# Notice of Funding Availability for FY 1994; Invitation for Applications: Designated Housing for Disabled Families > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-30569 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** December 13, 1994 ## Text SUMMARY: Section 624 of the Housing and Community Development Act of 1992 (HCD Act of 1992) requires the Department to set aside not less than 5 percent of amounts approved for public housing development and MROP activities in the FY 1993 and 1994 appropriations acts for designated housing for disabled families. Section 622 of the 1992 Act amends section 7 of the U.S. Housing Act of 1937 (USHA), and sets forth the requirements for designating housing for elderly families, disabled families, and elderly and disabled families. (The final rule to implement the provisions of section 7 of the USHA was published on April 13, 1994.) These set-asides are to be used only for the costs of development of, or MROP activities in connection with, housing designated for occupancy under section 7. The competition for these set-aside funds will be based upon (1) the need of the PHA for assistance (taking into consideration the allocation plan submitted), and (2) the extent to which the projects/buildings meet the requirements of section 7(e) (i.e., the allocation and supportive service plans). Note: Pursuant to section 624(B) of the HCD Act of 1992, no building selected by the PHA for designated housing for disabled families under this NOFA may contain more than 25 units unless the applicant demonstrates a need for a building with more than 25 units that cannot otherwise be met by a building with 25 units or less. Designation of a portion of a project does not require that the buildings, floors or units be contiguous; PHAs are encouraged to place units in the most integrated setting possible. In general, HUD will approve designated projects for disabled families only if there is a clear demonstration that there is both a need and a demand by disabled families for such designation. Attached as Appendices A and B to this NOFA are the 1994 NOFA for Public Housing Development (published on May 24, 1994) and the NOFA for 1993 and 1994 MROP activities (published on May 20, 1994). The requirements set forth in these NOFAs that are applicable to public housing development and MROP activities apply to designated housing for disabled families unless otherwise indicated in this NOFA. This NOFA announces the availability of the set-asides for public housing development and/or MROP activities applications for designated housing for disabled families pursuant to section 7 of the USHA. The objective of development/MROP activities funding for designated housing for disabled families is to assist PHAs to meet the goals set forth in their allocation plans. A PHA's project(s) for disabled families must be designated before the development/MROP applications can be selected for funding under this NOFA. Thus, the PHA must have an approved allocation plan that includes the designated project as a housing resource. The PHA also must have an approved supportive service plan for the project(s) that has been designated for disabled families. Allocation plans (including those with supportive service plans) may be submitted at any time. However, if a PHA anticipates responding to this NOFA, it should submit its allocation plan and supportive service plan in sufficient time for them to be approved before the PHA files its development/MROP application. This NOFA is not applicable to the Indian housing program. DATES: APPLICATION SUBMISSION: This NOFA is open-ended and applications will be accepted at the HUD Field Office Public Housing Division any time after publication of this NOFA until all available set-aside funds for both development and MROP activities are utilized. Applications will be considered in the order received. When an application is submitted to the Field Office, the PHA must clearly write ``PUBLIC HOUSING (DISABLED) APPLICATION'' on the outside of the envelope. FOR FURTHER INFORMATION CONTACT: Kevin Emanuel Marchman, Deputy Assistant Secretary, Distressed and Troubled Housing Recovery, Office of Public and Indian Housing, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 4138, Washington, DC 20410. Telephone (202) 401-8812 (voice) or (202) 708-4594 (TDD). (These are not toll-free numbers.) SUPPLEMENTARY INFORMATION: I. Introduction A. Authority Sections 5 and 23 of the United States Housing Act of 1937 (USHA) (42 U.S.C. 1437c and 1437u); sec. 7(d) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(d)); and sections 622 and 624 of the Housing and Community Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992) (HCD Act of 1992). Public housing development regulations are codified in 24 CFR part 941, and the designated housing final rule was published in the Federal Register on April 13, 1994 (59 FR 17652). The rule will be codified at 24 CFR part 945 (``Designated Housing'' regulations). B. Fund Availability The HCD Act of 1992 required the Department to set aside not less than 5 percent of public housing development and MROP activities amounts approved in the FY 1993 and 1994 appropriations acts for designated housing for disabled families. Accordingly, $20 million was set aside in FY 1993 and a maximum of $21.78 million was set aside in FY 1994 for public housing development; a maximum of $8.96 million was set aside from the FY 1993 and 1994 appropriations for MROP activities. Thus, a maximum of $50.74 million may be made available under this NOFA. C. Fund Assignments Section 213(d) of the Housing and Community Development Act of 1974 (HCD Act of 1974) requires that funds be allocated on a fair share basis, except for (a) amounts retained in a Headquarters Reserve and (b) appropriations determined incapable of geographic allocation. Since the purpose of the allocation is to encourage PHAs to designate units for occupancy by disabled families and the extent of interest is not predicable by formula, the Department does not intend to fair share these funds. This determination was made on the basis of statutory set- aside, pursuant to 24 CFR 791.403(b)(1)(ii)(C). II. Regulations and NOFA Requirements A. Conformity While conformity with 24 CFR part 941 is required, this funding effort is also subject to the additional specific requirements, consistent with the part 941 regulations, that are set forth in this NOFA, the Designated Housing final rule (59 FR 17652), and the FSS interim and final regulations published on May 27, 1993 at 58 FR 30858 and 58 FR 30906, respectively, codified at 24 CFR part 962. Applicants also should consult Handbook 7417.1 REV-1. A PHA preparing an application for public housing development or MROP activities for designated housing for disabled families must (1) review Appendices A and B to this NOFA for requirements pertaining to the application process, threshold approvability, Field Office processing, rating panel and criteria, checklist, and (2) follow the applicable instructions. In addition to the requirements set forth in Appendices A and B, the following provisions are applicable to applicants: 1. Applications may be submitted to the HUD Field Office anytime after publication of this NOFA, as provided in the ``Application Submission'' section of this NOFA. 2. The PHA application cover letter must indicate the date the PHA's allocation and supportive services plans for housing for disabled families have been or will be submitted to the Field Office for approval. If the allocation and supportive service plans have not been filed, the Field Office shall advise the PHA that the development/MROP activities application cannot be approved unless the plans are approved. 