas and primary metropolitan statistical areas (MSA/
PMSA), and some counties. HUD has not developed TDCs for all small, 
nonmetropolitan cities and towns. Therefore, the applicant may have to 
contact its closest HUD Field Office to find out of which county/parish 
or MSA/PMSA it is considered a part.
    (6) Match. In order to meet HOPE VI's statutory 5 percent match 
threshold, the applicant must enter match resource information in this 
worksheet. If a resource is not listed in this worksheet, the amount 
will not be included in HUD's calculation of match, and the application 
may be barred from rating, ranking, and award. (Note that the applicant 
must also provide a commitment letter for each match resource. See 
``match,'' Section III.B of this NOFA.)
    (a) For each of the applicant's match resources, the applicant must 
include in this form:
    (i) The name of the entity providing the resource;
    (ii) The name of a contact for the entity providing the resource 
who 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 match amount;
    (v) Whether the match amount is cash or in-kind services; and
    (vi) A letter from the entity that is furnishing the match, 
including items (i) through (v) above and signed by an authorized 
individual, stating that the match is firmly committed.
    (vii) All columns, except the last, ``Leverage Period More than 2 
Years,'' must be completed.
    (b) Match may only include resources to fund the Main Street 
affordable housing project. The applicant must enter all match resource 
information in this worksheet. If a resource is not listed in this 
worksheet, the amount will not be included in HUD's calculation of the 
match amount. (Note that the applicant must also provide a commitment 
letter for each match resource.)
    (7) Leverage. Leverage is a HOPE VI program requirement of cash or 
in-kind services that have been firmly committed to the Main Street 
affordable housing project or the Main Street Area refurbishment.
    (a) For each of the applicant's Leverage resources, the applicant 
must include in this form:
    (i) The name of the entity providing the resource;
    (ii) The name of a contact for the entity providing the resource 
who 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;
    (vi) A letter from the entity that is furnishing the Leverage, 
including items (i) through (v) above, signed by an authorized 
individual, stating that the Leverage is firmly committed; and
    (vii) All columns, except the last, ``Leverage Period More than 2 
Years,'' must be filled in.

[[Page 35860]]

