Office of the Assistant Secretary for Fair Housing and Equal Opportunity; NOFA for Fair Housing Initiatives Program; FY 1996 Competitive Solicitation

SUMMARY: This NOFA announces the availability of up to $12,106,000 of

1996 Fiscal Year (FY) funding for the Fair Housing Initiatives Program

(FHIP). This program assists projects and activities designed to

enforce and enhance compliance with the Fair Housing Act and

substantially equivalent State and local fair housing laws. In the body

of this document is information concerning the purpose of the NOFA,

eligibility, available amounts, selection criteria, how to apply for

funding, and how selections will be made.

DATES: An application kit for funding under this Notice will be

available following publication of the NOFA. The actual application due

date will be specified in the application kit. However, applicants will

be given at least 60 days from today's date, until July 23, 1996, to

submit their applications. Applications will be accepted if they are

received on or before the application due date, or are received within

7 days after the application due date, but with a U.S. postmark or

receipt from a private commercial delivery service (such as, Federal

Express or DHL) that is dated on or before the application due date.

ADDRESSES: To obtain a copy of the application kit, please write the

Fair Housing Information Clearinghouse, P.O. Box 9146, McLean, VA

22102, or call the toll free number 1-800-343-3442 (voice) or 1-800-

290-1617 (TTY). Please also contact this number if information

concerning this NOFA is needed in an accessible format.

FOR FURTHER INFORMATION CONTACT: Sharon Bower, Special Assistant,

Office of Fair Housing Initiatives and Voluntary Programs, Room 5234,

451 Seventh Street, S.W., Washington, D.C. 20410-2000. Telephone number

(202) 708-0800. A telecommunications device for hearing and speech

impaired persons is available at (202) 708-0800. (These are not toll-

free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection requirements contained in this NOFA have

been approved by the 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 2529-0033. 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.

I. Purpose and Substantive Description

(a) Authority

Title VIII of the Civil Rights Act of 1968, as amended, 42 U.S.C.

3601-19 (Fair Housing Act), charges the Secretary of Housing and Urban

Development with responsibility to accept and investigate complaints

alleging discrimination based on race, color, religion, sex, handicap,

familial status or national origin in the sale, rental, or financing of

most housing. In addition, the Fair Housing Act directs the Secretary

to coordinate action with State and local agencies administering fair

housing laws and to cooperate with, and render technical assistance to,

public or private entities carrying out programs to prevent and

eliminate discriminatory housing practices.

Section 561 of the Housing and Community Development Act of 1987,

42 U.S.C. 3616 note, established the Fair Housing Initiatives Program

(FHIP) to strengthen the Department's enforcement of the Fair Housing

Act and to further fair housing. This program assists projects and

activities designed to enforce and enhance compliance with the Fair

Housing Act and substantially equivalent State and local fair housing

laws. Implementing regulations are found at 24 CFR part 125.

Three general categories of activities were established at 24 CFR

part 125 for FHIP funding under section 561 of the Housing and

Community Development Act of 1987: the Administrative Enforcement

Initiative, the Education and Outreach Initiative, and the Private

Enforcement Initiative. Section 905 of the Housing and Community

Development Act of 1992 (HCDA 1992) (Pub. L. 102-550, approved October

28, 1992), amended section 561 by adding specific eligible applicants

and activities to the Education and Outreach and Private Enforcement

Initiatives, as well as an entirely new Fair Housing Organizations

Initiative.

More significantly, section 905 has established FHIP as a permanent

program. The final rule implementing these statutory amendments was

published on November 27, 1995 (60 FR 58446).

The primary objective of this NOFA is to provide funds for the

purpose of sustaining and supporting the activities of fair housing

enforcement organizations. The limited amount of funding prevents the

Department from embarking on new projects or initiatives. Instead, it

prompts the Department to promote supporting those new fair housing

enforcement organizations created under previous FHIP competitions and

giving preference to those FHIP recipients whose grants expire between

September 30, 1995 and December 31, 1996.

Definitions: The term ``qualified fair housing enforcement

organization'' (the only eligible applicants under this NOFA) is given

a specific definition in section 905. In addition, the November 27,

1995 final rule defines the term ``meritorious claim,'' which is used

in the statutory definition of ``qualified fair housing enforcement

organization.'' Applicants should note that the definition of

``meritorious claim'' is only relevant as a part of the definition of

QFHO, and does not impose a limit on the kinds of activities that may

be funded under FHIP. These definitions, which apply to this NOFA, are

as follows:

Qualified fair housing enforcement organization (QFHO) means any

organization, whether or not it is solely engaged in fair housing

enforcement activities, that--

(1) Is organized as a private, tax-exempt, nonprofit, charitable

organization;

(2) Has at least 2 years experience in complaint intake, complaint

investigation, testing for fair housing violations and enforcement of

meritorious claims; and

(3) Is engaged in complaint intake, complaint investigation,

testing for fair housing violations and enforcement of meritorious

claims at the time of application for FHIP assistance. For the purpose

of meeting the 2-year qualification period for these activities it is

not necessary that the activities were conducted simultaneously, as

long as each activity was conducted for 2 years. It is also not

necessary for the activities to have been conducted for 2 consecutive

or continuous years. An organization may aggregate its experience in

each activity over the 3 year period preceding its application to meet

the 2-year qualification period requirement.