3. Applications will be determined approvable if they successfully pass the minimum approvable score of 182 points for development applications and 140 points for MROP applications. Section 624 requires that applications be selected competitively based on (1) the PHA's need for funds to meet the goals expressed in its allocation plan; and (2) the extent to which applications meet the requirements of 24 CFR part 945 (which contains the Designated Housing regulations). Field Offices will prepare analyses of allocation and supportive service plans and of applications by furnishing narrative responses to the following items: a. Need of the PHA for assistance, taking into account the number of disabled families who are potential residents of the project based on waiting lists, local surveys of accessible housing needs, the needs assessment (see 24 CFR 8.25), a housing survey, a survey of agencies providing services to persons with disabilities, the average length of vacancy for accessible units and the length of time a disabled family has to wait for a dwelling unit. b. Extent that appropriate supportive services will be provided, indicating that prospective residents want the supportive services, that the services are adequately designed to meet the needs of disabled residents, and the experience of the service provider(s) in administering an effective service delivery program for disabled families. If residential supervision is required, the Field Office shall indicate that a written commitment has been obtained for such service. c. Field Office Reports. The Field Office Public Housing Division shall forward each approvable application to the Headquarters Panel within two weeks of the end of the deficiency ``cure'' period. The Field Office report will include the project number, total number of units and units by bedroom size, structure type(s), cost areas, funding required, the metropolitan/ non-metropolitan designations for each application, and the rating score sheets; in addition, the report is to describe how the application supports the PHA allocation and supportive service plans, and whether the PHA intends to develop the housing for disabled families on scattered sites or in a manner designed to obtain the most integrated setting possible. 4. Approvable applications will be referred to the Headquarters Review Panel, which will be convened on an ad hoc basis. This Panel will be comprised of Headquarters staff and will retain the same individuals, to the extent possible, each time the Panel convenes to ensure continuity. The Headquarters Review Panel will review and rank applications based on Field Office rating score sheets, analyses, comments and recommendations. The Assistant Secretary will select applications based on the Headquarters Review Panel's rankings and recommendations, up to the amounts available under the two set asides. B. Rating Criteria 1. General. All threshold-approvable applications shall be rated by the Field Offices on the established rating criteria listed in Appendices A and B, which still apply to corresponding designated public housing development and MROP activities plus the additional rating criteria point factors listed as follows: ---------------------------------------------------------------------------------------------------------------- Criteria Points ---------------------------------------------------------------------------------------------------------------- a. The local survey provided by the PHA of accessible housing needs indicates that there is a shortage of housing for low-income disabled families................................................ 20 b. The Field Office's determination, based on documentation submitted, that the PHA's allocation plan and the supportive service plan fulfill the requirements and provisions detailed in 24 CFR 945.205; compliance includes a description of the activities the PHA undertook to carry out the provisions of 24 CFR 945.205(b)(2) ``Public review and comment on the supportive service plan''................... 20 c. Appropriate supportive services will be provided that are designed to meet the special needs of disabled residents.................................................................................. 10 d. The supportive service provider is experienced and capable of administering an effective service delivery program as evidenced by compliance with any licensing requirements imposed by State or local law for the type of service or services to be provided........................................ 10 e. If residential supervision is required, a written commitment was included in the allocation plan.. 10 f. The application proposes housing ``in the most integrated setting possible'' ... i.e., units are not concentrated in a few locations (see 24 CFR 945.205)............................................ 10 g. There is evidence of active involvement of the applicable duly-elected resident council(s) in planning for, as well as implementing this initiative............................................... 10 h. The extent to which the PHA has demonstrated that it can train, hire or contract with residents in this initiative..................................................................................... 10 ---------------------------------------------------------------------------------------------------------------- The selection criteria specified in the attached appendices and this NOFA may not be added to or modified. 2. Total Possible Points. The total possible points for designated public housing applications is 260; the total for designated MROP activities is 200. 3. Reservation of Funds and Partial Funding. See Appendices A and B to this NOFA for applicable provisions. III. Other Matters See Appendices A and B to this NOFA with regard to other matters; all provisions as stated in the ``Other Matters'' sections of Appendices A and B apply to this NOFA, including the Finding of No Significant Impact. Dated: November 23, 1994. Joseph Shuldiner, Assistant Secretary for Public and Indian Housing. Appendix A--FY 1994 NOFA for Public Housing Development The applicable provisions of the notice of funding availability entitled ``Funding Availability for FY 1994; Invitation for Applications; Public Housing Development'' are published in the Federal Register on May 24, 1994 (59 FR 26902) is republished for informational purposes. The provisions in this NOFA concerning application due date are not republished in order not to confuse the reader. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of Assistant Secretary for Public and Indian Housing [Docket No. N-94-3763; FR-3676-N-01] Notice of Funding Availability for FY 1994; Invitation for Applications: Public Housing Development AGENCY: Office of the Assistant Secretary for Public and Indian Housing, HUD. ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 1994 for public housing development; invitation for applications. ----------------------------------------------------------------------- SUMMARY: This NOFA announces the availability of FY 1994 funding, and invites eligible public housing agencies (PHAs) to submit applications for public housing development. Applications are limited to: (1) Replacements for demolition/disposition subject to section 18 of the United States Housing Act of 1937 (USHA); (2) Replacements for homeownership transfers under the HOPE I Program, and homeownership sales under section 5(h) of the USHA; (3) Unforeseen housing needs resulting from natural and other disasters; housing needs resulting from emergencies, as certified by the Secretary, other than such disasters; housing needs resulting from the settlement of litigation; and housing in support of desegregation efforts; and (4) ``Other'' applications. All successful applicants will be required to participate in the Family Self-Sufficiency (FSS) program, unless granted an exception. This NOFA also provides instructions regarding the preparation and processing of applications. The Department is also encouraging applicants to form ``partnerships'' consisting of cooperative arrangements with community-based entities to provide housing, and is encouraging PHAs to engage in ``mixed income'' development (wherein public housing units are integrated within market-rate developments). This is being done by providing additional points for such efforts (see sections III.E.5 and IV.E. of this NOFA). This NOFA is not applicable to the Indian housing program. * * * * * 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 Sections 5 and 23 of the United States Housing Act of 1937 (USHA) (42 U.S.C. 1437c and 1437u); and sec. 