[Federal Register Volume 73, Number 198 (Friday, October 10, 2008)]
[Notices]
[Pages 60312-60318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-24196]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5218-N-01]


Notice of Funding Availability for the Section 202 Demonstration 
Pre-Development Grant Program

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

ACTION: Notice of funding availability.

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Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Housing.
    B. Funding Opportunity Title: Section 202 Demonstration Pre-
Development Grant Program.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The OMB approval number for this 
NOFA is 2502-0267. The Federal Register number is FR-5218-N-01.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.157, 
Section 202 Demonstration Pre-Development Grant Program.
    F. Dates: The application deadline date is: December 16, 2008. All 
applications must be received and validated by Grants.gov no later than 
11:59:59 pm Eastern Time on the application deadline date. Refer to the 
General Section of the SuperNOFA published on March 19, 2008 (72 FR 
14882) (General Section), the FY2008 SuperNOFA published on May 12, 
2008 (72 FR 27032) (SuperNOFA) and the Notice of HUD's FY2008 SuperNOFA 
for HUD's Discretionary Programs; Correction for Section 202 and 
Section 811 Programs published on June 9, 2008 (72 FR 32592) (SuperNOFA 
SUPPLEMENTARY INFORMATION) and Section IV of this Program NOFA for 
further information about application, submission, and timely receipt 
requirements.
    G. Additional Overview Content Information: Applicants must be 
registered to apply on line at Grants.gov to submit an application. 
Private nonprofit organizations and nonprofit consumer cooperatives 
interested in applying for funding under this program, in addition to 
this Program Section, should carefully review the General Section, the 
SuperNOFA, and the SuperNOFA SUPPLEMENTARY INFORMATION, and the 
information detailed in this Program NOFA, which covers the 
registration, submission, timely receipt, and additional requirements 
for this funding opportunity. Applicants are advised to start the 
registration process immediately upon publication of this NOFA. 
Registration can take several weeks to complete.

Full Text Of Announcement

I. Funding Opportunity Description

    A. Program Description. The purpose of this Demonstration Pre-
Development Grant program is to assist Sponsors of projects that 
receive Fund Reservation Awards pursuant to the FY2008 SuperNOFA for 
the Section 202 Supportive Housing for the Elderly program by providing 
pre-development grant funding for architectural and engineering work, 
site control, and other planning related expenses that are eligible for 
funding under the Section 202 Supportive Housing for the Elderly 
program. Subsequent to providing pre-development grant funding to the 
selected applicants, HUD will assess the impact of the availability of 
such funding on the ability of project Sponsors to expedite the 
development processing of projects from Section 202 Fund Reservation to 
Initial Closing within 18 months.
    HUD is aware of the complexities of developing Section 202 projects 
and understands that a lack of pre-development funding may be a 
contributing factor in many instances where project Sponsors are not 
able to move their approved projects from Fund Reservation award to 
Initial Closing within the required 18-month time frame. Funding under 
this program is not intended to duplicate Section 202 Capital Advance 
funding, but rather to provide a source of funding for pre-development 
costs that would otherwise not be reimbursable until Initial Closing or 
would be payable from eligible funding resources secured outside of 
Section 202 Capital Advance funding.
    B. Authority. The Section 202 Demonstration Pre-Development program 
is authorized by the Consolidated Appropriations Act, 2008 (Pub. L. 
110-161; approved December 26, 2007).

II. Award Information

    A. Funding Available. The Consolidated Appropriations Act, 2008 
(Pub. L. 110-161; approved December 26, 2007), authorized approximately 
$20,000,000 for pre-development grants to private nonprofit 
organizations and consumer cooperatives in connection with the 
development of housing under the Section 202 Supportive Housing for the 
Elderly program.
    B. Funding Process. HUD will only make offers to fully fund as many 
applications as possible from the $20 million allocated for Sponsors 
that receive Section 202 Fund Reservations pursuant to the FY2008 
SuperNOFA. Applicants selected for funding under the FY2008 Section 202 
Supportive Housing for the Elderly NOFA are not guaranteed funding 
under this demonstration program.
    C. Maximum Grant Award. The maximum grant amount per single 
application is $400,000. However, no more than $800,000 may be awarded 
to a single entity or its affiliated organizations. The amount of 
funding requested must be within the maximum grant award amounts or the 
application will not receive funding consideration.
    D. Reduction of Requested Grant Amount. HUD may make an award in an 
amount less than requested, if:
    1. HUD determines that any of the proposed pre-development 
activities are ineligible for funding under the Section 202 Supportive 
Housing for the Elderly program;
    2. HUD determines that an eligible applicant has not been able to 
provide sufficient evidence to support the proposed cost of an eligible 
pre-development item or activity;
    3. HUD determines that a reduced grant would prevent duplicative 
federal funding; or
    4. HUD determines that proposed costs for pre-development 
activities are not based on comparable costs for eligible items and 
activities in the applicant's community. HUD field office staff will 
review proposed costs in accordance with customary and reasonable costs 
for such items within the geographical jurisdiction of the respective 
Multifamily Hub and/or Multifamily Program Center Office. If requested 
by HUD, eligible applicants must provide supportable evidence of 
comparable costs for proposed activities.
    E. Term of Funded Activities. The grant term is 18 months from the 
date of the Section 202 Supportive Housing for the Elderly Agreement 
Letter to Initial Closing. Funds not expended by the end of the grant 
term are subject to

