Notice of Submission of Proposed Information Collection to OMB Section 811 Supportive Housing for Persons With Disabilities Application Submission Requirements

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Housing--Federal Housing Commissioner

[Docket No. N-95-3904; FR-3903-N-02]

Notice of Submission of Proposed Information Collection to OMB

Section 811 Supportive Housing for Persons With Disabilities--

Application Submission Requirements

AGENCY: Office of Assistant Secretary for Housing--Federal Housing

Commissioner, HUD.

ACTION: Notice of Submission of Proposed Information Collection Section

811 Supportive Housing for Persons with Disabilities--Application

Submission Requirements for FY 1995.

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SUMMARY: The proposed information collection requirement described

below has been submitted to the Office of Management and Budget (OMB)

for expedited review, as required by the Paperwork Reduction Act. The

Department is soliciting public comments on the subject proposal.

ADDRESSES: Interested persons are invited to submit comments regarding

this proposal. Comments must be received within seven (7) days from the

date of this Notice. Comments should refer to the proposal by name and

should be sent to: Joseph F. Lackey, Jr., OMB Desk Officer, Office of

Management and Budget, New Executive Office Building, Washington, DC

20503.

FOR FURTHER INFORMATION CONTACT:

Kay F. Weaver, Reports Management Officer, Department of Housing and

Urban Development, 451 -- 7th Street, Southwest, Washington, DC 20410,

telephone number (202) 708-0050. This is not a toll-free number. Copies

of the proposed forms and other available documents submitted to OMB

may be obtained from Ms. Weaver.

SUPPLEMENTARY INFORMATION: This Notice informs the public that the

Department of Housing and Urban Development has submitted to OMB, for

expedited processing, an information collection package with respect to

the application submission requirements for the Section 811 Supportive

Housing Program for Persons with Disabilities. HUD is requesting a

seven-day OMB review of this information collection.

The funds for this project development and construction assistance,

which are capital advances and project rental assistance contracts were

appropriated by the Departments of Veterans Affairs and Housing and

Urban Development, and Independent Agencies Appropriations Act, 1995,

(Pub. L. 103-327, enacted September 28, 1994).

HUD intends to make available $154,946,000 in capital advance

assistance which will produce approximately 2,421 units of supportive

housing for persons with disabilities. HUD also will make available

sufficient project rental assistance funds to help cover the project's

operating cost. These funds will be provided to nonprofit organizations

to expand the supply of supportive housing for persons with

disabilities.

This Section 811 application submission package describes the

contents of the application package and includes the forms and other

information an applicant needs to file an application. The Section 811

application consists of 11 exhibits which are evaluated by HUD to

determine (1) The applicant's eligibility to participate in the

program; (2) the applicant's ability (financially and administratively)

to develop and operate the proposed project: (3) the need for the

supportive housing in the area to be served; (4) the extent to which

the applicant has site control; (5) the suitability of the site; (6)

the adequacy of the provision of supportive services; (7) the adequacy

of the proposed facility; and (8) that the applicant has properly

certified to comply with the various governmental requirements,

Executive Orders, etc.

The Department has submitted the proposal for the collection of

information, as described below, to OMB for review, as required by the

Paperwork Reduction Act (44 U.S.C. Chapter 35);

(1) the title of the information collection proposal;

(2) the office of the agency to collect the information;

(3) the description of the need for the information and its

proposed use;

(4) the agency form number, if applicable;

(5) what members of the public will be affected by the proposal;

(6) how frequently information submission will be required;

(7) an estimate of the total number of hours needed to prepare the

information submission including the number of respondents, frequency

of response, and hours of response;

(8) whether the proposal is new or an extension, reinstatement, or

revision of an information collection requirement; and

(9) the names and telephone numbers of an agency official familiar

with the proposal and of the OMB Desk Officer for the Department.

[[Page 29635]] Authority: Section 3507 of the Paperwork

Reduction Act, 44 U.S.C. 3507; Section 7(d) of the Department of

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

Dated May 24, 1995.

Nicolas P. Retsinas,

Assistant Secretary for Housing--Federal Housing Commissioner.

Notice of Submission of Proposed Information Collection to OMB

Proposal: Section 811 Supportive Housing Program for Persons with

Disabilities--Application Submission Requirements.

Office: Office of Assistant Secretary for Housing--Federal Housing

Commissioner.

