NOFA for the Rental Voucher Program and Rental Certificate Program

Federal RegisterMar 3, 1995

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SUMMARY: The purpose of the rental voucher and the rental certificate

programs is to assist eligible families to pay the rent for decent,

safe, and sanitary housing. This notice states the FY 95 fund

allocations available for award for all subprograms of the rental

voucher and rental certificate programs. The Department has decided in

the interest of convenience and timeliness to publish all information

on each subprogram of the Section 8 rental voucher and certificate

programs in one NOFA for FY 95. Please review the table of contents in

this NOFA and then refer to the separate sections of this NOFA for

specific information on each subprogram. For ease of reference, the

term ``HUD Office'' will be used throughout this NOFA to mean the HUD

State Office, HUD Area Office and the HUD Native American Programs

Office. If a particular type of HUD Office needs to be identified,

e.g., the HUD Native American Programs Office, the appropriate office

name will be used.

This notice also:

(1) Invites Public Housing Agencies (PHAs) and Indian Housing

Authorities (IHAs), herein referred to as housing agencies (HAs), to

submit applications for housing assistance funds;

(2) Provides instructions to HAs governing the submission of

applications; and

(3) Describes procedures for rating, ranking, and approving HA

applications.

DATES: Refer to Section I.(B) of this NOFA for a summary of the

deadline dates for applications for all subprogram applications.

ADDRESSES: See section I.(B) of this NOFA.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations

Branch, Rental Assistance Division, Office of Public and Indian

Housing, Room 4220, Department of Housing and Urban Development, 451

Seventh Street, S.W., Washington, D.C. 20410-8000, telephone (202) 708-

0477. Hearing- or speech-impaired individuals may call HUD's TDD number

(202) 708-4594. (These telephone numbers are not toll-free.) Copies of

this NOFA will be made available on tape or large print for those with

impaired vision that request them. Inquiries requesting clarification

of items in this NOFA or requesting application materials should be

directed to the Public Housing Director in the HUD Office serving the

HA's jurisdiction.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection requirements contained in this notice

have been approved by the Office of Management and Budget (OMB), under

section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-

3520), and have been assigned OMB control number 2577-0169.

Table of Contents

I. NOFA General

(A) Authority

(B) Subprogram Funding and Summary of Application Deadline Dates

(D) Application Submission Requirements--General

(E) Selection Criteria--General

(F) Local Government Comments

(G) Corrections to Deficient Applications--General

(H) HUD Corrections to Rating and Ranking FY 94 Applications

(I) Notification of Funds Awarded

II. Fair Share Allocations

(A) Fair Share Application Deadline Date

(B) Fair Share Allocation Amounts

(D) Fair Share Application Rating Process

(E) Corrections to Deficient Fair Share Applications

(F) Fair Share Application Selection Process

III. Family Unification/Foster Care Program

(A) Family Unification Application Deadline Date

(B) Purpose and Substantive Description of Family Unification

Program

(D) Family Unification Application Submission Requirements

(E) Family Unification Application Rating Process

(F) Corrections to Deficient Family Unification Applications

(G) Family Unification Application Selection Process

IV. Family Self-Sufficiency (FSS) Service Coordinators

(A) FSS Service Coordinators Application Deadline Date

(B) Purpose and Substantive Description of Funding for FSS

Service Coordinators

(D) FSS Service Coordinators Application Submission Requirements

(E) Corrections to Deficient FSS Service Coordinators

Applications

(F) Application Selection Process for FSS Service Coordinators

V. Section 8 Counseling

(A) Application Deadline Date for Section 8 Counseling

(B) Purpose and Substantive Description of Section 8 Counseling

(D) Application Submission Requirements for Section 8 Counseling

(E) Corrections to Deficient Applications for Section 8

Counseling

(F) Application Selection Process for Section 8 Counseling

VI. NOFA for Mainstream Housing Opportunities for Persons With

Disabilities (Mainstream Program)

(A) Mainstream program Application Deadline Date

(B) Purpose and Substantive Description or Mainstream Program

(D) Application Submission Requirements for Mainstream Program

in Conjunction With Submission of Designated Housing Allocation

Plans

(E) Application Submission Requirements for General Mainstream

Program for Persons With Disabilities

(F) Corrections to Deficient Applications

(G) Mainstream Program Application Selection Process

VII. Subprogram for Persons With HIV/AIDS

(A) Application Deadline Date for Persons With HIV/AIDS

Subprogram

(B) Purpose and Substantive Description of Subprogram for

Persons With HIV/AIDS

(D) Application Submission Requirements for Persons With HIV/

AIDS Subprogram

(E) Corrections to Deficient Applications for Persons With HIV/

AIDS Subprogram

(F) Application Selection Process for Persons With HIV/AIDS

Subprogram

VIII. Subprogram for Homeless Families

(A) Application Deadline Date for Homeless Families Subprogram

(B) Purpose and Substantive Description of Homeless Families

Subprogram

(D) Application Submission Requirements for Homeless Families

Subprogram

(E) Corrections to Deficient Applications for Homeless Families

Subprogram

(F) Application Selection Process for Homeless Families

Subprogram

IX. Other Allocations

(A) Relocation, Demolition and Disposition (HOPE I, II, Section

5(h), Section 18. HOPE VI and ``OPT-OUTS''

(B) Rental Voucher and Rental Certificate Renewals

(D) Section 8 Amendments

(E) Housing Agency Portability Fees

(F) Headquarters Reserve

(G) Property Disposition

(H) FY 94 NOFA for Homeless Person With Disabilities

[[Page 12037]]

(I) FY 94 NOFA for Homeless Veterans With Severe Psychiatric or

Substance Abuse Disorders

(J) FY 94 NOFA for Family Unification

(K) FY 94 NOFA for FSS Service Coordinators

X. Other Matters

(A) Environmental Impact

(B) Federalism Impact

(D) Section 102 of the HUD Reform Act: Documentation and Public

Access Requirements

(E) Section 103 of the HUD Reform Act

(F) Prohibition Against Lobbying Activities

(G) Section 112 of the HUD Reform Act

I. NOFA General

(A) Authority

The regulations governing the rental certificate and the rental

voucher programs are published at 24 CFR parts 882 and 887,

respectively, and 24 CFR Part 982. The regulations for allocating

housing assistance budget authority under section 213(d) of the Housing

and Community Development Act of 1974 are published at 24 CFR part 791,

subpart D.

