NOFA for Fair Housing Initiatives Program; FY 1994 Competitive Solicitation

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Fair Housing and Equal

Opportunity

[Docket No. N-94-3755; FR-3622-N-01]

NOFA for Fair Housing Initiatives Program; FY 1994 Competitive

Solicitation

AGENCY: Office of the Assistant Secretary for Fair Housing and Equal

Opportunity, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This NOFA announces the availability of up to $14,881,000 of

1994 Fiscal Year (FY) funding for the Fair Housing Initiatives Program

(FHIP). This program assists projects and activities designed to

enforce and enhance compliance with the Fair Housing Act and

substantially equivalent State and local fair housing laws. In the body

of this document is information concerning the purpose of the NOFA,

eligibility, available amounts, selection criteria, how to apply for

funding, and how selections will be made.

DATES: An application kit for funding under this Notice will be

available following publication of the Notice. The actual application

due date will be specified in the application kit. However, applicants

will be given at least 60 days from today's date, until July 15, 1994,

to submit their applications. Applications will be accepted if they are

received on or before the application due date, or are received within

7 days after the application due date, but with a U.S. postmark or

receipt from a private commercial delivery service (such as, Federal

Express or DHL) that is dated on or before the application due date.

ADDRESSES: To obtain a copy of the application kit, please write the

Fair Housing Information Clearinghouse, Post Office Box 6091,

Rockville, MD 20850 or call the toll free number 1-800-343-3442. Please

also contact this number if information concerning this NOFA is needed

in an accessible format.

FOR FURTHER INFORMATION CONTACT: Jacquelyn J. Shelton, Director, Office

of Fair Housing Assistance and Voluntary Programs, room 5234, 451

Seventh Street, SW., Washington, DC 20410-2000. Telephone number (202)

708-0800. A telecommunications device (TDD) for hearing and speech

impaired persons is available at (202) 708-0455. (These are not toll-

free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

Application requirements associated with this program have been

approved by the Office of Management and Budget, under section 3504(h)

of the Paperwork Reduction Act of 1980 (44 U.S.C. 3054(h)), and

assigned OMB control number 2529-0033.

I. Purpose and Substantive Description

(a) Authority

Title VIII of the Civil Rights Act of 1968, as amended, 42 U.S.C.

3601-19 (Fair Housing Act), charges the Secretary of Housing and Urban

Development with responsibility to accept and investigate complaints

alleging discrimination based on race, color, religion, sex, handicap,

familial status or national origin in the sale, rental, or financing of

most housing. In addition, the Fair Housing Act directs the Secretary

to coordinate action with State and local agencies administering fair

housing laws and to cooperate with, and render technical assistance to,

public or private entities carrying out programs to prevent and

eliminate discriminatory housing practices.

Section 561 of the Housing and Community Development Act of 1987,

42 U.S.C. 3616 note, established the Fair Housing Initiatives Program

(FHIP) to strengthen the Department's enforcement of the Fair Housing

Act and to further fair housing. This program assists projects and

activities designed to enforce and enhance compliance with the Fair

Housing Act and substantially equivalent State and local fair housing

laws. Implementing regulations are found at 24 CFR part 125.

Three general categories of activities were established at 24 CFR

part 125 for FHIP funding under section 561 of the Housing and

Community Development Act of 1987: The Administrative Enforcement

Initiative, the Education and Outreach Initiative, and the Private

Enforcement Initiative. Section 905 of the Housing and Community

Development Act of 1992 (HCDA 1992) (Pub. L. 102-550, approved October

28, 1992), amended section 561 by adding specific eligible applicants

and activities to the Education and Outreach and Private Enforcement

Initiatives, as well as an entirely new Fair Housing Organizations

Initiative.

More significantly, section 905 has established FHIP as a permanent

program. As originally promulgated by section 561, FHIP was a

demonstration program authorized to expire on September 30, 1992. Since

this demonstration period has passed, and FHIP is now a permanent

program, the Department has determined that the requirements

specifically tied to the demonstration period, namely, the testing

guidelines at Sec. 125.405, are no longer applicable to FHIP.

Accordingly, the use of these testing guidelines is not required under

this NOFA. The Department has executed a waiver of Sec. 125.405 for the

purposes of this NOFA, pending the elimination of this provision in the

revision of 24 CFR part 125. Because section 905 does not eliminate any

FHIP provisions other than those related to its status as a

demonstration program, the Initiatives and activities currently

eligible under 24 CFR part 125 remain eligible under this NOFA.

This NOFA further incorporates the HCDA 1992 section 905 FHIP

additions to the extent of including the new eligible applicants and

activities, and the new Fair Housing Organizations Initiative. For the

purpose of future funding rounds, the Department is soliciting in a

separate proposed rule comments on the amendment of 24 CFR part 125 by

section 905. The proposed rule will be published shortly in the Federal

Register. However, applications for FY 1994 funds will be subject to

the requirements and deadlines in this NOFA. Eligible applicants should

not wait for the rule's publication to prepare and submit their FY 1994

applications in response to this NOFA.

Two of the new eligible applicants, fair housing enforcement

organizations and qualified fair housing enforcement organizations, are

given specific definitions, which apply to this NOFA, in section 905:

Fair housing enforcement organization means any organization that--

(1) Is organized as a private, tax-exempt, nonprofit, charitable

organization;

(2) Is currently engaged in complaint intake, complaint

investigation, testing for fair housing violations and enforcement of

meritorious claims; and

(3) Upon the receipt of FHIP funds will continue to be engaged in

complaint intake, complaint investigation, testing for fair housing

violations and enforcement of meritorious claims.

Qualified fair housing enforcement organization means any

organization, whether or not it is solely engaged in fair housing

enforcement activities, that--

(1) Is organized as a private, tax-exempt, nonprofit, charitable

organization;

(2) Has at least 2 years experience in complaint intake, complaint

investigation, testing for fair housing violations and enforcement of

meritorious claims; and

(3) Is engaged in complaint intake, complaint investigation,

testing for fair housing violations and enforcement of meritorious

claims at the time of application for FHIP assistance.

