Notice of Funding Availability (NOFA) for FY 1993 and 1994; Invitation for Applications: Public Housing DevelopmentMROP Activities

SUMMARY: This NOFA announces the availability of FY 1993 and 1994

funding, and invites eligible public housing agencies (PHAs) to submit

development applications for MROP activities. Because the number of

applications for FY 1993 funding which received perfect scores was in

excess of available funding (funding of all applications receiving a

perfect score of 90 would only have permitted funding at 40 percent of

the amount requested), this NOFA withdraws the FY 1993 NOFA published

on September 13, 1993 (58 FR 47940).

The FY 1993 funding is being combined and re-announced with the FY

1994 funding under this Public Housing Development--MROP Activities

NOFA (MROP Activities NOFA).

All unfunded MROP activities applications submitted in response to

the FY 1993 NOFA will be returned to the PHAs for resubmission in

response to this combined FY 1993 and FY 1994 NOFA. At the option of

the PHA, an application may be amended and resubmitted, or a new MROP

activities application may be submitted. No other types of applications

will be accepted under this NOFA.

A separate NOFA applicable to the public housing development

program will be published in the Federal Register.

This MROP Activities NOFA provides instructions regarding the

preparation and processing of applications.

This NOFA is NOT applicable to the Indian housing program.

DATES: Applications are due at the HUD Field Office on or before 4

p.m., local time, on July 5, 1994. Section III of this NOFA provides

further information on application submission. The PHA must clearly

write ``Public Housing Development--MROP Activities Application'' on

the outside of the envelope and obtain a return receipt indicating the

date and time of delivery.

The application deadline is firm as to date and hour. In the

interest of fairness to all applicants, HUD will not consider any

application that is received after the deadline. PHAs should take this

into account and submit applications as early as possible to avoid risk

of application ineligibility brought about by unanticipated delays or

delivery-related problems. In particular, PHAs intending to mail

applications must provide sufficient time to permit delivery on or

before the deadline. Acceptance by a Post Office or private mailer does

not constitute delivery. Facsimile (Fax), COD, and postage due

applications will NOT be accepted.

FOR FURTHER INFORMATION CONTACT: Janice Rattley, Office of

Construction, Rehabilitation and Maintenance, Department of Housing and

Urban Development, 451 Seventh Street SW., room 4136, Washington, DC

20410. Telephone (202) 708-1800 (voice) or (202) 708-4594 (TDD). (These

are not toll-free numbers.)

SUPPLEMENTARY INFORMATION: Paperwork Reduction Act Statement: The

information collection requirements contained in this NOFA have been

approved by the OMB under the Paperwork Reduction Act of 1980 and have

been assigned OMB control numbers 2577-0033, 2577-0036, and 2577-0044.

I. Introduction

A. Authority

Section 5 of the United States Housing Act of 1937 (42 U.S.C.

1437c); and section 7(d) of the Department of Housing and Urban

Development Act (42 U.S.C. 3535(d)). Public housing development

regulations are published at 24 CFR part 941. The Catalog of Federal

Domestic Assistance Program number is 14.850.

B. Fund Availability

In accordance with the FY 1994 HUD Appropriations Act (Pub. L. 103-

124, approved October 28, 1993), the Department is making available,

through this NOFA, up to $119.2 million of the FY 1994 public housing

development funds for MROP activities consistent with section 111 of

the Housing and Community Development (HCD) Act of 1992 (Pub. L. 102-

550, approved October 28, 1992). Because some of the appropriated funds

are to be derived from recapture of prior year obligations, a lesser

amount may be available under this NOFA, unless actual recaptures

during the current Fiscal Year return the amount to the appropriated

level.

