Notice of Funding Availability, Family Unification Program, Fiscal Year 1997

SUMMARY: Purpose. This notice announces the availability of FY 1997

funding for section 8 rental certificates under the Family Unification

Program, which will provide rental assistance for approximately 6,400

families. The purpose of the Family Unification Program is to provide

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

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

from their families.

Available Funds. Up to $ 58.8 million in one-year budget authority.

Eligible Applicants. Housing agencies (HAs), including Indian

Housing Authorities (IHAs), are invited to submit applications for

housing assistance. Applications from twenty-four HAs that were

included in the FY 1996 lottery and were not selected for funding in FY

1996 because of insufficient funds will be funded with FY 1997 funds.

HUD will fund applications for Section 8 rental certificates from these

HAs for approximately 1,100 units at an estimated cost of $10 million

of one-year budget authority from FY 1997 funds. The balance of

available funding of approximately $ 48.8 million in one-year budget

authority will be made available for a new competition under this NOFA.

For FY 1997, HUD has determined that there are sufficient funds

available to conduct a national lottery. Therefore, unlike in prior

fiscal years when HAs within sixteen selected states only were eligible

to apply, for FY 1997, any HA nationwide that currently administers a

Section 8 certificate program or rental voucher program is eligible to

apply and may be eligible for the lottery selection process for the FY

1997 Section 8 Family Unification Program.

DATES: The application deadline for the Family Unification program NOFA

is June 17, 1997, 3:00 p.m., local time.

This application deadline is firm as to date and hour. In the

interest of fairness to all competing HAs, HUD will not consider any

application that is received after the application deadline. Applicants

should take this practice into account and make early submission of

their materials to avoid any risk of loss of eligibility brought about

by unanticipated delays or other delivery-related problems. HUD will

not accept, at any time during the NOFA competition, application

materials sent via facsimile (FAX) transmission.

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

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

applications, except applications from Indian Housing Authorities

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

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

official receipt for IHA applications. For ease of reference, the term

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

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

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

HUD Native American Programs Office, the appropriate office will be

used.

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

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

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

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

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

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

at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The section 8 information collection requirements contained in this

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

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

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

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

collection of information unless the collection displays a valid

control number.

Promoting Comprehensive Approaches to Housing and Community Development

HUD is interested in promoting comprehensive, coordinated

approaches to housing and community development. Economic development,

community development, public housing revitalization, homeownership,

assisted housing for special needs populations, supportive services,

and welfare-to-work initiatives can work better if linked at the local

level. Toward this end, the Department in recent years has developed

the Consolidated Planning process designed to help communities

undertake such approaches.

In this spirit, it may be helpful for applicants under this NOFA to

be aware of other related HUD NOFAs that have recently been published

or are expected to be published in the near future. By reviewing these

NOFAs with respect to their program purposes and the eligibility of

applicants and activities, applicants may be able to relate the

activities proposed for funding under this NOFA to the recent and

upcoming NOFAs and to the community's Consolidated Plan.

The related NOFAs that the Department has published are as follows:

the NOFA for the Continuum of Care Assistance, published on April 8,

1997 (62 FR 17024), the NOFA for the Section 8 Mainstream Housing

Opportunities for Persons with Disabilities, published on April 10,

1997 (62 FR 17666), and the NOFA for the Rental Assistance for Persons

with Disabilities in Support of Designated Housing Allocation Plans,

published on April 10, 1997 (62 FR 17672). The related NOFAs that the

Department expects to publish within the next few weeks include: the

NOFA for Housing Opportunities for Persons with Aids; the NOFA for the

Supportive Housing for the Elderly; the NOFA for Supportive Housing for

Persons with Disabilities; and the NOFA for Section 8 Service

Coordinators.

To foster comprehensive, coordinated approaches by communities, the

Department intends for the remainder of FY 1997 to continue to alert

applicants to upcoming and recent NOFAs as each NOFA is published. In

addition, a complete schedule of NOFAs to be published during the

fiscal year and those already published appears under the HUD Homepage

on the Internet, which can be accessed at http://www.hud.gov/

nofas.html. Additional steps on NOFA coordination may be considered for

FY 1998.