Meritorious claims means enforcement activities by an

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organization that resulted in lawsuits, consent decrees, legal

settlements, HUD and/or substantially equivalent agency (under 24 CFR

115.6) conciliations and organization initiated settlements with the

outcome of monetary awards for compensatory and/or punitive damages to

plaintiffs or complaining parties, or other affirmative relief,

including the provision of housing.

On July 14, 1995, HUD announced a public meeting to be held July

21, 1995 (60 FR 36301). The purpose of the meeting was to solicit

comments on the FHIP. Additionally, on August 3, 1995, HUD invited

written public comments on the FHIP (60 FR 39769). During the comment

period, which ended August 15, 1995, HUD received public comments. HUD

is grateful for public comments and has considered them in the

development of the FY 1996 FHIP NOFA and Application Kit.

The program components of FHIP are described in the Catalog of

Federal Domestic Assistance at 14.409, Education and Outreach

Initiative; 14.410, Private Enforcement Initiative; and 14.413, Fair

Housing Organizations Initiative.

(b) Allocation Amounts

For FY 1996, The Omnibus Consolidated Rescissions and

Appropriations Act of 1996 (Pub. L. 104-134, approved April 26, 1996)

appropriated $30 million for Fair Housing activities, of which $17

million is being made available for the FHIP. Of this amount,

$4,894,000 is being utilized for the FY 1996 funding of FY 1995 awards.

These awards were made to nine organizations that submitted

applications under the FY 1995 FHIP NOFA and received scores making

them the next eligible applicants for funding, but that did not receive

FY 1995 funding. The remaining $12,106,000 is being made available on a

competitive basis to eligible organizations that submit timely

applications and are selected in response to this NOFA. The funding

selections will be made on the basis of criteria for eligibility,

factors for award, and completeness of budget information, and any

other factors described in this NOFA under the heading, below,

Selection Process.

The full cost of FY 1996 multi-year awards under the Private

Enforcement Initiative will be funded from FY 96 funds. Recipients of

48 month PEI FHIP grant awards based upon applications submitted under

the FY 1995 FHIP NOFA, RFA-95-1 (FR-3878, published April 11, 1995, 60

FR 18444), may not apply in the FY 1996 competition for multi-year

Private Enforcement Initiative awards.

The Department retains the right to shift funds among the FHIP

Initiatives listed below, within statutorily prescribed limitations.

The amounts included in this NOFA are subject to change based on fund

availability. The amount of FY 1996 funding available for the FHIP is

divided among three FHIP Initiatives as follows:

(1) Education and Outreach Initiative (EOI). The amount of

$2,000,000 in FY 1996 funds is being used for the Education and

Outreach Initiative for single year projects. Of this amount, $185,677

is made available under this NOFA for national Education and Outreach

Initiative programs, with an award cap of $185,677, and $1.0 million in

FY 1996 funds is made available under this NOFA for regional, local,

and community based programs, with an award cap of $125,000.

Furthermore, $814,323 will be utilized for the FY 1996 funding of FY

1995 awards.

(2) Private Enforcement Initiative (PEI). The amount of $12 million

in FY 1996 funds is being used for the PEI. Funds are made available

under this NOFA in the amount of $7,920,323 for 24 to 36 month

projects, with an award cap of $500,000 and with incremental funding

during the life of the award subject to periodic performance reviews.

The amount of $4,079,677 will be used for the FY 1996 funding of FY

1995 awards.

Recipients of multi-year PEI awards based upon applications

submitted under RFA 95-1 for 48-month projects may not apply for multi-

year PEI funds made available under this NOFA. This restriction does

not apply to 24 month projects with FY 95 funding.

(3) Fair Housing Organizations Initiative (FHOI). The amount of

$3,000,000 is made available under this NOFA for the FHOI, to be used

for the continued development of fair housing enforcement

organizations, with an award cap of $250,000.

(c) Eligibility

Eligible activities, eligible applicants, and additional

requirements under each Initiative are listed below. All activities and

materials funded by FHIP must be reasonably accessible to persons with

disabilities.

(1) Education and Outreach Initiative.

(i) Eligible applicants. The only organizations that are eligible

to receive FY 1996 funding under the Education and Outreach Initiative

are qualified fair housing enforcement organizations (QFHOs);

(ii) Eligible activities. (A) In general. Each application for

Education and Outreach Initiative funding must identify if it proposes

a national, regional, local, or community-based program. The kinds of

activities that may be funded through this Initiative may include (but

are not limited to) the following:

(1) Activities that support the Fair Housing planning requirement

of State and local governments subject to the Consolidated Plan (24 CFR

part 91). These activities include (a) conducting an analysis of

impediments to fair housing choice and (b) undertaking actions to

eliminate the identified impediments.

