Office of the Assistant Secretary for Public and Indian Housing; Notice of Funding Availability (NOFA) for Public Housing Demolition, Site Revitalization, and Replacement Housing Grants (HOPE VI); Fiscal Year 1996; Notice of Proposed Information Collection for Public Comment

SUMMARY: This NOFA announces the availability of approximately $480

million in funding for Public Housing Demolition, Site Revitalization,

and Replacement Housing, hereafter referred to as the HOPE VI program,

as provided in the Omnibus Consolidated Rescissions and Appropriations

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

Appropriations Act).

The 1996 Appropriations Act provided this funding as an

evolutionary advance in the HOPE VI program, for the purpose of

enabling the demolition of obsolete public housing developments or

portions thereof, the revitalization (where appropriate) of sites

(including remaining public housing units) on which such developments

are located, replacement housing that will avoid or lessen

concentrations of very low-income families, and Section 8 tenant-based

assistance for the purpose of providing replacement housing and

assisting tenants to be displaced by the demolition. The HOPE VI

program will fund demolition, the capital costs of reconstruction,

rehabilitation and other physical improvements, the provision of

replacement housing, management improvements, resident self-sufficiency

programs, and tenant-based assistance.

This NOFA contains information on eligible applicants, program

requirements, evaluation factors, and application submission

requirements. This NOFA also solicits public comments on the

information collection requirements contained herein.

DATES: Applications must be received at HUD Headquarters and the Field

Office on or before 4 p.m. eastern time on September 10, 1996. The

application deadline for the original application delivered to HUD

Headquarters is firm as to date and hour. Public housing agencies

(PHAs) should take this into account and submit applications as early

as possible to avoid the risk brought about by unanticipated delays or

delivery-related problems. In particular, PHAs intending to mail

applications must provide sufficient time to permit delivery on or

before the deadline date. Acceptance by a post office or private mailer

does not constitute delivery. HUD will disqualify and return to the

applicant any application that it receives after the deadline date and

time.

The deadline for comments on the information collection

requirements is September 20, 1996.

ADDRESSES: An original of the completed application must be received at

the HUD Headquarters Office, 451 Seventh Street, SW, Room 4138,

Washington, DC 20410, Attention: Director, Office of Public Housing

Investments. A copy of the completed application must also be received

at the HUD Field Office. Applications may be hand-delivered or mailed.

HUD will not accept facsimile (fax), COD, and postage due applications.

Interested persons are invited to submit comments regarding the

proposed information collection requirements in this NOFA. Comments

must refer to the NOFA for Public Housing Demolition, Site

Revitalization, and Replacement Housing Grants (HOPE VI); Fiscal Year

1996 (FR 4076), and must be sent to the Reports Liaison Officer, Office

of Public and Indian Housing, Department of Housing and Urban

Development, Room 4255, 451 7th Street, SW, Washington, DC 20410.

FOR FURTHER INFORMATION CONTACT: Mr. Milan Ozdinec, Director, Office of

Urban Revitalization, Department of Housing and Urban Development, 451

Seventh Street, SW, Room 4144, Washington, DC 20410; telephone (202)

401-8812 (this is not a toll free number). Hearing- or speech-impaired

individuals may access this number via TTY by calling the Federal

Information Relay Service at 1-800-877-TDDY, which is a toll-free

number. The NOFA is also available on the HUD Home Page, at the World

Wide Web at http:/www.hud.gov. HUD will also post frequently-asked

questions and answers on the Home Page throughout the application

preparation period.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Changes to, and Continuing Objectives of, the Hope VI Program

II. Substantive Description

A. Authority

B. Eligible Applicants

C. Requirement of Demolition of Obsolete Units

D. Fund Availability

E. Total Development Costs

F. Site and Neighborhood Standards

G. Eligible Activities and Costs

III. Threshold Requirements

IV. Application Evaluation Factors

A. Lessen Concentration of Low-Income Residents

B. Need for Demolition, Revitalization, or Replacement

C. Self-Sufficiency Programs

D. Positive Incentives and Tougher Expectations

E. Local and National Impact

F. Community and Partnerships

G. Need for Funding

H. Program Quality, Feasibility, and Sustainability

I. Capability

J. Resolution of Litigation

V. Application Submission Requirements

A. Statement of Objectives and Goals

B. Existing Conditions

C. Physical Description of Revitalization Plan

D. Applications for New Construction

E. Self-Sufficiency Component

F. Operation and Management Principles

G. Local and National Impact

H. Capability

I. Community and Partnerships

J. Resources

K. Program Financing and Sustainability

L. Resolution of Litigation

M. Required Certifications

N. Demolition/Disposition Application

VI. Application Processing and Grant Administration

A. Application Evaluation

B. Reduction in Requested Grant Amount

C. Corrections to Deficient Applications

D. Notification of Funding Decisions

E. Grant Agreement/ACC Amendment

VII. Applicability of Program Requirements

VIII. Applicability of Other Federal Requirements

IX. Other Matters

Changes to, and Continuing Objectives of, the HOPE VI Program

Congress intended for the HOPE VI appropriation in the Omnibus

Consolidated Rescissions and Appropriations Act of 1996 (Pub. L. 104-

134; approved April 26, 1996) (the 1996 Appropriations Act) to continue

Congressional efforts to deal with obsolete and severely distressed

public housing, previously funded under the name ``Urban Revitalization

Demonstration'' or ``URD,'' and popularly referred to as ``HOPE VI.''

The 1996 Appropriations Act made significant changes to HOPE VI by,

among other things, expanding eligibility to all PHAs, requiring

demolition as an element, requiring certain selection criteria, and

eliminating various restrictive features of previous URD legislation.

HUD includes these changes to the HOPE VI program in this NOFA. HUD

[[Page 38025]]

has also attempted to incorporate the lessons learned to date in HOPE

VI so that program purposes will be achieved more rapidly and

efficiently. HUD has retained the ``HOPE VI'' name in a period of

legislative change in order to stress the underlying continuity of the

program.

The elements of public housing transformation that have proven key

to HOPE VI, and that HUD hopes to achieve with these new awards

include:

A. Changing the physical shape of public housing. This includes

tearing down the eyesores that are often identified with obsolete

public housing and replacing them with homes that complement the

surrounding neighborhoods and are attractive and marketable to the

people they are intended to serve, meeting contemporary standards of

modest comfort and liveability. HOPE VI funds should be used to create

institutional and physical structures that serve the needs of public

housing residents over the long term in a cost-effective manner.

B. Establishing positive incentives for resident self-sufficiency

and comprehensive services that empower residents. Programs should be

outcome-based, directed at residents moving up and out of public

housing.

C. Enforcing tough expectations through strict occupancy and

eviction rules, such as the ``One Strike and You're Out'' policy

announced by President Clinton and supported in the Housing Opportunity

Program Extension Act of 1996 (Pub. L. 104-120; approved March 28,

1996). The goal of these rules is to improve the quality of life for

residents, create safer, family-friendly environments conducive to

learning, and make areas around public housing more attractive to

businesses that can create well-paying jobs.

D. Lessening concentrations of poverty by placing public housing in

nonpoverty neighborhoods, or by promoting mixed-income communities

where public housing once stood alone, thereby ending the social and

economic isolation of public housing residents, increasing their access

to quality municipal services such as schools, and increasing their

access to job information and mentoring opportunities.

E. Forging partnerships with other agencies, local governments,

nonprofit organizations, and private businesses to leverage support and

resources, whether financial or in-kind.

II. Substantive Description

A. Authority

The funding made available under this NOFA is provided by the

Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Pub.

L. 104-134; approved April 26, 1996) (the 1996 Appropriations Act).

B. Eligible Applicants

PHAs that own or operate public housing units are eligible to

apply. Indian Housing Authorities are not included as eligible entities

for this program in the 1996 Appropriations Act, and are therefore not

eligible to apply.

C. Requirement of Demolition of Obsolete Units

Demolition is a required component of the HOPE VI program. Each PHA

applicant must demolish at least one obsolete building at the targeted

development. Applicants must attach a demolition/disposition

application, in accordance with 24 CFR part 970, as Exhibit N of the

HOPE VI application. If a demolition/disposition application for the

targeted development has been previously submitted to HUD but has not

yet been approved, the applicant must submit as Exhibit N a copy of the

transmittal letter from the PHA to HUD. If a demolition/disposition

application has been submitted and approved by HUD, but the demolition

has not yet commenced, the applicant must submit as Exhibit N a copy of

HUD's approval letter.

HUD recognizes that the application preparation period may be

insufficient to receive a response from residents to the offer to

purchase required by 24 CFR 970.13. Therefore, HUD will give PHA

applicants selected for funding 30 additional days from the date of

preliminary selection to submit the residents' response to the offer.

If there is no extant resident organization at the targeted development

at the time of application, the applicant will be required to follow

the procedures required by 24 CFR 970.13(b).

Whether or not HUD approves the HOPE VI application, HUD will

process all submitted demolition applications not previously approved.

If HUD approves demolition, all consequences of an approval, such as

those that affect receipt of modernization funds or operating subsidy,

will apply to the subject units. HUD will provide notification of

approval of the demolition application separately from the notification

of selection for participation in the HOPE VI program.

Obsolete units are those that, because of physical condition,

location, or other factors, are unusable for housing purposes, and no

reasonable program of substantial physical modifications is feasible to

return the units to useful life.

Physical indicators of obsolescence include structural deficiencies

(e.g., settlement of earth below the building caused by inadequate

structural fills, faulty structural design, or settlement of floors),

substantial deterioration (e.g., severe termite damage or damage caused

by extreme weather conditions), or other design or site problems (e.g.,

severe erosion or flooding).

Neighborhood indicators of obsolescence include physical

deterioration of the neighborhood; change from residential to

industrial or commercial development; or environmental conditions, as

determined by a HUD environmental review in accordance with 24 CFR part

50, that jeopardize the suitability of the site or a portion of the

site and its housing structures for residential use.