[[Page 60313]]

recapture and/or repayment if expended on ineligible activities. 
Failure to complete the development processing of the Section 202 
project by the end of the grant term may result in grant termination, 
grant reduction, or other action deemed appropriate by HUD. HUD may use 
past performance in making future funding decisions.

III. Eligibility Information

A. Eligible Applicants

    1. All private nonprofit organizations and nonprofit consumer 
cooperatives that submitted an application for funding consideration 
under the FY2008 SuperNOFA for the Section 202 Supportive Housing for 
the Elderly program are eligible to apply for funding under this 
Demonstration Pre-Development Grant program. (Please refer to the 
Section 202 Program NOFA published with the FY2008 SuperNOFA and the 
FY2008 SuperNOFA SUPPLEMENTARY INFORMATION for a discussion on the 
eligibility criteria for the Section 202 program.) However, funding 
awards under this Section 202 Demonstration Pre-Development Grant 
program will be restricted to those applicants that are selected for 
Fund Reservation Awards under the FY2008 SuperNOFA for the Section 202 
Supportive Housing for the Elderly program. Funding under this Program 
will not be fair shared to each HUD office.
    2. Ineligible applicants. Ineligible applicants include:
    a. Applicants that failed to submit a request for Fund Reservation 
under FY2008 Section 202 Program NOFA.
    b. Applications from eligible applicants that do not receive a Fund 
Reservation Award under the FY2008 SuperNOFA for the Section 202 
program.
    c. Applications from applicants that are ineligible under the 
Section 202 program including public bodies and instrumentalities of 
public bodies.
    d. Applicants submitting proposals involving mixed-financing for 
additional units.

B. Cost Sharing or Matching

    No match required.

C. Other

    1. Requirements and Procedures. To receive and administer funding 
under this demonstration program, applicants must fully satisfy the 
eligibility requirements for participation in the Section 202 
Supportive Housing for the Elderly program as well as comply with the 
following:
    a. Statutory and Regulatory Requirements. You must comply with all 
statutory, regulatory, threshold, and public policy requirements listed 
in the General Section.
    b. Allowable Use of Funds. Pre-development grant funds may be used 
to cover the cost of pre-development activities relating to the 
development of supportive housing for the elderly under the Section 202 
program as described in Section IV.E.1. (``Eligible Activities''). 
However, before a grantee can enter into a contract for professional 
services, the entity must receive approval under the form HUD-2530 
clearance process. Such entities include, but are not limited to, 
housing consultants (including those instances where eligible sponsors 
proposed to provide such services), general contractors, and management 
agents.
    c. Organizational Costs. Eligible organizational expenses and/or 
costs are limited to those incurred in connection with the organization 
of an owner entity, pursuant to the requirements of the Section 202 
Supportive Housing for the Elderly program.
    d. Site Control. Applicants are required to provide evidence of 
site control, consistent with the requirements of the Section 202 
program, as a condition to being funded under the FY2008 Section 202 
NOFA. Applicants who receive funding awards under this NOFA may utilize 
this funding to extend site control in accordance with the site control 
requirements under the Section 202 Supportive Housing for the Elderly 
program. For further discussion, see the Section 202 Program NOFA 
published as part of the FY2008 SuperNOFA and the FY2008 SuperNOFA 
SUPPLEMENTARY INFORMATION:
    e. Phase I and Phase II Environmental Site Assessments (ESA). The 
requirements for Phase I and II ESAs are the same as those that apply 
to the Section 202 Supportive Housing for the Elderly program and are 
contained in the Section 202 Program NOFA published as part of the 
FY2008 SuperNOFA and the FY2008 SuperNOFA SUPPLEMENTARY INFORMATION.
    f. False Statements. See the General Section of the FY2008 
SuperNOFA.
    g. Delinquent Federal Debts. In addition to the requirements in the 
General Section of the FY2008 SuperNOFA, applicants at the time of 
award that have federal debt or are in default of an agreement with the 
Internal Revenue Service (IRS) will not be funded. Applicants selected 
for funding have an obligation to report to HUD changes in status of a 
current IRS agreement covering federal debt.
    2. Program Related Threshold Requirements. In addition to the 
threshold requirements in the General Section of the FY2008 SuperNOFA, 
applicants must adhere to all program-specific threshold requirements, 
as detailed in this NOFA. HUD will consider an application non-
responsive to this NOFA and will not accept it for processing if the 
applicant:
    a. Is determined to be ineligible (Please refer to Section III.A of 
this NOFA for a more detailed discussion on ineligible applicants);
    b. Requested more than the maximum grant amount;
    c. Is granted a waiver to submit a paper application, but fails to 
submit the required original and four copies; or
    d. Failed to submit the threshold requirements as identified by the 
asterisk (*) in Section IV.B. of this Program NOFA by the deadline 
date.

