Notice of Funding Availability for HOPE VI Public Housing DemolitionFiscal Year 1997

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4228-N-01]

Notice of Funding Availability for HOPE VI Public Housing

Demolition--Fiscal Year 1997

AGENCY: Office of the Assistant Secretary for Public and Indian

Housing, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This notice informs Public Housing Agencies (PHAs) of the

availability of up to $30 million in HOPE VI funding for the demolition

of obsolete Public Housing units without revitalization, where the

demolition would otherwise not occur due to lack of available

resources. Indian Housing Authorities are not eligible to apply.

DATES: An original application must be received at HUD Headquarters,

Attention: Director, Office of Public Housing Investments, 451 Seventh

Street, SW, Room 4138, Washington, DC 20410, on or before 4 p.m.

eastern time on August 4, 1997. The application deadline for the

original application delivered to HUD Headquarters is firm as to date

and hour. PHAs should take this into account and submit applications as

early as possible to avoid the risk brought about by unanticipated

delays or delivery-related problems. In particular, PHAs intending to

mail applications must provide sufficient time to permit delivery on or

before the deadline date. HUD will disqualify and return to the

applicant any application that it receives after the deadline date and

time. Notwithstanding the foregoing, HUD will accept any application

the original of which was delivered to a U.S. post office or private

mailer for expedited delivery, properly addressed to Headquarters and

fully paid for, no later than 12:00 noon local time on the day before

it was due at HUD, for scheduled delivery prior to the deadline

established above. If an application arrives at HUD Headquarters after

the deadline date and time and the applicant wishes to make a case that

it delivered the application for expedited delivery on time, the

applicant must document with an official receipt from the post office

or private mailer that the application was received by 12:00 noon local

time on the day before it was due at HUD.

In addition, two copies of the completed application must be

received at the Field Office. The deadlines for submission discussed

above only apply to the original, official copy, not to the copies of

the application going to the Field Office.

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

Urban Revitalization, Department of Housing and Urban Development, 451

Seventh Street, SW, Room 4142, Washington, DC 20410; telephone (202)

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

individuals may access this number via TTY by calling the Federal

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

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

Wide Web at http://www.hud.gov/nofas.html. HUD also will post

frequently-asked questions and answers on the Home Page throughout the

application preparation period.

SUPPLEMENTARY INFORMATION:

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 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.

NOFAs related to housing revitalization that HUD has published are

the NOFA for Revitalization of Severely Distressed Public Housing (HOPE

VI), which was published on April 14, 1997, and the NOFA for the

Comprehensive Improvement Assistance (CIAP) Program, which was

published on May 1, 1997. Other NOFAs related to housing revitalization

the Lead-based Paint Hazard Reduction NOFA, which is published

elsewhere in today's Federal Register, and the NOFA for the Section 8

Rental Certificate and Voucher Programs, 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. 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.

I. Purpose and Substantive Description

A. Authority

The funding made available under this NOFA is provided by 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 1997 Appropriations Act), under the

heading ``Revitalization of Severely Distressed Public Housing.''

B. Fund Availability

This NOFA announces the availability of up to $30 million in HOPE

VI funding for the demolition of obsolete Public Housing units without

revitalization, where the demolition would otherwise not occur due to

lack of available resources. Indian Housing Authorities are not

eligible to apply.

C. Application Limitations

There is no minimum or maximum limitation on the size of the PHA

that may apply or on the number of dwelling units for which demolition

funding is requested. The Department will limit the eligible demolition

funding per unit to $5,000 for vacant units and $6,500 for occupied

units that require resident relocation. In addition, there will be a

$3,000,000 limit on each grant. A PHA may apply for funding for only

one public housing development. Contiguous developments will be

considered one development for purposes of this NOFA.

D. Previously Submitted Demolition Applications

PHAs with previously submitted and/or approved demolition

applications that include dwelling units may apply for funding under

this NOFA where the PHA has not signed a contract to demolish the

structure(s) and the actual

[[Page 30403]]

demolition costs have not yet been incurred. This NOFA is not intended

to reimburse PHAs for demolition costs already incurred.