D. Fund Availability

This NOFA announces the availability of approximately $480 million

in funding for Public Housing Demolition, Site Revitalization, and

Replacement Housing, hereafter referred to as the HOPE VI program, as

provided in the Omnibus Consolidated Rescissions and Appropriations Act

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

Act). The 1996 Appropriations Act provided $480 million in funding for

the HOPE VI Program. In order to meet its obligations under the

Gautreaux Consent Decree requiring HUD to provide comparable relief

when HUD cannot provide section 8 New Construction assistance, HUD may

provide funding for up to 350 public housing replacement units to the

Chicago Housing Authority, provided that the funding will fulfill an

unsatisfied obligation under the Consent Decree to provide comparable

relief, and provided, that the Chicago Housing Authority submits one or

more applications for such public housing replacement units in response

to this NOFA. In order to receive the replacement public housing units,

the application shall state that it is submitted pursuant to the

preceding sentence and the application must satisfy all of the

statutorily mandated requirements of the NOFA. The application for up

to 350 public housing replacement units under the preceding two

sentences shall not prohibit the Chicago Housing Authority from

otherwise qualifying to apply and be

[[Page 38026]]

considered for HOPE VI funding in accordance with the terms of the

NOFA.

A public housing authority that has received a HOPE VI planning

grant in a prior year and that wishes to request FY 1996 HOPE VI

funding for the same development(s) addressed in the planning grant

must submit an application under this NOFA.

1. Categories of applications. HUD will accept applications in the

following categories, subject to the limitations set forth in item 2

below:

a. PHAs that administer up to and including 2,500 public housing

units may request up to and including $15 million for demolition and

revitalization, replacement, and/or tenant-based assistance.

b. PHAs that administer from 2,501 to 10,000 public housing units

may request up to and including $30 million for demolition and

revitalization, replacement, and/or tenant-based assistance.

c. PHAs that administer 10,000 or more public housing units may

request up to and including $40 million for demolition and

revitalization, replacement, and/or tenant-based assistance.

d. Each PHA may, in addition to its Category A, B, or C

application(s), submit one application that requests up to $10 million

for demolition and relocation costs associated with the requirements of

the Uniform Relocation Act for one development, or portions thereof,

for which it did not apply under a Category A, B, or C application.

HUD will evaluate applications separately within the four

categories. If PHAs submit multiple applications as permitted below,

HUD will evaluate each application separately. HUD will determine

actual award amounts pursuant to Section VI of this NOFA.

2. Funding availability by category.

a. HUD will allocate $400 million, plus any balance of the $480

million which is not otherwise awarded under this NOFA, to Categories

A-C collectively.

b. HUD will allocate up to $76.784 million to Category D, to the

extent of approvable applications.

c. HUD will reserve $3.216 million for technical assistance.

3. Limitations.

a. Each Category A, B or D application must provide information and

request funds for only one public housing development. Contiguous or

immediately neighboring developments will be considered one development

for all purposes in this NOFA. A PHA in Category C may submit one or

two separate applications, as long as the total amount requested for

both applications does not exceed $40 million. A PHA may also submit a

separate application under Category D in addition to the application(s)

submitted under Categories A, B, or C.

b. There is no minimum or maximum number of housing units for which

funds may be requested in a single application. However, a PHA may not

request replacement funding for units for which the PHA has already

been awarded prior replacement funding from HUD, either through the

funding of hard units or tenant-based assistance.

c. PHAs with previously-awarded MROP or modernization funding that

they believe to be inadequate for the revitalization of a targeted

development may apply for supplemental funding under this NOFA. HUD

will evaluate these applications under the factors established by this

NOFA. PHAs must demonstrate that funding already available to them is

insufficient to assure a sustainable revitalization, and/or that the

portion of a development that would be unaddressed by other funding in

itself would qualify for a HOPE VI grant.

d. PHAs with previous HOPE VI grants may not seek Fiscal Year (FY)

1996 HOPE VI funding to supplement the previous grant in treating the

units covered by the original grant. Such PHAs may, however, seek FY

1996 HOPE VI funding to demolish and/or revitalize units in the same

development that were not targeted units under the previous HOPE VI

grant.

4. Tenant-based assistance. HUD will publish a separate

announcement for Section 8 tenant-based assistance in FY 1996, which

will be principally available for relocation and replacement units. A

PHA may apply for replacement and relocation funding simultaneously

under this NOFA (whether for hard units or tenant-based assistance) and

under the Section 8 announcement, and must do both if it seeks tenant-

based assistance under this NOFA. HUD will consider requests under this

HOPE VI NOFA for tenant-based assistance only to the extent that the

PHA applies for, but does not receive, replacement funds under the

Section 8 program.

5. Technical assistance. In accordance with the 1996 Appropriations

Act, up to $3.216 million may be used for technical assistance to be

provided directly or indirectly by grants, contracts, or cooperative

agreements, including training and cost of necessary travel for

participants in such training, by or to officials and employees of HUD

and public housing agencies and to residents.

6. Failure to proceed expeditiously. In the event that a PHA that

has been selected to participate in the HOPE VI program does not

proceed expeditiously, as determined by the Secretary, in accordance

with its application, any Grant Agreement, and ACC Amendment, HUD shall

withdraw any funding made available pursuant to this NOFA that has not

been obligated by HUD, and distribute such funds to one or more other

eligible PHAs, or to other entities capable of proceeding expeditiously

in the same locality with the original program. In selecting PHAs for

the redistribution of funds to one or more other eligible PHAs, HUD

will select an applicant from the most recently conducted HOPE VI

selection process.

E. Total Development Costs

1. If the average per unit hard costs of rehabilitation of the

housing remaining after partial demolition is below 62.5 percent of

HUD's published total development cost limits (TDC), the development is

not eligible for this program (except as a Category D application to be

used only for demolition and relocation as permitted hereunder).

2. If the average per unit hard costs of rehabilitating the

remaining units falls between 62.5 and 90 percent of TDC,

rehabilitation must be shown to be a viable, cost effective option by

the application.

3. The total development cost for units to be rehabilitated with

HUD funds may not exceed 90 percent, and the total development cost for

newly constructed units may not exceed 100 percent, of HUD's published

cost guidelines except with HUD's prior written approval. HUD may grant

such approval based on adequate justification set forth in the

application that addresses additional costs for items such as

remediation of lead-based paint, above average costs of infrastructure

replacement, accessibility improvements, historic preservation, major

reconfiguration of streets and sidewalks, and other significant

improvements. Higher costs must be deemed reasonable and necessary to

develop modest housing that incorporates efficient design, durability,

marketability, sustainability, energy conservation, safety, economical

maintenance, and healthy family life in a neighborhood environment.

F. Site and Neighborhood Standards

Grantees under this program must ensure that their revitalization

proposals and replacement housing plans for the targeted development(s)

will avoid or

[[Page 38027]]

lessen concentrations of very low-income families by creating a mixed-

income community or by expanding assisted housing opportunities in

nonpoor and nonminority neighborhoods. Replacement of public housing

units for public housing units demolished may be built on the original

public housing site, or in the same neighborhood, if the number of such

replacement public housing units is significantly fewer than the number

of public housing units demolished. This authority was affirmed by the

passage of section 1002(a)(9) of Pub. L. 104-19 (approved July 27,

1995) which explicitly authorizes HUD to approve the building of

replacement public housing units under such circumstances. The

Department notes that, in construing the phrase, ``significantly fewer

units,'' it has chosen not to establish a quantitative standard.

Instead, HUD will assess, on a case-by-case basis, the facts involved

in each request. In addition, it will take into account the evolving

interpretation of the phrase ``significantly fewer units'' as it

develops in the course of HUD's separate rulemaking on site and

neighborhood standards. Units that are not located at the targeted

development and in the surrounding neighborhood will be subject to site

and neighborhood standard rules stated in or made applicable by the

Grant Agreement.

G. Eligible Activities and Costs

Eligible expenditures are those eligible under sections 8 and 14 of

the U.S. Housing Act of 1937 (1937 Act). PHAs must principally use

assistance under this HOPE VI program for demolition and/or the

physical improvement and/or replacement of public housing and for

associated management improvements.

1. Eligible activities.

a. Total or partial demolition of buildings or disposition of

property (subject to the requirements of section 18 of the 1937 Act).

b. Capital costs of major reconstruction, rehabilitation, and other

physical improvements (including energy retrofits) (subject to TDC

limitations).

c. Capital costs of replacement housing, including homeownership

housing (subject to TDC limitations).

d. Tenant-based assistance under section 8(b) of the 1937 Act used

for replacement or relocation housing (to the extent permitted in

accordance with section II.D.3 of this NOFA).

e. Management improvements for the reconstructed development.

f. Planning and technical assistance.

g. Self-sufficiency programs, including Campus of Learners

programs, as described in Section V.E of this NOFA.

2. Eligible costs.

a. Capital costs may include related administrative and temporary

relocation costs necessary for reconstruction, rehabilitation,

demolition, or acquisition of land for replacement housing.

b. Administrative costs may include the annual premium of lead-

based paint insurance incident to approved revitalization work while

work is in progress.

c. Physical improvement costs may include those necessary to

provide facilities primarily intended to facilitate the delivery of

self-sufficiency programs and economic development opportunities for

residents of the targeted development, including technologically

outfitting units or buildings for the administration of a Campus of

Learners. Physical improvement costs for the creation of a Campus of

Learners will count towards the total development cost of a

development.

3. Allocation of costs.

a. PHAs must use at least 80 percent of the funding awarded in each

HOPE VI grant for any combination of the activities and related

expenses listed in paragraphs (a) through (f) of section 1, above.

b. PHAs may use not more than 20 percent of the funding awarded in

each HOPE VI grant for self-sufficiency programs and related

administrative expenses (paragraph (g) of section 1, above), but

excluding costs described in paragraph (c) of section 2).