For help in obtaining a copy of your community's Consolidated Plan,

please contact the community development office of your municipal

government.

Family Self-Sufficiency (FSS) Program Requirement

Unless specifically exempted by HUD, all rental voucher or rental

certificate funding reserved in FY 1997 (except funding for renewals or

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

program.

[[Page 19209]]

A. Purpose and Substantive Description of Family Unification Program

(1) Authority

The Family Unification Program is authorized by Section 8(x) of the

United States Housing Act of 1937, 42 U.S.C. 1437f(x).

The Department of Veterans Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, 1997 (Pub. L.

No. 104-204) provides funding for the Family Unification Program.

(2) Background

The Family Unification Program is a program under which Section 8

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

housing is a primary factor which would result in:

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

out-of-home care; or

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

family from out-of-home care.

The purpose of the Family Unification Program is to promote family

unification by providing rental assistance to families for whom the

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

threat of imminent separation, of children from their families.

Rental certificates awarded under the Family Unification Program

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

rental certificate program (24 CFR parts 882 and 982). If the family

requests a rental voucher, the HA may issue a rental voucher (24 CFR

parts 887 and 982) to a family selected for participation in the Family

Unification Program if the HA has one available.

(3) Eligibility of HAs

(a) Family Unification Program Eligibility. HUD has revised the

family unification eligibility criteria for FY 1997 to allow any HA

nationwide that currently administers a Section 8 rental voucher or

certificate program to apply.

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

Program Findings. 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 any of these HAs want to apply for

the Family Unification Program, the HA must submit an application that

designates another housing agency, nonprofit agency, or contractor that

is acceptable to HUD. The HA application must include an agreement by

the other housing agency or contractor to administer the program for

the new funding increment on behalf of the HA and a statement that

outlines the steps the HA is taking to resolve the program findings.

Immediately after the publication of this NOFA, the Office of Public

Housing in the local HUD Office will notify, in writing, those HAs that

are not eligible to apply because of outstanding management or

compliance problems. The HA may appeal the decision, if HUD has

mistakenly classified the HA as having outstanding management or

compliance problems. Any appeal must be accompanied by conclusive

evidence of HUD's error and must be received prior to the application

deadline. Applications submitted by these HAs without an agreement from

another housing agency or contractor, approved by HUD, to administer

the program on behalf of the HA will be rejected.

(4) Program Guidelines

(a) Eligibility. (i) Family Unification eligible families. Each HA

must modify its selection preference system to permit the selection of

Family Unification eligible families for the program with available

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

eligible family'' means a family that:

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

whom the lack of adequate housing is a primary factor in the imminent

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

in the delay of discharge of a child, or children, to the family from

out-of-home care; and

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

assistance.

(ii) Lack of Adequate Housing. The lack of adequate housing means:

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

(B) A family is homeless; or

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

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

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

housing if the unit where the family lives:

(A) Is dilapidated;

(B) Does not have operable indoor plumbing;

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

exclusive use of a family;

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

the exclusive use of a family;

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

electrical service;

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

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

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

government.

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

is dilapidated if the unit where the family lives does not provide safe

and adequate shelter, and in its present condition endangers the

health, safety, or well-being of a family, or the unit has one or more

critical defects, or a combination of intermediate defects in

sufficient number or extent to require considerable repair or

rebuilding. The defects may result from original construction, from

continued neglect or lack of repair or from serious damage to the

structure.

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

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

(B) Has a primary nighttime residence that is:

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

provide temporary living accommodations (including welfare hotels,

congregate shelters, and transitional housing);

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

intended to be institutionalized; or

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

as, a regular sleeping accommodation for human beings.

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

domestic violence if:

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

violence; or

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

in domestic violence.

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

violence directed against one or more members of the applicant family

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

(vii) Involuntarily Displaced. For a family to qualify as

involuntarily displaced because of domestic violence:

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

recently or is of a continuing nature; and

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

violence

[[Page 19210]]

will not reside with the family unless the HA has given advance written

approval. If the family is admitted, the HA may terminate assistance to

the family for breach of this certification.