Description of the Need for the Information and its Proposed Use:

This information collection is required in connection with the

application submission requirements for the Section 811 Supportive

Housing Program for Persons with Disabilities. HUD intends to make

available $154,946,000 in capital advance assistance to expand the

supply of supportive housing for persons with disabilities. This

information collection describes the contents of the application

package which is used by HUD to determine the acceptability of the

requests for capital advance assistance.

Form Number: HUD-92016-CA

Respondents: Nonprofit Organizations.

Frequency of Submission: Annually.

Reporting Burden:

----------------------------------------------------------------------------------------------------------------

Number of Frequency of Hours per Burden

respondents X response X response = hours

----------------------------------------------------------------------------------------------------------------

Application package..................... 400 1 41.2 14,960

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Total Estimated Burden Hours: 14,960.

Status: Reinstatement with Change.

Contact: Margaret F. Milner, HUD (202) 708-4542, Joseph F. Lackey,

Jr., OMB (202) 395-7316.

Dated: May 24, 1995.

Section 202 Application Submission Requirements, OMB No. 2502-0462

A. Supporting Statement

1. Need for Information

The Section 811 program, amended by the National Affordable Housing

Act (NAHA) of 1990 and the Housing and Community Development Act of

1992, provides capital advances to nonprofit organizations to expand

the supply of supportive housing for persons with disabilities. In

order to ensure that only eligible nonprofit organizations are

selected, it is important to obtain information from prospective

applicants to assist HUD in determining if they have the administrative

capacity to develop such a project and whether the project design and

supportive services plan meet the needs of the residents. These factors

are critical in meting statutory requirements and in protecting the

Department's financial interest in projects funded under this program.

In keeping with the Department's commitment to streamline the

Section 811 application submission package, the Department met with

representatives of Section 811 nonprofit organizations, housing

consultants and other program staff to discuss ideas for revamping the

Section 811 application submission package to make it less burdensome

to Section 811 applicants without compromising the Federal Government's

financial interest in the project.

More recently, the Department held two working group sessions to

identify further ways to streamline the Section 811 program and make it

more consumer friendly. The working groups consisted of Sponsors of

Section 811 projects and HUD staff. Additionally, the Department

conducted a Section 811 consumer forum in which program beneficiaries,

primarily disabled residents and potential residents, expressed their

concerns about the quality of living in existing Section 811 projects

and provided ideas for improving the program and projects. The

supporting justification as contained herein reflects the results of

the Department's meetings and telephone conversations with the private

sector and HUD program staff.

The Section 811 application submission package for the fund

reservation was approved by OMB under No. 2502-0462 which expired in

December 1994. The Department is requesting reinstatement of OMB No.

2502-0462 to permit the Department to collect the information

identified in this submission.

The Department has an on-going commitment to identify ways to

simplify the process by which the Section 811 program is administered

(including the application submission requirements) so that is can be

more consumer friendly. Because of this commitment, the Department

wanted greater participation from the private sector in revising the

program. To accomplish this, additional time was needed to arrange for

and conduct the various working group sessions with the private sector

and other program staff, and to evaluate the recommendations resulting

from these sessions. As a result of this public-private effort, the

Department was unable to make the final revisions to the application

submission package prior to the OMB expiration date.

Based on our previous years' experience, the Department receives

far more applications than available resources can fund. In Fiscal Year

(FY) 1994, the Department received 383 applications requesting some

5,037 units of housing and could only select for funding 222

applications for some 2,783 units of housing.

Because the Department has continued to reduce program requirements

at the fund reservation stage and because the program provides for

capital advances (in lieu of loans), the Section 811 program is

expected to attract more nonprofit organizations. It is anticipated

that the number of applications received will exceed those received in

FY 1994. In view of the highly competitive nature of the Section 811

program, it is necessary to have the response comply with prescribed

application requirements in order to form a basis for HUD's evaluation

in selecting applications.

The application submission requirements, summarized below, were

developed after much consultation with the professionals in the field

of providing housing for persons with disabilities and were intended to

not only reduce the paperwork burden to the nonprofit applicants but to

minimize their front-end expenditures in putting together an

application package. This is important because only a small percentage

of the universe of applications received ultimately are funded.

Contents of Application Package

The contents of the Application for a Section 811 Fund Reservation

have been reorganized and reduced from five parts and 24 exhibits to

four parts and 11 exhibits. Included with the 11 exhibits are six

prescribed forms; five are required and one is optional.

