Notice of Funding Availability (NOFA) for Supportive Housing for the Elderly

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4202-N-01]

Notice of Funding Availability (NOFA) for Supportive Housing for

the Elderly

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing

Commissioner, HUD.

ACTION: Notice of funding availability (NOFA) for Fiscal Year (FY)

1997.

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SUMMARY: This NOFA announces HUD's funding for supportive housing for

the elderly. This NOFA describes the following: (a) the purpose of the

NOFA, and information regarding eligibility, submission requirements,

available amounts, and selection criteria; and (b) application

processing, including how to apply and how selections will be made.

APPLICATION PACKAGE: The Application Package can be obtained from the

Multifamily Housing Clearinghouse, P.O. Box 6424, Rockville, MD 20850;

telephone 1-800-685-8470 (the TTY number is 1-800-483-2209), from the

appropriate HUD office identified in Appendix B to this NOFA and also

appears under the HUD Homepage on the Internet which can be accessed

under ``Development'' at http://www.hud.gov/fha/fhamf.html. The

Application Package includes a checklist of exhibits and steps involved

in the application process.

DATES: The deadline for receipt of applications in response to this

NOFA is 4 p.m. local time on July 28, 1997. The application deadline is

firm as to date and hour. In the interest of fairness to all

applicants, HUD will not consider any application that is received

after the deadline. Sponsors should take this into account and submit

applications as early as possible to avoid the risk of unanticipated

delays or delivery-related problems. In particular, Sponsors 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 not accept facsimile

(fax), COD, and postage due applications.

ADDRESSES: Applications must be delivered to the Director of the

Multifamily Housing Division in the HUD office for your jurisdiction. A

listing of HUD offices, their addresses, and telephone numbers,

including TTY numbers is attached as Appendix B to this NOFA. HUD will

date and time stamp incoming applications to evidence timely receipt,

and, upon request, will provide the applicant with an acknowledgement

of receipt.

FOR FURTHER INFORMATION CONTACT: The HUD office for your jurisdiction,

as listed in Appendix B to this NOFA.

SUPPLEMENTARY INFORMATION:

I. Purpose and Substantive Description

A. Authority

The Supportive Housing for the Elderly program, or the Section 202

program, is authorized by section 202 of the Housing Act of 1959 (12

U.S.C. 1701q). Section 202 was amended by section 801 of the Cranston-

Gonzalez National Affordable Housing Act (NAHA) (Pub. L. 101-625;

approved November 28, 1990). Section 202 was also amended by the

Housing and Community Development Act of 1992 (HCD Act of 1992) (Pub.

L. 102-550; approved October 28, 1992), and by Public Law 104-19,

enacted on July 27, 1995. Under the Section 202 program, the Secretary

is authorized to provide assistance to private nonprofit organizations

and nonprofit consumer cooperatives to expand the supply of supportive

housing for the elderly. HUD provides the assistance as capital

advances and contracts for project rental assistance in accordance with

24 CFR part 891. This assistance may be used to finance the

construction or rehabilitation of a structure, or acquisition of a

structure from the Federal Deposit Insurance Corporation (formerly held

by the Resolution Trust Corporation) (FDIC/RTC), to be used as

supportive housing for the elderly in accordance with part 891.

Note that on March 22, 1996, HUD published a final rule (61 FR

11948) that consolidated the regulations for the Section 202 Program of

Supportive Housing for the Elderly and the Section 811 Program of

Supportive Housing for Persons with Disabilities in 24 CFR part 891.

For supportive housing for the elderly, the Departments of Veterans

Affairs and Housing and Urban Development, and Independent Agencies

Appropriations Act, 1997 (Pub. L. 104-204; approved September 26, 1996)

(the Act) provides $645,000,000 for capital advances, including

amendments to capital advance contracts (not procurement contracts),

for housing for the elderly as authorized by section 202 of the Housing

Act of 1959 (as amended by the NAHA and HCD Act of 1992), and for

project rental assistance, and amendments to contracts for project

rental assistance, for supportive housing for the elderly under section

202(c)(2) of the Housing Act of 1959, as amended. In accordance with

the waiver authority provided in the Act, the Secretary is waiving the

following statutory and regulatory provision: The term of the project

rental assistance contract is reduced from 20 years to a minimum term

of 5 years and a maximum term which can be supported by funds

authorized by the Act. HUD anticipates that at the end of the contract

terms, renewals will be approved subject to the availability of funds.

In addition to this provision, HUD will reserve project rental

assistance contract funds based on 75 percent rather than on 100

percent of the current operating cost standards for approved units in

order to take into account the average tenant contribution toward rent.

In accordance with an agreement between HUD and the Rural Housing

Service (RHS) to coordinate the administration of the agencies'

respective rental assistance programs, HUD is required to notify RHS of

applications for housing assistance it receives. This notification

gives RHS the opportunity to comment if it has concerns about the

demand for additional assisted housing and possible harm to existing

projects in the same housing market area. HUD will consider the RHS

comments in its review and project selection process.

B. 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, HUD 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 NOFAs that HUD has recently published or

expects to publish 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.

On April 8, 1997, HUD published in the Federal Register the NOFA

for Continuum of Care Assistance. On April 10, 1997, HUD published the

NOFA for

[[Page 28763]]

Rental Assistance for Persons with Disabilities in Support of

Designated Housing Allocation Plans, and the NOFA for Mainstream

Housing Opportunities for Persons with Disabilities. On April 18, 1997,

HUD published the NOFA for the Family Unification Program. On May 7,

1997, HUD published the NOFA for Housing Opportunities for Persons with

AIDS. Other NOFAs related to special population programs include the

NOFA for the Section 811 Program of Supportive Housing for Persons with

Disabilities, which is published elsewhere in today's Federal Register,

and the NOFA for Service Coordinator Funds which HUD expects to publish

within the next few weeks.

To foster comprehensive, coordinated approaches by communities, HUD

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. HUD may

consider additional steps on NOFA coordination 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.

C. Allocation Amounts

In accordance with 24 CFR part 791, the Assistant Secretary will

allocate the amounts available for capital advances for supportive

housing for the elderly. HUD reserves project rental assistance funds

based upon 75 percent of the current operating cost standards to

support the units selected for capital advances sufficient for minimum

5-year project rental assistance contracts.

The allocation formula for Section 202 funds consists of a measure

of the number of one-and two-person elderly renter households with

incomes at or below the very low income limit (50 percent of area

median family income, as determined by HUD, with an adjustment for

household size) that have housing deficiencies based on data from the

1990 Census.

Since the allocations to some HUD offices are not sufficient to

develop feasible projects in both metropolitan and nonmetropolitan

areas, the funds may be allocated to only one of the geographical

areas.

The capital advance amount available to the Wisconsin State HUD

Office, as stated below in this NOFA, may be reduced or eliminated due

to ongoing legal proceedings between HUD and the City of Milwaukee. The

determination of whether to reduce or eliminate those funds is entirely

within the discretion of HUD. If HUD takes such action or actions, it

will publish a notice to that effect in the Federal Register.

As a result of a rating error in the Massachusetts State Office,

the application of the Rural Housing Improvements was not selected and

funded under the Fiscal Year 1996 Supportive Housing for the Elderly

Program. Since this was a HUD error, that application will be funded

from the Fiscal Year 1997 allocation to the Massachusetts State Office.

Based on the allocation formula, HUD has allocated the available

capital advance funds as shown on the following chart:

Fiscal Year 1997 Allocations for Supportive Housing for the Elderly--Fiscal Year 1997 Section 202 Allocations

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Metropolitan capital Nonmetropolitan Totals Capital

advance capital advance advance

Offices -----------------------------------------------------------------------

Authority Units Authority Units Authority Units

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New England:

Massachusetts *..................... $13,224,738 163 $1,452,400 18 $14,677,138 181

Connecticut......................... 5,330,691 66 2,028,960 25 7,359,651 91

New Hampshire....................... 2,901,442 45 2,113,447 32 5,014,889 77

Rhode Island........................ 4,535,046 56 0 0 4,535,046 56

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Total............................. 25,991,917 330 5,594,807 75 31,586,724 405

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New York/New Jersey:

New York............................ 38,524,740 475 723,054 9 39,247,794 484

Buffalo............................. 9,966,925 132 1,911,935 25 11,878,860 157

New Jersey.......................... 16,004,754 197 0 0 16,004,754 197

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Total............................. 64,496,419 804 2,634,989 34 67,131,408 838

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Mid-Atlantic:

Maryland............................ 4,992,253 72 680,858 10 5,673,111 82

West Virginia....................... 1,285,008 20 1,048,721 16 2,333,729 36

Pennsylvania........................ 12,788,228 166 1,555,444 20 14,343,672 186

Pittsburgh.......................... 5,773,367 85 1,178,624 17 6,951,991 102

Virginia............................ 3,949,284 68 1,319,703 23 5,268,987 91

D.C................................. 5,258,701 73 0 0 5,258,701 73

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Total............................. 34,046,841 484 5,783,350 86 39,830,191 570

