Office of the Assistant Secretary for Public and Indian Housing; NOFA for the Family Unification Program, Fiscal Year 1996

SUMMARY: This notice announces the availability of up to $32 million

(approximately) in 2-year budget authority for FY 1996 for section 8

rental certificates under the Family Unification Program, which will

support approximately 1,600 families. Public housing agencies (PHAs)

and Indian Housing Authorities (IHAs), herein referred to as housing

agencies (HAs), are invited to submit applications for housing

assistance.

The purpose of the Family Unification Program is to provide housing

assistance to families for whom the lack of adequate housing is a

primary factor in the separation, or imminent separation, of children

from their families. As was the case in prior years, participation in

the Family Unification Program is limited to HAs in 16 States. The 16

States are: California, Florida, Georgia, Illinois, Maryland,

Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York,

North Carolina, Ohio, Pennsylvania, Texas, and Virginia.

DATES: The application deadline for the Family Unification program NOFA

is July 1, 1996, 3:00 p.m., local time.

The above-stated application deadline is 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.

ADDRESSES: The local HUD State or Area Office, Attention: Director,

Office of Public Housing, is the official place of receipt for all

applications, except applications from Indian Housing Authorities

(IHAs). The local HUD Native American Programs Office, Attention:

Administrator, Office of Native American Programs, is the place of

official receipt for IHA applications. 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 will be

used.

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

Division, Office of Rental Assistance, Department of Housing and Urban

Development, 451 Seventh Street, SW., Washington, DC 20410-8000,

telephone number (202) 708-0477 (this is not a toll-free number). For

hearing- and speech-impaired persons, this number may be accessed via

TTY (text telephone) by calling the Federal Information Relay Service

at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The section 8 information collection requirements contained in this

NOFA have been approved by the Office of Management and Budget in

accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-

3520), and assigned OMB control number 2577-0169. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless the collection displays a valid

control number.

Family Self-Sufficiency (FSS) Program Requirement

Unless specifically exempted by HUD, all rental voucher or rental

certificate funding reserved in FY 1996 (except funding for renewals or

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

program.

A. Purpose and Substantive Description of Family Unification Program

(1) Authority. The Family Unification Program is authorized by

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

1437f(x).

(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 982). The HA may issue

a rental voucher (24 CFR parts 887 and 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.--(a) Family Unification Program

Eligibility. Consistent with previous NOFAs, HAs currently

administering a rental voucher or certificate program in the following

16 States are eligible to apply (except those HAs determined

unacceptable under section A.(3)(b) of this NOFA): California, Florida,

Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota,

Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania,

Texas, and Virginia.

(b) Eligibility for HUD-Designated Housing Agencies with Major

Program Findings. HUD will establish a pass or fail threshold for all

HAs. An HA that fails the threshold will not be eligible to apply

without another entity to administer the program. 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 the Family Unification Program, the HA must submit an

application that designates another housing agency, nonprofit 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

[[Page 19763]]

agencies may be notified by HUD at other times as HUD deems

appropriate.

(4) Program Guidelines.--(a) Eligibility.--(i) Family Unification

eligible families. Each HA must modify, in accordance with program

rules, its selection preference system to permit the selection of

Family Unification eligible families for the program based on available

funding provided by HUD for this purpose. The term ``Family Unification

eligible family'' means a family that:

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

whom the 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) Lack of Adequate Housing. The lack of adequate housing means:

(A) A family is living in substandard housing; or

(B) A family is homeless; or

(C) A family is displaced by domestic violence; or

(D) A family is living in an overcrowded unit.

(iii) Substandard Housing. A family is living in substandard

housing if the unit where the family lives:

(A) Is dilapidated;

(B) Does not have operable indoor plumbing;

(C) Does not have a usable flush toilet inside the unit for the

exclusive use of a family;

(D) Does not have a usable bathtub or shower inside the unit for

the exclusive use of a family;

(E) Does not have electricity, or has inadequate or unsafe

electrical service;

(F) Does not have a safe or adequate source of heat;

(G) Should, but does not, have a kitchen; or

(H) Has been declared unfit for habitation by an agency or unit or

government.