There are 17 certifications in the application package. Twelve of

the certifications have been combined into [[Page 29636]] a single

document as a convenience to the applicant. The four components of the

application submission package are:

Part 1--Application for Section 811 Supportive Housing--Capital Advance

Part 2--Sponsor's Ability to Develop and Operate the Proposed Project

Part 3--Need for Supportive Housing for Persons with Disabilities in

the Area to be Served, Extent to Which Sponsor has Site Control,

Suitability of Site, and the Design of the Project

Part 4--General Application Requirements and Certifications

All of the required application exhibits are specifically

identified in Section 890.265(b) of the Section 811 regulations, as

amended.

2. The Section 811 application submission requirements are

necessary to assist HUD in determining an applicant's eligibility and

capacity to develop housing for persons with disabilities consistent

with prescribed statutory and program criteria. A thorough evaluation

of an applicant's qualifications and capabilities is critical in

protecting the Federal Government's financial interest and to mitigate

any possibility of fraud, waste or mismanagement of public funds.

The procedures for information collection requires the prospective

applicant to submit its Section 811 application to the appropriate

local HUD Office by the nationally established deadline date (usually

between March and June). Local HUD Offices evaluate applications based

on established criteria (identified in Section 890.300 of the

regulations), rate the applications and make selection recommendations

to Headquarters (usually by the first week of September). Applicants

are notified of selection or nonselection generally by September 30.

This process occurs once a year.

The purpose and use of the four components of the application

exhibits are briefly described below:

(a) Part 1--Application for Section 811 Supportive Housing--Capital

Advance

Exhibit 1: This exhibit requires applicants to submit Form HUD-

92016-CA, Request for Section 811 Fund Reservation--Summary

Information. This is a relatively new form which replaced Form HUD-

92013, Application for Multifamily Housing Project, at the fund

reservation stage. Form HUD-92016-CA was specifically designed to

require the minimum information needed about the project for HUD review

at this stage. The form identifies the applicant and its known

development team members as well as collects basic information with

regard to the proposed project's characteristics. It is used by HUD

staff to obtain basic information regarding the proposed project.

(b) Part 2--Sponsor's Ability to Develop and Operate the Proposed

Project

Exhibit 2: This Exhibit requests the submission of organizational

documents, IRS tax exemption ruling, and a Resolution, which also

includes a listing of all officers and directors, concerning Conflict

of Interest to assure that no officer or director has a financial

interest in the project. It is important to note that not all

applicants will have to submit all of the information asked for in this

exhibit. Applicants who have received a Section 811 fund reservation

within the last three funding cycles are not required to submit their

organizational documents and IRS tax exemption rulings. Instead, these

applicants must submit only the project numbers of their latest

application and any modifications to these documents, if any.

Exhibit 3: This exhibit requests narrative descriptions of the

applicant's community ties, experience in operating rental housing

projects and its experience with programs other than housing such as

the provision of services. This information includes the applicant's

experience in serving persons with disabilities and minorities. This

information will assist HUD in determining the applicant's over-all

previous experience and capacity to operate the proposed project over

an extended period of time. This is consistent with the statute which

requires applicants to be selected on, among things, their ability to

develop and operate the proposed housing.

In addition, the statute requires the Department to take action to

ensure, among other things, that the supportive housing for persons

with disabilities facilitates their access to the community at large

and to suitable employment opportunities within such community. Also,

the application must provide evidence of the applicant's (or designated

service provider's) experience in providing supportive services as well

as the extent to which State and/or local funds are available to assist

in the provision of such supportive services. In order to assess the

applicant's ability to carry out these statutory requirements, the

applicant is required to submit a statement evidencing its ties to the

community, including the disabled community and minorities, in which

the proposed project is to be built as well as a statement regarding

its purposes and activities.

Under this part, the applicant also submits a narrative description

of its contracting experience with minority and women-owned businesses

pursuant to Executive Orders 11625, 12432 and 12138, as well as its

efforts to involve persons with disabilities, in the development of the

application and its intent to involve such persons in the development

of the project.

Included in this exhibit is a certified Resolution from the

applicant's Board acknowledging its responsibilities of sponsorship and

long-term support of the project, along with its willingness to fund

the minimum capital investment, estimated start-up expenses, and the

cost of any amenities or features that cannot be covered by the capital

advance.

It is important to note that many applicants will experience some

relief of paperwork burden in preparing this exhibit because applicants

that have participated in prior funding competitions will be able to

utilize information and exhibits from previously prepared applications.

Some examples include information regarding previous experience in the

provision of housing and services, supportive services plan, community

ties, and experience serving minorities.