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Southeast/Caribbean:

Georgia............................. 4,548,592 77 2,015,141 34 6,563,733 111

Alabama............................. 3,359,260 59 1,380,968 24 4,740,228 83

Caribbean........................... 3,320,946 41 1,138,410 14 4,459,356 55

South Carolina...................... 2,989,534 48 1,088,659 17 4,078,193 65

North Carolina...................... 5,889,849 80 2,695,611 36 8,585,460 116

Mississippi......................... 1,088,875 20 1,572,105 29 2,660,980 49

Jacksonville........................ 14,503,828 232 911,639 15 15,415,467 247

Kentucky............................ 3,135,284 50 1,662,350 27 4,797,634 77

[[Page 28764]]

Knoxville........................... 2,098,457 38 626,016 11 2,724,473 49

Tennessee........................... 2,828,198 50 1,226,999 22 4,055,197 72

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Total............................. 43,762,823 695 14,317,898 229 58,080,721 924

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Midwest:

Illinois............................ 17,560,581 216 2,572,490 32 20,133,071 248

Cincinnati.......................... 4,060,883 65 312,798 5 4,373,681 70

Cleveland........................... 7,530,815 107 996,071 14 8,526,886 121

Ohio................................ 2,871,557 46 1,249,596 20 4,121,153 66

Michigan............................ 8,111,211 113 358,450 5 8,469,661 118

Grand Rapids........................ 2,758,296 45 1,086,645 18 3,844,941 63

Indiana............................. 5,257,918 81 1,468,433 23 6,726,351 104

Wisconsin........................... 6,059,408 85 2,117,599 30 8,177,007 115

Minnesota........................... 6,010,579 80 1,665,724 22 7,676,303 102

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Total............................. 60,221,248 838 11,827,806 169 72,049,054 1,007

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Southwest:

Texas/New Mexico.................... 5,861,192 101 1,765,910 30 7,627,102 131

Houston............................. 3,787,923 65 685,013 12 4,472,936 77

Arkansas............................ 1,882,145 37 1,346,577 26 3,228,722 63

Louisiana........................... 3,708,951 66 893,565 16 4,602,516 82

Oklahoma............................ 2,450,407 44 1,155,160 21 3,605,567 65

San Antonio......................... 3,727,875 69 0 0 3,727,875 69

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Total............................. 21,418,493 382 5,846,225 105 27,264,718 487

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Great Plains:

Iowa................................ 2,356,158 40 1,487,426 25 3,843,584 65

Kansas/Missouri..................... 3,818,889 63 1,590,400 27 5,409,289 90

Nebraska............................ 1,445,634 25 570,579 10 2,016,213 35

St. Louis........................... 4,210,350 60 1,381,817 20 5,592,167 80

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Total............................. 11,831,031 188 5,030,222 82 16,861,253 270

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Rocky Mountains: Colorado............... 5,236,189 81 2,274,376 38 7,510,565 119

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Total............................. 5,236,189 81 2,274,376 38 7,510,565 119

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Pacific/Hawaii:

Hawaii (Guam)....................... 2,434,752 20 608,688 5 3,043,440 25

Los Angeles......................... 27,990,373 351 399,029 5 28,389,402 356

Arizona............................. 3,499,778 61 553,762 10 4,053,540 71

Sacramento.......................... 4,766,253 60 829,814 10 5,596,067 70

California.......................... 15,624,582 196 940,675 12 16,565,257 208

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Total............................. 54,315,738 688 3,331,968 42 57,647,706 730

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Northwest/Alaska:

Alaska.............................. 2,434,752 20 608,688 5 3,043,440 25

Oregon.............................. 4,152,210 60 1,558,795 23 5,711,005 83

Washington.......................... 5,909,649 80 1,195,392 16 7,105,041 96

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Total............................. 12,496,611 160 3,362,875 44 15,859,486 204

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National Total.................... 333,817,310 4,650 60,004,516 904 393,821,826 5,554

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* This amount includes Capital Advance Authority of $2,120,900 to fund Rural Housing Improvements, Bolton,

Massachusetts. Since this 28-unit project was not selected in Fiscal Year 1996 by HUD error, this application

will be funded from the Fiscal Year 1997 allocation to the Massachusetts State HUD Office.

D. Eligibility

Private nonprofit organizations and nonprofit consumer cooperatives

are the only eligible applicants under this program. Neither a public

body nor an instrumentality of a public body is eligible to participate

in the program. No organization shall participate as Sponsor or Co-

sponsor in the filing of application(s) for a capital advance in a

single geographical region in this fiscal year in excess of that

necessary to finance the construction, rehabilitation, or acquisition

(acquisition permitted only with FDIC/RTC properties) of 200

[[Page 28765]]

units of housing and related facilities for the elderly. This limit

shall apply to organizations that participate as Co-sponsors regardless

of whether the Co-sponsors are affiliated or nonaffiliated entities. In

addition, the national limit for any one applicant is 10 percent of the

total units allocated in all HUD offices. Affiliated entities that

submit separate applications shall be deemed to be a single entity for

the purposes of these limits. No single application may propose more

than the number of units allocated to a HUD office or 125 units,

whichever is less. Reservations for projects will not be approved for

less than 5 units.

E. Initial Screening, Technical Processing, and Selection Criteria

1. Initial Screening

HUD will review applications for Section 202 capital advances that

are received by HUD at the appropriate address by 4 p.m. local time on

July 28, 1997, to determine if all parts of the application are

included. HUD will not review the content of the application as part of

initial screening. HUD will send deficiency letters by certified mail,

informing Sponsors of any missing parts of the application. Sponsors

must correct such deficiencies within 8 calendar days from the date of

the deficiency letter. Any document requested as a result of the

initial screening may be executed or prepared within the deficiency

period, except for Forms HUD-92015-CAs, Articles of Incorporation, IRS

exemption rulings, Forms SF-424, Board Resolution committing the

minimum capital investment, and site control documents (all of these

excepted items must be dated no later than the application deadline

date).

2. Technical Processing

All applications will be placed in technical processing upon

receipt of the response to the deficiency letter or at the end of the

8-day period. These applications will undergo a complete analysis based

upon the information submitted in the application, including that

submitted in response to the deficiency letter. If a reviewer finds

that clarification of information submitted in the application is

needed to complete the review, or an exhibit is missing that was not

requested after initial screening, the reviewer shall immediately

advise the Multifamily Housing Representative, who will: (a) request,

by telephone, that the Sponsor submit the information within 5 working

days; and (b) follow up by certified letter. As part of this analysis,

HUD will conduct its environmental review in accordance with 24 CFR

part 50.

Technical processing will also assure that the Sponsor has complied

with the requirements in the civil rights certification in the

Application Package. There must not have been an adjudication of a

civil rights violation in a civil action brought against the Sponsor,

unless the Sponsor is operating in compliance with a court order, or

implementing a HUD-approved compliance agreement designed to correct

the areas of noncompliance. There must be no pending civil rights suits

against the Sponsor instituted by the Department of Justice, and no

pending administrative actions for civil rights violations instituted

by HUD (including a charge of discrimination under the Fair Housing

Act). There must be no outstanding findings of noncompliance with civil

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

formal administrative proceedings, nor any charges issued by the

Secretary against the Sponsor under the Fair Housing Act, unless the

Sponsor is operating under a conciliation or compliance agreement

designed to correct the areas of noncompliance. Moreover, there must

not be a deferral of the processing of applications from the Sponsor

imposed by HUD under title VI of the Civil Rights Act of 1964, HUD's

implementing regulations (24 CFR 1.8), procedures (HUD Handbook

8040.1), and the Attorney General's Guidelines (28 CFR 50.3); or under

section 504 of the Rehabilitation Act of 1973 and HUD's implementing

regulations (24 CFR 8.57), and the Americans with Disabilities Act.

Examples of reasons for technical processing rejection include an

ineligible Sponsor or population to be served, project will have

adverse impact on existing HUD-insured or assisted housing, lack of

legal capacity, lack of site control, outstanding or pending civil

rights findings/violations, insufficient need, and unacceptable site

based upon a site visit. The Secretary will not reject an application

based on technical processing without giving notice of that rejection

with all rejection reasons, and affording the applicant an opportunity

to appeal. HUD will afford an applicant 10 calendar days from the date

of HUD's written notice to appeal a technical rejection to the HUD

office. The HUD office must respond within 5 working days to the

Sponsor. The HUD office shall make a determination on an appeal prior

to making its selection recommendations. All applications will be

either rated or technically rejected at the end of technical

processing.