The program components of FHIP are described in the Catalog of

Federal Domestic Assistance at 14.408, Administrative Enforcement

Initiative; 14.409, Education and Outreach Initiative; 14.410, Private

Enforcement Initiative; and 14.413, Fair Housing Organizations

Initiative.

(b) Allocation Amounts

For FY 1994, the Departments of Veterans Affairs and Housing and

Urban Development, and Independent Agencies Appropriations Act, 1994

(approved October 28, 1993, Pub. L. 103-124), (94 App. Act)

appropriated $20,481,000 for the FHIP program. Of this amount,

$2,000,000 of Private Enforcement Initiative funds will be used to fund

the second year of two-year projects approved under the FY 1993 FHIP

NOFA; $2,000,000 of Private Enforcement Initiative funds will be made

available for special projects to be announced in a separate NOFA; and

$1,600,000 of Fair Housing Organizations Initiative funds will be used

to fund the second year of two-year projects to establish new

organizations approved under the FY 1993 FHIP NOFA. The remaining

$14,881,000 is being made available on a competitive basis to eligible

organizations that submit timely applications and are selected in

response to this NOFA. The funding selections will be made on the basis

of criteria for eligibility, factors for award, and completeness of

budget information. The Department retains the right to shift funds

between FHIP Initiatives, listed below, within statutorily prescribed

limitations. The amounts included in this NOFA are subject to change

based on fund availability. The total amount available under this NOFA

will be divided among the four FHIP Initiatives as follows:

(1) Administrative Enforcement Initiative. The amount of $1.5

million in FY 1994 funds is available under this NOFA for the

Administrative Enforcement Initiative.

(2) Education and Outreach Initiative. The amount of $3 million in

FY 1994 funds is available under this NOFA for the Education and

Outreach Initiative. Of this amount, $1.5 million is available for

national programs, of which $200,000 is designated for Fair Housing

Month activities. Of the remaining $1.5 million, $1 million is

available for regional and local programs, and $500,000 is for

community-based programs.

(3) Private Enforcement Initiative. The amount of $4,981,000 in FY

1994 funds is available under this NOFA for the Private Enforcement

Initiative. Of this amount, $2,981,000 will be available for two-year

projects, with the commitment of second year funding, in an amount not

to exceed the first year's funding, subject to annual appropriations

and annual performance reviews. The remaining $2 million is for one-

year projects.

(4) Fair Housing Organizations Initiative. This NOFA makes $5.4

million in FY 1994 funds available for activities under the Fair

Housing Organizations Initiative. Of this amount, $2.5 million in FY

1994 funds is available for the purpose of the continued development of

existing organizations under the Fair Housing Organizations Initiative.

The remaining $2.9 million will be available for two-year projects for

the purpose of establishing new organizations, with the commitment of

second year funding subject to annual appropriations and annual

performance reviews.

(c) Eligibility

Eligible activities, eligible applicants, and additional

requirements under each Initiative are listed below. All activities and

materials funded by FHIP must be reasonably accessible to persons with

disabilities. The Department is particularly interested in projects

that address fair housing issues confronting persons with disabilities.

(1) Administrative Enforcement Initiative

(i) Eligible applicants. The Administrative Enforcement Initiative

provides funding to State and local fair housing agencies administering

fair housing laws certified by the Secretary as providing rights and

remedies that are substantially equivalent to those provided in the

Fair Housing Act. A State or local fair housing agency, to be eligible

to participate in the Administrative Enforcement Initiative, must be

certified by the Assistant Secretary as substantially equivalent under

24 CFR part 115, or have entered into an agreement with the Department

for interim referrals, as provided in 24 CFR 115.11.

(ii) Eligible activities. Funding will be available to support

enforcement and compliance activities conducted by eligible State and

local agencies. Eligible activities may include (but are not limited

to) the following:

(A) Projects that focus on the areas of mortgage lending, insurance

redlining, and appraisal practices;

(B) Discovering and providing remedies for discrimination in the

public and private real estate markets and real estate-related

transactions, including, but not limited to, the making or purchasing

of loans, the provision of other financial assistance for sales and

rentals of housing, including insurance redlining and appraisal

practices, and housing advertising;

(C) Implementing fair housing testing and other related enforcement

activity programs;

(D) Conducting investigations of systemic discrimination for

further enforcement processing by State or local agencies, or for

referral to HUD and the Department of Justice; and

(E) Developing new procedures to increase the efficiency of

operations, such as the use of computers for case processing, tracking,

and Home Mortgage Disclosure Act (HMDA) analysis.

(iii) Additional requirements. (A) Testers in testing activities

funded with Administrative Enforcement Initiative funds must not have

prior felony convictions or convictions of crimes involving fraud or

perjury, and they must receive training or be experienced in testing

procedures and techniques.

(B) Term of contract. Administrative Enforcement Initiative funding

is only available for one-year projects, which may be for up to

eighteen months in duration.

(C) Projects that appear to be aimed solely or primarily at

research or data-gathering unrelated to existing or planned fair

housing enforcement programs will not be approved. Data-gathering

activities will require OMB approval under the Paperwork Reduction Act

before commencement of the activity.

(D) No recipient of assistance under the Administrative Enforcement

Initiative may use any funds provided by the Department for the payment

of expenses in connection with litigation against the United States.

(E) Case tracking log requirement. Recipients of funds under the

Administrative Enforcement Initiative shall be required to record, in a

case tracking log (or Fair Housing Enforcement Log) to be supplied by

HUD, information appropriate to the funded project relating to the

number of complaints of discrimination received; the basis of these

complaints; the type and number of tests utilized in the investigation

of each allegation; the time for case processing, including

administrative or judicial proceedings; the cost of testing activities

and case processing; and case outcome or relief provided. The recipient

must agree to make this log available to HUD.