(2) Informing persons with disabilities, and/or their support

organizations and service providers, housing providers, and the general

public on the rights of disabled persons under the Fair Housing Act and

on the location or availability of accessible housing or the

modification of non-accessible housing;

(3) Providing guidance to housing providers on meeting their Fair

Housing Act obligation to make reasonable accommodations for persons

with disabilities;

(4) Providing fair housing counseling services, including the

subjects of pre- and post-purchase counseling (mortgage lending,

appraisal, and insurance and/or rental);

(5) Developing informative material on fair housing rights and

responsibilities;

(6) Developing fair housing and affirmative marketing instructional

material for educational programs for housing industry groups;

(7) Providing educational materials, seminars and working sessions

for schools, civic associations, neighborhood organizations, and other

groups to support community based education and outreach efforts;

(8) Developing media campaigns regarding fair housing;

(9) Bringing housing industry and civic or fair housing groups

together to identify illegal real estate practices and to determine how

to correct them;

(10) Developing mechanisms for the identification of, and quick

response to, housing discrimination cases involving the threat of

physical harm;

(11) Developing materials and providing technical assistance to

support compliance with housing adaptability and accessibility

guidelines contained in the 1988 Fair Housing Amendments Act;

(12) Developing or implementing Fair Housing Month activities.

(B) National programs. (1) Activities eligible to be funded as

national programs shall be designed to provide a centralized,

coordinated effort for the development and dissemination of fair

[[Page 26364]]

housing media products or educational materials that may appropriately

be used on a nationwide basis. All activities listed in paragraph

I.(c)(2)(ii)(A) above are eligible as national projects.

(2) National program applications will receive a preference of up

to ten additional points if they:

(i) Demonstrate cooperation with real estate industry organizations

(up to five points); and/or

(ii) Provide for the dissemination of educational information and

technical assistance to support compliance with the housing

adaptability and accessibility guidelines contained in the Fair Housing

Amendments Act of 1988 (up to five points).

(C) Regional, local and community-based programs. (1) Activities

eligible to be funded as regional, local and community-based programs

include any of the activities, to be implemented on a regional, local

or community-based level, listed in paragraph I.(c)(2)(ii)(A) above, of

this NOFA.

(2) For the purposes of this NOFA, activities that are ``local'' in

scope are activities that are limited to a single unit of general local

government, meaning a city, town, township, county, parish, village, or

other general purpose political subdivision of a State. Activities that

are ``regional'' in scope are activities that cover adjoining States or

two or more units of general local government within a State.

Activities that are ``community based'' in scope are those which are

focused on particular neighborhoods within a unit of general local

government. Community-based programs include school, church and

community presentations, conferences or other educational activities.

(iii) Additional requirements. The following requirements are

applicable to all applications under the Education and Outreach

Initiative:

(A) All projects must address or have relevance to housing

discrimination based on race, color, religion, sex, handicap, familial

status or national origin.

(B) Projects may range in length from twelve to eighteen months in

duration. National projects have an award cap of $185,677. Regional,

local and community based projects have an award cap of $125,000.

Applications which request FHIP funding in excess of the award cap will

be deemed ineligible.

(C) Projects that appear to be aimed solely or primarily at

research or data-gathering, including surveys and questionnaires, will

not be eligible under this NOFA. Such data-gathering activities require

OMB approval under the Paperwork Reduction Act before commencement of

the activity.

(D) All proposals must contain a description of how the activities

or the final products of the projects can be used by other agencies and

organizations and what modifications, if any, would be necessary for

that purpose.

(E) Coordination of activities. Each non-governmental applicant for

funding under the Education and Outreach Initiative Regional, Local and

Community-Based Component that is located within the jurisdiction of a

State or local enforcement agency or agencies administering a fair

housing law that has been certified by the Department under 24 CFR part

115 as being a substantially equivalent fair housing law must provide,

with its application, documentation (such as letters between the two

organizations) that it has consulted with the agency or agencies to

coordinate activities to be funded under the Education and Outreach

Initiative. This coordination will ensure that the activities of one

group will minimize duplication and fragmentation of activities of the

other. Failure to submit the documentation required by this section

will be treated as a technical deficiency in accordance with section

IV., below, of this NOFA.

(F) Every application must include as one of its activities a

procedure for referring persons with Fair Housing complaints to State

or local agencies administering substantially equivalent laws, private

attorneys, HUD or the Department of Justice for further enforcement

processing.

(2) Private Enforcement Initiative (PEI).

(i) Eligible applicants. The only organizations that are eligible

to receive FY 1996 funding assistance under the PEI are qualified fair

housing enforcement organizations (QFHOs). NOTE: Recipients of multi-

year (48 month) PEI FHIP grant awards based upon applications submitted

under RFA-95-1 may not apply in the FY 1996 competition for multi-year

PEI awards.

(ii) Eligible activities. Applications are solicited for multi-year

project proposals as described in this NOFA. Applications may designate

up to 20% of requested funds to conduct education and outreach to

promote awareness of the services provided by the project, but such

promotion must be necessary for the successful implementation of the

project.

(A) Bonus Points. PEI applications from FHIP grant recipients whose

period of performance for all FHIP grants expired/will expire between

September 30, 1995 and December 31, 1996, will receive a bonus of ten

additional points.

