NOFA for Rental Assistance for Persons With Disabilities, in Support of Designated Housing Allocation Plans

SUMMARY: This notice announces the availability of up to $78.6 million

($20.3 million in two-year budget authority and $58.3 million in five-

year budget authority) for Section 8 rental certificates and vouchers

for persons with disabilities in support of designated housing

allocation plans. This funding will support approximately 4,300 rental

vouchers and certificates. Public housing agencies (HAs) are invited to

respond to this NOFA. This NOFA is not applicable to Indian Housing

Authorities (IHAs), as the requirements of Section 7 (42 U.S.C. 1437e)

pertinent to designated housing allocation plans are not applicable to

IHAs.

The purpose is to provide rental vouchers and certificates to

enable persons with disabilities to rent affordable private housing.

DATES: There is no application deadline for this NOFA.

Applications may be submitted by HAs to the local HUD Office

immediately following the publication of this NOFA, or at any

subsequent time. The $78.6 million in funding available under this NOFA

will be used to approve HA applications on a first-come, first-served

basis until all the funding has been obligated. Any additional funding

made available for this purpose will also be used to approve HA

applications in accordance with this NOFA. Consequently, this NOFA has

no closing date and applications will continue to be accepted by the

local HUD Offices until further notice. HUD will not accept application

materials sent via facsimile (FAX) transmission.

ADDRESSES: HUD Headquarters, Office of Public and Assisted Housing

Operations, Room 4206, 451 Seventh Street, S.W., Washington, D.C.,

20410; and the local HUD State or Area Office, Attention: Director,

Office of Public Housing, are the official places of receipt for all

applications. An HA's application (see paragraph C., Application

Submission Requirements, regarding the multiple components that must

comprise an HA's application) should be submitted concurrently to both

offices. For ease of reference, the term ``HUD Office'' will be used

throughout this NOFA to mean the HUD State Office, and HUD Area Office.

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

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

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

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

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

TTY by calling the Federal Information Relay Service at 1-800-877-8339

(this is a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The Section 8 information collection requirements contained in this

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

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

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

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

collection of information unless the collection displays a valid

control number.

Family Self-Sufficiency (FSS) Program Requirement

Unless specifically exempted by HUD, all rental voucher or rental

certificate funding reserved with FY 1996 funds (except funding for

renewals or amendments) will be used to establish or contribute to the

minimum size of an HA's FSS program.

A. Purpose and Substantive Description

(1) Authority. Legislative authority to provide Section 8

assistance in support of allocation plans to designate public housing

for occupancy by elderly families only, persons with disabilities only,

and/or elderly families and disabled families only (covering $20.3

million of the total of $78.6 million available through this NOFA) is

found at Section 7 of the U.S. Housing Act of 1937 (42 U.S.C. 1437e).

The Omnibus Consolidated Rescissions and Appropriations Act, Pub.L 104-

134, approved April 26, 1996 (Appropriations Act), contains language

authorizing the use of Section 8 rental certificate and voucher funding

for housing agencies to implement allocation plans approved by the

Secretary for designated housing. Legislative authority (applicable to

$58.3 million of the total of $78.6 million available under this NOFA)

for rental assistance for persons with disabilities is found in the

Appropriations Act which states that the Secretary may designate up to

25 percent of the amounts earmarked for Section 811 of the National

Affordable Housing Act of 1990 (42 U.S.C. 8013) for tenant-based

assistance, as authorized under that section.

(2) Application Funding. HUD will award funding for rental vouchers

or certificates to HAs that submit an allocation plan to designate

public housing for occupancy by elderly families only, disabled

families only, and/or disabled and elderly families only, and that also

administer a Section 8 rental certificate or rental voucher program.

