Notice of Funding Availability for FY 1995; Invitation for Applications: Public Housing Development

SUMMARY: This NOFA announces the availability of FY 1995 funding, and

invites eligible public housing agencies (PHAs) to submit applications

for public housing development. Applications are limited to the

following Categories:

(1) Replacements for demolition/disposition subject to section 18

of the United States Housing Act of 1937 (USHA);

(2) Replacements for homeownership transfers under the HOPE I

Program, and homeownership sales under section 5(h) of the USHA;

(3) Headquarters Reserve: Unforeseen housing needs resulting from

natural and other disasters; housing needs resulting from emergencies,

as certified by the Secretary, other than such disasters; housing needs

resulting from the settlement of litigation; and housing in support of

desegregation efforts; and

(4) ``Other'' applications.

All successful applicants for categories (3) and (4) above will be

required to participate in the Family Self-Sufficiency (FSS) program,

unless granted an exception. This NOFA also provides instructions

regarding the preparation and processing of applications. The

Department is also encouraging applicants to form ``partnerships''

consisting of cooperative arrangements with community-based entities to

provide housing, and is encouraging PHAs to engage in ``mixed income''

development (wherein public housing units are integrated within market-

rate developments). This is being done by providing additional points

for such efforts with respect to ``other'' applications (see sections

III.E.5 and IV.E. of this NOFA).

This NOFA is not applicable to the Indian housing program.

DATES: Applications are due at the HUD Field Office on or before 3

p.m., local time, on July 31, 1995. See Section III of this NOFA for

further information on application submission. If an application is

mailed to the Field Office, the PHA must clearly write ``PUBLIC HOUSING

DEVELOPMENT APPLICATION'' on the outside of the envelope and obtain a

return receipt indicating the date and time of delivery. Hand delivered

applications shall be date/time stamped and initialed by the employee

receiving the application upon delivery.

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

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

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

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

brought about by unanticipated delays or delivery-related problems. In

particular, PHAs intending to mail applications must provide sufficient

time to permit delivery on or before the deadline date. Acceptance by a

Post Office or private mailer does not constitute delivery. Facsimile

(Fax), COD, and postage due applications will not be accepted.

FOR FURTHER INFORMATION CONTACT: Kevin Emanuel Marchman, Deputy

Assistant Secretary, Office of Distressed and Troubled Housing

Recovery, Department of Housing and Urban Development, 451 Seventh

Street, SW., Room 4138, Washington, DC 20410. Telephone (202) 401-8812

(Voice) or (202) 708-4594 (TDD). (These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection requirements contained in this NOFA

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

and have been assigned OMB control numbers 2577-0033 and 3577-0036.

I. Introduction

A. Authority

Sections 5 and 23 of the United States Housing Act of 1937 (USHA)

(42 U.S.C. 1437c and 1437u); and sec. 7(d) of the Department of Housing

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

Public housing development regulations are published at 24 CFR part

941; demolition/disposition regulations are published at 24 CFR part

970; section 5(h) regulations are published at 24 CFR part 906.

The regulations for the public housing FSS program are codified at

24 CFR part 962.

The Notice of Program Guidelines for the HOPE-1 program was

published on January 14, 1992 (57 FR 1522) and codified as 24 CFR

Subtitle A, Appendix A. The Catalog of Federal Domestic Assistance

Program number is 14.850.

B. Fund Availability

The Department of Veterans Affairs and Housing and Urban

Development and Independent Agencies Appropriation Act of 1995 [(Pub.L.

103-327, approved September 28, 1994) (1995 Appropriations Act)] makes

available $598 million of budget authority for Public Housing

Development under section 5(a)(2) of the USHA. Some of the appropriated

funds for annual contributions are to be derived from the recapture of

prior year obligations or funds carried over from last year. Other

adjustments within the Annual Contributions Account in 1995, including

the addition of carryover funds, abate somewhat the impact of these

factors. After these adjustments the amount available is $600,278,866.

Of that amount, $74,126,542 already has been obligated to meet

litigation needs, including replacement housing related to litigation.

The Department expects to reserve or has reserved an approximately

additional $145 million to meet litigation needs, including replacement

housing related to litigation, or to redress mistakes in prior year

awards. This would leave approximately $381 million available for

commitments under this NOFA. The Department reserves the right to

reserve additional funds prior to awards made under this NOFA for

replacement housing proposals which clearly are essential to ending the

isolation of large family public housing communities.

The Senate and the House of Representatives have passed legislation

which would rescind part or all of the funding made available for

public housing development by the 1995 Appropriations Act. The

President vetoed this legislation on June 7, 1995. In the event

rescissions become law, the Department will publish prompt notice of

the impact on this NOFA.

Subject to any changes resulting from enactment of rescission

legislation, the Department will make available at least $100 million

for ``other'' applications. Up to .67 percent of the appropriated

amount (up to $4,006,600) has been set aside for technical assistance

and inspections. The Department expects all of the remaining funds to

be needed and used for replacement housing (categories 1 and 2 above).

Additional funds may be made available for ``other'' applications if

the Department determines that funds remain after replacement housing

and Headquarters Reserve needs are met. For additional details see the

next sections below.

[[Page 31843]]

C. Fund Assignments

Section 213(d) of the Housing and Community Development Act of 1974

(HCD Act of 1974) requires that funds be allocated on a fair share

basis, except for (a) amounts identified as Headquarters Reserve and

(b) amounts determined incapable of geographic allocation.

1. Headquarters Reserve

Threshold-approvable applications for housing resulting from

unforeseen housing needs resulting from natural and other disasters;

housing needs resulting from emergencies, as certified by the

Secretary, other than such disasters; housing needs resulting from the

settlement of litigation; and housing in support of desegregation

efforts shall be assigned Headquarters Reserve funding if available.

(Headquarters Reserve amounts are limited in accordance with section

104 of the Department of Housing and Urban Development Reform Act of

1989 (Pub.L. 101-235, approved December 15, 1989), to five percent of

the financial assistance that becomes available under the USHA and

section 101 of the HUD Act of 1965. Thus, Headquarters Reserve funding

decisions will be made by Headquarters and may affect the distribution

of grant authority shown above.)