III. Threshold Requirements

A. Noncurable Threshold Requirement

The application must provide for demolition of at least one

obsolete building at the targeted development as ``obsolete'' is

defined in section II.C of this NOFA. HUD will determine whether the

housing is obsolete based on information provided in Exhibit B

(Existing Conditions) of the application. Applicants will have no

opportunity to provide or supplement the information required by

Exhibit B after the deadline date listed in this NOFA (except to the

extent that correction may be made to the demolition application as

provided in section III.B.3 below).

B. Curable Technical Deficiencies

The requirements of this NOFA must be satisfied in order for HUD to

select an application for funding. If applicants do not satisfy the

technical requirements below, after the process for the correction of

deficiencies described in Section VI.C of this NOFA has been carried

out, HUD cannot select the applicants for participation.

1. The applicants must include evidence in Exhibit I.1.b.(2) of the

application (Community and Partnerships) that at least one public

meeting has been held to notify residents and community members of the

proposed activities described in the application.

2. The applicants must include all certifications and submissions

required as Exhibit M of the application.

3. The applicants must include a demolition application, as

described in Section II.C of this NOFA, as Exhibit N of the

application.

4. Applications with proposals that include new construction must

include Exhibit D of the application.

IV. Application Evaluation Factors

Section IV of this NOFA describes the factors that HUD will use to

review applications. Each application will be evaluated based upon its

merits determined pursuant to the factors set forth below. Applications

will be selected for award in accordance with Section VI. HUD will

consider the entire application, as a whole, when evaluating

applications. Applicants must submit the information described in

Section V of this NOFA; applicants must not respond directly to the

factors in Section IV. Instances in which specific submissions

correspond to specific evaluation factors are noted in both Sections IV

and V of this NOFA.

A. Lessen Concentration of Low-Income Residents [20 Points]

HUD will evaluate only Category A, B, and C applications for this

factor. HUD will consider the entire application, and particularly

Exhibit B.5.d (degree of concentration of low-income residents),

Exhibits C.3 and C.4 (description of replacement units), and Exhibit

C.5 (resident counseling) when evaluating this factor.

HUD will consider the extent to which the applicant proposes to

place public housing in nonpoverty neighborhoods or promote mixed-

income communities where public housing once stood alone, thereby

ending the social and economic isolation of public housing residents,

increasing their access to quality municipal services and increasing

their access to job information and mentoring opportunities.

HUD will also consider the degree to which the PHA intends to

provide counseling itself, or work with a

[[Page 38028]]

nonprofit organization to provide counseling, and other assistance to

help families receiving tenant-based assistance to move to nonpoverty

neighborhoods.

B. Need for Demolition, Revitalization, or Replacement [25 Points]

HUD will consider the entire application, and particularly Exhibit

B (Existing Conditions) when evaluating this factor for all

applications. For Category A, B, and C applications, HUD will also

consider information in Exhibit C.9 to determine need for revitalized/

replacement units.

HUD will consider the physical, neighborhood, and demographic

factors that indicate that the targeted development, or portion

thereof, is obsolete and in need of demolition, revitalization, or

replacement; the effect that the obsolete structure has on the

surrounding neighborhood; and, for applications in Categories A, B, and

C only, the need and market for the revitalized and/or replacement

units of the type and size proposed.

C. Self-Sufficiency Programs (Including Campus of Learners) [20 Points;

10 Point COL Bonus]

HUD will evaluate only Category A, B, and C applications for this

factor. HUD will consider the entire application, and particularly

Exhibit E (Self-Sufficiency Component), and Exhibit A (Statement of

Objectives and Goals) when evaluating this factor. Exhibit C.7 will be

used to evaluate the physical plan for a Campus of Learners.

A self-sufficiency program component is required for all Category

A, B, and C applications. Residents of public housing communities can

succeed in becoming self-reliant if they receive assistance in

obtaining comprehensive training, education, and support services, and

if they receive help finding gainful employment. This program should

focus on offering education and job training that is applicable and

appropriate for addressing the needs of residents. Each effort should

be linked to the educational and employment needs of youth and adult

residents as well as the potential job and contracting opportunities

that may be available in the community and the nation's rapidly

changing economy.

HUD will consider the overall quality of the supportive services

plan; the integration of the plan with the development process; the

appropriateness of scale, type, and delivery of the plan to meet the

identified needs of residents; the degree of resident training,

employment, and contracting planned; the degree to which service

providers have made commitments to provide services or funding; the

experience of proposed service providers; the extent of coordination

with existing service providers and programs; the extent to which the

objectives of the supportive service plan are results-oriented, with

measurable goals and outcomes; and the degree to which the program is

sustainable and is likely to enable residents to gain skills that

assist them in becoming self-supporting.

Category A, B, and C applicants are encouraged to implement a

``Campus of Learners'' (COL), an intensive residential learning model,

in connection with a self-sufficiency component in their development.

At a COL, the focus is to provide educational and employment

opportunities for residents living ``on campus,'' or enrolled and

attending an on-site or a certified self-improvement program. Such

programs will include computer technology and training, job training

initiatives, educational opportunities at local schools and

institutions of higher education, and resident self-sufficiency

programs. As a condition of living on campus or being enrolled,

residents will execute an education and employment pledge or a similar

agreement to fulfill specific obligations for program completion or

participation in good standing. Any authority choosing to implement a

COL program must partner with local schools, institutions of higher

learning in support of resident self-sufficiency activities,

telecommunications firms, foundations, businesses, religious

organizations, and/or the private sector as part of this initiative.

Ten points are available for this factor only as a bonus to

applications that propose to convert all or a portion of the targeted

development into a COL. All ten bonus points will be awarded to

applications which are substantially identical to proposals which

resulted in a previous designation by HUD as a COL. Up to ten points

may be awarded to applications depending on the degree to which the

proposals include the COL elements as described in this NOFA. More

information on the COL is contained in the Campus of Learners

Designation Kit, excerpts of which are included in the HOPE VI

Application Kit. Information on COL is also available on the World Wide

Web at http:\\www.hud.gov\nnw\campus.html.

D. Positive Incentives and Tougher Expectations [15 Points]

HUD will evaluate only Category A, B, and C applications for this

factor. HUD will consider the entire application, and particularly

Exhibit F (Operation and Management Principles).

HUD will consider the extent to which proposed operating and

management principles will improve upon current management, reward work

and promote family stability, provide greater resident security,

promote economic and demographic diversity, promote economic

integration and social mobility, and encourage self-sufficiency.

E. Local and National Impact [25 Points]

HUD will evaluate all applications for this factor. HUD will

consider the entire application, and particularly Exhibit B (Existing

Conditions), Exhibit C (Physical Description of the Revitalization

Plan), and Exhibit G (Local and National Impact).

To determine local impact, HUD will consider the relative magnitude

of change that the proposed activities will have on the targeted

development and the affected public housing community and

neighborhoods. HUD will consider the scale of the proposed demolition

and revitalization in relationship to its impact on the community as a

whole, not the magnitude of the program in relation to other

applications. For applications that propose revitalization, HUD will

consider the impact that proposed changes in management and service

delivery will have on the community.

To determine national impact, HUD will consider the degree to which

a program of revitalization, particularly the physical transformation,

self-sufficiency program, and operation/management components of the

project, could be used as a model for other communities. HUD will also

assess the potential of the proposed demolition and revitalization to

improve the health of a PHA that has been deemed ``troubled'' under

section 6(j) of the 1937 Act. HUD will give particular consideration to

revitalization plans that are essential to the removal of a PHA from

judicial receivership. HUD will also consider the extent to which the

targeted development has received negative national attention,

including press coverage other than in local press, as indicative of

the problems in public housing, and how the demolition and

revitalization effort would effectively communicate the transformation

of public housing.

F. Community and Partnerships [20 Points; 10 Point EZ/EC Bonus]

HUD will evaluate all applications for this factor, except with

respect to Partnerships for Category D

[[Page 38029]]

applications, as provided below. HUD will consider the entire

application, and particularly Exhibit I (Community and Partnerships).

1. Resident support/involvement. HUD encourages full and meaningful

involvement of residents and members of the communities to be affected

by the proposed activities. HUD will consider the extent of resident

consultation in shaping the application (including the designation of

the development that is the subject of the application), the level of

resident support for the proposed activities, the continued involvement

and participation by the affected public housing residents, and the

proposed involvement of residents in management of revitalized or

replacement units.

2. Community support/involvement. HUD will consider the extent of

involvement by local public, private, and nonprofit entities and

community representatives in the preparation of the application, the

level of enthusiasm for the plan in the larger community, and the

extent to which the activities proposed in the application are

coordinated with other revitalization plans within the community. Up to

ten bonus points will be given to revitalization plans that are

coordinated with and are supportive of the Strategic Plan for a

Federally designated Empowerment Zone or Enterprise Community.

3. Partnerships (for Category A, B and C applications only). PHAs

are encouraged to enter into partnership arrangements for the purpose

of developing housing that fits into the community and is seen as an

integral part of it. Partnerships would be made with organizations that

include private nonprofit or for-profit entities with experience in the

development and/or management of low- and moderate-income housing,

those that are skilled in the delivery of services to residents of

public housing, educational institutions, foundations, and other

organizations.

HUD will consider the extent to which applications propose to

develop partnerships to facilitate revitalization, the potential of the

proposed partnerships to provide attractive housing and economic

opportunities for public housing residents and make public housing a

catalyst for neighborhood revitalization, and the strength of

commitments from potential partners to participate in the

revitalization plan. HUD will also consider the experience and

capability of proposed partners.

G. Need for Funding [20 Points]

For all applications, HUD will consider the extent to which the

applicant could undertake the proposed activities without HOPE VI

assistance. HUD will consider the entire application and particularly

the information provided in Exhibit K.1.b (Need for HOPE VI Funds) when

evaluating this factor.