(2) Education and Outreach Initiative

(i) Eligible applicants. The following types of organizations are

eligible to receive funding under the Education and Outreach

Initiative:

(A) State or local governments;

(B) Qualified fair housing enforcement organizations (QFHO-Es);

(C) Fair housing enforcement organizations (FHO-Es);

(D) Public or private non-profit organizations or institutions and

other public or private entities that are formulating or carrying out

programs to prevent or eliminate discriminatory housing practices;

(E) Fair Housing Assistance Program (FHAP) Agencies--State and

local agencies funded by the Fair Housing Assistance Program (FHAP);

and

(F) Community Housing Resource Boards (CHRBs).

(ii) Eligible activities. (A) In general. Each application for

Education and Outreach Initiative funding must identify if it proposes

a national, Fair Housing Month, regional or local, or community-based

program. The kinds of activities that may be funded through this

Initiative may include (but are not limited to) the following:

(1) Projects that focus on informing persons with disabilities,

and/or their support organizations and service providers, housing

providers, and the general public on the rights of disabled persons

under the Fair Housing Act and on the location or availability of

accessible housing or the modification of non-accessible housing are

particularly encouraged;

(2) Projects that provide guidance to housing providers on meeting

their Fair Housing Act obligation to make reasonable accommodations for

persons with disabilities are also encouraged;

(3) Projects that will provide housing, mortgage lending,

appraisal, and insurance counseling services;

(4) Developing informative material on fair housing rights and

responsibilities;

(5) Developing fair housing and affirmative marketing instructional

material for educational programs for national, regional and local

housing industry groups;

(6) Providing educational seminars and working sessions for civic

associations, community-based organizations, and other groups;

(7) Developing educational material targeted at persons in need of

specific or additional information on their fair housing rights;

(8) Developing national, regional or local media campaigns

regarding fair housing;

(9) Bringing housing industry and civic or fair housing groups

together to identify illegal real estate practices and to determine how

to correct them;

(10) Designing specialized outreach projects to inform all persons

of the availability of housing opportunities;

(11) Developing and implementing a response to new or more

sophisticated practices that result in discriminatory housing

practices;

(12) Developing mechanisms for the identification of, and quick

response to, housing discrimination cases involving the threat of

physical harm;

(13) Developing and implementing school curriculums for fair

housing courses;

(14) Developing and implementing a response to community opposition

to the location of residential facilities for persons with

disabilities, as defined under the Fair Housing Act, where supportive

health or human services are provided in connection with the housing;

and

(15) Developing materials and providing technical assistance to

support compliance with housing adaptability and accessibility

guidelines contained in the 1988 Fair Housing Amendments Act.

(B) National programs. (1) Activities eligible to be funded as

national programs shall be designed to provide a centralized,

coordinated effort for the development and dissemination of fair

housing media products that may appropriately be used on a nationwide

basis, including:

(i) Public service announcements, both audio and video;

(ii) Television, radio and print advertisements;

(iii) Posters; and

(iv) Pamphlets and brochures.

(2) National Fair Housing Month. Applicants must separately

indicate if they are applying for funding of activities related to the

annual National Fair Housing Month. Fair Housing Month activities must

be directed toward all protected class members.

(3) National program applications, including those for Fair Housing

Month funding, will receive a preference of up to ten additional points

if they:

(i) Demonstrate cooperation with real estate industry organizations

(up to five points); and/or

(ii) Provide for the dissemination of educational information and

technical assistance to support compliance with the housing

adaptability and accessibility guidelines contained in the Fair Housing

Amendments Act of 1988 (up to five points).

(C) Regional, local, and community-based programs.

(1) Activities eligible to be funded as regional, local, or

community-based programs include any of the activities, to be

implemented on a regional, local or community-based level, listed in

paragraphs I.(c)(2)(ii)(A) and I.(c)(2)(ii)(B)(1), above, of this NOFA.

Community-based programs include school, church and community

presentations, conferences or other educational activities.

(2) For the purposes of this NOFA, activities that are ``local'' in

scope are activities that are limited to a single unit of general local

government, meaning a city, town, township, county, parish, village, or

other general purpose political subdivision of a State. Activities that

are ``regional'' in scope are activities that cover adjoining States or

two or more units of general local government within a state.

Activities that are ``community-based'' in scope are those which are

primarily focused on a particular geographic area within a unit of

general local government.

(3) Every regional, local, or community-based program application

must include as one of its activities a procedure for referring persons

with Fair Housing complaints to State or local agencies, private

attorneys, or HUD and the Department of Justice for further enforcement

processing.

(4) Projects for community-based activities proposed by community-

based organizations will receive a preference of five additional

points. For the purposes of this NOFA, a community-based organization

is an organization whose members primarily come from a particular

geographic area within a unit of general local government.

(iii) Additional requirements. The following requirements are

applicable to all applications under the Education and Outreach

Initiative:

(A) All projects must address or have relevance to housing

discrimination based on race, color, religion, sex, handicap, familial

status or national origin.

(B) Projects may range in length from six to eighteen months in

duration.

(C) Projects that appear to be aimed solely or primarily at

research or data-gathering will not be approved. Data-gathering

activities will require OMB approval under the Paperwork Reduction Act

before commencement of the activity.

(3) Private Enforcement Initiative

(i) Eligible applicants. Organizations that are eligible to receive

FY 1994 funding assistance under the Private Enforcement Initiative

are:

(A) Qualified fair housing enforcement organizations.

(B) Fair housing enforcement organizations with at least 1 year of

experience in complaint intake, complaint investigation, testing for

fair housing violations and enforcement of meritorious claims.