2. Fair Share

Subject to changes which may result from enactment of a rescission

law, which could affect the requirement to fair share funds, at least

$100 million will be fair shared to approve category 4 (``other'')

applications. These fair share funds will be distributed to Areas

(formerly Regions) on the basis of the following fair share factors,

which reflect the most recent decennial census data as to population,

poverty, housing overcrowding, housing vacancies, amount of substandard

housing, and other measurable conditions. Any unused assignments will

be redistributed, proportional to need, among remaining Areas with

approvable unfunded ``other'' applications. The Department may fair

share additional funds later in the fiscal year to fund additional

approvable ``other'' applications submitted in response to this NOFA if

the Department determines that such funds will not be required for

replacement housing and Headquarters Reserve needs.

Fair share and Headquarters Reserve funds are also subject to the

requirement of section 213 of the HCD Act of 1974 that not less than 20

percent nor more than 25 percent of the HUD aggregate program funds

covered by the statute be allocated for use in nonmetropolitan areas.

Therefore, public housing development fund allocations to select

``other'' applications may be modified before assignment in order to

ensure Departmental compliance with this statutory and regulatory

requirement (see 24 CFR 791.403(a)).

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

Fair-share

Area factors (%)

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

New England................................................ 6.5

New York/New Jersey........................................ 18.1

Mid-Atlantic............................................... 8.8

Southeast.................................................. 13.8

Midwest.................................................... 15.7

Southwest.................................................. 8.3

Great Plains............................................... 3.8

Rocky Mountain............................................. 2.6

Pacific/Hawaii............................................. 18.5

Northwest/Alaska........................................... 3.9

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

Total.................................................. 100.0

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

3. Non-Fair Share

The Department expects that there will be a substantial demand

during the fiscal year for Category 1, replacements for demolition/

disposition subject to section 18 of the USHA, and category 2,

replacements for homeownership transfers under the Hope I program and

homeownership sales under section 5(h) of the USHA. This is projected

to occur based on applications for demolition/disposition and

homeownership replacement already received, because the Department and

a number of PHAs are placing additional emphasis on the demolition and

replacement of obsolete family housing which cannot provide a suitable

living environment (e.g., obsolete family highrise developments or

partial demolition of excessively dense, large and isolated lowrise

developments), and because the future availability of a separate

allocation of public housing development funding for replacement

housing is uncertain. The Department will make all remaining public

housing development funds, after subtracting funding for the

Headquarters Reserve, $100 million for ``other'' applications if these

applications are still to be funded (see above) and $4,066,600 for

technical assistance, available as needed for categories 1 and 2.

Various conditions regarding commitment of funding for replacement

housing are listed in Section III of this NOFA below.

4. Remaining Balances

Any residual funds not reserved under categories 1, 2, 3, and 4 as

described above will be added to the funds to be fair shared for any

priority ``other'' approvable applications as determined by the

Department.

D. Conformity to Regulations and NOFA Requirements

While conformity with 24 CFR part 941 is required, this funding

effort is also subject to the additional specific requirements,

consistent with the regulations, that are set forth in this NOFA.

Applicants also should consult Handbook 7417.1 REV-1, and the FSS

regulations codified at 24 CFR part 962. The selection criteria

specified in this NOFA may not be added to or modified.

II. Application Process Overview

A. General

All applications shall be submitted to the appropriate Field Office

by the application deadline date. The Field Office shall screen each

application for completeness and will provide the PHA a 14-day

opportunity to furnish missing technical information or exhibits, or to

correct technical mistakes. Each application will then be subjected to

a ``pass/fail'' threshold examination. Approvable category 1, 2, and 3

applications will be reported to Headquarters for further action.

Category 4 passing applications will be forwarded for rating to

Rating Panel(s). One or more Rating Panels, comprised of HUD Field

representatives appointed by Headquarters, shall be convened for the

purpose. Category 4 applications will be rated by the Rating Panel(s)

based on Field Office analyses. Headquarters will determine the funds

required to approve category 1, 2, and 3 applications and select

category 4 applications based on Rating Panel ratings and

recommendations.

B. Categories of Applications

Each application must be for one of the following categories:

1. Replacement units for demolition/disposition approvals, subject

to section 18 of the USHA (Category 1);

2. Replacement units for HOPE I or section 5(h) homeownership

transfers or sales (Category 2);

3. Public housing to be funded from Headquarters Reserve (Category

3); or

4. ``Other'' development applications intended to increase the

public housing stock (Category 4). Category 4 applicants are limited to

no more than one application per locality, which may cover multiple

sites.

C. Application Approval

1. All category 3 approvable applications will be funded, to the

extent the required funds do not exceed statutorily set limits.

2. If there are insufficient funds to fund all category 1 and

category 2 approvable applications, the

[[Page 31844]]

Department shall endeavor to fund category 1 and category 2

applications meeting the following descriptions: replacement related to

litigation settlements or court orders, if the necessary funds have not

yet been reserved; replacement for emergency demolition/disposition, if

any; replacement for demolition/disposition to complete treatment of

sites partially funded under the Urban Revitalization Demonstration

Program authorized by the HUD Appropriations Acts of 1993, 1994 and

1995 or partially funded for comprehensive modernization or major

reconstruction activities; replacement for obsolete family highrises;

replacement for essential public housing density reduction at large

family lowrises or as part of other efforts to end the isolation of

large family public housing communities; prior replacement housing

obligations; and category 2 replacement applications for homeownership,

particularly where the transfer of property will occur this fiscal year

and the units in question have not yet been replaced. Of these

categories, replacement related to litigation settlements or court

orders will be funded first.

3. Category 4 (other) applications will be funded up to the fair

share amounts for each Area.

4. Any funds not required for categories 1, 2, or 3 or initially

allocated to categories 4 or technical assistance as outlined above

will be utilized for any additional ``other'' approvable applications

as determined by the Department.

D. Disclosure of Information

The Department of Housing and Urban Development Reform Act of 1989

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

24 CFR part 4); civil penalties related to advance disclosure are set

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

shall not occur until the Congressional notification process is

completed.

E. Records Retention

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

Office analyses, application scoring sheets, and notifications of

selection/non-selection) will be retained in the appropriate Field

Office for five years, and be available for public inspection in

accordance with 24 CFR part 12.