(c) Part 3--Need for Supportive Housing for Persons With Disabilities

in the Area To Be Served, Extent to Which Sponsor Has Site Control,

Suitability of Site and the Design of the Project

Exhibit 4: This exhibit requires the applicant to (1) Identify the

proposed population and evidence demonstrating demand for the project;

(2) describe the project, including the building design and whether or

not the design will promote energy efficiency, (3) submit a supportive

services plan describing the supportive services needs, the manner in

which the services will be delivered, sources of funds to cover the

cost of services with a certification from the local entity that the

services are well designed; (4) justify any request to exceed the

project size limits; (5) provide information about the proposed site

(including environmental condition of the site) with evidence of site

control or at least identification of a site and proper zoning; and (6)

submit a copy of Form HUD-92013E, Supplemental Application Processing

Form (OMB 2502-0232) showing the services to be provided.

Information relative to the need for the housing, proposed

residents, supportive services, and project design is necessary to

determine (1) Whether [[Page 29637]] the applicant is proposing to

serve an eligible population, whether the applicant accurately assessed

the needs of the proposed residents, if the plan for the provision of

services is sufficient and will meet the needs of the residents since

supportive services are critical to the success of projects for the

disabled; and (2) that a project of the type proposed will accommodate

the needs of the disabled residents, will be compatible with and

integrated into the surrounding neighborhood, is marketable, and that

any increased number of persons to be served (above the administrative

limitations) is necessary for the economic feasibility of the project.

Information relative to the site is evaluated to determine that the

site is acceptable from an environmental and locational standpoint for

the intended use and that the applicant has control of the site or has

identified a site for which it feels it can gain control of within six

months from the fund reservation, if selected. It also is reviewed to

assure that proper zoning can be obtained. For sites identified but not

under the applicant's control, the applicant provides a narrative

description of the location and surrounding area which will assist HUD

in determining the suitability of the site before the applicant

purchases it.

Also, if an applicant proposes to develop and operate a group home

to be licensed as an Intermediate Care Facility for persons with

disabilities, then the applicant must provide additional information

regarding its commitment for Medicaid funding along with a commitment

that the State agency accepts responsibility to pay the tenant's

contribution towards rent in the Medicaid payment. HUD reviews this

information to assure that the group home (considering both services

and building design) will operate as a housing facility rather than be

medical in nature and that the residents will be enrolled in a

structured program outside the home for a period of time.

Information with respect to the promotion of an agency efficient

building design will be used to assist HUD in determining compliance

with the energy efficiency standards in accordance with Section 109 of

NAHA.

The information required under this exhibit is in accordance with

Section 811 of the NAHA.

(d) Part 4--General Application Requirements and Certifications

Exhibit 5: To assist HUD in determining if the applicant is over-

committed, the applicant submits for HUD's review a list of all Section

202 and Section 811 applications submitted for the current fiscal year

funding round, and a list of projects previously funded which have not

finally closed. This is information that an applicant that participated

in a prior year can easily update, if necessary, and resubmit for the

current year.

Exhibit 6: Form HUD-2880, Applicant/Recipient Disclosure/Update

Report (OMB No. 2525-0101), is required by Section 102 of the HUD

Reform Act of 1989. The applicant uses this form to disclose any other

government assistance that may be provided in connection with the

proposed project as well as to report its Social Security Numbers or

Employee Identification Numbers. This information assists HUD to ensure

that the applicant does not receive more assistance than is necessary

to develop and operate the proposed project.

Exhibit 7: This exhibit is a certification, to be completed by the

Section 202 applicant, that the application was submitted to the State

for its review or that the State was contacted and it was determined

that a State review was not required. This certification is required by

OMB in accordance with Executive Order 12372.

Exhibit 8: This is a Guide Form, titled Project Data on Occupancy,

Displacement and Real Property Acquisition (Form HUD-40087), and its

use is optional. An applicant, at its option, may use the form to

report information relative to the acquisition of property and the

relocation or displacement of occupants in cases where the applicant

proposes to acquire property which is occupied. This information is

consistent with the requirements of the Uniform Relocation Assistance

and Real Property Acquisition Act of 1970, as amended.

In granting the previous approval to collect information under

2502-0462, OMB conditioned the approval on the correction of certain

forms, one, of which, was Form HUD-40087. OMB specified that the

Department must accurately reflect the burden in the disclosure

statement. This form is exempt from the burden disclosure requirements

because it is only a ``guide'' form to be used at the option of the

applicant. It is only included in the application package as a

convenience to the applicant. The applicant is not required to submit

this form. The information regarding any relocation activities may be

submitted in narrative form.