(ii) Eligible activities. Applications are solicited for one- and

two-year project proposals as described in 24 CFR 125.403 and in this

NOFA. Applications may designate up to 10% of requested funds to

promote awareness of the services provided by the project, but such

promotion must be necessary for the successful implementation of the

project. Project applications may involve:

(A) Building the capacity to investigate, through testing and other

investigative methods, housing discrimination complaints based upon

mental and/or physical disabilities;

(C) Discovering and providing remedies for discrimination in the

public and private real estate markets and real estate-related

transactions, including, but not limited to, the making or purchasing

of loans, the provision of other financial assistance for sales and

rentals of housing, including insurance redlining and appraisal

practices, and housing advertising;

(D) Conducting investigations of systemic housing discrimination

for further enforcement processing by State or local agencies, or for

referral to private attorneys or to HUD and the Department of Justice;

(E) Professionally conducting testing or other investigative

support for administrative and judicial enforcement;

(F) Linking fair housing organizations regionally in enforcement

activities designed to combat broader housing market discriminatory

practices;

(G) Establishing effective means of meeting legal expenses in

support of litigation of fair housing cases;

(H) Testing and other investigative activities, including building

the capacity for housing investigative activities in unserved or

underserved areas;

(I) Carrying out special projects, including the development of

prototypes to respond to new or sophisticated forms of discrimination

against persons protected under title VIII, such as in the areas of

independent living and architectural barriers;

(J) Providing funds for the costs and expenses of litigation,

including expert witness fees.

(iii) Additional requirements.

(A) Testers in testing activities funded with Private Enforcement

Initiative funds must not have prior felony convictions or convictions

of crimes involving fraud or perjury, and they must receive training or

be experienced in testing procedures and techniques.

(B) One-year projects may be for up to eighteen months in duration.

Two-year projects must be twenty-four months in duration, and funding

for the second year of a project is subject to a performance review of

the first year's activities and available annual appropriations.

(C) Projects that appear to be aimed solely or primarily at

research or data-gathering unrelated to existing or planned fair

housing enforcement programs will not be approved. Data-gathering

activities will require OMB approval under the Paperwork Reduction Act

before commencement of the activity.

(D) In accordance with 24 CFR 125.404, no recipient of assistance

under the Private Enforcement Initiative may use any funds provided by

the Department for the payment of expenses in connection with

litigation against the United States.

(E) Recipients of funds under the Private Enforcement Initiative

shall be required to record, in a case tracking log (or Fair Housing

Enforcement Log) to be supplied by HUD, information appropriate to the

funded project relating to the number of complaints of discrimination

received; the basis of these complaints; the type and number of tests

utilized in the investigation of each allegation; the time for case

processing, including administrative or judicial proceedings; the cost

of testing activities and case processing; and case outcome or relief

provided. The recipient must agree to make this log available to HUD.

(4) Fair Housing Organizations (FHO) Initiative.

(i) Purpose: Continued Development of Existing Organizations.

(A) Eligible applicants. Eligible applicants for funding under this

purpose of the FHO Initiative are:

(1) Qualified fair housing enforcement organizations;

(2) Other private nonprofit fair housing enforcement organizations;

and

(3) Nonprofit groups organizing to build their capacity to provide

fair housing enforcement.

(B) Eligible activities. Eligible activities for funding under this

purpose of the FHO Initiative are any activities listed as eligible

under the Private Enforcement Initiative in section I.(c)(3)(ii) of

this NOFA and carried out as one-year projects.

(C) Additional requirements. The following requirements apply to

activities funded under the Continued Development of Existing

Organizations purpose of the FHO Initiative:

(1) Operating budget limitation. Funding under this purpose of the

FHO Initiative may not be used to provide more than 50 percent of the

operating budget of a recipient organization for any one year. For

purposes of the limitation in this paragraph, operating budget means

the applicant's total planned budget expenditures from all sources,

including the value of in-kind and monetary contributions, in the year

for which funding is sought.

(2) Term of contract. One-year projects may be for up to eighteen

months in duration.

(ii) Purpose: Establishing New Organizations.

(A) Eligible applicants. Any applicants eligible under any of the

other FHIP Initiatives in this NOFA are eligible applicants for funding

under this purpose of the FHO Initiative.

(B) Eligible activities. Eligible for funding under this purpose of

the FHO Initiative are two-year projects that help establish, organize,

and build the capacity of fair housing enforcement organizations in the

targeted unserved and underserved areas identified in sections

I.(c)(4)(ii)(C), or other underserved areas identified by the applicant

in accordance with section I.(c)(4)(ii)(D), below, of this NOFA. The

Department has considered a number a factors to identify the targeted

areas eligible for funding under this NOFA, including, for example, the

amount of funds available; the lack of substantially equivalent state

or local agencies, or private enforcement groups; and the presence of

large concentrations of protected classes. In future NOFAs, the

Department will consider additional targeted areas for funding.

(C) Targeted areas.

(1) A preference of ten additional points will be given for

applications that propose to establish new fair housing enforcement

organizations in localities within any of the following unserved areas:

(i) New Hampshire;

(ii) New Mexico;

(iii) Puerto Rico; and

(iv) Wyoming.

(2) A preference of five additional points will be given for

applications that propose to establish new fair housing enforcement

organizations in localities within any of the following underserved

areas:

(i) Alabama;

(ii) Louisiana;

(iii) Mississippi;

(iv) Nebraska;

(v) Oregon; and

(vi) Utah.

(3) An applicant may seek funding to establish a new organization

in a locality not included in the list of target areas, above, but in

such a case, the applicant must submit sufficient evidence to establish

the proposed area as being currently underserved by fair housing

enforcement organizations and as containing large concentrations of

protected classes. An applicant may provide additional evidence of the

need to establish a fair housing organization in a locality by citing

data and studies that indicate the presence of housing discrimination

and/or segregation in the locality. An example of evidence that may be

used for this purpose is provided in (but is not limited to) the study,

American Apartheid: Segregation and the Making of the Underclass, by

Nancy A. Denton and Douglas S. Massey (Harvard University Press, 1993).