III. Application Requirements

A. All Applicants

Each application must specify the housing type (new construction,

rehabilitation, or acquisition), development method (conventional,

turnkey, or acquisition), and community for which the project is

proposed. No more than one housing type, development method, and

locality may be proposed for an application. Each such application

shall consist of an original and two copies, and must include the

following:

1. Cover Letter. The cover letter must identify the category of

application (see Section II.B. of this NOFA for a description of the

categories; see also subparagraph 6 of Section III.A of this NOFA).

2. Application-Form HUD 52470. The application must be signed by

the person authorized and dated and include the information as

specified in the form.

3. Evidence of Legal Eligibility. If it has not previously done so,

the PHA must document that it is legally organized. A current General

Certificate (Form HUD 9009) must be submitted.

4. Cooperation Agreement (Form HUD 52481). The PHA must document

that the number of units requested, along with units in management and

other units in development, are covered by Cooperation Agreements.

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

Under this resolution, the PHA agrees to comply with all requirements

of 24 CFR part 941 (see also paragraph 6 of this Section III.A). By

executing the PHA Resolution, the PHA also certifies that it will

comply with Title II of the Americans with Disabilities Act (42 U.S.C.

12131) and the implementing regulations at 28 CFR part 35.

6. Front-End Funds. If front-end funds are being requested, the PHA

must so state in its cover letter; should the PHA desire the project

only if front-end funds can be approved, the PHA must so state. The

Form HUD-52471 (PHA Resolution) must refer to the request, and include

Form HUD-52472 (Local Governing Body Resolution/Transcript of

Proceedings) approving the request.

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

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

8. Certification for Contracts, Grants, Loans and Cooperative

Agreement (Form HUD-50071). In accordance with section 319 of the

Department of Interior and Related Agencies Appropriations Act for

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

implementing regulations at 24 CFR part 87, the PHA must certify that

no federally appropriated funds have been paid or will be paid, by or

on behalf of the PHA, for influencing or attempting to influence an

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

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

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

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

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

9. Form SF-LLL, Disclosure of Lobbying Activities. Also in

accordance with the Byrd Amendment and the regulations at 24 CFR part

87, the PHA must complete and submit Form SF-LLL if funds other than

federally appropriated funds have been paid or will be paid by or on

behalf of the PHA for influencing or attempting to influence an officer

or employee of any agency, or a member of Congress in connection with

the awarding of any Federal contract, the making of any Federal grant

or loan, the entering into of any cooperative agreement, and the

extension, continuation, renewal, amendment, or modifications of any

Federal contract, grant, loan, or cooperative agreement.

10. Disclosure of Government Assistance and Identity of Interested

Parties (Form HUD 2880). The PHA must submit the Applicant/Recipient

Disclosure/Update Report (Form HUD-2880) in accordance with the

requirements of 24 CFR part 12, subpart C.

11. Family Self-Sufficiency (FSS). Section 23 of the USHA requires

PHAs that are awarded new public housing units to implement an FSS

program. Applicants for Category 3 (Headquarters Reserve) or Category 4

(Other) funds must certify that they will comply with 24 CFR part 962,

which requires successful applicants to initiate or expand an FSS

program for the number of families that equals the total number of

units they have been awarded (unless otherwise excepted).

B. Applications for New Construction

In accordance with section 6(h) of the USHA, new construction may

be engaged in only if the PHA demonstrates to the satisfaction of the

Secretary that the cost of new construction in the neighborhood where

the PHA determines the housing is needed is less than the cost of

acquisition or acquisition and rehabilitation in such neighborhood.

Therefore, every application for a new construction project

(conventional or turnkey) must be accompanied by either the information

described in paragraphs B.1 and B.3 of this section, or, at the

applicant's option, the information

[[Page 31845]]

described in paragraphs B.2 and B.3 of this section:

1. A PHA comparison of the costs of new construction (in the

neighborhood where the PHA proposes to construct the housing) and the

costs of acquisition of existing housing or rehabilitation in the same

neighborhood (including estimated costs of lead-based paint testing and

abatement); or

2. A PHA certification, accompanied by supporting documentation,

that there is insufficient existing housing in the neighborhood to

develop housing through acquisition of existing housing or

rehabilitation; and

3. A statement that:

(a) Although the application is for new construction, the PHA will

accept acquisition of existing housing or rehabilitation, if HUD

determines the PHA cost comparison or certification of insufficient

housing does not support approval of new construction; or

(b) The application is for new construction only. (In any such

case, if HUD cannot approve new construction under section 6(h) of the

USHA, the application will be rejected.)

C. Replacement Housing Applications

1. Cover Letter. For both category 1 and category 2 applications,

the cover letter must state whether the demo/dispo or transfer/sale

application (to demolish/dispose of units, or to transfer/sell units)

(hereinafter referred to as the ``underlying application'') has been

approved; the date of approval; the project number and the name of the

project being replaced; and whether it is being replaced in whole or in

part. If the underlying application was not approved at the time the

replacement housing application is filed, the cover letter must state

the date the underlying application was submitted or the estimated date

the underlying application will be submitted for consideration.

Category 1 or 2 applications will not be funded unless the underlying

application is submitted by the time funding selections are made. The

Department may make a funding award if the underlying application has

not yet been approved, if all aspects of the underlying application

other than compliance with section 412 of the Cranston-Gonzalez

National Affordable Housing Act of 1990, as amended, are approvable by

August 1, 1995.

2. Section 5(j) Certification. The PHA must certify that the units

requested are specifically required in FY 1995 either to meet the one-

for-one replacement requirement of section 18 of the USHA to replace

public housing demolition/disposition; or to meet the requirements of

section 304(g) of the USHA to replace existing public housing approved

in FY 1995 or earlier for homeownership transfer under HOPE 1, or for

sale under section 5(h) of the USHA.

3. Replacement Application Under Section 18. A PHA submitting a

replacement housing application under section 18 (category 1) must

demonstrate that the replacement units, alone or together with other

identified replacement units, will implement the PHA's Replacement

Housing Plan submitted and approved or expected to be submitted and

approved under 24 CFR 970.11, including requirements that such units:

(a) Are for no fewer units (or portion thereof approved by HUD)

than the number of units to be demolished or disposed of; and

(b) Will house at least the same number of individuals and families

that could be served by the housing to be demolished or disposed.