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; demolition/disposition regulations are published at 24 CFR part 970; section 5(h) regulations are published at 24 CFR part 906. The interim and final regulations for the public housing FSS program were published on May 27, 1993, at 58 FR 30858, and 58 FR 30906, respectively, and will be codified at 24 CFR part 962. (The FSS final rule simply adopts the FSS interim rule as the FSS final regulations.) The Notice of Program Guidelines for the HOPE-1 program was published on January 14, 1992 at 57 FR 1522. The Catalog of Federal Domestic Assistance Program number is 14.850. B. Fund Availability The Department of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriation Act of 1994 (Pub.L. 103-124, approved October 28, 1993) (1994 Appropriations Act) makes available up to $598 million of budget authority (grants) for public housing development/Major Reconstruction of Obsolete Public Housing (MROP) under section 5(a)(2) of the USHA. Since some of the appropriated funds are to be derived from the recapture of prior year obligations, the actual amount available may be less. At the beginning of Fiscal Year (FY) 1994, the available amount was $542,796,616, which included $149,534 in available carryover funds. As recaptures of funds within the Annual Contributions account occur during the fiscal year, these amounts will be made available for allocation to public housing development up to the fully appropriated amount, plus carryover. In accordance with section 624 of the Housing and Community Development Act of 1992 (Pub.L. 102-550, approved October 28, 1992) (HCD Act of 1992), HUD has established a set-aside of five percent of appropriated funds (up to $29,900,000 depending on recaptures) for the development of housing designated for disabled families, and up to $119,200,000 (depending on recaptures) for activities involving MROP activities. Applications for designated housing for disabled families and for MROP activities will be the subject of separate NOFAs to be published by the Department. The use of funds for replacement housing subject to section 18 of the USHA is limited to the lesser of 30 percent of the amount appropriated for development or $150 million. One half of one percent of the appropriated amount (up to $2,990,000) has been set aside for technical assistance and inspections. Units transferred or sold to residents under HOPE I or section 5(h) are subject to replacement in accordance with section 304(g) of the USHA. Based on experience, the Department will provide up to $76,059,534 for such replacements. The balance of funds will be fair shared. The following table illustrates the distribution of grant authority. ------------------------------------------------------------------------ Amount Purpose ------------------------------- (Maximum) (Minimum) ------------------------------------------------------------------------ Housing for Disabled.................... $29,900,000 $26,635,460 MROP Activities......................... 119,200,000 116,139,686 Sec 18 Replacement Units................ 150,000,000 150,000,000 Technical Assistance/Inspections........ 2,990,000 2,663,547 HOPE I and Sec 5(h) Replacement......... 76,059,534 63,546,250 Fair-Share.............................. 220,000,000 183,811,673 ------------------------------- 598,149,534 542,796,616 ------------------------------------------------------------------------ C. Fund Assignments Section 213(d) of the Housing and Community Development Act of 1974 (HCD Act of 1974) requires that funds be allocated on a fair share basis, except for (a) amounts identified as Headquarters Reserve and (b) amounts determined incapable of geographic allocation. The amounts identified by category below are maximums. 1. Headquarters Reserve Threshold-approvable applications for housing resulting from unforeseen housing needs resulting from natural and other disasters; housing needs resulting from emergencies, as certified by the Secretary, other than such disasters; housing needs resulting from the settlement of litigation; and housing in support of desegregation efforts shall be assigned Headquarters Reserve funding. (Headquarters Reserve amounts are limited in accordance with section 104 of the Department of Housing and Urban Development Reform Act of 1989 (Pub.L. 101-235, approved December 15, 1989), to five percent of the financial assistance that becomes available under the USHA and section 101 of the HUD Act of 1965. Thus, Headquarters Reserve funding decisions will be made by Headquarters and may affect the distribution of grant authority shown above.) 2. Fair Share Depending on recaptures, up to $220 million will be fair shared to approve category 4 (``other'') applications. These fair share funds will be distributed to Areas (formerly Regions) on the basis of the following fair share factors, which reflect the most recent decennial census data as to population, poverty, housing overcrowding, housing vacancies, amount of substandard housing, and other measurable conditions. Because of errors in FY 1993 in calculating category 4 scores under the June 28, 1993, NOFA (58 FR 34670) for the Laconia Housing and Redevelopment Authority (LHRA) in New Hampshire and the Nahunta Housing Authority (NHA) in Georgia, fair share funds in the amounts of $753,400 and $759,400, respectively, will be awarded from the fair share amounts provided to the New England and Southeast Area before making FY 1994 selections, and assigned to the LHRA and NHA applications. The correction of these errors shall not adversely affect their participation in the FY 1994 rating and ranking process. If a new application is filed by the LHRA or NHA under this NOFA, they will be rated and ranked on the same basis as other applications, as if no error had been made. Any unused assignments will be redistributed, proportional to need, among remaining Areas with approvable unfunded ``other'' applications. Fair share and Headquarters Reserve funds are also subject to the requirement of section 213 of the HCD Act of 1974 that not less than 20 percent nor more than 25 percent of the HUD aggregate program funds covered by the statute be allocated for use in nonmetropolitan areas. Therefore, public housing development fund allocations to select ``other'' applications may be modified before assignment in order to ensure Departmental compliance with this statutory and regulatory requirement (see 24 CFR 791.403(a)). ------------------------------------------------------------------------ Fair- share Area factors (%) ------------------------------------------------------------------------ New England.................................................. 7.2 New York/New Jersey.......................................... 18.3 Mid-Atlantic................................................. 9.4 Southeast.................................................... 13.8 Midwest...................................................... 15.1 Southwest.................................................... 7.7 Great Plains................................................. 3.6 Rocky Mountain............................................... 2.5 Pacific/Hawaii............................................... 18.7 Northwest/Alaska............................................. 3.7 ---------- Total.................................................. 100.0 ------------------------------------------------------------------------ 3. Non-Fair Share Thirty percent of the appropriated amount, up to $150 million, will be made available for applications for replacement housing subject to section 18 of the USHA. Up to $76,059,534 will be made available for approvable applications for replacement units for HOPE 1 or section 5(h) homeownership transfers or sales. 