(B) Subprogram Funding and Summary of Application Deadline Dates

The application deadline for each subprogram under this NOFA is

3:00 p.m., local time. The local HUD Office is the official place of

receipt for all applications on the date shown below except for

applications for Section 8 Counseling (see Section V. of this NOFA).

The local HUD Native American Programs Office is the place of official

receipt for IHA applications except for applications for Section 8

Counseling (see Section V. of this NOFA). An IHA also must submit, at

the same time, a copy of its application to the local HUD State or Area

Office that has jurisdiction over the portion of the State in which the

IHA is located. Local HUD Offices are responsible for notifying their

HAs of the exact address and room number where applications are to be

submitted.

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

Number of

Subprogram area units Deadline dates

(approximate)

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

Fair Share Allocations................ 35,000 May 2, 1995.

Mainstream Housing.................... 2,500 June 1, 1995.

Homeless Families (Non-competitive 12,000 Do.

Process).

Persons with AIDS (Non-competitive 3,000 Do.

Process).

Section 8 Counseling.................. N/A May 2, 1995.

FSS Service Coordinators.............. N/A May 17, 1995.

Family Unification.................... 2,000 Do.

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

The above-stated application deadlines are firm as to date and

hour. In the interest of fairness to all competing HAs, HUD will treat

as ineligible for consideration any application that is not received

before the application deadline. Applicants should take this practice

into account and make early submission of their materials to avoid any

risk of loss of eligibility brought about by unanticipated delays or

other delivery-related problems. HUD will not accept, at any time

during the NOFA competition, application materials sent via facsimile

(FAX) transmission.

Other allocations of Section 8 funds, including the FY 94 funding

and those allocations without specific application deadlines, are

listed in Section IX. of the NOFA.

Unless specifically exempted by HUD, all rental voucher or rental

certificate funding reserved in FY 95 (except funding for renewals or

amendments) will be used to establish the minimum size of an HA's FSS

program.

(D) Application Submission Requirements--General

(1) General

The provisions of this section I apply to all subprograms covered

by this NOFA. Applications must meet the requirements of this section I

as well as the requirements for each subprogram as shown in the

pertinent section of this NOFA for the subprogram. Refer to the

subprogram section for the specific application submission

requirements.

Except as provided for Indian Housing Authorities or unless

otherwise specified for a subprogram, only an original application and

one copy should be submitted. It is not necessary to submit additional

copies of the application.

(2) Application Procedures for HUD-Designated Housing Agencies with

Major Program Findings

HUD will establish a pass or fail threshold for all HAs and those

HAs that fail the threshold will not be eligible to apply without a

contract administrator. Some housing agencies currently administering

the Section 8 rental voucher and certificate programs have, at the time

of publication of this NOFA, major program management findings that are

open and unresolved or other significant program compliance problems

(e.g., HA has not implemented mandatory FSS program). HUD will not

accept applications for additional funding from these HAs as contract

administrators if, on the application deadline date, the findings are

not closed to HUD's satisfaction. If these HAs want to apply for any of

the subprograms listed in this NOFA, the HA must submit an application

that designates another housing agency, non-profit agency, or

contractor, that is acceptable to HUD and includes an agreement with

the other housing agency or contractor to administer the new funding

increment on behalf of the HA. The Office of Public Housing in the

local HUD Office will notify, immediately after the publication of this

NOFA, those HAs that are not eligible to apply. Applications submitted

by these HAs without an agreement from another housing agency or

contractor, approved by HUD, to serve as contract administrator will be

rejected. Other agencies may be notified by HUD at other times as HUD

deems appropriate.

(3) Forms

Application forms may be obtained from the local HUD Office.

Applications for all of the subprograms must include, unless otherwise

specifically excepted:

(a) Form HUD-52515.

An Application for Existing Housing, Form HUD-52515, must be

completed in accordance with the rental voucher and certificate program

regulations. An application for rental vouchers or certificates must

include the information in Section H, Average Monthly Tenant Payment,

of Form HUD-52515 in order for HUD to calculate the amount of Section 8

budget authority necessary to fund the requested number of units. HAs

may obtain a copy of Form HUD-52515 from the local HUD Office. (Not

applicable to subprograms for Family Self-Sufficiency Coordinators or

Section 8 Counseling.)

(b) Certification Regarding Drug-Free Workplace.

The Drug-Free Workplace Act of 1988 requires grantees of Federal

Agencies to certify that they will provide a drug-free workplace. Thus,

each HA must certify (even though it has done so previously) that it

will comply with the drug-free workplace requirements in accordance

with CFR part 24, subpart F. HAs may obtain a copy of this form from

the local HUD Office. [[Page 12038]]

Section 319 of the Department of the Interior Appropriations Act,

Public Law 101-121, approved October 23, 1989, (31 U.S.C. 1352) (the

``Byrd Amendment'') generally prohibits recipients of Federal

contracts, grants and loans from using appropriated funds for lobbying

the Executive or Legislative Branches of the Federal Governments in

connection with a specific contract, grant or loan.

The Department's regulations on these restrictions on lobbying are

codified at 24 CFR part 87. To comply with 24 CFR 87.110, any HA

submitting an application under this announcement for more than

$100,000 of budget authority must submit a certification and, if

applicable, a Disclosure of Lobbying Activities (SF-LLL). IHAs

established by an Indian tribe as a result of the exercise of the

tribe's sovereign power are excluded from coverage of the Byrd

Amendment, but IHAs established under State law are not excluded from

the statute's coverage. HAs may obtain a copy of the certification and

the Form SF-LLL from the local HUD Office.

(d) Application Requirements for Subprograms.

HAs must also comply with the additional application requirements

for each subprogram identified in the section of the NOFA for the

specific subprogram.

(e) HA Eligibility.