E. Eligible Costs

Eligible costs include: (1) The cost of demolition, including any

required asbestos and/or lead-based paint abatement, of dwelling units

and nondwelling facilities, where the demolition is approved by HUD

under 24 CFR part 970 but where the PHA has not yet signed a contract

for demolition and the building(s) has not been demolished, (2) minimal

site restoration after demolition and subsequent site improvements to

benefit the remaining portion of the project or to make the site more

saleable, (3) demolition of nondwelling facilities are eligible costs

only where related to the demolition of the dwelling units, (4)

necessary administrative costs, and relocation and other assistance

costs related to the permanent relocation.

II. NOFA Application Requirements

The PHA shall submit the original NOFA Application to the address

specified by the date specified in the DATE section above. An

application must contain all of the items in A-E of this section to be

considered complete for the purposes of this section. The NOFA

Application is comprised of the following documents:

A. Demolition Application

In order for a demolition application to be complete the PHA must

address each of the requirements identified below in II. A. 1. (a-i).

Where the Processing Center or Headquarters determines that more

information is needed to clarify the submission with respect to one or

more part 970 requirements, the PHA will be required to submit

supplementary documentation. The PHA may be requested to provide this

supplementary information at any time in the review process. However,

where the PHA has failed to address a requirement under part 970 the

application will be determined to be incomplete and will not be

processed further in connection with this NOFA.

1. If a demolition application has not been previously submitted,

the PHA shall submit a demolition application in accordance with 24 CFR

part 970. In order for a demolition application to be complete it shall

include the following:

a. A description of the property involved (Sec. 970.8(a));

b. A description of, as well as a timetable for, the specific

action proposed (Sec. 970.8(b));

c. A statement justifying the proposed demolition based on 24 CFR

970.6:

(a) ``In the case of demolition of all or a portion of a project,

the project, or portion of the project, is obsolete as to physical

condition, location, or other factors, making it unusable for housing

purposes and no reasonable program of modifications, is feasible to

return the project or portion of the project to useful life.''

(Sec. 970.6(a))

(b) ``In the case of demolition of only a portion of a project, the

demolition will help to assure the useful life of the remaining portion

of the project (e.g., to reduce project density to permit better access

by emergency, fire, or rescue services).'' (Sec. 970.6(b))

d. If applicable, a plan for the relocation of residents who would

be displaced by the proposed demolition (Sec. 970.5). The relocation

plan must at least indicate:

(1) The number of residents to be displaced;

(2) What counseling and advisory services the PHA plans to provide;

(3) What housing resources are expected to be available to provide

housing for those displaced residents;

(4) An estimate of the cost of advisory services and resident

moving expenses and the expected source for payment of these costs; and

(5) The minimum official notice that the PHA will give residents

before they are required to move (Sec. 970.8(d)).

e. The application must be developed in consultation with residents

and any resident organizations at the development, as well as any PHA-

wide organizations. Copies of resident comments and the PHA's

evaluation of those comments must be submitted. (Secs. 970.4(a) and

970.8(e))

f. Evidence of compliance with the requirement for offering of the

property to any resident organizations at the development for purchase,

as required in Sec. 970.13, or documentation that the application fits

one of the exceptions.1 Evidence must be submitted as to the

residents' response to the offer or that the time for response has

expired. (Sec. 970.13)

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\1\ At a minimum the PHA's demolition application submitted to

HUD must include a signed and dated copy of the letter of offer to

the resident organization at the affected development or where no

resident organization exists, a copy of the notification of a

meeting with residents for the purpose of assisting the residents to

organize and a certification that the notification has been issued.

As required by the regulation, the PHA must complete this

requirement for the demolition application to be approved.

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g. A relocation certification regarding relocation of residents, in

accordance with Sec. 970.5(h)(1); (See Sec. 970.8(h).)

h. Estimated balance of development debt, under the Annual

Contributions Contract (ACC), for development and modernization debt;

2 (Sec. 970.8(k)) and

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\2\ Where the HA does not have information on the debt, the

Processing Center will contact the Office of Finance and Accounting

to determine the debt.

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i. A signed and dated resolution by the Board of Commissioners

approving the demolition application. (970.8(n))

2. If a demolition application has been submitted to HUD previously

but not yet been approved, the PHA shall submit a copy of its letter

transmitting the application to HUD.

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

approved by HUD, the PHA shall submit a copy of HUD's signed and dated

approval letter.