In addition, the $60 million of FY 1993 public housing development

funds provided in the FY 1993 HUD Appropriations Act (Pub. L. 102-389,

approved October 6, 1992) for MROP activities consistent with section

111 of the HCD Act of 1992, is also being made available.\1\

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\1\As noted in the September 13, 1993 FY 93 MROP Activities

NOFA, the FY 1993 funds are being made available for MROP activities

in accordance with the Joint Statement of the Managers in

Explanation of the Conference Agreement (see H.R. Rep. 103-165, pg.

31) on the Supplemental Appropriations Act of 1993 (Pub. L. 103-50,

approved July 2, 1993).

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Consistent with section 624 of the HCD Act of 1992, HUD has

established a set-aside of five percent of the total of up to $179.2

million (which provides up to $8,950,000 depending on recaptures) for

MROP Activities for housing designated for disabled families, which

will be the subject of a separate NOFA to be published by the

Department.

C. Fund Assignments

Funding for MROP activities is provided for the reconstruction of

existing public housing, the extent of which is not predictable by

formula. Therefore, the funds provided under this NOFA will not be

fair-shared. This determination was made on the basis of the exclusion

of funds as incapable of geographic allocation pursuant to 24 CFR

791.403(b) published in the Federal Register on August 4, 1993 (58 FR

41426).

Field Offices will ascertain threshold-approvability and, after

Joint Review, send the threshold-approvable applications to a review

selection panel(s) comprised of representatives from various Field

Offices (hereafter referred to as ``panel(s)'').

The panel(s) shall rate and rank the threshold-approvable

applications based on the criteria in Section IV.E. of this NOFA, and

provide Headquarters with a list, in rank order, reflecting the

ratings. The Department, in its discretion, may choose to select or

partially fund a lower-rated application in order to increase national

geographic diversity, and/or to increase the diversity of development

types (high-rise buildings of five or more stories and those which

include only low-rise buildings).

D. Eligibility

Applications for public housing development--MROP activities must

be submitted by PHAs eligible for development funding which have the

required local cooperation and legal authority to develop, own and

operate public housing projects.

PHAs eligible under the Comprehensive Improvement Assistance

Program (CIAP) (CIAP-eligible PHAs) and under the Comprehensive Grant

Program (CGP) (CGP-eligible PHAs) may apply for these funds. CIAP and

CGP are hereinafter referred to as ``modernization.'' Applications will

be determined eligible using the modernization procedures outlined in

Public Housing Modernization rule 24 CFR part 968, as amended by the

interim rule for Public and Indian Housing, Revised Comprehensive

Improvement Assistance Program, published on March 15, 1993 (58 FR

13916), (as modified by this NOFA).

Applications must meet the threshold approvability requirements in

Section IV.B of this NOFA, including the following requirements which

must be addressed in the PHA's Narrative Statement accompanying its

application, and will be rated by a panel(s) on the Technical Review

Factors listed in Section IV.E. of this NOFA.

1. A project proposed for MROP activities must have long-term

viability after reconstruction and the annual contributions contract

(ACC) for the project must remain in effect for 40 years. In

determining viability, the PHA must have a comprehensive plan (funded

from other sources such as CIAP, CGP, donations, etc.) for the project

for which the funds for MROP activities are being requested. The

comprehensive plan for the project may be part of the PHA's

comprehensive plan for modernization. The comprehensive plan must

demonstrate a strategy which will assure that the entire development

will be viable for a minimum period of 20 years. This strategy may

include, but not be limited to, an estimate of the required amount

needed for rehabilitation of the remaining portion of the development

to the extent any additional rehabilitation is required; sources of

funding for the additional work; any proposed demolition/disposition

that may be planned; and written evidence of local government and

resident support for the strategy.

2. A proposed MROP activities project must be a rental (not

homeownership) project.