    e. HOPE VI Budget. Enter the amount you are requesting through this 
NOFA. Typically, HOPE VI assists PHAs. With the Main Street program, 
HOPE VI is assisting local governments. Because of this, the HOPE VI 
Budget form refers to PHAs instead of local governments. In ``Part I: 
Summary,'' in the ``PHA'' space, enter the applicant's name as stated 
on the form 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 form SF-424 
and complete only columns two and three.
    f. Cash Flow Proforma. The applicant must include a 5-year estimate 
of project income, expenses, and cash flow (``proforma'') that shows 
that the project will be financially viable over the long term. The 
proforma should show the affordable rents for the period of the INITIAL 
occupancy and the affordable or market rents (set at the discretion of 
the grantee) for subsequent occupants. Note that initial funding of 
reserves with grant funds is NOT an allowable use of funds from this 
NOFA, e.g., a rental reserve to support initial affordable income. 
Reserves may be funded through leverage resources.
    g. 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. The map may be hand-drawn and should be approximately 
to scale. The purpose of this drawing is to define the area where 
firmly committed leverage resources that are included in the 
application have been, or will be, expended.
    h. Site Plan and Typical Unit Layout. The applicant must include a 
drawing of the Main Street affordable housing project site plan and a 
typical unit layout. The drawings may be hand-drawn, should be 
approximately to scale, and should be in grayscale, for printing on a 
black-and-white printer. The purpose of these drawings is to determine 
if the building and unit configuration look feasible and fulfill 
generally acceptable housing standards.
    i. America's Affordable Communities Initiative, form HUD-27300. See 
``Reviews and Selection Process,'' Section V.B of the General Section.
    j. Certification of Consistency with the RC/EZ/EC-IIs Strategic 
Plan, form HUD-2990. See ``Rating Factor Documentation,'' below.
    k. Logic Model. The applicant must complete the form HUD-96010, 
``Logic Model,'' in accordance with the ``Logic Model Instructions'' in 
the General Section.
    6. Rating Factor Documentation.
    a. Rating Factor 1--Capacity.
    (1) Team Experience. This Rating Factor will be based upon the 
applicant's narrative description of the various types and extent of 
experience that each of its Team members has accumulated. Information 
from other sections of the application that reflect on the Team's 
capacity also will be weighed for this Rating Factor. The stated 
experience will be reviewed to determine if the Team has successfully 
completed similar projects. It will also be reviewed to determine how 
similar those projects were to the activities that will be performed 
under a grant from this NOFA. At a bare minimum, the following should 
be included:
    (a) A list and short description of affordable housing projects 
that the members of the applicant's team have completed; and
    (b) A list and short description of contracts or grants completed 
by the members of the applicant's Team for similar housing development 
or services.
    (2) Key Personnel Knowledge. Key personnel are those Team members 
that must remain part of the team in order for the Team to complete the 
activities required by a grant under this NOFA. As examples, key 
personnel may include the developer, if complex financing methods are 
necessary to complete the grant activities; or the owner of the 
property that is going to be rehabilitated, if it will remain in his 
possession; or an affordable housing intermediary that is going to 
manage the activities of other Team members. On the other hand, a 
specific accountant would not be key to grant completion. Knowledge may 
come from experience or from education. The quality and amount of 
knowledge that key personnel have will be weighed by this Rating 
Factor. As an example, short resumes would contain this type of 
information.
    b. Rating Factor 2--Need for Affordable Housing. NO DOCUMENTATION 
IS NECESSARY FOR THIS RATING FACTOR.
    (1) HUD reviewers will derive the need for affordable housing 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.
    (2) PMSA/MSAs and nonmetropolitan counties/parishes documentation 
on the FMRs are listed at http://www.huduser.org/datasets/fmr.html.
    (3) The FMRs are listed at http://www.huduser.org/intercept.asp?loc=/datasets/fmr/fmr2007P/FY2007P_ScheduleB.pdf.
    (4) The maximum, affordable very low-income rent is based on HUD's 
Income Limits, which can be obtained at http://www.huduser.org/datasets/il/il2007_docsys.html for 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 percent of one-twelfth 
of the listed income limit for a very low-income family.
    c. Rating Factor 3--Readiness and Appropriateness of the Main 
Street Affordable Housing Project.
    (1) Site Control, Zoning, and Developer/Construction Agreement.
    (a) Evidence of Site Control should be included in the 
application's Readiness Attachment Exhibit:
    (i) For site(s) that WILL NOT be conveyed to perform under a grant 
from this NOFA:
    (A) A copy of the site's deed that shows ownership by the applicant 
or a Team member; or
    (B) A certification signed by the applicant's Mayor, City 
Registrar, or other authorized city employee, stating that the 
applicant has the legal authority to perform the proposed and the 
required activities of a grant from this NOFA on the site(s).
    (ii) For sites that WILL be conveyed in order to perform under a 
grant from this NOFA, the first page and execution page of the 
agreement, contract, sales contract, sales option, or other document 
that gives the applicant the legal authority to perform the proposed 
and required activities of a grant from this NOFA on the site(s).
    (2) For Zoning, the application's Readiness Attachment Exhibit 
should include a certification from the appropriate local official, 
e.g., local government engineer, zoning/land-use official (not 
necessarily the Mayor), documenting that either:
    (a) All required land-use approvals for developed and undeveloped 
land have been secured; or

[[Page 35861]]