Upon completion of technical processing, all acceptable

applications will be rated according to the selection criteria in

section I.E.3. of this NOFA, below. Applications submitted in response

to the advertised metropolitan allocations or nonmetropolitan

allocations that have a total base score (without the addition of bonus

points) of 60 points or more will be eligible for selection, and HUD

will place them in rank order per metropolitan or nonmetropolitan

allocation. After adding any bonus points, HUD will select these

applications based on rank order, up to and including the last

application that can be funded out of each of the local HUD office's

metropolitan or nonmetropolitan allocations. HUD offices shall not skip

over any applications in order to select one based on the funds

remaining. However, after making the initial selections in each

allocation area, any residual funds may be used to fund the next rank-

ordered application by reducing the number of units by no more than 10

percent rounded to the nearest whole number, provided the reduction

will not render the project infeasible. For this purpose, however, HUD

will not reduce the number of units in projects of nine units or less.

Once this process has been completed, HUD offices may combine their

unused metropolitan and nonmetropolitan funds in order to select the

next ranked application in either category, using the unit reduction

policy described above, if necessary.

Funds remaining after these processes are completed will be

returned to Headquarters. These funds will be used first to restore

units to projects reduced by HUD offices as a result of the

instructions above and, second, for selecting applications on a

national rank order. No more than one application will be selected per

HUD office from the national residual amount, however, unless there are

insufficient approvable applications in other HUD offices. If funds

still remain, additional applications will be selected based on a

national rank order, insuring an equitable distribution among HUD

offices.

3. Selection Criteria (Base Points)

HUD will rate applications for Section 202 capital advances that

successfully complete technical processing using the selection criteria

set forth below, and the guidelines set forth in Appendix A to this

NOFA:

(a) The Sponsor's ability to develop and operate the proposed

housing on a long-term basis, considering the following (52 points

maximum):

[[Page 28766]]

(1) The scope, extent, and quality of the Sponsor's experience in

providing housing or related services to those proposed to be served by

the project, and the scope of the proposed project (i.e., number of

units, services, relocation costs, development, and operation) in

relationship to the Sponsor's demonstrated development and management

capacity, as well as its financial management capability (30 points);

(2) The scope, extent, and quality of the Sponsor's experience in

providing housing or related services to minority persons or families

(10 points). For purposes of this NOFA, ``minority'' means the basic

racial and ethnic categories for Federal statistics and administrative

reporting, as defined in OMB's Statistical and Policy Directive No. 15.

(See 60 FR 44673, 44692; August 28, 1995.);

(3) The extent of local government support for the project (5

points);

(4) The extent of the Sponsor's activities in the community,

including previous experience in serving the area where the project is

to be located, and the Sponsor's demonstrated ability to enlist

volunteers and raise local funds (7 points).

(b) The need for supportive housing for the elderly in the area to

be served and the suitability of the site, considering the following

(28 points maximum):

(1) The extent of the need for the project in the area based on a

determination by the HUD office. HUD will make this determination by

considering the Sponsor's evidence of need in the area, as well as

other economic, demographic, and housing market data available to the

HUD office. The data could include the availability of existing

Federally assisted housing (HUD and RHS) (e.g., considering

availability and vacancy rates of public housing) for the elderly and

current occupancy in such facilities; Federally assisted housing for

the elderly under construction or for which fund reservations have been

issued; and in accordance with an agreement between HUD and the RHS,

comments from the RHS on the demand for additional assisted housing and

the possible harm to existing projects in the same housing market area

(8 points);

(2) The proximity or accessibility of the site to shopping, medical

facilities, transportation, places of worship, recreational facilities,

places of employment, and other necessary services to the intended

occupants; adequacy of utilities and streets; freedom of the site from

adverse environmental conditions; compliance with site and neighborhood

standards (10 points); and

(3) Suitability of the site from the standpoints of promoting a

greater choice of housing opportunities for minority elderly persons/

families, and affirmatively furthering fair housing (10 points).

(c) Adequacy of the provision of supportive services and of the

proposed facility, considering the following (20 points maximum):

(1) The extent to which the proposed design will meet the special

physical needs of elderly persons (3 points);

(2) The extent to which the proposed size and unit mix of the

housing will enable the Sponsor to manage and operate the housing

efficiently and ensure that the provision of supportive services will

be accomplished in an economical fashion (4 points);

(3) The extent to which the proposed design of the housing will

accommodate the provision of supportive services that are expected to

be needed, initially and over the useful life of the housing, by the

category or categories of elderly persons the housing is intended to

serve (3 points);

(4) The extent to which the proposed supportive services meet the

identified needs of the residents (5 points); and

(5) The extent to which the Sponsor demonstrated that the

identified supportive services will be provided on a consistent, long-

term basis (5 points).

The maximum number of points an application can earn without bonus

points is 100. An application can earn an additional 10 bonus points,

as described immediately below, for a maximum total of 110 points.

4. Bonus Points

(a) The Sponsor's involvement of elderly persons, particularly

minority elderly persons, in the development of the application, and

its intent to involve elderly persons, particularly minority elderly

persons, in the development of the project (5 bonus points);

(b) The project will be located within the boundaries of a

Federally designated Empowerment Zone, Urban Supplemental Empowerment

Zone, Enterprise Community, or an Urban Enhanced Enterprise Community

(5 bonus points).

II. Application Process

All applications for Section 202 capital advances submitted by

eligible Sponsors must be filed with the appropriate HUD office

receiving an allocation and must meet the requirements of this NOFA.

HUD will not accept any application after 4 p.m. local time on July 28,

1997, unless that date and time is extended by a notice published in

the Federal Register. HUD will not accept applications received after

the deadline date and time, even if postmarked by the deadline date.

Applications submitted by facsimile are not acceptable.

Immediately upon publication of this NOFA, if HUD offices have not

already provided names to the Multifamily Housing Clearinghouse, the

offices shall notify elderly and minority media, all persons and

organizations on their mailing lists, minority and other organizations

within their jurisdiction involved in housing and community

development, and groups with special interest in housing for elderly

households.

Organizations interested in applying for a Section 202 capital

advance should contact the Multifamily Housing Clearinghouse at 1-800-

685-8470 (the TTY number is 1-800-483-2209) for a copy of the

application package, and advise the HUD office whether they wish to

attend the workshop described below. HUD encourages minority

organizations to participate in this program as Sponsors. HUD offices

will advise all organizations on their mailing list of the date, time,

and place of workshops at which HUD will explain the Section 202

program.

HUD strongly recommends that prospective applicants attend the

local HUD office workshop. Interested persons with disabilities should

contact the HUD office to assure that any necessary arrangements can be

made to enable their attendance and participation in the workshop. At

the workshops, HUD will explain application procedures and

requirements. HUD will also address concerns such as local market

conditions, building codes, historic preservation, floodplain

management, displacement and relocation, zoning, and housing costs.

While strongly urged to do so, if Sponsors cannot attend a

workshop, they can obtain Application Packages from the Multifamily

Housing Clearinghouse (see address and telephone number in the

``Application Package'' section of this NOFA, above). However, Sponsors

who cannot attend the workshops are strongly encouraged to contact the

appropriate HUD office with any questions regarding the submission of

applications to that particular office and to request any materials

handed out at the workshop.

[[Page 28767]]

III. Application Submission Requirements

A. Application

Each application must include all of the information, materials,

forms, and exhibits listed in section III.B., below (with the exception

of applications submitted by Sponsors selected for a Section 202 fund

reservation within the last three funding cycles), and must be indexed

and tabbed. Such previously selected Section 202 Sponsors are not

required to submit the information described in sections B.2. (a), (b),

and (c) of this NOFA, below (Exhibits 2. a., b., and c. of the

application), which are the articles of incorporation, (or other

organizational documents), by-laws, and the IRS tax exemption,

respectively. If there has been a change in any of the eligibility

documents since its previous HUD approval, the Sponsor must submit the

updated information in its application. The local HUD office will base

its determination of the eligibility of a new Sponsor for a reservation

of Section 202 capital advance funds on the information provided in the

application. HUD offices will verify a Sponsor's indication of previous

HUD approval by checking the project number and approval status with

the appropriate HUD office.

In addition to this relief of paperwork burden in preparing

applications, applicants will be able to submit information and

exhibits they have previously prepared for prior applications under

Section 202, Section 811, or other funding programs. Examples of

exhibits that may be readily adapted or amended to decrease the burden

of application preparation include, among others, those on previous

participation in the Section 202 or Section 811 programs, applicant

experience in provision of housing and services, supportive services

plan, community ties, and experience serving minorities.

B. General Application Requirements

1. Form HUD-92015-CA, Application for Section 202 Supportive

Housing Capital Advance.