All HAs that meet the eligibility requirements for the various

subprograms, other than those HAs notified under the provisions of

paragraph I.(D)(2) of this NOFA and those with certain civil rights or

program violations or deficiencies as specified in section I.(G)(2),

are eligible to apply for funding.

(E) Selection Criteria--General

Each subprogram section of this NOFA has specific selection

criteria to evaluate the applications submitted. Refer to the specific

subprogram section in this NOFA for the selection criteria.

(F) Local Government Comments

Section 213 of the Housing and Community Development Act of 1974

requires that HUD independently determine that there is a need for the

housing assistance requested in applications, and solicit and consider

comments relevant to this determination from the chief executive

officer of the unit of general local government. The HUD Office will

obtain Section 213 comments from the unit of general local government

in accordance with 24 CFR part 791, subpart C, Applications for Housing

Assistance in Areas Without Housing Assistance Plans. Comments

submitted by the unit of general local government must be considered

before an application can be approved. The Section 213 requirements do

not apply to applications for the FSS Service Coordinators and Section

8 Counseling subprograms.

For purposes of expediting the application process, the HA should

encourage the chief executive officer of the unit of general local

government to submit a letter with the HA application commenting on the

HA application in accordance with Section 213. Since HUD cannot approve

an application until the 30-day comment period is closed, the Section

213 letter should not only comment on the application, but also state

that HUD may consider the letter to be the final comments and that no

additional comments will be forthcoming from the unit of general local

government.

(G) Corrections to Deficient Applications--General

(1) Acceptable Applications--General

To be eligible for processing, an application must be received by

the appropriate HUD Office no later than the date and time specified in

Section I.(B) of this NOFA. The HUD Office will initially screen all

applications and notify HAs of technical deficiencies by letter.

If an application has technical deficiencies, the HA will have 14

calendar days from the date of the issuance of the HUD notification

letter to submit the missing or corrected information to the HUD

Office. Curable technical deficiencies relate only to items that do not

improve the substantive quality of the application relative to the

rating factors. The 14 calendar day technical correction period does

not apply to NOFAs for Section 8 Counseling, Mainstream Housing

Opportunities, Persons with HIV/AIDS and Homeless Families.

All HAs must submit corrections within 14 calendar days from the

date of the HUD letter notifying the applicant of any such deficiency.

Information received after 3 p.m. local time (i.e., the time in the

appropriate HUD Office), of the fourteenth calendar day of the

correction period will not be accepted and the application will be

rejected as incomplete.

(2) Unacceptable Applications--General

(a) After the 14-calendar day technical deficiency correction

period, the HUD Office will disapprove HA applications that it

determines are not acceptable for processing. The HUD Office

notification of rejection letter must state the basis for the decision.

(b) Applications that fall into any of the following categories

will not be processed:

(i) There is a pending civil rights suit against the HA instituted

by the Department of Justice or there is a pending administrative

action for civil rights violations instituted by HUD (including a

charge of discrimination under the Fair Housing Act).

(ii) There has been an adjudication of a civil rights violation in

a civil action brought against the HA by a private individual, unless

the HA is operating in compliance with a court order, or implementing a

HUD approved resident selection and assignment plan or compliance

agreement designed to correct the areas of noncompliance.

(iii) There are outstanding findings of noncompliance with civil

rights statutes, Executive Orders, or regulations, as a result of

formal administrative proceedings, or the Secretary has issued a charge

against the applicant under the Fair Housing Act, unless the applicant

is operating under a conciliation or compliance agreement designed to

correct the areas of non- compliance.

(iv) HUD has denied application processing under Title VI of the

Civil Rights Act of 1964, the Attorney General's Guidelines (28 CFR

50.3), and the HUD Title VI regulations (24 CFR 1.8) and procedures

(HUD Handbook 8040.1), or under section 504 of the Rehabilitation Act

of 1973 and HUD regulations (24 CFR 8.57).

(v) The HA has serious unaddressed, outstanding Inspector General

audit findings, Fair Housing and Equal Opportunity monitoring review

findings, or HUD Office management review findings for one or more of

its Rental Voucher, Rental Certificate, or Moderate Rehabilitation

Programs, or, in the case of an HA that is not currently administering

a Rental Voucher, Rental Certificate, or Moderate Rehabilitation

Program, for its Public Housing Program or Indian Housing Program. The

only exception to this category is if the HA has been identified under

the policy established in section I.(D)(2) of this NOFA and the HA

makes application with a designated contract administrator.

(vi) The HA is involved in litigation and HUD determines that the

litigation may seriously impede the ability of the HA to administer an

additional increment of rental vouchers or rental certificates.

(vii) An HA application that does not comply with the requirements

of 24 CFR 882.204(a) or 887.55(b) and this notice,

[[Page 12039]] including the drug-free workplace certification and the

anti-lobbying certification/disclosure requirements, after the

expiration of the 14-calendar day technical deficiency correction

period will be rejected from processing.

(viii) An HA application submitted after the deadline date for the

subprogram of rental vouchers or certificates will be rejected from

processing.

(ix) An HA must have achieved 90 percent lease-up of units in its

HUD-approved budget for the HA fiscal year prior to application for

funding in each of its rental voucher and certificate programs.

Applications from HAs that have failed to achieve the 90 percent lease-

up will be rejected from processing.

(H) HUD Corrections to Rating and Ranking FY 94 Applications

HUD is aware that a few HA applications submitted under the FY 94

NOFAs were not funded due to HUD field staff incorrectly rating and

ranking some HAs' applications. Although the number of errors were

limited, HUD believes that the errors must be corrected; therefore, HUD

Offices that failed to fund certain HA applications for FY 1994 funding

due to these errors by the HUD Office may correct those errors as

follows:

(1) The HUD Office will reconstruct the FY 94 ranking process to

include the application(s) missing from the original ranking process

due to the error; and

(2) The HUD Office will determine the number of units and Section 8

budget authority that would have been awarded to the application(s)

subject to the FY 94 funds available at the time and the funding

selection process utilized in the FY 94 competition.