(D) Additional requirements. The following requirements apply to

activities funded under the Establishing New Organizations purpose of

the FHO Initiative:

(1) Term of contract. Two-year projects must be twenty-four months

in duration, and funding for the second year of a project is subject to

a performance review of the first year's activities and available

annual appropriations.

(iii) Additional Requirements. The following requirements apply to

all activities funded under the Fair Housing Organizations Initiative:

(A) Testers in testing activities funded with FHO Initiative funds

must not have prior felony convictions or convictions of crimes

involving fraud or perjury, and they must receive training or be

experienced in testing procedures and techniques.

(B) Projects that appear to be aimed solely or primarily at

research or data-gathering unrelated to existing or planned fair

housing enforcement programs will not be approved. Data-gathering

activities will require OMB approval under the Paperwork Reduction Act

before commencement of the activity.

(C) No recipient of assistance under the FHO Initiative may use any

funds provided by the Department for the payment of expenses in

connection with litigation against the United States.

(D) Recipients of funds under the FHO Initiative shall be required

to record, in a case tracking log (or Fair Housing Enforcement Log) to

be supplied by HUD, information appropriate to the funded project

relating to the number of complaints of discrimination received; the

basis of these complaints; the type and number of tests utilized in the

investigation of each allegation; the time for case processing,

including administrative or judicial proceedings; the cost of testing

activities and case processing; and case outcome or relief provided.

The recipient must agree to make this log available to HUD.

(d) Selection Criteria/Ranking Factors

(1) Selection Criteria for Ranking Applications for Assistance

In addition to the preference points indicated in section I.(c) for

particular activities, all projects proposed in applications will be

ranked on the basis of the following criteria for selection:

(i) The anticipated impact of the project proposed on the concerns

identified in the application. (25 points) In determining the

anticipated impact of the proposed project, HUD will consider the

degree to which a proposed project addresses problems and issues that

are significant fair housing problems and issues, as explained in the

application, or based upon other information available to HUD. (The

clarity and thoroughness of the project description can be considered

in this determination.) This criterion will be judged on the basis of

the applicant's submissions in response to paragraph III. (a)(1) of

this NOFA under the heading ``Checklist of Application Submission

Requirements.''

(ii) The extent to which the project will provide benefits in

support of fair housing after funded activities have been completed.

(25 points) In determining the extent to which the project will provide

benefits after funded activities have been completed, HUD will consider

the degree to which the project will be of continuing use in dealing

with housing discrimination after funded activities have been

completed. This criterion will be judged on the basis of the

applicant's submissions in response to paragraph III.(a)(6) and

III.(a)(7) of this NOFA under the heading ``Checklist of Application

Submission Requirements.''

(iii) The extent to which the project will provide the maximum

impact on the concerns identified in a cost-effective manner. (20

points) In determining the extent to which the project will provide the

maximum impact on the concerns identified in a cost effective manner,

HUD will consider the quality and reasonableness of the proposed

activities, timeline and budget for implementation and completion of

the project. HUD will consider as well the adequacy and clarity of

proposed procedures to be used by the agency for monitoring the

progress of the project and ensuring its timely completion. These

procedures may consist of a system for checking whether or not the

milestones established by the project's timeline are being met. The

applicant's capability in handling financial resources (e.g., adequate

financial control procedures, accounting procedures) will be taken into

account as part of the assessment. This may be evidenced by the

applicant's financial management of previous FHIP or other civil rights

project management, a certification from cognizant auditor, and other

documentation. This criterion will be judged on the basis of the

applicant's submissions in response to paragraphs III.(a)(2), and

III.(a)(5) of this NOFA under the heading ``Checklist of Application

Submission Requirements.''

(iv) The extent to which the applicant's professional and

organizational experience will further the achievement of project

goals. (20 points) In determining the extent to which the applicant's

professional and organizational experience will further the achievement

of the project's goals, HUD will consider the applicant's experience in

formulating and carrying out programs to prevent or eliminate

discriminatory practices, including the applicant's management of past

and current FHIP or other civil rights projects, the experience and

qualifications of existing personnel identified for key positions, or a

description of the qualifications of new staff that will be hired,

including subcontractors/consultants. For organizations submitting an

application under the Education and Outreach Initiative, HUD will

consider both fair housing experience and experience in implementing

education, outreach or public information programs. This criterion will

be judged on the basis of the applicant's submissions in response to

paragraph III.(a)(3) of this NOFA under the heading ``Checklist of

Application Submission Requirements.''

(v) The extent to which the project utilizes other public or

private resources that may be available. (10 points). Both monetary and

in-kind resources identified in the application are eligible for

determining the extent to which other public or private resources are

available. The resources that will be considered must be targeted

specifically for the proposed project, and must be over and above the

resources available to the applicant as a part of its usual, non-

project operations for such expenses as salaries, equipment, supplies,

and rent. This criterion will be judged on the basis of the applicant's

submissions in response to paragraph III.(a)(4) of this NOFA under the

heading ``Checklist of Application Submission Requirements.''

(2) Selection Process

Each application for funding will be evaluated competitively, and

awarded points based on the Selection Criteria for Ranking Applications

for Assistance identified in section I.(d)(1) of this NOFA. The final

decision rests with the Assistant Secretary or designee. After eligible

applications are evaluated against the factors for award and assigned a

score, they will be organized by rank order. The rank ordering will be

done separately for: Each Initiative; each program component (national,

National Fair Housing Month, regional/local, and community-based) of

the Education and Outreach Initiative; each purpose (continued

development of existing organizations, and establishing new

organizations) under the Fair Housing Organizations Initiative, or

funding cycle (one-year and two-year projects) under the Private

Enforcement Initiative. Awards for each Initiative will be funded in

rank order until all available funds have been obligated, or until

there are no acceptable applications.