3. An ``obsolete project or building'' is one that has design or

marketability problems that have resulted in:

a. Current vacancies of more than 25 percent of the units available

for occupancy; or

b. (1) Estimated costs of the project (including any costs for

lead-based paint abatement activities) that exceed 70 percent of the

total current development cost limits for new construction of similar

units in the area; and

(2) The project or building has:

(a) An occupancy density or a building height that is significantly

in excess of that which prevails in the neighborhood; or

(b) A bedroom configuration that could be altered to better serve

the needs of families seeking occupancy to public housing; or

(c) Significant security problems in and around the project; or

(d) Significant physical deterioration or inefficient energy and

utility systems.

4. The deficiencies must be determined correctable under the CGP or

the CIAP procedures (see 24 CFR part 968 and related issuances), to

ensure long-term viability (a useful life with full occupancy) of more

than 20 years after completion of reconstruction; the ACC for the

project must remain in effect for 40 years.

5. Existing projects which consist of more than one building may

have MROP activities funding in any single year limited to one or more

(less than all) of a project's buildings. Where separate portions of an

existing project receive MROP funding in different fiscal years, each

portion must be given a separate MROP project number and the funds

reserved must be sufficient to complete all of the reconstruction

needed to make the portion viable; in such cases, the funds for each

MROP project must be kept separate and may not be commingled.

6. A combination of MROP activities and modernization funds may be

used within a project, but may not be used within the same units (or

buildings, as applicable). For example, if an existing project consists

of low-rise, row, and elevator buildings, an MROP activities project

could be approved to include all or some of the row units, with the

balance of units included in a modernization project. MROP funds may,

however, be used in conjunction with Urban Revitalization Demonstration

funds (HOPE VI) without limitation.

7. Management improvements are an eligible cost under MROP

activities to the extent that such improvements are necessary for the

viability of the project (i.e., to maintain the physical improvements

resulting from the proposed redesign, reconstruction, or redevelopment

MROP activities).

E. Restrictions

1. If partial demolition/disposition is required:

a. A demolition/disposition application must have been approved

before the MROP activities application may be approved; or

b. The application must have been submitted along with evidence of

approval by the unit of general local government in which the project

is located. This approval may be obtained from the Chief Executive

Officer.

2. Conversion of units (by combining small units to make larger

units or vice versa) must either be approved before an MROP activities

application involving conversion may be approved, or an application for

said conversion must have been submitted, and the cost of any

conversion must be considered in the MROP activities application.

3. Funding provided for MROP activities at a project may not be

used for total demolition/disposition of that project, but may be used

for partial demolition/disposition if required to meet long-term

viability; however, 75 percent of the units in the project or portion

of the project which comprises the MROP application must be

reconstructed.

II. Application Process Overview

A. PHA Application

A PHA applying for development funds for MROP activities shall

prepare a CIAP application, as modified by this NOFA. The initial

review process shall follow the CIAP procedures; however, once

selected, the application shall be processed under public housing

development procedures.

B. Application Processing

The Field Office will screen each application for completeness and

will provide the PHA with a 14 calendar-day opportunity to furnish any

missing technical information or exhibits, or to correct technical

mistakes. Each application will then be subjected to a ``pass/fail''

threshold examination by the Field Office. Each passing application

will be rated as to the Technical Review Factors listed in Section

IV.E. of this NOFA by a panel(s).

C. Application Approval

Panels comprised of representatives from various Field Offices will

prepare rankings based on the panels' ratings and Headquarters will

select applications for approval to the extent funds are available.

D. Disclosure of Information

The Department of Housing and Urban Development Reform Act of 1989

(HUD Reform Act) prohibits advance disclosure of funding decisions.

(See 24 CFR part 4.) Civil penalties related to advance disclosure are

set out in 24 CFR part 30. Application approval/non-approval

notifications shall not occur until the Congressional notification

process is completed. (See Section VIII.F of this NOFA for more

detailed information.)

E. Records Retention

Applications and materials related to applications (e.g.,

application scoring sheets, and notifications of selection/non-

selection) will be retained in the appropriate Field Office for five

years, and be available for public inspection in accordance with 24 CFR

part 12. (See Section VIII.G of this NOFA for more detailed

information.)