IV. Application and Submission Information

    A. Addresses to Request Application Package. All information needed 
for the preparation and submission of this application is included in 
this Program NOFA and the General Section of the FY2008 SuperNOFA and 
the FY2008 SuperNOFA SUPPLEMENTARY INFORMATION. Copies of the General 
Section, this Program NOFA, and needed forms are found in the 
instructions and application downloads which are on the Grants.gov Web 
site at www.Grants.gov. If you have difficulty accessing the 
information, you may call the Grants.gov Support Desk toll free at 800-
518-GRANTS or e-mail your questions to Grants.gov">Support@Grants.gov. The Support 
Desk staff will assist you in accessing the information.
    Your application must be transmitted electronically using 
www.Grants.gov/applicant/apply_for_grants.jsp unless you request and 
receive a waiver of the requirement for electronic application 
submittal. See the General Section, the Introduction to the FY2008 
SuperNOFA and the FY2008 SuperNOFA SUPPLEMENTARY INFORMATION for 
further information and instructions pertaining to electronic 
application submission and waiver request requirements.
    For applicants receiving a waiver to submit a paper application, an 
original and 4 copies of the completed application package must be 
received by the appropriate local HUD office on or before December 9, 
2008. See http://www.hud.gov/offices/adm/grants/fundsavail.cfm (select 
``Important Information Related to the SuperNOFA'' and then select 
``Field Offices'') for a complete listing of the Multifamily Hub

[[Page 60314]]

Offices and Multifamily Program Centers.