The HUD Office will correct the error by funding the FY 94

applications from the FY 95 fair share allocation for the same

allocation area prior to the FY 95 competition. The funds for the

allocation area remaining after correcting the FY 94 ranking error will

be available for the FY 95 competition. The correction of the FY 94

error for an HA will not affect the HA's ability to compete for the

remaining FY 95 funds and the FY 95 application will be considered as

though no error had been made.

(I) Notification of Funds Awarded

(1) After the HUD Offices have reviewed, rated, and ranked

applications, and the HUD Offices have approved the applications, each

HUD Office must submit to Headquarters a list of all approved

applications for each subprogram in this NOFA. The application approval

list is due in Headquarters (ATTENTION: Rental Assistance Division,

Office of Public and Indian Housing) on the tenth working day following

the date set by Headquarters for completion of application ranking and

selections.

(2) The HUD Offices must provide the following information for each

application approved:

(a) The name and address of the HA;

(b) The project number, and the number of rental vouchers and the

number of rental certificates, as applicable, approved for the HA; and

separately for rental vouchers and rental certificates.

The Field Offices of Native American Programs (FONAPs) also must

send to Headquarters Office of Native American Programs a list of all

approved IHA applications for each subprogram in this NOFA.

II. Fair Share Allocations

(A) Fair Share Application Deadline Date

The deadline date for applications for the Fair Share allocation is

listed in Section I.(B) of the NOFA.

(B) Fair Share Allocation Amounts

(1) Housing Needs Formula

In FY 95, approximately $1.2 billion of budget authority for the

rental voucher and certificate programs is available for fair share

formula allocation. Of this amount, approximately $600 million is for

rental vouchers and approximately $600 million is for rental

certificates. This budget authority is being allocated to each HUD

Office under this NOFA, using the housing needs factors established in

accordance with 24 CFR 791.402. In addition, approximately $151 million

is retained in a Headquarters Reserve that will not be allocated by

formula.

(2) Metropolitan/Non-Metropolitan Mix

Separate housing needs factors were developed for the metropolitan

and non-metropolitan allocation areas within each HUD Office

jurisdiction. On a nationwide basis, approximately 90 percent of the FY

1995 ``fair share'' budget authority for the Rental Voucher Program and

Rental Certificate Program is designated for allocation to metropolitan

areas. The metropolitan housing needs factors were applied to the

housing assistance budget authority available for metropolitan areas

and the non-metropolitan housing needs factors were applied to the

housing assistance budget authority available for non-metropolitan

areas.

The allocation areas were established by the HUD State and Area

Offices to ensure sufficient competition among HAs (including State and

regional or multi-county HAs) operating housing programs within the

HUD-established allocation areas.

(3) Program Type

This notice announces the fair share allocation of housing

assistance budget authority (See Attachment 1) for the Rental Voucher

Program and for the Rental Certificate Program to each allocation area,

based on the housing needs factors. The allocation of housing

assistance budget authority to each allocation area, however, is the

total for both programs. The allocations have been structured to give

HUD Offices flexibility in approving HA applications for funding of

rental vouchers or rental certificates. This Notice also provides an

estimate of the total number of rental vouchers and rental certificates

that could be funded from the housing assistance available in the

allocation area based on the national average cost of rental assistance

for a two-bedroom unit. The actual number of units assisted within each

HUD Office will vary from the estimates prepared by Headquarters for

each HUD Office since the actual costs of rental assistance for each HA

vary from the average.

(4) Reimbursement for Portability Units

The Department has decided that it is appropriate to use up to 50

percent of the fair share allocation for each allocation area as

reimbursement to HAs for the costs associated with families that have

moved under the portability procedures of the programs. Each HA must

designate, in an attachment to Form HUD-52515, the number of units that

it is requesting as reimbursement for portability billings or

absorptions. A receiving HA that currently bills an initial HA for the

cost of rental assistance for a family and receives funding under this

NOFA for reimbursement of the rental assistance must discontinue

billing the initial HA upon execution of the amendment to the annual

contributions contract (ACC). The initial HA will then be able to

reissue the rental assistance to another family on the initial HA's

waiting list.

Attachment 2 to this NOFA provides a suggested format for the

receiving HA to list the number of units and to certify to the number

of families assisted under the portability provisions. In order to be

eligible for reimbursement for portability, the HA must have billed,

during the most recent month prior to [[Page 12040]] the HA application

to HUD for reimbursement, another HA for the cost of the families'

rental assistance, including administrative fees, or have absorbed the

families into its own program at any time during the last HA fiscal

year. A receiving HA may apply for the number of rental vouchers or

certificates for which the HA billed another HA during the most recent

month prior to application or the number of rental vouchers or

certificates for families absorbed at any time during the HA fiscal

year.

HUD will, for each allocation area, fund HAs with the highest ratio

of rental vouchers or certificates billed and families absorbed in the

HA's total rental voucher and certificate program. HUD will divide the

total number of rental vouchers and certificates billed and families

absorbed by the total number of rental vouchers and certificates on the

most recent HUD-approved budget in an HA's program. The resulting

percentage (rounded to four decimal places) will be used to rank HAs

for funding. Receiving HAs will be ranked in descending order based on

the percentage of portable rental vouchers and certificates. When funds

are not available to fund the last ranked HAs with the same percentage,

the HUD Office will distribute the balance of the funds evenly to the

HAs with the same percentage.

(5) Potential Additional Funding

If additional rental voucher or rental certificate funding becomes

available for fair share use during FY 95, the Department plans to

distribute any additional funding to HUD Offices using the same

percentage distribution as reflected in Attachment 1 to this NOFA. Any

additional funding will be used under the competitive requirements of

this NOFA to fund HA applications which were approvable but not funded,

or approved and funded at less than 100 percent of the requested

amount.

(1) All the items in Section I.(D), Application Submission

Requirements--General, of this NOFA must be included in the application

submitted to the HUD Office.

(2) The application should include a narrative description of how

the application meets, or will meet, the application selection

criteria. Failure to submit a narrative description is not cause for

application rejection; however, the HUD Office can only rate and rank

the application based on information the HUD Office has on-hand.