    (b) The request for such approval(s) is on the agenda for the next 
meeting of the appropriate authority in charge of land use, e.g., 
zoning board, city council. This document must include the date of the 
meeting.
    (3) For Developer/Construction Agreement, the application's 
Readiness Attachment Exhibit should include one of the following:
    (i) A description in the Rating Factor Narrative of activities that 
the applicant Team has performed in order to obtain a developer, 
construction manager, or construction contractor. These may include 
discussions, procurement processing, etc., that the applicant has 
completed. The description should also contain a description of the 
activities that have not been, and must be, completed to sign an 
agreement with such a Team member or contractor to perform the proposed 
and required grant activities. Note that under 24 CFR 50.3, the grantee 
must not enter into a binding agreement for choice-limiting actions 
until HUD completes an environmental review.
    (ii) If the applicant has entered into a binding contract before 
submitting an application for activities that may be partially funded 
by a grant from this NOFA, the applicant must state so in the 
application. Note that, prior to HUD's completion of its environmental 
review, funds from this NOFA must not be committed or used to fund 
construction activities that started under a binding contract that was 
executed before application submission.
    (4) Leverage. The applicant must provide leverage funds/in-kind 
services that are firmly committed to the Main Street rejuvenation 
effort. This leverage may include leverage specifically committed to 
development of the Main Street affordable housing project. This 
leverage demonstrates statutorily required government and private-
sector community support. Leverage does NOT need to be expended on 
affordable housing uses. Leverage may include infrastructure and other 
government expenditures that have occurred since the Main Street 
rejuvenation effort began. See ``Definitions,'' Section I.D and 
``Program Requirements,'' Section III.C of this NOFA for more 
information about Leverage.
    (a) To be counted as Leverage, the application must contain a 
letter from the leverage resource. The letter must be in writing and 
signed by a person authorized to make the commitment, and must 
explicitly state:
    (i) The amount of the leverage; and
    (ii) That the leverage has been or will be expended on the Main 
Street Area rejuvenation effort.
    (b) To be counted as Leverage, the resource must also be included 
on pages 12 and 13 of the ``HOPE VI Main Street Application Data 
Sheet,'' form HUD-52861. All columns, except the last, ``Leverage 
Period More than 2 Years,'' must be filled in. No narrative discussion 
of Leverage is necessary.
    (c) Funds/in-kind services that are included as match resources 
CANNOT be included in Leverage and should not be duplicated in Leverage 
documentation.
    (5) Retention of Historic or Traditional Architecture. The Rating 
Factor Narrative Exhibit should include the age of, and restoration 
work being done to, fa[ccedil]ades that are part of the Main Street 
affordable housing project, along with other significant preservation 
or restoration that has taken place or is planned as part of the rest 
of the Main Street Area rejuvenation effort.
    (6) Section 3. The Rating Factor Narrative Exhibit should contain a 
Section 3 plan that must include at least the 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 provided by the applicant, and 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.
    (7) Energy Star. The Rating Factor Narrative Exhibit should include 
examples of any of the following Energy Star activities that will be 
performed under a grant from this NOFA:
    (a) It will use Energy Star-labeled products;
    (b) It will promote Energy Star design of affordable units; and
    (c) If the application includes the development of homeownership 
units, it will include Energy Star in required homeownership 
counseling.
    d. Rating Factor 4--Program Administration and Fiscal Management.
    (1) Documentation that demonstrates program administration and 
fiscal management MUST include a list of any findings issued or 
material weaknesses found by HUD or other Federal or State agencies. If 
any of these exist, documentation must also include 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. HUD will consider this statement an applicant's 
certification of fact.
    (2) Program Schedule. The Program Schedule should contain all of 
the milestones stated in ``Administrative Requirements,'' Section VI.B 
of this NOFA. The Narrative Exhibit for this Rating Factor should 
describe the methodology used in developing the schedule, including the 
parties that were contacted and contributed information to the 
applicant.
    (3) Development, Financial, and Fiscal Management. The Rating 
Factor narrative should include identification of the Team members, 
their positions in the team, and the methods they will use to manage:
    (a) General administration of the grant activities and reporting;
    (b) Construction activities, including inspections;
    (c) Leverage and match resources to guarantee fulfillment of 
commitments;
    (d) Accounting and distribution of grant funds; and
    (e) Local, State, and Federal procurement requirements of the 
applicant government.
    (4) Tracking and Reporting. The grantee will be required to submit 
quarterly reports to HUD using a HUD-developed, on-line data input 
system. The application's Rating Factor Narrative Exhibit should 
describe the method that the applicant will use to collect production 
information and the type of computers and Internet access that the 
applicant Team possesses.
    e. Rating Factor 5--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, in order to receive up to 2 policy priority points for removal of 
barriers to affordable housing. See Section V.B of the General Section.
    f. Rating Factor 6--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 date. If a waiver to the electronic submission 
is granted, paper copy applications must be received by