Exhibit 9: Information requested on Form SF-424, Application for

Federal Assistance (OMB No. 0348-0043), serves a dual purpose. Pursuant

to Executive Order 12372, the applicant submits this form to the State

which is used by the State to initiate the intergovernmental review

process. The applicant also uses the form to certify that it is not

delinquent on any Federal debt which is an OMB requirement.

Exhibit 10. The applicant provides the Form SF-LLL, Disclosure of

Lobbying Activities (OMB No. 0348-0046), to indicate if other than

federally appropriated funds have been or will be used to lobby the

Executive or Legislative branches of the Federal Government pursuant to

Title 31 U.S.C., Section 1352.

Exhibit 11. This exhibit represents the consolidation of the

following 12 certifications into a single document, thereby requiring

one signature for all. These certifications are required by

governmental actions, Executive Orders, etc. and are used to review the

applicant's intent to comply with the (1) Civil Rights, Fair Housing

and Equal Opportunity laws; (2) Drug-Free Workplace Act; (3) HUD's

design and cost standards including the Uniform Federal Accessibility

Standards and Section 504 of the Rehabilitation Act of 1973; (4)

acquisition and relocation requirements of the Uniform Relocation

Assistance and Real Property Acquisition Policies Act of 1970, as

amended; (5) requirement to form an Owner after issuance of the capital

advance; (6) requirements of the Lead-Based Poisoning Prevention Act;

(7) Davis-Bacon Act Provisions; (8) requirement that the project be

consistent with the Consolidated Plan for the appropriate jurisdiction;

(9) Flood Disaster Protection Act of 1973; (10) National Environmental

Policy Act; (11) Anti-Lobbying Prohibition; and (12) requirement

regarding the truth and accuracy of the information contained in the

application.

Included in this exhibit also is a guide format for use by the

public official responsible for developing the Consolidated Plan to

indicate whether or not the proposed activities are consistent with the

Consolidated Plan or the previous year's Comprehensive Housing

Affordability Strategy (CHAS) if the Consolidated Plan has not yet

started.

In the absence of collecting the above information, the Department

would not be able to assess the worthiness of the applications,

determine whether the facilities and services meet statutory and

regulatory requirements, or make sound judgments regarding the

potential risk to the Government.

3. Each fiscal year (near the beginning of the funding cycle), HUD

issues a Notice pertaining to application [[Page 29638]] submission

requirements. During this process, the Department reevaluates the

application submission requirements to identify ways to reduce the

burden to the applicants. Because the Section 811 program had changed

drastically when it was converted to a capital advance program, the

Department made major revisions to the application package at that

time. More recently, in response to feedback from the professionals in

the field of developing Section 811 housing, the Department made

further major changes to streamline the program. This has resulted in

less paperwork for the applicants. Therefore, in revising the

application package, consideration was given to modifying it to require

the minimum of information needed by HUD to conduct the program in

accordance with the NAHA, statutory and regulatory requirements and, at

the same time, to establish a selection system which is equitable to

all participants.

The information described under Item 2 above represents the minimum

information acceptable to HUD. Further, as mentioned in Item No. 2

above, many applicants will experience a tremendous relief from

paperwork burden because they will not have to spend time preparing

``new'' information to complete an exhibit. In some cases, those

applicants that have participated in this program in the past will be

able to utilize previously submitted information.

4. No duplication exists, as there are no other forms or exhibits

used for the purposes specified under Item 2 herein. Individual

applications are evaluated and rated by HUD on the merits of the

responses submitted with the application. Each application is unique.

The information contained in each application relates to a particular

applicant proposing a specific project, design, site, etc., and, as

such, the information collected from applicants will be significantly

different per application.

Also, the Department implemented a new requirement which relieves a

previously funded applicant of the burden of submitting certain

documents (e.g., the organization's Articles of Incorporation, By-Laws

and IRS tax exemption ruling). Further, since FY 1991 when the program

was converted to a capital advance program, HUD has been reviewing and

modifying the application submission requirements to assure that only

necessary information is being requested of applicants. HUD has taken

into consideration suggestions made by the private sector in modifying

the application submission requirements.

5. Due to the highly competitive nature of the Section 811 program,

the application submission requirements were developed in a way to

minimize the front-end cost to the nonprofit applicant and only require

the minimum amount of information needed in HUD's evaluation. This is

important due to the fact that only a small percentage of the universe

of applications received ultimately get selected. For example, although

applicants may still obtain the services of a housing consultant,

information on the consultant is no longer required to be submitted at

this stage. HUD review and approval of the consultant will be done at a

later stage and only for those projects which are ultimately selected

for funding.