B. Content and Form of Application Submission.

    You should ensure that your application is complete before 
transmitting it to the following Web site: http://www.grants.gov/applicants/apply_for_grants.jsp. In cases where a waiver of 
electronic submission requirement is granted, an original and four 
copies must be submitted to the appropriate HUD office. In addition, 
all applicable documents must have an original signature. Upon receipt 
of the application by HUD staff, HUD will screen all applications to 
determine if there are any curable deficiencies. See Section V.B.2. of 
this Program NOFA for further discussion.
    Applicants may submit more than one application to a single field 
office. However, no more than one application may be submitted per 
project. Each application must propose a separate project, and the 
proposed development must be located within the jurisdiction of the 
appropriate field office. To be eligible for review, all applications 
must contain the required exhibits that include form SF-424, form HUD-
2880, and the narrative discussions. Forms needed for the application 
may be obtained from http://www.grants.gov/applicants/apply_for_grants.jsp. Threshold items are identified by an asterisk (*). Failure 
to include threshold items in your initial application submission will 
render your application non-responsive and it will not be considered 
for funding by HUD. Applications must contain the required exhibits as 
listed below:
    1. Cover Letter. A brief narrative detailing the project's name, 
HUD project number, and the name(s), address(es), contact person 
name(s) and telephone number(s) of the Sponsor(s). The letter must also 
detail the total grant amount being requested under this Program NOFA.
    2. Standard Form 424--Application for Federal Assistance. 
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 of the FY2008 SuperNOFA regarding CCR registration.
    3. * Narrative Demonstrating Need for Pre-development Funding. This 
exhibit requires applicants to submit form HUD-2880, Applicant/
Recipient Disclosure/Update Report (``HUD Applicant Recipient 
Disclosure Report'' on Grants.gov). A disclosure of assistance from 
other government sources received in connection with the project is 
required. Applicants must also submit a brief narrative describing the 
financial circumstances that resulted in your need to apply for funding 
assistance with pre-development activities and how the lack of such 
assistance has impacted the organization's previous or current 
development efforts.
    4. * Proposed Pre-development Activities and Budget. This exhibit 
requires applicants to submit a spreadsheet that specifically 
identifies the proposed activity(ies) and their anticipated cost. The 
recommended format is as follows:
    Column 1--Clearly identify each eligible pre-development activity 
being proposed by the applicant.
    Column 2--Identify the anticipated cost for each activity.
    The spreadsheet must identify the total pre-development funding 
assistance being proposed in the application.
    5. * Project Development Schedule. This exhibit should include a 
detailed development schedule which identifies the pre-development 
activities being proposed, their projected start and completion dates, 
the projected completion date for all pre-development planning 
activities, and a brief narrative describing the applicant's plan for 
monitoring this schedule of activities and addressing delays should 
they occur. All projected development schedules must clearly 
demonstrate the applicant's ability to move its approved FY2008 Section 
202 elderly housing project from Fund Reservation to Initial Closing 
within 18 months of grant approval and must provide a statement 
addressing how access to pre-development funding will assist the 
applicant in moving its FY2008 Section 202 elderly housing project to 
Initial Closing within 18 months of Fund Reservation approval. The 
completion of the Logic Model (form HUD-96010) will assist you in 
responding to this exhibit.
    6. Program Outcome Logic Model (HUD-96010). The Logic Model is 
representative of this Section 202 Demonstration Pre-Development Grant 
program proposal and it serves as the ``executive summary'' for this 
grant request. Applicants must ensure that their Logic Model accurately 
represents the purpose of the funding request and the expected impact 
on the development process.
    7. Third Party Documentation Facsimile Transmittal (``Facsimile 
Transmittal Form'' on Grants.gov) (HUD-96011). This form must be used 
as part of the electronic application to transmit third party documents 
and other information as described in the General Section of the 
SuperNOFA (if applicable).
    8. Acknowledgment of Application Receipt (HUD-2993). This is not 
required for applications submitted electronically.
    9. Client Comments and Suggestions (HUD-2994). This is optional.
    If changes have been made to any of the forms that were submitted 
under the FY2008 Section 202 NOFA, HUD requires that the updated 
form(s) be resubmitted under this Demonstration Pre-Development Grant 
NOFA.
    10. SF-424 Supplement, Survey for Ensuring Equal Opportunity for 
Applicants (``Faith Based EEO Survey (SF-424 SUPP)'' on Grants.gov).
    11. SF-LLL, Disclosure of Lobbying Activities, if applicable.
    C. Submission Dates and Times. Your application must be received 
and validated electronically by Grants.gov no later than 11:59:59 p.m. 
eastern time by the application deadline date, unless a waiver of the 
electronic delivery process has been approved by HUD. Please refer to 
the General Section of the FY2008 SuperNOFA and Section IV.F. below for 
instructions on applying for a waiver. If a waiver is granted, HUD must 
receive an original and four copies of your application on December 9, 
2008. The notification approving your waiver request will provide 
submission instructions. Paper applications must be received by the 
deadline date.
    D. Intergovernmental Review. This funding opportunity is subject to 
Executive Order (EO) 12372, ``Intergovernmental Review of Federal 
Programs.'' You must contact your State's Single Point of Contact 
(SPOC) to find out about and comply with the state's process under EO 
12372. The names and addresses of the SPOCs are listed in the Office of 
Management and Budget's home page at http://www.whitehouse.gov/omb/grants/spoc.html. If required by the state, the submission to the state 
needs to occur no later than the application deadline date. HUD 
recommends that you provide the state with sufficient time to review 
the application. Therefore, it is important that you consult with the 
SPOC for State review timeframes and take that into account when 
submitting the application.

E. Funding Restrictions

    1. Eligible Activities. Section 202 Demonstration Pre-Development 
Grant program funds must be used exclusively to facilitate planning, 
design, and pre-development activities for projects funded under the 
FY2008 SuperNOFA for the Section 202 Supportive Housing for the Elderly 
program. Such activities