4. Replacement Application for Homeownership Transfers or sales.

Applicants submitting applications to meet the requirements of section

304(g) of the USHA to replace existing public housing approved in FY

1995 or earlier for homeownership transfer under HOPE 1, or for sale

under section 5(h) of the USHA, must provide the following: a schedule,

by federal fiscal year, of the number of units previously transferred

and/or expected to be transferred consistent with the actual progress

achieved under the approved HOPE 1 or Section 5(h) plan; a listing of

the number of replacement housing units already received and accounted

for under all the allowable replacement housing options as well as the

balance of units not yet replaced; and the number of public housing

development units and/or Section 8 units now being requested for

homeownership replacement. (The Section 8 units will not be awarded

under this NOFA.)

5. Statement Regarding Consistency with HUD Priorities.

Appropriations for replacement housing are encouraged to include a

statement describing consistency of the application with the

replacement housing categories described in paragraph II. C. 2. of this

NOFA.

6. Impact of Pending Legislation. The Congressionally approved

rescission bill includes a proposal to repeal replacement housing

requirements for underlying applications approved on or prior to

September 30, 1995. In the event this proposal becomes law, the

Department will issue notice of any changes required or authorized for

replacement housing applications to be submitted in response to this

NOFA.

D. Applications for Units to be Funded from Headquarters Reserve

1. Cover Letter. A PHA submitting a category 3 application shall

identify the purpose of the application (see Section I.C.1 of this

NOFA).

2. Section 5(j) Certification. The PHA may certify that the units

requested are required to comply with court orders or directions of the

Secretary; or, as appropriate, the section 5(j) certification

applicable to category 4 (Other) applications (see Section III.E.2.

below). Court orders must be identified.

(Note: Category 3 needs typically are not fulfilled through the

application process.)

E. ``Other'' Applications

Applicants are encouraged to review the rating criteria (Section

IV.E. of this NOFA) to ensure rating factors have been addressed in the

application. ``Curable technical deficiencies'' (Section IV.B. of this

NOFA) relate only to items that would not improve the substantive

quality of applications relative to rating factors. A PHA may file only

one application per locality under this category.

1. Cover Letter. Applicants for ``other'' public housing

development units (category 4), must state whether they will accept

fewer units than applied for. Refusal to accept fewer units may result

in an application not being selected if funds are not sufficient for

the full number of units.

2. Section 5(j) Certification. The PHA must certify to one of the

following, pursuant to section 5(j) of the USHA (select E.2.a or

E.2.b.):

(a) The units requested (limited to 100 or fewer) are needed for

family housing to satisfy demands not being met by the section 8

existing or voucher rental assistance programs; or

(b) 85 percent of the PHA's dwelling units (select (1), (2), or

(3)):

(1) Are maintained in substantial compliance with the section 8

housing quality standards (24 CFR 882.109); or

(2) Will be so maintained upon completion of modernization for

which funding has been awarded; or

(3) Will be so maintained upon completion of modernization for

which applications are pending that have been submitted in good faith

under section 14 of the USHA (or a comparable State or local government

program), and that there is a reasonable expectation, as determined in

writing by HUD, that such application would be approvable; or will be

so maintained upon completion of modernization under the Comprehensive

Grant program.

3. Funding Preference in Accordance With Section 6(p). Section 6(p)

of the USHA requires HUD to provide a

[[Page 31846]]

funding preference for applications in areas with an inadequate supply

of housing for use by low-income families (i.e., a ``tight'' housing

rental market). The implementation of this preference shall be in

accordance with the process described in Section V.A.2 of this NOFA.

(a) The PHA must furnish data relative to rental vacancy rates in

the market area where the project is proposed. This data should include

a description of the data sources and methods used to obtain survey

information. (It is recommended that PHAs consult with local community

development agencies relative to their housing needs before submitting

applications under this NOFA, since most of these agencies will have

participated in the development of a Comprehensive Housing

Affordability Strategy (CHAS) or Consolidatd Plan.)

(b) Factors such as the following will provide evidence of

conditions which, when taken together, will demonstrate a pattern of

inadequate supply (generally, no one factor, taken alone, is

conclusive):

(1) The current rental housing vacancy rate is at a low level

(typically six percent or lower) which results in housing not being

available for families seeking rental units (unless the housing market

area is not growing and, as a result, is experiencing low levels of

demand);

(2) The annual production of rental housing units is insufficient

to meet the demand arising from the increase in households, or, where

there is little or no growth, is insufficient to meet the demand

arising from net losses to the available inventory;

(3) The shortage of housing is resulting in rent increases

exceeding those increases commensurate with rental housing operating

costs; and

(4) A significant number or proportion of section 8 certificate/

voucher holders are unable to find adequate housing because of the

shortage of rental housing, as evidenced by PHA data showing a lower-

than-average percentage of units under lease and a longer-than-average

time required to find units (typically, less than 85 percent lease up

within 60 days).

4. Documentation to Demonstrate Need. The PHA must submit

documentation, such as waiting list description or PHA vacancy rate

data, to demonstrate need for the proposed public housing, to assist

the HUD Field Office in its determination of need and market in

accordance with Section IV.C.8.b of this NOFA.

5. Additional Rating Points. Category 4 (other) applications may

obtain additional rating points (see Section IV.E.8 of this NOFA) if

the PHA furnishes additional data regarding any of the following:

(a) ``Partnerships.'' PHAs are encouraged to form ``partnerships''

consisting of cooperative or contractual arrangements with community-

based entities for the purpose of developing housing so that the

housing fits into the community and is seen as an integral part of it.

``Community-based entities'' include private non-profit or for-profit

entities with experience in the development of low and moderate income

housing, or that are skilled in the delivery of services to families

who are residents of public housing. ``Cooperative or contractual

arrangements'' include those that will facilitate development

(including management of the units) that will enhance the long-term

viability of the development; and those arrangements that the PHA has

for the delivery of services (such as child care, education, and

economic opportunities) made available to residents of public housing.