(B) Project applications may involve, but are not limited to, the

following:

(1) Discovering and providing remedies for discrimination in the

public or private real estate markets and real estate-related

transactions, including, but not limited to, the making or purchasing

of loans and the provision of other financial assistance for sales and

rentals of housing, such as property insurance, appraisal practices,

and housing advertising;

(2) Conducting investigations of systemic housing discrimination

for further enforcement processing by HUD or State or local agencies

which administer laws that are substantially equivalent to the Fair

Housing Act, or for referral to private attorneys or the Department of

Justice;

(3) Professionally conducting testing or other investigative

support for administrative and judicial enforcement of fair housing

laws;

(4) Linking fair housing organizations regionally in enforcement

activities designed to combat broader housing market discriminatory

practices;

(5) Building the capacity to investigate, through testing and other

investigative methods, housing discrimination complaints covering all

protected classes, including persons with mental and physical

disabilities;

(6) Carrying out special projects, including the development of

prototypes to respond to new or sophisticated forms of discrimination

against persons protected under title VIII, such as in the areas of

independent living and architectural barriers;

(7) Providing funds for the costs and expenses of litigating fair

housing cases, including expert witness fees.

(iii) Additional requirements.

(A) Testers in testing activities funded with PEI funds must not

have prior felony convictions or convictions of crimes involving fraud

or perjury, and they must receive training or be experienced in testing

procedures and techniques. Testers and the organizations conducting

tests, and the employees and agents of these organizations may not:

(1) Have an economic interest in the outcome of the test, without

prejudice to the right of any person or entity to recover damages for

any cognizable injury;

(2) Be a relative of any party in a case;

(3) Have had any employment or other affiliation, within one year,

with the person or organization to be tested; or

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(4) Be a licensed competitor of the person or organization to be

tested in the listing, rental, sale, or financing of real estate.

(B) Multi-year projects must be for 24-36 months in duration, with

an award cap of $500,000. Successful projects will receive incremental

funding during the life of the award subject to periodic performance

reviews. Applications which request FHIP funding in excess of the award

cap will be deemed ineligible.

(C) Projects that appear to be aimed solely or primarily at

research or data-gathering, including surveys and questionnaires

unrelated to existing or planned fair housing enforcement programs,

will not be eligible for funding under this NOFA. Data-gathering

activities require OMB approval under the Paperwork Reduction Act

before commencement of the activity.

(D) In accordance with 24 CFR 125.104(f), no recipient of

assistance under the PEI may use any funds provided by the Department

for the payment of expenses in connection with litigation against the

United States.

(E) Recipients of funds under the Private Enforcement Initiative

shall be required to record, in a case tracking log (or Fair Housing

Enforcement Log) to be supplied by HUD, information appropriate to the

funded project relating to the number of complaints of discrimination

received; the basis of these complaints; the type and number of tests

utilized in the investigation of each allegation; the time for case

processing, including administrative or judicial proceedings; the cost

of testing activities and case processing; and case outcome or relief

provided. The recipient must agree to make this log available to HUD.

(F) All proposals must certify that the applicant will not solicit

funds from or seek to provide fair housing educational or other

services or products for compensation, directly or indirectly, to any

person or organization which has been the subject of testing by the

applicant during a 12 month period following the test. This requirement

does not preclude settlements based on investigative findings.

(3) Fair Housing Organizations Initiative (FHOI).

(i) Purpose: Continued Development of Existing Organizations.

(A) Eligible applicants. The only organizations eligible under this

NOFA to apply under this purpose of the FHOI are: qualified fair

housing enforcement organizations (QFHOs).

(B) Eligible activities. Eligible activities for funding under this

purpose of the FHOI are any activities listed as eligible under the

Private Enforcement Initiative in section I.(c)(2)(ii) of this NOFA and

carried out as twelve to eighteen month projects. However, all

applications must be for the sole purpose of providing direct services/

support to sustain the operations of the new fair housing enforcement

organizations created under the FY 93 FHIP NOFA (58 FR 68000, December

22, 1993) and the FY 94 FHIP NOFA (59 FR 25532, May 16, 1994). (The

full listing of these organizations will be included in the Application

Kit.)

The list of eligible activities are examples only, and is not all

inclusive. In addition to the examples listed in section I.(c)(2)(ii),

other eligible activities include:

(1) Technical assistance and mentoring services for the new

organization(s);

(2) Training for the staff of the new organization(s);

(3) Up to 20% of requested funds to conduct education and outreach

to promote awareness of the services provided by the new

organization(s), but such promotion must be necessary for the

successful implementation of the project;

(4) Other costs relating to the operations of the new

organization(s):

(i) Salaries and fringe benefits;

(ii) Rent, leases, supplies and other direct costs;

(iii) Travel connected with funded activities;

(iv) Testing and litigation expenses, and

(v) Indirect costs.

(C) Additional Requirements. The following requirements apply to

activities funded under the Continued Development of Existing

Organizations purpose of the FHOI:

(1) Limitation on Sponsorship. Applicants may only propose to

support up to two (2) new fair housing enforcement organizations under

a single award. Applicants must include with their applications letters

of support for the proposed activities from the new organization(s)

identified for sponsorship and detailed budgets for both the applicant

and the new organization(s).

(2) Limitation on Awards. The limitation of receiving one award

cited in this NOFA at I.(d)(3) will be modified for applicants that

submit successful applications under the FHOI. In such cases, FHOI

recipients will also be eligible to receive one additional award under

either the PEI or EOI.