(viii) Living in Overcrowded Housing. A family is considered to be

living in an overcrowded unit if:

(A) The family is separated from its child [or children] and the

parent(s) are living in an otherwise standard housing unit, but, after

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

for the entire family and would be considered substandard; or

(B) The family is living with its child [or children] in a unit

that is overcrowded for the entire family and this overcrowded

condition may result in the imminent placement of its child [or

children] in out-of-home care.

For purpose of this paragraph (viii), the HA may determine whether

the unit is ``overcrowded'' in accordance with HA subsidy standards.

(ix) Detained Family. A Family Unification eligible family may not

include any person imprisoned or otherwise detained pursuant to an Act

of the Congress or a State law.

(x) Public child welfare agency (PCWA) means the public agency that

is responsible under applicable State or Tribal law for determining

that a child is at imminent risk of placement in out-of-home care or

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

agency may be returned to his or her family.

(b) HA Responsibilities. HAs must:

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

Family Unification Program. The HA, upon receipt of the PCWA list of

families currently in the PCWA caseload, must compare the names with

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

family on the HA's Section 8 waiting list that matches with the PCWA's

list must be assisted in order of their position on the waiting list in

accordance with HA admission policies. Any family certified by the PCWA

as eligible and not on the Section 8 waiting list must be placed on the

waiting list. If the HA has a closed Section 8 waiting list, it must

reopen the waiting list to accept a Family Unification Program

applicant family who is not currently on the HA's Section 8 waiting

list;

(ii) Determine if any families with children on its waiting list

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

the Family Unification Program, and refer such applicants to the PCWA;

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

Section 8 assistance and place eligible families on the Section 8

waiting list;

(iv) Amend the administrative plan in accordance with applicable

program regulations and requirements;

(v) Administer the rental assistance in accordance with applicable

program regulations and requirements; and

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

conduct on the Family Unification Program and cooperate with and

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

responsible for program evaluation.

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

child welfare agency must:

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

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

from the HA;

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

qualifies as a Family Unification eligible family based upon the

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

of 1937, and this notice;

(iii) Commit sufficient staff resources to ensure that Family

Unification eligible families are identified and determined eligible in

a timely manner and to provide follow-up supportive services after the

families lease units; and

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

the Family Unification Program, and submit a certification with the

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

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

HUD-approved contractor having responsibility for program evaluation.

(d) Section 8 Rental Certificate Assistance. The Family Unification

Program provides assistance under the Section 8 rental assistance

programs. Although HUD is providing a special allocation of rental

certificates, the HA may use both rental vouchers and certificates to

assist families under this program.

HAs must administer this program in accordance with HUD's

regulations governing the Section 8 rental certificate and rental

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

selected to participate in the Family Unification Program if the family

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

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

assistance must be reissued to another Family Unification eligible

family for five years from the initial date of execution of the Annual

Contributions Contract subject to the availability of renewal funding.

B. Family Unification Allocation Amounts

This NOFA announces the availability of approximately $58.8 million

for the Family Unification Program which will provide assistance for

about 6,400 families. Each HA with a current Section 8 rental voucher

and certificate program of more than 500 units as shown in the most

recent HUD approved program budget may apply for funding for a maximum

of 100 units. Each HA with a current Section rental voucher or

certificate program of 500 units or less as shown in the most recent

HUD approved program budget may apply for a maximum of 50 units.

The amounts allocated under this NOFA will be awarded under a

national competition, based on the threshold criteria and a lottery for

selection from all approvable applications. The Family Unification

Program is exempt from the fair share allocation requirements of

section 213(d) of the Housing and Community Development Act of 1974 (42

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

subpart D. A few applications for FY 1996 funding that met the

requirements of the FY 1996 NOFA, were included in the FY 1996 lottery

and were not selected for funding from funds in FY 1996 will be

selected using funds appropriated for FY 1997 funding for the Family

Unification Program. In order to allow the HAs that had approvable

applications in FY 1996 to begin implementation of the Family

Unification Program, these FY 1996 applications will be funded upon

publication of this NOFA.