4. Remaining Balances Any residual funds not reserved under categories 1, 2, and 3 will be added to the funds to be fair shared for ``other'' approvable applications. D. Conformity to Regulations and NOFA Requirements While conformity with 24 CFR part 941 is required, this funding effort is also subject to the additional specific requirements, consistent with the regulations, that are set forth in this NOFA. Applicants also should consult Handbook 7417.1 REV-1, the FY 1994 detailed Processing Notice, and the FSS interim and final regulations published on May 27, 1993 at 58 FR 30858 and 58 FR 30906, respectively, which will be codified at 24 CFR part 962. The selection criteria specified in this NOFA may not be added to or modified. II. Application Process Overview A. General All applications shall be submitted to the appropriate Field Office by the application deadline date. The Field Office shall screen each application for completeness and will provide the PHA a 14-day opportunity to furnish missing technical information or exhibits, or to correct technical mistakes. Each application will then be subjected to a ``pass/fail'' threshold examination. Approvable category 1, 2, and 3 applications will be reported to Headquarters for further action. Category 4 passing applications will be forwarded for rating to Rating Panel(s). One or more Rating Panels, comprised of HUD Field representatives appointed by Headquarters, shall be convened for the purpose. Category 4 applications will be rated by the Rating Panel(s) based on Field Office analyses. Headquarters will determine the funds required to approve category 1, 2, and 3 applications and select category 4 applications based on Rating Panel ratings and recommendations. B. Categories of Applications Each application must be for one of the following categories: 1. Replacement units for demolition/disposition approvals, subject to section 18 of the USHA (Category 1) 2. Replacement units for HOPE I or section 5(h) home-ownership transfers or sales (Category 2); 3. Public housing to be funded from Headquarters Reserve (Category 3); or 4. ``Other'' development applications intended to increase the public housing stock (Category 4). Category 4 applicants are limited to no more than one application per locality. C. Application Approval 1. Up to the available amount for category 1 applications (see Section I.B. of this NOFA) and all category 3 approvable applications will be funded. 2. Up to $76,059,534 will be made available for approvable category 2 applications. 3. Category 4 (other) applications will be funded up to the fair share amounts for each Area. 4. Funds not required for categories 1, 2, or 3 will be added to the funds to be fair shared for ``other'' approvable applications. 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. E. Records Retention Applications and materials related to applications (e.g., Field Office analyses, 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. III. Application Requirements A. All Applicants Each application must specify the housing type (new construction, rehabilitation, or acquisition), development method (conventional, turnkey, or acquisition), and community for which the project is proposed. No more than one housing type, development method, and locality may be proposed for an application. Each application shall consist of an original and two copies, and must include the following: 1. Cover Letter The cover letter must identify the category of application (see Section II.B. of this NOFA for a description of the categories; see also subparagraph 6 of Section III.A of this NOFA). 2. Application-Form HUD 52470 The application must be signed by the person authorized and dated and include the information as specified in the form. 3. Evidence of Legal Eligibility If it has not previously done so, the PHA must document that it is legally organized. A current General Certificate (Form HUD 9009) must be submitted. 4. Cooperation Agreement (Form HUD 52481) The PHA must document that the number of units requested, along with units in management and other units in development, are covered by Cooperation Agreements. 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 (see also paragraph 6 of this Section III.A). By executing the PHA Resolution, the PHA also certifies that it will comply with Title II of the Americans with Disabilities Act (42 U.S.C. 12131) and the implementing regulations at 28 CFR part 35. 6. Front-end Funds If front-end funds are being requested, the PHA must so state in its cover letter; should the PHA desire the project only if front- end funds can be approved, the PHA must so state. The Form HUD-52471 (PHA Resolution) must refer to the request, and include Form HUD- 52472 (Local Governing Body Resolution/Transcript of Proceedings) approving the request. 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 Agreement (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 implementing 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. 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. 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. 11. Family Self-Sufficiency (FSS) Section 23 of the USHA requires PHAs that are awarded new public housing units to implement an FSS program. Applicants must certify that they will comply with 24 CFR part 962, which requires successful applicants to initiate or expand an FSS program for the number of families that equals the total number of units they have been awarded (unless otherwise excepted). B. Applications for New Construction In accordance with section 6(h) of the USHA, new construction may be engaged in only if the PHA demonstrates to the satisfaction of the Secretary that the cost of new construction in the neighborhood where the PHA determines the housing is needed is less than the cost of acquisition or acquisition and rehabilitation in such neighborhood. Therefore, every application for a new construction project (conventional or turnkey) must be accompanied by either the information described in paragraphs B.1 and B.3 of this section, or, at the applicant's option, the information described in paragraphs B.2 and B.3 of this section: 1. A PHA comparison of the costs of new construction (in the neighborhood where the PHA proposes to construct the housing) and the costs of acquisition of existing housing or rehabilitation in the same neighborhood (including estimated costs of lead-based paint testing and abatement); or 2. A PHA certification, accompanied by supporting documentation, that there is insufficient existing housing in the neighborhood to develop housing through acquisition of existing housing or rehabilitation; and 3. A statement that: (a) Although the application is for new construction, the PHA will accept acquisition of existing housing or rehabilitation, if HUD determines the PHA cost comparison or certification of insufficient housing does not support approval of new construction; or (b) The application is for new construction only. (In any such case, if HUD cannot approve new construction under section 6(h) of the USHA, the application will be rejected.) C. Replacement Housing Applications 1. Cover Letter For both category 1 and category 2 applications, the cover letter must state whether the demo/dispo or transfer/sale application (to demolish/dispose of units, or to transfer/sell units) (hereinafter referred to as the ``underlying application'') has been approved; the date of approval; the project number and the name of the project being replaced; and whether it is being replaced in whole or in part. If the underlying application was not approved at the time the replacement housing application is filed, the cover letter must state the date the underlying application was submitted for consideration. Category 1 or 2 applications will not be funded unless the underlying application is approved by the time funding selections are made. 2. Section 5(j) Certification The PHA must certify that the units requested are specifically required in FY 1994 either to meet the one-for-one replacement requirement of section 18 of the USHA to replace public housing demolition/disposition; or to meet the requirements of section 304(g) of the USHA to replace existing public housing approved in FY 1994 or earlier for homeownership transfer under HOPE 1, or for sale under section 5(h) of the USHA. 3. Replacement Application Under Section 18 A PHA submitting a replacement housing application under section 18 (category 1) must demonstrate that the replacement units, alone or together with other identified replacement units: a. Will implement the PHA's Replacement Housing Plan submitted and approved under 24 CFR 970.11; b. Are for no fewer units (or portion thereof approved by HUD) than the number of units to be demolished or disposed of; and c. Will house at least the same number of individuals and families that could be served by the housing to be demolished or disposed. D. Applications for Units to be Funded From Headquarters Reserve 1. Cover Letter A PHA submitting a category 3 application shall identify the purpose of the application (see Section I.C.1 of this NOFA). 