[[Page 60315]]

include architectural and engineering work, site control planning, and 
other planning activities related to the development of a multifamily 
housing project funded under the FY2008 Section 202 Supportive Housing 
for the Elderly program. Grantees may not use funds for land 
acquisition, leasing, new construction, or property rehabilitation, 
alteration, demolition, or disposition.
    a. All expenses related to eligible activities must be limited to 
those actual costs that are incurred prior to initial closing and be 
otherwise eligible activities under the Section 202 program. Activities 
that are eligible for funding include the following:
    (1) Appraisals. The applicant's cost for obtaining an appraisal to 
establish the fair market value of the proposed site completed by a 
qualified and licensed appraiser.
    (2) Architect Services. The design fees charged by licensed 
architectural/engineering firms for architectural services regarding 
the applicant's project.
    (3) Engineering Services. Actual cost of boundary survey, 
topographic survey, soil borings and tests.
    (4) Environmental Site Assessment. Actual cost incurred for the 
environmental site assessment, i.e., Phase I and Phase II.
    (5) Consultant Services. Up to 20 percent of the total amount of 
the contract between the applicant and its consultant for services 
related to the development and submission of an approvable Section 202 
Fund Reservation Application.
    (6) Cost Analysis. The cost of the contract between the applicant 
and a professional with experience in cost estimation, for an 
independent cost estimate needed to determine the viability of a 
proposed project as required for firm commitment processing under the 
Section 202 program.
    (7) Legal Fees. The cost for legal services and title binder fees.
    (8) Site Control. The applicant's cost for extending the time for 
site control of the original site, including option costs necessary to 
extend the option agreement for up to 18 months, to the closing target 
date. The proceeds of this grant may not be used for site acquisition.
    (9) Market Studies. The applicant's cost for a study completed by a 
qualified, independent, third party, market research firm for purposes 
of examining the need for and verifying the marketability of the 
proposed project.
    (10) Organizational Expenses. The actual cost related to the 
creation of an owner entity for the proposed project pursuant to 
Section 202 program regulations.
    (11) Impact Fees. One-time fees local governments charge Sponsor/
Owners to offset the impact such housing will have on the community. 
(Typical impact fees are traffic, solid waste, sewer, water, electric, 
gas, police protection, and fire protection).
    (12) Relocation Expenses. If the project involves displacement of 
site occupants who are eligible for relocation assistance, indicate the 
total estimated cost.
    (13) Building Permits and Variance Fees. The cost of obtaining 
building permits and variances.
    2. Ineligible Activities. No proposed activity that is deemed to be 
ineligible will be funded from the Demonstration Pre-Development Grant 
funds.
    a. Section 202 Demonstration Pre-Development Grant program funds 
may not be used for the following:
    (1) To acquire sites or other real property, to fund organizational 
overhead and/or operating expenses, for staff salaries, or to fund any 
planning activity that is otherwise ineligible for assistance under the 
Section 202 Supportive Housing for the Elderly program.
    (2) To meet Minimum Capital Investment (MCI) requirements for the 
Section 202 program.
    (3) To meet Performance/Payment Bonds (dual obligee).
    (4) To pay taxes and interest.
    (5) To pay bond premium, builder's risk, liability insurance, 
fidelity bond insurance, performance bond insurance, cash bond, and 
insurance premiums.
    b. In the event that funding awarded under this program is utilized 
for activities or purposes that have not been approved by HUD, the 
Department will seek repayment or any other available remedies.
    3. Applicants submitting proposals involving mixed-financing for 
additional units are not eligible to be considered for pre-development 
funding under this NOFA.

F. Other Submission Requirements

    Application Submission and Receipt Procedures. This section 
provides the application submission and receipt instructions for HUD 
program applications. Refer to the General Section for specific 
procedures for additional information on application submission 
requirements.
    1. Electronic Delivery. Demonstration Pre-Development Grant 
applicants must submit their applications electronically through http://www.grants.gov/applicants/apply_for_grants.jsp, unless a waiver is 
granted. Please be advised that Grants.gov will not accept Microsoft 
Vista or Microsoft 2007 operating systems. Applicants must use 
Microsoft Windows XP versions 2003 and below, or your application will 
not be accepted.
    a. The http://www.grants.gov/applicants/apply_for_grants.jsp Web 
site offers a simple, unified application process. Submission requires 
an authenticated signature and registration at Grants.gov. There are 
five steps to complete the registration process and information is 
available at the www.grants.gov Web site. Applicants should carefully 
read HUD's Federal Register Notice on Early Registration published on 
March 10, 2008 (73 FR 12751), and start the Grants.gov registration 
process immediately upon publication of this NOFA. The registration 
process can take several weeks to complete.
    b. In addition, applicants should carefully read the General 
Section, the Introduction to the FY2008 SuperNOFA and the FY2008 
SuperNOFA SUPPLEMENTARY INFORMATION.
    These notices alert applicants to a recent change in the 
registration process with the Central Contractor Registry (CCR). As of 
August 1, 2006, CCR registrants will not be able to enter or modify 
their name and address information, because it will be pre-populated 
using Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) 
record data. During a new registration or when updating a record, CCR 
registrants will have a choice to accept or reject the information 
provided from D&B. If the CCR registrant agrees with the D&B supplied 
information, the D&B data will be accepted into the CCR registrant 
record. If the CCR registrant disagrees with the D&B supplied 
information, the registrant will need to go to the D&B Web site, http://fedgov.dnb.com/webform, to modify the information contained in the D&B 
record before proceeding with its CCR registration. See further details 
in the above referenced FR Notice.
    2. Instructions on how to submit an electronic application to HUD 
via grants.gov/Apply are contained in section IV.F. of the General 
Section. Also, Grants.gov has a full set of instructions on how to 
apply for funds on its Web site at http://www.grants.gov/applicants/apply_for_grants.jsp. In addition, HUD has published a Desktop User 
Guide for Submitting Electronic Grant Applications which is available 
on HUD's Web site at http://www.hud.gov/utilities/intercept.cfm?/
offices/adm/