III. Application Requirements

A. All Applicants

No more than one project (or portion of a project) may be proposed

for MROP activities per application, although more than one application

may be submitted by a PHA. Each application shall consist of an

original and two copies, and must include the following:

1. Cover letter

The cover letter must identify the project proposed for MROP

activities by its original project number (e.g., WY 22-2), and its

total number of units (and buildings, if applicable). If fewer than the

total number of units are being proposed, the cover letter shall

summarize the PHA's plans for the remaining units. If more than one

application is submitted, the cover letter must state the PHA's

priorities for funding. The PHA must include a statement of whether the

PHA will accept funding for the reconstruction of fewer units.

2. CIAP Application and Budget--Forms HUD 52822 and 52825

The application and budget forms must each be signed and dated and

include the information as specified in the forms. No more than one

original project number shall be included in each application

submission.

3. Narrative Statement

The narrative statement must address each of the technical review

factors under Section IV.E. of this NOFA, each of the eligibility

criteria under Section I.D. of this NOFA and each of the restriction

criteria under Section I.E. of this NOFA.

4. Demolition/Disposition or Conversion of Units

If, as part of the MROP activities, the PHA intends to demolish/

dispose (demo/dispo) of some of the units or to convert units (combine

small units to make larger ones, or vice versa), the PHA shall provide

the date the demo/dispo or conversion was approved by HUD or the date

the demo/dispo or conversion application was submitted. If the demo/

dispo application has not yet been approved, the application for MROP

activities that involves the demo/dispo of units must be accompanied by

evidence of approval by the unit of general local government in which

the project is located (it can be provided by the Chief Executive

Officer). Development funds for MROP activities may not be used for

total demo/dispo (see Section I.E.3. of this NOFA).

5. PHA Resolution In Support of the Application (Form HUD-52471)

Under this resolution, the PHA agrees to comply with all

requirements of 24 CFR part 941. These requirements include, among

others: nondiscrimination under the applicable civil rights laws; the

requirements imposed by the Uniform Relocation Assistance and Real

Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655);

the accessibility requirements of section 504 of the Rehabilitation Act

of 1973 (29 U.S.C. 794), and HUD's implementing regulations at 24 CFR

part 8; and section 3 of the Housing and Urban Development Act of 1968

(12 U.S.C. 1701u), and HUD's implementing regulations at 24 CFR part

135. By executing the PHA resolution, the PHA also certifies that it

will comply with the accessibility requirements of the Americans with

Disabilities Act of 1990 (42 U.S.C. 12131), and its implementing

regulation at 28 CFR part 35.

6. Local Governing Body Resolution (Form HUD-52472)

If front-end funds are requested, the PHA must submit a Local

Governing Body Resolution/ Transcript of Proceedings (Form HUD-52472).

7. Drug-Free Workplace

The PHA must submit the Certification for a Drug-Free Workplace

(Form HUD-50070) in accordance with 24 CFR 24.630.

8. Certification for Contracts, Grants, Loans and Cooperative

Agreements (Form HUD-50071)

In accordance with 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 regulations at 24 CFR part 87,

the PHA must certify that no federally appropriated funds have been

paid or will be paid, by or on behalf of the PHA for influencing or

attempting to influence an officer or employee of any agency, or a

member of Congress in connection with the awarding of any Federal

contract, the making of any Federal grant or loan, the entering into of

any cooperative agreement, and the extension, continuation, renewal,

amendment, or modifications of any Federal contract, grant, loan, or

cooperative agreement. (See also Section VIII.D of this NOFA.)

9. Form SF-LLL, Disclosure of Lobbying Activities

Also, in accordance with the Byrd Amendment and the regulations at

24 CFR part 87, the PHA must complete and submit Form SF-LLL if funds

other than federally appropriated funds have been paid or will be paid

by or on behalf of the PHA for influencing or attempting to influence

an officer or employee of any agency, or a member of Congress in

connection with the awarding of any Federal contract, the making of any

Federal grant or loan, the entering into of any cooperative agreement,

and the extension, continuation, renewal, amendment, or modifications

of any Federal contract, grant, loan, or cooperative agreement. (See

also Section VIII.D of this NOFA.)