(3) Eligible applications involving the same new fair housing

enforcement organization(s). If more than one eligible application

proposes to support the same new organization(s), the applicant

receiving the higher overall score will be selected for funding.

(4) Capacity building. Capacity building activities must be

directed toward building capacity of the new fair housing enforcement

organization(s) to provide fair housing enforcement. Thus, applications

which include non-enforcement related activities as a part of the

project will not be approved and corresponding budget reductions will

be made to the award.

(5) Operating budget limitation. Funding provided under this

purpose of the FHOI may not exceed more than 50 percent of the

operating budget of a recipient organization for any one year. For

purposes of the limitation in this paragraph, operating budget means

the applicant's total planned budget expenditures from all sources,

including the value of in-kind and monetary contributions, in the year

for which funding is sought. Additionally, the grant recipient is

limited to expending no more than 25% of the amount requested in the

application for the purpose of covering the grantee's costs in

providing sponsorship support to the new organization(s).

(6) Term of grant. One-year projects may be from twelve to eighteen

months in duration, with an award cap of $250,000. Applications which

request FHIP funding in excess of the award cap will be deemed

ineligible.

(7) Testers in testing activities funded with FHIP funds must not

have prior felony convictions or convictions of crimes involving fraud

or perjury, and they must receive training or be experienced in testing

procedures and techniques. Testers and the organizations conducting

tests, and the employees and agents of these organizations may not:

(i) Have an economic interest in the outcome of the test, without

prejudice to the right of any person or entity to recover damages for

any cognizable injury;

(ii) Be a relative of any party in a case;

(iii) Have had any employment or other affiliation, within one

year, with the person or organization to be tested; or

(iv) Be a licensed competitor of the person or organization to be

tested in the listing, rental, sale, or financing of real estate.

(8) Projects that appear to be aimed solely or primarily at

research or data-gathering including surveys and questionnaires will

not be eligible for funding under this NOFA. Data-gathering activities

require OMB approval under the Paperwork

[[Page 26366]]

Reduction Act before commencement of the activity.

(9) Each applicant under the continued development of existing

organizations purpose of the Fair Housing Organizations Initiative must

submit an operating budget that describes the applicant's total planned

expenditures from all sources, including the value of in-kind and

monetary contributions, in the 12-18 months for which funding is

sought. This operating budget will be used for the purposes of

determining the extent of the 50% funding limitation on operating

expenses.

(10) All proposals for testing under the Fair Housing Organizations

Initiative must certify that the applicant will not solicit funds from

or seek to provide fair housing educational or other services or

products for compensation, directly or indirectly, to any person or

organization which has been the subject of testing by the applicant

during a 12 month period following the test. This does not preclude

settlement based on investigative findings.

(d) Selection Criteria/Rating Factors

(1) Selection Criteria for Rating Applications for Assistance

In addition to the preference points indicated in section

I.(c)(1)(ii)(B)(2) for particular activities, and in section

I.(c)(1)(ii)(A) for PEI applications from FHIP grant recipients whose

period of performance for all FHIP grants expired/will expire, all

projects proposed in applications will be rated on the basis of the

following criteria for selection:

(i) The anticipated impact of the project proposed on the concerns

identified in the application. (20 points) In determining the

anticipated impact of the proposed project, HUD will consider the

degree to which a proposed project addresses problems and issues that

are significant fair housing problems and issues, as explained in the

application, or based upon other information available to HUD. (The

clarity and thoroughness of the project description can be considered

in this determination.) This criterion will be judged on the basis of

the applicant's submissions in response to paragraph III.(a)(1) of this

NOFA under the heading ``Checklist of Application Submission

Requirements.''

(ii) The extent to which the project will provide benefits in

support of fair housing after funded activities have been completed.

(20 points) In determining the extent to which the project will provide

benefits after funded activities have been completed, HUD will consider

the degree to which the project will be of continuing use in dealing

with housing discrimination after funded activities have been

completed. This criterion will be judged on the basis of the

applicant's submissions in response to paragraphs III.(a)(6) and

III.(a)(7) of this NOFA under the heading ``Checklist of Application

Submission Requirements.''

(iii) The extent to which the project will provide the maximum

impact on the concerns identified in a cost-effective manner. (20

points) In determining the extent to which the project will provide the

maximum impact on the concerns identified in a cost effective manner,

HUD will consider the quality and reasonableness of the proposed

activities, timeline and budget for implementation and completion of

the project. HUD will consider as well the adequacy and clarity of

proposed procedures to be used by the agency for monitoring the

progress of the project and ensuring its timely completion. These

procedures may consist of a system for checking whether or not the

milestones established by the project's timeline are being met. The

applicant's capability in handling financial resources (e.g., adequate

financial control procedures, accounting procedures) will be taken into

account as part of the assessment. This may be evidenced by the

applicant's financial management of previous FHIP grants or other civil

rights project management, a certification from the cognizant auditor,

and other documentation. This criterion will be judged on the basis of

the applicant's submissions in response to paragraphs III.(a)(2), and

III.(a)(5) of this NOFA under the heading ``Checklist of Application

Submission Requirements.''