2. Section 5(j) Certification The PHA must certify that the units requested are required to comply with court orders or directions of the Secretary. Court orders must be identified. E. ``Other'' Applications Applicants are encouraged to review the rating criteria (IV.E.) to ensure rating factors have been addressed in the application. ``Curable technical deficiencies'' (Section IV.B. of this NOFA) relate only to items that would not improve the substantive quality of applications relative to rating factors. A PHA may file only one application per locality under this category. 1. Cover Letter Applicants for ``other'' public housing development units (category 4), must state whether they will accept fewer units than applied for. Refusal to accept fewer units may result in an application not being selected if funds are not sufficient for the full number of units. 2. Section 5(j) Certification The PHA must certify to one of the following, pursuant to section 5(j) of the USHA (select E.2.a or E.2.b.): a. The units requested (limited to 100 or fewer) are needed for family housing to satisfy demands not being met by the section 8 existing or voucher rental assistance programs; or b. 85 percent of the PHA's dwelling units (select (1), (2), or (3)): (1) Are maintained in substantial compliance with the section 8 housing quality standards (24 CFR 882.109); or (2) Will be so maintained upon completion of modernization for which funding has been awarded; or (3) Will be so maintained upon completion of modernization for which applications are pending that have been submitted in good faith under section 14 of the USHA (or a comparable State or local government program), and that there is a reasonable expectation, as determined in writing by HUD, that such application would be approvable; or will be so maintained upon completion of modernization under the Comprehensive Grant program. 3. Funding Preference in Accordance With Section 6(p) Section 6(p) of the USHA requires HUD to provide a funding preference for applications in areas with an inadequate supply of housing for use by low-income families (i.e., a ``tight'' housing rental market). The implementation of this preference shall be in accordance with the process described in Section V.A.2 of this NOFA. a. The PHA must furnish data relative to rental vacancy rates in the market area where the project is proposed. This data should include a description of the data sources and methods used to obtain survey information. (It is recommended that PHAs consult with local community development agencies relative to their housing needs before submitting applications under this NOFA, since most of these agencies will have participated in the development of a Comprehensive Housing Affordability Strategy (CHAS).) b. Factors such as the following will provide evidence of conditions which, when taken together, will demonstrate a pattern of inadequate supply (generally, no one factor, taken alone, is conclusive); (1) The current rental housing vacancy rate is at a low level (typically six percent or lower) which results in housing not being available for families seeking rental units (unless the housing market area is not growing and, as a result, is experiencing low levels of demand); (2) The annual production of rental housing units is insufficient to meet the demand arising from the increase in households, or, where there is little or no growth, is insufficient to meet the demand arising from net losses to the available inventory; (3) The shortage of housing is resulting in rent increases exceeding those increases commensurate with rental housing operating costs; and (4) A significant number or proportion of section 8 certificate/ voucher holders are unable to find adequate housing because of the shortage of rental housing, as evidenced by PHA data showing a lower-than-average percentage of units under lease and a longer- than-average time required to find units (typically, less than 85 percent lease up within 60 days). 4. Documentation To Demonstrate Need The PHA must submit documentation, such as waiting list description or PHA vacancy rate data, to demonstrate need for the proposed public housing, to assist the HUD Field Office in its determination of need and market in accordance with Section IV.C.8.b of this NOFA. 5. Additional Rating Points Category 4 (other) applications may obtain additional rating points (see Section IV.E.8 of this NOFA) if the PHA furnishes additional data regarding any of the following: a. ``Partnerships.'' PHAs are encouraged to form ``partnerships'' consisting of cooperative or contractual arrangements with community-based entities for the purpose of developing housing so that the housing fits into the community and is seen as an integral part of it. ``Community-based entities'' include private non-profit or for-profit entities with experience in the development of low and moderate income housing, or that are skilled in the delivery of services to families who are residents of public housing. ``Cooperative or contractual arrangements'' include those that will facilitate development (including management of the units) that will enhance the long-term viability of the development; and those arrangements that the PHA has for the delivery of services (such as child care, education, and economic opportunities) made available to residents of public housing. The PHA should indicate who the entity (or entities) are, the qualifications of the entity and its principals, and the role they play or will play in the development, management, or service delivery process which will lead to better acceptance of public housing in the community. Such cooperative arrangements require substantive involvement by the non- PHA partner in at least one of the following areas: design, management, site selection, representation to the community, or service delivery. If the PHA proposes to use public housing development funds to pay an entity for its role in the arrangement, a justification for sole-source contracting in accordance with 24 CFR 85.36(d)(4) must be provided for consideration by HUD. With respect to the delivery of services, costs for such services are not eligible to be paid from public housing development funds. The PHA must also certify that its selection of the cooperative entity (or entities) was in compliance with State and local law. [Note: If State/local procurement requirements cannot be complied with before the application deadline date, the PHA may submit a statement with its application indicating that it is in the processing of arranging such a cooperative relationship and certifying that such a relationship will comply with State and local law. In such case, within 60 days of the date of publication of this NOFA, the PHA must: (1) identify the entity(ies) proposed to be part of the cooperative relationship; (2) describe the qualifications of the entity(ies) and of its principals, and the role they will play in the development, management, or service delivery process that will lead to better acceptance of public housing in the community; (3) submit a justification for sole source contracting in accordance with 24 CFR 85.36(d)(4) (if the PHA proposes to use public housing development funds to pay the entity for its role in the cooperative arrangement), and a certification that the selection of the entity(ies) was in compliance with State and local law.] b. Mixed Income Development. In order to encourage the development of public housing in metropolitan areas that will be less identifiable as public housing, PHAs are encouraged to develop units whereby public housing would be mixed with market-rate dwellings so that they are indistinguishable. Specifically, in order to receive points for this factor, a PHA must propose to acquire units in developments where the units require incomes that, on average, are at or above 80 percent of median, or to acquire sites in developments where the units require incomes that, on average, are at or above 80 percent of median. c. Past compliance with section 3. The PHA may submit evidence