HUD will make available approximately 4,300 rental vouchers and

certificates (2,000 rental vouchers and certificates representing $20.3

million in two-year budget authority, and 2,300 rental vouchers and

certificates representing $58.3 million in five-year budget authority)

to support approvable HA allocation plans. The $58.3 million of five-

year budget authority will be obligated first, before the $20.3 million

of two-year budget authority is obligated. The rental vouchers and

certificates will assist HAs in providing sufficient alternative

resources to meet the housing needs of those persons with disabilities

who would have been housed by the HA if occupancy in the designated

public housing project were not restricted to elderly households and

assist HAs that wish to continue to designate their buildings as

``mixed elderly and disabled buildings'' but can demonstrate a need for

alternative resources for persons with disabilities that is consistent

with the jurisdiction's Consolidated Plan and the low-income housing

needs of the jurisdiction. Applicants who choose to apply should review

the Housing Program Opportunity Extension Act of 1996, Pub.L 104-120,

approved March 28, 1996 (Extender Act), which significantly changed the

requirements for public housing allocation plans. HUD has not yet

issued regulations implementing the Extender Act; however, an

explanatory HUD publication, Notice PIH 96-60 (HA), was issued on

August 5, 1996. The Notice states that HAs are not normally required to

submit allocation plans if they wish to keep all their ``elderly''

housing as ``mixed population'' housing; however, HAs that wish to

obtain certificates under this NOFA must by law submit an allocation

plan in accordance with this NOFA.

[[Page 56091]]

HUD intends to fund all approvable applications for designated housing

allocation plans on a first-come, first-served basis.

(3) Limit on Rental Assistance Requested. An HA submitting a

designated housing allocation plan may apply for only the number of

units needed to meet the requirements of the allocation plan to provide

housing resources for persons who otherwise would have received public

housing.

(4) Guidelines.

(a) Definitions.

Allocation plan. A HUD-approved allocation plan required of HAs

seeking to designate a project for occupancy by elderly families only,

disabled families only, and/or elderly and disabled families only. See

42 U.S.C. 1437e, as amended by the Extender Act. (The requirements of

42 U.S.C. 1437e are not applicable to IHAs.)

Disabled Family. A family whose head, spouse or sole member is a

person with disabilities. The term ``disabled family'' may include two

or more persons with disabilities living together, and one or more

persons with disabilities living with one or more persons who are

determined to be essential to the care or well-being of the person or

persons with disabilities. A disabled family may include persons with

disabilities who are elderly.

Person with disabilities. A person who--

(a) Has a disability as defined in section 223 of the Social

Security Act (42 U.S.C. 423), or

(b) Is determined to have a physical, mental or emotional

impairment that:

(i) Is expected to be of long-continued and indefinite duration;

(ii) Substantially impedes his or her ability to live

independently; and

(iii) Is of such a nature that such ability could be improved by

more suitable housing conditions, or

(c) Has a developmental disability as defined in section 102 of the

Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C.

6001(5)).

The term ``person with disabilities'' does not exclude persons who

have the disease of acquired immunodeficiency syndrome (AIDS) or any

conditions arising from the etiologic agent for acquired

immunodeficiency syndrome (HIV).

(b) Eligible HAs. HAs that submit an allocation plan to designate

public housing for occupancy by elderly families only, disabled

families only, and/or elderly and disabled families only, receive HUD

approval of that allocation plan, and that also administer a Section 8

Rental Certificate or Rental Voucher Program.

Some housing agencies currently administering the Section 8 Rental

Voucher and Certificate Programs have, at the time of publication of

this NOFA, major program management findings that are open and

unresolved or other significant program compliance problems (e.g., HA

has not implemented mandatory FSS Program). HUD will not accept

applications for additional funding from these HAs as contract

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

not closed to HUD's satisfaction. If these HAs want to apply under this

NOFA, the HA must submit an application that designates another housing

agency, non-profit agency, or contractor that is acceptable to HUD and

includes an agreement with the other housing agency or contractor to

administer the new funding increment on behalf of the HA. The Office of

Public Housing in the local HUD Office will notify, immediately after

the publication of this NOFA, those HAs that are not eligible to apply.

Applications submitted by these HAs without an agreement from another

housing agency or contractor, approved by HUD, to serve as contract

administrator will be rejected.

(c) Eligible Participants.