C. Family Unification Application Submission Requirements

(1) Form HUD-52515

Funding Application Section 8 Tenant-Based Assistance, Form HUD-

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

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

Average Monthly Adjusted Income, of Form HUD-52515 in order for HUD to

calculate the amount of Section 8 budget authority necessary to fund

the requested number of certificate units. HAs may obtain a copy of

Form HUD-52515 from the local HUD Office or may download it from the

HUD Home page on the internet's world wide web (http://www.hud.gov).

[[Page 19211]]

(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 with the application

submitted to the HUD Office. Funding is limited, and HUD may only have

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

certificates requested. The HA must state in its cover letter to the

application whether it will accept a smaller number of rental

certificates and the minimum number of rental certificates it will

accept. The cover letter must also include a statement by the HA

certifying that the HA has consulted with the agency or agencies in the

state responsible for the administration of welfare reform to provide

for the successful implementation of the state's welfare reform for

families receiving rental assistance under the family unification

program. The application must include an explanation of how the

application meets, or will meet, Threshold Criteria 1 through 4 in

Section D of this NOFA, below.

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

stating its commitment to provide resources and support for the Family

Unification Program. The PCWA letter of intent must explain:

(i) The definition of eligible family unification program families;

(ii) The method used to identify eligible family unification

program families;

(iii) The process to certify eligible family unification program

families;

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

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

(vi) PCWA experience with the administration of similar programs

including cooperation with a HA.

The PCWA serving the jurisdiction of the HA is responsible for

providing the information for Threshold Criterion 4, PCWA Statement of

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

HA application. This should include a discussion of the case-load of

the PCWA and information about homelessness, family violence resulting

in involuntary displacement, number and characteristics of families who

are experiencing the placement of children in out-of-home care as a

result of inadequate housing, and the PCWA's experience in obtaining

housing through HUD assisted housing programs and other sources for

families lacking adequate housing. A State-wide Public Child Welfare

Agency must provide information on Threshold Criterion 4, PCWA

Statement of Need for Family Unification Program, to all HAs that

request such information; otherwise, HUD will not consider applications

from any HAs with the State-wide PCWA as a participant in its program.

(4) Evaluation Certifications

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

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

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

delegated the responsibility for the program evaluation. No specific

language for this certification is prescribed by HUD.

D. Family Unification Application Rating Process

(1) General

The HUD Office is responsible for rating the applications for the

selection criteria established in this NOFA, and HUD Headquarters is

responsible for selection of applications (including applications rated

by the Native American Programs Office) that will receive assistance

under the Family Unification Program. The HUD Office will initially

screen all applications and determine any technical deficiencies based

on the application submission requirements.

Each eligible application submitted in response to the NOFA, in

order to be eligible for funding, must receive at least 30 points for

Threshold Criterion 1, Unmet Housing Needs, and at least 20 points for

Threshold Criterion 2, Efforts of HA to Provide Area-Wide Housing

Opportunities for Families. Each application must also meet the

requirements for Threshold Criterion 3, Coordination between HA and

Public Child Welfare Agency, and Threshold Criterion 4, Public Child

Welfare Agency Statement of Need for Family Unification Program.

(2) Threshold Criteria

(a) Threshold Criterion 1: Unmet Housing Needs (50 Points).

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

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

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

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

problems based on 1990 Census, minus the number of federally assisted

housing units provided since the 1990 Census.

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

practicable, consider all units provided since the 1990 Census under

the Section 8 Rental Voucher and Certificate programs, any other

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

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

Rental Housing program.

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

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

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

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

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

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

assign one of the following point totals:

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

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

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

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

allocation area's unmet need.

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

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

allocation area's unmet need.

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

equal to or less than 30 percent but greater than 20

[[Page 19212]]

percent of the allocation area's unmet need.

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

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

allocation area's unmet need.

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

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

The HUD Office will not consider for funding any HA application

receiving zero (0) points.