that over the past five years it has met any commitments made under the provisions of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C., 1701u), as amended from time to time, and the implementing regulations for section 3 at 24 CFR part 135. If the PHA does not have development experience, it may instead submit evidence related to such experience with the modernization program. d. Proposed compliance with section 3. The PHA may submit its goals for complying with Section 3 employment and training with regards to the public housing development application. e. Support for local initiatives. If the application proposes a project which, as evidenced by a letter from local officials, actively supports an area of local initiative such as a Community Development Block Grant, urban revitalization, Enterprise Zone, or other similar local activity, or includes a commitment for a donation to the project in the event it is selected for funding, the PHA should describe the activity. f. Resident Initiatives. If the PHA is working with residents to establish and/or foster resident empowerment activities (such as establishing Resident Corporations or Resident Management Corporations), the activities should be described. F. Ineligible Applications Applications for intermediate care facilities and nursing homes may not be approved under this NOFA. Applications for housing designated for the disabled and for MROP activities will be the subject of separate NOFAs and may not be applied for under this NOFA. IV. Field Office Processing of Applications A. Submission of Applications The cover letter of all applications must be marked with the date and time of receipt, along with the initials of the Field Office employee accepting the application. Applications received after the date and time specified at the beginning of this NOFA will be returned to the applicant. The PHA should obtain a ``Return receipt'' or similar evidence of delivery when applications are delivered via other means (U.S. Mail, private mailing firms, etc.). B. 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. a. If any 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. b. Curable technical deficiencies relate only to items that would not improve the substantive quality of a category 4 application, relative to the ranking factors. c. If Form HUD 52470 (Application) is missing, the PHA's application will be considered substantively incomplete, and therefore ineligible for further processing. If other forms are missing, such as Form HUD 50070 (Drug Free Workplace Certification) or if there is a technical mistake, such as no signature, or an unauthorized signatory on a submitted form, the PHA will be given an opportunity to correct the deficiency. 2. An application that does not meet the applicable threshold and NOFA requirements after the 14-day technical deficiency period will be rejected from processing and determined to be unapprovable. 3. Applications proposing housing in areas also served by the Farmers Home Administration (FmHA) are subject to coordination with FmHA to assure that assisted housing resources to be provided are not duplicative. The State FmHA office shall be advised that an application for public housing has been received and is being considered for funding, and be provided an opportunity to comment on the application. 4. The responsibility for submitting a complete application rests with the PHA. The 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 failure to submit a complete application. C. Application Threshold Approvability After initial screening and upon expiration of the deficiency ``cure'' period, complete applications will be examined for threshold approvability. Applications that fail one or more of the threshold criteria will be rejected from processing and determined to be unapprovable. All applications for public housing development funds must meet the following thresholds to be determined approvable: 1. The PHA may not have any litigation pending which would preclude approval of the application. The PHA must be legally eligible to develop, own, and operate public housing under the USHA and have: a. Approved and current PHA organization documents; b. Local cooperation agreements to cover units under management, in development, and the units requested (Form HUD 52481), and any other required local authority; c. 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: By executing the PHA Resolution, the PHA certifies that it will comply with Title II of the Americans with Disabilities Act (42 U.S.C. 12131) and the implementing regulation at 28 CFR part 35. The PHA Resolution also certifies to the PHA's intent to comply with all requirements of 24 CFR part 941. These requirements include: 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, as amended (12 U.S.C. 1701u), and HUD's implementing regulations at 24 CFR part 135.) 2. The category of application is eligible under this NOFA (see Section II.B of this NOFA). 3. If new construction (conventional or turnkey) has been applied for, the PHA has provided a cost comparison or a certification with documentation (see Section III.B. of this NOFA), and has stated what is to be done with the application if new construction is not approvable. 4. 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. 5. There are no environmental factors, such as sewer moratoriums, precluding development in the requested locality. 6. The following certifications are included in the application and have been executed by the appropriate person(s): a. Form HUD-50070, Drug-Free Workplace; b. Form HUD-50071, Certification for Contracts, Grants, Loans and Cooperative Agreements; c. Form SF-LLL, Disclosure of Lobbying Activities, if applicable; d. Form HUD-2880, Applicant/Recipient Disclosure/Update Report; e. FSS certification; f. Section 5(j) certification appropriate to the category of application. 7. The PHA must be in compliance with civil rights laws and equal opportunity requirements. A PHA will be considered to be in compliance if: a. 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 areas(s) of noncompliance; b. 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; c. There is no deferral of Federal funding based upon civil rights violations; d. There is no pending civil rights suit brought against the PHA by the Department of Justice; or e. 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. 8. For ``other'' applications only: a. The Field Office must determine that the PHA has or will have the capability to develop and manage the proposed housing. The Field Office shall determine capability based upon the PHA's overall score under the Public Housing Management Assessment Program (PHMAP) (see 24 CFR part 901), the PHA's most recent fiscal audit, and outstanding HUD monitoring findings. 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. The Field Office must determine that there is a need and a market for the proposed household type and bedroom sizes, taking into consideration the documentation submitted by the PHA on housing supply and demonstration of need, any local plans, and other assisted housing (e.g., HUD or FmHA) existing and proposed (including housing funded but not completed). D. Threshold Approvable Applications Applications in categories 1, 2, and 3 will be determined approvable if they successfully pass the threshold review. Threshold-approvable applications in category 4 (``other'') will be reviewed and analyzed by the Field Office. E. ``Other'' Development Applications Threshold approvable ``Other'' applications will have points assigned by a Rating Panel(s) on the basis of Field Office analysis and PHA documentation relating to the following criteria. ---------------------------------------------------------------------------------------------------------------- Criteria Points ---------------------------------------------------------------------------------------------------------------- 1. Relative Need. The application proposes a project for a locality which has been previously under- funded for the household type (family or elderly) requested, relative to the need for housing for the same household type in the respective metropolitan or non-metropolitan portion of the Field Office's jurisdiction. [Select (a), (b) or (c)]: (a) Housing need in the locality specified in the application has been severely under-funded. (A locality with a percentage of need served that is equal to or less than one-half the Field Office percentage will be determined to be severely under-funded.); or......................... 20 (b) Housing need in the locality specified in the application has received a proportionate share of funding or has been moderately under-funded. (A locality with a percentage of need served that is equal to or less than the Field Office percentage, but greater than one-half that percentage will be determined to be moderately under-funded.); or.............................. 10 (c) Housing need in the locality specified in the application has been over-funded. (A locality with a percentage that is greater than the Field Office percentage will be determined to have been over-funded.)