10. Disclosure of Government Assistance and Identity of Interested

Parties (Form HUD 2880)

The PHA must submit the Applicant/Recipient Disclosure/Update

Report (Form HUD-2880) in accordance with the requirements of 24 CFR

part 12, subpart C.

IV. Field Office Processing of Applications

A. Initial Screening

1. Immediately after the deadline for receipt of applications, the

Field Office will screen each application to determine whether all

information and exhibits have been submitted; no qualitative evaluation

will be made at this time.

a. If an application lacks any technical information or exhibit, or

contains a technical mistake, the PHA will be advised in writing and

will have 14 calendar days from the date of the issuance of HUD's

notification to deliver the missing or corrected information or

documentation to the Field Office. For example, the PHA Narrative

Statement must address each of the technical review factors under

Section IV.E., the eligibility criteria under Section I.D. and the

restriction criteria under Section I.E. of this NOFA.

b. Curable technical deficiencies relate only to items that would

not improve the substantive quality of the application, relative to the

ranking factors.

c. If Forms HUD 52822 (Application) or HUD 52825 (Budget) are

missing, the PHA's application will be considered substantively

incomplete, and therefore ineligible for further processing. However,

if other forms [for example, Form HUD 50070 (Drug Free Workplace

Certification), Form HUD 50071 (Certification for Contracts, Grants,

Loans and Cooperative Agreements), Form SF LLL (Disclosure of Lobbying

Activities), if applicable, or Form HUD 2880 (Application/ Recipient

Disclosure/Update Report)] are missing, or if there is a technical

mistake, such as no signature or the wrong signature on a submitted

form, the PHA will be given an opportunity to correct the deficiency.

2. The responsibility for submitting a complete application rests

with the PHA. Failure of the Field Office to identify and provide a

notice of deficiency to the PHA shall not relieve the PHA of the

consequences of submitting an incomplete application.

3. An application that does not meet all of the NOFA requirements

after the 14-day technical deficiency period will be removed from

processing and determined to be unapprovable. If the PHA fails to

correct deficiencies or fails to submit missing forms or

certifications, or any certification is incomplete or not executed by

the appropriate person(s), or the PHA Narrative Statement fails to

address each of the Section IV.E. technical review factors, and each of

the Section I.D. eligibility criteria and the Section I.E. restriction

criteria, the application will not be examined for threshold

approvability.

B. Application Threshold Approvability

After initial screening and upon expiration of the deficiency

``cure'' period, applications for which all the information,

certifications, and documentation required by the NOFA have been

received by HUD will be examined for threshold approvability.

Applications that fail one or more of the threshold criteria will be

removed from processing and determined to be unapprovable. Applications

which successfully pass the threshold review (threshold-approvable

applications) will, following Joint Review, be submitted by the Field

Office to a panel(s) which will rate applications, using the criteria

set out in Section IV.E. of this NOFA. All applications must meet the

following thresholds to be determined threshold-approvable:

1. The MROP activities application must meet the eligibility

criteria of Section I.D. and the restriction criteria of Section I.E.

2. The PHA may not have any litigation pending which would preclude

approval of the application. The PHA must have the required local

cooperation and be legally eligible to develop, own, and operate public

housing under the U.S. Housing Act of 1937 and the application must

have a properly executed and complete PHA Resolution (Form HUD 52471)

referring to the need for front-end funding, if requested, and a Local

Governing Body Resolution (HUD 52472) which approves the request for

front-end funds, if front-end funds are requested.

(Note: The PHA Resolution certifies to the PHA's intent to comply

with all requirements imposed by the Uniform Relocation Assistance

and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C.