(3) Cost Factors

The Department expects to fund multiple applications as a result of

this NOFA. At some point, however, two or more complete and eligible

applications, after evaluation against the Selection Criteria, may be

considered equal in technical merit. At that point, the project's cost

will become the deciding factor. Furthermore, an applicant's proposal

will not be funded when costs are determined to be unrealistically low

or unreasonably high.

(e) Applicant Notification and Award Procedures

(1) Notification

No information will be available to applicants during the period of

HUD evaluation, except for notification in writing to those applicants

that are determined to be ineligible or that have technical

deficiencies in their applications that may be corrected. Selectees

will be announced by HUD upon completion of the evaluation process,

subject to final negotiations and award.

(2) Negotiations

After HUD has ranked the applications and made an initial

determination of applicants whose scores are within the funding range

(but before the actual award), HUD may require that applicants in this

group participate in negotiations to determine the specific terms of

the cooperative or grant agreement. In cases where it is not possible

to conclude the necessary negotiations successfully, awards will not be

made.

If an award is not made to an applicant whose application is in the

initial funding threshold because of an inability to complete

successful negotiations, and if funds are available to fund any

applications that may have fallen outside the initial funding

threshold, HUD will select the next highest ranking applicant and

proceed as described in the preceding paragraph.

(3) Funding Instrument

HUD expects to award a cost reimbursable or fixed-price cooperative

or grant agreement to each successful applicant. HUD reserves the

right, however, to use the form of assistance agreement determined to

be most appropriate after negotiation with the applicant.

(4) Reduction of Requested Grant Amounts and Special Conditions

HUD may approve an application for an amount lower than the amount

requested, fund only portions of an application, withhold funds after

approval, and/or require the grantee to comply with special conditions

added to the grant agreement, in accordance with 24 CFR 85.12, the

requirements of this NOFA, or where:

(i) HUD determines the amount requested for one or more eligible

activities is unreasonable or unnecessary;

(ii) the application does not otherwise meet applicable cost

limitations established for the program;

(iii) The applicant has requested an ineligible activity;

(iv) Insufficient amounts remain in that funding round to fund the

full amount requested in the application and HUD determines that

partial funding is a viable option;

(v) The applicant has demonstrated an inability to manage HUD

grants, particularly Fair Housing Initiatives Program grants; or

(vi) For any other reason where good cause exists.

(5) Performance Sanctions

A recipient failing to comply with the procedures set forth in its

grant agreement will be liable for such sanctions as may be authorized

by law, including repayment of improperly used funds, termination of

further participation in the FHIP, reduction or limitation of further

funding for administrative enforcement activities, and denial of

further participation in programs of the Department or of any Federal

agency.

II. Application Process

An application kit is required as the formal submission to apply

for funding. The kit includes information on the Management Work Plan

and Budget for activities proposed by the applicant. An application may

be obtained by writing the Fair Housing Information Clearinghouse, Post

Office Box 6091, Rockville, MD 20850, or by calling the toll free

number 1-800-343-3442. To ensure a prompt response, it is suggested

that requests for application kits be made by telephone.

Completed applications are to be submitted to Aztec Jacobs, Funded

Programs Division, Office of Fair Housing and Equal Opportunity,

Department of Housing and Urban Development, Room 5234, 451 Seventh

Street, SW., Washington, DC 20410.

The application due date will be specified in the application kit.

However, applicants will be given at least 60 days from today's date,

until July 15, 1994, to submit their applications. Applications will be

accepted if they are received on or before the application due date, or

are received within 7 days after the application due date, but with a

U.S. postmark or receipt from a private commercial delivery service

(such as, Federal Express or DHL) that is dated on or before the

application due date.

The application deadline is firm as to date. In the interest of

fairness to all competing applicants, the Department will treat as

ineligible for consideration any application that is received after the

deadline. Applicants should take this practice into account and make

early submission of their materials to avoid any risk of loss of

eligibility brought about by unanticipated delays or other delivery-

related problems. A transmission by facsimile machine (``FAX'') will

not constitute delivery.

An applicant may apply for funding for more than one project or

activity, but a separate application must be submitted for each of the

following categories of funding:

(1) Administrative Enforcement Initiative activities;

(2) National programs under the Education and Outreach Initiative;

(3) National Fair Housing Month activities under the Education and

Outreach Initiative;

(4) Regional or local activities under the Education and Outreach

Initiative;

(5) Community-based activities under the Education and Outreach

Initiative;

(6) One-year projects under the Private Enforcement Initiative;

(7) Two-year projects under the Private Enforcement Initiative;

(8) Continued Development of Existing Organizations activities

under the Fair Housing Organizations Initiative; and

(9) Establishing New Organizations activities under the Fair

Housing Organizations Initiative.

Although a separate application is required for each funding

category, an application may propose more than one type of eligible

activity under each category. For example, both production and

distribution of a public service message may be proposed in a single

application for a national program under the Education and Outreach

Initiative.

Applicants must submit all information required in the application

kit and must include sufficient information to establish that the

application meets the selection criteria set forth in section I.(d),

above, of this NOFA.