[[Page 60316]]

grants/deskuserguide.pdf. The guide contains screen shots and detailed 
instructions. Applicants are encouraged to read all sources of 
instructions carefully.
    3. Waiver of Electronic Submission Requirement. HUD will only 
accept electronic applications submitted through http://www.grants.gov/applicants/apply_for_grants.jsp unless the applicant has received a 
waiver. Applicants that are unable to submit their application 
electronically must seek a waiver of the electronic grant submission 
requirement. Waiver requests must be submitted no later than 15 days 
before the application deadline date. Waiver requests must be submitted 
by mail or by fax. For this Program NOFA, e-mail requests will not be 
considered. Waiver requests submitted by mail or fax should be 
submitted on the applicant's letterhead and signed by an official with 
the legal authority to request a waiver from the Department. The 
request must be addressed to the Assistant Secretary for Housing at the 
following address: Brian D. Montgomery, Assistant Secretary for 
Housing-Federal Housing Commissioner, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 9100, Washington, DC 20410-
8000. Waiver requests submitted by fax must be sent to (202) 708-3104. 
If a waiver is granted, you must submit the required number of copies 
of your application to the Director of the appropriate local HUD 
office, and the application must be received no later than that HUD 
office's close of business on the application deadline date. The waiver 
approval notification will identify the appropriate HUD office where 
the application should be submitted and the required number of copies 
that must be submitted.
    4. Proof of Timely Submission. Applicants must submit their 
applications to http://www.grants.gov/applicants/apply_for_grants.jsp 
in time for receipt and validation at Grants.gov by 11:59:59 p.m. 
Eastern time on the application deadline date. Validation can take 24-
48 hours so applicants should submit with ample time for the process to 
be completed. Applicants are also advised to submit 72 hours in advance 
of the deadline so that they have sufficient time to correct any 
deficiencies that would prevent the acceptance of your application by 
Grants.gov. (Refer to the General Section for specific procedures 
regarding proof of timely submission of applications.)
    5. Address for Submitting Applications. Applications must be 
submitted electronically through the http://www.grants.gov/applicants/apply_for_grants.jsp, unless the applicant receives a waiver from the 
electronic application submission requirement. See section IV of the 
General Section, ``Application Submission and Receipt Procedures,'' for 
information on applying online.
    The applications submitted electronically via http://www.grants.gov/applicants/apply_for_grants.jsp will be electronically 
downloaded and forwarded to the appropriate local HUD office.

V. Application Review Information

A. Criteria

    HUD Headquarters will select applications for the Section 202 
Demonstration Pre-Development Grant based on the HUD Multifamily 
Program Center's rating of the respective FY2008 Section 202 
applications. HUD will award funding under the following process until 
all available funding has been exhausted.