4601-4655); the accessibility requirements of section 504 of the

Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's implementing

regulations at 24 CFR part 8; and section 3 of the Housing and Urban

Development Act of 1968 (12 U.S.C. 1701u), and HUD's implementing

regulations at 24 CFR part 135. By executing the PHA resolution, the

PHA also certifies that it will comply with the accessibility

requirements of the Americans with Disabilities Act of 1990 (42

U.S.C. 12131), and its implementing regulation at 28 CFR part 35.)

3. The Field Office must determine that the PHA has or will have

the capability (as defined by Section IV.E.(1)(c)) to complete the MROP

reconstruction activities and manage the resulting housing. The Field

Office shall determine capability based upon the PHA's overall

performance, which includes the PHA's total score under the Public

Housing Management Assessment Program (PHMAP) (see 24 CFR part 901),

and the PHA's most recent fiscal audit.

a. A PHA shall not be determined to lack administrative or

development capability simply because it has no recent experience in

developing or managing public/assisted housing.

b. No application shall be determined to be approvable if the PHA

has failed to return excess advances received during development or

modernization, or amounts determined by HUD to constitute excess

financing based on a HUD-approved Actual Development Cost Certificate

(ADCC) or Actual Modernization Cost Certificate (AMCC), unless HUD has

approved a pay-back plan.

4. There are no environmental factors precluding the MROP

activities.

5. The PHA must be in compliance with civil rights laws and equal

opportunity requirements. A PHA will be considered to be in compliance

if (1) as a result of formal administrative proceedings, there are no

outstanding findings of noncompliance with civil rights laws unless the

PHA is operating in compliance with a HUD-approved compliance agreement

designed to correct the area(s) of noncompliance; (2) there is no

adjudication of a civil rights violation in a civil action brought

against it by a private individual, unless the applicant demonstrates

that it is operating in compliance with a court order designed to

correct the area(s) of noncompliance; (3) there is no deferral of

Federal funding based upon civil rights violations; (4) there is no

pending civil rights suit brought against the PHA by the Department of

Justice; or (5) there is no unresolved charge of discrimination against

the PHA issued by the Secretary under section 810(g) of the Fair

Housing Act, as implemented by 24 CFR 103.400.

C. Joint Review

In accordance with the designation of projects requiring Joint

Reviews, the Field Office will conduct a (either on-site or off-site)

Joint Review for each threshold-approvable MROP activities application

as early as possible pursuant to the interim rule for the revised CIAP

program, published on March 15, 1993 (58 FR 13916). The purpose of the

Joint Review is to allow the Field Office to more thoroughly understand

the goals of the proposed MROP so it can prepare written comments

summarizing the results of the Joint Review; in contrast to the CIAP

procedures, the PHA's MROP application shall not be modified as a

result of the Joint Review in any way.

D. Field Submissions

For each threshold-approvable application, the following must be

prepared and submitted by the Field Office to the panel(s):

1. Copy of each application, narrative description of the number of

units and units by bedroom size, structure type(s), cost area, funding

required, metro/non-metro designation, results of the eligibility

determinations made under Section I.D. of this NOFA and the restriction

determinations under Section I.E. of this NOFA, as well as the results

of the Joint Review pursuant to Section IV.C. of this NOFA; and

2. Review sheet summarizing critical information about the project,

including a brief description of proposed MROP activities and their

proposed cost including any management improvements and a statement of

the determination made as to the extent such improvements are necessary

to maintain the physical improvements resulting from the proposed MROP

activities, the applicable total development cost limitation, a

discussion of the relationship and approval date of any demolition/

disposition or conversion, and the feasibility of MROP activities

compared to demolition/disposition.