III. Checklist of Application Submission Requirements

(a) General requirements. The application kit will contain a

checklist of application submission requirements to complete the

application process. Each application for FHIP funding must contain the

following items:

(1) A description of the activities proposed for funding, and the

practice or practices at the community, local, regional or national

level that have adversely affected the achievement of the goal of fair

housing, and that will be addressed by the proposed activities. This

description must include a discussion and analysis of the housing

practices identified, including available information and studies

relating to discriminatory housing practices and their historical

background, and relevant demographic data indicating the nature and

extent of the impact of the described practices on persons seeking

dwellings or services related to the sale, rental or financing of

dwellings, in the general location where the applicant proposes to

undertake activities;

(2) A budget--which must include $3,000 for one-year projects, and

$6,000 for two-year projects--to be used for travel costs for training

sponsored by the Department--and a timeline for the implementation of

the proposed activities, consisting of a description of the specific

activities to be conducted with FHIP funds, the geographic areas to be

served by the activities, any reports to be produced in connection with

the activities, the cost of each proposed activity and a schedule for

the implementation and completion of the activities;

(3) A description of the applicant's experience in formulating or

carrying out programs to prevent or eliminate discriminatory housing

practices or in implementing other civil rights programs, the

experience and qualifications of existing personnel identified for key

positions, or a description of the qualifications of new staff to be

hired, including subcontractors/consultants;

(4) A statement indicating the need for FHIP funding in support of

the proposed project and an estimate of other public or private

resources that may be available to assist the proposed activities;

(5) A description of the procedures to be used by the applicant for

monitoring the progress of the proposed activities and the applicant's

planned or implemented financial control procedures that will

demonstrate the applicant's capability in managing financial resources;

(6) A description of the fair housing benefits that successful

completion of the project will produce, and the indicators by which

these benefits are to be measured, and;

(7) A description of the degree to which the project will be of

continuing use in dealing with housing discrimination after funded

activities have been completed;

(8) HUD Form 2880, Applicant Disclosures;

(9) A listing of any current or pending grants or contracts, or

other business or financial relationships or agreements, to provide

training, education, and/or self-testing services between the applicant

and any entity or organization of entities involved in the sale,

rental, advertising or provision of brokerage or lending services for

housing. The listing must include the name and address of the entity or

organization; a brief description of the services being performed or

for which negotiations are pending; the dates for performance of the

services; and the amount of the contract or grant. This listing must be

updated during the grant negotiation period, at the end of the grant

term, and for grants that will run for more than twelve months, at the

end of the twelfth month.

(10) The applicant must submit a certification and disclosure in

accordance with the requirements of section 319 of the Department of

the Interior Appropriations Act (Pub. L. 101-121, approved October 23,

1989), as implemented in HUD's interim final rule at 24 CFR part 87,

published in the Federal Register on February 26, 1990 (55 FR 6736).

This statute generally prohibits recipients and subrecipients of

Federal contracts, grants, cooperative agreements and loans from using

appropriated funds for lobbying the Executive or Legislative Branches

of the Federal Government in connection with a specific contract,

grant, or loan. If warranted, the applicant should include the

Disclosure of Lobbying Activities form (SF-LLL).

(11) Prior to award execution, successful applicants must submit a

certification that they will comply with:

(i) Section 3 of the Housing and Community Development Act of 1968,

Employment Opportunities for Lower Income Persons in Connection with

Assisted Projects (12 U.S.C. 1701u), and with implementing regulations

at 24 CFR part 135.

(ii) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-

2000d-4) (Nondiscrimination in Federally Assisted Programs) and

implementing regulations issued at 24 CFR part 1; and

(iii) The prohibitions against discrimination on the basis of age

under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and

implementing regulations at 24 CFR part 146, and the prohibitions

against discrimination against persons with disabilities under section

504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing

regulations at 24 CFR part 8.

(b) Additional Education and Outreach Initiative requirements. In

addition to meeting the application requirements contained in section

III.(a), above, all proposals under the Education and Outreach

Initiative must include the following:

(1) A description of how the activities or the final products of

the projects can be used by other agencies and organizations and what

modifications, if any, would be necessary for that purpose.

(2) Coordination of activities. Each non-governmental applicant for

funding under the Education and Outreach Initiative that is located

within the jurisdiction of a State or local enforcement agency or

agencies administering a fair housing law that has been certified by

the Department under 24 CFR part 115 as being a substantially

equivalent fair housing law must provide, with its application,

documentation that it has consulted with the agency or agencies to

coordinate activities to be funded under the Education and Outreach

Initiative. This coordination will ensure that the activities of one

group will minimize duplication and fragmentation of activities of the

other. Failure to submit the documentation required by this section

will be treated as a technical deficiency in accordance with section

IV., below, of this NOFA.

(3) Every regional/local/community-based program application must

include as one of its activities a procedure for referring persons with

Fair Housing complaints to State or local agencies, private attorneys,

or HUD and the Department of Justice for further enforcement

processing.

(c) Additional Private Enforcement Initiative requirements. In

addition to meeting the application requirements contained in section

III.(a), above, all proposals for testing under the Private Enforcement

Initiative must include:

(1) Documentation that the applicant has at least one year of

experience in carrying out a program to prevent or eliminate

discriminatory housing practices, and has sufficient knowledge of fair

housing testing to enable the applicant to implement a testing program

successfully;

(2) A certification providing that the applicant will not solicit

funds from or seek to provide fair housing educational or other

services or products for compensation, directly or indirectly, to any

person or organization which has been the subject of testing by the

applicant during a 12 month period following the test.

(d) Additional Fair Housing Organizations Initiative requirements.

In addition to meeting the application requirements contained in

section III.(a), above, the following application submission

requirements apply to proposals under the Fair Housing Organizations

Initiative:

(1) Each applicant under the continued development of existing

organizations purpose of the Fair Housing Organizations Initiative must

submit an operating budget that describes the applicant's total planned

expenditures from all sources, including the value of in-kind and

monetary contributions, in the year for which funding is sought. This

operating budget will be used for the purposes of determining the

extent of the 50% funding limitation on operating expenses.

(2) All proposals for testing under the Fair Housing Organizations

Initiative must certify that the applicant will not solicit funds from

or seek to provide fair housing educational or other services or

products for compensation, directly or indirectly, to any person or

organization which has been the subject of testing by the applicant

during a 12 month period following the test.

IV. Corrections to Deficient Applications

Applicants will not be disqualified from being considered for

funding because of technical deficiencies in their application

submission, e.g., an omission of information such as regulatory/program

certifications, or incomplete signatory requirements for application

submission.

HUD will notify an applicant in writing of any technical

deficiencies in the application. The applicant must submit corrections

within 14 calendar days from the date of HUD's letter notifying the

applicant of any technical deficiency.