Only persons with disabilities and disabled families who live in

public housing that has been designated for occupancy by the elderly,

or disabled families who are on the HA's public housing waiting list,

may receive a rental voucher or certificate awarded in conjunction with

designated housing allocation plans. Non-elderly persons with

disabilities and disabled families who live in public housing

designated for the elderly in accordance with an allocation plan

submitted in response to this NOFA, or are on the HA's public housing

waiting list, need not be listed on the Section 8 waiting list in order

to be offered and receive Section 8 rental assistance. These families

may be admitted to the Section 8 program as a special admission (24 CFR

982.203).

(d) Rental Voucher and Certificate Assistance.

(i) Section 8 regulations. HAs must administer the Section 8

assistance in accordance with HUD regulations governing the Section 8

rental voucher and certificate programs.

(ii) Section 8 admissions requirements. Section 8 assistance must

be provided to eligible applicants in conformity with applicable rules

governing the Section 8 program, and in accordance with the terms of

the HA's designated housing allocation plan and administrative plan.

(iii) Turnover. When a rental voucher or rental certificate under

this program becomes available for reissue (e.g., the individual or

family initially selected for the program drops out of the program or

is unsuccessful in the search for a unit), the rental assistance may be

used only for another individual or family eligible for assistance

under this program for five years subject to appropriations for renewal

funding (for two-year budget authority), and the five-year term of the

ACC for rental assistance for five-year budget authority.

(e) HA Responsibilities. In addition to normal HA responsibilities

under the Section 8 programs and under HUD regulations for

nondiscrimination based on handicap (24 CFR 8.28), HAs that receive

rental voucher or certificate funding must:

(i) Assist program participants to gain access to supportive

services available within the community, and to identify public or

private funding sources for accessibility features, when participants

request such assistance, but not require eligible applicants or

participants to accept supportive services as a condition of

participation or continued occupancy in the program;

(ii) Not deny persons who qualify for rental assistance under this

program other housing opportunities for which they are eligible; and

(iii) Not deny other housing opportunities, or otherwise restrict

access to HA programs, to eligible applicants who choose not to

participate.

B. Allocation Amounts

This NOFA announces the availability of up to $78.6 million

(approximately) of budget authority that will support about 4,300

rental vouchers or certificates. HAs are provided with the opportunity

to apply for rental vouchers and certificates in conjunction with

submission of an allocation plan to designate public housing for

elderly families only, disabled families only, and/or elderly and

disabled families only.

C. Application Submission Requirements

(1) Form HUD-52515. All HAs must complete form HUD-52515, Funding

Application, for the Section 8 rental certificate and rental voucher

programs (dated January 1996). This form was recently revised to

include all necessary certifications for Fair Housing, Drug Free

Workplace and Lobbying Activities; therefore, HAs can complete and sign

the new form HUD-52515 to meet the requirements of these

certifications. An application must

[[Page 56092]]

include the information in Section C, Average Monthly Adjusted Income,

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

budget authority necessary to fund the requested number of units.

Copies of form HUD-52515 may be obtained from the local HUD Office.

(2) Local Government Comments. Section 213 of the Housing and

Community Development Act of 1974 requires that HUD independently

determine that there is a need for the housing assistance requested in

applications and solicit and consider comments relevant to this

determination from the chief executive officer of the unit of general

local government. The HUD Office will obtain Section 213 comments from

the unit of general local government in accordance with 24 CFR part

791, subpart C, Applications for Housing Assistance in Areas Without

Housing Assistance Plans. Comments submitted by the unit of general

local government must be considered before an application can be

approved.

For purposes of expediting the application process, the HA should

encourage the chief executive officer of the unit of general local

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

HA application in accordance with Section 213. Because HUD cannot

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

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

state that HUD may consider the letter to be the final comments and

that no additional comments will be forthcoming from the unit of

general local government.

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

must be included in the application submitted to the HUD Office. The HA

must state in its cover letter to the application whether it will

accept a reduction in the number of rental certificates or rental

vouchers and the minimum number of rental certificates or rental

vouchers it will accept, since the funding is limited and HUD may only

have enough funds to approve a smaller amount than the number of rental

certificates or rental vouchers requested.