2. Evidence of each Sponsor's legal status as a private nonprofit

organization or nonprofit consumer cooperative, including the

following:

(a) Articles of Incorporation, constitution, or other

organizational documents;

(b) By-laws;

(c) IRS tax exemption ruling (this must be submitted by all

Sponsors, including churches). A consumer cooperative that is tax

exempt under State law, has never been liable for payment of Federal

income taxes, and does not pay patronage dividends may be exempt from

the requirement set out in the previous sentence if it is not eligible

for tax exemption.

Note: Sponsors who have received a section 202 fund reservation

within the last three funding cycles are not required to submit the

documents described in (a), (b), and (c), above. Instead, Sponsors

Must Submit the project number of the latest application and the HUD

office to which it was submitted. If there have been any

modifications or additions to the subject documents, indicate such,

and submit the new material.

(d) Resolution of the board, duly certified by an officer, that no

officer or director of the Sponsor or Owner has or will have any

financial interest in any contract with the Owner or in any firm or

corporation that has or will have a contract with the Owner, including

a current listing of all duly qualified and sitting officers and

directors by title, and the beginning and ending dates of each person's

term.

3. Sponsor's purpose, community ties, and experience, including the

following:

(a) A description of Sponsor's purposes and activities, ties to the

community (including the minority community), local government support

(including financial support and services), how long the Sponsor has

been in existence, and any additional related information;

(b) A description of Sponsor's housing and/or supportive services

experience. The description should include any rental housing projects

and/or supportive services facilities sponsored, owned, and operated by

the Sponsor; the Sponsor's past or current involvement in any programs

other than housing that demonstrates the Sponsor's management

capabilities (including financial management) and experience; the

Sponsor's experience in serving the elderly, including elderly persons

with disabilities, and/or families and minorities; and the reasons for

receiving any increases in fund reservations for developing and/or

operating previously funded projects;

(c) A description of Sponsor's participation in joint ventures and

experience in contracting with minority-owned businesses, women-owned

businesses, and small businesses over the last 3 years, including a

description of the joint venture, partners and the Sponsor's

involvement, and a summary of the total contract amounts awarded in

each of the 3 categories for the preceding 3 years, and the percentage

that amount represents of all contracts awarded by the Sponsor in the

relevant time period;

(d) A certified Board Resolution, acknowledging the

responsibilities of sponsorship, long-term support of the project(s),

willingness of Sponsor to assist the Owner to develop, own, manage, and

provide appropriate services in connection with the proposed project,

and that it reflects the will of its membership. Also, evidence, in the

form of a certified Board Resolution, of the Sponsor's willingness to

fund the estimated start-up expenses, the Minimum Capital Investment

(one-half of 1 percent of the HUD-approved capital advance, not to

exceed $10,000, if nonaffiliated with a National Sponsor; one-half of 1

percent of the HUD-approved capital advance, not to exceed $25,000, for

all other Sponsors), and the estimated cost of any amenities or

features (and operating costs related thereto) that would not be

covered by the approved capital advance;

(e) Description, if applicable, of the Sponsor's efforts to involve

elderly persons, including minority elderly persons, in the development

of the application, as well as its intent to involve elderly persons in

the development of the project.

4. Project information, including the following:

(a) Evidence of need for supportive housing. Such evidence would

include a description of the category or categories of elderly persons

the housing is intended to serve and evidence demonstrating sustained

effective demand for supportive housing for that population in the

market area to be served, taking into consideration the occupancy and

vacancy conditions in existing Federally assisted housing for the

elderly (HUD and RHS; e.g., public housing); State or local data on the

limitations in activities of daily living among the elderly in the

area; aging in place in existing assisted rentals; trends in

demographic changes in elderly population and households; the numbers

of income eligible elderly households by size, tenure, and housing

condition; the types of supportive services arrangements currently

available in the area; and the use of such services as evidenced by

data from local social service agencies or agencies on aging.

(b) Description of the project, including the following:

(1) Narrative description of the building design, including a

description of any special design features and community space, and how

this design will facilitate the delivery of services in an economical

fashion and accommodate the changing needs of the residents over the

next 10-20 years;

[[Page 28768]]

(2) Description of whether and how the project will promote energy

efficiency, and, if applicable, innovative construction or

rehabilitation methods or technologies to be used that will promote

efficient construction.

(c) Evidence of site control and permissive zoning, including the

following:

(1) Evidence that the Sponsor has entered into a legally binding

option agreement (which extends through the end of the current fiscal

year and contains a renewal provision so that the option can be renewed

for at least an additional 6 months) to buy or lease the proposed site;

or has a copy of the contract of sale for the site, a deed, long-term

leasehold, a request with all supporting documentation, submitted

either prior to or with the Application for Capital Advance, for a

partial release of a site covered by a mortgage under a HUD program, or

other evidence of legal ownership of the site (including properties to

be acquired from the FDIC/RTC). The Sponsor must also identify any

restrictive covenants, including reverter clauses. In the case of a

site to be acquired from a public body, evidence that the public body

possesses clear title to the site, and has entered into a legally

binding agreement to lease or convey the site to the Sponsor after it

receives and accepts a notice of Section 202 capital advance and

identification of any restrictive covenants, including reverter

clauses. However, in localities where HUD determines the time

constraints of the funding round will not permit all of the required

official actions (e.g., approval of Community Planning Boards) that are

necessary to convey publicly-owned sites, a letter in the application

from the mayor or director of the appropriate local agency indicating

approval of conveyance of the site contingent upon the necessary

approval action is acceptable and may be approved by the HUD office if

it has satisfactory experience with timely conveyance of sites from

that public body. In such cases, documentation must also include a copy

of the public body's evidence of ownership and identification of any

restrictive covenants, including reverter clauses;

Note: A proposed project site may not be acquired or optioned

from a general contractor (or its affiliate) that will construct the

section 202 project or from any other development team member.

(2) Evidence that the project as proposed is permissible under

applicable zoning ordinances or regulations, or a statement of the

proposed action required to make the proposed project permissible and

the basis for belief that the proposed action will be completed

successfully before the submission of the firm commitment application

(e.g., a summary of the results of any requests for rezoning on land in

similar zoning classifications and the time required for such rezoning,

or preliminary indications of acceptability from zoning bodies);

(3) A narrative topographical and demographic description of the

suitability of the site and area, and how the site will promote greater

housing opportunities for minority elderly and elderly persons with

disabilities, thereby affirmatively furthering fair housing;

(4) A map showing the location of the site and the racial

composition of the neighborhood, with the area of racial concentration

delineated;

(5) A Phase I Environmental Site Assessment, in accordance with the

American Society for Testing and Material (ASTM) Standards E 1527-93,

as amended. Since the Phase I study must be completed and submitted

with the application, it is important that the Sponsor start the site

assessment process as soon after publication of the NOFA as possible.

If the Phase I study indicates the possible presence of

contamination and/or hazards, the Sponsor must decide whether to

continue with this site or choose another site. Should the Sponsor

choose another site, the same environmental site assessment procedure

identified above must be followed for that site.

Note: For properties to be acquired from the FDIC/RTC, include a

copy of the FDIC/RTC prepared Transaction Screen Checklist or Phase

I Environmental Site Assessment, and applicable documentation, per

the FDIC/RTC Environmental Guidelines.

If the Sponsor chooses to continue with the original site on which

the Phase I study indicated contamination or hazards, then it must

undertake a detailed Phase II Environmental Site Assessment by an

appropriate professional. If the Phase II Assessment reveals site

contamination, the extent of the contamination and a plan for clean-up

of the site must be submitted to the local HUD office. The plan for

clean-up must include a contract for remediation of the problem(s) and

an approval letter from the applicable Federal, State, and/or local

agency with jurisdiction over the site. In order for the application to

be considered for review under this FY 1997 funding competition, this

information would have to be submitted to the local HUD office no later

than August 25, 1997.

Note: This could be an expensive undertaking. The Cost of any

clean-up and/or remediation must be borne by the sponsor.

(6) A letter from the State Historic Preservation Officer

indicating whether the proposed site has any historical significance.

(d) Provision of supportive services and proposed facility:

(1) A detailed description of the supportive services proposed to

be provided to the anticipated occupancy;

(2) A description of public or private sources of assistance that

reasonably could be expected to fund the proposed services;

(3) The manner in which such services will be provided to such

persons (i.e., on or off-site), including whether a service coordinator

will facilitate the adequate provision of such services, and how the

services will meet the identified needs of the residents.

Note: Disability related supportive services cannot be a

condition for tenancy.

5. A list of the applications, if any, the Sponsor has submitted or

is planning to submit to any other HUD office in response to this NOFA

or the NOFA for Section 811 Program of Supportive Housing for Persons

with Disabilities (published elsewhere in today's Federal Register).

Indicate by HUD office, the proposed location by city and State, and

the number of units requested for each application. Include a list of

all FY 1996 and prior year projects to which the Sponsor(s) is a party

that have not been finally closed. Such projects must be identified by

project number and HUD office.