(iv) Dilapidated Housing. A family is living in a housing unit that

is dilapidated if it does not provide safe and adequate shelter, and in

its present condition endangers the health, safety, or well-being of a

family, or it has one or more critical defects, or a combination of

intermediate defects in sufficient number or extent to require

considerable repair or rebuilding. The defects may involve original

construction, or they may result from continued neglect or lack of

repair or from serious damage to the structure.

(v) Homeless. A homeless family includes any person or family that:

(A) Lacks a fixed, regular, and adequate nighttime residence; and

(B) Has a primary nighttime residence that is:

(1) A supervised publicly or privately operated shelter designed to

provide temporary living accommodations (including welfare hotels,

congregate shelters, and transitional housing);

(2) An institution that provides a temporary residence for persons

intended to be institutionalized; or

(3) A public or private place not designed for, or ordinarily used

as, a regular sleeping accommodation for human beings.

(vi) Detained Family. A Family Unification eligible family does not

include any person imprisoned or otherwise detained pursuant to an Act

of the Congress or a State law.

(vii) Displaced by Domestic Violence. A family is displaced by

domestic violence if:

(A) The applicant has vacated a housing unit because of domestic

violence; or

(B) The applicant lives in a housing unit with a person who engages

in domestic violence.

(C) ``Domestic violence'' means actual or threatened physical

violence directed against one or more members of the applicant family

by a spouse or other member of the applicant's household.

(viii) Qualify as Involuntarily Displaced. For an applicant to

qualify as involuntarily displaced because of domestic violence:

(A) The HA must determine that the domestic violence occurred

recently or is of a continuing nature; and

(B) The applicant must certify that the person who engaged in such

violence will not reside with the applicant family unless the HA has

given advance written approval. If the family is admitted, the HA may

deny or terminate assistance to the family for breach of this

certification.

(ix) Overcrowded Housing. A family is considered to be living in an

overcrowded unit if:

(A) The family is separated from its children and the parent(s) are

living in an otherwise standard housing unit, but, after the family is

re-united, the parents' housing unit would be overcrowded for the

entire family and would be considered substandard.

(B) The family is living with its children in a unit that is

overcrowded for the entire family and this overcrowded condition may

result in the imminent placement of a child or children in out-of-home

care.

(C) For purpose of this paragraph (ix), the HA shall have

discretion to determine whether the unit is ``overcrowded'' in

accordance with HA occupancy standards.

(x) 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 Program

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 families with children on its waiting list

are living in temporary shelters or on the street and may qualify for

the Family Unification Program, 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.

(c) Public Child Welfare Agency (PCWA) Responsibilities. Public

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 based upon the

criteria established in Section 8(x) of the United States Housing Act

of 1937, HUD regulations, and the HA policies implementing the

regulations;

(iii) Commit sufficient staff resources to ensure that Family

Unification eligible families are identified and

[[Page 19764]]

certified in a timely manner and to provide follow-up supportive

services after the families lease units; 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 2-year term of the Annual Contributions Contract

(ACC) for the Section 8 rental certificates provided under this

program.

B. Family Unification Allocation Amounts

This NOFA announces the availability of up to $32 million for the

Family Unification Program which will support assistance for about

1,600 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 the threshold criteria 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 (42

U.S.C. 1439(d)) and the implementing regulations at 24 CFR part 791,

subpart D. Applications that meet the requirements of this NOFA and are

included in the FY 1996 lottery, but that are not selected, may be

considered for funding from funds available, if any, in FY 1997

appropriations designated for the Family Unification Program.

C. Family Unification Application Submission Requirements

(1) Forms. Application forms may be obtained from the local HUD

Office. Applications must include the following, unless otherwise

specifically excepted:

(a) Form HUD-52515. An Application for Existing Housing, Form HUD-

52515, must be completed in accordance with the program regulations (24

CFR 982.102). An application must include the information in Section C,

Average Monthly Adjusted Income, 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.

(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.

(c) Certification Regarding Lobbying. 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, but IHAs established under State law are not excluded

from the coverage. HAs may obtain a copy of the certification and the

Form SF-LLL from the local HUD Office.