The PHA should indicate who the entity (or entities) are, the

qualifications of the entity and its principals, and the role they play

or will play in the development, management, or service delivery

process which will lead to better acceptance of public housing in the

community. Such cooperative arrangements require substantial

involvement by the non-PHA partner in at least one of the following

areas: design, management, development, site selection, representation

to the community, or service delivery. 24 CFR Part 85, regarding

procurement, applies to any such cooperative arrangement. With respect

to the delivery of services, costs for such services are not eligible

to be paid from public housing development funds. The PHA must also

certify that its selection of the cooperative entity (or entities) was

in compliance with State and local law.

[Note: If procurement requirements cannot be complied with

before the application deadline date, the PHA may submit a statement

with its application describing the anticipated arrangement and

certifying that it will undertake such a cooperative relationship

and that such a relationship will comply with federal/state and

local law.]

(b) Mixed Income Development. In order to encourage the development

of public housing in metropolitan areas that will be less identifiable

as public housing, PHAs are encouraged to develop units whereby public

housing would be mixed with market-rate dwellings so that they are

indistinguishable. Specifically, in order to receive the maximum points

for this factor, a PHA must propose to develop or acquire units or

sites in developments where the non-public housing units require

incomes that, on average, are at or above 80 percent of median. A PHA

also may receive points for acquisitions of units or sites in

developments where the non-public housing units require incomes that,

on average, are at or above 50 percent of median.

(c) Past compliance with section 3. The PHA may submit evidence

that over the past five years it has met any commitments made under the

provisions of section 3 of the Housing and Urban Development Act of

1968 (12 U.S.C., 1701u), as amended from time to time, and the

implementing regulations for section 3 at 24 CFR part 135. If the PHA

does not have development experience, it may instead submit evidence

related to such experience with the modernization program.

(d) Proposed compliance with section 3. The PHA may submit its

goals for complying with section 3 employment and training with regard

to the public housing development application being filed under this

NOFA.

(e) Support for local initiatives. If the application proposes a

project which, as evidenced by a letter from local officials, actively

supports an area of local initiative such as a Community Development

Block Grant, urban revitalization, Empowerment Zone/Enterprise

Community, or other similar local activity, or includes a commitment

for a donation to the project in the event it is selected for funding,

the PHA should describe the activity.

(f) Resident Initiatives. If the PHA is working with residents to

establish and/or foster resident empowerment activities (such as

establishing Resident Corporations or Resident Management

Corporations), the activities should be described.

(g) Preservation of Low-Income Housing. The PHA should describe any

means by which use of public housing development funds will preserve

low-income housing resources currently available to the community.

F. Applications Covering State or Locally-Assisted Units

Applications for conversion of State- or locally-assisted units or

federally assisted public housing are eligible for assistance under

this NOFA.

G. Major Reconstruction of Obsolete Projects (MROP).

The Department will fund no MROP in fiscal 1995, unless the

Department determines that such funding is necessary from Headquarters

Reserve in

[[Page 31847]]

relation to litigation settlements, court orders or litigation

avoidance.

H. Ineligible Applications

Applications for intermediate care facilities and nursing homes may

not be approved under this NOFA.

IV. Field Office Processing of Applications

A. Submission of Applications

The cover letter of all applications must be marked with the date

and time of receipt, along with the initials of the Field Office

employee accepting the application. Applications received after the

date and time specified at the beginning of this NOFA will be returned

to the applicant. The PHA should obtain a ``Return receipt'' or similar

evidence of delivery when applications are delivered via other means

(U.S. Mail, private mailing firms, etc.).

B. Initial Screening

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

Field Office will screen each application to determine whether all

information and exhibits have been submitted.

(a) If any application lacks any technical information or exhibit,

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

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

notification to deliver the missing or corrected information or

documentation to the Field Office.

(b) Curable technical deficiencies relate only to items that would

not improve the substantive quality of a category 4 application,

relative to the ranking factors.

(c) If Form HUD 52470 (Application) is missing, the PHA's

application will be considered substantively incomplete, and therefore

ineligible for further processing. If other forms are missing, such as

Form HUD 50070 (Drug Free Workplace Certification) or if there is a

technical mistake, such as no signature, or an unauthorized signatory

on a submitted form, the PHA will be given an opportunity to correct

the deficiency.

2. An application that does not meet the applicable threshold and

NOFA requirements after the 14-day technical deficiency period will be

rejected from processing and determined to be unapprovable.

3. Applications proposing housing in areas also served by the Rural

Housing and Community Development Service (RHCS) (formerly known as

Farmers Home Administration) are subject to coordination with RHCS to

assure that assisted housing resources to be provided are not

duplicative. The State RHCS office shall be advised that an application

for public housing has been received and is being considered for

funding, and be provided an opportunity to comment on the application.

4. The responsibility for submitting a complete application rests

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

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

consequences of failure to submit a complete application.

C. Application Threshold Approvability.

After initial screening and upon expiration of the deficiency

``cure'' period, complete applications will be examined for threshold

approvability. Applications that fail one or more of the threshold

criteria will be rejected from processing and determined to be

unapprovable. All applications for public housing development funds

must meet the following thresholds to be determined approvable:

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

approval of the application. The PHA must be legally eligible to

develop, own, and operate public housing under the USHA and have:

(a) Approved and current PHA organization documents;

(b) Local cooperation agreements to cover units under management,

in development, and the units requested (Form HUD 52481), and any other

required local authority, or evidence the Department finds sufficient

that such cooperation agreements can be obtained in a timely fashion;

(c) A properly executed and complete PHA Resolution (Form HUD

52471), required with respect to all applications and referring to the

need for front-end funding, if requested, and a Local Governing Body

Resolution (HUD 52472) which approves the request for front-end funds,

if front-end funds are requested. (Note: By executing the PHA

Resolution, the PHA certifies that it will comply with Title II of the

Americans with Disabilities Act (42 U.S.C. 12131) and the implementing

regulation at 28 CFR part 35. The PHA Resolution also certifies to the

PHA's intent to comply with all requirements of 24 CFR part 941. These

requirements include: nondiscrimination under the applicable civil

rights laws; the requirements imposed by the Uniform Relocation

Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42

U.S.C. 4601-4655); the accessibility requirements of section 504 of the

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

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

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

implementing regulations at 24 CFR part 135.

2. The category of application is eligible under this NOFA (see

Section II.B of this NOFA).

3. If new construction (conventional or turnkey) has been applied

for, the PHA has provided a cost comparison or a certification with

documentation (see Section III.B. of this NOFA), and has stated what is

to be done with the application if new construction is not approvable.

