[Federal Register Volume 79, Number 184 (Tuesday, September 23, 2014)]
[Notices]
[Pages 56819-56821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22569]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. 5774-N-02]


Promise Zones Initiative: Second Round Application Process

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

ACTION: Notice.

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SUMMARY: Through this notice, HUD provides notice on the selection 
process, criteria, and application submission for the second round of 
the Promise Zone initiative.

DATES: Application due date is 5:00 p.m. on November 21, 2014.

ADDRESSES: Interested eligible organizations are invited to submit 
applications for a Promise Zone designation. Questions or comments 
regarding the application process should be directed by email to 
[email protected]. Questions or comments may also be directed by 
postal mail to the Office of the Deputy Assistant Secretary for 
Economic Development, U.S. Department of Housing and Urban Development, 
451 Seventh Street SW., Room 7244, Washington, DC 20410, ATTN: Second 
Round Promise Zone selections.

FOR FURTHER INFORMATION CONTACT: Brooke Bohnet, U.S. Department of 
Housing and Urban Development, 451 7th Street SW., Washington, DC 
20410; telephone number 202-402-6693. This is not a toll-free number. 
Persons with hearing or speech impairments may access this number 
through TTY by calling the toll-free Federal Relay Service at (800) 
877-8339.

SUPPLEMENTARY INFORMATION:

Background

    In his 2013 State of the Union address, President Obama announced 
the establishment of the Promise Zones initiative to partner with high-
poverty communities across the country to create jobs, increase 
economic security, expand educational opportunities, increase access to 
quality, affordable housing, and improve public safety.\1\ On January 
8, 2014, the President announced the first five Promise Zones, which 
are located in: San Antonio, TX; Philadelphia, PA; Los Angeles, CA; 
Southeastern Kentucky, KY; and the Choctaw Nation of Oklahoma, OK. Each 
of these communities (three urban, one rural, and one tribal) submitted 
a plan on how it will partner with local business and community leaders 
to make investments that reward hard work and expand opportunity. In 
exchange, the Federal government is helping these Promise Zone 
designees secure the resources and flexibility they need to achieve 
their goals.\2\ The urban designations were conferred by HUD, while the 
rural and tribal designations were conferred by USDA.
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    \1\ See http://www.whitehouse.gov/the-press-office/2013/02/15/fact-sheet-president-s-plan-ensure-hard-work-leads-decent-living.
    \2\ See http://www.whitehouse.gov/the-press-office/2014/01/08/fact-sheet-president-obama-s-promise-zones-initiative.
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Promise Zones Benefits

    The Promise Zone designation partners the Federal government with 
local leaders who are addressing multiple community revitalization 
challenges in a collaborative way and have demonstrated a commitment to 
results. Further, Promise Zones will be assigned Federal staff to help 
navigate the array of Federal assistance and programs already available 
to them. In addition, eligible applicants in Promise Zones will receive 
any available (a) preference for certain competitive Federal programs 
and (b) technical assistance. Subject to enactment by Congress, 
businesses investing in Promise Zones or hiring residents of Promise 
Zones will be eligible to receive tax incentives. Altogether, this 
package of assistance will help local leaders accelerate efforts to 
revitalize their communities.
    The Promise Zone designation will be for a term of 10 years and may 
be extended as necessary to capture the full term of availability of 
the Promise Zone tax incentives, if the tax incentives are enacted. 
During this term, the specific benefits made available to Promise Zones 
may vary from year to year, and sometimes more often than annually, due 
to changes in Federal agency policies and changes in appropriations and 
authorizations for relevant programs. All assistance provided to 
Promise Zones is subject to applicable regulations, statutes, and 
changes in federal agency policies, appropriations, and authorizations 
for relevant programs. Subject to these limitations, the Promise Zone 
designation commits the Federal government to partner with local 
leaders who are addressing multiple community revitalization challenges 
in a collaborative way and have demonstrated a commitment to results.