(3) Attachment 1 to this notice lists the HUD Offices and an

estimate of the number of rental vouchers and certificates and budget

authority available for each allocation area within the HUD State or

Area Office jurisdiction. HAs should limit their applications for the

``fair share'' program to a reasonable number of rental vouchers and

rental certificates, based on the capacity of the HA to lease-up within

12 months of ACC execution. The number of rental vouchers or

certificates on the HA application, excluding those designated as

portability reimbursements, may not exceed the lesser of: (a) ten

percent (10%) of the total rental vouchers and rental certificates on

the most recent HUD-approved budget for the HA; or (b) 50 percent of

the number of units available for the allocation area.

(4) Each HA that intends to apply for rental vouchers or

certificates as reimbursement for families that exercised their rights

to portability must attach the portability certification (See

Attachment 2 to this NOFA) to its fair share application (Form HUD-

52515). Otherwise, the HA application will be considered only for fair

share funding. HAs must provide the following portability information

to be considered for this special funding:

(i) List the number of units by bedroom size for all rental

vouchers and certificates for which the receiving HA billed another HA

and for all families that an HA absorbed into its program.

(ii) List the number of rental vouchers and certificates by bedroom

size that the HA is requesting under the fair share funding.

(iii) Provide the certification as to the number of rental vouchers

or certificates for which the receiving HA is billing under portability

or the number of families it has absorbed.

(5) HAs may submit only one application (Form HUD-52515) for an

allocation area and must submit a separate application for each

allocation area. The total number of rental vouchers or certificates

for which an HA applies may not exceed the lesser of ten percent of its

program size or 50 percent of the rental vouchers and certificates

available for the allocation area.

(6) The HUD Office will reduce the number of rental vouchers and

certificates requested in any application that exceeds the established

application limit to the lesser of ten percent of the total rental

vouchers and rental certificates on the latest HUD-approved budget or

50 percent of the units available for the allocation area.

(D) Fair Share Application Rating Process

The HUD Office must use the Selection Criteria shown below for the

rating of applications submitted in response to this NOFA. The maximum

score under the selection criteria for fair share funding is 120.

(1) Selection Criterion 1: Unmet Housing Needs (50 points)

(a) Description: This criterion assesses the unmet housing need in

the primary area specified in the HA's application compared to the

unmet housing need for the allocation area. Unmet housing need is

defined as the number of very low-income renter households with housing

problems based on 1990 Census, minus the number of Federally-assisted

housing units provided since the 1990 Census.

In awarding points under this criterion, HUD will, to the extent

practicable, consider all units provided since the 1990 Census under

the Section 8 Rental Voucher and Certificate programs, any other

Section 8 programs, the Public and Indian Housing programs, the Section

202 program, and the Farmers Home Administrations's Section 515 Rural

Rental Housing program.

(b) Rating and Assessment: The number of points assigned is based

on the percentage of the allocation area's unmet housing need that is

within the HA's primary area. State or Regional Housing Agencies will

receive points based on the areas they intend to serve with this

allocation, e.g., the entire allocation area or the localities within

the allocation area specified in the application. The HUD Office will

assign one of the following point totals:

50 points. If the HA's percentage of unmet housing need is

greater than 50 percent of the allocation area's unmet need.

45 points. If the HA's percentage of unmet housing need is

equal to or less than 50 percent but greater than 40 percent of the

allocation area's unmet need.

40 points. If the HA's percentage of unmet housing need is

equal to or less than 40 percent but greater than 30 percent of the

allocation area's unmet need.

35 points. If the HA's percentage of unmet housing need is

equal to or less than 30 percent but greater than 20 percent of the

allocation area's unmet need.

30 points. If the HA's percentage of unmet housing need is

equal to or less than 20 percent but greater than 10 percent of the

allocation area's unmet need. [[Page 12041]]

25 points. If the HA's percentage of unmet housing need is

equal to or less than 10 percent but greater than 5 of the allocation

area's unmet need.

20 points. If the HA's percentage of unmet housing is

equal to or less than 5 percent (but greater than zero) of the

allocation area's unmet need.

0 points. If the HA has no unmet housing need (zero

percent). The HUD Office will not consider for funding any HA

application receiving zero (0) points.

In accordance with Notice PIH 91-45, the HUD Office will notify the

Farmers Home Administration (FmHA) of applications it receives and ask

that FmHA provide advisory comments concerning the market for

additional assisted housing or the possible impact the proposed units

may have on FmHA projects. Applications for which FmHA has provided

comments expressing concerns about market need or the continued

stability of existing FmHA projects, with which HUD agrees, will

receive zero points for this criterion.

(2) Selection Criterion 2: Efforts of HA to Provide Area-Wide Housing

Opportunities for Families (60 points)

(a) Description: Many HAs have undertaken voluntary efforts to

provide area-wide housing opportunities for families. The efforts

described in response to this selection criterion must be beyond those

required by federal law or regulation such as the portability

provisions of the Section 8 rental voucher and certificate programs.

HAs in metropolitan and non-metropolitan areas are eligible for points

under this criterion. The HUD Office will assign points to HAs that

have established cooperative agreements with other HAs or created a

consortium of HAs in order to facilitate the transfer of families and

their rental assistance between HA jurisdictions. In addition, the HUD

Office will assign points to HAs that have established relationships

with non-profit groups to provide families with additional counseling,

or have directly provided counseling, to increase the likelihood of a

successful move by the families to areas that do not have large

concentrations of poverty.

(b) Rating and Assessment: The HUD Office will assign point values

for any of the following assessments for which the HA qualifies and add

the points for all the assessments (maximum of 60 points) to determine

the total points for this Selection Criterion:

10 points--Assign 10 points if the HA documents that it

participates in an area-wide rental voucher and certificate exchange

program where all HAs absorb portable Section 8 families.

10 Points--Assign 10 points if the HA certifies that its

administrative plan does not include a ``residency preference'' for

selection of families to participate in its rental voucher and

certificate programs or the HA certifies that it will eliminate

immediately any ``residency preference'' currently in its

administrative plan.