H. Program Quality, Feasibility, and Sustainability [25 Points]

HUD will evaluate Category A, B and C applications only for this

factor. HUD will consider the entire application when determining the

comprehensiveness and effectiveness of the proposed demolition and

revitalization or replacement housing as measured by the objectives and

goals of the proposed plan; whether proposed program activities meet

the objectives of the HOPE VI program; whether the proposed program

activities will be accomplished within a reasonable time and expense;

whether the proposed activities are coherent, comprehensive, and

integrated; whether the proposed activities are sustainable; and the

potential success of the proposed program.

I. Capability [15 Points]

For Category A, B, and C applications only, HUD will consider the

ability and capacity of a PHA to carry out the revitalization and

replacement project it has proposed to do under this program. HUD will

consider the entire application and particularly information provided

in Exhibit H when evaluating this factor.

J. Resolution of Litigation [20 Bonus Points]

An applicant in any Category whose submission demonstrates that the

proposed revitalization plan will materially assist the applicant and

HUD in meeting their obligations under a court ordered Consent Decree

in connection with civil rights litigation will be provided with 20

additional bonus points.

V. Application Submission Requirements

This section of the NOFA describes all of the items to be included

in an application, and the categories of applications for which each

item is applicable. All applications, regardless of category, must

include all information requested, unless otherwise specifically noted.

If a PHA chooses to submit more than one application, it may duplicate

common elements of all applications, such as certifications, as long as

one of the applications contains certifications with original

signatures, and the copies indicate which application contains the

original document.

HUD reviewers will use the information provided in the application

to evaluate each application in accordance with the evaluation factors

described in Section IV of this NOFA. Notwithstanding that certain

application submission requirement sections of the application

correspond to specific evaluation factors, reviewers will consider and

evaluate the application as a whole during the evaluation process.

Each application submitted by a PHA for a Category A, B, or C grant

must consist of Exhibits A-N that correspond directly to sections A-N

listed below. Each application for a Category D grant must consist of

Exhibits A, B, G, I, K, M, and N. For ease of review, each application

must include a table of contents directing the reader to the page

number upon which each exhibit begins. If an exhibit is not applicable

to a Category D grant, applicants must indicate this in the table of

contents. The use of tabs to separate each exhibit will greatly

facilitate review and expedite grant awards. If an exhibit is not

applicable for any other reason, under the tab for such exhibit

applicants must provide an explanation of its inapplicability to the

application. Adherence to page limits is mandatory; in reviewing the

applications, HUD will not consider any information on pages that

exceed the limits.

A. Statement of Objectives and Goals

All applicants must provide a narrative Exhibit A, not to exceed

two pages, that describes the objectives and goals of the proposed

program and describes the projected goals for all activities proposed,

including the self-sufficiency component, if applicable. The narrative

should describe how program activities respond to the program

objectives set forth in Section I of this NOFA. Goals should be

results-oriented, realistic, and measurable. HUD will use information

from Exhibit A primarily to evaluate the Program Quality, Feasibility,

and Sustainability (IV.H) and Self-Sufficiency Programs (IV.C) factors.

B. Existing Conditions

All applicants must provide an Exhibit B that responds to all items

in this section. HUD will use information from Exhibit B primarily to

evaluate the Need for Demolition, Revitalization, or Replacement

(IV.B), Lessen Concentrations of Low-Income

[[Page 38030]]

Residents (IV.A), Local and National Impact (IV.E), and Program

Quality, Feasibility and Sustainability (IV.H) factors. HUD will use

items 3 and 4, below, to determine whether the application meets the

threshold requirement for obsolete housing (III.A).

The applicant must provide the following information in a

narrative, not to exceed eight pages (plus the map required under 1.d)

below:

1.Description of current development.

a. An identification of the targeted development.

b. The total number of current units, by unit size.

c. The number and location of vacant units.

d. In addition to the narrative, provide a one page map of the

current site.

2. Proposed demolition/disposition. Applicants must briefly

describe the extent of the proposed demolition/disposition, and

identify the units to be demolished. (Also attach a demolition/

disposition application as Exhibit N of the application, as described

in Section II.C of this NOFA.)

3. Physical indicators of obsolescence.

a. The cost of rehabilitation/reconstruction per unit as a

percentage of TDC.

b. Structural deficiencies (e.g., settlement of earth below the

building caused by inadequate structural fills, faulty structural

design, or settlement of floors).

c. Substantial deterioration (e.g., severe termite damage or damage

caused by extreme weather conditions) or other design or site problems

(e.g., severe erosion or flooding).

d. Design and site deficiencies (e.g., high density or indefensible

space).

e. Major system deficiencies (e.g., peeling and chipping lead-based

paint, lack of reliable and reasonably efficient heat and hot water,

major structural deficiencies, electrical system not satisfying code

requirements, poor site conditions, leaking roof, deteriorated laterals

and sewers, or high number of plumbing leaks).

4. Neighborhood indicators of obsolescence.

a. Physical deterioration of the neighborhood.

b. Change of the neighborhood from residential to industrial or

commercial development.

c. Environmental conditions that may jeopardize the suitability of

the site or a portion of the site and its housing structures for

residential use. These conditions may be determined by either a HUD-

related environmental review, in accordance with 24 CFR part 50 or part

58, which was previously conducted in connection with earlier

assistance, or another assessment of conditions that, in the opinion of

the applicant, may jeopardize suitability of the site.

d. Deficiencies in the neighborhood that revitalization could

ameliorate.

5. Demographic indicators of distress. For the following elements,

applicants must provide the most current information that relates as

specifically as possible to the targeted site. If site information is

not available, applicants must indicate whether information provided

pertains to the development, neighborhood, city, census tract, or other

demographic area.

a. Average income as a percentage of area median.

b. Statistical information on the incidence of crime, including the

following: frequency of criminal acts of various types (including drug-

related activities), number of lease terminations or evictions for

criminal activity, average number of police calls to the development

per month, and the average monthly incidence of vandalism to PHA

property in dollars.

c. Vacancy rate.

d. Degree of concentration of very low-income persons in the

neighborhood.

6. Effect on the neighborhood. Applicants must describe how the

physical, neighborhood, and demographic conditions of the obsolete

development, or portions thereof, affect the residents of the

surrounding neighborhood, the greater community, and city.

C. Physical Description of Revitalization Plan

Category A, B, and C applicants only must provide a narrative

Exhibit C, not to exceed eight pages. HUD will use information from

Exhibit C primarily to evaluate the Program Quality, Feasibility and

Sustainability (IV.H), Lessen Concentration of Low-Income Residents

(IV.A), and Local and National Impact (IV.E) factors. HUD will use

information in Exhibit C.9 to evaluate the Need for Demolition,

Revitalization, or Replacement (IV.B) factor, and information in

Exhibit C.7 to evaluate the Self-Sufficiency (IV.C) factor. Applicants

must describe the extent of the physical revitalization and/or

replacement activities proposed, including the following, as

appropriate:

1. The changes in the sizes and shapes of units and other changes

in the use of interior space, including any reduction in the number of

units due to reconfiguration or changes in the utilization of interior

space.

2. Any community space alterations, improvements, or additions.

3. Any proposed on-site replacement units for public housing units

proposed to be demolished, including number, type, and size of units,

with a description of how such on-site replacement housing will avoid

or lessen concentrations of very low-income families.

4. Any proposed off-site replacement units, including the mix of

building types, number of dwelling units, and unit sizes of replacement

housing. Any applicant proposing to create off-site replacement units

MUST use census data to describe how such housing will avoid or lessen

concentrations of very low-income families.

5. The number of any Section 8 certificates to be used for

replacement or relocation housing, and whether those certificates are

existing or are requested in this application and under the Section 8

notice as required by section II.D.3 of this NOFA. A description of

counselling or other assistance that will be provided to residents

receiving tenant-based assistance as relocation or replacement housing

to enable them to move to areas of lower poverty if they so choose.

6. Any site acquisitions necessary or proposed, the purpose of the

acquisition, and how that acquisition is proposed to be financed.

7. An explanation, if applicable, of how the proposed

revitalization will resemble, or be used as, an education campus in the

implementation of a Campus of Learners.

8. If available, provide a postrevitalization site map.

9. A description of the need and market for the revitalized or

replacement units of the type and size proposed. Cite (but do not

submit) the city's Consolidated Plan, other local plans, market

studies, or other sources of information on housing supply. Identify

other assisted housing, existing and proposed (including housing funded

but not completed).

Applications for New Construction

In accordance with section 6(h) of the 1937 Act, the PHA may engage

in new construction only if the PHA demonstrates to the satisfaction of

the Secretary that the cost of new construction in the neighborhood

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

acquisition or acquisition and rehabilitation in such neighborhood.

Therefore, every application that includes new construction must be

accompanied by a narrative Exhibit D that contains either the

information described in paragraphs 1 and 3 of this section, below, or

the information

[[Page 38031]]

described in paragraphs 2 and 3 of this section, below. The narrative,

certification and statement, as applicable, should not exceed three

pages.

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

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

costs of acquisition of existing housing or acquisition and

rehabilitation in the same neighborhood (including estimated costs of

lead-based paint testing and abatement).

2. A PHA certification, accompanied by supporting documentation,

that there is insufficient existing housing in the neighborhood to

develop housing through acquisition of existing housing or acquisition

and rehabilitation.

3. A statement that:

a. Although the application is for new construction, the PHA will

accept acquisition of existing housing or acquisition and

rehabilitation, if HUD determines the PHA cost comparison or

certification of insufficient housing does not support approval of new

construction; or

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

if HUD cannot approve new construction under section 6(h) of the 1937

Act, HUD will reject the application.)