Also, eliminated at the fund reservation stage is the submission of

Form HUD-92530, regarding the applicant's previous participation in HUD

programs and Form HUD-92013 Supplement, Supplement to Application for

Multifamily Housing Project. The submission and review of these forms

have been deferred to a subsequent processing stage. Applicants no

longer have to submit sketches of the site plans which included typical

unit and floor plans, making it unnecessary for an applicant to have to

obtain input from an architect at this stage. Other major documents

recently eliminated at this stage are the applicant's financial

statements and a narrative description of the applicant's financial

history. The elimination of these documents will result in a tremendous

relief of paperwork burden to small and minority applicants.

The Department has consolidated several of the certification forms

into a single document for the applicant's convenience.

Also, the Department has prepared sample Application Packages which

include all the required forms and materials necessary to put together

an Application Package. The sample Application Packages will be made

available to all applicants well in advance of the deadline date for

submission of applications.

Local HUD Offices are required to conduct workshops to provide

needed guidance to applicants in preparing the application packages. In

an effort to assist the small sponsoring organizations as well as

first-time applicants, HUD staff also conducts pre-workshops especially

designed for them.

In addition to the above, HUD recognizes that some applicants, who

are sincerely interested in providing housing, may lack the staff and

other resources to develop such a project. Therefore, in recognition of

the need for these applicants to use the services of professional

housing consultants, HUD permits a reasonable fee for consultant's

services to be included in the Section 811 capital advance. The

consultant may assist the applicant in preparing the Application

Package to request a Section 811 Capital Advance and throughout the

final development of the project should the applicant be selected for

funding.

6. Currently, the information collection activities occur annually

to coincide with the receipt of annual fiscal year appropriations for

the program. Each year, Congress appropriates funds with which to

select new applications. HUD, in turn, invites applications and makes

selections based on the funds available for the year. These funds are

normally exhausted at the end of each fiscal year. The Section 811

regulations require HUD to publish a Notice of Fund Availability (NOFA)

in the Federal Register when such funds are made available by Congress.

The regulations also require HUD to specify a deadline date for receipt

of applications. In order for HUD to accept an application, the

application must have been submitted in response to a specific NOFA and

Invitation requesting such an application and by the closing date

stated in the Invitation. As the funding cycle for the program occurs

annually, including the Invitations for Applications, it is not

possible to require the submission of this information less frequently.

7. Part 5 CFR 1320.6 lists 10 items that OMB will not approve for

information collection, unless it can be demonstrated that the

collection of information is necessary to satisfy statutory

requirements or other substantial need.

This request for information is consistent with the guidelines

under 5 CFR 1320.6 with the exception of one item. Subparagraph (c) of

the above CFR indicates OMB's disapproval of requiring respondents to

submit more than an original and two copies of any document. HUD

requires applicants to submit an original and four copies of the

Section 811 Application. The changes to the application submission

requirement resulted in a better organized Application Package. As the

program is administered on an annual basis, processing of the

application must be accomplished in an expeditious manner in order that

decisions regarding selections of applications and reservations of

funds can be made prior to the end of the fiscal year (September

30). [[Page 29639]]

During the course of processing the applications, eight HUD

technical disciplines are involved in the review process: staff from

Valuation, Architectural and Engineering, Housing Management, Fair

Housing and Equal Opportunity, Economic and Market Analysis, Community

Planning and Development, the Multifamily Housing Representative and

the Office Counsel. These HUD staff members are required to comment on

the approvability of each application received.

Because of the (1) Various HUD staff involved in the review

process, (2) tremendous volume of applications received each fiscal

year, and (3) the commitment to obligate funds by the fiscal year-end,

HUD requires concurrent reviews of the applications by the

aforementioned HUD staff to assure prompt processing with minimum

interruption. For example, additional information or clarification is

often needed from applicants to permit HUD to make a fair and complete

review. The requirement for simultaneous reviews promotes a more

efficient, time-saving method to provide applicants a single

notification regarding all deficiencies noted as a result of a full

review from each HUD technical discipline.

HUD needs more than an original and two copies of the application

in order to carry out the above procedures for concurrent reviews.