............................................................................. 0 2. Vacancy Rate. [Select (a) or (b)]: (a) The vacancy rate in public housing projects under management is not greater than 5 percent, indicating that the PHA will and can fully utilize the units for which it applied; or.......... 20 (b) The vacancy rate in public housing projects under management is greater than 5 percent but less than 6 percent (or two units if that is greater).......................................... 10 3. Large-Family Housing. The application is for a project comprising 51 percent or more three bedroom or larger units............................................................................ 20 4. Relocation. The proposed project would primarily assist households displaced or to be displaced by Federal action or a natural disaster in a Federally declared disaster area...................... 10 5. Low Density Family Housing. The application proposes scattered site development to expand housing opportunities...................................................................................... 10 6. PHA Development Experience.1 [Select (a), (b), or (c)]: (a) The PHA scored at least 90 percent (``A'') in Indicator 12 (Development) of PHMAP; or....... 20 (b) The PHA's latest PHMAP score for Indicator 12 (Development) is between 80 and 89 percent; or the Field Office has no information on the PHA's previous development experience to rate the PHA under paragraph (a) above; however, the application demonstrates the capability for, and the expectation of, expeditious quality or other development experience, or submitted a development management contract with an experienced PHA); or................................... 15 (c) The PHA's latest PHMAP score for Indicator 12 (Development) is between 60 and 79 percent; or the PHA has no development experience under either paragraph (1) or (2) above, but the PHA has evidenced staff capability and organization that demonstrates the PHA has the capability for, and the expectation of, expeditious quality development or has submitted a proposed development management contract............................................................................ 5 7. PHA Management Experience.2 [Select (a), (b), or (c)]: (a) The PHA's latest PHMAP score (excluding development) is 90 percent or better; and there were no Inspector General audit findings during the PHA's last fiscal audit; and there are no outstanding HUD monitoring findings; or........................................................ 20 (b) The PHA's latest PHMAP score (excluding development) is between 80 and 89; and Inspector General audit findings (if any) have been addressed; and outstanding HUD monitoring findings have been resolved; or......................................................................... 10 (c) Choose (1) or (2): (1) The PHA's latest PHMAP score (excluding development) is between 60 and 79; and Inspector General audit findings (if any) have been addressed; and outstanding HUD monitoring findings have been resolved; or............................................................ 5 (2) The PHA has no public housing in management, but has management experience in the section 8 program and management reviews or Inspector General audit findings (if any) are being addressed satisfactorily............................................................. 5 8. Other Criteria. [Select any that apply]: (a) The PHA indicated that it has formed a ``partnership'' (i.e., a cooperative relationship) with an entity that will play a substantive role in design, management, selection, or representation to the community; or the PHA has submitted evidence that it has formed a ``partnership'' with an entity that plays a substantive role in the delivery of services and that these services will be available to residents of the project under development............ 5 (b) The PHA has certified that it will acquire units in developments where the non-public housing units require incomes that, on average, are at or above 80 percent of median, or that it will acquire sites in developments where the units require incomes that, on average, are at or above 80 percent of median.................................................................. 5 (c) The PHA has submitted evidence that over the past five years it has met any commitments made under the provisions of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C., 1701u), as amended from time to time, and the implementing regulations for section 3 at 24 CFR part 135. If the PHA does not have development experience, it may instead submit evidence related to its experience with the modernization program....................................... 5 (d) The PHA has submitted its goals for complying with section 3 employment and training with regards to this application.................................................................... 5 (e) The application proposes a project which, as evidenced by a letter from local officials, actively supports an area of local initiative such as a Community Development Block Grant, urban revitalization, Enterprise Zone, or other similar local activity, or includes a commitment for a donation to the project in the event it is selected for funding............... 15 (f) The Field Office, based on documentation submitted by the PHA, has determined that the PHA is working with residents to establish and/or foster resident empowerment activities (such as establishing Resident Corporations or Resident Management Corporations)........................ 5 ----------- Total Possible Points......................................................................... 160 ---------------------------------------------------------------------------------------------------------------- 1The Department reserves the right to require contracted oversight of the administration of the project's development where it deems necessary. 2The Department reserves the right to require contracted oversight of the administration of the project implementation where it deems necessary. F. Field Office Reports 1. Category 1, 2, and 3 Applications Each Field Office shall forward its lists (by category) of fair- share exempt threshold-approvable applications to Headquarters within two weeks of the deficiency ``cure'' period. The lists shall include the project number, total number of units and units by bedroom size, structure type(s), cost areas, funding required and the metropolitan/non-metropolitan designations for each application. Category 1 and 2 applications shall also identify the underlying project and its current status (e.g., approved (date), under review in Field Office, etc.). 