# NOFA for Lead-Based Paint Hazard Control in Priority Housing; Notice DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** April 21, 1994

## Text

SUMMARY: This notice announces the availability of funding of $142
million for a grant program for States and local governments to
undertake lead-based paint hazard control in priority housing.
Approximately 25-30 grants of $1 million-$6 million each will be
awarded in FY 1994. The grant sum requested by applicants must be based
on the total for all years of the proposed project. This document
includes information concerning the following:
(1) The purpose of the NOFA, eligibility, available amounts, and
selection criteria;
(2) Application processing, including how to apply and how
selections will be made; and
(3) A checklist of steps and exhibits involved in the application
process.
Appendices to the NOFA identify relevant regulations and guidelines
referenced throughout the NOFA, define ``administrative costs'',
provide a sample diagram for showing an applicant's sources and uses of
the grant funds, set forth requirements for a State certification
program, list eligible HUD housing programs, provide requirements for
the Comprehensive Housing Affordability Strategy (CHAS), and set out a
relevant statutory provision. (Note: Responsibility for Category II
grants as described in the previous NOFA has been transferred to the
Environmental Protection Agency.)

DATES: An original and two copies of the completed application must be
submitted no later than 3:00 P.M. (Eastern Time) on July 5, 1994. The
application deadline is firm as to date and hour. In the interest of
fairness to all competing applicants, the Department will treat as
ineligible for consideration any application that is received after its
deadline. Applicants should take this factor into account and make
early submission of their materials to avoid loss of eligibility
brought about by unanticipated delays or other delivery-related
problems. Section 5 of this NOFA provides further information on what
constitutes proper submission of an application.

ADDRESSES: Application kits may be obtained from the Office of Lead-
Based Paint Abatement and Poisoning Prevention, Department of Housing
and Urban Development, room B-133, 451 Seventh Street, SW., Washington,
DC 20410, or by phoning 1-800-RID-LEAD (1-800-743-5323). Completed
applications should be submitted to this same address, and may not be
faxed.

FOR FURTHER INFORMATION CONTACT: Ellis G. Goldman, Director, Program
Management Division, Office of Lead-Based Paint Abatement and Poisoning
Prevention, room B-133, 451 Seventh Street, SW., Washington, DC 20410,
telephone 1-800-RID-LEAD (1-800-743-5323). TDD numbers for the hearing-
impaired are: (202) 708-9300 (not a toll-free number), or 1-800-877-
8339.

SUPPLEMENTARY INFORMATION:

Table of Contents:

Section 1. Paperwork Reduction Act Statement
Section 2. Definitions
Section 3. Purpose and Description
3.1 Purpose and Authority
3.2 Background
3.3 Allocation Amounts
3.4 Eligibility
3.5 Limitations of the Use of Assistance
3.6 Environmental Review
3.7 Objectives and Requirements
Section 4. Application Process
4.1 Submitting Applications
4.2 Threshold Requirements
4.3 Rating Factors
Section 5. Checklist of Application Submission Requirements
5.1 Applicant Data
5.2 Proposed Activities
5.3 Certifications and Assurances
Section 6. Corrections to Deficient Applications
Section 7. Administrative Provisions
7.1 Obligation of Funds
7.2 Increases of Awards
7.3 Deobligation
7.4 Reports
Section 8. Other Matters
Appendix A. Relevant Federal Regulations and Guidelines
Appendix B. Explanation of ``Administrative Costs''
Appendix C. Source and Use of Funds (Sample)
Appendix D. Eligibility of HUD-Associated Housing Units
Appendix E. Elements of a State Certification Program
Appendix F. CHAS: Statement of Requirements
Appendix G. Section 215 of NAHA, Pub. L. 101-625

Section 1. Paperwork Reduction Act Statement

The information collection requirements contained in this notice
have been approved by the Office of Management and Budget (OMB), under
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and assigned OMB control number 2539-0005.

Section 2. Definitions

The following definitions apply to this grant program:
Abatement--Any set of measures designed to eliminate lead-based
paint hazards permanently in accordance with standards established by
appropriate Federal agencies. The term includes:
(1) The removal of lead-based paint and lead-contaminated dust, the
permanent containment or encapsulation of lead-based paint, the
replacement of lead-based painted surfaces or fixtures, and the removal
or covering of lead contaminated soil; and
(2) All preparation, cleanup, worker protection, disposal, and
post-abatement clearance testing activities associated with such
measures.
Administrative Costs--(See Appendix B of this NOFA for a detailed
definition.)
Applicant--A State or a unit of general local government with an
approved Comprehensive Housing Affordability Strategy (CHAS) that
applies for funding under this NOFA.
Certified Contractor--A contractor, inspector, or supervisor who
has successfully completed a training program certified by the
appropriate Federal agency and has met any other requirements for
certification or licensure established by such agency or who has been
certified by any State through a program which has been found by such
Federal agency to be at least as rigorous as the Federal certification
program outlined in Appendix E. All lead-hazard detection or reduction
work shall be performed by workers and supervisors who have passed a
Federal training program or a State training program found by such
Federal agency to be at least as rigorous as the Federal program.
Certified Inspector--Included in the definition of ``certified
contractor,'' above.
Clearance Testing--A HUD-required testing procedure that must be
passed before a dwelling unit may be reoccupied. The unit must undergo
a wipe test showing that it has lead dust levels below HUD's maximum
allowable standards for floors (200 g/sq. ft. (micrograms/
square foot)), window sills (500 g/sq. ft.), and window wells
(800 g/sq ft.).
Encapsulation--A method of abatement that involves the coating and
sealing of surfaces with durable, surface coatings specifically
formulated to be elastic, able to withstand sharp and blunt impacts,
long-lasting, and resilient, while also resistant to cracking, peeling,
algae, fungus, and ultraviolet light, so as to prevent any part of
lead-containing paint from becoming part of house dust or otherwise
accessible to children. Paint is not an encapsulant.
Enclosure--The resurfacing or covering of surfaces with durable
materials such as gypsum board or paneling, and sealing or caulking the
edges and joints so as to prevent or control chalking, flaking,
peeling, scaling, or loose lead-containing substances from becoming
part of house dust or otherwise accessible to children.
Federally Assisted Housing--Residential dwellings receiving
project-based assistance under programs including:
(1) Section 221(d)(3) or section 236 of the National Housing Act;
(2) Section 1 of the Housing and Urban Development Act of 1965;
(3) Section 8 of the United States Housing Act of 1937; or
(4) Sections 502(a), 504, 514, 515, 516, and 533 of the Housing Act
of 1949.
Hazardous Waste--Liquid or solid waste, or combination of solid
wastes, which because of its quantity; concentration; or physical,
chemical, or infectious characteristics may:
(1) Cause, or significantly contribute to, an increase in mortality
or in serious, irreversible, or incapacitating illness; or
(2) Pose a substantial current or potential hazard to human health
or the environment, when improperly treated, stored, transported,
disposed of, or otherwise managed.
HEPA--(High efficiency particulate accumulator)--A vacuum cleaner
fitted with a filter capable of filtering out particles of 0.3 microns
or greater from a body of air at 99.97 percent efficiency or more.
Interim Controls--A set of measures designed to reduce temporarily
human exposure or likely exposure to lead-based paint hazards,
including specialized cleaning, repairs, maintenance, painting,
temporary containment, ongoing monitoring of lead-based paint hazards
or potential hazards, and the establishment and operation of management
and resident education programs.
Interim Guidelines--HUD's manual of lead-hazard control practices:
``Lead-Based Paint: Interim Guidelines for Hazard Identification and
Abatement in Public and Indian Housing,'' published 55 FR 14556 (April
18, 1990), and revised 55 FR 39874 (September 28, 1990) and 56 FR 21556
(May 9, 1991).
Laboratory Accreditation--A laboratory that has been approved by a
State or other accrediting agency to perform analyses of lead in paint
and dust and whose approval is consistent with any criteria established
by the Environmental Protection Agency.
Lead-Based Paint Hazard--Any condition that causes exposure to lead
from:
(1) Lead-contaminated dust;
(2) Lead-contaminated soil;
(3) Lead-based paint that is deteriorated;
(4) Lead-based paint present in accessible protruding surfaces that
can be chewed or mouthed by children under six;
(5) Lead-based paint present in friction surfaces; or
(6) Lead-based paint present in impact surfaces, such that the
exposure would result in adverse human health effects as established by
the Environmental Protection Agency.
Lead-Contaminated Soil--Bare soil on residential real property that
contains lead at or in excess of the level determined to be hazardous
to human health by the appropriate Federal agency.
Lead-in-dust--Interior house surface dust that contains an area
concentration of lead that may pose a threat of adverse health effects
in pregnant women or young children. A hazard exists if concentrations
exceed the maximum acceptable standards: 200 g/sq. ft. on
floors, 500 g/sq. ft. on window sills, and 800 g/sq.
ft. on window wells.
Priority Housing--Target housing that qualifies as affordable
housing under section 215 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745). (See Appendix D for a list of HUD's
programs and their eligibility or ineligibility as priority housing.)
The term does not include any public housing (whether Federal or
locally supported), any federally owned housing, or any federally
assisted housing except tenant-based housing that receives assistance
under sections 8(b) or 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(b) or (o)).
Replacement--A strategy of abatement that removes components such
as windows, doors, and trim that have lead-based painted surfaces, and
installs new or de-leaded components free of lead-based paint.
Residential Dwelling--This term means either:
(1) A single-family dwelling, including attached structures, such
as porches and stoops; or
(2) A single-family dwelling unit in a structure that contains more
than one separate residential dwelling unit, and in which each unit is,
or is intended to be, used or occupied, in whole or in part, as the
home or residence of one or more persons.
Risk Assessment--An on-site investigation to determine and report
the existence, nature, severity, and location of lead-based paint
hazards in residential dwellings, including:
(1) Information gathering regarding the age and history of the
housing and occupancy by children under age 6;
(2) Visual inspection;
(3) Limited wipe sampling or other environmental sampling
techniques;
(4) Other activity as may be appropriate; and
(5) Provision of a report explaining the results of the
investigation.
State Certification Program--(See Appendix E for extended
discussion.)
Substrate--The material to which a coating such as paint is
applied. Residential substrates are usually wood, plaster, masonry,
gypsum board, or metal, including components such as doors and door
frames, windows and window trim, other trim, walls, ceilings, cabinets,
and other built-in storage.
Surface--The outer or topmost boundary of a substrate.
Target Housing--Any housing constructed prior to 1978, except
housing for the elderly or persons with disabilities (unless any child
who is less than 6 years of age resides or is expected to reside in the
housing for the elderly or persons with disabilities) or any 0-bedroom
dwelling. In the case of jurisdictions that banned the sale or use of
lead-based paint prior to 1978, the Secretary, at the Secretary's
discretion, may designate an earlier date.
Testing--The measurement of lead in painted surfaces by Federal- or
State-certified personnel using a portable X-ray fluorescence analyzer,
laboratory analysis of paint samples, or other method approved by HUD.
Title X--The Residential Lead-Based Hazard Reduction Act of 1992
(title X of Pub. L. 102-550, approved October 28, 1992).
Trained Worker--A worker who has successfully completed a Federal
or State-accredited lead-based paint training program that is at least
as protective as the Federal Certification Program Standards outlined
in Appendix E.
Wipe Test--The testing of a surface for the presence of lead dust
by the patterned wiping of the surface, followed by analysis of the
wipe by atomic absorption spectroscopy, giving the result in micrograms
of lead per square foot of surface. For clearance purposes, a sample of
floors, window sills and window wells shall be tested in accordance
with HUD's Interim Guidelines. The guidelines also require that for
clearance all surfaces shall have less than the maximum allowable
concentration standard of 200 g/sq.ft on floors, 500
g/sq.ft on window sills, and 800 g/sq.ft on window
wells. Also see the definition for ``Clearance Testing.''
XRF Analyzer--A portable instrument that determines lead
concentration in milligrams per square centimeter (mg/cm2) using the
principle of x-ray fluorescence. The instrument may measure mean lead
content or lead content plus a spectrum of other elements. The
instrument shall be used in accordance with the rules for
interpretation of the XRF sampling data for multifamily or scattered-
site housing, as provided in the HUD Interim Guidelines.