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

has failed to return excess advances received during development or

modernization, or amounts determined by HUD to constitute excess

financing based on a HUD-approved Actual Development Cost Certificate

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

approved a pay-back plan.

5. There are no environmental factors, such as sewer moratoriums,

precluding development in the requested locality.

6. The following certifications are included in the application and

have been executed by the appropriate person(s):

(a) Form HUD-50070, Drug-Free Workplace;

(b) Form HUD-50071, Certification for Contracts, Grants, Loans and

Cooperative Agreements;

(c) Form SF-LLL, Disclosure of Lobbying Activities, if applicable;

(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report;

(e) FSS certification;

(f) Section 5(j) certification appropriate to the category of

application;

(g) Certification that the application is consistent with

Environmental Justice Executive Order 12898, in that the proposed

public housing will be developed only in environmentally sound and

desirable locations and will avoid disproportionately high and adverse

environmental effects on minority and low-income communities.

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

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

if:

(a) As a result of formal administrative proceedings, there are no

outstanding findings of noncompliance with civil rights laws unless the

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

designed to correct the area(s) of noncompliance;

[[Page 31848]]

(b) There is no adjudication of a civil rights violation in a civil

action brought against it by a private individual, unless the applicant

demonstrates that it is operating in compliance with a court order

designed to correct the area(s) of noncompliance;

(c) There is no deferral of Federal funding based upon civil rights

violations;

(d) There is no pending civil rights suit brought against the PHA

by the Department of Justice; or

(e) There is no unresolved charge of discrimination against the PHA

issued by the Secretary under section 810(g) of the Fair Housing Act,

as implemented by 24 CFR 103.400.

8. For ``other'' applications only:

(a) The Field Office must determine that the PHA has or will have

the capability to develop and manage the proposed housing. The Field

Office shall determine capability based upon the PHA's overall score

under the Public Housing Management Assessment Program (PHMAP) (see 24

CFR part 901), the PHA's most recent fiscal audit, and outstanding HUD

monitoring findings. A PHA shall not be determined to lack

administrative or development capability simply because it has no

recent experience in developing or managing public/assisted housing.

(b) The Field Office must determine that there is a need and a

market for the proposed household type and bedroom sizes, taking into

consideration the documentation submitted by the PHA on housing supply

and demonstration of need, any local plans, and other assisted housing

(e.g., HUD or RHCS) existing and proposed (including housing funded but

not completed).

9. With respect to all applications the Department reserves the

right to require the PHA to utilize an alternative administrator to

carry out the applicable public housing development program.

D. Threshold Approvable Applications

Applications in categories 1, 2, and 3 will be determined

approvable if they successfully pass the threshold review. Threshold-

approvable applications in category 4 (``other'') will be reviewed and

analyzed by the Field Office.

E. ``Other'' Development Applications

Threshold approvable ``Other'' applications will have points

assigned by a Rating Panel(s) on the basis of Field Office analysis and

PHA documentation relating to the following criteria:

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

Criteria Points

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

1. Relative Need. The application proposes a development for a

locality which has been previously under-funded for the

household type (family or elderly) requested, relative to the

need for housing for the same household type in the

respective metropolitan or non-metropolitan portion of the

Field Office's jurisdiction. [Select (a), (b) or (c)]:

(a) Housing need in the locality specified in the

application has been severely under-funded. (A locality

with a percentage of need served that is equal to or less

than one-half the Field Office percentage will be

determined to be severely under-funded.);................ 20

or

(b) Housing need in the locality specified in the

application has received a proportionate share of funding

or has been moderately under-funded. (A locality with a

percentage of need served that is equal to or less than

the Field Office percentage, but greater than one-half

that percentage will be determined to be moderately under-

funded.);................................................ 10

or

(c) Housing need in the locality specified in the

application has been over-funded. (A locality with a

percentage that is greater than the Field Office

percentage will be determined to have been over-funded.); 0

2. Vacancy Rate. Select (a) or (b):

(a) The adjusted vacancy rate in public housing

developments under management (as such term is defined in

the Public Housing Management Assessment Program, 24 CFR

901 et. seq.) is not greater than 3 percent, indicating

that the PHA will and can fully utilize the units for

which it applied;........................................ 10

or

(b) The adjusted vacancy rate in public housing

developments under management is greater than 3 percent

but less than 6 percent (or two units if that is

greater);................................................ 5

3. Large-Family Housing. The application is for a public

housing development comprising 51 percent or more three

bedroom or larger units;..................................... 15

4. Relocation. The proposed public housing development would

primarily assist households displaced or to be displaced by

Federal action or a natural disaster in a Federally declared

disaster area;............................................... 15

5. Low Density Family Housing. The application proposes

scattered site development to expand housing opportunities;.. 20

6. PHA Development Experience. [Select (a), (b), or (c)]

(a) The PHA scored at least 90 percent (``A'') in

Indicator 12 (Development) of PHMAP;..................... 15

or

(b) The PHA's latest PHMAP score for Indicator 12

(Development) is between 80 and 89 percent; or the Field

Office has no information on the PHA's previous

development experience to rate the PHA under paragraph

(a) above; however, the application demonstrates the

capability for, and the expectation of, expeditious

quality or other development experience, or submitted a

development management contract with an experienced

development project manager);............................ 10

or

(c) The PHA's latest PHMAP score for Indicator 12

(Development) is between 60 and 79 percent; or the PHA

has no development experience under either paragraph (1)

or (2) above, but the PHA has evidenced staff capability

and organization that demonstrates the PHA has the

capability for, and the expectation of, expeditious

quality development or has submitted a proposed

development management contract;......................... 5

7. PHA Management Experience. [Select (a), (b), or (c)]

(a) The PHA's latest PHMAP score (excluding development)

is 90 percent or better; and there were no Inspector

General audit findings during the PHA's last fiscal

audit; and there are no outstanding HUD monitoring

findings;................................................ 20

or

(b) The PHA's latest PHMAP score (excluding development)

is between 80 and 89; and Inspector General audit

findings (if any) have been addressed; and outstanding

HUD monitoring findings have been resolved;.............. 10

or

(c) Choose (1) or (2):