(2) 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.

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. Because 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.

(3) Letter of Intent and Narrative. All the items in this Section

must be included in the application submitted to the HUD Office. 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 the number of rental certificates requested. The application must

include an explanation of how the application meets, or will meet,

Threshold Criteria 1 through 4 in Section D of this NOFA, 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 definition of eligible families;

(ii) The method used to identify eligible families;

(iii) The process to certify eligible families;

(iv) The PCWA assistance to families to locate suitable housing;

(v) The staff resources committed to the program; and

(vi) PCWA experience with the administration of similar programs

including cooperation with a 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

[[Page 19765]]

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.

(4) 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.

D. Family Unification Application Rating Process

(1) General. The HUD Office is responsible for rating the

applications for the selection criteria established in this NOFA, 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, in order to be

eligible for funding, must receive at least 30 points for Threshold

Criterion 1, Unmet Housing Needs, and at least 20 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) THRESHOLD 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.

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

equal to or less than 10 percent of the allocation area's unmet need.

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, or its successor agency under Public Law

103-354 (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) THRESHOLD CRITERION 2: EFFORTS OF HA TO PROVIDE AREA-WIDE

HOUSING OPPORTUNITIES FOR FAMILIES (60 POINTS).

(i) 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 nonprofit 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.

(ii) 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 nonprofit 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 1993 Moving to Opportunity (MTO) for Fair

Housing Demonstration and any other HAs that receive counseling funds

from HUD (e.g., in settlement of litigation involving desegregation or

demolition of public housing, mixed population projects) may qualify

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

activities undertaken, other than those funded by HUD, 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

[[Page 19766]]

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.

(c) THRESHOLD CRITERION 3: COORDINATION BETWEEN HA AND PUBLIC CHILD

WELFARE AGENCY TO IDENTIFY AND ASSIST ELIGIBLE FAMILIES.

The application must describe the method that the HA and the PCWA

will use to identify and assist Family Unification eligible families.

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

its commitment to provide resources and support for the program. The

PCWA letter of intent and other information must be comprehensive and

must include an explanation of: the method used to identify eligible

families, the PCWA's certification process for determining Family

Unification eligible families, the responsibilities of each agency, the

PCWA assistance provided to families in locating housing units, the

PCWA staff resources committed to the program, the past PCWA experience

administering a similar program, and the PCWA/HA cooperation in

administering a similar program.

(d) THRESHOLD CRITERION 4: PUBLIC CHILD WELFARE AGENCY STATEMENT OF

NEED FOR FAMILY UNIFICATION PROGRAM.

The application must include a statement by the PCWA describing the

need for a program providing assistance to families for whom lack of

adequate housing is a primary factor in the placement of the family's

children in out-of-home care or in the delay of discharge of the

children to the family from out-of-home care in the area to be served,

as evidenced by the caseload of the public child welfare agency. The

PCWA must adequately demonstrate that there is a need in the HA's

jurisdiction for the Family Unification program that is not being met

through existing programs. The narrative must include specific

information relevant to the area to be served, 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 or the delayed discharge of children from

out-of-home care as the result of inadequate housing, and the PCWA's

past experience in obtaining housing through HUD assisted programs and

other sources for families lacking adequate housing.

E. Corrections to Deficient Family Unification Applications

(1) Acceptable Applications. To be eligible for processing, an

application must be received by the appropriate HUD Office no later

than the date and time specified in 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.

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 14th calendar day of the correction

period will not be accepted and the application will be rejected as

incomplete.

(2) Unacceptable Applications. (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 noncompliance.

(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 management review findings for one or more of its

Rental Voucher, Rental Certificate, or Moderate Rehabilitation

Programs, or, in the case of a 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 A.(3)(b) 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) A HA application that does not comply with the requirements

of 24 CFR 982.102 and this NOFA, after the expiration of the 14-

calendar day technical deficiency correction period will be rejected

from processing.

(viii) A HA application submitted after the deadline date.

(ix) The application is from a HA that has failed to achieve a

lease-up rate of 90 percent 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.