[[Page 35862]]

the application deadline date. See the General Section and Section IV.F 
below.
    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:
    (1) Long-term lease or transfer of title for the purposes of 
obtaining tax credits or implementation of extended use restrictions, 
provided that the recipient owner entity of the title or lease includes 
the applicant;
    (2) Transfer of title from a private owner to the applicant for 
deminimus consideration, e.g., $1;
    (3) Acquisition of land or property for the purpose of developing, 
reconfiguring, or rehabilitating affordable housing units;
    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. Cost Controls.
    a. The total amount of HOPE VI funds expended shall not exceed the 
TDC, as published by HUD in Notice PIH 2006-22 (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 
through HUD's HUDClips Web site at http://www.hudclips.org/sub_nonhud/cgi/ nph-brs.cgi?d=PIHN&s1=(06-22)[no]&op1 =AND& l=100&SECT1=TXT--HITS& 
SECT5=HEHB&u=./hudclips.cgi& p=1&r=1&f=G. This information is also 
included as background data in form HUD-52861, ``HOPE VI Main Street 
Application Data Sheet.''
    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 percent 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 percent 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 percent safe 
harbor must be justified and approved by HUD in advance. Possible 
justifications for exceeding the 9 percent 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 percent 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 Safe Harbor. The HOPE VI Main Street 
Safe Harbor for the general contractor fee is as follows:
    (a) General Requirements: 6 percent of hard-costs (including 
contingency and bond premium);
    (b) Overhead: 2 percent of hard-costs plus general requirements;
    (c) Profit: 6 percent of hard-costs, general requirements, and 
overhead;
    (d) The maximum Safe Harbor for these combined costs is 14 percent, 
unless adequate justification is provided to HUD.
    5. 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.
    6. Statutory time limit for award, obligation, and expenditure.
    a. The estimated award date will be 21 days after the application 
deadline date for this NOFA.
    b. Funds available through this NOFA must be obligated (awarded) on 
or before September 30, 2007.
    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 2006 must be expended by September 30, 2012, and 
funds appropriated in FY 2007 must be expended by September 30, 2013. 
Any funds that are not expended by these dates will be cancelled and 
recaptured by the United States Treasury, and thereafter will not be 
available for obligation or expenditure for any purpose.
    7. Withdrawal of Funding. If a grantee under this NOFA does not 
proceed within a reasonable time frame (in accordance with Section VI 
of this NOFA), HUD retains the right to unilaterally withdraw any grant 
amounts that have not been obligated by the grantee. HUD shall 
redistribute any

[[Page 35863]]

withdrawn amounts to one or more other applicants eligible for 
assistance under the HOPE VI program.
    8. Transfer of Funds. HUD has the discretion to transfer to any 
other HOPE VI program funds available through this NOFA.
    9. Limitation on Eligible Expenditures. Expenditures on services, 
equipment, and physical improvements must directly relate to project 
activities allowed under this NOFA.
    10. 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 Sections IV.B 
and F of the General Section.
    2. Timely Receipt Requirements and Proof of Timely Submission.
    a. Electronic Submission. All electronic applications must be 
received and validated by http://www.grants.gov by 11:59:59 p.m. 
eastern time on or before the deadline date established for this NOFA. 
See Sections IV. B and F of the General Section. Applicants are advised 
to submit their applications at least 48 to 72 hours in advance of the 
deadline date and when the Grants.gov help desk is open so that any 
issues can be addressed prior to the deadline date and time. Please 
note that validation may take up to 72 hours.
    b. Applications Receiving Waivers to Submit a Paper Copy 
Application.
    (1) Requests for HUD to waive the requirement that NOFA 
applications be submitted electronically must be made in writing to: 
Department of Housing and Urban Development, Office of Public Housing 
Investments, Attention: Susan Wilson, Director, 451 Seventh Street, 
SW., Washington, DC 20410-5000.
    (2) Waiver requests must include justification explaining why the 
application cannot be submitted electronically, and must be submitted 
no later than 15 days prior to the application deadline date.
    (3) See Section IV of the General Section for additional 
information about waivers.
    (4) Applicants granted a waiver of the electronic submission 
requirement must submit their applications, 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. HUD will not 
accept a paper application without a waiver being granted.
    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.