(iv) The extent to which the applicant's professional and

organizational experience will further the achievement of project

goals. (30 points) In determining the extent to which the applicant's

professional and organizational experience will further the achievement

of the project's goals, HUD will consider the applicant's experience in

formulating and carrying out programs to prevent or eliminate

discriminatory practices, including the applicant's management and

performance under past and current FHIP or other civil rights projects,

the experience and qualifications of existing personnel identified for

key positions, or a description of the qualifications of new staff that

will be hired and the experience of subcontractors/consultants. For

organizations submitting an application under the Education and

Outreach Initiative, HUD will consider both fair housing experience and

experience in implementing education, outreach or public information

programs. This criterion will be judged on the basis of the applicant's

submissions in response to paragraph III.(a)(3) of this NOFA under the

heading ``Checklist of Application Submission Requirements.''

(v) The extent to which the project utilizes other public or

private resources that may be available. (10 points) Both monetary and

in-kind resources identified in the application are eligible for

determining the extent to which other public or private resources will

be used. The resources that will be considered must be targeted

specifically for the proposed project, and must be over and above the

resources available to the applicant as a part of its usual, non-

project operations for such expenses as salaries, equipment, supplies,

and rent. This criterion will be judged on the basis of the applicant's

submissions in response to paragraph III.(a)(4) of this NOFA under the

heading ``Checklist of Application Submission Requirements.''

(2) Selection Process

Each application for funding will be evaluated competitively, and

awarded points based on the Selection Criteria for Rating Applications

for Assistance identified in section I.(d)(1) of this NOFA. The final

decision rests with the Assistant Secretary for Fair Housing and Equal

Opportunity or designee. After eligible applications are evaluated

against the factors for award and assigned a score, they will be

organized by rank order. The rank ordering will be done separately for

four categories: PEI; EOI-National; EOI-Regional, local and community-

based; and FHOI-Continued Development of Existing Organizations. Awards

for each category listed above will be funded in rank order until all

available funds have been obligated, or until there are no acceptable

applications, with one exception. If more than one eligible application

under the FHOI competition proposes to support the same new fair

housing enforcement organization(s), the applicant receiving the higher

overall score will be selected for funding. The Assistant Secretary

will have the discretion to make awards out of rank order to provide

broader geographic representation among funded organizations and to

provide enforcement of fair housing rights for all protected classes in

a particular geographic region. When there is a tie in the overall

total score, the award will be made to the applicant that receives a

total higher number of cumulative

[[Page 26367]]

points under Selection Criteria (i) and (iv) of section I.(d)(1),

above. If these scores are identical then geographical consideration

will be the next variable, followed by the grant with the lower request

for FHIP funding.

(3) Applicants Limited to a Single Award

Applicants may apply for funding for more than one project or

activity. However, applicants are limited to one award under this NOFA,

with one exception. The limitation of receiving one award will be

modified for applicants that submit successful applications under the

FHOI. In such cases, FHOI recipients will also be eligible to receive

one additional award under either the PEI or EOI. In all other cases,

if more than one eligible application is submitted by an applicant and

both are within funding range, the Department will select the

application which the applicant has indicated as its preference for

award should more than one application submitted be within funding

range.

(4) Independence of Awards

Each project or activity proposed in an application must be

independent and capable of being implemented without reliance on the

selection of other applications submitted by the applicant or other

applicants. However, this provision does not preclude an applicant from

submitting a proposal which includes other organizations as

subcontractors to the proposed project or activity.

(5) Project Starting Period

The Department has determined that all applications must propose

that the project will begin during the period October 1-December 1,

1996.

(6) Page Limitation

Applicants will be limited to 10 pages of narrative responses for

each of the five selection criteria (this does not include forms or

documents which are required under each criterion). Furthermore,

brochures, news articles or other examples included in the application

will not be considered in the evaluation process. Applicants that

exceed the 10-page limit for each criterion will only have the first 10

pages evaluated for each criterion. Failure to provide narrative

responses to all five criteria will result in an application being

deemed as ineligible.

(e) Applicant Notification and Award Procedures

(1) Notification

No information will be available to applicants during the period of

HUD evaluation, approximately 90 days, except for notification in

writing to those applicants that are determined to be ineligible or

that have technical deficiencies in their applications that may be

corrected. Selectees will be announced by HUD upon completion of the

evaluation process, subject to final negotiations and award.

(2) Negotiations

After HUD has ranked the applications and made an initial

determination of applicants whose scores are within the funding range

(but before the actual award), HUD may require that applicants in this

group participate in negotiations to determine the specific terms of

the cooperative or grant agreement. In cases where it is not possible

to conclude the necessary negotiations successfully, awards will not be

made.

If an award is not made to an applicant whose application is in the

initial funding threshold because of an inability to complete

successful negotiations, and if funds are available to fund any

applications that may have fallen outside the initial funding

threshold, HUD will select the next highest ranking applicant and

proceed as described in the preceding paragraph.

(3) Funding Instrument

HUD expects to award a cost reimbursable or fixed-price cooperative

or grant agreement to each successful applicant. HUD reserves the

right, however, to use the form of assistance agreement determined to

be most appropriate after negotiation with the applicant.