E. Panel Review Criteria

The panel(s) will review and rate each application on the basis of

the following Technical Review Factors; the panel(s) may request

information from the Field Office, or make site visits, as needed:

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MROP activities panel technical review factors Points

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(1) PHA's management capability to carry out the proposed

MROP activities: (Maximum of 30 points)

(a) PHMAP overall rating 60-100........................... 15

and

(b) PHMAP (#12) development and (#1) modernization scores

A-B average.............................................. 15

or

(c) PHMAP overall rating <60, but contingent contract is

included meeting procurement requirements with qualified

entity to act as project administrator on PHA's behalf... 30

(2) The expected term of useful life of the project or

building after completion of MROP activities. (Maximum of

30 points)

(a) The plan/strategy is comprehensive and demonstrates

that the rehabilitation will result in a useful life of

at least 20 years; e.g., management deficiencies are

addressed; all physical deficiencies are addressed; local

and resident support are integrated throughout the

project improvement effort............................... 1-10

(b) Degree of Resident Involvement and degree of PHA

activity in resident initiatives, including resident

management, economic development, and drug elimination

efforts.................................................. 1-5

(c) Degree of local government and private sector

involvement and support.................................. 1-5

(d) Evidence of satisfactory maintenance of other

developments in the PHA's inventory...................... 1-10

(3) The likelihood of achieving full occupancy of the

reconstructed units comprising the project or building

after completion of MROP activities. (Maximum of 40)

(a) Need--The PHA's needs for CIAP/CGP/URD are so great

that there is little or no likelihood this project, which

has demonstrated need, will be modernized in the

foreseeable future without MROP funds.................... 1-30

(b) Adequate occupancy systems/procedures are in place or

will be in place to achieve full occupancy once

modernized............................................... 1-10

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MROP activities panel total possible points........... 100

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V. MROP Activities Funding and Further Processing

A. Each MROP activities application selected for funding by

Headquarters shall:

1. Have funds reserved in an amount of at least 70 percent of the

development cost limitation for the area and:

a. The reservation amount will be ``trended'' to preclude the need

for amendment funds;

b. The trend will be calculated by multiplying the percent of

development cost by 5.4 percent (1.054), rounded to the nearest $50;

2. Be assigned a development project number and entered into the

appropriate HUD data systems; and

3. During and after fund reservation, development procedures shall

be followed (24 CFR part 941 and Handbook 7417.1 REV-1) except:

a. MROP activities work may only be accomplished by:

(1) Sealed bid procurement method with award to the lowest

responsible bidder; or

(2) Competitive proposal method as permitted for modernization

projects under Notice PIH 93-50 (HA), whereby the PHA would execute a

fixed price contract in which the contractor would be responsible for

design of specific work items identified in the Request for Proposals,

soliciting and contracting for construction work, contract

administration and construction inspection; the contract could either

provide for progress payments, as in the sealed bid method, or a lump

sum payment after successful completion of all work;

b. CIAP modernization standards set forth in Handbook 7485.2 REV-1

must be used;

c. The PHA must incorporate its approved MROP activities

application into a PHA Proposal (Form HUD-52483A);

d. The special MROP Annual Contributions Contract (Form HUD-53010-

I), included in Notice PIH 89-41(HUD), must be used;

e. There will be no amendment funds to increase the original amount

of the MROP activities fund reservation.

VI. Checklist of Application Submission Requirements

A. Application Checklist

PHAs may use the following application checklist, which enumerates

the submission requirements of Section III of this NOFA.

1. Forms HUD-52822 and HUD-52825, CIAP Application and CIAP Budget;

2. Narrative statement addressing each of the eligibility criteria

under Section I.D. of this NOFA, each of the restriction criteria under

Section I.E. of this NOFA, and each of the Technical Review Factors

under Section IV.E. of this NOFA;

3. Information/certification, as applicable, if the application

involves demo/dispo or conversion of units;

4. HUD-52471, PHA Resolution in Support of Public Housing;

5. HUD-52472, Local Governing Body Resolution, if front-end funds

are being requested by the PHA.