Section 3. Purpose and Description

3.1 Purpose and Authority

Hazard-control grants are to assist States and local governments in
undertaking programs for the evaluation and reduction of lead-based
paint hazards in priority housing for rental occupants and owner
occupants. (Appendix D lists HUD-associated housing programs that may
have dwellings that meet the definition of priority housing.) One-
hundred forty-two million dollars ($142 million) will be available to
fund 25-30 grants of $1 million to $6 million, each. The amounts are
for the total, multiyear work of a proposed project. Grants are
authorized under section 1011(a-f) of Title X.
The purposes of this program include: (a) Implementation of a
national strategy, as defined in Title X, to build the infrastructure
necessary to eliminate lead-based paint hazards in all housing, as
widely and expeditiously as possible;
(b) Encouragement of effective action to prevent childhood lead
poisoning by establishing a workable framework for lead-based paint
hazard evaluation and reduction;
(c) Expeditious mobilization of national resources, involving
cooperation among all levels of government and the private sector, to
develop the most promising, cost-effective methods for evaluating and
reducing lead-based paint hazards; and
(d) Promoting job training, employment, and other economic lift
opportunities for lower income residents of the project neighborhoods.

3.2 Background

Lead is a powerful toxicant that attacks the central nervous system
and is particularly damaging to the neurological development of young
children. Pregnant women can transfer lead through the placenta to the
fetus. Lead-based paint (LBP) is one of the major sources of lead in
the environment. In addition to paint, lead may be found in dust, soil,
drinking water, food, emissions from leaded gasoline combustion, and
industrial emissions. Human exposure to lead is found by testing blood
for the presence of lead.
Based upon a national survey conducted in 1990 for HUD's
Comprehensive and Workable Plan for the Abatement of Lead-Based Paint
in Privately Owned Housing report (see Appendix A), approximately 57
million privately owned and occupied housing units built before 1980
have some lead-based paint inside or outside the dwelling. The 57
million units represent just over half of the nation's existing housing
stock, and 74 percent of the dwellings built before 1980. The figures
for dwellings having lead-based paint rise to 80 percent of dwellings
built before 1960, and to 90 percent of those built before 1940. In
addition, the older homes show both a greater concentration of lead in
the paint and more areas with lead-based paint.
An estimated 9.9 million of the 57 million units are occupied by
families with children under the age of six, who are most at risk. Of
these, about 3.8 million units have hazards requiring prompt attention,
such as peeling lead-based paint, excessive amounts of lead dust, or
both. Approximately half of these units are occupied by families with
incomes lower than the national median.
HUD has been actively engaged in a number of activities relating to
lead-based paint as a result of the Lead-Based Paint Poisoning
Prevention Act, 42 U.S.C. 4801-4846 (LBPPPA). The recently enacted
Title X provides major new initiatives and more detailed requirements
for this NOFA. (Appendix A identifies relevant Federal regulations and
guidelines referred to in this NOFA.)
The Comprehensive and Workable Plan described the magnitude of the
problem of lead hazards in private housing and set forth a
comprehensive strategy for reducing this threat. Also in 1990, HUD
developed the first set of guidelines to be used nationally for abating
lead paint in public housing (see Interim Guidelines, Appendix A). The
guidelines are now being used in the Department's public housing
modernization program, and an update to account for new knowledge and
technology is underway.
In April 1989, HUD and the Environmental Protection Agency (EPA)
executed a Memorandum of Understanding (MOU) on Lead-Based Paint. This
MOU has become the basis for interagency cooperation, including a HUD-
EPA Interagency Task Force on Lead-Based Paint. As another result of
interagency cooperation, EPA, with assistance from HUD and the Centers
for Disease Control (CDC), operates a National Clearinghouse and
Tollfree Hotline on lead poisoning 1-800-LEADFYI (1-800-532-3394).

3.3 Allocation Amounts

(a) Amounts. Under the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act of
1994 (Pub. L. 103-124 approved October 28, 1993) (Appropriations Act),
$150 million was appropriated for this program, including small set-
asides for research and development.
(b) Residual Funds. In the selection process, once available funds
have been allocated to meet the full requested amounts of the top
eligible applicants, HUD reserves the right, successively, to offer any
residual amount as partial funding to the next eligible applicant. Such
applicant(s) shall have not more than 48 hours to accept, or to decline
and reapply in the next round, provided HUD, in its sole judgment, is
satisfied that the residual amount is sufficient to support a
creditable, though reduced effort by such applicant(s).
(c) Geographic Diversity. Because lead-based paint is a national
problem, it is critical that these funds be used in a manner that
maximizes the number of housing units in which lead-hazard control
occurs, that stimulates cost-effective State and local approaches that
can be replicated in as many settings as possible, and that disperses
the grants as widely as possible across the nation. HUD expects to
award 25 to 30 grants of $1 million to $6 million each. Grantees shall
be reimbursed, in accordance with a schedule to be included with the
applicant's proposal and approved by HUD.

3.4 Eligibility

Title X specifies the following eligibility requirements for grants
to evaluate and reduce lead-based paint hazards in priority housing:
(a) Eligible Applicants. A State or unit of local government that
has an approved Comprehensive Housing Affordability Strategy (CHAS)
under section 105 (42 U.S.C. 12705) of the Cranston-Gonzalez National
Affordable Housing Act (NAHA) is eligible to apply for a grant. (See
Appendix F) However, applicants are advised that in selecting grantees
under this NOFA, the Secretary is unlikely to select applicants that
were previously funded under the FY 1993 NOFA, issued June 4, 1993 (58
FR 31848). This selection decision will be pursuant to the Secretary's
authority to ensure geographic distribution, to ensure available funds
are used effectively to promote the purposes of Title X. (See Section
4.3, Rating Factors, for additional discussion of this consideration
for selection.)
(b) Certified Performers. Funds shall be available only for
projects conducted by contractors and inspectors who are certified, and
workers who are trained, through a federally or State-accredited
program that is at least as protective as the Federal certification
program standards outlined in Appendix E to this NOFA.
(c) Eligible Activities. The following direct and support
activities are eligible under this grant program:
(1) Direct Project Elements (whether activities of the grantee or
subgrantees or other subrecipients):
Inspection and testing of housing constructed prior to
1978 to determine the presence of lead-based paint, lead dust, or
leaded soil through the use of portable X-ray fluorescence analyzers or
approved laboratory analyses and lead dust through wipe testing.
Abatement of lead-based paint hazards, including soil, by
means of removal, enclosure, encapsulation, or replacement methods.
Less-than-full-abatement techniques for programs that
apply a differentiated set of resources to each unit, dependent upon
conditions of the unit and the extent of hazards.
Temporary relocation of families and individuals during
the period in which hazard control is conducted and until the time the
affected unit receives clearance for reoccupancy.
Blood testing of children under the age of six residing in
units undergoing inspection or hazard control.
Blood testing and air sampling to protect the health of
the hazard-control workers, supervisors, and contractors.
Other housing rehabilitation activities under this program
that are specifically required to carry out effective abatement and
without which the abatement could not be effected. Grant funds from
this program may also be used for the lead-based paint hazard-control
component in conjunction with other housing rehabilitation programs.
Pre- and post-hazard control dust-wipe testing and
analysis.
Engineering and architectural costs that are necessary to,
and in direct support of, abatement.
Interim control of lead-based paint hazards priority
housing.
Establishment of a community education program on lead
hazards.
Liability insurance for lead-hazard control activities.
Data collection, analysis, evaluation, and preparation of
a case study at the conclusion of grant activities. This direct project
activity includes compiling and delivering such data as may be required
by HUD's independent evaluation and research program. For estimating
purposes, an applicant must devote 3 percent of the total grant sum for
this purpose (this 3 percent does not include the testing costs
required). Note that this function is not included in administrative
costs, for which there is a separate 10 percent limit.
Performing risk assessments and inspections in priority
housing.
(2) Support Elements:
Administrative costs of the grantee (maximum of 10%; (see
Appendix B for definition).
Program planning and management costs of subgrantees and
other subrecipients.
For Local Governments only (for States, the following
activities may be undertaken as direct project elements):
(i) Contributions to the State for the establishment of State data
collection mechanisms to collect and publish data on the extent of all
public and private lead-hazard control activities in the State,
including numbers and dollar volume of activities and number and kinds
of certified performers;
(ii) Contributions to the State for the establishment of State
funding mechanisms to assist testing and abatement efforts, with
particular emphasis on assistance to priority housing; and
(iii) Contributions to the State and/or County for the State and/or
County Government to design and develop standard land-record mechanisms
to be used by county governments to record permanently, property-by-
property, the completion and approval of lead-hazard testing and
reduction activities, so that future occupants or purchasers may be
better informed of the lead-hazard condition of the property. The land-
record mechanism is likely to need some means of record compression,
mass storage, and ease of user access, as well as an identification of
the lead-hazard control method (permanent abatement, partial abatement,
or interim control), and should trigger a notice to housing inspection
officials upon the occurrence of the expected expiration of the
effectiveness of a less-than-permanent abatement method.
(d) Ineligible Activities. Grant funds shall not be used:
(1) To purchase capital equipment, except for XRF analyzers when it
can be demonstrated that there are no XRF analyzers available locally.
If purchased, the XRF analyzers shall remain the property of the
grantee at the conclusion of the project. Funds may be used, however,
to rent equipment specifically for the abatement project. If leased
equipment, other than XRF analyzers, becomes the property of the
grantee as the result of a lease arrangement, the leased equipment
becomes the property of the Federal government at the end of the grant
period. However, that form of lease arrangement should be avoided
whenever a less expensive, straight-lease arrangement is possible; or
(2) For chelation or other medical treatment costs. Funds used to
cover these costs may be counted as part of the required local matching
contribution, but must be obtained from other sources.