10 Points--Assign 10 points if the HA documents that it

has established a contractual relationship with a non-profit agency or

the local governmental entity to provide housing counseling for

families that want to move to low-poverty or non-minority areas. The

five HAs approved for the FY 93 Moving to Opportunity (MTO) for Fair

Housing Demonstration and any other HAs that receive counseling funds

from HUD in settlement of litigation involving desegregation may

qualify for points under this assessment, but these HAs must identify

all activities undertaken, other than those funded and required under

the MTO Demonstration or the court-ordered plans, to expand housing

opportunities.

10 Points--Assign 10 points if the HA documents that it

requested from HUD, and HUD approved, the authority to utilize

exceptions to the fair market rent limitations as allowed under 24 CFR

882.106(a)(4) to allow families to select units in low-poverty or non-

minority areas.

10 Points--Assign 10 points if the HA documents that it

participates with other HAs in using a metropolitan wide or combined

waiting list for selecting participants in the program.

10 Points--Assign 10 points if the HA documents that it

has implemented other initiatives that have resulted in expanding

housing opportunities in areas that do not have undue concentrations of

poverty or minority families.

(3) Selection Criterion 3: Local Initiatives (10 points)

(a) Description: The application must describe the extent to which

the HA demonstrates locally initiated efforts in support of its Rental

Voucher and Rental Certificate Program or comparable tenant-based

rental assistance programs. Evaluation of a locality's contribution is

measured competitively by the extent to which a locality is able to

provide services or cash contributions or demonstrate its intention to

provide this kind of support in the future, as compared to services or

contributions provided by other localities of like program size.

(b) Rating and Assessment: The HUD Office will assign one of two

point-values, as follows:

10 points: The State or locality provides significant

local support (e.g., financial, manpower for inspection services) to

its Rental Voucher or Rental Certificate Program.

0 points: The State or locality does not provide support

to the HA's Rental Voucher or Rental Certificate Program.

(E) Corrections to Deficient Fair Share Applications

(1) Acceptable Applications

See Section I.(G)(1) of this NOFA.

(2) Unacceptable Applications

See Section I.(G)(2) of this NOFA.

(F) Fair Share Application Selection Process

(1) Maximum Funding Allowed

Excluding rental vouchers or certificates for portability

reimbursements, the HUD Office may approve maximum funding for an HA

under this NOFA that does not exceed the lesser of 10 percent of the HA

rental vouchers and rental certificates on the latest HUD-approved

budget or 50 percent of the number of rental vouchers and certificates

available in the allocation area, whichever is less.

(2) Funding Procedure

The HUD Office must develop a procedure for approving applications

(including applications rated by the Native American Programs Office)

in rank order until all the housing assistance budget authority is

used. The HUD Office may elect to approve applications for 100 percent

of the rental vouchers or certificates requested, or the maximum number

allowed for each HA under this NOFA (not to exceed the lesser of ten

percent of the HA's program size or 50 percent of rental vouchers and

certificates available for the allocation area), in all applications

that score above a HUD Office-determined funding cut-off. The HUD

Office may elect to approve all applications using a lower percentage,

but may not approve applications at less than 80 percent of the rental

vouchers and certificates requested in all applications that score

above the HUD Office-determined funding cut-off.

The HUD Office may elect to divide applications into two categories

and to approve a different percentage of requested rental vouchers and

certificates for applications in each of the two ranking categories,

but not less than 80 percent of the rental vouchers and certificates

requested in all applications. The higher percentage of rental vouchers

and certificates requested would be approved for all

[[Page 12042]] applications in the higher category and a lower

percentage of rental vouchers and certificates requested would be

approved for all applications in the lower category. The HUD Office

must approve the same percentage (at least 80 percent) of each

application within each of the two ranking categories.

Where a HUD Office funds applications at 100 percent or 80 percent

of the rental vouchers and certificates requested according to rank

order, only to find it has some number of rental vouchers or

certificates left but not enough to fund the next fundable application,

the next rated application, or applications receiving the same score,

can be funded to the extent of the number of rental vouchers or

certificates available provided that each application receives the same

percentage even though it is less than 80 percent.

If an HA applies for a specific program (i.e., rental vouchers or

rental certificates) and funding for the specified program is not

available in the metropolitan allocation area or non-metropolitan

allocation area, the HUD Office will award the available form of

assistance, even though not specifically requested by the applicant.

The HUD State or Area Office must promptly notify the applicable

Native American Programs Office for each allocation area as to the

status of any applications from IHAs and, if applicable, the amount of

budget authority to be made available for IHA applications that were

rated high enough to receive funding. The HUD State or Area Office must

promptly notify Headquarters (Attention: Budget Division, Office of

Public and Indian Housing) of any IHA to be awarded funding so that the

funds may be re-assigned to the appropriate Native American Programs

Office.

(3) Reallocations of Funds

Each HUD Office must make every reasonable effort to use all

available funds. It may be necessary, however, to reallocate funds from

one HUD Office to another when the funds are not likely to be used in

the HUD Office to which they were initially assigned. In such cases,

the following procedures shall be followed:

(a) Reallocations within the Same State. If the allocation of funds

to a HUD Office cannot be awarded within the office jurisdiction during

Fiscal Year 1995, funds will be reallocated to another HUD Office

within the same State where they can be used during Fiscal Year 1995.

(b) Reallocations Between States. If a HUD Office cannot use funds

within the same State, those funds will be re-allocated to another HUD

Office for use in a State where they can be used during Fiscal Year

1995.

The HUD Office must follow the original fund assignments for

metropolitan and non-metropolitan areas. If there are not enough

approvable applications for the designated metropolitan or non-

metropolitan budget authority, the HUD Office may switch the budget

authority between a metropolitan and non-metropolitan area within the

same State, provided that an offsetting switch can be made in another

State within the HUD Office. If an offsetting switch cannot be made and

the metropolitan or non-metropolitan amounts require changes to the

fund assignments, the approval of the Budget Division, Office of

Management and Policy, Office of Public and Indian Housing, must be

obtained before switching budget authority between a metropolitan and a

non-metropolitan area.