V. Application Review Information

    A. Selection Criteria (Rating Factors).
    1. Rating Factor 1--Capacity (up to 25 points). This factor 
addresses whether the applicant Team has the capacity and 
organizational resources necessary to implement successfully the 
proposed activities within the grant period. Please do not include the 
Social Security Number of any Team member.
    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; 
that is, that the applicant's Team has developed or rehabilitated 
housing projects, including BOTH affordable housing projects and 
National Register for Historic Preservation (NRHP) or traditional 
architecture projects over the past 3 years.
    (2) The applicant will earn a maximum of 10 points if the applicant 
demonstrates that the applicant's Team has superior experience of 
affordable housing development and historic preservation requirements; 
that is, that the applicant's Team has developed or rehabilitated 
housing projects, including EITHER affordable housing projects OR NRHP 
or traditional architecture projects over the past 3 years.
    (3) The applicant will earn a maximum of 5 points if the applicant 
demonstrates that the applicant team has adequate experience in housing 
development; that is, that the applicant's Team has developed or 
rehabilitated more than one housing project over the past 3 years.
    (4) The applicant will earn a maximum of 0 points if the applicant 
cannot demonstrate that its team has at least adequate experience in 
housing development.
    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 in the 
development or rehabilitation of housing projects, including BOTH 
affordable housing projects AND NRHP or traditional architecture 
projects.
    (2) The applicant will earn a maximum of 5 points if the applicant 
demonstrates that the applicant Team's key personnel have adequate 
knowledge in the development or rehabilitation of housing projects, 
including EITHER affordable housing projects OR NRHP or traditional 
architecture projects.
    (3) The applicant will earn a maximum of 0 points if the applicant 
cannot demonstrate that its key personnel have adequate knowledge in 
the development or rehabilitation of housing projects, including EITHER 
affordable housing projects OR NRHP or traditional architecture 
projects.
    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 three-person very 
low-income family to the FMR of a two-bedroom size unit (affordable 
rent divided by FMR) is equal to or less than 0.9, the applicant will 
receive 10 points. Affordable rent is 30 percent 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 three-person, very 
low-income family to the FMR of a two-bedroom size unit (affordable 
rent divided by FMR) is greater than 0.9, but less than or equal to 
1.2, the applicant will receive 5 points. Affordable rent is 30 percent 
of the Income Limit for a very low-income family, divided by 12 (months 
per year).
    c. 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 two-bedroom size unit (affordable rent 
divided by FMR) is greater than 1.2, the applicant will receive 0 
points. Affordable rent is 30 percent of the Income Limit for a very 
low-income family, divided by 12 (months per year).
    3. Rating Factor 3--Readiness and Appropriateness of the Main 
Street affordable housing project (up to 48 points).
    a. Appropriateness and Feasibility of the Main Street Affordable 
Housing Project (up to 10 points).
    (1) You will receive 10 points if your application demonstrates the 
following about your Main Street affordable housing project:
    (a) It is appropriate and suitable, in the context of the community 
and other affordable housing options, e.g., rehabilitation versus new 
construction;
    (b) Fulfills the needs of the Main Street Area rejuvenation effort;
    (c) Is marketable, in the context of local conditions;

[[Page 35864]]