(4) Reduction of Requested Grant Amounts and Special Conditions

HUD may approve an application for an amount lower than the amount

requested, fund only portions of an application, withhold funds after

approval, and/or require the grantee to comply with special conditions

added to the grant agreement, in accordance with 24 CFR 84.14, the

requirements of this NOFA, or where:

(i) HUD determines the amount requested for one or more eligible

activities is unreasonable or unnecessary;

(ii) The applicant has proposed an ineligible activity in an

otherwise eligible project;

(iii) Insufficient amounts remain in that funding round to fund the

full amount requested in the application and HUD determines that

partial funding is a viable option;

(iv) The applicant has demonstrated an inability to manage HUD

grants, particularly Fair Housing Initiatives Program grants; or

(v) For any other reason where good cause exists.

(5) Performance Sanctions

A recipient failing to comply with the procedures set forth in its

grant agreement will be liable for such sanctions as may be authorized

by law, including repayment of improperly used funds, termination of

further participation in the FHIP, and denial of further participation

in programs of the Department or of any Federal agency.

II. Application Process

An application kit is required as the formal submission to apply

for funding. The kit includes information on the Management Work Plan

and Budget for activities proposed by the applicant. An application may

be obtained by writing the Fair Housing Information Clearinghouse, P.O.

Box 9146, McLean, VA 22102, or by calling the toll free number 1-800-

343-3442 (voice) or 1-800-290-1617 (TTY). To ensure a prompt response,

it is suggested that requests for application kits be made by

telephone.

Completed applications are to be submitted to: Maxine B.

Cunningham, Office of Fair Housing and Equal Opportunity, Department of

Housing and Urban Development, Room 5234, 451 Seventh Street, S.W.,

Washington, DC 20410.

The application due date will be specified in the application kit.

However, applicants will be given at least 60 days from today's date,

until July 23, 1996, to submit their applications. Applications will be

accepted if they are received on or before the application due date, or

are received within 7 days after the application due date, but with a

U.S. postmark or receipt from a private commercial delivery service

(such as, Federal Express or DHL) that is dated on or before the

application due date.

The application deadline is firm as to date. In the interest of

fairness to all competing applicants, the Department will treat as

ineligible for consideration any application that is received after the

deadline. Applicants should take this 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. A

[[Page 26368]]

transmission by facsimile machine (``FAX'') will not constitute

delivery.

An applicant may apply for funding for more than one project or

activity, but a separate application must be submitted for each of the

following categories of funding:

(1) National programs under the Education and Outreach Initiative;

(2) Regional or local and community-based activities under the

Education and Outreach Initiative;

(3) Multi-year projects under the Private Enforcement Initiative;

and

(4) Continued Development of Existing Organizations activities

under the Fair Housing Organizations Initiative.

Although a separate application is required for each funding

category, an application may propose more than one type of eligible

activity under each category. For example, both production and

distribution of a public service message may be proposed in a single

application for a national program under the Education and Outreach

Initiative.

Applicants must submit all information required in the application

kit and must include sufficient information to establish that the

applicant and its application meet eligibility requirements as set

forth above and the application meets the selection criteria set forth

in section I.(d), above, of this NOFA.

III. Checklist of Application Submission Requirements

(a) General requirements. The application kit will contain a

checklist of application submission requirements to complete the

application process. Each application for FHIP funding must contain the

following items:

(1) A description of the activities proposed for funding, and the

practice or practices at the community, local, regional or national

level that have adversely affected the achievement of the goal of fair

housing, and that will be addressed by the proposed activities. This

description must include a discussion and analysis of the housing

practices identified, including available information and studies

relating to discriminatory housing practices and their historical

background, and relevant demographic data indicating the nature and

extent of the impact of the described practices on persons seeking

dwellings or services related to the sale, rental or financing of

dwellings, in the general location where the applicant proposes to

undertake activities.

(2) A budget--which must include a set-aside of $5,000 for single-

year projects and $10,000 for multi-year projects to be used for travel

and associated costs for training sponsored or approved by the

Department--and a timeline for the implementation of the proposed

activities, consisting of a description of the specific activities to

be conducted with FHIP funds, the geographic areas to be served by the

activities, any reports to be produced in connection with the

activities, and a schedule for the implementation and completion of the

activities.

(3) A description of the applicant's experience in formulating or

carrying out programs to prevent or eliminate discriminatory housing

practices or in implementing other civil rights programs, the

experience and qualifications of existing personnel identified for key

positions, or a description of the qualifications of new staff to be

hired, and the experience of subcontractors/consultants.

(4) A statement indicating the need for FHIP funding in support of

the proposed project and an estimate of other public or private

resources that will be used to assist the proposed activities.

(5) A description of the procedures to be used by the applicant for

monitoring the progress of the proposed activities and the applicant's

planned or implemented financial control procedures that will

demonstrate the applicant's capability in managing financial resources.

(6) A description of the fair housing benefits that successful

completion of the project will produce, and the indicators by which

these benefits are to be measured.