3.5 Limitations on the Use of Assistance

(a) Grant funds are to be used to evaluate and reduce the hazards
of lead-based paint in residential units constructed prior to 1978.
However, if the jurisdiction has banned the sale or use of lead-based
paint prior to 1978, the applicant jurisdiction may request the
Department to designate an earlier date. These units must be priority
housing, as defined in this NOFA.
(b) Pursuant to the Coastal Barrier Resources Act (16 U.S.C. 3501),
grant funds may not be used for properties located in the Coastal
Barrier Resources System.
(c) Under the Flood Disaster Protection Act of 1973 (42 U.S.C.
4001-4128), grant funds may not be used for construction,
reconstruction, repair or improvement of a building or mobile home,
including lead-based paint abatement that involves permanent
containment or encapsulation of lead-based paint or replacement of
lead-painted surfaces or fixtures or interim control measures that
involve repairs, on properties located in an area identified by the
Federal Emergency Management Agency (FEMA) as having special flood
hazards unless:
(1) The community in which the area is situated is participating in
the National Flood Insurance Program in accordance with the applicable
regulations (44 CFR parts 59-79), or less than a year has passed since
FEMA notification regarding these hazards; and
(2) Flood insurance on the property is obtained in accordance with
section 102(a) of the Flood Disaster Protection Act (42 U.S.C.
4012a(a)). Applicants are responsible for assuring that flood insurance
is obtained and maintained for the appropriate amount and term.
(d) The National Historic Preservation Act of 1966 (16 U.S.C. 470)
(NHPA) and the regulations at 36 CFR part 800 apply to the abatement
activities that are to be undertaken pursuant to this NOFA. HUD is
responsible for satisfying the obligation to make a historic
preservation finding under section 106 of the NHPA and the regulations.
Recipients are to assist HUD in making the required findings by
providing information to document the determination. This information
includes the address of the property, and either a complete description
of the activities to be carried out or an indication that no external
changes are proposed and the property is not listed on the National
Register of Historic Places or eligible for inclusion on the National
Register (as required by section 106 of the NHPA). In the alternative,
the recipients may provide evidence of consultation with the State
Historic Preservation Officer (SHPO).
(e) The applicant shall comply with the requirements of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970 (URA) (42 U.S.C. 4201-4655). These policies are described in HUD
Handbook 1378, Tenant Assistance, Relocation and Real Property
Acquisition. No displacement (a permanent, involuntary move) is
anticipated. However, to preclude avoidable claims for relocation
assistance, all occupants (owner and tenants) shall, as soon as
feasible, be notified in writing that they will not be displaced by the
lead-based paint hazard-control program. In most cases tenants and
owner-occupants will be required to relocate temporarily to permit the
lead-based paint hazard-control program to be carried out. All
conditions of the temporary relocation must be reasonable. The policy
regarding temporary relocation costs for owner-occupants who elect to
participate in hazard-control is a matter of grantee discretion. With
respect to tenants who will be required to relocate temporarily, at a
minimum the tenant shall be provided:
(1) Reimbursement for all reasonable out-of-pocket expenses
incurred in connection with the temporary relocation, including the
cost of moving to and from the temporarily occupied housing and any
increase in monthly rent/utility costs at that housing; and
(2) Appropriate advisory services, including reasonable advance
written notice of the date and approximate duration of the temporary
relocation; the address of the suitable, decent, safe, and sanitary
dwelling to be made available for the temporary period; the
reimbursement provisions of paragraph (g)(5)(A) of this section; and
information on a resident's rights under the Fair Housing Act.
(f) The Resource Conservation and Recovery Act of 1976 (42 U.S.C.
6901 et seq.) (RCRA), administered by the EPA, shall govern all waste
disposal resulting from abatement.
(g) The applicant shall observe the procedures for worker
protection established in Chapter Eight of the Interim Guidelines. To
the extent that the Occupational Health and Safety Administration
(OSHA) requirements at 58 FR 26590 (May 4, 1993), or any other OSHA
requirements published prior to the start of actual abatement work at
any individual project site, are more stringent than the Interim
Guidelines, those more stringent OSHA standards shall govern.
(h) Abatement methods that will not be allowed are: open-flame
burning, dry scraping, uncontrolled abrasive blasting, machine sanding
without HEPA attachments or use of chemicals containing methylene
chloride. The applicant is cautioned that methods that generate high
levels of lead dust, such as abrasive sanding, shall be undertaken only
with requisite worker protection, containment of dust and debris, and
suitable clean-up.

3.6 Environmental Review

Because it is likely for many applicants that at the time of
application submission, only neighborhoods or other locators of the
housing to be abated will be known, rather than specific properties,
the Department has determined that it will perform an environmental
review in accordance with 24 CFR part 50 at the time each property is
proposed for abatement under the grant, rather than before HUD approval
of the grant.
HUD's environmental review will be limited to satisfying its
obligation to make an historic preservation finding under section 106
of the NHPA and the implementing regulations. HUD has determined that
lead-based paint abatement falls within a categorical exclusion (see 24
CFR 50.20(c)) from review under the National Environmental Policy Act
and is not subject to the remaining authorities listed in 24 CFR 50.4,
with the exception of the funding limitations under the Coastal Barrier
Resources Act and the flood insurance purchase requirements of the
Flood Disaster Protection Act of 1973. The applicant is responsible for
compliance with these funding limitations and flood insurance purchase
requirements.

3.7 Objectives and Requirements

(a) Generally. Grantees will be afforded considerable latitude in
designing and implementing the methods of lead-based paint hazard
control to be employed in their jurisdictions. HUD is interested in
promoting innovative and creative approaches that result in the
reduction of this health threat for the maximum number of low- and
moderate-income residents, and that demonstrate replicable techniques
that are better, faster, less expensive, or more effective than current
practices. Flexibility will be allowed within the parameters
established below. It is critical that procedures for all phases of
testing and abatement be clearly established in writing in the planning
stage, and then adhered to by all applicants, recipients, and their
contractors. It is only in this manner that research and evaluation of
the safety and cost-effectiveness of the methods employed can be
undertaken.
Proposed methods requiring a variance from the standards or
procedures cited below will be considered on their merits in a separate
HUD review and approval process after the grant award is made and a
specific justification has been presented. If a grant application is
dependant on a variation from the procedures cited below, but otherwise
is of award quality, it will be made as a conditional grant, subject to
approval of the request for variation. When such a request is made,
either in the application or during the planning phase, HUD intends to
consult with experts from both the public and private sector as part of
its final determinations and will document its findings in an
environmental assessment. Approval of any proposed modifications will
not involve a lowering of standards that would have a potential to
affect adversely the health of residents or workers.
(b) Testing--data collection. Grantees will be required to collect
the data necessary to document the various methods employed in order to
determine the relative cost and effectiveness of these methods in
reducing lead-based paint hazards. Pre- and post-abatement
environmental sampling and blood testing of children under the age of
six shall be a major determinant of effectiveness.
(c) Testing--schedule. In developing the application cost proposal,
applicants shall include costs for the testing cycle for each dwelling
that will undergo lead-based paint detection and hazard control, as
follows:
(1) XRF on-site (or supplementary laboratory) testing: Pretest
every room or area in each dwelling unit planned for hazard abatement;
(2) Blood testing: Of each occupant who is a child under six years
old, according to the following schedule:
(A) Pretest before abatement work begins;
(B) Test within 4 weeks of reoccupancy after completion of work,
and at 6- and 12-months after reoccupancy is optional.
(3) Dust testing: Of every room or area in each unit, according to
the following schedule:
(A) Pretest before abatement work begins;
(B) Clearance testing before reoccupying an abated unit; and
(C) Test at 12-months after the unit is reoccupied.
(d) Testing--guidance. (1) Generally. All testing and sampling
shall conform to the HUD Interim Guidelines. Note that it is
particularly important to provide this full cycle of testing for less-
than-full-abatement hazard control, even though the testing itself may
become a substantial part of the cost per unit. It will be from this
testing that the Department will be able to establish standards and
expectations for the effective period of lead-safe conditions before
the potential recurrence of any active lead hazard.
(2) Required Thresholds for Hazard control. While the Department's
Interim Guidelines (see Appendix A) employ two hazard-control
thresholds, one milligram per square centimeter (1.0 mg/cm\2\) or 0.5
percent by weight, applicants may utilize other thresholds, provided
that the alternative threshold is justified adequately and is accepted
by HUD. The justification must state why the applicant believes the
proposed approach will provide satisfactory health protection for
occupants, and must discuss cost savings and benefits expected to
result from using the proposed approach.
(3) Surfaces to be abated. HUD's Interim Guidelines are under
revision, but currently require the abatement of all interior and
exterior painted or varnished surfaces having a lead content above the
permitted threshold. In accordance with the new guidance from Title X,
there are now six defined hazards: lead-contaminated dust, lead-
contaminated soil, lead-based paint that is deteriorated, lead-based
paint present in accessible surfaces that can be chewed or mouthed by
children, lead-based paint present in friction surfaces, and lead-based
paint present in impact surfaces. The applicant may choose to treat
fewer surfaces or apply any other partial-abatement or hazard- control
techniques, provided that an adequate rationale, including periodic
monitoring, is presented to and accepted by HUD. The rationale must
state why the applicant believes the proposed approach will provide
satisfactory health protection for occupants and at the same time,
provide cost savings or other benefits, and therefore would support the
new Title X concept.
(4) Clean-up. The applicant may employ post-abatement clean-up
procedures that differ from the procedures in the HUD Interim
Guidelines, provided that an adequate justification is established and
accepted by HUD. The justification must state why the applicant
believes the proposed approach will provide satisfactory health
protection for occupants, and must discuss cost savings and benefits
expected to result from using the proposed approach.
(5) Grantees shall be required to meet the post-abatement wipe-test
clearance thresholds contained in the HUD Interim Guidelines (see
Appendix A). Wipe tests shall be conducted by a certified inspector who
is independent of the abatement contractor. Dust-wipe samples must be
analyzed by an accredited laboratory. Units shall not be reoccupied
until acceptable clearance levels are achieved.