8. This OMB request is the result of on-going telephone

conversations, meetings and workshops HUD staff recently held with

Section 811 nonprofit Sponsors, housing consultants, disabled residents

and potential residents, and other interested HUD program staff. The

Department consulted with various housing professionals representing

the types of Sponsors that generally participate in the Section 811

program; i.e., minority organizations, small organizations and

nonminority organizations. Following is a list of some of the housing

professionals (Housing Consultants and Section 811 Sponsors) that HUD

consulted with by telephone, meetings and/or workshop sessions:

Judy Ponds, Housing Services, 1234--4th Street, SW, Washington, DC

20024, (202) 488-1639

Nick Smyrnis, AHEPA Management Corp., 7202 N. Shadeland Ave.,

Indianapolis, IN, (317) 845-3410

Sam Simmons, National Center on Black Aged, 1424 K Street, NW, Suite

500, Washington, DC 20005 (202) 637-8400

Mark Olshan, B'nai B'rith, 1640 Rhode Island Avenue, NW, Washington, DC

20036, (202) 857-6580

Alan Patricio, P.O. Box 53274, Atlanta, GA 30355, (404) 237-9877

Joe Howell, 815--15th Street, NW, Washington, DC 20005, (202) 393-3044

Randy Speaker, Bank IV Towers, 534 Kansas Avenue, Suite 910, Topeka, KS

66603, (913) 232-8338

Jane Graf, Mercy Charities Housing, 1028A Howard Street, San Francisco,

CA 94103, (415) 487-6825

Harrison Joseph, Nat'l Baptist Convention, 338 Washington Street,

Newark, OH 43005, (614) 258-7998

Tom Slemmer, Nat'l Church Residences, 2335 N. Bank Drive, (614) 451-

2151

Don Redfoot, American Assn. for Retired Persons, 601 E Street, NW,

Washington, DC 20049, (202) 434-2277

Jose Fabregas, CODEC, Inc., 300 SW 12th St., Suite A, Miami, FL 33130,

(305) 642-1361

Additionally, inasmuch as this OMB request is submitted in

accordance with 24 CFR 890.265, as amended, the promulgation procedure

for regulations allows sufficient participation by outside agency

contacts to review and comment on the application materials.

9. HUD does not assure confidentiality.

10. The application submission requirements do not contain any

sensitive questions.

11. Provide estimates of annualized cost to the Federal Government

and to the respondents.

(a) Estimate of Cost to Federal Government: Inasmuch as the

majority of the work involved in reviewing the applications is

performed at the local HUD Office level, the significant costs

attributable to the promulgation of the application requirements will

be the cost involved in reviewing the information submitted by

applicants. Outstanding program procedures require the following

reviews performed by the various local HUD Office staff. The cost to

the Federal Government is based on an average salary at the GS-12

level, except for the Office Counsel and the Clerical Assistant which

is at the GS-14 and GS-7 levels, respectively. Also, included is the

cost associated with the preparation and printing of the HUD

Application Package for use by the applicants in putting together their

individual Application Packages.

Reviews

------------------------------------------------------------------------

Total time

per

HUD staff application Hourly rate Total

(hours)

------------------------------------------------------------------------

Multifamily housing

representative................ 3 $22 $66

Architectural.................. 1 22 22

Valuation...................... 3 22 66

Economic and market analysis... 1 22 22

Fair housing and equal

opportunity................... 1 22 22

Housing management............. 1 22 22

Community planning and

development................... 1 22 22

Field office counsel........... 3 31 93

Clerical assistant............. 0.5 13 6.5

----------------------------------------

Total staff time--per

application............. 14.5 ........... 341.5

Total annual number of

responses............... ............ ........... * x 400

----------------------------------------

Total annual staff time

cost to government...... ............ ........... 136,600

Other Cost for All

Applications:

Printing/reproducing HUD

application package (400

copies)................... ............ ........... 500

Postage (400 copies x

$3.00).................... ............ ........... 1,200

Multifamily clearinghouse

(mailing services)........ ............ ........... **5,000

----------------------------------------

Total other cost......... ............ ........... 6,700

Total estimated annual

cost to government...... ............ ........... 143,300

------------------------------------------------------------------------

*See Item 12 below for an explanation.

**The Department now utilizes the services of a Multifamily

Clearinghouse to maintain a national mailing list for Section 811

Applications and to mail out the applications. Most applicants will

receive their packages through the mail. However, some applicants will

be handed copies of the Application Packages at the HUD-held

workshops.