B. Narrative Statements, in an original and two copies, addressing

each of the program threshold criteria and the rating factors in

Sections III and IV of this NOFA.

C. An Implementation Schedule, showing the start and completion

dates of the proposed demolition by phases if any.

D. Budget Form HUD-52825-A, HOPE VI Budget, Parts I and II, in an

original and two copies.

E. Required HUD Certifications

Copies of the required certifications are contained in the Fiscal

Year (FY) 1997 HOPE VI Application Kit which will be mailed to each

PHA.

1. SF-424, Application for Federal Assistance. This form must be

signed by the Executive Director of the PHA.

2. A letter from the Chief Executive. A letter from the Chief

Executive of the applicable jurisdiction in support of the application.

3. Compliance with the Consolidated Plan. A certification by the

public official responsible for submitting the Consolidated Plan under

24 CFR part 91 that the proposed activities are consistent with the

approved Consolidated Plan of the State or unit of general local

government within which the development is located.

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

Application.

5. Form HUD-50070, Certification for a Drug-Free Workplace, in an

original only.

6. Form HUD-50071, Certification for Contracts, Grants, Loans and

Cooperative Agreements, in an original only, required of PHAs applying

for grants exceeding $100,000.

7. Form SF-LLL, Disclosure of Lobbying Activities, in an original

only, required where any funds, other than

[[Page 30404]]

federally appropriated funds, will be or have been used to influence

Federal workers, Members of Congress and their staff regarding specific

grants or contracts. The PHA determines if the submission of the SF-LLL

is applicable.

8. Form HUD 2880, Recipient Disclosure/Update Report, in an

original only.

III. Program Threshold Criteria

This section identifies criteria which must be satisfied by each

application in order for it to be rated and ranked. HUD will determine

whether each criterion has been satisfied, based on the information

submitted in accordance with the specific requirements of Sections II,

III and IV of this NOFA and available program reports (e.g., LOCCS

Quarterly Reports, FHEO Records). Only complete applications will be

rated under this NOFA.

There are four program threshold criteria as follows:

A. Completeness of the Application

For an application to be complete, the PHA must address each

requirement identified in Section II. With reference to the demolition

portion of the application, the demolition application must be complete

in terms of addressing each of the regulatory requirements found in

Section II A.1. a-i of this NOFA. The demolition application does not

have to be approved prior to rating or funding decisions.

B. Progress in Obligation of Modernization Funds

Based on the 12/30/1996 Quarterly Letter of Credit Control System

(LOCCS) Report, at least 90 percent of modernization (i.e.,

Comprehensive Improvement Assistance Program or Comprehensive Grant

Program) funds approved for Fiscal Year 1994 and prior years have been

obligated.

C. Need for Demolition Funding

The PHA must demonstrate through written documentation that

without HUD funds the demolition of this development or portion of the

development could not take place. A Comprehensive Grant Program (CGP)

participant must provide a copy of its 1997 Annual Statement. Using the

Annual Statement, the PHA must demonstrate that either (a) 50 percent

or more of its CGP funds for one year will be used to fund emergency

needs, or (b) 50 percent or more of its CGP funds are needed for a

combination of emergency needs, and critical needs 3. The

CGP PHA must provide an itemized list of emergency and/or critical

needs, the individual and total cost of these work items accompanied by

either a municipal order or a narrative demonstrating the gravity of

the critical needs in order to address the threshold requirement.

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\3\ Critical needs are defined as modernization needs at the PHA

that are a threat to health and safety of residents but that do not

qualify technically as an emergency since there is no immediate

threat to tenant health or safety. Examples of critical needs

include the repair of roofs and plumbing in cases where failure to

repair the problem would result in a significant increase in the

expenditure of funds in the future.

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A non-CGP PHA must demonstrate that it does not have adequate

reserves to perform the demolition and maintain a reasonable operating

reserve. The PHA must enumerate its capital reserves and then describe

the amount of its capital reserves that it anticipates will be used for

emergency and/or critical needs in FY 1997. Such a PHA must provide the

specific dollar amount of the capital reserves, an itemized list of the

emergency and/or critical needs work items, and the individual and

total cost of these work items accompanied by a narrative demonstrating

the gravity of the critical needs that it is going to use its funds to

correct.