Section 4. Grant Application Process

4.1 Submitting Applications for Grants

To be considered for funding an original and two copies of the
application must be physically received in the Office of Lead-Based
Paint Abatement and Poisoning Prevention (OLBPAPP), Department of
Housing and Urban Development, room B-133, 451 Seventh Street, SW.,
Washington, DC 20410, no later than 3 p.m. (Eastern Time) on July 5,
1994. Electronic (FAX or equivalent transmittal) application is not an
acceptable transmittal mode.
The above-stated application deadline is firm as to date and hour.
In the interest of fairness to all competing applicants, the Department
will treat as ineligible for consideration any application that is
received after the deadline. Applicants should take this factor into
account and make early submission of their materials to avoid any risk
of loss of eligibility brought about by unanticipated delays, equipment
breakdown, or delivery-related problems.
HUD will review each application to determine whether it meets all
of the threshold criteria established under Section 4.2 of this NOFA.
Nonresponsive applications will be declared ineligible for further
consideration. Applications that meet all of the threshold criteria
will be eligible to be scored and ranked, based on the total number of
points allocated for each of the rating factors in Section 4.3 of this
NOFA.
HUD intends to fund the highest ranked applications within the
limits of funding availability, but reserves the right to advance other
eligible applicants in funding rank, if necessary, to assure geographic
diversity, to promote the purposes of Title X, broaden the range of
hazard-control alternatives to be tested, or enhance data reliability.

4.2 Threshold Requirements for Category I Grants

(a) Purpose. The application must be for funds to evaluate and
reduce lead hazards in priority housing (see Appendix D for program-by-
program listing of eligible HUD-associated housing programs).
(b) Eligible Applicants. An applicant must be a State or unit of
local government that has an approved Comprehensive Housing
Affordability Strategy (CHAS) under section 105 of the NAHA (42 U.S.C.
12705) that includes a lead-hazard control element. Current CHAS
regulations were published in the Federal Register on September 1,
1992, at 57 FR 40038, as amended, in part, on March 12, 1993 at 58 FR
13686. Applicants under this NOFA are permitted to use an abbreviated
housing strategy, as set forth in Sec. 91.25 of the CHAS regulations).
(See Appendix F for guidance on submitting an abbreviated CHAS.)
(c) Matching Contribution. Each applicant shall provide a matching
contribution of at least 10 percent of the requested grant sum. This
may be in the form of a cash or in-kind contribution.
(d) Contractor certification program requirement. Each applicant
must carry out its hazard control program under an operational State-
accredited or Federal certification/training program that is at least
as protective as the Federal Certification Program standards outlined
in Appendix E. The standard completion time for non-conditional
grantees is 24 months. The following additional provisions apply to
this requirement:
(1) To receive a grant an applicant must use contractors certified
and workers trained within a State that currently has a lead-based
paint certification/training program acceptable to HUD and the EPA. If
the State in which the applicant is located has such a program, the
applicant should furnish copies of the enabling statutes and
regulations, as well as other appropriate documentation (e.g.,
certificates and licenses), as proof of the program.
(2) Other applicants may be approved for a conditional grant with
funding subject to the following provisions:
(A) An applicant shall furnish at the time of application, letters
of intent to establish and implement a certification program. The
enabling legislation shall be enacted within 12 months of the Category
I application deadline date, and the designated agency implementing the
program shall have completed initial training sessions within 18 months
from the deadline date of the Category I application date. Letters of
intent shall be from the Governor of the State and an authorized
representative of the legislative body in the State. The letters shall
set forth their plans to make a good faith effort to enact, within 12
months of the Category I application deadline date, enabling
legislation that would establish or designate an appropriate department
or office; to put an operating staff in place; and to promulgate
appropriate regulations and complete the initial training sessions
within 18 months of the Category I application date. These letters of
intent shall be carried over to the grant agreement and become part of
the grantee's assurances under it. The maximum completion time for
conditional grants is 36 months.
(B) There may be local government applicants in States that have
furnished letters of intent and have made a good faith effort to carry
out that intent, but whose State governments have been unable to comply
with the 12-month or 18-month time table. These local governments may,
with HUD approval, choose to use workers and contractors certified or
licensed under accredited programs of other States. The maximum
completion time for such conditional, local-government grantees is 42
months; the extra 6 months is made available to arrange for out-of-
State certified performers.
(C) Except as provided in paragraph (d)(2)(B) of this section, if
the commitment to establish a certification/training program is not
fulfilled within the stated time, the conditional grant agreement shall
immediately terminate.
(e) Continued Availability of Hazard Reduced Housing to Lower
Income Families. Units in which lead hazards have been treated under
this program shall then be occupied by and continue to be available to
low- and moderate-income residents as defined under section 215 of the
NAHA.
(f) Cooperation With Related Research and Evaluation. Applicants
shall cooperate fully with any research or evaluation sponsored by HUD
and associated with this grant program, including preservation of the
data and records of the project and compiling requested information in
formats provided by the researchers or evaluators. This cooperation may
also include the compiling of certain relevant local demographic,
dwelling unit, and participant data not contemplated in applicant's
original proposal. Participant data shall be subject to Privacy Act
protections. For estimating purposes, an applicant shall devote three
percent of the total grant sum for data collection and evaluation
purposes, as discussed in the Section 3.4, Eligibility, of this NOFA.

4.3 Rating Factors

HUD will use the following technical and financial criteria,
subject to the qualification discussed in the second paragraph of this
section, to rate and rank applications received in response to this
NOFA. The technical quality of an application will be rated, and then
the strength, quality, and completeness of the financial and resources
plan will be used to assess how well the technical plan is likely to be
carried out using the available resources. The total number possible
for the rating factors is 120 points, including potential bonus points,
if awarded.
Applicants are advised, however, that in selecting grantees under
this NOFA, the Secretary is unlikely to select applicants who were
previously funded under the FY 1993 NOFA, issued June 4, 1993 (57 FR
31848). This selection prerogative will be exercised under the
Secretary's authority to ensure that available funds are used
effectively and to promote the purposes of Title X. See, section
1011(d)(5) of Title X (42 U.S.C. 4852(d)(5)).
(a) Strategy. (50 points)--The quality and cost effectiveness of
the proposed lead-based paint hazard control strategy. The strategy
should include:
(1) The hazard-control program, including selection of subgrantees
and other subrecipients, abatement/hazard control methods and levels of
treatment, the quality of prior abatement experience, especially for
recipients of previous hazard control grants, financing mechanisms,
community education, temporary relocation, and the degree to which the
strategy focuses on households in priority housing with children under
the age of 6 years (20 points);
(2) A management and budget plan for the whole grant and for each
major component funded directly from the grant. The plan shall include
a year-by-year spreadsheet budget for the total grant, a task-by-task
spreadsheet budget for the total grant, and an overall source and use
of funds diagram. (See Appendix C for a sample; no form is provided
because programs vary too widely.) The source and use diagram amounts
for grant use must agree with spreadsheet totals. Provide a year-by-
year spreadsheet for each major subtask shown on the diagram. The plan
shall include an organization chart and a narrative describing how the
parts of the grant program will be coordinated and managed. Provide a
brief narrative for each major budget subtask and each functional cost
element, explaining its planned use. (10 points);
(3) The identification, inspection, and testing of priority housing
to be treated. Housing recently inspected (within 12 months of grant)
and identified prior to the date of the grant as having lead-based
paint may be included (8 points); and
(4) A program for education and outreach to the community on the
hazards of lead-based paint, including blood screening of young
children and, if necessary, referral for medical treatment (12 points).
(b) Applicant Capacity and Commitment to Hazard control. (40
points)--The capacity of the applicant to initiate and carry out the
lead-based paint testing and hazard-control program successfully within
the time frames set forth in this NOFA. Show that the proposed staff
skills match the proposed program of work described. Elements to be
considered include:
(1) Demonstrated knowledge and experience of the proposed project
manager in planning and managing large and complex interdisciplinary
programs involving housing rehabilitation, public health, and
environmental management. The percentage of time of the project manager
to be devoted to this project is a significant factor, and must be
disclosed in the application. (15 points);
(2) Demonstrated knowledge and experience of the staff assigned to
this project in carrying out these undertakings, including the
percentage of time each person will devote to the project (15 points);
and
(3) Institutional capacity, demonstrated by the experience and
continuing capacity of the jurisdiction to initiate and implement
similar environmental and housing projects. Applicant should describe
previous related efforts and the current capacity of its agencies (10
points).
(c) Applicant's Matching Contribution and Other Resources (10
points)--At a minimum, the applicant shall provide a matching
contribution of at least 10 percent of the requested grant sum. That
contribution may be in cash or in kind. In-kind contributions shall be
given a monetary value. Community Development Block Grant funds may be
considered part of the matching contribution, but only when they are
specifically dedicated to an integral part of the project. This rating
factor provides points only for additional resources that exceed the
minimum required 10% match. Each source of contributions, both for the
required minimum and additional amounts, shall be made in a letter of
commitment from the funding entity, whether a public or private source,
and shall describe the contributed resources that will be used in the
program. Absence of required letters offering specific details will
result in a reduced rating under this factor.
(d) Community and Private Sector Participation (10 points)--The
extent to which the applicant has enlisted the broad participation of
neighborhood, community, and nongovernmental organizations; the private
sector; and other governmental units in the hazard control program
through specific commitments of time, effort, and resources. These
commitments include consultation, marketing, fund-raising, and other
economic lift activities, such as employment of lower-income
neighborhood residents in the hazard control work. Evidence of these
commitments should include names and proposed roles of these
participants, and plans for employment of lower-income residents.
Absence of employment commitments and letters of participation will
result in a reduced rating under this factor.