6. HUD-2880, Applicant/Recipient Disclosure/Update Report,

including Social Security Numbers and Employer Identification Numbers.

7. Executive Order 12372 certification. A certification that the

Sponsor has submitted a copy of its applications, if required, to the

State agency (single point of contact) for State review in accordance

with E.O. 12372.

8. A statement that (a) identifies all persons (families,

individuals, businesses, and nonprofit organizations), identified by

race/minority group, and status as owners or tenants, occupying the

property on the date of submission of the application for a capital

advance; (b) indicates the estimated cost of relocation payments and

other services; (c) identifies the staff organization that will carry

out the relocation activities; and (d) identifies all persons that have

moved from the site within the past 12 months.

Note: If any of the relocation costs will be funded from sources

other than the Section 202 capital advance, the (sponsor must

[[Page 28769]]

provide evidence of a firm commitment of these funds. When

evaluating applications, HUD will consider the total cost of

proposals (i.e., cost of site acquisition, relocation, construction,

and other project costs).

9. SF-424. A certification on SF-424, Application for Federal

Assistance, that the Sponsor(s) is not delinquent on the repayment of

any Federal debt.

10. A certification regarding Lobbying that complies with 24 CFR

part 87 must be submitted by the Sponsor. If the Sponsor has made or

has agreed to make any payment using nonappropriated funds for lobbying

activity, as described in 24 CFR part 87, the submission must also

include SF-LLL, Disclosure of Lobbying Activities.

11. Certification of Consistency with the Consolidated Plan (Plan)

for the jurisdiction in which the proposed project will be located must

be submitted by the Sponsor. The certification must be made by the unit

of general local government if it is required to have, or has, a

complete Plan. Otherwise the certification may be made by the State, or

by the unit of general local government if the project will be located

within the jurisdiction of the unit of general local government

authorized to use an abbreviated strategy, and if the unit of general

local government is willing to prepare such a Plan.

All certifications must be made by the public official responsible

for submitting the Plan to HUD. The certifications must be submitted as

part of the application by the application submission deadline set

forth in this NOFA. The Consolidated Plan regulations are published in

24 CFR part 91.

12. Sponsor Certifications. (a) A certification that the Sponsor

will comply with section 504 of the Rehabilitation Act of 1973 (29

U.S.C. 794) and the implementing regulations in 24 CFR part 8; the Fair

Housing Act (42 U.S.C. 3600-3619) and the implementing regulations in

24 CFR parts 100, 108, and 110; title VI of the Civil Rights Act of

1964 (42 U.S.C. 2000d) and the implementing regulations in 24 CFR part

1; section 3 of the Housing and Urban Development Act of 1968 (12

U.S.C. 1701u) and the implementing regulations in 24 CFR part 135; the

Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and the

implementing regulations in 24 CFR part 146; Executive Order 11246 (as

amended) and the implementing regulations in 41 CFR Chapter 60; the

regulations implementing Executive Order 11063 (Equal Opportunity in

Housing) in 24 CFR part 107; the Americans with Disabilities Act (42

U.S.C. 12101 et seq.) to the extent applicable; the affirmative fair

housing marketing requirements of 24 CFR part 200, subpart M and the

regulations in 24 CFR part 108; and other applicable Federal, State,

and local laws prohibiting discrimination and promoting equal

opportunity.

(b) A certification that the Sponsor(s) will comply with the

requirements of the Drug-Free Workplace Act.

(c) A certification that the project will comply with HUD's project

design and cost standards; the Uniform Federal Accessibility Standards

and HUD's implementing regulations at 24 CFR part 40; section 504 of

the Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's implementing

regulations at 24 CFR part 8; and for covered multifamily dwellings

designed and constructed for first occupancy after March 13, 1991, the

design and construction requirements of the Fair Housing Act and HUD's

implementing regulations at 24 CFR part 100; and the Americans with

Disabilities Act of 1990.

(d) A certification by the Sponsor(s) that it will comply (or has

complied) with the acquisition and relocation requirements of the

Uniform Relocation Assistance and Real Property Acquisition Policies

Act of 1970, as amended (URA), implemented by regulations in 49 CFR

part 24, and 24 CFR 891.155(e).

(e) A certification by the Sponsor(s) that it will: (i) form an

``Owner'' (as defined in 24 CFR 891.205) after the issuance of the

capital advance; (ii) cause the Owner to file a request for

determination of eligibility and a request for capital advance; and

(iii) provide sufficient resources to the Owner to insure the

development and long-term operation of the project, including

capitalizing the Owner at firm commitment processing in an amount

sufficient to meet its obligations in connection with the project.

IV. Development Cost Limits

A. The following development cost limits, adjusted by locality as

described in section IV.B. of this NOFA, below, shall be used to

determine the capital advance amount to be reserved for projects for

the elderly:

(1) The total development cost of the property or project

attributable to dwelling use (less the incremental development cost and

the capitalized operating costs associated with any excess amenities

and design features to be paid for by the Sponsor) may not exceed:

Nonelevator structures:

$28,032 per family unit without a bedroom;

$32,321 per family unit with one bedroom;

$38,979 per family unit with two bedrooms;

For elevator structures:

$29,500 per family unit without a bedroom;

$33,816 per family unit with one bedroom;

$41,120 per family unit with two bedrooms.

(2) These cost limits reflect those costs reasonable and necessary

to develop a project of modest design that complies with HUD minimum

property standards; the accessibility requirements of Sec. 891.120(b);

and the project design and cost standards of Sec. 891.120.

B. Increased development cost limits. (1) HUD may increase the

development cost limits set forth in section IV.A.(1) of this NOFA,

above, by up to 140 percent in any geographic area where the cost

levels require, and may increase the development cost limits by up to

160 percent on a project-by-project basis.

(2) If HUD finds that high construction costs in Alaska, Guam, the

Virgin Islands, or Hawaii make it infeasible to construct dwellings,

without the sacrifice of sound standards of construction, design, and

livability, within the development cost limits provided in section

IV.A. of this NOFA, above, the amount of the capital advances may be

increased to compensate for such costs. The increase may not exceed the

limits established under this section (including any high cost area

adjustment) by more than 50 percent.

V. Findings and Certifications

A. Paperwork Reduction Act Statement

The information collection requirements contained in this NOFA have

been approved by the Office of Management and Budget (OMB) in

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

3520), and assigned OMB control number 2502-0267. 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.

B. Environmental Impact

This NOFA provides funding under, and does not alter the

environmental provisions of, regulations in 24 CFR part 891, which were

published in the Federal Register on March 22, 1996 (61 FR 11956).

Accordingly, under 24 CFR 50.19(c)(5), as published in the Federal

Register on September 27, 1996 (61 FR

[[Page 28770]]

50914, 50919), this NOFA is categorically excluded from environmental

review under the National Environmental Policy Act of 1969 (42 U.S.C.

4321). The environmental review provisions of the Section 202 program

regulations are in 24 CFR 891.155(b).

C. Federalism Executive Order

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

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

does not have substantial direct effects on States or their political

subdivisions, or on the relationship between the Federal Government and

the States, or on the distribution of power and responsibilities among

the various levels of government. This NOFA merely notifies the public

of the availability of capital advances and project rental assistance

for supportive housing for the elderly. As a result, this NOFA is not

subject to review under the Order.

D. Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and the

regulations codified in 24 CFR part 4, subpart A, 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 (57 FR 1942), HUD published a notice that

also provides information on the implementation of section 102. The

documentation, public access, and disclosure requirements of section

102 apply 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 5-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 5 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 3 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.

E. Prohibition Against Advance Information on Funding Decisions

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

prohibited 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 Ethics Law Division at (202) 708-3815 (this is not a

toll-free number). To access this number by TTY, dial 1-800-877-8339.

HUD employees who have specific program questions, such as whether

particular subject matter can be discussed with persons outside HUD,

should contact the appropriate Field Office Counsel, or Headquarters

counsel for the program to which the question pertains.

F. Prohibition Against Lobbying Activities

Applicants for funding under this NOFA are subject to the

provisions of section 319 of the Department of Interior and Related

Agencies Appropriation Act for Fiscal Year 1991 (31 U.S.C. 1352) (the

Byrd Amendment) and to the provisions of the Lobbying Disclosure Act of

1995 (Pub. L. 104-65; approved December 19, 1995).

The Byrd Amendment, which is implemented in regulations at 24 CFR

part 87, prohibits applicants of Federal contracts and grants from

using appropriated funds to attempt to influence Federal executive or

legislative officers or employees in connection with obtaining such

assistance, or with its extension, continuation, renewal, amendment, or

modification. The Byrd Amendment applies to the funds that are the

subject of this NOFA. Therefore, applicants must file a certification

stating that they have not made and will not make any prohibited

payments, and if applicants have made any payments or agreement to make

payments of nonappropriated funds for these purposes, they must submit

a form SF-LLL disclosing such payments. The certification and the SF-

LLL are included in the Application Package.