(d) Requests for Reallocations. A request for approval of a

reallocation between States or between metropolitan and non-

metropolitan areas must explain the reasons that funds cannot be used

in the original State, or metropolitan and non-metropolitan area, the

amount being withdrawn, the program type, and the metropolitan/non-

metropolitan mix, and the amount to be reallocated. These requests must

be submitted to Headquarters (ATTENTION: Budget Division, Office of

Management and Policy, Office of Public and Indian Housing) for

approval.

III. Family Unification/Foster Care Program

(A) Family Unification Application Deadline Date

The Deadline date for the Family Unification Program application is

listed in Section I.(B) of the NOFA.

(B) Purpose and Substantive Description of Family Unification Program

(1) Authority

Section 8(x) of the U.S. Housing Act of 1937, 42 U.S.C. 1437f(x).

The regulations governing the section 8 rental certificate program are

codified at 24 CFR parts 882 and 982. This NOFA announces the

availability of Family Unification funding under the VA, HUD-

Independent Agencies Appropriations Act of 1995 (Pub.L. 103-327,

approved September 28, 1994).

(2) Background

The Family Unification Program is a program under which Section 8

rental assistance is provided to families for whom the lack of adequate

housing is a primary factor which would result in:

(a) The imminent placement of the family's child, or children, in

out-of-home care, or

(b) The delay in the discharge of the child, or children, to the

family from out-of-home care.

The purpose of the Family Unification Program is to promote family

unification by providing rental assistance to families for whom the

lack of adequate housing is a primary factor in the separation, or the

threat of imminent separation, of children from their families.

Rental certificates awarded under the Family Unification Program

are to be administered by HAs under HUD's regulations for the Section 8

rental certificate program (24 CFR parts 882 and subpart E of part

982). The HA may issue a rental voucher (24 CFR part 887 and subpart E

of part 982 ) to a family selected for participation in the Family

Unification Program if the family requests a rental voucher and the HA

has one available.

(3) Eligibility of HAs

HAs currently administering a rental voucher or certificate program

in the following sixteen states are eligible to apply except those HAs

determined unacceptable under section I.(D)(2) of this NOFA:

California, Florida, Georgia, Illinois, Maryland, Massachusetts,

Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina,

Ohio, Pennsylvania, Texas, and Virginia. Applications were limited to

HAs in eleven States by Congress under the VA, HUD-Independent Agencies

Appropriations Act of 1992, and the Senate Committee Report for the VA,

HUD-Independent Agencies Act of 1993 allowed HUD to expand the program

to five additional States. The selection of the five additional States

was based on the caseload of families with children in foster care

within the States. The information concerning families with children in

foster care was provided to HUD by the Administration for Children and

Families at the U.S. Department of Health and Human Services (HHS).

(4) Program Guidelines

(a) Definitions: For purposes of the Family Unification

Demonstration Program:

(i) Family Unification eligible family means a family that:

(A) The public child welfare agency has certified is a family for

whom the [[Page 12043]] lack of adequate housing is a primary factor in

the imminent placement of the family's child, or children, in out-of-

home care, or in the delay of discharge of a child, or children, to the

family from out-of-home care; and

(B) The HA has determined is eligible for Section 8 rental

assistance.

(ii) The lack of adequate housing means a situation in which a

family:

(A) Is living in substandard housing or homeless, as defined in 24

CFR 982.212 and 982.213, or

(B) Is, or will be, involuntarily displaced from a housing unit

because of actual or threatened violence against a family member under

the circumstances described in 24 CFR 982.211.

(iii) Public child welfare agency (PCWA) means the public agency

that is responsible under applicable State or Tribal law for

determining that a child is at imminent risk of placement in out-of-

home care or that a child in out-of-home care under the supervision of

the public agency may be returned to his or her family.

(b) HA Responsibilities.

HAs must:

(i) Accept families certified by the PCWA as eligible for the

Family Unification Program. If the HA has a closed waiting list, it

must reopen the waiting list to accept Family Unification applicant

families. The HA is not required to review its waiting list for

eligible families. The HA upon receipt of the PCWA list of families

currently in the PCWA caseload must compare the names with those of

families already on the HA's Section 8 waiting list. Any family on the

HA's Section 8 waiting list that matches with the PCWA's list must be

assisted in order of their position on the waiting list in accordance

with HA admission policies;

(ii) Determine if any applicants on its waiting list are living in

temporary shelters or on the street, and refer such applicants to the

PCWA;

(iii) Determine if families referred by the PCWA are eligible for

Section 8 assistance and place eligible families on the Section 8

waiting list;

(iv) Amend the administrative plan in accordance with applicable

program regulations and requirements;

(v) Administer the rental assistance in accordance with applicable

program regulations and requirements; and

(vi) Assure the quality of the evaluation that HUD intends to

conduct on the Family Unification Program, and cooperate with and

provide requested data to the HUD office or HUD-approved contractor

responsible for program evaluation.

child welfare agencies must:

(i) Establish and implement a system to identify Family Unification

eligible families within the agency's caseload and to review referrals

from the HA;

(ii) Provide written certification to the HA that a family

qualifies as a Family Unification eligible family;

(iii) Commit sufficient staff resources to ensure that Family

Unification eligible families are identified and certified in a timely

manner; and

(iv) Cooperate with the evaluation that HUD intends to conduct on

the Family Unification Program, and submit a certification with the

HA's application for Family Unification funding that the PCWA will

agree to cooperate with and provide requested data to the HUD office or

HUD-approved contractor having responsibility for program evaluation.

(d) Section 8 Rental Certificate Assistance.

The Family Unification Program provides assistance under the

Section 8 rental assistance programs. Although HUD is providing a

special allocation of rental certificates, the HA may use both rental

vouchers and certificates to assist families under this program.

HAs must administer this program in accordance with HUD's

regulations governing the Section 8 rental certificate and rental

voucher programs. The HA may issue a rental voucher to a family

selected to participate in the Family Unification Program if the family

requests a rental voucher and the HA has one available. If Section 8

assistance for a family under this program is terminated, the rental

assistance must be reissued to another Family Unification eligible

family during the five-year term of the ACC for the Section 8 rental

certificates provided under this program.