4.4 Bonus Points

(a) Five bonus points (5 points) will be awarded if the applicant
is either: a State in which there has been no award of a lead hazard
control grant in previous rounds, or a local government in a State in
which there has been no previous award. These extra points are to
encourage the broadest diversity of States and local governments to
develop lead hazard control programs.
(b) The following five bonus points also may be awarded to
applicants that propose credible and sustainable mechanisms to meet any
of the following needs: (5 points)
(1) The establishment of stable, long-term public or private
sources of funds for State/local testing and hazard control (see
Section 3.4(c)(2)(ii) of this NOFA). (2 points);
(2) Land records tracking system. Applicants are encouraged to
establish in their land records files a mechanism for recording and
tracking in some detail the nature and location of prior lead-based
paint hazard control activities by specific housing units (see Section
3.4(c)(2)(iii) of this NOFA). (2 points); and
(3) The establishment of a State-level data collection mechanism to
track all lead-based paint testing and hazard-control activities in the
State (see Section 3.4(c)(2)(i) of this NOFA). (1 point).

Section 5. Checklist of Application Submission Requirements

5.1 Applicant Data

Applicants must complete and submit applications in accordance with
the instructions contained in the application kit. The following is a
checklist of the application contents that will be specified in the
application kit:
(a) The name, mailing address, telephone number, and principal
contact person of the applicant. If the applicant has consortium
associates, partners, major subcontractors, or joint venture
participants contributing resources to the project, similar information
shall also be provided for each of them.
(b) Proof of State accreditation requirements for lead-based paint
certification/training programs applicable to the contractors,
inspectors, and workers that will be used by the applicant, or letters
of intent from both the Governor and an authorized representative of
the legislative body stating that a good faith effort will be made to
have a certification/training program authorized within 12 months, and
operational within 18 months, of the Grant application deadline date
(see section 4.2(g) of this NOFA regarding this requirement).
(c) Evidence of the applicant's commitment to eliminating or
reducing significant lead-based paint hazards in housing as detailed in
the applicant's strategy for lead-based paint hazard control (see the
first rating factor, Strategy, in Section 4.3 of this NOFA).
(d) A detailed description of the funding mechanism, selection
process, and other proposed activities that the applicant plans to use
to assist the direct performers of hazard control activities under this
grant.
(e) The management and task budget plan that includes a summary
diagram (see Appendix C) showing the source and use of all grant funds.
The plan shall detail the proposed costs and schedules for starting and
completing each task or major subset of project activities. The budget
shall provide for each task and major subtask that is funded by the
grant. All major tasks and subtasks, including data collection (allow
3% of the total grant sum requested), should be estimated (even though
not precisely known). There shall be a separate estimate for the
overall grant management element, ``Administrative Costs,'' which are
more fully defined in Appendix B. The budget shall include not more
than 10 percent for administrative costs and not less than 90 percent
for direct project elements (including data collection; see paragraph
(e), Eligible Activities, in Section 3.4 of this NOFA). Estimates are
not required for activities fully funded by local matching funds, but
those funding sources should be shown as lump-sum amounts in the Source
and Use diagram (see Appendix C).
(f) Evidence of a continuing capacity of the applicant to undertake
a lead-based paint testing and abatement program safely and
effectively.
(g) Information itemizing what constitutes the applicant's matching
contribution, including values placed on donated in-kind services;
letters or other evidence of commitment from donors; and the amounts
and sources of coordinated resources.
(h) Information on the names and proposed roles of local
participating community- or neighborhood-based groups or organizations,
including local businesses.
(i) Completed Forms HUD-2880, Applicant/Recipient Disclosure/Update
Report, and SF-LLL, Disclosure of Lobbying Activities, where applicable
(see section on Other Matters in this NOFA).
(j) Standard Forms SF-424 and 424-B, and other certifications and
assurances listed in section 5.3 of this NOFA.
(k) A copy of the applicant's lead-hazard control element for its
Comprehensive Housing Affordability Strategy (CHAS).

5.2 Proposed Activities

(a) Affected population to be served. The applicant shall describe
the size and general characteristics of the target housing within its
jurisdiction, including a description of the housing's location,
condition, and occupants, and a current estimate of the number of
children under the age of six in these units. Maps should be included.
First preference shall be given to priority housing units. Vacant
housing that subsequently will be occupied by low-income renters should
also be included in this description. In addition, as a measure of its
ongoing commitment to lead-based paint programs, the applicant shall
provide information on the number of children diagnosed as being lead
poisoned within the previous five years and the remedial measures that
were taken to respond to these diagnoses.
(b) Discussion of lead-based paint activities. The applicant shall
provide a reasoned discussion of the proposed hazard control
activities, including, but not limited to, information on the
following:
Overall hazard control strategy, including priority
setting;
Specific neighborhoods, census tracts or other locators of
the housing units targeted for abatement (area and local maps shall be
included);
Inspection and testing of all lead-based paint-hazard
housing to be treated as part of this project;
Blood testing of children under the age of six, and
medical referral for children found to have elevated blood-lead levels;
Hazard-control methods, including interim controls, in-
place-management, less than full abatement and full abatement. Include
lead-based paint hazard controls in housing undergoing renovation
funded by other sources, but included as part of this project;
Community education;
Relocation;
Coordination and integration with public health and
housing programs to effect lead-based paint hazard control;
Data collection, documentation, and evaluation;
Mechanisms that the applicant proposes to employ to
provide financial assistance to low- and moderate-income owners and
low-income renters under this grant program for abatement. The
applicant may provide the services through a variety of programs,
including grants, equity, loans, investment or seed money for non-
profit performers' revolving loan funds, loan funds, loan guarantees,
interest write-downs, or other forms of assistance that may be approved
by the Department. Program income from loan repayments may be used only
for hazard-control related activities; and
Management and staffing of the project, including the
extent of time commitments and areas of specialization and expertise.
(c) Identification of significant-hazard housing. The applicant
must demonstrate a commitment to focus its efforts on the
identification of housing units with significant lead-based paint
hazards, particularly among dwellings for lower income families, so as
to concentrate its resources on the greatest needs first.
(d) Safe and effective conduct of the abatement. The applicant must
demonstrate willingness and readiness to oversee the safe and effective
conduct of the hazard-control work, as provided in the application kit.

5.3 Certifications and Assurances

The following certifications and assurances apply to all
applications.
(a) The application shall contain an assurance that the applicant
will comply with the environmental laws and authorities at 24 CFR 50.4,
and that it will:
(1) Supply information necessary for HUD to perform any required
environmental review of each property;
(2) Carry out mitigating measures required by HUD or select
alternate eligible property; and
(3) Not commit HUD or local funds to, or carry out, any program
activities for any property until HUD approval is received.
(b) The application shall contain a certification that the
applicant will comply with the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970; implementing regulations at
49 CFR part 24; and HUD Handbook 1378, Tenant Assistance, Relocation
and Real Property Acquisition.
(c) The application shall be in compliance with Federal civil
rights laws and requirements.
(d) The application shall contain assurances that the applicant
will comply with the requirements of the Fair Housing Act (42 U.S.C.
3601-19); Executive Order 11063; Title VI of the Civil Rights Act of
1964, pertaining to equal opportunity and nondiscrimination in housing;
and all regulations issued in accordance with these authorities.
(e) The application shall include assurances of nondiscrimination
on the basis of age or handicap, in compliance with the Age
Discrimination Act of 1975, section 504 of the Rehabilitation Act of
1973, and all regulations issued pursuant to these authorities.
(f) The application shall contain a certification that the
applicant will comply with the requirements of section 3 of the Housing
and Urban Development Act of 1968, pertaining to the provision of
economic opportunities for low- and very low- income persons, and
implementing regulations at 24 CFR part 135.
(g) The applicant shall certify that its financial management
system meets the standards for fund control and accountability as
prescribed by 24 CFR 85.20.
(h) The applicant shall assure that it will conduct dust-wipe
testing in all units in which lead-hazard control occurs, both prior to
and immediately after the hazard-control treatment and clean up, and
that the applicant will conduct dust-wipe testing 12-months after
abatement.
(i) The applicant shall assure that it will test and record the
blood-lead level of all children under the age of six occupying
affected units prior to abatement. Children determined to have elevated
blood-lead levels, using CDC, October 1991 Guidelines (see Appendix A
to this NOFA), shall be provided appropriate medical treatment, as set
forth by the CDC. If there is an existing, funded program, the costs of
blood testing and medical follow-up are eligible for inclusion in the
computation of the other resources contribution.
(j) The applicant shall assure that this application represents an
expansion of the delivery of testing and abatement services and does
not replace existing resources dedicated to any ongoing project.
(k) The application shall contain any other assurances that HUD has
included in the application kit under this NOFA.