The Lobbying Disclosure Act of 1995, P.L. 104-65 (December 19,

1995), which repealed Section 112 of the HUD Reform Act and resulted in

the elimination of the regulations at 24 CFR Part 86, requires all

persons and entities who lobby covered Executive or Legislative Branch

officials to register with the Secretary of the Senate and the Clerk of

the House of Representatives and file reports concerning their lobbying

activities.

H. Catalog of Federal Domestic Assistance Program

The Catalog of Federal Domestic Assistance Program title and number

is 14.157, Housing for the Elderly or Handicapped.

Authority: Section 202, Housing Act of 1959, as amended (12

U.S.C. 1701q); Section 7(d), Department of Housing and Urban

Development Act (42 U.S.C. 3535(d)).

Dated: May 7, 1997.

Nicolas P. Retsinas,

Assistant Secretary for Housing--Federal Housing Commissioner.

Appendix A--Guidelines for Rating Section 202 Applications FY 1997

Supportive Housing for the Elderly

Directions: In applications proposing a Co-Sponsor, the Sponsor

and Co-Sponsor are to be evaluated and scored separately. The higher

score shall be awarded to the application.

The full range of numerical ratings should be used.

1. In determining the Sponsor's ability to develop and operate

the proposed housing on a long-term basis, consider: 52 points

maximum.

(MHR) (a) & AM avg'd)--The scope, extent and quality of the

Sponsor's experience in providing housing OR related services to

those proposed to be served by the project and the scope of the

proposed project (i.e., number of units, services, relocation costs,

development, and operation) in relationship to the Sponsor's

demonstrated development and management capacity and financial

management capability (30 points maximum).

[[Page 28771]]

25-30 Points--Sponsor must have developed and operated at least one

housing project comparable in scope to the project being applied for

or provided related supportive services for at least five years for

the proposed population and, demonstrated a consistent performance

in timely development, effective marketing, and efficient management

of housing and/or service delivery. Also, the Sponsor must not have

received any unreasonable increases in fund reservations for

developing and/or operating previously funded projects.

12-24 Points--Sponsor has at least three years experience in

providing housing and/or supportive services for the proposed

population and has demonstrated consistent performance in timely

development, effective marketing, and efficient management of

housing and/or service delivery.

1-11 Points--Sponsor has less than three years experience in

providing either housing or supportive services for the proposed

population, or, has not performed consistently in the development,

marketing, and management of housing and/or service delivery.

(FHEO) (b)--The scope, extent and quality of the Sponsor's

experience in providing housing or related services to minority

persons or families (10 points maximum).

10 points--Sponsor has significant previous experience in housing/

serving minorities (i.e., previous housing assistance/related

service to minorities was equal to or greater than the percentage of

minorities in the jurisdiction where the previous housing/service

experience occurred); and the Sponsor has ties to the minority

community.

8-9 points--Sponsor has significant previous experience in housing/

serving minorities. There is no evidence that the Sponsor has ties

to the minority community.

5-7 points--Sponsor has minimal experience in housing/serving

minorities (i.e., previous housing assistance/related service to

minorities was less than the percentage of minorities in the

jurisdiction where the previous housing/related service experience

occurred); and the Sponsor has ties to the minority community.

3-4 points--Sponsor has minimal experience in housing/serving

minorities but the Sponsor does not have ties to the minority

community.

1-2 points--The Sponsor does not have experience in housing/serving

minorities, but there is evidence that the Sponsor has ties to the

minority community.

0 points--None of the above.

(SEC (c) REP)--The extent of local government support for the

project. (5 points maximum).

5 points--The application contains written evidence that the local

government intends to provide financial assistance and community

services to the proposed project and the project is consistent with

the Consolidated Plan which shows a need for elderly housing.

3 points--The application contains written evidence that the local

government intends to provide community services to the proposed

project and the project is consistent with the Consolidated Plan

which shows a need for elderly housing.

1 point--The Sponsor has enlisted some support in the community

(i.e., letters of support from other agencies) for the proposed

project and the project is consistent with the Consolidated Plan

which shows a need for elderly housing.

MHR (d)--The extent of the Sponsor's previous experience in serving

the area where the project is to be located (i.e., extent of its

activities, period of involvement, and the size of the population

served), and Sponsor's demonstrated ability to enlist volunteers and

raise local funds (7 points maximum).

4-7 points--The Sponsor has provided documentation which

demonstrates its previous experience in serving the project

locality, and has a good track record of private fund raising and

enlisting volunteers in the community.

1-3 points--The Sponsor has limited experience in serving the area

where the project is to be located, or in securing private funding

or enlisting volunteers in a community.

2. In determining the need for supportive housing for the

elderly in the area to be served and the suitability of the site,

consider: 28 points maximum.

(EMAS) (a)--The extent of the need for the project in the area based

on a determination by the HUD Office. This determination will be

made by taking into consideration the Sponsor's evidence of need in

the area, as well as other economic, demographic and housing market

data available to the HUD Office (8 points maximum).

Rating points for all projects, determined to be marketable, are to

be based on the ratio of the number of units in the proposed project

to the estimate of unmet need for housing assistance by the income

eligible elderly households with selected housing conditions, as

follows. Unmet housing need is defined as the number of very low-

income renter households with housing problems, as of the 1990

Census minus the number of Federally assisted housing units provided

since the 1990 Census. HUD will, to the extent practicable, consider

all units provided for the elderly under the Section 8 programs, the

Public and Indian Housing programs, the Section 202 program, and the

Rural Housing Service's Section 515 Rural Rental Housing program.

8 Points--The number of units proposed is 10 percent or less of the

income eligible unmet need.

4 Points--The number of units proposed is 11 percent or more of the

income eligible unmet need.

(VAL) (b)--The proximity or accessibility of the site to shopping,

medical facilities, transportation, places of worship, recreational

facilities, places of employment, and other necessary services to

the intended occupants, adequacy of utilities and streets, freedom

of the site from adverse environmental conditions, and compliance

with site and neighborhood standards (10 points maximum).

7-10 points--All necessary services and facilities, including

shopping facilities for daily necessities (groceries, toiletries and

medicines), are within safe walking distance, or are easily

accessible by frequently operating public transportation or by

transportation provided by the Sponsor. Utilities and streets are

available, adequate to serve the proposed use, and will require

little or no off-site construction.

Permissive zoning is in place.

No filling is necessary; soil shows no evidence of instability; or,

minimal grading is necessary to improve site drainage. Site is

adequate in size, exposure, configuration, and topography with no

special facilities required. Site is free from all adverse

environmental conditions, including hazardous conditions, and

adequate fire and police protection is readily available.

4-6 points--Some necessary services and facilities, including

shopping facilities for daily necessities, are within safe walking

distance OR are easily accessible by frequently operating public

transportation or by transportation provided by the Sponsor.

Streets and/or utilities can be made available to the site with

moderate extensions.

Rezoning is necessary and Sponsor provided a reasonable assurance

that it will be accomplished with only minor extensions.

Some filling is necessary; soil shows some evidence of instability;

or minor grading is necessary to improve site drainage. Site is

adequate in size, exposure, configuration and topography with no

special facilities required. Site is free from all hazardous

environmental conditions, but some minor adverse conditions exist

(e.g., higher than acceptable noise level). However, mitigation is

possible without significant expenditures of time and expense.

Adequate fire and police protection is readily available.

1-3 points--Few necessary services and facilities, including

shopping facilities for daily necessities are within safe walking

distance. Description of the availability of public transportation

or the willingness, capacity and plan of the Sponsor to provide

transportation is vague.

Streets and/or utilities can be made available to the site only with

significant extensions.

[[Page 28772]]

Rezoning is necessary and the Sponsor provided a reasonable

assurance that it will be accomplished with moderate extensions.

Moderate filling is necessary; soil shows evidence of instability

including the need for geo-technical and/or dynamic soil analysis;

or moderate regrading is necessary to improve site drainage. Site is

minimally acceptable in terms of size, exposure, configuration,

drainage, and topography with some special facilities required. Site

is free from all hazardous environmental conditions, but some minor

adverse conditions exist (e.g., higher than acceptable noise level).

However, mitigation is possible but with significant expenditures of

time and expense. Adequate fire and police protection is readily

available.

(FHEO) (c)Suitability of the site from the standpoints of promoting

a greater choice of housing opportunities for minority persons and

affirmatively furthering fair housing. (10 points maximum)

FHEO awards points under this criterion by considering the existence

and location of existing housing for minority persons and whether a

minority concentrated area has an unmet need for such housing in

determining whether a site promotes housing choice.

Situation #1--Housing market area where there is no existing

assisted housing for elderly minority persons (including Section

202, low rent public housing, and other assisted housing projects).