[[Page 29640]] (b) Estimate of Cost to Respondents: In estimating

the cost to the applicants, it should be noted that in order to comply

with the revised program requirements, the applicant may retain an

attorney. In addition, as many nonprofit organizations do not have in-

house expertise or staff to develop an application, a housing

consultant is usually hired by the applicant. The applicant is a

nonprofit organization and as such provides its services at no cost. In

view of this, the following illustrates the estimated cost to the

public:

Housing consultant ($40 per hour)............................ $1,076

Applicant (sponsor).......................................... (**)

Attorney..................................................... 1,000

----------

Total cost per respondent.............................. $2,076

Total annual number of responses....................... * x 400

----------

Total estimated annual cost for all applicants......... 830,400

*See Item 12 below for an explanation.

**Probono.

This reflects a slight decrease in the cost per applicant from the

previous OMB submission. Beginning this year, the Department is

requiring the applicant to include as part of Exhibit 4 information

about the environmental condition of the proposed site. An adjustment

was made to take into consideration the additional time and cost that

will be incurred by the applicant to inspect the proposed site for this

purpose. Also, an adjustment was made to the burden hour time

associated with Form HUD-92013E, Supplemental Application Processing

Form--Housing for the Elderly, to comply with OMB's conditions for

approval. However, these adjustments (increases) are offset by the

reduction of burden hour time associated with the elimination of the

financial documents.

It should be noted that many professionals work on a retainer basis

and if the application does not obtain HUD approval, they do not

collect a fee. The figures presented above are based on our own

experience, as well as consultation with housing professionals in the

field of housing persons with disabilities.

12. Although for Fiscal Year 1994 HUD received 383 Section 811

applications, it is anticipated that because the Department has further

simplified the application submission requirements coupled with the

fact that the program provides capital advances in lieu of loans, the

number of applicants will slightly increase beyond the Fiscal Year 1994

level. It is anticipated that the level of activity will average 400

applications annually over the next three years. Although the program

funding cycle is on an annual basis, each prospective applicant could

submit more than one application. However, our estimate of time

involved is based on one application per applicant.

To assist the applicant in putting together an Application for a

Fund Reservation, the Department developed an Application Package

consisting of the information, forms and materials needed by the

applicant to assemble an application. The HUD Application Package,

which will be made available to all applicants, is expected to aid in

reducing the applicant's and housing consultant's time and effort in

putting together an application.

Given the above and using the categories presented in the

illustration in Item 11(b) above, the estimated amount of hours

involved in developing a complete application submission is as follows:

------------------------------------------------------------------------

Hours

------------------------------------------------------------------------

Housing consultant............................................ 26.9

Attorney...................................................... 2.0

Applicant (sponsor)........................................... 12.3

---------

Total................................................... 41.2

------------------------------------------------------------------------

These figures are based on HUD's experience, as well as

consultation with housing professionals in the field of housing persons

with disabilities.

This reflects a decrease of 4 hours from the previous OMB

submission (from 45.2 to 41.2 hours). This represents the net result of

adjusting the burden time associated with Form HUD-92013E, the exhibit

regarding project information to include an environmental review of the

site by the applicant and the elimination of the applicant's financial

documents.

A Tabulation of Annual Reporting Burden is shown in Table 1. It

should be noted that Exhibits 4, 6, 9 and 10 already have OMB

clearances as shown in the Table. These information collections are

common to many of our programs and our request for clearance was

calculated to include the burden associated for all program uses. The

burden shown in Table 1 for Exhibits 4, 6, 9 and 10, therefore,

reflects our estimate applicable to the Section 811 program. No

adjustment to the previously cleared Exhibits 4, 6, 9 and 10 is

required.

13. The primary reason for the increase of 1,160 in the total

burden hours (from 13,800 to 14,960) is due to a projected increase in

the total number of applicants expected to submit applications this

fiscal year (from 350 to 400). Also, an adjustment was to reduce the

applicant's burden time associated with the submission of financial

documents since this requirement has been eliminated. A minor

adjustment to the time reported for preparing Exhibit 4 was made to

include additional time an applicant will need to perform an

environmental inspection of the proposed site. In the past, most

applicants would generally inspect the site to determine its

acceptability for developing a project for persons with disabilities,

which included inspecting it for potential environmental problems.

However, because the Department is specifically requiring that an

environmental inspection be performed, we have adjusted the applicant's

burden time to include this function. Further, an adjustment was made

to Form HUD-92013E to provide for the 8 hour burden time as reported in

the disclosure statement on the form. Although there is a modest

increase in the total burden hours for all applicants, the net effect

of the above adjustments (which includes the reduction of time

associated with the elimination of the financial documents) resulted in

a slight reduction in the burden time per applicant.

15. Not applicable.

B. Collections of Information Employing Statistical Methods

Not applicable.

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[FR Doc. 95-13602 Filed 6-2-95; 8:45 am]

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