Section 6. Corrections to Deficient Applications

HUD will notify an applicant, in writing, shortly after the
expiration of the NOFA response deadline, of any minor deficiencies in
the application that are not of a substantive nature, such as an
omitted certification or illegible signature. The applicant shall
submit corrections, which must be received at the Office of Lead-Based
Paint Abatement and Poisoning Prevention within 21 calendar days from
the date of HUD's letter notifying the applicant of any minor
deficiencies. Electronic (FAX) transmittal is not an acceptable
transmittal mode. Corrections to minor deficiencies will be accepted
within the 21-day time limit. Applicants that do not make timely
response to requests for deficiency corrections shall be removed from
further consideration for an award.
Applicants shall only be permitted to correct those deficiencies
determined by HUD to be minor. Deficiencies determined by HUD to be
substantive may not be corrected.

Section 7. Administrative Provisions

7.1 Obligation of Funds

(a) Provision of funds. Funding shall be provided on a cost-
reimbursable basis not to exceed the amount of the grant, except as
otherwise provided in Sections 7.2 and 7.3 of this NOFA. There shall be
set aside from the final grant payment sufficient funds to pay for the
6-month and 12-month post-abatement testing for blood-lead levels and
dust-wipe levels in the dwelling, as provided in paragraph (c) of this
section.
(b) Advance funds. After a grant agreement has been executed with a
grantee that has an acceptable, existing State certification program
(in compliance with Appendix E requirements), HUD may, upon written
request, provide to the grantee a cash advance that shall not exceed 10
percent of the grant amount and shall be limited to the minimum amount
needed for the actual, immediate cash requirements of the grantee in
carrying out the purposes of this NOFA. Similarly, those grantees whose
awards are conditioned upon proof of newly executed executive or
legislative authority to carry out the requirements of this NOFA may
request advances of funds, not to exceed five percent (5%) of the total
grant amount, for purposes of implementing certification or licensing
requirements and preparing certain planning documents for HUD review
and approval. Advance funds may be divided between administrative costs
and direct project costs. The applicant shall provide justification for
the division, and HUD may accept or modify the applicant's proposed
division.
(c) Availability of remaining funds. HUD will not make additional
payments, beyond the advance funds described in paragraph (b) of this
section, from the amount awarded to a grantee until the grantee's
proposed contractors and workers have met the certification and
training requirements of a State-accredited program. All additional
payments will be made on a cost-reimbursable basis, except that a 10
percent final payment shall be made upon completion of all tasks and
delivery of an acceptable final report, subject to the set aside for
post-testing described in paragraph (a) of this section. The grantee
shall specify in its request for final payment the amount of funds to
be set aside from the final 10 percent for the 6- and 12-month post-
abatement dust-wipe and blood tests. When results of these tests are
forwarded to HUD, the testing set-aside funds will be released by HUD
to the grantee.

7.2 Increases of Awards

After the signing of the grant agreement and initial obligation of
funds, HUD will not increase the grant sum or the total amount to be
obligated based upon the original scope of work. Amounts awarded may
only be increased as provided in section 7.3, Deobligation, of this
NOFA.

7.3 Deobligation

(a) Reasons for deobligation. HUD may deobligate amounts for the
advance or grant if proposed activities are not initiated or completed
within the required time after selection. The grant agreement will set
forth in detail other circumstances under which funds may be
deobligated and other sanctions imposed.
(b) Treatment of deobligated funds. HUD may undertake any one, or a
combination, of the following actions, with respect to deobligated
funds:
(1) Readvertise the availability of funds that have been
deobligated under this section in a new NOFA;
(2) Reconsider applications that were submitted in response to the
most recently published NOFA, and select additional applications for
funding with deobligated funds. These selections will be made in
accordance with the selection process described in the applicable NOFA;
(3) Fund supplemental applications from existing grantees for the
performance of expanded scopes of work that may be of benefit to the
overall program; and
(4) For deobligated funds that total less than a minimum grant
amount ($1 million), issue a solicitation to provide technical
assistance or other program support services.

7.4 Reports

The grantee shall submit the following types of reports:
(a) Annual reports. The grantee shall submit to HUD a report for
any fiscal year in which the grantee expends grant funds. Each report
shall be due six weeks after the end of the Federal Fiscal Year
(September 30). The report shall:
(1) Describe the use of the amounts received;
(2) State the number of risk assessments and the number of
inspections conducted in residential dwellings;
(3) State the number of residential dwellings in which lead-based
paint hazards have been abated, organized by method of abatement used;
(4) State the number of residential dwellings in which lead-based
paint hazards have been reduced through interim controls; and
(5) Provide any other information that the Secretary determines to
be appropriate.
(b) Progress Reports. The grantee shall submit regular progress
reports in accordance with HUD's Management Reporting System. These
progress reports shall consist of graphic reports showing expenditures
and technical progress to date, compared with the original plan, and a
narrative describing important events and problems encountered during
the period. The progress reports:
(1) Shall be filed quarterly during the planning period (and during
the waiting period for the establishment of a State Certification
Program);
(2) Shall be filed monthly during the active abatement-work period;
and
(3) May revert to being filed quarterly after completion of active
abatement work.
(c) Final Report/Case Study. The grantee shall submit a final
report/case study in accordance with the procedures of HUD's Management
Reporting System. The report shall summarize the applicant's plans,
execution of the plans, and lessons learned. The report need not be
lengthy, but should be of a quality and detail to provide a free-
standing description to any outside reader of all of the applicant's
work and achievements under the grant.

Section 8. Other Matters

Environmental Review

A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations in 24 CFR part 50,
which implements 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 during regular business hours in the
Office of the General Counsel, Rules Docket Clerk, Department of
Housing and Urban Development, 451 Seventh Street SW., room 10276,
Washington, DC 20410.

Federalism Executive Order

The General Counsel, as the Designated Official under section 8(a)
of Executive Order 12612, Federalism, has determined that the policies
and procedures contained in this NOFA will not have substantial direct
effects on States or their political subdivisions, or the relationship
between the Federal government and the States, or the distribution of
power and responsibilities among the various levels of government.
Under this NOFA, grants will be made for the abatement of significant
lead-based paint and lead-dust hazards in low- and moderate-income
owner-occupied units and privately owned low-income rental units.
Although the Department encourages States and local governments to
initiate or expand lead-based paint certification, testing, abatement,
and financing programs, any action by a State or local government in
these areas is voluntary. Because action is not mandatory, the NOFA
does not impinge upon the relationships between the Federal government
and State and local governments, and the notice is not subject to
review under the Order.

Family Executive Order

The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this document will likely
have a beneficial impact on family formation, maintenance and general
well-being. This NOFA, insofar as it funds repairs to privately owned
housing, will assist in preserving decent housing stock for resident
families. Accordingly, since the impact on the family is beneficial, no
further review is considered necessary.

Section 102 of the HUD Reform Act--Documentation and Public Access
Requirements--Applicant/Recipient Disclosures

Documentation and public access requirements. HUD will ensure that
documentation and other information regarding each application
submitted pursuant to this NOFA are sufficient to indicate the basis
upon which assistance was provided or denied. This material, including
any letters of support, will be made available for public inspection
for a five-year period beginning not less than 30 days after the award
of the assistance. Material will be made available in accordance with
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. In addition, HUD will include the
recipients of assistance pursuant to this NOFA in its quarterly Federal
Register notice of all recipients of HUD assistance awarded on a
competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice
published in the Federal Register on January 16, 1992 (57 FR 1942), for
further information on these documentation and public access
requirements.)
Disclosures. HUD will make available to the public for five years
all applicant disclosure reports (HUD Form 2880) submitted in
connection with this NOFA. Update reports (also Form 2880) will be made
available along with the applicant disclosure reports, but in no case
for a period less than three years. All reports--both applicant
disclosures and updates--will be made available in accordance with the
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. (See 24 CFR 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.)

Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the
disclosure requirements and prohibitions of Section 319 of the
Department of Interior and Related Agencies Appropriations Act for
Fiscal Year 1990 (31 U.S.C. 1352) 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.

Procurement Standards

All grantees are governed by and should consult 24 CFR parts 85.36
and 85.37, which detail procedures for subcontracts and subgrants by
States and local governments. Under Sec. 85.36, which pertains to
subcontracts, small purchase procedures can be used for contracts up to
$25,000, and require price or rate quotations from several sources
(three is acceptable); above that threshold, more formal procedures are
required (note that Sec. 85.36 treats States differently than local
governments). Section 85.37 procedures apply to subgrants, and are not
as restrictive. If States have more restrictive standards for contracts
and grants, the State standards can be applied. All grantees should
consult and become familiar with Secs. 85.36 and 85.37 before issuing
subcontracts or subgrants.

Davis-Bacon Act

The Davis-Bacon Act does not apply to this program. However, if
grant funds are used in conjunction with other Federal programs in
which the provisions of Davis-Bacon apply, then Davis-Bacon provisions
would apply to the extent required under the other Federal programs.

Prohibition Against Lobbying of HUD Personnel

Section 112 of the Housing and Urban Development Reform Act of 1989
(Pub.L. 101-235, approved December 15, 1989) (Reform Act) added a new
section 13 to the Department of Housing and Urban Development Act (42
U.S.C. 3531 et seq.). Section 13 contains two provisions concerning
efforts to influence HUD's decisions with respect to financial
assistance. The first imposes disclosure requirements on those who are
typically involved in these efforts--those who pay others to influence
the award of assistance or the taking of a management action by the
Department, and those who are paid to provide the influence. The second
restricts the payment of fees to those who are paid to influence the
award of HUD assistance, if the fees are tied to the number of housing
units received or are based on the amount of assistance received, or if
they are contingent upon the receipt of assistance.
Section 13 was implemented by regulations codified in 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 part 86.
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
(TDD/Voice). (This is not a toll-free number.) Forms necessary for
compliance with the rule may be obtained from the local HUD office.