Response to Public Comment

    On April 17, 2014, HUD published a notice in the Federal Register 
79 FR 21785 to solicit comments from first round applicants, interested 
parties, and the general public on the first round of the Promise Zones 
initiative and the proposed selection process for the second round of 
the Promise Zone initiative. The public comment period

[[Page 56820]]

closed on June 16, 2014. HUD received 95 public comments. Comments were 
submitted by members of Congress, mayors, city council members, local 
government officials, public housing agencies, think tanks, nonprofit 
organizations and the general public. HUD and USDA, in consultation 
with federal interagency partners of the Promise Zone initiative, 
provided responses to public comments and can be found at www.hud.gov/promisezones.

Second Round Promise Zones Selection Process

    This notice announces the opening of the application period for a 
second round of Promise Zone designations. HUD and USDA have 
reorganized and revised the Application Guide to make it more readable 
and user-friendly for applicants. Applications are due by 5:00 p.m. EST 
on November 21, 2014 with announcements expected in 2015. As a result 
of this competition, HUD intends to designate six urban communities and 
USDA intends to designate at least one rural and at least one tribal 
community. A total of 20 Promise Zone designations will be made by the 
end of calendar year 2016. Three urban, one rural and one tribal 
community were designated in January of 2014. Competitions for the 
remaining round of designations will commence in calendar year 2015. To 
provide a positive user experience and accommodate an anticipated 
increase in submissions, applications will be submitted via 
www.Max.gov.
    Due to the cross-disciplinary nature of the initiative, the list of 
eligible Lead Applicants has been updated to reflect that Promise Zone 
activities are likely to be carried out by a variety of organizations 
and organization types, including organizations that have specific 
roles in the delivery of programs funded by different Federal agencies. 
Most such organizations are eligible under the categories of 
governmental and nonprofit organizations that were previously listed as 
eligible Lead Applicants. HUD and USDA included examples might 
encourage communities to engage organizations that are the most 
appropriate to respond to their needs and lead revitalization efforts. 
Eligible Lead Applicants for Urban Promise Zone designations are: Units 
of General Local Government \3\ (UGLG or local government) including an 
office or department within local government and a county government in 
partnership with the local municipality, if applicable; or nonprofit 
organizations applying in partnership with local government; or Public 
Housing Agency or Local Education Agencies (LEAs), or Metropolitan 
Planning Organizations or community colleges applying in partnership 
with local government. Eligible Lead Applicants for Rural and Tribal 
Promise Zone designations are: Local governments (which includes 
county, city, town, township, parish, village, governmental authority 
or other general-purpose political subdivision of a state or 
combination thereof) and Federally-recognized tribes; \4\ Nonprofit 
organizations applying in partnership with local government or tribal 
government; Public housing agency applying in partnership with local 
government, or Tribally Designated Housing Entities (TDHEs) applying in 
partnership with tribal government; or Local Education Agencies (LEAs) 
applying in partnership with local or tribal government; or community 
colleges applying in partnership with local or tribal government.
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    \3\ Unit of general local government as defined in section 
102(a)(1) of the Housing and Community Development Act of 1974 (42 
U.S.C. 5302(a)(1)). See definition (a) (1) Unit of General Local 
Government.
    \4\ ``Tribal applicants'' are: Federally-recognized tribes as 
well as duly established political subdivisions of a Federally-
recognized tribe. A ``Federally-recognized tribe'' is any Indian 
tribe, band, nation, or other organized group or community of 
Indians, including any Alaska Native village or regional or village 
corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act [43 USCS Sec. Sec.  1601 et seq.], that 
is recognized as eligible for the special programs and services 
provided by the United States to Indians because of their status as 
Indians pursuant to the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) A Nonprofit organization 
applying in partnership with a Federally-recognized tribal 
government may apply as a tribal applicant.
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    Any Lead Applicant whose proposed Promise Zone boundaries meet the 
qualifying criteria set forth in the Second Round Application Guide is 