E. Self-Sufficiency Component

Category A, B, and C applicants only must provide a narrative

Exhibit E, not to exceed 10 pages. HUD will use information from

Exhibit E primarily to evaluate the Program Quality, Feasibility and

Sustainability (IV.H) and Self-Sufficiency Programs (IV.C) factors.

A program of self-sufficiency may include, but is not limited to:

(a) Child care, of a type that provides sufficient hours of operation

and serves appropriate ages as needed to facilitate parental access to

education and job opportunities; (b) Employment training and

counseling, such as job training, preparation and counseling, job

development and placement, and follow-up assistance after job

placement; (c) Computer skills training; (d) Education, including

remedial education, literacy training, completion of secondary or

postsecondary education, assistance in the attainment of certificates

of high school equivalency, and the integration of modern computer

technology into the education program; (e) Transportation as necessary

to enable any participating family member to receive available services

or to commute to his or her place of employment; (f) Partnerships with

local businesses for job placement for residents who complete adult

education and job training programs; (g) Substance/alcohol abuse

treatment and counseling; (h) Health care services; and (i) Any other

services and resources, including case management, that are determined

to be appropriate in assisting eligible residents.

1. Provide a brief description of each service that is expected to

be made available for residents. For each service, to the extent that

providers are identified, indicate the name of the service provider and

the experience of that provider. If providers are not identified,

describe the process the PHA will use to identify providers. Describe

the location of the service provision, the timing of the service

provision and how it relates to the development schedule, how long the

service will be provided to residents, and whether the service will be

available to residents that will remain on site, are moved off site,

and/or are in relocation sites.

2. Describe the analysis and any consultation with residents that

the PHA employed to determine the needs upon which the self-sufficiency

program was based and that will continue to be used to reevaluate

service needs in the future.

3. Describe how residents will be selected to participate in

services.

4. In addition to the narrative, attach letters from service

providers that commit to provide services to residents.

5. Describe plans to provide on-the-job training, employment, and

contracting opportunities to residents during implementation of the

revitalization plan.

6. Indicate how the goals projected for the self-sufficiency

component, as described in Exhibit A (Statement of Objectives and

Goals), will be met through the self-sufficiency program.

7. Describe the Campus of Learners (COL) program if one is

proposed. Explain how supportive services under the program will be

provided at a level higher than currently provided, how the program

will be sustainable, and how it will enable residents to gain skills

and become self-supporting. The description should contain each of the

following elements:

a. An identifiable physical campus, as demonstrated in the proposed

physical plan (section V.C.9 above), that integrates local schools,

parks, and, to the extent possible, institutions of higher learning.

b. A comprehensive education program that includes programs for

young children, after-school learning sessions for school-age

residents, life skills training for the elderly, and job readiness and

training programs for other adult residents.

c. Collaborations with educational institutions and organizations,

including the local school system, local colleges, universities, and

other institutions of higher learning, in order to harness the

resources of these establishments through specialized education and

technology classes.

d. Access to technology by wiring and equipping every unit in the

COL site, and computer labs on campus for computer classes, language

skills, life skills training, and GED classes.

e. A contract or pledge executed by residents that will state a

resident's agreement that living on the ``campus'' is incidental to and

reliant upon participation in the learning program, and residents

enrolled in the program must fulfill specific obligations for programs

completion.

F. Operation and Management Principles

Category A, B, and C applicants only must provide a narrative

Exhibit F, not to exceed five pages, that describes preliminary post-

redevelopment operation and management policies for the targeted

development. HUD will use information from Exhibit F primarily to

evaluate the Positive Incentives and Tougher Expectations (IV.D) and

Program Quality, Feasibility and Sustainability (IV.H) factors.

For application purposes, the PHA should assume that Congress will

make permanent the program modifications made by the 1996

Appropriations Act. However, PHAs will be required, if selected, to

conform their proposals to current law. HUD intends to issue additional

guidance on any changes in law and policy.

Applicants must describe the manner and extent to which the

proposed operation and management principles will:

1. Achieve efficient and effective management and maintenance

through private management or other management improvements.

2. Reward work and promote family stability through positive

incentives such as income disregards and ceiling rents. Note that PHAs

may establish ceiling rents (but must require a $25 minimum rent) and

may institute earned income disregards for FY 1996.

3. Provide greater security by instituting tough screening

requirements and enforcing tough lease and eviction provisions,

including the ``One Strike and You're Out'' policy.

4. Promote economic and demographic diversity through a system of

local preferences. Note that Congress has suspended all Federal

preferences for FY 1996.

[[Page 38032]]

5. Promote economic integration and social mobility for public

housing residents by providing housing for people with a broad range of

incomes in such a way that public and market rate units are

indistinguishable.

6. Encourage self-sufficiency by utilizing lease requirements that

promote community service and/or transition from public housing.

G. Local and National Impact

All applicants must provide a narrative Exhibit G, not to exceed

six pages. HUD will use information from Exhibit G primarily to

evaluate the Local and National Impact (IV.E) and Program Quality,

Feasibility and Sustainability (IV.H) factors.

1. Local impact.

a. All applicants must: Describe the extent to which the physical

changes resulting from the proposed demolition and revitalization or

replacement will significantly address the indicators of obsolescence

and distress described in Exhibit B (Existing Conditions).

b. Category A, B, and C applicants only must: Explain how the plan

for the provision of services described in Exhibit E and the plan for

management of the development and/or any replacement units after

revitalization described in Exhibit F will contribute to the positive

change for residents of the development and the surrounding community.

2. National impact.

(1) Categories A, B, and C applicants only must, if applicable,

discuss the potential for the program of revitalization, or some aspect

of it, to become a model for other communities.

a. All applicants must, if applicable: (1) Describe the extent to

which the targeted development has been perceived as an example of the

problems of public housing and how the proposed revitalization would

effectively communicate the transformation of public housing. Describe

the national impact of the current obsolete housing as evidenced by any

national attention, including press coverage received prior to the date

of this NOFA. Submit copies, if applicable, of negative coverage of the

targeted development in print media (other than local media) that

predates this NOFA.

(2) If the applicant PHA is on the national troubled housing list,

describe the potential of the proposed demolition and any

reconstruction or replacement housing to remove the PHA from the list

and (if applicable) remove the PHA from judicial receivership.

H. Capability

Category A, B, and C applicants only must provide a narrative

Exhibit H. HUD will use information from Exhibit H to evaluate all of

the factors and particularly the Capability (IV.I) factor. Applicants

must provide a narrative, not to exceed three pages, that includes the

following information:

1. Describe evidence of progress made under any previously-awarded

HOPE VI, development, and/or modernization funding.

2. Provide the PHA's overall and modernization scores under the

Public Housing Management Assessment Program (PHMAP), 24 CFR part 901,

most recently established by HUD.

3. Provide a brief summary of the PHA's most recent fiscal audit

and any outstanding HUD monitoring findings.

4. Describe factors that will ensure that implementation of the

program can begin quickly if the application is approved for an award.

5. Describe any prior experience in financing, leveraging, and

partnership activities.

6. If a receiver or alternate development team is in place,

describe the extent of its authority, the areas over which it will have

control, and its experience and track record in managing troubled PHAs

and/or in accomplishing large-scale development in a timely, cost-

effective, and successful manner.

7. Provide an organizational chart that indicates the proposed

staffing of the revitalization program. Describe the qualifications of

the PHA's key staff who will be responsible for the oversight of the

program.

I. Community and Partnerships

All applicants must provide a narrative Exhibit I, not to exceed

nine pages, plus any pertinent letters as provided below. HUD will use

information from Exhibit I primarily to evaluate the Community and

Partnerships (IV.F) and Program Quality, Feasibility and Sustainability

factors (IV.H). HUD will use information in Exhibit I.1.b.ii below to

determine whether the resident consultation requirement of section

III.B.1 has been met. Exhibit I should contain the following

information:

1. Resident support/involvement.

a. Category A, B, and C applicants only:

(1) Describe the level of participation and/or consultation with

residents throughout the PHA in the preparation of the application.

(2) Explain how the PHA would continue the involvement and

participation by the affected public housing residents.

(3) Describe any planned roles for residents in the management and

operation of the revitalized and replacement units and the developments

of which they are a part.

b. All applicants must attach the following:

(1) Any letters from residents in support of or opposition to the

demolition, any proposed revitalization or self-sufficiency programs,

or programs of positive incentives and tougher expectations received.

(2) Evidence that at least one public meeting has been held to

notify residents and community members of the proposed activities

described in this application. The meeting may be a regularly scheduled

PHA board meeting. Evidence must include the notice announcing the

meeting, how the notice was distributed, and a copy of the sign-in

sheet. An application must contain such evidence that a public meeting

took place in order to be selected for participation.

2. Community support/involvement. All applicants must respond to

this item.

a. Describe the level of participation and/or consultation in the

preparation of the application by community organizations and

institutions, agencies of local and State government, businesses,

nonprofit corporations, social service providers, philanthropic

organizations, educational institutions, and other entities. Discuss

how the PHA would continue to involve these entities and groups if the

application is selected.

b. Provide any letters, resolutions, or other available

documentation in support of, or objection to, the physical as well as

the self-sufficiency component of the proposed demolition, and the

revitalization and/or replacement of units. Include any letters that

commit resources, both monetary and in-kind, from community

organizations.

c. Detail other revitalization activities or land use plans

underway or planned in the neighborhood(s) that the revitalization plan

would affect. Provide reference to and maps indicating the location of

activities and resources identified in the city's or State's

Consolidated Plan or Federally designated Empowerment Zone or

Enterprise Community Strategy (if applicable) in relationship to the

development. Describe the current or projected impacts of these

community-wide activities on residents of the development(s). Describe

how the PHA plans to coordinate with these efforts.