There is a need for such housing both inside and outside areas of

minority concentration.

10 points--The site is located in a racially mixed area with a need

for such housing.

8 points--The site is located in a nonminority area with a need for

such housing.

5 points--The site is located in a minority concentrated area with a

need for such housing. The Sponsor has comparable rental units

outside of the minority concentrated area that will be available to

elderly minority persons through vacancies and/or turnover, thus

providing a housing choice to those elderly minority persons who

live outside the minority community.

3 points--The site is located in a minority concentrated area with a

need for housing. Sponsor does not have comparable rental units

outside of the minority concentrated area.

0 points--None of the above. The site, although acceptable, does not

promote a greater choice of housing opportunities for minority

elderly persons.

Situation #2--Housing market area where there is existing assisted

housing for the minority elderly (including Section 202, other low

rent public housing, and other assisted housing projects for

minority elderly persons) and such housing is located in a

nonminority area. There is an unmet need to house minority elderly

persons in a minority concentrated area:

10 points--The site is located in a minority concentrated area with

an unmet housing need for elderly and/or minority elderly persons.

8 points--The site is located in a racially mixed area bordering the

minority concentrated area with an unmet need for housing minority

elderly persons.

5 points--The site is located in a non-minority area but Sponsor has

comparable rental units in the minority concentrated area that will

be available to minority elderly persons through vacancies and/or

turnover, thus providing a housing choice to minority elderly

persons who desire to remain in the minority community.

0 points--None of the above. The site, although acceptable, does not

promote a greater choice of housing opportunities for minority

elderly persons.

Situation #3--Housing market area where the existing housing for

minority elderly persons is located in an area of minority

concentration. There is still a housing need in the minority

concentrated area, as well as in the community as a whole:

10 points--The site is located in a racially mixed area.

8 points--The site is located in a non-minority area.

5 points--The site is located in a minority area but Sponsor has

comparable rental units outside of the minority concentrated area

that will be available to minority elderly persons (through

vacancies and/or turnover), thus providing a housing choice to

minority elderly persons who live outside the minority community.

0 points--None of the above. The site, although acceptable, does not

promote a greater choice of housing opportunities for minority

elderly persons.

Situation #4--Housing market area where few or no minorities live.

(There are no or few areas of minority concentration.)

10 points--The site is located in a housing market area with a

population of only a few minorities.

5 points--The site is located in a housing market area with a

population of no minorities.

Situation #5--Housing market area where existing assisted housing

for the minority elderly is inside a minority concentrated area and

also outside a minority concentrated area. Both areas have an unmet

need for housing for minorities.

10 points--The site is located Outside and the majority of assisted

housing is located inside.

10 points--The site is located Inside and the majority of assisted

housing is located outside.

5 points--The site is located Outside and the majority of assisted

housing is located outside.

5 points--The site is located Inside and the majority of assisted

housing is located inside.

Situation #6--Housing market area where few or no nonminorities

live. (There are no or few areas of nonminority concentration.)

10 points--The site is located in a housing market area with a

population of only a few nonminorities.

5 points--The site is located in a housing market area with a

population of no nonminorities.

3. In determining the adequacy of the provision of supportive

services, consider the following: 20 points maximum.

(ARCH) (a)--The extent to which the proposed design will meet the

special physical needs of elderly persons (3 points maximum).

3 points--The narrative is detailed and indicates how local codes

and Section 202 program requirements will be met and how Fair

Housing Amendments and Section 504 requirements will be included in

the design development of the project's interior and exterior

spaces, circulation, and recreation.

1-2 points--The narrative is general and indicates how local codes,

Section 202, Fair Housing Amendments and Section 504 requirements

will be achieved, and gives assurances that full compliance will be

achieved during the design phase.

(ARCH) (b)--The extent to which the proposed size and unit mix of

housing will enable the Sponsor to manage and operate the housing

efficiently and ensure that the provision of supportive services

will be accomplished in an economical manner (4 points maximum).

3-4 points--The narrative provides a detailed description about the

proposed project, including a description of the building type, unit

configuration, special design features, community spaces, amenities

and proposed utilities, and how the proposed project will aid in the

delivery of services in an economical manner. The narrative

indicates that the proposed size, unit mix and delivery of services

is well thought out and will foster easy management and economic

operation. There are no prohibited amenities or spaces not funded by

the Sponsor.

1-2 points--The narrative provides a general description about the

proposed project or does not go into the level of detail as

indicated above, but sufficient information is provided to come to

the belief that the proposed size, unit mix and delivery of services

will foster easy management and economic operation. There are no

prohibited amenities or spaces not funded by the Sponsor.

(ARCH) (c)--The extent to which the proposed design of the housing

will accommodate the provision of supportive services that are

expected to be needed initially and over the useful life of the

housing, by the category or categories of elderly persons the

housing is intended to serve (3 points maximum).

[[Page 28773]]

3 points--The proposed population does not have any special needs

requiring special design features, and there will not be any on-site

services requiring special accommodations; HOWEVER, the Sponsor has

addressed aging in place and described how supportive services will

be made available to the residents in the future for the remaining

useful life of the project;

or

The narrative indicates that special features to accommodate

supportive services will be provided. These features are described

in detail, indicating the items, and their purpose, and may include

other related information, such as, quantity, size, related codes

and standards, locations, and other pertinent data.

The features may provide items such as: (1) adequate food storage,

preparation, and consumption areas; (2) a convenient on-site

passenger pick-up and drop-off area; and (3) any other required

feature to accommodate proposed supportive services.

These features constitute acceptable amenities, and do not include

any prohibited amenities not funded by the Sponsor or clinical/

health type equipment.

1-2 points--Same as above, except that the description is in general

terms, and data such as quantity, sizes, and specific locations and

applicable codes and standards are not included. The features

constitute acceptable amenities, and do not include prohibited

amenities not funded by the Sponsor or clinical/health type

equipment.

(MHR & AM avg'd)--(d) The extent to which the proposed supportive

services meet the identified needs of the residents. (5 points

maximum)

5 points--The proposed population does not have any special

supportive service needs; However, the Sponsor has addressed aging

in place and described how supportive services will be made

available to the residents in the future for the remaining useful

life of the project;

or

Sponsor has comprehensively described the specific supportive

service needs of the identified elderly group to be housed. Proposed

services address the identified needs, provide for tailoring to

individual needs, and are consistent with program requirements.

Method of service delivery is appropriate and clearly described.

Sponsor's service plan discusses provisions for those aging in

place.

3-4 points--The elderly group to be housed and their supportive

needs are well described. Proposed services address the principal

needs identified, and the method of delivery is appropriate. The

service plan is consistent with program requirements. Aging in place

needs are addressed.

1-2 points--The elderly group to be housed and their supportive

needs are generally described. Description of services and method of

delivery are general in nature. Some specifics of the service plan

may yet need to be developed. Aging in place needs are discussed.

(MHR & AM avg'd)--(e) The extent to which the sponsor demonstrated

that the identified supportive services will be provided on a

consistent long-term basis (5 points maximum).

4-5 points--Well documented explanation for the long-term provision

of supportive services, including funding, for residents as they age

in place.

1-3 points--Limited explanation for the long-term provision of

supportive services, including funding, for residents as they age in

place.

4. Bonus Points.

(MHR)(a)--The Sponsor has involved elderly persons, including

minority elderly persons, in the development of the application and

will involve elderly persons, including minority elderly persons, in

the development of the project (5 Bonus Points). [See Exhibit 3e.]

The Sponsor met with elderly persons at least twice during the

preparation of the application to solicit comments, drafts of the

application were circulated to elderly persons for review, and/or

the Sponsor board includes at least 20 percent elderly members.

Also, the Sponsor discussed the input received and whether the input

was accepted.

(CPD)(b)--The project will be located within the boundaries of a

Federally designated Empowerment Zone, Urban Supplemental

Empowerment Zone, Enterprise Community, or an Urban Enhanced

Enterprise Community (5 bonus points).

Appendix B--HUD Offices

Note: The first line of the mailing address for all offices is

Department of Housing and Urban Development. Telephone numbers

listed are not toll-free.