The 14-day correction period pertains only to non-substantive,

technical deficiencies or errors. Technical deficiencies relate to

items that:

1. Are not necessary for HUD review under selection criteria/

ranking factors; and

2. Would not improve the substantive quality of the proposal.

V. Other Matters

Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the

disclosure requirements and prohibitions of section 319 of the

Department of Interior and Related Agencies Appropriations Act for

Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the

implementing regulations at 24 CFR part 87. These authorities prohibit

recipients of Federal contracts, grants, or loans from using

appropriated funds for lobbying the Executive or Legislative branches

of the Federal government in connection with a specific contract,

grant, or loan. The prohibition also covers the awarding of contracts,

grants, cooperative agreements, or loans unless the recipient has made

an acceptable certification regarding lobbying. Under 24 CFR part 87,

applicants, recipients and sub-recipients of assistance exceeding

$100,000 must certify that no Federal funds have been or will be spent

on lobbying activities in connection with the assistance.

Environmental Impact

A Finding of No Significant Impact with respect to the environment

has been made in accordance with the Department's regulations at 24 CFR

part 50 which implement section 102(2)(C) of the National Environmental

Policy Act of 1969 (42 U.S.C. 4332). The Finding of No Significant

Impact is available for public inspection between 7:30 a.m. and 5:30

p.m. weekdays at the Office of the Rules Docket Clerk, room 10276,

Department of Housing and Urban Development, 451 Seventh Street, SW.,

Washington, DC 20410.

Executive Order 12606, The Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that the policies announced in

this Notice would not have a significant impact on the formation,

maintenance, and general well-being of families except indirectly to

the extent of the social and other benefits expected from this program

of assistance.

Executive Order 12612, Federalism

The General Counsel has determined, as the Designated Official for

HUD under section 6(a) of Executive Order 12612, Federalism, that the

policies contained in this Notice will not have federalism implications

and, thus, are not subject to review under the Order. The promotion of

fair housing policies is a recognized goal of general benefit without

direct implications on the relationship between the national government

and the states or on the distribution of power and responsibilities

among various levels of government.

Drug-Free Workplace Certification

The Drug-Free Workplace Act of 1988 requires grantees of Federal

agencies to certify that they will provide drug-free workplaces. Thus,

each applicant must certify that it will comply with drug-free

workplace requirements in accordance with 24 CFR part 24, subpart F.

Accountability in the Provision of HUD Assistance

HUD has promulgated a final rule to implement section 102 of the

Department of Housing and Urban Development Reform Act of 1989 (HUD

Reform Act). The final rule is codified at 24 CFR part 12. Section 102

contains 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 at

57 FR 1942 additional information that gave the public (including

applicants for, and recipients of, HUD assistance) further information

on the implementation of section 102. The documentation, public access,

and disclosure requirements of section 102 are applicable to assistance

awarded under this NOFA as follows:

Documentation and Public Access Requirements

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 five-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 at 24 CFR part 15. In addition, HUD will

include the recipients of assistance pursuant to this NOFA in its

quarterly Federal Register notice of all recipients of HUD assistance

awarded on a competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and

the notice published in the Federal Register on January 16, 1992 (57 FR

1942), for further information on these documentation and public access

requirements.)

Disclosures

HUD will make available to the public for five years all applicant

disclosure reports (HUD Form 2880) submitted in connection with this

NOFA. Update reports (also Form 2880) will be made available along with

the applicant disclosure reports, but in no case for a period less than

three 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 at 24 CFR part 15. (See

24 CFR subpart C, and the notice published in the Federal Register on

January 16, 1992 (57 FR 1942), for further information on these

disclosure requirements.)

Section 103 HUD Reform Act

HUD's regulation implementing section 103 of the Department of

Housing and Urban Development Reform Act of 1989 was published May 13,

1991 (56 FR 22088) and became effective on June 12, 1991. That

regulation, codified as 24 CFR part 4, applies to the funding

competition announced today. The requirements of the rule continue to

apply until the announcement of the selection of successful applicants.

HUD employees involved in the review of applications and in the making

of funding decisions are limited by part 4 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 who have questions should contact the HUD Office of

Ethics (202) 708-3815 (TDD/Voice). (This is not a toll-free number.)

The Office of Ethics can provide information of a general nature to HUD

employees, as well. However, a HUD employee who has specific program

questions, such as whether particular subject matter can be discussed

with persons outside the Department, should contact his or her Regional

or Field Office Counsel, or Headquarters counsel for the program to

which the question pertains.

Section 112 HUD Reform Act

Section 13 of the Department of Housing and Urban Development Act

contains two provisions dealing with efforts to influence HUD's

decisions with respect to financial assistance. The first imposes

disclosure requirements on those who are typically involved in these

efforts--those who pay others to influence the award of assistance or

the taking of a management action by the Department and those who are

paid to provide the influence. The second restricts the payment of fees

to those who are paid to influence the award of HUD assistance, if the

fees are tied to the number of housing units received or are based on

the amount of assistance received, or if they are contingent upon the

receipt of assistance.

Section 13 was implemented by final rule published in the Federal

Register on May 17, 1991 (56 FR 22912) as 24 CFR part 86. If readers

are involved in any efforts to influence the Department in these ways,

they are urged to read the final rule, particularly the examples

contained in appendix A of the rule.

Authority: Section 561 of the Housing and Community Development

Act of 1987 (42 U.S.C. 3616 note); Title VIII, Civil Rights Act of

1968, as amended (42 U.S.C. 3601-3619); Sec. 7(d), Department of

Housing and Urban Development Act (42 U.S.C. 3535(d)).

Dated: May 6, 1994.

Roberta Achtenberg,

Assistant Secretary for Fair Housing and Equal Opportunity.

[FR Doc. 94-11762 Filed 5-13-94; 8:45 am]

BILLING CODE 4210-28-P