(4) Approvable Designated Housing Allocation Plan. The application

must include an approvable allocation plan to designate housing [for

the elderly] in accordance with 42 U.S.C. 1437e, as amended by the

Extender Act.

D. Corrections to Deficient Applications

(1) Acceptable Applications. The HUD Office will initially screen

all applications and notify HAs of deficiencies (exclusive of the

allocation plan which will be reviewed by HUD Headquarters) by letter

within 7 calendar days.

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

days from the date of the issuance of the HUD notification letter to

submit the missing or corrected information to the HUD Office before

the application can be considered for further processing by HUD.

All HAs must submit corrections within 14 calendar days from the

date of the HUD Office letter notifying the applicant of any such

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

time in the appropriate HUD Office), of the 14th calendar day of the

correction period will not be accepted and the application will be

rejected as incomplete.

(2) Unacceptable Applications. (a) After the 14-calendar day

deficiency correction period, the HUD Office will immediately notify

any HA that submitted an application (exclusive of the allocation plan

portion of the application) that the HUD Office determines is not

acceptable for processing. The HUD Office must also concurrently notify

HUD Headquarters, Attention: Gerald J. Benoit, Director, Operations

Division, Room 4220, 451 Seventh Street, S.W., Washington, D.C., 20410,

of this decision so that Headquarters will be able to take this into

consideration as part of its processing of the HA's allocation plan.

The HUD Office notification of rejection letter to the HA and HUD

Headquarters must state the basis for the decision.

(b) Applications for Section 8 rental assistance (exclusive of the

allocation plan) that fall into any of the following categories will

not be processed:

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

by the Department of Justice or there is a pending administrative

action for civil rights violations instituted by HUD (including a

charge of discrimination under the Fair Housing Act).

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

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

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

HUD-approved resident selection and assignment plan or compliance

agreement designed to correct the areas of noncompliance.

(iii) There are outstanding findings of noncompliance with civil

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

formal administrative proceedings, or the Secretary has issued a charge

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

is operating under a conciliation or compliance agreement designed to

correct the areas of noncompliance.

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

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

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

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

of 1973 and HUD regulations (24 CFR 8.57).

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

audit findings, Fair Housing and Equal Opportunity monitoring review

findings, or HUD management review findings for its rental voucher or

rental certificate programs. The only exception to this category is if

the HA has been identified under the policy established in section

A.(4)(b) of this NOFA and the HA makes application with a designated

contract administrator.

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

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

additional increment of rental vouchers or rental certificates.

(vii) An HA application (exclusive of the allocation plan) that

does not comply with the requirements of 24 CFR 982.102 and this NOFA,

after the expiration of the 14-calendar day technical deficiency

correction period will be rejected from processing.

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

lease-up rate of 90 percent of units in its HUD-approved budget for the

HA fiscal year prior to application for funding in each of its rental

voucher and certificate programs.

E. Application Selection Process

(1) HUD Office Review. Upon receipt, the Office of Public Housing

in the HUD Office will screen HA applications (exclusive of the

allocation plan) and stop processing any applications found

unacceptable for further processing, as per paragraph D.(2) above.

If the HUD Office determines that the application (exclusive of the

allocation plan) is approvable, it will notify HUD Headquarters that it

is recommending that the application be funded (contingent upon

Headquarters' approval of the allocation plan). Headquarters [at the

address specified in paragraph D.(2)] shall be notified by the HUD

Office within 30 days of the date of its receipt of the HA's

application in response to this NOFA.

If HUD Headquarters disapproves an allocation plan submitted in

response to this NOFA, the HA's Section 8 application will be rejected

and the HA

[[Page 56093]]

will not be eligible for the rental vouchers and certificates available

under this NOFA.