B. Review and Selection Process

    1. HUD's application review process will include, but is not 
limited to, an eligibility review of each pre-development planning 
activity being proposed by the applicant, the reasonableness of the 
proposed cost for each activity, the reasonableness of the applicant's 
proposed budget, and the ability of project Sponsors to expedite the 
development processing of projects from Section 202 Fund Reservation to 
Initial Closing within the 18 month timeframe. All activities must be 
related to the development of the Section 202 housing project selected 
under the FY2008 Section 202 Supportive Housing for the Elderly program 
and be otherwise eligible activities under the Section 202 program.
    2. Review for Curable Deficiencies. A curable deficiency is a 
missing exhibit or portion of an exhibit that will not affect the 
eligibility of the applicant. The exhibits identified by asterisk (*) 
as threshold requirements must be dated on or before the application 
deadline date. Refer to the General Section of the SuperNOFA for 
additional information regarding procedures for corrections to 
deficient applications. HUD will screen all applications received by 
the application submission deadline for curable deficiencies. The HUD 
Office will notify you in writing if your application is missing any of 
the exhibits or portions of exhibits, as listed in Section IV.B. of 
this NOFA. You will then be given 14 calendar days from the date of the 
HUD written notification to submit the information required to cure the 
noted deficiencies.
    3. Review for Threshold Requirements. All applications must meet 
the threshold requirements identified in the General Section of the 
FY2008 SuperNOFA and in Section IV.B. and Section III.C.2. of this 
Program NOFA. Failure to meet any threshold item will render an 
application ineligible for funding consideration. Please note that 
Section III.C.2. of the General Section of the FY2008 SuperNOFA, and 
the items identified by an asterisk (*) as listed in Section IV.B. and 
in Section III.C.2. of this NOFA, are also threshold requirements and 
must be dated on or before the application deadline date. Failure to 
satisfy all threshold requirements at the time of submission will 
render the application in question as non-responsive to this NOFA, and 
the application will be subject to no further review. See the General 
Section of the FY2008 SuperNOFA for additional procedures for 
corrections to deficient applications.
    4. Technical Review. HUD Multifamily Field Office staff will review 
applications that passed the threshold review for compliance with the 
eligibility criteria set forth in this NOFA. However, HUD will not 
reject your application based on technical review without notifying you 
of that rejection, the reason(s) for the rejection, and providing you 
with an opportunity to appeal. You will have 14 calendar days from the 
date of HUD's written notice to appeal a technical rejection to the HUD 
office. The HUD office will make a determination on an appeal before 
making its selection of projects to be forwarded to HUD Headquarters. 
HUD Field Office staff will forward to Headquarters a listing of 
eligible applications that were received by the deadline date, that met 
all eligibility criteria, that proposed reasonable costs for eligible 
activities, and that included all technical corrections by the 
designated deadline date.
    5. HUD Headquarters will select Section 202 Demonstration Pre-
Development Grant applications based on HUD Multifamily Program 
Centers' rating of the respective FY2008 Section 202 application, 
beginning with the highest rated application nationwide. After this 
selection, HUD Headquarters will select the next highest rated 
application in another Program Center. Only one application will be 
selected per Multifamily Program Center. However, if there are no 
approvable applications in other Multifamily Program Centers, the 
process will begin again with the selection of the next highest rated 
application nationwide.

[[Page 60317]]

More than one application may be selected per HUD Multifamily Program 
Center if there are no other approvable applications.
    This process will continue into a second and subsequent round(s) 
until all approvable applications are selected using the available 
remaining funds. HUD Headquarters will fully fund as many applications 
as allocated funds will allow. HUD Headquarters will review its 
selection results to ensure that no single entity (including affiliated 
entities) receives grant funding in excess of $800,000. Once an 
organization receives its maximum amount of grant funding, no other 
projects from that organization will be eligible for selection from the 
succeeding rounds.
    If there is a tie score between two or more applications, HUD will 
select the applicant with the highest score in Rating Factor 1 of the 
FY2008 Section 202 application. If Rating Factor 1 is scored 
identically, the score in Rating Factor 2, 3, and 4, of the FY2008 
Section 202 application, will be compared in that order, until one of 
the applications receives a higher score. If both applications still 
score the same, then the application which requests the least funding 
will be selected.
    6. Adjustments to Funding/Reduction of Requested Grant Amount. See 
Section II.D. of this Program NOFA.