(1) The PHA's latest PHMAP score (excluding

development) is between 60 and 79; and Inspector

General audit findings (if any) have been addressed;

and outstanding HUD monitoring findings have been

resolved;............................................ 5

or

(2) The PHA has no public housing in management, but

has management experience in the section 8 program

and management reviews or Inspector General audit

findings (if any) are being addressed satisfactorily; 5

[[Page 31849]]

8. Other Criteria. (Select any that apply)

(a) The PHA has certified that it will form, or submit

evidence that it has formed, a ``partnership'' (i.e., a

cooperative relationship) with an entity that will play a

substantial role in development, design, management, or

representation to the community and has described the

partnership's role; or the PHA has certified that it will

form, or submit evidence that it has formed, a

``partnership'' with an entity that plays a substantial

role in the delivery of services and that these services

will be available to residents of the project under

development, and has described the partnership's role.... 15

(b) Choose (1) or (2) if applicable:

(1) The PHA has certified that it will develop or

acquire units or sites in developments where the non-

public housing units require incomes that, on

average, are at or above 80 percent of median;....... 15

or

(2) The PHA has certified that it will develop or

acquire units or sites in developments where the non-

public housing units require incomes that, on

average, are at or above 50 percent of median;....... 10

(c) The PHA has submitted evidence that over the past five

years it has met any commitments made under the

provisions of section 3 of the Housing and Urban

Development Act of 1968 (12 U.S.C., 1701u), as amended

from time to time, and the implementing regulations for

section 3 at 24 CFR part 135. (If the PHA does not have

development experience, it may instead submit evidence

related to its experience with the modernization

program.);............................................... 10

(d) The application proposes a public housing development

which, as evidenced by a letter from local officials,

actively supports an area of local initiative such as a

Community Development Block Grant, urban revitalization,

Empowerment Zone/Enterprise Community, or other similar

local activity, or includes a commitment for a donation

to the project in the event it is selected for funding;.. 15

(e) The Field Office, based on documentation submitted by

the PHA, has determined that the PHA is working with

residents to establish and/or foster resident empowerment

activities (such as establishing Resident Corporations or

Resident Management Corporations);....................... 10

(f) Preservation of low-income housing. The PHA

demonstrates that commitment of development funds will

preserve low-income housing resources currently available

to the community......................................... 20

---------

Total Possible Points................................. 200

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

F. Field Office Reports

1. Category 1, 2, and 3 Applications. Each Field Office shall

forward its lists (by category) of fair-share exempt threshold-

approvable applications to Headquarters within two weeks of the

deficiency ``cure'' period. The lists shall include the project number,

total number of units and units by bedroom size, structure type(s),

cost areas, funding required and the metropolitan/non-metropolitan

designations for each application. Category 1 and 2 applications shall

also identify the underlying project and its current status (e.g.,

approved (date), under review in Field Office, etc.).

2. Category 4. All Field Office reports to Rating Panels on

threshold-approvable ``other'' applications shall be submitted within

three weeks of the deficiency ``cure'' period and include the

information described in paragraph F.1., above, the analysis of each

application, and Field Office recommendations for funding.

V. Rating Panels

A. Rating Panels

1. General. The Rating Panel(s) shall compile data furnished by

Field Offices for category 4 (other) applications, and rate each

application based on Field Office analyses, comments, and

recommendations.

A list of rated applications shall be forwarded to Headquarters,

with copies of Field Office reviews and recommendations, and

justifications for Rating Panel rankings. Headquarters shall not modify

ratings of category 4 (``other'') applications unless a gross error has

occurred.

Examples of ``gross errors'' include, but are not limited to,

errors in calculating the vacancy rate in the proposed community, or

assigning points for development/management experience based on a PHMAP

score that was successfully appealed, or simple errors of arithmetic.

Changes in ratings shall be fully documented, and a copy of the

memorandum authorizing the change (and the basis thereof) shall be sent

to the Rating Panel and to the Field Office for inclusion in the file

and be made available for public inspection. Category 4 applications

shall be approved within Areas, to the extent fair share funds are

assigned, as follows:

2. ``Tight Market'' Determination. Headquarters will separate

applications (category 4) on the basis of ``tight rental housing

market'' and Rating Panel ratings and Headquarters rankings, and

approve them (in the following order) to the extent fair share funds

are assigned to their respective Area:

(a) Applications within the same Area in tight rental housing

markets which receive 100 or more rating points;

(b) All other applications in the same Area, in rank order,

depending on ``metropolitan'' or ``non-metropolitan'' funding

available.

B. Reservation of Funds

Funds will be reserved in an amount equal to the total development

cost limit for the number, structure type, and size of units being

approved, ``trended'' to take into consideration the anticipated cost

of construction at the time the construction/rehabilitation contract is

expected to be executed; acquisition reservations will be trended to

take into account anticipated cost variations between fund reservation

and Date of Full Availability (DOFA). The trend shall be calculated by

multiplying the project total development cost limit by 6 percent

(1.06), rounded to the nearest $50. No amendment funds will be

available for these projects in the future.

C. Partial Funding

Partial funding of highly ranked ``other'' applications within an

Area may occur (so long as such projects are determined viable and the

PHA has indicated willingness to accept fewer units) to facilitate the

funding in rank order of additional applications for highly ranked

projects. With respect to categories 1, 2 and 3, partial funding may be

provided where the Department determines this to be appropriate.