[Note: If front-end funds are requested, the HUD-52471 must be

appropriately modified.];

6. PHA statement identifying its funding preferences if more than

one application is being submitted;

7. HUD-50070, PHA Certification for a Drug-Free Workplace;

8. HUD-50071, Certification for Contracts, Grants, Loans and

Cooperative Agreements;

9. Form SF-LLL, Byrd Amendment Disclosure and Certification

Regarding Lobbying, only if the applicant determines it is applicable;

10. Form HUD-2880, Disclosure of Government Assistance and Identity

of Interested Parties.

B. Application Packets

Forms comprising the application package may be obtained from the

HUD Field Office.

VII. Other Matters

A. Environmental Impact

A Finding of No Significant Impact with respect to the environment

has been made in accordance with HUD regulations at 24 CFR part 50,

implementing 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 and copying between 7:30 a.m. and 5:30

p.m. weekdays at the Office of the Rules Docket Clerk, 451 Seventh

Street SW., room 10276, Washington, DC 20410.

B. Federalism

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has determined that this NOFA

will not have substantial, direct effects on States, on their political

subdivisions, or on their relationship with the Federal government, or

on the distribution of power and responsibilities between them and

other levels of government. The NOFA will provide PHAs with funding for

public housing development MROP activities.

C. Family Impact

The General Counsel, as the Designated Official for Executive Order

12606, the Family, has determined that the provisions of this NOFA do

not have the potential for significant impact on family formation,

maintenance and general well-being within the meaning of the Order. To

the extent that the funding provided through this NOFA results in

additional or improved housing, the effects on the family will be

beneficial.

D. Prohibition Against Lobbying Activities

The Byrd Amendment. 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) 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 subrecipients 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. A certification is required, at the time the application

for funds is made, that Federally appropriated funds are not being or

have not been used in violation of section 319 and that disclosure will

be made of payments for lobbying with other than Federally appropriated

funds. Also, there is a standard disclosure form, SF-LLL, ``Disclosure

Form to Report Lobbying,'' which must be used to disclose lobbying with

other than Federally appropriated funds.

E. Prohibition Against Lobbying of HUD Personnel

Section 13 of the Department of Housing and Urban Development Act

(42 U.S.C. 3537b) 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.

HUD's regulation implementing section 13 is codified at 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. Appendix A of this rule

contains examples of activities covered by this rule.

Any questions concerning the rule should be directed to the Office

of Ethics, room 2158, Department of Housing and Urban Development, 451

Seventh Street, SW., Washington DC 20410. Telephone: (202) 708-3815

(voice/TDD). This is not a toll-free number. Forms necessary for

compliance with the rule may be obtained from the local HUD office.

F. Prohibition Against Advance Information on Funding Decisions

Section 103 of the HUD Reform Act proscribes the communication of

certain information by HUD employees to persons not authorized to

receive that information during the selection process for the award of

assistance. HUD's regulation implementing section 103 is codified at 24

CFR part 4. That regulation 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 restrained by 24 CFR 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 by 24 CFR part 4.

Applicants who have questions should contact the HUD Office of

Ethics (202) 708-3815 (voice/TDD). (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.

G. Accountability in the Provision of HUD Assistance

HUD's regulations at 24 CFR part 12 implement section 102 of the

HUD Reform Act. Section 102 contains a number of provisions designed to

ensure greater accountability and integrity in the provision of certain

types of assistance administered by HUD. The following requirements

concerning documentation and public access disclosures are applicable

to assistance awarded under this NOFA.

1. Documentation and Public Access

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 requirements.)

2. 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 of 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 part 12, subpart C, and the notice published in the

Federal Register on January 16, 1992 (57 FR 1942), for further

information on these disclosure requirements.)

Dated: May 13, 1994.

Joseph Shuldiner,

Assistant Secretary for Public and Indian Housing.

[FR Doc. 94-12399 Filed 5-19-94; 8:45 am]

BILLING CODE 4210-33-P