eligible to apply for a Promise Zone designation. All of the following 
must be present in an application for a proposed Urban Promise Zone to 
be eligible for a designation: (1) The Promise Zone must encompass one 
or more census tract(s) or portions of census tracts across a 
contiguous geography; (2) The rate of overall poverty or Extremely Low 
Income rate (whichever is greater) of residents within the Promise Zone 
must be at or above 33 percent; (3) Promise Zone boundaries must 
encompass a population of at least 10,000 but no more than 200,000 
residents; and (4) Local leadership, including the mayors or chief 
executives of all UGLGs represented in the Promise Zone, must 
demonstrate commitment to the Promise Zone effort. Proposed Promise 
Zone boundaries may cross UGLG lines, but one Lead Applicant must be 
identified, and for cross-jurisdictional applications, commitment must 
be demonstrated by the leadership of all the UGLGs involved.
    All the following must be present to be eligible for a Rural or 
Tribal Promise Zone designation: (1) Rural and Tribal Promise Zones 
must encompass one or more census tract(s) across a contiguous 
geography.\5\ Rural applicants can define their boundaries by either 
census tracts or by county, where multiple counties are included. 
Tribal applicants can define boundaries which may encompass: One or 
more census tracts and nearby tribally-controlled areas; or 
reservations; or consortia of tribal and non-tribal jurisdictions; (2) 
Promise Zone boundaries must encompass a population of no more than 
200,000 residents.\6\ The population limit of 200,000 may not include 
any incorporated municipalities or unincorporated areas with individual 
populations greater than 50,000. Rural and tribal Promise Zones may 
fall in non-metro and metro counties; (3) The rate of overall poverty 
or Extremely Low Income rate (whichever is greater) \7\ of residents 
within the Promise Zone must be at or above 20 percent and the Promise 
Zone must contain at least one census tract with a poverty rate at or 
above 30 percent; \8\ and (4) Local leadership must demonstrate 
commitment to the Promise Zone effort. Tribal applications must include 
commitment of tribal jurisdiction(s) represented. Proposed Promise Zone 
boundaries may cross UGLG or tribal area lines, but one Lead Applicant 
must be identified, and for cross-jurisdictional applications, 
commitment must be demonstrated by the leadership of all UGLGs or 
tribal areas involved.
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    \5\ For rural and tribal applications, Promise Zone boundaries 
that cross state lines and water borders can be considered 
contiguous.
    \6\ The population limit of 200,000 is intended to allow for 
regional collaboration among multiple communities of varying sizes 
and capacities. The rural eligibility criteria ensure, by 
definition, that rural Promise Zone applications cannot include 
communities over 50,000.
    \7\ The estimated concentration of Extremely Low Income (ELI) 
households represents an approximation of the percent of households 
within the specified area whose household combined income is below 
30% of the HUD defined Area Median Income (AMI). This ELI indicator 
is calculated with data from the block group level from 
Comprehensive Housing Affordability Strategy (CHAS) 2010. The final 
number included in this report for ``poverty rate'' is the greater 
of these two indicators.
    \8\ Applicants are required to use the Promise Zones mapping 
tool to determine the overall poverty rate. The mapping tool 
determines the overall poverty rate in two ways and uses the higher 
percentage.

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[[Page 56821]]

    Under the second round process, only one Promise Zone application 
may be submitted in association with an UGLG or tribal area per 
application cycle. If more than one application is submitted for a 
Promise Zone meeting the qualifying criteria, the one submitted with 
local government support will be accepted. If more than one application 
is submitted with local government support in association with a UGLG 
or tribal area, including applications that cross jurisdictional lines, 
all of the applications from that UGLG or tribal area will be 
disqualified for the current application cycle.
    If a Promise Zone designated in Round 1 is located within a UGLG in 
which a new application is being made, the applicant is directed to 
include an explanation of how, if a second Promise Zone designation is 
made, the UGLG plans to work with all of the Promise Zone designees at 
the same time and sustain the level of effort, resources, and support 
committed to each Promise Zone under its respective Promise Zone plan 
for the full term of each designation. This explanation should be 
evidenced by commitments from the UGLG in materials submitted by the 
mayor or local official in support of the application.