(2) Funding. Headquarters will fund, on a first-come, first-served

basis, all applications for which the allocation plans are determined

approvable by HUD Headquarters and for which the Section 8 application

is recommended for approval by the HUD Office. The ``first-come''

status of each HA's application shall be based on the date and time the

concurrently submitted application (see paragraph entitled Addresses at

the beginning of this NOFA) is received in HUD Headquarters where the

designated housing allocation plan portion of the application will be

reviewed. As HAs are selected, the cost of funding the applications

will be subtracted from the funds available. Five-year budget authority

will be obligated first until all such funds have been obligated, and

then two-year budget authority will be obligated until all those funds

have been obligated.

(3) Program Type. If an HA application specifically requests

funding for either rental vouchers or rental certificates, and funding

for the specified program is not available, HUD will award the

available form of assistance, notwithstanding the program type

specified in the HA application.

F. Other Matters

Catalog of Federal Domestic Assistance. The Federal Domestic

Assistance numbers for this program are: 14.855 and 14.857.

Environmental Impact. A Finding of No Significant Impact with

respect to the environment was made for the FY 1995 NOFA for this

program in accordance with the Department's regulations at 24 CFR part

50, which implement section 102(2)(C) of the National Environmental

Policy Act of 1969 (42 U.S.C. 4332). That Finding remains applicable to

this NOFA and is available for public inspection between 7:30 a.m. and

5:30 p.m. weekdays in the Office of the Rules Docket Clerk, Office of

General Counsel, Department of Housing and Urban Development, room

10276, 451 Seventh Street, SW, Washington, D.C. 20410.

Federalism Impact. The General Counsel, as the Designated Official

under section 6(a) of Executive Order 12612, Federalism, has determined

that the policies contained in this notice will not have substantial

direct effects on States or their political subdivisions, or the

relationship between the Federal Government and the States, or on the

distribution of power and responsibilities among the various levels of

government. As a result, the notice is not subject to review under the

Order. This notice is a funding notice and does not substantially alter

the established roles of the Department, the States, and local

governments, including HAs.

Impact on the Family. The General Counsel, as the Designated

Official under Executive Order 12606, The Family, has determined that

this notice does not have potential for significant impact on family

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

the Executive Order and, thus, is not subject to review under the

Order. This is a funding notice and does not alter program requirements

concerning family eligibility.

Accountability in the Provision of HUD Assistance. Section 102 of

the Department of Housing and Urban Development Reform Act of 1989 (HUD

Reform Act) and the final rule codified at 24 CFR part 4, subpart A,

published on April 1, 1996 (61 FR 1448), contain a number of provisions

that are designed to ensure greater accountability and integrity in the

provision of certain types of assistance administered by HUD. On

January 14, 1992, HUD published, at 57 FR 1942, a notice that also

provides information on the implementation of section 102. The

documentation, public access, and disclosure requirements of section

102 are applicable to assistance awarded under this NOFA as follows:

Documentation and public access requirements. HUD will ensure that

documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

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

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

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

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

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

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

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis.

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

all applicant disclosure reports (HUD Form 2880) submitted in

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

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

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

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

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

regulations at 24 CFR part 15.

Section 103 HUD Reform Act. Section 103 of the Department of

Housing and Urban Development Reform Act of 1989, and HUD's

implementing regulation codified at subpart B of 24 CFR part 4, applies

to the funding competition announced today. These requirements 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 section 103 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 section 103 and subpart B of 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.

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 the Interior and

Related Agencies Appropriations Act for Fiscal Year 1990 (31 U.S.C.

1352) (the ``Byrd Amendment'') and the implementing regulations at 24

CFR part 87. These authorities prohibit recipients of Federal

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

the Executive or Legislative Branches of the Federal Government in

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

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

loans unless the recipient has made an acceptable certification

regarding lobbying. Under 24 CFR part 87, applicants, recipients, and

subrecipients of assistance exceeding $100,000 must certify that no

Federal funds have been or will be spent on lobbying activities in

connection with the assistance. IHAs established by an Indian tribe as

a result of the exercise of the tribe's sovereign power are excluded

from coverage of the Byrd

[[Page 56094]]

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

the statute's coverage.

Dated: October 22, 1996.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and Indian Housing.

[FR Doc. 96-27839 Filed 10-29-96; 8:45 am]

BILLING CODE 4210-33-P