2. Category 4 All Field Office reports to Rating Panels on threshold- approvable ``other'' applications shall be submitted within four weeks of the deficiency ``cure'' period and include the information described in F.1., above, the analysis of each application, and Field Office recommendations for funding. V. Rating Panels A. Rating Panels 1. General The Rating Panel(s) shall ensure that all category 4 applications have been properly determined to be threshold- approvable. The Rating Panel(s) shall compile data furnished by Field Offices for category 4 (other) applications, and rate each application based on Field Office analyses, comments, and recommendations. A list of rated applications shall be forwarded to Headquarters, with copies of Field Office reviews and recommendations, and justifications for Rating Panel rankings. Headquarters shall not modify ratings of category 4 (``other'') applications unless a gross error has occurred. Examples of ``gross errors'' include, but are not limited to, errors in calculating the vacancy rate in the proposed community, or assigning points for development/management experience based on a PHMAP score that was successfully appealed, or simple errors of arithmetic. Changes in ratings shall be fully documented, and a copy of the memorandum authorizing the change (and the basis thereof) shall be sent to the Rating Panel and to the Field Office for inclusion in the file and be made available for public inspection. Category 4 applications shall be approved within Areas, to the extent fair share funds are assigned, as follows: 2. ``Tight Market'' Determination Headquarters will separate ``other'' applications (category 4) on the basis of ``tight rental housing market'' and Rating Panel ratings and Headquarters rankings, and approve them (in the following order) to the extent fair share funds are assigned to their respective Area: a. Applications within the same Area in tight rental housing markets which receive 80 or more rating points; b. All other applications in the same Area, in rank order, depending on ``metropolitan'' or ``non-metropolitan'' funding available. B. Reservation of Funds Funds will be reserved in an amount equal to the total development cost limit for the number, structure type, and size of units being approved, ``trended'' to take into consideration the anticipated cost of construction at the time the construction/ rehabilitation contract is expected to be executed; acquisition reservations will be trended to take into account anticipated cost variations between fund reservation and Date of Full Availability (DOFA). The trend shall be calculated by multiplying the project total development cost limit by 6 percent (1.06), rounded to the nearest $50. No amendment funds will be available for these projects in the future. C. Partial Funding Partial funding of highly ranked ``other'' applications within an Area may occur (so long as such projects are determined viable and the PHA has indicated willingness to accept fewer units) to facilitate the funding in rank order of additional applications for highly ranked projects. VI. Checklist of Application Submission Requirements--All Programs A. Submission Requirements PHAs may use the following application checklist, which enumerates the submission requirements of Section III of this NOFA. 1. Cover letter. 2. Form HUD 52470, Application for Public Housing Development; 3. Evidence of legal eligibility (if not previously evidenced) with a current General Certificate (HUD 9009); 4. Evidence that the number of units in management, in development, and being requested in this application are covered by Cooperation Agreements (HUD 52481) and any other State/local requirements have been met; 5. HUD 52471, PHA Resolution in Support of Public Housing; 6. 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. See Section III.A.6. of this NOFA); 7. PHA statement identifying its funding preferences if more than one application is being submitted for category 4 (see Section II.B of NOFA). (Note, however, that no more than one application per locality may be filed under category 4.); 8. PHA statement whether it will accept fewer ``other'' units than applied for (category 4); 9. HUD 50070, PHA Certification for a Drug-Free Workplace; 10. HUD-50071, Certification for Contracts, Grants, Loans and Cooperative Agreements; 11. Form SF-LLL, Byrd Amendment Disclosure and Certification Regarding Lobbying, only if the applicant determines it is applicable; 12. Form HUD 2880, Disclosure of Government Assistance and Identity of Interested Parties; 13. Section 5(j) certification appropriate to the category of application; 14. Evidence of inadequate housing supply (i.e., a ``tight'' rental housing market), for category 4 (``Other'') units; 15. Evidence (such as waiting list information or PHA vacancy rate data) of need and market for the units requested for category 4 applications; 16. Section 6(h) cost comparison justification, if new construction is requested; 17. FSS program certification; 18. Replacement housing exhibits, if applicable (see section III.C). 19. (Optional) For ``other'' applications, documentation to address the rating factors (see section IV.E.). 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. 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. (See Section II of this NOFA.) 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. 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. F. Section 112 of the HUD Reform Act of 1989 A final rule published in the Federal Register on September 7, 1993, amended the definition of ``person'' to exclude from coverage a State or local government, or the officer or employee of a State or local government or housing finance agency thereof who is engaged in the official business of the State or local government. 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. G. Prohibition Against Advance Disclosure of 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. 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.) H. 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 subpart C, and the notice published in Federal Register on January 16, 1992 (52 FR 1942), for further information on these disclosure requirements.) Appendix B--FY 1993 an FY 1994 NOFA for Public Housing Development-- MROP Activities The applicable provisions of the notice of funding availability entitled ``Notice of Funding Availability (NOFA) for FY 1994; Invitation for Applications; Public Housing Development--MROP Activities'' are published in the Federal Register on May 20, 1994 (59 FR 26577) is republished for informational purposes. The provisions in this NOFA concerning application due date are not republished in order not to confuse the reader. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of Assistant Secretary for Public and Indian Housing [Docket No. N-94-3758; FR-3637-N-01] Notice of Funding Availability (NOFA) for FY 1993 and 1994; Invitation for Applications: Public Housing Development--MROP Activities AGENCY: Office of the Assistant Secretary for Public and Indian Housing, HUD. ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 1993 and FY 1994 for Public Housing Development--MROP Activities; Invitation for Applications. ----------------------------------------------------------------------- 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. * * * * * 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 sec. 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.3 --------------------------------------------------------------------------- \3\ 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). --------------------------------------------------------------------------- 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.\2\ 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: ---------------------------------------------------------------------------------------------------------------- MROP Activities Panel Technical Review Factors Points ---------------------------------------------------------------------------------------------------------------- (1) PHA's management capability to carry out the proposed MROP activities: (Maximum of 30 points) (a) PHMAP Overall Rating 60-100 and.............................................................. 15 (b) PHMAP (# 12) Development & (# 1) Modernization Scores A-B Average or......................... 15 (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 ---------- MROP Activities Panel Total Possible Points.................................................... 100 ---------------------------------------------------------------------------------------------------------------- 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, S.W., Room 10276, Washington, D.C. 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.) [FR Doc. 94-30569 Filed 12-12-94; 8:45 am] BILLING CODE 4210-33-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-30569. Public record. Not legal advice.