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

Rural Housing Service (RHS) of applications it receives and ask that

RHS provide advisory comments concerning the market for additional

assisted housing or the possible impact the proposed units may have on

RHS projects. Applications for which RHS has provided comments

expressing concerns about market need or the continued stability of

existing RHS projects, with which HUD agrees, will receive zero points

for this criterion.

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

Housing Opportunities for Families (60 Points).

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

provide area-wide housing opportunities for families. The efforts

described in response to this selection criterion must be beyond those

required by federal law or regulation such as the portability

provisions of the Section 8 rental voucher and certificate programs.

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

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

have established cooperative agreements with other HAs or created a

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

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

Office will assign points to HAs that have established relationships

with nonprofit groups to provide families with additional counseling,

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

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

concentrations of poverty.

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

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

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

the total points for this Selection Criterion:

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

participates in an area-wide rental voucher and certificate exchange

program where all HAs absorb portable Section 8 families.

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

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

selection of families to participate in its rental voucher and

certificate programs or the HA certifies that it will eliminate

immediately any ``residency preference'' currently in its

administrative plan.

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

staff will provide housing counseling for families that want to move to

low-poverty on non-minority areas, or if the HA has established a

contractual relationship with a nonprofit agency or a local

governmental entity to provide housing counseling for families that

want to move to low-poverty or non-minority areas. The five HAs

approved for the FY 1993 Moving to Opportunity (MTO) for Fair Housing

Demonstration and any other HAs that receive counseling funds from HUD

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

demolition of public housing, regional opportunity counseling, or mixed

population projects) may qualify for points under this assessment, but

these HAs must identify all activities undertaken, other than those

funded by HUD, to expand housing opportunities.

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

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

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

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

minority areas.

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

participates with other HAs in using a metropolitan wide or combined

waiting list for selecting participants in the program.

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

has implemented other initiatives that have resulted in expanding

housing opportunities in areas that do not have undue concentrations of

poverty or minority families.

(c) Threshold Criterion 3: Coordination Between HA and Public Child

Welfare Agency to Identify and Assist Eligible Families.

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

will use to identify and assist Family Unification eligible families.

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

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

PCWA letter of intent and other information must include an explanation

of: the method for identifying Family Unification eligible families,

the PCWA's certification process for determining Family Unification

eligible families, the responsibilities of each agency, the assistance

that the PCWA will provide to families in locating housing units, the

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

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

administering a similar program.

(d) Threshold Criterion 4: Public Child Welfare Agency Statement of

Need for Family Unification Program.

The application must include a statement by the PCWA describing the

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

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

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

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

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

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

jurisdiction for the Family Unification program that is not being met

through existing programs. The narrative must include specific

information relevant to the area to be served, about homelessness,

family violence resulting in involuntary displacement, number and

characteristics of families who are experiencing the placement of

children in out-of-home care or the delayed discharge of children from

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

past experience in obtaining housing through HUD assisted programs and

other sources for families lacking adequate housing.

E. Corrections to Deficient Family Unification Applications

(1) Acceptable Applications

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

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

this NOFA. The HUD Office will initially screen all applications and

notify HAs of technical deficiencies by letter.

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

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

letter to submit the missing or corrected information to the HUD

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

improve the substantive quality of the application relative to the

rating factors.

All HAs must submit corrections within 14 calendar days from the

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

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

[[Page 19213]]

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

correction period will not be accepted and the application will be

rejected as incomplete.

(2) Unacceptable Applications

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

period, the HUD Office will disapprove HA applications that it

determines are not acceptable for processing. The HUD Office

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

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

will not be processed:

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

by the Department of Justice or there is a pending administrative

action for civil rights violations instituted by HUD (including a

charge of discrimination under the Fair Housing Act).

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

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

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

HUD-approved resident selection and assignment plan or compliance

agreement designed to correct the areas of noncompliance.

(iii) There are outstanding findings of noncompliance with civil

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

formal administrative proceedings, or the Secretary has issued a charge

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

is operating under a conciliation or compliance agreement designed to

correct the areas of noncompliance.

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

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

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

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

of 1973 and HUD regulations (24 CFR 8.57).