[[Page 38033]]

d. If the targeted development is within a Federally designated

Empowerment Zone or Enterprise Community, provide evidence that the PHA

has an established relationship with the EZ/EC administrative body that

was established before the publication of this NOFA, and that the

proposed revitalization activity is consistent with and supportive of

the Strategic Plan for the Federally designated Empowerment Zone or

Enterprise Community. Applicants that provide a letter of endorsement

from the EZ or EC governing body will receive special consideration.

e. If the revitalization plan calls for changes in streets or other

infrastructure, provide a letter of commitment from the unit of general

local government to provide the resources necessary to carry out those

activities.

3. Partnerships. Category A, B, and C applicants only must respond

to this section.

a. Describe plans to accomplish the revitalization through a

proposed partnership with one or more entities, or through contractual

or subgrant relationships (such as a program management or alternative

administrator agreement or supportive service subgrantees). Include all

relevant information about each proposed entity, including the nature

of the organization, qualifications, the respective responsibilities

and obligations of each party, and the proposed financial relationship,

i.e., the basis and source of compensation to nonapplicant parties.

b. Describe how the use of the partnership will enhance the PHA's

ability to produce attractive housing, economic opportunities to

residents, and mixed-income housing, and to revitalize neighborhoods.

c. Provide any commitments from potential partners to participate

in the revitalization.

HUD does not expect applicants proposing innovative ownership or

financing structures to submit immediately approvable final plans for

such structures as part of their application. Specifically, HUD does

not expect PHAs to procure partners before an application is approved

and warns PHAs against procuring partners in a hasty manner or not in

compliance with applicable laws and procurement regulations. However,

applicants should describe proposed structures and relationships in

sufficient detail to demonstrate a reasonable likelihood that the

revitalization plan is feasible and in accordance with law. Please

refer to 24 CFR part 941, subpart F, published in the Federal Register

on May 2, 1996 (61 FR 19708, 19714), for guidance on procurement of

partners.

J. Resources

Only Category A, B, and C applicants must provide an Exhibit J.

PHAs may use HOPE VI funds in conjunction with any other funds

available to the PHA, so long as the use of HOPE VI funds complies with

the requirements set forth in this NOFA, and the Grant Agreement and

ACC Amendment to be executed with HUD; the use of other funds complies

with any restrictions applicable to them; and the proposed use of all

funds complies with section 102(d) of the Department of Housing and

Urban Development Reform Act of 1989 (42 U.S.C. 3531 note) and HUD's

subsidy layering guidelines, including those found in 24 CFR part 4.

Applicants must provide as Exhibit J a list of all of the

individuals and organizations from which they have received evidence of

financial or other support for the proposed activities. Next to each

source, applicants must list the dollar figure associated with the

resource to be provided, including the dollar value of any in-kind

services or materials to be provided, if known. Next to the dollar

figure, applicants must indicate the application page number of letters

of support or commitments for contributions that describe the nature of

the support and/or resource to be provided, the dollar value of the

donation, if available, any conditions attached to the commitment, and

the date that the resource will be made available. Applicants must

include letters that provide resources for capital costs, self-

sufficiency programs, and all other activities of the program.

Applicants may attach letters as part of Exhibit J, and/or in Exhibit

E.5 (supportive service support) or Exhibit I.2.b and I.2.e (local

government support).

K. Program Financing and Sustainability

HUD will use information provided in Exhibit K primarily to

evaluate the Need for Funding (IV.G) and Program Quality, Feasibility,

and Sustainability (IV.H) factors.

1.All applicants must provide an Exhibit K that contains the

following:

a. Provide an estimated budget (Form HUD-52825-A, HOPE VI Budget,

Parts I and II) showing uses of HOPE VI and other funding for the

proposed demolition and, if applicable, the revitalization plan. Part I

of the form will indicate the general uses of funds, and Part II breaks

each individual use into specific activities.

b. In order to assure that the HOPE VI funds are not used in lieu

of otherwise available funds, provide the certification included in the

PHA Board Resolution for Submission of HOPE VI Application (form HUD

52820-A), submitted under Exhibit M.3, that the PHA could not undertake

the activities proposed through this application without the additional

assistance provided by the requested HOPE VI grant. In a narrative, not

to exceed two pages, discuss how the funds reasonably expected to be

available to the PHA over the period of the CGP Five-Year Action Plan

are not adequate to address the revitalization needs of the

development. Identify all HUD funds currently committed to the PHA for

capital purposes and available for use at the targeted development, and

where any currently allocated funds for that development would be

reallocated, if applicable. Justify why the HOPE VI request should not

be reduced by the currently-allocated amount. If the PHA is selected to

participate in the HOPE VI program, the PHA's CGP Five-Year Action Plan

will be revised to reflect the additional funds.

2. Category A, B, and C applicants only also must include the

following information as part of Exhibit K:

a. Provide a sources-and-uses analysis of capital costs. Although

non-HOPE VI funding commitments may not be in place at the time the

application is submitted, PHAs should identify what types of funding

they will seek to finance their concepts, on what terms these types of

funding might be available, and the level of commitment funders are

willing to make at this time.

b. If average per unit costs for new construction funded by HUD

will exceed 100 percent of TDC, or average per unit costs for

rehabilitation funded by HUD will exceed 90 percent of TDC, provide a

narrative, not to exceed one page, that justifies the need for higher

costs. See discussion of costs in Section II.E of this NOFA.

c. Provide a five-year operating budget, showing all projected

expenses and income. Operating estimates should take into account

realistic market rents for the proposed unit types and sizes, the

amount of funding needed for self-sufficiency programs, and costs of

proposed operating and management policies. Explain all assumptions

made in the development of the budget.

d. Sustainability: Describe how the PHA will be able to maintain

proposed programs and policies on a long term basis, given the

resources projected to be available for the development. This

description should not exceed one page.

[[Page 38034]]

L. Resolution of Litigation

In order to receive the 20 bonus points available to applications

that demonstrate that the proposed revitalization plan will materially

assist the applicant and HUD in meeting their obligations under a court

ordered Consent Decree in connection with civil rights litigation, an

applicable Category A, B, C, or D applicant shall submit a narrative,

not to exceed two pages, that describes the obligations of the

applicant and HUD under the Consent Decree, and explains how the

activities proposed in the revitalization plan will materially assist

the applicant and HUD in meeting such obligations.

M. Required Certifications

Each applicant must submit an Exhibit M that includes all of the

following letters and forms, fully executed and dated. Submission of

all of the following letters and forms is a requirement of this NOFA.

1. As the first page of the application, submit an SF-424,

Application for Federal Assistance. This form must include the Housing

Authority Code, provide the name of the targeted development, list all

activities proposed in the application (demolition, revitalization,

replacement, Section 8) and the amount of funds requested for each.

This form must be signed by the Executive Director of the PHA.

2. A letter from the Chief Executive of the applicable jurisdiction

in support of the application.

3. Form HUD-52820-A, PHA Board Resolution for Submission of HOPE VI

Application.

4. A certification by the public official responsible for

submitting the Consolidated Plan under 24 CFR part 91 that the proposed

activities are consistent with the approved Consolidated Plan of the

State or unit of general local government within which the development

is located.

5. Certification for a Drug-Free Workplace (Form HUD-50070) in

accordance with 24 CFR 24.630.

6. SF-LLL, Disclosure of Lobbying Activities, only if any funds

other than Federally-appropriated funds will be or have been used to

lobby the executive or legislative branches of the Federal Government

regarding specific grants or contracts.

7. Form HUD 2880, Recipient Disclosure/Update Report. This report

provides disclosures required by section 102 of the HUD Reform Act of

1989 (Pub. L. 101-235; approved December 15, 1989). Implementing

regulations in 24 CFR part 4 require PHAs that seek assistance from HUD

for a specific activity to make the disclosures required under

Sec. 4.9.

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

the PHA must document that it is legally organized. Applicants must

submit a current General Certificate (Form HUD 9009).

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

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

other units in development, are covered by Cooperation Agreements.

10. Anti-Lobbying Certification for Contracts, Grants, Loans and

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

of the Department of the Interior and Related Agencies Appropriations

Act for Fiscal Year 1990 (31 U.S.C. 1352) (the Byrd Amendment) and the

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

no Federally-appropriated funds have been paid or will be paid, by or

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

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

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

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

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

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

rule also requires disclosure from the PHA if nonappropriated funds

have been spent or committed for lobbying activities, if those

activities would be prohibited if paid with appropriated funds.)

N. Demolition/Disposition Application

In accordance with Section II.C of this NOFA, demolition of

obsolete public housing is a required element of the program.

1. If a demolition/disposition application was not previously

submitted for the targeted development, submit as Exhibit N a

demolition/disposition application in accordance with 24 CFR part 970.

2. If a demolition/disposition application for the targeted

development was previously submitted to HUD but has not yet been

approved, submit as Exhibit N a copy of the PHA's letter transmitting

the application to HUD.

3. If a demolition/disposition application has been submitted and

approved by HUD, but the demolition has not yet commenced, submit as

Exhibit N a copy of HUD's approval letter.

VI. Application Processing and Grant Administration

Application Evaluation

Awards under this NOFA will be made through a selection process

that will award grants to the most meritorious applications based upon

points as provided below.

HUD will preliminarily review, rate and rank each application,

including those applications from prior HOPE VI planning grant

recipients which are for the same development as their planning grant,

on the basis of the factors set forth in Section IV of this NOFA. HUD

will evaluate Category A, B, and C applications based upon all of the

factors described in section IV of this NOFA. HUD will evaluate

applications in Category D based upon the Need for Demolition,

Revitalization or Replacement (IV.B), Local and National Impact (IV.E),

Community and Partnerships (IV.F), Need for Funding (IV.G), and

Resolution of Litigation (IV.J) factors only.