Prohibition Against Advance Information on Funding Decisions

Section 103 of the 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 (see 56 FR 22088, May 13, 1991). In accordance with the
requirements of Section 103, 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 (TDD/Voice). (This is not a toll-free number.)
The Office of Ethics can provide information of a general nature to
HUD employees, as well. However, a HUD employee who has specific
program questions, such as whether particular subject matter can be
discussed with persons outside the Department, should contact his or
her Regional or Field Office Counsel, or Headquarters Counsel for the
program to which the question pertains.

Authority: 42 U.S.C. 4821-4846; 42 U.S.C. 3535(d).

Dated: April 14, 1994.
Arthur S. Newburg,
Director, Office of Lead-Based Paint Abatement and Poisoning
Prevention.

Appendix A--Relevant Federal Regulations and Guidelines

To secure any of the documents listed, call the listed telephone
number (generally not toll-free).

Regulations

1. Worker Protection: OSHA regulations (phone (202) 755-1822):
--General Industry Lead Standard, 29 CFR 1910.1025;
--Lead Exposure in Construction, 29 CFR 1926.62, and appendices
A, B, C, and D; published 58 FR 26590 (May 4, 1993).
2. Waste Disposal: 40 CFR parts 260-268 (EPA regulations); phone 1-
800-424-9346.

Guidelines

1. Lead-Based Paint: Interim Guidelines for Hazard Identification
and Abatement in Public and Indian Housing; HUD, revised May, 1991
(available for a charge; phone 800-245-2691):

Post Abatement Clearance, No More Than

200 Micrograms/Sq. Ft. (Floors)
500 Micrograms/Sq. Ft. (Window Sills)
800 Micrograms/Sq. Ft. (Window Wells)
2. HUD Handbook 1378, Tenant Assistance, Relocation and Real
Property Acquisition; phone (202) 708-0336.
3. Preventing Lead Poisoning in Young Children; Centers for Disease
Control, October 1991 (phone (404) 488-4880.

Reports

1. Comprehensive and Workable Plan for the Abatement of Lead-Based
Paint in Privately Owned Housing: Report to Congress (HUD, December
7, 1990) (available for a charge; phone 800-245-2691).

Information on Content of State-Accredited Contractor Certification and
Worker Training Programs

Contact: EPA Office of Pollution Prevention and Toxics, Division
of Environmental Assistance; phone (202) 260-3790.

CDC Classes of Blood Lead Levels in Children

------------------------------------------------------------------------
Concentration
Class (g/ Comment
dL)
------------------------------------------------------------------------
I 70 Child is a medical emergency. Medical and
environmental management must begin
immediately.
------------------------------------------------------------------------

Appendix B--``Administrative Costs''

I. Purpose

The intent of this HUD grant program is to allow the Grantee to
be reimbursed for the reasonable direct and indirect costs, subject
to a top limit, for overall management of the grant. In most
circumstances the Grantee, whether a state or a local government, is
expected to serve principally as a conduit to pass funding to
subgrantees, which are to be responsible for performance of the
lead-hazard reduction work. Congress set a top limit of ten (10)
percent of the total grant sum for the Grantee to perform the
function of overall management of the grant program, including
passing on funding to subgrantees. The cost of that function, for
the purpose of this grant, is defined as the ``administrative cost''
of the grant, and is limited to ten (10) percent of the total grant
amount. The balance of ninety (90) percent or more of the total
grant sum is reserved for the subgrantee/direct-performers of the
lead-hazard reduction work.

II. Administrative Costs: What They Are Not

For the purposes of this HUD grant program for States and local
governments to provide support for the evaluation and reduction of
lead-hazards in low and moderate-income, private target housing: the
term ``administrative costs'' should not be confused with the terms
``general and administrative cost'', ``indirect costs'',
``overhead'', and ``burden rate''. These are accounting terms,
usually represented by a government-accepted standard percentage
rate. The percentage rate allocates a fair share of an
organization's costs that cannot be attributed to a particular
project or department (such as the chief executive's salary or the
costs of the organization's headquarters building) to all projects
and operating departments (such as the Fire Department; the Police
Department; the Community Development Department, the Health
Department or this program). Such allocated costs are added to those
projects' or departments' direct costs to determine their total
costs to the organization.

III. Administrative Costs: What They Are

For the purposes of this HUD grant program, ``Administrative
Costs'' are the Grantee's allowable direct costs for the overall
management of the grant program plus the allocable indirect costs.
The allowable limit of such costs that can be reimbursed under this
program is ten (10) percent of the total grant sum. Should the
Grantee's actual costs for overall management of the grant program
exceed ten (10) percent of the total grant sum, those excess costs
shall be paid for by the Grantee. However, excess costs paid for by
the Grantee may be shown as part of the requirement for cost-sharing
funds to support the grant.

IV. Administrative Costs: Definition

A. General

Administrative costs, are the allowable, reasonable, and
allocable direct and indirect costs related to the overall
management of the HUD grant for lead-hazard reduction activities.
Those costs shall be segregated in a separate cost center within the
Grantee's accounting system, and they are eligible costs for
reimbursement as part of the grant, subject to the ten (10) percent
limit. Such administrative costs do not include any of the staff and
overhead costs directly arising from specific subgrantee program
activities eligible under FY 1992 NOFA Section II.e.(5) (a) and (b)
(ii) through (vi), because those costs are eligible for
reimbursement under a separate cost center as a direct part of
project activities.
The Grantee may elect to serve solely as a conduit to
subgrantees, who will in turn perform the direct program activities
eligible under NOFA Section II.E.(5) (a) and (b) (ii) through (vi),
or the grantee may elect to perform all or a part of the direct
program activities in other parts of its own organization, which
shall have their own segregated cost centers for those direct
program activities. In either case, not more than 10 percent of the
total HUD grant sum may be devoted to administrative costs, and not
less than 90% of the total grant sum shall be devoted to direct
program activities. Grantee shall take care not to mix or attribute
administrative costs to the direct project cost centers.

B. Specific

Reasonable costs for the Grantee's overall grant management,
coordination, monitoring, and evaluation are eligible administrative
costs. Subject to the (10) percent limit, such costs include, but
are not limited to, necessary expenditures for the following, goods,
activities and services:
(1) Salaries, wages, and related costs of the Grantee's staff,
the staff of affiliated public agencies, or other staff engaged in
Grantee's overall grant management activities. In charging costs to
this category the recipient may either include the entire salary,
wages, and related costs allocable to the program for each person
whose primary responsibilities (more than 65% of their time) with
regard to the grant program involve direct overall grant management
assignments, or the pro rata share of the salary, wages, and related
costs of each person whose job includes any overall grant management
assignments. The Grantee may use only one of these two methods
during this program. Overall grant management includes the following
types of activities:
(a) Preparing grantee program budgets and schedules, and
amendments thereto;
(b) Developing systems for the selection and award of funding to
subgrantees and other subrecipients;
(c) Developing suitable agreements for use with subgrantees and
other subrecipients to carry out grant activities;
(d) Developing systems for assuring compliance with program
requirements;
(e) Monitoring subgrantee and subrecipient activities for
progress and compliance with program requirements;
(f) Preparing presentations, reports, and other documents
related to the program for submission to HUD;
(g) Evaluating program results against stated objectives; and
(h) Providing local officials and citizens with information
about the overall grant program. (However, a more general education
program, helping the public understand the nature of lead hazards,
lead hazard reduction, blood-lead screening, and the health
consequences of lead poisoning is a direct project support activity,
under NOFA Section II.E. (5) (b), and should not be attributed to
administrative costs, but to its own cost center.)
(i) Coordinating the resolution of overall grant audit and
monitoring findings;
(j) Managing or supervising persons whose responsibilities with
regard to the program include such assignments as those described in
paragraphs (a) through (i).
(2) Travel costs incurred for official business in carrying out
the overall grant management;
(3) Administrative services performed under third party
contracts or agreements, for services directly allocable to overall
grant management such as overall-grant legal services, overall-grant
accounting services, and overall-grant audit services;
(4) Other costs for goods and services required for and directly
related to the overall management of the grant program, including
such goods and services as telephone, postage, rental of equipment,
renter's insurance for the program management space, utilities,
office supplies, and rental and maintenance (but not purchase) of
office space for the program.
(5) The fair and allocable share of Grantee's general costs that
are not directly attributable to specific projects or operating
departments such as: The Mayor's and City Council's salaries and
related costs; the costs of the City's General Counsel's office, not
charged off to particular projects or operating departments; and the
costs of the City's Accounting Department not charged back to
specific projects or operating departments. (If Grantee has an
established burden rate it should be used; if not Grantee shall be
assigned a negotiated provisional burden rate, subject to final
audit.)
To repeat, all of the above activities goods and services: 1.a-
j., 2., 3., 4., and 5. are subject to the ten (10) percent limit.