(7) A description of the degree to which the project will be of

continuing use in addressing housing discrimination after funded

activities have been completed;

(8) HUD Form 2880, Applicant Disclosures;

(9) Fair Housing Organizations Initiative applicants must include

with their applications letters of support for the proposed activities

from the new organization(s) identified for sponsorship, and detailed

budgets for both the applicant and the new organization(s).

(10) A listing of any current or pending grants or contracts, or

other business or financial relationships or agreements, to provide

training, education, and/or self-testing services between the applicant

and any entity or organization of entities involved in the sale,

rental, advertising or provision of insurance, brokerage or lending

services for housing. The listing must include the name and address of

the entity or organization; a brief description of the services being

performed or for which negotiations are pending; the dates for

performance of the services; and the amount of the contract or grant.

This listing must be updated during the grant negotiation period, at

the end of the grant term, and for grants that will run for more than

twelve months, at the end of each year of the multi-year project.

(11) The applicant must submit a certification and disclosure in

accordance with the requirements of section 319 of the Department of

the Interior Appropriations Act (Pub. L. 101-121, approved October 23,

1989), as implemented in HUD's interim final rule at 24 CFR part 87,

published in the Federal Register on February 26, 1990 (55 FR 6736).

This statute generally prohibits recipients and subrecipients of

Federal contracts, grants, cooperative agreements and loans from using

appropriated funds for lobbying the Executive or Legislative Branches

of the Federal Government in connection with a specific contract,

grant, or loan. If warranted, the applicant should include the

Disclosure of Lobbying Activities form (SF-LLL).

(12) Prior to award execution, successful applicants must submit a

certification that they will comply with the certification requirements

contained in the application kit.

(13) Each application must include documentation which demonstrates

that the applicant meets all of the requirements of a qualified fair

housing enforcement organization (QFHO), as defined under the heading

Definitions, in section I.(a), above, of this NOFA.

IV. Corrections to Deficient Applications

Applicants will not be disqualified from being considered for

funding because of technical deficiencies in their application

submission, e.g., an omission of information such as regulatory/program

certifications, or incomplete signatory requirements for application

submission.

HUD will notify an applicant in writing of any technical

deficiencies in the application. The applicant must submit corrections

within 14 calendar days from the date of HUD's letter notifying the

applicant of any technical deficiency.

The 14-day correction period pertains only to non-substantive,

technical deficiencies or errors. Technical deficiencies relate to

items that:

1. Are not necessary for HUD review under selection criteria/

ranking factors; and

2. Would not improve the substantive quality of the proposal.

[[Page 26369]]

V. Other Matters

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 a specific contract,

grant, or loan. The prohibition also covers the awarding of contracts,

grants, cooperative agreements, or loans unless the recipient has made

an acceptable certification regarding lobbying. Under 24 CFR part 87,

applicants, recipients and sub-recipients 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.

Environmental Impact

A Finding of No Significant Impact with respect to the environment

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 of No Significant

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

p.m. weekdays at the Office of the Rules Docket Clerk, Room 10276,

Department of Housing and Urban Development, 451 Seventh Street, S.W.,

Washington, DC 20410.

Executive Order 12606, The Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that the policies announced in

this Notice would not have a significant impact on the formation,

maintenance, and general well-being of families except indirectly to

the extent of the social and other benefits expected from this program

of assistance.

Executive Order 12612, Federalism

The General Counsel has determined, as the Designated Official for

HUD under section 6(a) of Executive Order 12612, Federalism, that the

policies contained in this Notice will not have federalism implications

and, thus, are not subject to review under the Order. The promotion of

fair housing policies is a recognized goal of general benefit without

direct implications on the relationship between the national government

and the states or on the distribution of power and responsibilities

among various levels of government.

Drug-Free Workplace Certification

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

agencies to certify that they will provide drug-free workplaces. Thus,

each applicant must certify that it will comply with drug-free

workplace requirements in accordance with 24 CFR part 24, subpart F.

Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24

CFR part 4, subpart A, published on April 1, 1996 (61 FR 1448), contain

a number of provisions that are designed to ensure greater

accountability and integrity in the provision of certain types of

assistance administered by HUD. On January 14, 1992, HUD published, at

57 FR 1942, a notice that also provides information on the

implementation of section 102. The documentation, public access, and

disclosure requirements of section 102 are applicable to assistance

awarded under this NOFA as follows:

Documentation and public access requirements. HUD will ensure that

documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

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

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

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

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

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

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

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis.

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

all applicant disclosure reports (HUD Form 2880) submitted in

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

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

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

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

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

regulations at 24 CFR part 15.

Section 103 HUD Reform Act. HUD's regulation implementing section

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

1989, 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 limited 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. (This is not a toll-

free number.) A telecommunications device for persons with speech and

hearing impairments is available at 1-800-877-8339. For HUD employees

who have specific program questions, such as whether particular subject

matter can be discussed with persons outside HUD, the employee should

contact the appropriate Field Office Counsel, or Headquarters counsel

for the program to which the question pertains.

Authority: 42 U.S.C. 3601-3619; 42 U.S.C. 3616 note.

Dated: May 10, 1996.

Elizabeth K. Julian,

Assistant Secretary for Fair Housing and Equal Opportunity.

[FR Doc. 96-13073 Filed 5-23-96; 8:45 am]

BILLING CODE 4210-28-P