    (d) If the affordable housing units that will be developed under a 
grant from this NOFA are not a separable part of a larger development 
effort, and you include market-rate housing or retail structures in 
that larger development, you must provide a signed letter from an 
independent, third-party, market research firm real estate professional 
that describes its assessment of the demand and associated pricing 
structure for the proposed residential units and retail structures, 
based on the market and economic conditions of the Main Street Area;
    (e) Is financially feasible, as demonstrated in the proforma and 
financial exhibits proposed in the application;
    (f) 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; and
    (g) 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 5 points if your application demonstrates at 
least 3 of the criteria above.
    (3) You will receive 0 points if your application does not 
demonstrate the criteria above or your application does not provide 
sufficient information to evaluate this factor.
    b. Promotion and Marketing (2 Points).
    (1) The applicant will receive 2 points if the application sets 
forth a plan to promote and market the Main Street Area rejuvenation 
effort to financiers, to 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.
    (2) The applicant will receive 0 points if the application does not 
include a discussion of promotion or marketing of the Main Street Area 
rejuvenation effort.
    c. Readiness (Site Control, Zoning, and Developer/Construction 
Agreement) (up to 12 points).
    (1) In order to perform the activities required under a grant from 
this NOFA, the applicant must:
    (a) Have obtained site control of the Main Street affordable 
housing project site(s). (Note that an applicant that does not have 
site control prior to HUD's receipt of the application must not acquire 
title to any sites until completion of the HUD environmental review. In 
addition, any purchase option entered into after HUD receipt of the 
application must be contingent upon notification from HUD that the 
property is acceptable, following a HUD environmental review, and the 
cost of the option must be no more than a nominal portion of the 
purchase price);
    (b) Have received local zoning approval that allows residential use 
of the Main Street affordable housing project site(s); and
    (c) Have either:
    (i) Begun discussions toward execution of an agreement or contract 
with a developer, construction manager, or construction company to 
develop the Main Street affordable housing project. (Note that under 24 
CFR 50.3, the grantee must not enter into a binding agreement for 
choice-limiting actions until HUD completes an environmental review); 
or
    (ii) Had such a contract in place, before application submission, 
to develop affordable housing that may be partially funded by this 
NOFA. (Note that, prior to HUD's completion of its environmental 
review, funds from this NOFA must not be committed or used to fund 
construction activities that started under a binding contract that was 
executed before application submission).
    (2) Scoring:
    (a) The applicant will receive 12 points if the application 
includes documentation demonstrating that (a), (b), and (c), above, has 
occurred.
    (b) The applicant will receive 8 points if the application includes 
documentation demonstrating that any two of (a), (b), and (c), above, 
have occurred.
    (c) The applicant will receive 4 points if the application includes 
documentation demonstrating that only one of (a), (b), and (c), above, 
has occurred.
    (d) The applicant will receive 0 points if the application does not 
include documentation demonstrating that either (a), (b), and (c), 
above, has occurred.
    d. Main Street Area Rejuvenation Leverage (up to 15 points). Main 
Street Area Leverage includes leverage used for activities related to 
the Main Street Area rejuvenation effort as a whole, along with 
leverage that will be used directly for allowable activities in the 
development of the Main Street affordable housing project.
    (1) The applicant must provide leverage funds/in-kind services that 
are firmly committed to the Main Street rejuvenation effort as a whole, 
including leverage specifically committed to development of the Main 
Street affordable housing project. This Leverage must demonstrate 
government and private-sector community support for the Main Street 
Area rejuvenation effort.
    (2) Match is NOT included in Leverage. Match is a separate, 
statutorily required contribution of funds. If a resource is listed as 
match in the ``HOPE VI Main Street Application Data Sheet,'' form HUD-
52861, that is included in the application, HUD will not count that 
resource as Leverage.
    (3) This Rating Factor measures the community support that the Main 
Street Area rejuvenation project has.
    (4) Points are assigned based on the following scale, as a percent 
of the requested grant amount:

------------------------------------------------------------------------
                                                                 Points
             Leverage as percent of grant amount                awarded
------------------------------------------------------------------------
Less than 75 percent of the requested grant amount...........   0 points
Greater than or equal to 75 percent but less than 150 percent   5 points
Greater than or equal to 150 percent but less than 225         10 points
 percent.....................................................
225 percent or more..........................................  15 points
------------------------------------------------------------------------

    e. Retention of Historic or Traditional Architecture (up to 6 
points).
    (1) The applicant will receive 6 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.
    f. Economic Opportunities for Low- and Very-Low-Income Persons 
(Provision of Section 3) (up to 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 135.32, 
``Responsibilities of the recipient,'' which can be found through 
http://www.gpoaccess.gov/cfr/index.html. 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.

[[Page 35865]]

    (2) The applicant will receive 2 points if the application includes 
a feasible plan to implement Section 3 that not only meets the minimum 
requirements, but also exceeds those requirements.
    (3) 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, but also exceeds those requirements.
    g. 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.
    (3) You will receive 0 points if your application does not 
demonstrate that you will perform (a) and (b) above, and, if 
applicable, (c) above.
    4. Rating Factor 4-Program Administration and Fiscal Management (up 
to 15 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, that 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 the estimated production 
milestones, their relative time frames, and each milestone's time to 
completion, e.g., in a 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. Tracking and Reporting System for Production Milestones (up to 2 
points).
    (1) The applicant will earn a maximum of 2 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 1 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.
    c. Development and Fiscal Management (up to 8 points).
    (1) Development and fiscal management includes management of the 
grant in general (administration and reporting), the construction 
activities, receipt of financial commitments, accounting and 
distribution of grant funds, and government procurement activities.
    (2) If the applicant demonstrates management controls that are 
adequate to manage a grant from this NOFA for all of the above areas, 
the applicant will receive 8 points.
    (3) If the applicant demonstrates management controls that are 
adequate to manage a grant from this NOFA for some of the above areas, 
the applicant will receive 4 points.
    (4) If the applicant does not demonstrate management controls that 
are adequate to manage a grant from this NOFA, the applicant will 
receive 0 points.
    5. Rating Factor 5--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 the 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 more than two points for 
barrier removal activities.
    (4) To receive the points for this policy priority, an applicant 
must submit the documentation requested in the questionnaire or provide 
a Web site address (URL) where the documentation can be readily found. 
See Section IV of the General Section for documentation requirements.
    6. Bonus Points: RC/EZ/EC-II (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 U.S. 
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 (TIUP). (For ease of reference in this notice, all of 
the federally designated areas are