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Appendix E--Elements of a State Certification Program

Congress has assigned Federal responsibility to the
Environmental Protection Agency (EPA) for the definition,
implementation, and oversight of State Certification Programs for
workers, contractors, and inspectors engaged in the detection and
reduction of lead-based paint hazards. The Department of Housing and
Urban Development (HUD) has a strong interest in the strength and
rigor of the EPA program, because HUD must rely on the effectiveness
of the EPA program to assure the safe detection and reduction of
those lead-based paint hazards.
In October 1992, Congress passed the Residential Lead-Based
Paint Hazard Reduction Act. This legislation requires EPA to
promulgate regulations governing the accreditation of training
programs, the certification of contractors and the training of
workers engaged in lead-based paint activities. These regulations
must contain work practice standards. Finally, EPA must develop a
model State program containing procedures for States to gain EPA
approval of their programs.
Under the statute, lead-based paint activities are defined as:
(a) In the case of target housing: risk assessment, inspection,
and abatement; and
(b) In the case of any public building constructed before 1978,
commercial building, bridge, or other structure or superstructure:
identification of lead-based paint and materials containing lead-
based paint, deleading, removal of lead from bridges, and
demolition.
EPA is currently developing the regulations required under this
new legislation. However, since EPA's regulations are not currently
available, States that commit to develop appropriate accreditation
and certification programs as required by this NOFA are encouraged
to enact broad enabling statutes. Legislation that is overly
prescriptive may need to be modified in order to be acceptable under
EPA's upcoming regulations.
HUD and EPA can, however, at this time define a minimum set of
basic elements that must be contained in the enabling legislation.
They are enumerated in #1 below. HUD and EPA also believe that
additional elements should be included in legislation. These are
identified in #2 below.
1. The enabling statute, at a minimum, shall contain the
following elements:
a. Agency. Establish an agency, or agencies, or designate an
existing State agency, or agencies, to implement the State program.
b. Certification. Authorize and direct the agency, or agencies,
to promulgate regulations requiring the certification of
contractors, that offer to perform lead-hazard detection or lead-
hazard reduction services.
c. Worker Training. Authorize and direct the agency, or agencies
to promulgate regulations setting training requirements for workers,
inspectors, and other persons directly and substantially involved in
the performance of lead-based paint activities. Such regulations
shall establish minimum acceptable levels of training, and periodic
refresher training for each class of workers, and require that
training shall be provided by accredited training providers.
d. Accreditation of Training Providers. Authorize and direct the
agency, or agencies, to promulgate regulations to establish the
accreditation of training programs. The legislation shall require
that the regulation cover the following: (1) Minimum requirements
for the accreditation of training providers; (ii) minimum training
curriculum requirements; (iii) minimum training hour requirements;
(iv) minimum hands-on training requirements; (v) minimum trainee
competency and proficiency requirements; and (vi) minimum
requirements for training program quality control.
e. Standards. Authorize and direct the agency, or agencies, to
promulgate regulations establishing standards for performing lead-
based paint activities, taking into account reliability,
effectiveness, and safety.
f. Compliance. Authorize and direct the agency, or agencies, to
promulgate regulations that will require any activity, involving
lead-hazard detection or lead-hazard reduction procedures, to comply
with agency regulations and to use certified and accredited
personnel.
g. Enforcement. Authorize and direct the agency, or agencies, to
promulgate regulations that provide for the enforcement of the State
Certification Program, and that establish suitable sanctions, for
those who fail to comply with program requirements. The regulations
shall include provisions for the decertification and deaccreditation
of programs and personnel.
h. Federal Funding Eligibility. Authorize and direct the agency,
or agencies, to revise its regulations and procedures from time to
time to assure that State lead-hazard activities continue to be
eligible for Federal funding, by meeting the State certification
program standards and other requirements that may from time to time
be promulgated by EPA, HUD, and such other Federal agencies as may
have jurisdiction over lead hazards;
i. Reciprocity. Authorize the agency, or agencies, to establish
liaison with the other states having a State Certification Program
to assure the maximum consistency of program requirements, in order
to facilitate reciprocity of certification and accreditation among
the several States;
2. In addition to the mandatory elements present in #1 above,
HUD and EPA strongly recommend that the enabling legislation
include:
a. Staffing. Authorize and direct the agency, or agencies, to
dedicate suitable staff and to acquire suitable space, equipment,
supplies and other items necessary for the operations of the
program.
b. Fees. Authorize the agency, or agencies, to collect such fees
for certification, accreditation, and other reviews as State policy
may determine to be necessary to help support the activities of the
agency or agencies.
c. Laboratory Oversight. Authorize and direct the agency, or
agencies, to cooperate with EPA in any joint oversight procedures
EPA may propose for laboratories accredited under the EPA laboratory
accreditation program for laboratories that offer to provide lead
analysis services.
d. Data Collection. Authorize the agency, or agencies, to
establish a unit for the collection and analysis of data on lead-
hazard detection and lead-hazard reduction activities in the State,
and on the certification, accreditation, and enforcement activities
of the agency.
e. Public Education. Authorize the agency, or agencies, in
cooperation with other relevant agencies of the State, to conduct
programs of public education on the nature and consequences of lead
hazards and on the need for lead-hazard reduction activities to be
conducted under careful supervision and by certified and accredited
personnel in order to assure the public safety.

Appendix F--Statement of Requirements: Lead-Based Paint Element for
Comprehensive Housing Affordability Strategy

Section 1011 of the Housing and Community Development Act of
1992 established the requirement that, to be considered an eligible
applicant for Lead-Based Paint Grant Program funds, a State or unit
of general local government must have a Comprehensive Housing
Affordability Strategy (CHAS) that has been approved by HUD. States
and units of local government that receive direct allocations of
HOME Program or Community Development Block Grant Program funds are
required to submit a full CHAS that includes a lead-based paint
element. The instructions for developing a CHAS for Fiscal Year 1994
(including the lead-based paint element) are set out in CPD Notices
93-02 (for units of general local government) and 93-03 (for
States). The deadline for submission of a FY 1994 CHAS was December
31, 1993.
Any otherwise eligible jurisdiction that does not have an
approved Fiscal Year 1994 CHAS for the purposes of HOME, CDBG or
other funding sources, but wishes to apply for funds pursuant to
this NOFA, may develop an abbreviated strategy for the purposes of
meeting the CHAS requirement, in accordance with Section 91.25 of
the CHAS final rule and CPD Notice 94-04, January 21, 1994.
Prospective applicants that plan to prepare an abbreviated strategy
should note that these strategies must be received by HUD not later
than the deadline established for applications pursuant to this
NOFA. Failure to submit the abbreviated strategy by this deadline
will result in disqualification of the jurisdiction's application.
Applicants must include a separate copy of their CHAS lead-based
paint element or abbreviated strategy as part of the grant
application. The Lead-Based Paint Grant Program does not require the
submission of a certification of consistency with a CHAS.

Appendix G--Sec. 215 of the National Affordable Housing Act (Pub. L.
101-625): Qualification as Affordable Housing

(a) Rental Housing.--
(1) Qualification.--Housing that is for rental shall qualify as
affordable housing under this title only if the housing--
(A) bears rents not greater than the lesser of (i) the existing
fair market rent for comparable units in the area as established by
the Secretary under section 8 of the United States Housing Act of
1937, or (ii) a rent that does not exceed 30 percent of the adjusted
income of a family whose income equals 65 percent of the median
income for the area, as determined by the Secretary, with adjustment
for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 65 percent of the
median for the area on the basis of the Secretary's findings that
such variations are necessary because of prevailing levels of
construction costs or fair market rents, or unusually high or low
family incomes;
(B) has not less than 20 percent of the units (i) occupied by
very low-income families who pay as a contribution toward rent
(excluding any federal or State rental subsidy provided on behalf of
the family) not more that 30 percent of the family's monthly
adjusted income as determined by the Secretary, or (ii) occupied by
very low-income families and bearing rents not greater than the
gross rent for rent-restricted residential units as determined under
section 42(g)(2) of the Internal Revenue Code of 1986;
(C) is occupied only by households that qualify as low-income
families;
(D) is not refused for leasing to a holder of a voucher or
certificate of eligibility under section 8 of the United States
Housing Act of 1937 because of the status of the prospective tenant
as a holder of such voucher or certificate of eligibility;
(E) will remain affordable, according to binding commitments
satisfactory to the Secretary, for the remaining useful life of the
property, as determined by the Secretary, without regard to the term
of the mortgage or to transfer of ownership, or for such other
period that the Secretary determines is the longest feasible period
of time consistent with sound economics and the purposes of this
Act; and
(F) if newly constructed, meets the energy efficiency standards
promulgated by the Secretary in accordance with section 109 of this
Act.
(2) Adjustment of Qualifying Rent--The Secretary may adjust the
qualifying rent established for a project under subparagraph (A) of
paragraph (1), only if the Secretary finds that such adjustment is
necessary to support the continued financial viability of the
project and only by such amount as the Secretary determines is
necessary to maintain continued financial viability of the project.
(3) Increases in Tenant Income--Housing shall qualify as
affordable housing despite a temporary noncompliance with
subparagraph (B) or (C) of paragraph (1) if such noncompliance is
caused by increases in the incomes of existing tenants and if
actions satisfactory to the Secretary are being taken to ensure that
all vacancies are filled in accordance with paragraph (1) until such
noncompliance is corrected. Tenants who no longer qualify as low-
income families shall pay as rent not less than 30 percent of the
family's adjusted monthly income, as recertified annually.
(4) Mixed-Income Project--Housing that accounts for less than
100 percent of the dwelling units in a project shall qualify as
affordable housing if such housing meets the criteria of this
section.
(5) Mixed-Use Project--Housing in a project that is designed in
part for uses other than residential use shall qualify as affordable
housing if such housing meets the criteria of this section.
(b) Homeownership--Housing that is for homeownership shall
qualify as affordable housing under this title only if the housing--
(1) has an initial purchase price that does not exceed 95
percent of the median purchase price for the area, as determined by
the Secretary with such adjustments for differences in structure,
including whether the housing is single-family or multifamily, and
for new and old housing as the Secretary determines to be
appropriate;
(2) is the principal residence of an owner whose family
qualifies as a low-income family at the time of purchase;
(3) is made available for initial purchase only to first-time
homebuyers;
(4) is made available for subsequent purchase only--
(A) to persons who meet the qualifications specified under
paragraph (2), and
(B) at a price consistent with guidelines that are established
by the participating jurisdiction and determined by the Secretary to
be appropriate--
(i) to provide the owner with a fair return on investment,
including any improvements, and
(ii) to ensure that the housing will remain affordable to a
reasonable range of low-income homebuyers; and
(5) if newly constructed, meets the energy efficiency standards
promulgated by the Secretary in accordance with section 109 of this
Act.

[FR Doc. 94-9690 Filed 4-20-94; 8:45 am]
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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-9690. Public record. Not legal advice.