A final review panel will then review the scores of all

applications whose preliminary score is above a base score established

by HUD, using the same evaluation factors set forth in Section IV of

this NOFA. HUD intends to set the base scores so that applications for

Categories A, B, and C requesting approximately $800 million and

applications for Category D requesting $100 million are advanced to the

final review stage. Additionally, notwithstanding their preliminary

score, HUD will advance for final review the top six rated applications

from each of Categories A, B, and C. The HOPE VI program, following

Congressional direction, has heretofore incorporated a progression from

planning grants to implementation grants. Because of the large number

of existing planning grants and changes in program structure and

eligibility, and because a PHA that has used its planning grant

effectively should be able to demonstrate merit under the rating

factors, HUD has not given any rating preference to prior planning

grant sites. However, in order to preserve program continuity and

obtain full consideration of sites in which the Department has made an

investment of HOPE VI funds, the Department will review all such

applications in the second review stage. Such applications will not

receive special consideration during the panel review stage and will be

reviewed in both stages of the selection process according to the

evaluation factors set forth in Section IV of this NOFA. The review

panel will assess each of the applications advanced to final review

[[Page 38035]]

and will assign the final scores. HUD will select for funding the four

most highly rated applications from each of categories A, B, and C. HUD

will select the most highly rated applications in Category D, up to

available funding. Remaining funding from the approximately $400

million will be allocated to the remaining most highly rated

applications in categories A-D, regardless of category.

HUD, in its discretion, may choose to select a lower-rated

approvable application over a higher-rated application in order to (1)

increase the level of national geographic diversity of applications

selected under this NOFA, or (2) implement an exemplary, innovative or

unique revitalization plan whose approach would otherwise be

inadequately represented in the pool selected and which HUD determines

is a revitalization model which should be tested for the benefit of

future efforts.

HUD may establish a panel of experts with whom to consult for

advice on elements of the applications that are within their expertise.

Such experts will be advisors and will not conduct any part of the

selection of grantees.

B. Reduction in Requested Grant Amount

HUD may select an application for participation in the HOPE VI

program but grant an award pursuant to such application in an amount

lower than the amount requested by the applicant, or adjust line items

in the proposed grant budget within the amount requested (or both), if

it determines that partial funding is a viable option, and:

1. The amount requested for one or more eligible activities is not

supported in the application or is not reasonably related to the

service or activity to be carried out;

2. An activity proposed for funding does not qualify as an eligible

activity and can be separated from the budget;

3. The amount requested exceeds the total cost limitation

established for a grant;

4. Insufficient funds are available to fund the full amount; or

5. Providing partial funding will permit HUD to fund one or more

additional qualified PHAs.

C. Corrections to Deficient Applications

HUD will evaluate each application against the stated factors in

Section IV of this NOFA. Upon completion of the evaluation, if HUD

determines that a PHA failed to submit any of the items listed in

Section III.B of this NOFA, or if the application contains a technical

mistake, such as an incorrect signatory, or is missing any other

information that does not affect evaluation of the application, HUD may

notify the PHA in writing and by facsimile (fax) that the PHA has 14

calendar days from the date of HUD's written notification to submit or

correct any of the specified items. The PHA will have no opportunity to

correct deficiencies other than those identified in HUD's written

notification, or otherwise to supplement or revise its application. If

any of the items identified in HUD's written notification is not

corrected and submitted within the required time period, the

application will be ineligible for further consideration.

D. Notification of Funding Decisions

HUD will not notify applicants as to whether they have been

selected to participate until the announcement of the selection of all

recipients under this NOFA. HUD will provide written notification to

applicants that have been selected to participate and to those that

have not been selected. HUD's notification of award to a selected

applicant will constitute a preliminary approval by HUD subject to the

completion of a subsidy layering review pursuant to 24 CFR 941.10(b),

HUD's completion of an environmental review of the proposed sites, and

the execution by HUD and the recipient of a Grant Agreement and/or ACC

Amendment. Selection for participation (preliminary approval) does not

constitute approval of the proposed site(s). Each proposal will be

subject to a HUD environmental review, in accordance with 24 CFR part

50, and the proposal may be modified or the proposed sites rejected as

a result of that review. Each application must contain the

certification included in the PHA Board Resolution for Submission of

HOPE VI Application (form HUD 52820-A), submitted under Exhibit M.3,

that the applicant will assist HUD in complying with environmental

review procedures. Under that certification, the applicant/recipient

may not acquire, rehabilitate, convert, lease, repair, or construct a

property, or commit HUD or local funds to these activities, until HUD

approves the site.

E. Grant Agreement/ACC Amendment

After HUD selects a PHA to receive an award pursuant to this NOFA,

it will enter into a Grant Agreement and/or ACC Amendment, as

determined appropriate by HUD, with the recipient setting forth the

amount of the grant and applicable rules, terms, and conditions,

including sanctions for violation of the agreement. Among other things,

the agreement/amendment will provide that the recipient agrees to the

following:

1. To carry out the program in accordance with the provisions of

this NOFA, applicable law, the approved application, and all other

applicable requirements, including requirements for mixed finance

development, if applicable;

2. To comply with such other terms and conditions, including

recordkeeping and reports, as HUD may establish for the purposes of

administering, monitoring, and evaluating the program in an effective

and efficient manner;

3. That HUD may require the PHA to procure a program manager if

selected for an award, as a condition of the grant agreement; and

4. That HUD may withhold, withdraw, or recapture any portion of a

grant, terminate the Grant Agreement, or take other appropriate action

authorized by the 1996 Appropriation Act or under the Grant Agreement

or ACC Amendment if HUD determines that the recipient is failing to

carry out the approved revitalization program in accordance with the

terms of the application as approved and this NOFA.

The Grant Agreement will also provide program rules, describe

requirements for implementation of the revitalization plan, and provide

any special conditions on the grantee, as applicable.

VII. Applicability of Program Requirements

The development to be revitalized is a public housing development.

Accordingly, certain activities under the revitalization plan are

subject to statutory requirements applicable to public housing

developments under the U.S. Housing Act of 1937 (the 1937 Act), other

statutes, and the ACC. Within such restrictions, HUD seeks innovative

solutions to the long-standing problems of obsolete developments. In

order to satisfy any particular statutory requirement, a Grantee may

take measures as described in implementing regulations or, upon request

to HUD for a different approach, as otherwise approved in writing by

HUD.

The recipient must conduct the following activities, which may be

undertaken with HOPE VI grant funds, in accordance with the cited

program requirements or otherwise with HUD's written approval,

consistent with the 1996 Appropriations Act and this NOFA.

A. Demolition and disposition activity under the grant must be

conducted in accordance with 24 CFR part 970;

B. Public housing development activity (including on-site

reconstruction as well as off-site

[[Page 38036]]

replacement housing) must be conducted in accordance with 24 CFR part

941, including mixed finance development in accordance with subpart F

(published in the Federal Register on May 2, 1996 (61 FR 19708,

19714)). HUD will distribute the Mixed-Finance ACC Amendment to the

recipients.

C. Replacement housing activity using Section 8 rental certificates

must be conducted in accordance with 24 CFR part 882;

D. Replacement housing activity with units acquired or otherwise

provided for homeownership under section 5(h) of the 1937 Act must be

conducted in accordance with 24 CFR part 906;

E. Replacement housing activities provided through housing

opportunity programs of construction or substantial rehabilitation of

homes must be conducted in accordance with 24 CFR part 280 (the

Nehemiah Program);

F. Replacement housing activities under the HOPE II program must be

conducted in accordance with 24 CFR subtitle A, appendix B;

G. Replacement housing activities under the HOPE III program must

be conducted in accordance with 24 CFR subtitle A, appendix C;

H. Rehabilitation and physical improvement activities must be

conducted in accordance with 24 CFR 968.112 (b), (d), (e), and (g)-(o),

24 CFR 968.130, and 24 CFR 968.135 (b) and (d). These provisions were

published in the Federal Register on March 5, 1996 (61 FR 8712, 8738).

I. The administration and operation of units must be in accordance

with all existing public housing rules and regulations.

PHAs may request, for the revitalized development, a waiver of HUD

regulations (that are not statutory requirements) governing rents,

income eligibility, or other areas of public housing management to

permit a PHA to undertake measures that enhance the long-term viability

of a development revitalized under this program.

VIII. Applicability of Other Federal Requirements

A. Flood Insurance

In accordance with the Flood Disaster Protection Act of 1973 (42

U.S.C. 4001-4128), HUD will not approve applications for grants

providing financial assistance for acquisition or construction

(including rehabilitation) of properties located in an area identified

by the Federal Emergency Management Agency (FEMA) as having special

flood hazards, unless:

1. The community in which the area is situated is participating in

the National Flood Insurance program (see 44 CFR parts 59 through 79),

or less than one year has passed since FEMA notification regarding such

hazards; and

2. Flood insurance is obtained as a condition of approval of the

application.

B. Coastal Barriers Resources Act

In accordance with the Coastal Barrier Resources Act (16 U.S.C.

3601), HUD will not approve grant applications for properties in the

Coastal Barrier Resources System.

C. Fair Housing Requirements

Recipients must comply with the requirements of the Fair Housing

Act (42 U.S.C. 3601-19) and the regulations in 24 CFR part 100;

Executive Order 11063 (Equal Opportunity in Housing) and the

regulations in 24 CFR part 107; the fair housing poster regulations in

24 CFR part 110 and the advertising guidelines in 24 CFR part 109; and

Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and the

regulations in 24 CFR part 1.

D. Nondiscrimination on the Basis of Age or Handicap

Recipients must comply with the prohibitions against discrimination

on the basis of age pursuant to the Age Discrimination Act of 1975 (42

U.S.C. 6101-07) and the regulations in 24 CFR part 146; the

prohibitions against discrimination against, and reasonable

modification, accommodation, and accessibility requirements for,

handicapped individuals under section 504 of the Rehabilitation Act of

1973 (29 U.S.C. 794) and the regulations in 24 CFR part 8; the

Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and

regulations issued pursuant thereto (28 CFR part 36); and the

Architectural Barriers Act of 1968 (42 U.S.C. 4151) and the regulations

in 24 CFR part 40.