HUD--New England Area

Connecticut State Office

First Floor, 330 Main Street, Hartford, CT 06106-1860, (203) 240-

4523, TTY Number: (860) 240-4665

Massachusetts State Office

Room 375, Thomas P. O'Neill, Jr. Federal Building, 10 Causeway

Street, Boston, MA 02222-1092, (617) 565-5234, TTY Number: (617)

565-5453

New Hampshire State Office

Norris Cotton Federal Building, 275 Chestnut Street, Manchester, NH

03101-2487, (603) 666-7681, TTY Number: (603) 666-7518

Rhode Island State Office

Sixth Floor 10 Weybosset Street, Providence, RI 02903-3234, (401)

528-5351, TTY Number: (401) 528-5403

HUD--New York, New Jersey Area

New Jersey State Office,

Thirteenth Floor, One Newark Center, Newark, NJ 07102-5260, (201)

622-7900, TTY Number: (201) 645-3298

New York State Office

26 Federal Plaza, New York, NY 10278-0068, (212) 264-6500, TTY

Number: (212) 264-0927

Buffalo Area Office

Fifth Floor, Lafayette Court, 465 Main Street, Buffalo, NY 14203-

1780, (716) 551-5755, TTY Number: (716) 551-5787

HUD--Mid-Atlantic Area

District of Columbia Office

820 First Street, NE, Washington, D.C. 20002-4502, (202) 275-9200,

TTY Number: (202) 275-0772

Maryland State Office

Fifth Floor, City Crescent Building, 10 South Howard Street,

Baltimore, MD 21201-2505, (410) 962-2520, TTY Number: (410) 962-0106

Pennsylvania State Office

The Wanamaker Building, 100 Penn Square East, Philadelphia, PA

19107-3390, (215) 656-0600, TTY Number: (215) 656-3452

Virginia State Office

The 3600 Centre, 3600 West Broad Street, P.O. Box 90331, Richmond,

VA 23230-0331, (804) 278-4507, TTY Number: (804) 278-4501

West Virginia State Office

Suite 708, 405 Capitol Street, Charleston, WV 25301-1795, (304) 347-

7000, TTY Number: (304) 347-5332

Pittsburgh Area Office

339 Sixth Avenue, Sixth Floor, Pittsburgh, PA 15222-2515, (412) 644-

6428, TTY Number: (412) 644-5747

HUD--Southeast/Caribbean Area

Alabama State Office

Suite 300, Beacon Ridge Tower, 600 Beacon Parkway, West, Birmingham,

AL 35209-3144, (205) 290-7617, TTY Number: (205) 290-7630

Caribbean Office

New San Juan Office Building, 159 Carlos Chardon Avenue, San Juan,

PR 00918-1804, (809) 766-6121, TTY Number: (809) 766-5909

Georgia State Office

Richard B. Russell Federal Building, 75 Spring Street, S.W.,

Atlanta, GA 30303-3388, (404) 331-5136, TTY Number: (404) 730-2654

Kentucky State Office

601 West Broadway, P.O. Box 1044, Louisville, KY 40201-1044, (502)

582-5251, TTY Number: 1-800-648-6056

Mississippi State Office

Suite 910, Doctor A.H. McCoy Federal Building, 100 West Capitol

Street, Jackson, MS 39269-1096, (601) 965-5308, TTY Number: (601)

965-4171

[[Page 28774]]

North Carolina State Office

Koger Building, 2306 West Meadowview Road, Greensboro, NC 27407-

3707, (919) 547-4001, TTY Number: (919) 547-4055

South Carolina State Office

Strom Thurmond Federal Building, 1835-45 Assembly Street, Columbia,

SC 29201-2480, (803) 765-5592, TTY Number: (803) 253-3071

Tennessee State Office

Suite 200, 251 Cumberland Bend Drive, Nashville, TN 37228-1803,

(615) 736-5213, TTY Number: (615) 736-2886

Jacksonville Area Office

Suite 2200, Southern Bell Tower, 301 West Bay Street, Jacksonville,

FL 32202-5121, (904) 232-2626, TTY Number: (904) 232-1241

Knoxville Area Office

Third Floor, John J. Duncan Federal Building, 710 Locust Street,

Knoxville, TN 37902-2526, (423) 545-4384, TTY Number: (423) 545-4559

HUD--Midwest Area

Illinois State Office

Ralph H. Metcalfe Federal Building, 77 West Jackson Boulevard,

Chicago, IL 60604-3507, (312) 353-5680, TTY Number: (312) 353-5944

Indiana State Office

151 North Delaware Street, Indianapolis, IN 46204-2526, (317) 226-

6303, TTY Number: (317) 226-7081

Michigan State Office

Patrick V. McNamara Federal Building, 477 Michigan Avenue, Detroit,

MI 48226-2592, (313) 226-7900, TTY Number: (313) 226-6899

Minnesota State Office

220 Second Street, South, Minneapolis, MN 55401-2195, (612) 370-

3000, TTY Number: (612) 370-3186

Ohio State Office

200 North High Street, Columbus, OH 43215-2499, (614) 469-5737, TTY

Number: (614) 469-6694

Wisconsin State Office

Suite 1380, Henry S. Reuss Federal Plaza, 310 West Wisconsin Avenue,

Milwaukee, WI 53203-2289, (414) 297-3214, TTY Number: (414) 297-3123

Cincinnati Area Office

525 Vine Street, Seventh Floor, Cincinnati, OH 45202-3188, (513)

684-2884, TTY Number: (513) 684-6180

Cleveland Area Office

Fifth Floor, Renaissance Building, 1350 Euclid Avenue, Cleveland, OH

44115-1815, (216) 522-4065, TTY Number: (216) 522-2261

Grand Rapids Area Office

Trade Center Building, Third Floor, 50 Louis Street, NW, Grand

Rapids, MI 49503-2648, (616) 456-2100, TTY Number: (616) 456-2159

HUD--Southwest Area

Arkansas State Office

Suite 900, TCBY Tower, 425 West Capitol Avenue, Little Rock, AR

72201-3488, (501) 324-5931, TTY Number: (501) 324-5931

Louisiana State Office

Ninth Floor, Hale Boggs Federal Building, 501 Magazine Street, New

Orleans, LA 70130-3099, (504) 589-7200, TTY Number: (504) 589-7279

Oklahoma State Office

500 Main Plaza, 500 West Main Street, Suite 400, Oklahoma City, OK

73102-2233, (405) 553-7400, TTY Number: (405) 553-7480

Texas State Office

1600 Throckmorton Street, P.O. Box 2905, Fort Worth, TX 76113-2905,

(817) 978-9000, TTY Number: (817) 978-9273

Houston Area Office

Suite 200, Norfolk Tower, 2211 Norfolk, Houston, TX 77098-4096,

(713) 313-2274, TTY Number: (713) 834-3274

San Antonio Area Office

Washington Square, 800 Dolorosa Street, San Antonio, TX 78207-4563,

(210) 472-6800, TTY Number: (210) 472-6885

HUD--Great Plains

Iowa State Office

Room 239, Federal Building, 210 Walnut Street, Des Moines, IA 50309-

2155, (515) 284-4512, TTY Number: (515) 284-4728

Kansas/Missouri State Office

Room 200, Gateway Tower II, 400 State Avenue, Kansas City, KS 66101-

2406, (913) 551-5462, TTY Number: (913) 551-6972

Nebraska State Office

Executive Tower Centre, 10909 Mill Valley Road, Omaha, NE 68154-

3955, (402) 492-3100, TTY Number: (402) 492-3183

Saint Louis Area Field Office

Third Floor, Robert A. Young Federal Building, 1222 Spruce Street,

St. Louis, MO 63103-2836, (314) 539-6583, TTY Number: (314) 539-6331

HUD--Rocky Mountains Area

Colorado State Office

633 17th Street, Denver, CO 80202-3607, (303) 672-5440, TTY Number:

(303) 672-5248

HUD--Pacific/Hawaii Area

Arizona State Office

Suite 1600, Two Arizona Center, 400 North 5th Street, Phoenix, AZ

85004-2361, (602) 379-4434, TTY Number: (602) 379-4464

California State Office

Philip Burton Federal Building and U.S. Courthouse, 450 Golden Gate

Avenue, P.O. Box 36003, San Francisco, CA 94102-3448, (415) 436-

6532, TTY Number: (415) 436-6594

Hawaii State Office

Suite 500, 7 Waterfront Plaza, 500 Ala Moana Boulevard, Honolulu, HI

96813-4918, (808) 522-8175, TTY Number: (808) 522-8193

Los Angeles Area Office

1615 West Olympic Boulevard, Los Angeles, CA 90015-3801, (213) 894-

8000, TTY Number: (213) 894-8133

Sacramento Area Office

Suite 200, 777 12th Street, Sacramento, CA 95814-1997, (916) 498-

5220, TTY Number: (916) 498-5959

HUD--Northwest/Alaska Area

Alaska State Office

Suite 401, University Plaza Building, 949 East 36th Avenue,

Anchorage, AK 99508-4399, (907) 271-4170, TTY Number: (907) 271-4328

Oregon State Office

400 Southwest Sixth Avenue, Suite 700, Portland, OR 97204-1632,

(503) 326-2561, TTY Number: (503) 326-3656

Washington State Office

Suite 200, Seattle Federal Office Building, 909 First Avenue,

Seattle, WA 98104-1000, (206) 220-5101, TTY Number: (206) 220-5185

[FR Doc. 97-13728 Filed 5-23-97; 8:45 am]

BILLING CODE 4210-27-P