VI. Award Administration Information

    A. Award Notices. Following the congressional notification process, 
HUD will issue a press release announcing the selection of awards. Once 
such an announcement has been made, successful applicants will receive 
their selection letters and grant agreement, including an approved 
Logic Model, via regular or overnight mail. The grant agreement is the 
legally binding document that establishes a relationship between HUD 
and the award recipient organization. Once properly executed, funds are 
obligated, and the disbursement of funds is generally authorized.
    1. As a condition of receiving a grant under this Section 202 
Demonstration Pre-Development program, Grantees must open a separate, 
non-interest bearing account for the receipt and handling of these 
funds.
    2. All applicants that were not selected for funding will receive a 
non-selection letter.
    3. You may request a debriefing on your application in accordance 
with section VI.A. of the General Section of the FY2008 SuperNOFA. The 
request must be made to the Director of Multifamily Housing, in the HUD 
field office that has jurisdiction over the housing development 
identified in your application, to which you sent your application.
    B. Administrative and National Policy Requirements. The 
Consolidated Appropriations Act 2008 (Pub. L. 110-161) requires HUD to 
obligate all Section 202 funds appropriated for FY2008 by September 30, 
2011. Under 31 U.S.C. 1551, no funds can be disbursed from this account 
after September 30, 2016. Under this Section 202 demonstration 
predevelopment grant program obligation of funds occurs upon execution 
of the Grant Agreement.
    C. Reporting. Grantees must submit quarterly updates of the Program 
Outcome Logic Model (form HUD-96010) as well as quarterly SF 269, 
Financial Status Reports. In order for HUD to evaluate the 
effectiveness of the Demonstration Pre-Development Grant program (DPG) 
funding, each Logic Model must indicate the results achieved against 
the proposed output goal(s) and proposed outcome(s) which were stated 
in the FY2008 Section 202 DPG program application and agreed upon by 
HUD. HUD requires that funded recipients collect racial and ethnic 
beneficiary data. It has adopted the Office of Management and Budget's 
(OMB) Standards for Collection of Racial and Ethnic Data. In view of 
these requirements, you should use form HUD-27061, Racial and Ethnic 
Data Reporting Form (and instructions for its use) found on http://www.HUDclips.org.
    D. Environmental Requirements. The provision of assistance under 
this NOFA is categorically excluded from environmental review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321) and not 
subject to compliance action for related environmental authorities 
under 24 CFR 50.19(b)(1), (3), (5), (8) and (16).
    E. Environmental Impact. This NOFA does not direct, provide for 
assistance or loan and mortgage insurance for, or otherwise govern or 
regulate, real property acquisition, disposition, leasing, 
rehabilitation, alteration, demolition, or new construction, or 
establish, revise or provide for standards for construction or 
construction materials, manufactured housing, or occupancy. 
Accordingly, under 24 CFR 50.19(c)(1), this NOFA is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321).

VII. Agency Contacts

    A. For programmatic information you may contact the appropriate 
local HUD office, or Denise Taylor-Parker at HUD Headquarters at (202) 
402-2892, or via the Internet at Denise--Taylor-Parker @hud.gov. 
Persons with hearing and speech impairments may access the above number 
via TTY by calling the toll-free Federal Relay Service at 1-800-877-
8339.
    B. For technical assistance in downloading and submitting an 
application package through http://www.grants.gov/applicants/apply_for_grants.jsp, contact the Grants.gov Help Desk at 1-800-518-GRANTS, 
or by sending an e-mail to [email protected].

VIII. Other Information

A. Section 102 of the HUD Reform Act, Documentation and Public Access

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

[[Page 60318]]

of all decisions made by HUD to provide:
    a. Assistance subject to Section 102(a) of the HUD Reform Act; and
    b. Assistance provided through grants or cooperative agreements on 
a discretionary (non-formula, non-demand) basis, but that is not 
provided on the basis of a competition.
    B. Section 103 of the HUD Reform Act. HUD's regulations 
implementing Section 103 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3537a), codified at 24 CFR 
part 4, subpart B, apply to this funding competition. The regulations 
continue to apply until the announcement of the selection of successful 
applicants. HUD employees involved in the review of applications and in 
the making of funding decisions are prevented by the regulations from 
providing advance information to any person (other than an authorized 
employee of HUD) concerning funding decisions or from otherwise giving 
any applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted under 24 CFR part 4. Applicants or employees 
who have ethics-related questions should contact the HUD Ethics Law 
Division at (202) 708-3815. (This is not a toll-free number.) HUD 
employees who have specific program questions should contact the 
appropriate field office counsel or Headquarters counsel for the 
program to which the question pertains.
    C. Paperwork Reduction Act Statement. The information collection 
requirements contained in this document are currently approved by the 
Office of Management and Budget (OMB) under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2502-
0267. In accordance with the Paperwork Reduction Act, HUD may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection displays a currently 
valid OMB control number. Public reporting burden for the collection of 
information is estimated to average 4 hours per annum per respondent 
for the application and grant administration. This includes the time 
for collecting, reviewing, and reporting the data for the application, 
semi-annual reports and final report. The information will be used for 
grantee selection and monitoring the administration of funds. Response 
to this request for information is required in order to receive the 
benefits to be derived.

    Dated: October 2, 2008.
Ronald Y. Spraker,
Acting General Deputy Assistant Secretary for Housing.
[FR Doc. E8-24196 Filed 10-9-08; 8:45 am]
BILLING CODE 4210-67-P