D. Civil Rights Compliance

The Department will use the following standards to assess

compliance with civil rights laws at the threshold review. In making

this assessment, the Department shall review appropriate records

maintained by the Office of Fair Housing and Equal Opportunity, e.g.,

records of monitoring, audit, or compliance review findings, complaint

determinations, compliance agreements, etc. If the review reveals the

existence of any of the following, the application will be rejected.

(1) There is a pending civil rights suit against the sponsor

instituted by the Department of Justice.

(2) There is an outstanding finding of noncompliance with civil

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

administrative proceedings, unless the applicant is operating under a

HUD-approved compliance agreement designed to correct the area of

noncompliance, or is currently negotiating such an agreement with the

Department.

(3) There is an unresolved Secretarial charge of discrimination

issued under Section 810(g) of the Fair Housing Act, as implemented by

24 CFR 103.400.

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

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

applicant is operating in compliance with a court order designed to

correct the area of noncompliance, or the applicant has discharged any

responsibility arising from such litigation.

IV. Rating Factors. Maximum [100 Points]

A. Extent of PHA Need for Funding for the Demolition [50 points]

The PHA will be rated on the extent to which funds are needed to

demolish the targeted development. Using the threshold data for need

described in III.C. and materials presented to address this factor, HUD

will rate the extent of need for funding for the proposed demolition.

There are two 25 point elements that comprise this factor, as

follows:

Element 1

CGP PHAs and non-CGP PHAs will be rated depending on the amount of

CGP funds or capital reserves remaining after taking into consideration

grant funds used for emergency and/or critical needs. A CGP PHA must

provide a comparison of the total cost of demolition of the targeted

development with the amount remaining in the FY 1997 annual

comprehensive grant award after funding emergency and/or critical needs

for FY 1997. Notwithstanding the PHA's annual statement, the Department

expects a PHA to expend any dollars remaining in the CGP grant after it

funds any emergency and/or critical needs to partially or fully fund

the proposed demolition.

A CIAP PHA is to use the amount of funds in its capital reserves at

the time of the HOPE VI application as the basis of the computation for

this element. That is, a CIAP PHA is to compare the total cost of

demolition of the targeted development with the amount remaining in the

capital reserves after funding emergency and/or critical needs for FY

1997.

PHAs that cannot fund the demolition with the remaining CGP funds

or capital reserves or those who could only fund a small percent (i.e.,

0 percent to 25 percent) of the demolition with the remaining CGP award

or capital reserves will receive between 16-25 points.

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Percent of proposed demolition cost able to be funded with Points

CGP or capital reserves awarded

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76-100....................................................... 0-5

51-75........................................................ 6--10

26-50........................................................ 11-15

25-0......................................................... 16-25

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Element 2

CGP PHAs will be rated on the number of years it will take to fund

the

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total physical needs of the PHA. PHAs that participate in the CIAP will

automatically receive the maximum score of 25 points for this element.

Comprehensive Grant PHAs will be rated on the number of years that it

will take to fully fund the total physical needs, as identified in the

Physical Needs Assessment (PNA) approved by HUD. The CGP PHA must

provide the total cost of the PNA (minus any grant awards funded since

the date of the PNA) divided by the dollar amount of the FY 1997 CGP

grant. The resulting figure is the number of years to fully fund the

PHA's physical needs. For example, if the physical needs of the PHA

will take 15-years to fund given the PHA's FY 1997 grant, then the PHA

is eligible to receive 25 points.

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Points

Number of years to complete the physical needs assessment awarded

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0............................................................ 0

1-4.......................................................... 6

5-9.......................................................... 12

10-14........................................................ 18

15 or more................................................... 25

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PHAs that participate in the CIAP will automatically receive the

maximum score of 25 points for this element.

The total points for this factor can be determined by combining the

score from element 1 with the score from element 2.

B. Extent of Impact of Demolition of Building on PHA and Surrounding

Neighborhood [20 points]

1. The PHA must have described the extent to which the demolition

of the development or portion of the development will have a

significant impact on the remainder of the development and/or the PHA

as it relates to such factors as the financial situation of the PHA,

the elimination of long term vacancies, fire safety, resident and

neighborhood security, as well as any other health and safety factors

the change will bring about.