E. Employment Opportunities

The requirements of section 3 of the Housing and Urban Development

Act of 1968 (12 U.S.C. 1701u) (Employment Opportunities for Lower

Income Persons in Connection with Assisted Projects) and the

regulations in 24 CFR part 135 apply to this program.

F. Minority and Women's Business Enterprises

The requirements of Executive Orders 11246, 11625, 12432, and 12138

apply to this program. Consistent with HUD's responsibilities under

these orders, recipients must make efforts to encourage the use of

minority and women's business enterprises in connection with funded

activities.

G. OMB Circulars

The policies, guidelines, and requirements of OMB Circular Nos. A-

87 (Cost Principles Applicable to Grants, Contracts and Other

Agreements with State and Local Governments) and 24 CFR part 85

(Administrative Requirements for Grants and Cooperative Agreements to

State, Local, and Federally Recognized Indian Tribal Governments), as

modified by 24 CFR 941, subpart F relating to the procurement of

partners in mixed-finance developments, apply to the award, acceptance,

and use of assistance under the program by PHAs, and to the remedies

for noncompliance, except when inconsistent with the provisions of the

1996 Appropriations Act, other Federal statutes, or this NOFA.

Recipients are also subject to the audit requirements of OMB Circular

A-128 implemented at 24 CFR part 44. Copies of OMB Circulars may be

obtained from E.O.P. Publications, Room 2200, New Executive Office

Building, Washington, DC 20503, telephone (202) 395-7332 (this is not a

toll-free number). There is a limit of two free copies.

H. Drug-Free Workplace

Applicants must certify that they will provide a drug-free

workplace, in accordance with the Drug-free Workplace Act of 1988 and

HUD's implementing regulations at 24 CFR part 24, subpart F.

I. Debarred or Suspended Contractors

The provisions of 24 CFR part 24 apply to the employment,

engagement of services, awarding of contracts, subgrants, or funding of

any recipients, or contractors or subcontractors, during any period of

debarment, suspension, or placement in ineligibility status.

J. Conflict of Interest

In addition to the conflict of interest requirements in 24 CFR part

85, no person who is an employee, agent, consultant, officer, or

elected or appointed official of the PHA and who exercises or has

exercised any functions or responsibilities with respect to activities

assisted under an HOPE VI grant, or who is in a position to participate

in a decisionmaking process or gain inside information with regard to

such activities, may obtain a financial interest or benefit from the

activity, or have an interest in any contract, subcontract, or

agreement with respect thereto, or the proceeds thereunder, either for

himself or herself or for those with whom he or she has family or

business ties, during his or her tenure or for one year thereafter.

[[Page 38037]]

2. HUD may grant an exception to the exclusion in paragraph (1) of

this section on a case-by-case basis when it determines that such an

exception will serve to further the purposes of the revitalization

demonstration and the effective and efficient administration of the

revitalization program. HUD will consider an exception only after the

applicant or recipient has provided a disclosure of the nature of the

conflict, accompanied by an assurance that there has been public

disclosure of the conflict and a description of how the public

disclosure was made, and an opinion of the applicant's or recipient's

attorney that the interest for which the exception is sought would not

violate State or local laws. In determining whether to grant a

requested exception, HUD will consider the cumulative effect of the

following factors, as applicable:

a. Whether the exception would provide a significant cost benefit

or an essential degree of expertise to the revitalization program that

would otherwise not be available;

b. Whether an opportunity was provided for open competitive bidding

or negotiation;

c. Whether the person affected is a member of a group or class

intended to be the beneficiaries of the activity, and the exception

will permit such person to receive generally the same interest or

benefits as are being made available or provided to the group or class;

d. Whether the affected person has withdrawn from his or her

functions or responsibilities, or the decisionmaking process, with

respect to the specific activity in question;

e. Whether the interest or benefit was present before the affected

person was in a position as described in paragraph 1 of this section;

f. Whether undue hardship will result either to the applicant,

recipient, or the person affected when weighed against the public

interest served by avoiding the prohibited conflict; and

g. Any other relevant considerations.

K. Labor Standards

Where HOPE VI funds provide assistance with respect to low-income

housing (including Section 8 housing) that will be subject to a

contract for assistance under the U.S. Housing Act of 1937, Davis-Bacon

or HUD-determined wage rates apply to development or operation of the

housing to the extent required under section 12 of the Act. Under

section 12, the wage rate requirements do not apply to individuals who:

perform services for which they volunteered; do not receive

compensation for those services or are paid expenses, reasonable

benefits, or a nominal fee for the services; and are not otherwise

employed in the work involved (24 CFR part 70). In addition, if other

Federal programs are used in connection with the revitalization

program, labor standards requirements apply to the extent required by

such other Federal programs. For example, if CDBG program funds are

used in connection with the revitalization program, the labor standards

requirements of that program would apply with respect to the portion of

work funded thereby.

L. Lead-Based Paint Testing and Abatement

Any property assisted under the revitalization program established

under this NOFA constitutes HUD-associated housing for the purpose of

the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.)

and is therefore subject to 24 CFR part 35; 24 CFR part 965, subpart H;

and 24 CFR 968.110(k). Tenant-based assistance provided to PHAs under

this program will be subject to 24 CFR 982.401 and 24 CFR part 35.

Unless otherwise provided, recipients shall be responsible for testing

and abatement activities.

M. Relocation

1. The requirements of the Uniform Relocation Assistance and Real

Property Acquisition Policies Act of 1970 and government-wide

implementing regulations at 49 CFR part 24 apply to this program.

2. Temporary Relocation. The recipient must provide each resident

of an eligible property, who is required to relocate temporarily to

permit work to be carried out, with suitable, decent, safe, and

sanitary housing for the temporary period, and must reimburse the

resident for all reasonable out-of-pocket expenses incurred in

connection with the temporary relocation, including the costs of moving

to and from the temporarily occupied housing and any increase in

monthly costs of rent and utilities.

IX. Other Matters

A. Paperwork Reduction Act

The information collection requirements of this NOFA (including

Forms HUD-52825-A and HUD-52820-A required by Sections K.1.a and M.3 of

the NOFA) have been submitted to the Office of Management and Budget

(OMB) for review and temporary approval under the Paperwork Reduction

Act of 1995 (44 U.S.C. 3501-3520) and 5 CFR 1320.13. 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. The OMB control number, when assigned, will be

announced by separate notice in the Federal Register.

In addition, in today's NOFA HUD is soliciting comments, as

required under 5 CFR 1320.8(d), before submitting the information

collection requirements contained in this NOFA to OMB for regular

review in accordance with 5 CFR 1320.10. HUD is seeking comments from

members of the public and affected agencies concerning the proposed

collection of information to:

(1) Evaluate whether the proposed collection of information is

necessary for the proper performance of the functions of the agency,

including whether the information will have practical utility;

(2) Evaluate the accuracy of the agency's estimate of the burden of

the proposed collection of information;

(3) Enhance the quality, utility, and clarity of the information to

be collected; and

(4) Minimize the burden of the collection of information on those

who are to respond; including through the use of appropriate automated

collection techniques or other forms of information technology, e.g.,

permitting electronic submission of responses. Interested persons are

invited to submit comments according to the instructions in the Dates

and Addresses sections of this NOFA.

This Notice also lists the following information:

Title of Proposal: NOFA for Public Housing Demolition, Site

Revitalization, and Replacement Housing Grants (HOPE VI) (FR 4076).

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

information collection is required in connection with the issuance of

this NOFA, announcing the availability of approximately $480 million

for grants public housing demolition, revitalization, and replacement

housing.

Form Numbers: HUD-52820-A and HUD-52828-A

Members of Affected Public: Public housing agencies.

Estimation of the Total Number of Hours Needed to Prepare the

Information Collection including Number of Respondents, Frequency of

Response, and Hours of Response:

[[Page 38038]]

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

Total

Submission requirements Number of Number of annual Hours per Total

respondents responses response response

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

Application.................................... 500 1 500 40 20,000

Demolition/Disposition Application............. 500 1 500 10 5,000

Resident Consultation.......................... 500 1 500 4 2,000

HOPE VI Budget Form HUD-52825-A................ 500 1 500 6 3,000

PHA Board Resolution for Submission of HOPE VI

Application Form HUD-52820-A.................. 500 1 500 1 500

Total Burden............................. 30,500

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

Status of the Proposed Information Collection: Emergency processing

request pending.

B. Environmental Review

A Finding of No Significant Impact with respect to the environment

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

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

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

available for public inspection and copying between 7:30 am and 5:30 pm

weekdays at the Office of the Rules Docket Clerk, 451 Seventh Street,

SW., Room 10276, Washington, DC 20410.

C. Impact on the Family

The General Counsel, as the Designated Official for Executive Order

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

NOFA will not have the potential for significant impact on family

formation, maintenance, and general well-being within the meaning of

the order. No significant change in existing HUD policies and programs

will result from the issuance of this NOFA, as those policies and

programs relate to family concerns. To the extent that there is impact

on the family, revitalization under this program can be expected to

support families by enabling low-income families to live in decent,

safe, and sanitary housing.

D. Federalism Impact

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

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

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

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

on the distribution of power and responsibilities between them and

other levels of government. While the NOFA offers financial assistance

to units of general local government, none of its provisions will have

an effect on the relationship between the Federal Government and the

States, or the States' political subdivisions.

E. 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.

F. 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, 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.) 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.

G. 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 in 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,

[[Page 38039]]

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.

Dated: July 17, 1996.

Michael B. Janis,

General Deputy Assistant Secretary for Public Indian Housing.

[FR Doc. 96-18543 Filed 7-17-96; 3:59 pm]

BILLING CODE 4210-33-P