[[Page 35866]]

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.2.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 points 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, 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 HOPE VI column of 
the application's Sources and Uses, or HOPE VI budget.
    6. In accordance with the FY 2007 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 Capacity 
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 fund feasibly the next eligible 
application. In this case, the funds that have not been awarded will be 
considered remaining funds.
    9. The following subsections 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 eligible applicants, whether or not 
they have been selected for funding.
    2. Authorizing Document. The ``Assistance Award/Amendment,'' form 
HUD-1044, signed by the Assistant Secretary for Public and Indian 
Housing (grants officer) is the authorizing document. This executed 
form will be delivered via the United States Postal Service to the 
applicant's authorized signatory at the applicant's address, as stated 
on the form SF-424.
    3. General Section References. Section VI of the General Section is 
hereby incorporated by reference.
    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 ``Assistance Award/Amendment,'' form HUD-1044, 
is executed by HUD.
    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 or Construction Manager 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

[[Page 35867]]

the project within 12 months after the grant award date.
    (a) Development proposals must include the following documents and 
information:
    (i) Completed HUD Environmental Review, including the State 
Historic Preservation Officer approval, in accordance with 24 CFR part 
50;
    (ii) Identification of parties to the project development;
    (iii) 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;
    (iv) Financing, i.e., sources and uses in the form HUD-52861 
format;
    (v) Unit description, i.e., unit number and sizes;
    (vi) Site locations, i.e., lot and block, street address, or legal 
description;
    (vii) Development construction cost estimate; and
    (viii) Certification that open competition has been or 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 18 months after grant award date.
    (3) Last Construction Completion. Grantees must complete 
construction on a number and mix of units that accounts for an amount 
of TDC equal to, or greater than, the amount of the grant (TDC Units), 
within 30 months from the grant award date.
    (4) In determining reasonableness of such time frame, noted in the 
paragraph above, 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 2 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;
    (f) Date of the completion of construction of the last TDC Unit; 
and
    (g) If the Main Street affordable housing project is part of a 
larger housing development, the date of 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.
    h. 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.
    i. 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 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.
    2. National Policy Requirements.
    a. See references to the General Section in Section III of this 
NOFA.
    C. Reporting.
    1. Quarterly Administrative and Compliance Checkpoints Report 
(Quarterly Report).
    a. 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:
    (1) On a quarterly basis:
    (a) Administrative and production milestones, called 
``Checkpoints;''
    (b) 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
    (c) A short status narrative.
    (2) On an annual basis, the Total real estate tax assessment for 
the census tract that includes the Main Street Area.
    b. HUD will provide training and technical assistance on the filing 
and submitting of Main Street Quarterly Progress Reports.
    c. 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.
    d. Grantees will be held to the milestones that are reported in the 
Quarterly Progress Report, as approved by HUD.
    2. LOCCS. On a quarterly basis, grantees must report all 
obligations and expenditures in HUD's Line of Credit Control System 
(LOCCS), or its successor system.
    3. 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. See Logic Model reporting in the General 
Section.
    4. 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. Grantees shall

[[Page 35868]]

use quantifiable data to measure performance against goals and 
objectives outlined in its application. For FY2007, HUD is considering 
a new concept for the Logic Model. The new concept is a Return on 
Investment (ROI) statement. HUD will be publishing a separate notice on 
the Return on Investment (ROI) concept. 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. The final narrative, financial report, and closeout 
documentation, as required by HUD, and the 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.
    c. Racial and Ethnic Data. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. It has adopted the OMB 
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.

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 Grants.gov and the 
Federal Register 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 Lawrence 
Gnessin at (202) 402-2676, may send an e-mail to 
[email protected], or may contact Ms. Dominique Blom, 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 [email protected].
    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 subsections 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
    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, 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.

    Dated: June 22, 2007.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. E7-12583 Filed 6-28-07; 8:45 am]
BILLING CODE 4210-67-P