Application Review

    Applications for Promise Zone designations will be reviewed by 
representatives from the Department of Agriculture, the Department of 
Housing and Urban Development, the Department of Education, the 
Department of Justice, the Department of Health and Human Services, the 
Department of Labor, and the Department of Transportation. Additional 
Federal agencies and outside entities may contribute reviewers, 
depending upon the anticipated volume of applications.
    Reviewers will first verify that the application is submitted by an 
applicant eligible for selection, by verifying that the proposed 
Promise Zone meets the qualifying criteria and that the Lead Applicant 
meets the eligibility criteria for the second round selection process. 
For urban applications, reviewers will confirm the subcategory in which 
each application should be considered (large Metropolitan Core Based 
Statistical Area (Metro CBSA) or small/medium Metro CBSA).\9\
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    \9\ Urban application subcategories are defined as: Large Metro 
CBSA: The proposed Promise Zone community is located in a 
Metropolitan Core Based Statistical Area (Metro CBSA) with a total 
population of 500,000 or more. Small/medium Metro CBSA: The proposed 
Promise Zone community is located within the geographic boundaries 
of a Metro CBSA with a population of 499,999 or less. Additional 
information regarding Metropolitan Core Based Statistical Areas and 
Principal City can be found at http://www.whitehouse.gov/sites/default/files/omb/bulletins/2013/b13-01.pdf.
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    Rural applications will be ranked against other rural applications, 
tribal applications will be ranked against other tribal applications, 
and urban applications will be ranked against other urban applications. 
An application must score a total of 75 points or more out of 100 
points, to be considered for a designation (scoring 75 points or more 
means that applications fall within the ``competitive range''). Once 
scored, applications will be ranked competitively within each of the 
three Promise Zones categories and within the urban subcategories, as 
applicable.
    HUD intends to designate at least one small/medium Metro CBSA. If 
the number of eligible applications determined to belong to the small/
medium Metro CBSA subcategory is fewer than the greater of (1) five 
total applications, or (2) ten percent of the total number of urban 
applications received, then the applications in the small/medium Metro 
CBSA subcategory will be included in the large Metro CBSA subcategory 
and ranked against those applications. In addition to the application 
materials, reviewers may consider public information available from 
participating agency records, the name check review, public sources 
such as newspapers, Inspector General or Government Accountability 
Office reports or findings. Any evidence cited in the Goals and 
Activities Template may also be reviewed.

Application Submission

    Applications must provide a clear description of how the Promise 
Zone designation would accelerate and strengthen the community's 
efforts at comprehensive community revitalization. No substantive or 
technical corrections will be accepted or reviewed after the 
application deadline. The Second Round Application Guide can be found 
at www.hud.gov/promisezones. Applications are due via the Promise Zone 
application portal at www.Max.gov by 5:00 p.m. EST on November 21, 
2014. Directions on how to access and use the application portal are 
available at www.hud.gov/promisezones.
    To prepare for the number of applications, an optional Letter of 
Intent is available in the Promise Zone application portal at 
www.Max.gov and is requested by October 17, 2014. If the Lead Applicant 
requests to use alternative data sources to meet the eligibility 
criteria or for the Need application section, a one-page explanation 
noting the alternative data source must be submitted to 
[email protected] with the subject line ``Alternative data source 
request'' by October 17, 2014 to be approved by the relevant 
designating agency (HUD or USDA).

    Dated: September 17, 2014.
Carol Galante,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2014-22569 Filed 9-22-14; 8:45 am]
BILLING CODE 4210-67-P