This NOFA announces the availability of up to $76 million for the

Family Unification Program which will support assistance for about

2,000 families. Each HA may apply for funding for a maximum of 50

units.

The amounts allocated under this NOFA will be awarded under a

national competition based on demonstrated need for such assistance and

a lottery for selection from all approvable applications. The Family

Unification Program is exempt from the fair share allocation

requirements of section 213(d) of the Housing and Community Development

Act of 1974, and from 24 CFR part 791, subpart D, the HUD regulation

implementing section 213(d).

(D) Family Unification Application Submission Requirements

(1) Letter of Intent and Narrative

All the items in this Section and Section I.(D), Application

Submission Requirements--General, must be included in the application

submitted to the HUD Office. The application must include an

explanation of how the application meets, or will meet, Threshold

Criteria 1 through 4 in Section III.(E)(2) below.

The application must also include a letter of intent from the PCWA

stating its commitment to provide resources and support for the Family

Unification Program. The PCWA letter of intent must explain:

(i) The method used to identify eligible families,

(ii) The process to certify eligible families,

(iii) The PCWA assistance to families to locate suitable housing,

(iv) The staff resources committed to the program, and

(v) PCWA experience with the administration of similar programs

including cooperation with an HA.

The PCWA serving the jurisdiction of the HA is responsible for

providing the information for Threshold Criterion 4, PCWA Statement of

Need for Family Unification Program, to the HA for submission with the

HA application. The application must include a statement by the PCWA

describing the need for a Family Unification Program. This should

include a discussion of the case-load of the PCWA and information about

homelessness, family violence resulting in involuntary displacement,

number and characteristics of families who are experiencing the

placement of children in out-of-home care as a result of inadequate

housing, and the PCWA's experience in obtaining housing through HUD

assisted housing programs and other sources for families lacking

adequate housing. A State-wide Public Child Welfare Agency must provide

information on Threshold Criterion 4, PCWA Statement of Need for Family

Unification Program, to all HAs that request data; otherwise, HUD will

not consider applications from any HAs with the State-wide PCWA as a

participant in its program. The HA must state in its cover letter to

the application whether it will accept a reduction in the number of

rental certificates and the minimum number of rental certificates it

will accept since the funding is limited and HUD may only have enough

funds to approve a smaller amount than [[Page 12044]] the number of

rental certificates requested.

(2) Evaluation Certifications

The HA and the PCWA in separate certifications must state that the

HA and Public Child Welfare Agency agree to cooperate with HUD and

provide requested data to the HUD office or HUD-approved contractor

delegated the responsibility for the program evaluation. No specific

language for this certification is prescribed by HUD.

(E) Family Unification Application Rating Process

(1) General

The HUD Office is responsible for rating the applications, and HUD

Headquarters is responsible for selection of applications (including

applications rated by the Native American Programs Office) that will

receive assistance under the Family Unification Program. The HUD Office

will initially screen all applications and determine any technical

deficiencies based on the application submission requirements.

Each application submitted in response to the NOFA must receive, in

order to be eligible for funding, at least 30 points for Threshold

Criterion 1: Unmet Housing Needs; at least 10 points for Threshold

Criterion 2: Efforts of HA to Provide Area-Wide Housing Opportunities

for Families; and must meet the requirements for Threshold Criterion 3:

Coordination between HA and Public Child Welfare Agency, and Threshold

Criterion 4: Public Child Welfare Agency Statement of Need for Family

Unification Program.

(2) Threshold Criteria

(a) Selection Criterion 1: Unmet Housing Needs (50 points).

(i) Description: This criterion assesses the unmet housing need in

the primary area specified in the HA's application compared to the

unmet housing need for the allocation area. Unmet housing need is

defined as the number of very low-income renter households with housing

problems based on 1990 Census, minus the number of Federally-assisted

housing units provided since the 1990 Census.

In awarding points under this criterion, HUD will, to the extent

practicable, consider all units provided since the 1990 Census under

the Section 8 Rental Voucher and Certificate programs, any other

Section 8 programs, the Public and Indian Housing programs, the Section

202 program, and the Farmers Home Administration's Section 515 Rural

Rental Housing program.

(ii) Rating and Assessment: The number of points assigned is based

on the percentage of the allocation area's unmet housing need that is

within the HA's primary area. State or Regional Housing Agencies will

receive points based on the areas they intend to serve with this

allocation, e.g., the entire allocation area or the localities within

the allocation area specified in the application. The HUD Office will

assign one of the following point totals:

50 points. If the HA's percentage of unmet housing need is

greater than 50 percent of the allocation area's unmet need.

45 points. If the HA's percentage of unmet housing need is

equal to or less than 50 percent but greater than 40 percent of the

allocation area's unmet need.

40 points. If the HA's percentage of unmet housing need is

equal to or less than 40 percent but greater than 30 percent of the

allocation area's unmet need.

35 points. If the HA's percentage of unmet housing need is

equal to or less than 30 percent but greater than 20 percent of the

allocation area's unmet need.

30 points. If the HA's percentage of unmet housing need is

equal to or less than 20 percent but greater than 10 percent of the

allocation area's unmet need.

25 points. If the HA's percentage of unmet housing need is

equal to or less than 10 percent but greater than 5 of the allocation

area's unmet need.

20 points. If the HA's percentage of unmet housing is

equal to or less than 5 percent (but greater than zero) of the

allocation area's unmet need.

0 points. If the HA has no unmet housing need (zero

percent). The HUD Office will not consider for funding any HA

application receiving zero (0) points.

In accordance with Notice PIH 91-45, the HUD Office will notify the

Farmers Home Administration (FmHA) of applications it receives and ask

that FmHA provide advisory comments concerning the market for

additional assisted housing or the possible impact the proposed units

may have on FmHA projects. Applications for which FmHA has provided

comments expressing concerns about market need or the continued

stability of existing FmHA projects, with which HUD agrees, will

receive zero points for this criterion.

(b) Selection Criterion 2: Efforts of HA to Provide Area-Wide

Housing Opportunities for Families (60 points).

(i) Description: Many HAs have undertaken voluntary efforts to