F. Family Unification Application Selection Process

After the HUD Office has screened HA applications and disapproved

any applications unacceptable for further processing (See Section E.(2)

of this NOFA), the HUD Office will review and rate all approvable

applications, utilizing the Threshold Criteria and the point

assignments listed in this NOFA. Each HUD Office will send to HUD

Headquarters the following information on each application that passes

the Threshold Criteria:

(1) Name and address of the HA;

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(2) Name and address of the Public Child Welfare Agency;

(3) State Office, Area Office, or Native American Programs Office

contact person and telephone number;

(4) The number of rental certificates in the HA application and

minimum number of rental certificates specified in the HA application,

and the corresponding budget authority acceptable to the HA; and

(5) A completed fund reservation worksheet for the number of rental

certificates requested in the application.

HUD Headquarters will select eligible HAs to be funded based on a

lottery. All HAs identified by the HUD Offices as meeting the Threshold

Criteria identified in this NOFA will be eligible for the lottery

selection process. As HAs are selected, the costs of funding the

applications will be counted against the total funds available for the

Family Unification Program. In order to achieve geographic diversity,

HUD Headquarters will limit the number of applications selected for

funding under the lottery for any State to 10 percent of the budget

authority made available under this NOFA.

Applications will be funded in full for the number of rental

certificates requested by the HA in accordance with the NOFA. However,

when remaining rental certificate funds are insufficient to fund the

last HA application in full, HUD Headquarters may fund that application

to the extent of the funding available and the applicant's willingness

to accept a reduced number of rental certificates. Applicants that do

not wish to have the size of their programs reduced may indicate in

their applications that they do not wish to be considered for a reduced

award of funds. HUD Headquarters will skip over these applicants if

assigning the remaining funding would result in a reduced funding

level.

G. Other Matters

Environmental Impact

A Finding of No Significant Impact with respect to the environment

for all funding available under this NOFA has been made in accordance

with the Department's regulations at 24 CFR part 50, which implement

section 102(2)(C) of the National Environmental Policy Act of 1969 (42

U.S.C. 4332). The Finding is available for public inspection between

7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket

Clerk, Office of General Counsel, Department of Housing and Urban

Development, room 10276, 451 Seventh Street, SW, Washington, D.C.

20410.

Federalism Impact

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

of Executive Order 12612, Federalism, has determined that the policies

contained in this notice will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

Federal Government and the States, or on the distribution of power and

responsibilities among the various levels of government. As a result,

the notice is not subject to review under the Order. This notice is a

funding notice and does not substantially alter the established roles

of the Department, the States, and local governments, including HAs.

Impact on the Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this notice does not have

potential for significant impact on family formation, maintenance, and

general well-being within the meaning of the Executive Order and, thus,

is not subject to review under the Order. This is a funding notice and

does not alter program requirements concerning family eligibility.

Section 102 of the HUD Reform Act: Documentation and Public Access

Requirements

HUD will ensure that documentation and other information regarding

each application submitted pursuant to this NOFA are sufficient to

indicate the basis upon which assistance was provided or denied. This

material, including any letters of support, will be made available for

public inspection for a five-year period beginning not less than 30

calendar 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.)

Section 103 of the HUD Reform Act

HUD's regulation implementing section 103 of the Department of

Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a)

(Reform Act), codified as 24 CFR part 4, 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 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 under 24 CFR part 4.

Applicants or employees who have ethics-related questions should

contact the HUD Office of Ethics (202) 708-3815 (TDD/Voice) (this is

not a toll-free number). Any HUD employee who has specific program

questions, such as whether particular subject matter can be discussed

with persons outside the Department, should contact the appropriate

Field Office Counsel or Headquarters counsel for the program to which

the question pertains.

Prohibition Against Lobbying Activities

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

disclosure requirements and prohibitions of section 319 of the

Department of Interior and Related Agencies Appropriations Act for

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

Dated: April 23, 1996.

Michael B. Janis,

General Deputy Assistant Secretary for Public and Indian Housing.

[FR Doc. 96-10886 Filed 5-1-96; 8:45 am]

BILLING CODE 4210-33-P