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

audit findings, Fair Housing and Equal Opportunity monitoring review

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

Rental Voucher, Rental Certificate, or Moderate Rehabilitation

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

Rental Voucher, Rental Certificate, or Moderate Rehabilitation Program,

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

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

policy established in section A.(3)(b) of this NOFA and the HA makes

application with another agency or contractor that will administer the

family unification assistance on behalf of the HA.

(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) After the 14-calendar day technical deficiency correction

period, an HA application that does not comply with the requirements of

24 CFR 982.102 and this NOFA, will be rejected from processing.

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

F. Family Unification Application Selection Process

(1) Funding FY 1996 Applications

The FY 1996 NOFA was published in the Federal Register on May 2,

1996, (61 FR 19761) and provides that HUD may use FY 1997 funds for

applications from the FY 1996 lottery that were not awarded funds in FY

1996. HUD has determined that sufficient funds are available in FY 1997

to fund these applications and to conduct a new lottery in FY 1997 for

new applicants. HUD will fund the remaining FY 1996 lottery

applications upon publication of this NOFA prior to funding any FY 1997

applications. Any HA that applied under the FY 1996 NOFA and is being

funded under the FY 1997 NOFA may also submit an FY 1997 application.

(2) Funding FY 1997 Applications

After the HUD Office has screened HA applications and disapproved

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

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

applications, utilizing the Threshold Criteria and the point

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

Headquarters the following information on each application that passes

the Threshold Criteria:

(1) Name and address of the HA;

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

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

contact person and telephone number;

(4) The requested number of rental certificates in the HA

application and the minimum number of rental certificates specified in

the HA application, and the corresponding budget authority; and

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

certificates requested in the application.

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

lottery. All acceptable applications by HAs identified by the HUD

Offices as meeting the Threshold Criteria identified in this NOFA will

be eligible for the lottery selection process. The costs of funding the

FY 1997 applications will be counted against the total available funds

remaining for the Family Unification Program. If the cost of funding

the applications received by HUD exceeds available funds, in order to

achieve geographic diversity HUD Headquarters will limit the number of

FY 1997 applications selected for funding under the lottery for any

State to no more than 10 percent of the budget authority made available

under this NOFA. However, if establishing this geographic limit results

in unspent budget authority, HUD may modify this limit to assure that

all available funds are used.

Applications will be funded in full for the number of rental

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

if the remaining rental certificate funds are insufficient to fund the

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

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

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

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

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

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

assigning the remaining funding would result in a reduced funding

level.

G. Other Matters

Environmental Impact

This NOFA provides funding under, and does not alter environmental

requirements of, regulations in 24 CFR part 882 subparts A, B, C and F.

887 and 982, which have been previously published in the Federal

Register. This NOFA provides funding only for tenant-based assistance,

which is a categorical exclusion not subject to the individual

compliance requirements of the Federal laws and authorities cited in

Sec. 50.4, and therefore those regulations do not contain environmental

review requirements. Accordingly, under 24 CFR 50.19(c)(5), this NOFA

is categorically excluded from environmental review under the National

Environmental Policy Act of 1969 (42 U.S.C. 4321).

[[Page 19214]]

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 of the HUD Reform Act

HUD's regulation implementing section 103 of the HUD Reform Act,

codified as 24 CFR part 4, applies to the funding competition announced

today. The requirements of the rule continue to apply until the

announcement of the selection of successful applicants.

HUD employees involved in the review of applications and in the

making of funding decisions are restrained by part 4 from providing

advance information to any person (other than persons authorized to

receive such information) 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 (voice), (202) 708-1112

(TTY). (These are not toll-free numbers.) For HUD employees who have

specific program questions, 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 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 sub-recipients of assistance exceeding

$100,000 must certify that no Federal funds have been or will be spent

on lobbying activities in connection with the assistance. IHAs

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

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

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

the statute's coverage.

Dated: April 10, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and Indian Housing.

[FR Doc. 97-10124 Filed 4-17-97; 8:45 am]

BILLING CODE 4210-33-P