VI. Checklist of Application Submission Requirements

A. Submission Requirements

PHAs may use the following application checklist which enumerates

the submission requirements of Section III of this NOFA:

[[Page 31850]]

1. Cover letter;

2. Form HUD 52470, Application for Public Housing Development;

3. Evidence of legal eligibility (if not previously evidenced) with

a current General Certificate (HUD 9009);

4. Evidence that the number of units in management, in development,

and being requested in this application are covered by Cooperation

Agreements (HUD 52481) and any other State/local requirements have been

met;

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

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

are being requested by the PHA. (Note: If front-end funds are

requested, the HUD 52471 must be appropriately modified. See Section

III.A.6. of this NOFA.);

7. PHA statement identifying its funding preferences for particular

sites if an application covering more than one site is being submitted

for category 4 (see Section II.B of NOFA). (Note, however, that no more

than one application per locality may be filed under category 4.);

8. PHA statement whether it will accept fewer ``other'' units than

applied for (category 4);

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

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

Cooperative Agreements;

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

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

12. Form HUD 2880, Disclosure of Government Assistance and Identity

of Interested Parties;

13. Section 5(j) certification appropriate to the category of

application;

14. Certification of consistency with Environmental Justice

Executive Order 12898;

15. Evidence of inadequate housing supply (i.e., a ``tight'' rental

housing market), for category 4 (``Other'') units;

16. Evidence (such as waiting list information or PHA vacancy rate

data) of need and market for the units requested for category 4

applications;

17. Section 6(h) cost comparison justification, if new construction

is requested;

18. FSS program certification if for Category 3 (Headquarters

Reserve) or Category 4 (``Other'') units;

19. Replacement housing exhibits, if applicable (see section

III.C);

20. (Optional) For replacement housing applications, documentation

how the application addresses HUD priorities (see section II.C.2).

21. (Optional) For ``other'' applications, documentation to address

the rating factors (see section IV.E.).

B. Application Packets

Forms comprising the application package may be obtained from the

HUD Field Office.

VIII. Other Matters

A. Environmental Impact

A Finding of No Significant Impact with respect to the environment

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

implementing section 102(2)(C) of the National Environmental Policy Act

of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is

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

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

Street, S.W., Room 10276, Washington, D.C. 20410.

B. Federalism

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

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

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

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

on the distribution of power and responsibilities between them and

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

public housing development.

C. Family Impact

The General Counsel, as the Designated Official for Executive Order

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

not have the potential for significant impact on family formation,

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

the extent that the funding provided through this NOFA results in

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

beneficial.

D. Prohibition Against Lobbying Activities: The Byrd Amendment

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

disclosure requirements and prohibitions of section 319 of the

Department of Interior and Related Agencies Appropriations Act for

Fiscal Year 1990 (31 U.S.C. 1352) and the implementing regulations at

24 CFR part 87. These authorities prohibit recipients of Federal

contracts, grants, or loans from using appropriated funds for lobbying

the Executive or Legislative Branches of the Federal Government in

connection with a specific contract, grant, or loan. The prohibition

also covers the awarding of contracts, grants, cooperative agreements,

or loans unless the recipient has made an acceptable certification

regarding lobbying.

Under 24 CFR part 87, applicants, recipients, and subrecipients of

assistance exceeding $100,000 must certify that no Federal funds have

been or will be spent on lobbying activities in connection with the

assistance. As noted earlier a certification is required, at the time

the application for funds is made, that Federally appropriated funds

are not being or have not been used in violation of section 319 and

that disclosure will be made of payments for lobbying with other than

Federally appropriated funds. Also, again as noted earlier, there is a

standard disclosure form, SF-LLL, ``Disclosure Form to Report

Lobbying,'' which must be used to disclose lobbying with other than

Federally appropriated funds.

E. Prohibition Against Lobbying of HUD Personnel

Section 13 of the Department of Housing and Urban Development Act

(42 U.S.C. 3537b) contains two provisions dealing with efforts to

influence HUD's decisions with respect to financial assistance. The

first imposes disclosure requirements on those who are typically

involved in these efforts--those who pay others to influence the award

of assistance or the taking of a management action by the Department

and those who are paid to provide the influence. The second restricts

the payment of fees to those who are paid to influence the award of HUD

assistance, if the fees are tied to the number of housing units

received or are based on the amount of assistance received, or if they

are contingent upon the receipt of assistance.

HUD's regulation implementing section 13 is codified at 24 CFR part

86. If readers are involved in any efforts to influence the Department

in these ways, they are urged to read the final rule, particularly the

examples contained in Appendix A of the rule. Appendix A of this rule

contains examples of activities covered by this rule.

Any questions concerning the rule should be directed to the Office

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

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

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

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

[[Page 31851]]

F. Section 112 of the HUD Reform Act 1989

A final rule published in the Federal Register on September 7,

1993, amended the definition of ``person'' to exclude from coverage a

State or local government, or the officer or employee of a State or

local government or housing finance agency thereof who is engaged in

the official business of the State or local government.

Any questions concerning the rule should be directed to the Office

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

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

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

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

G. Prohibition Against Advance Information on Funding Decisions

Section 103 of the HUD Reform Act proscribes the communication of

certain information by HUD employees to persons not authorized to

receive that information during the selection process for the award of

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

CFR part 4. That regulation applies to the funding competition

announced today. The requirements of the rule continue to apply until

the announcement of the selection of successful applicants.

HUD employees involved in the review of applications and in the

making of funding decisions are restrained by 24 CFR part 4 from

providing advance information to any person (other than an authorized

employee of HUD) concerning funding decisions, or from otherwise giving

any applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted by 24 CFR part 4.

Applicants who have questions should contact the HUD Office of

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

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

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

questions, such as whether particular subject matter can be discussed

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

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

which the question pertains.

H. Accountability in the Provision of HUD Assistance

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

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

ensure greater accountability and integrity in the provision of certain

types of assistance administered by HUD. The following requirements

concerning documentation and public access disclosures are applicable

to assistance awarded under this NOFA.

1. Documentation and Public Access. HUD will ensure that

documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

upon which assistance was provided or denied. This material, including

any letters of support, will be made available for public inspection

for a five-year period beginning not less than 30 days after the award

of the assistance. Material will be made available in accordance with

the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing

regulations at 24 CFR part 15. In addition, HUD will include the

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice published in

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

information on these requirements.)

2. Disclosures. HUD will make available to the public for five

years all applicant disclosure reports (HUD Form 2880) submitted in

connection with this NOFA. Update reports (also Form 2880) will be made

available along with the applicant disclosure reports, but in no case

for a period of less than three years. All reports--both applicant

disclosures and updates--will be made available in accordance with the

Freedom of Information Act (5 U.S.C. 552) and HUD's implementing

regulations at 24 CFR part 15. (See 24 CFR part 12, subpart C, and the

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

1942), for further information on these disclosure requirements.)

Dated: May 30, 1995.

Joseph Shuldiner,

Assistant Secretary for Public and Indian Housing.

[FR Doc. 95-14732 Filed 6-12-95; 3:59 pm]

BILLING CODE 4210-33-P