2. The degree to which the demolition of the development or portion

of the development will eliminate serious conditions or problems in the

surrounding neighborhood, e.g., buildings that are a health hazard, an

imminent threat to health and safety, a notorious security or safety

problem, or an extremely negative impact on the surrounding area.

Each PHA must have submitted a narrative description to address

this factor. The assignment of points is described in the following

chart. The PHA must have developed a strong narrative to describe the

problems caused by the development and provide any available

documentation of problems such as a copy of a condemnation order, fire

department citations of violations, other code enforcement violations,

etc.

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Degree of significance and quantity of

Points awarded problems resolved by demolition as

described by the PHA in its narrative

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9 to 10......................... The demolition will resolve a

significant number of serious

problems, including health and safety

problems that have a significant

impact on the surrounding

neighborhood.

6 to 8.......................... The demolition will resolve a moderate

number of important health and safety

problems and have significant impact

on surrounding neighborhood.

0 to 5.......................... The demolition will resolve a few

problems of lesser importance and

have little impact on the surrounding

neighborhood.

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C. Extent of PHA's Actions to Affirmatively Further Fair Housing [10

points]

In addressing the affirmatively furthering fair housing rating

factor, actions that the PHA has taken, or plans to take, to accomplish

this objective may include, but are not limited to the following:

1. Actions that contribute to the provision of fair housing choice

to residents displaced as a result of demolition or disposition. These

actions may also include programs or activities that provide

information on housing opportunities outside of minority concentrated

areas within the PHA's jurisdictional boundaries, or efforts that

encourage landlords/owners to make available to displacees housing

opportunities outside of minority concentrated areas. For example, the

PHA may refer applicants to other available housing as part of an

established housing counseling service or assist applicants in getting

on other waiting lists.

2. Actions that overcome the consequence of prior discriminatory

practices or usage which may have tended to exclude persons of a

particular race, color, religion, sex, family status and national

origin; or that overcome the effects of past discrimination against

persons with disabilities. Such actions may include those actions taken

without any kind of legally binding order, but which have changed

previous discriminatory management, resident selection and assignment

or maintenance practices.

The PHA must have submitted a narrative description in response to

C. 1. and 2.

D. Extent of PHA's Capability and Readiness to Perform the Demolition

[10 points]

Based on the latest HUD records (including the PHA's PHMAP

modernization score) the PHA will be scored on the extent of the PHA's

ability to begin immediately after approval and to effectively carry

out the proposed demolition (e.g., the PHA has a request for proposal

(RFP) prepared and ready to issue).

This criteria is divided into two factors--capability which has a

maximum of 8 points and readiness to perform the demolition which has a

maximum of 2 points.

HUD will consider the extent to which the PHA with any active

capital funding under CIAP, CGP and development programs, is on

schedule or, if behind schedule, has resolved all major issues and has

been making good progress in the last six months. The PHA's capability

will be judged by the immediate past performance in timely use of

funding for capital programs including CIAP, CGP and development. For

this criterion the capability of the PHA will be measured by the

timeliness of fund obligation from the modernization PHMAP score, as

follows:

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Maximum points Capability

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8............................... Latest modernization PHMAP score of A.

6............................... Latest Modernization PHMAP score of B.

4............................... Latest Modernization PHMAP score of C.

2............................... Latest Modernization PHMAP score of D.

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The readiness of the PHA will be determined by whether the PHA has

a draft RFP that is in compliance with Sec. 85.36 for the demolition

contract prepared at the time of its response to this NOFA. The PHA

must have included in its application a copy of the draft RFP to

document its contention. A PHA with a draft RFP will receive the

maximum score for this element, 2 points. A PHA without a draft RFP

will receive 0 points. The PHA's score on readiness is to be combined

with its score on modernization capability to give the total score on

the rating factor.

E. Degree of Local Government Support [10 points]

The Secretary's Representative shall award up to 10 points for the

degree of

[[Page 30406]]

local government support of the proposed demolition as demonstrated

through either funding or in-kind-contributions of services to the PHA,

over and above what is required under the Cooperation Agreement for

municipal services, (e.g., building and staffing of a police or fire

substation, refuse collection, locating job training, child care or

health services near or within the PHA). In the event that a

Representative does not score this factor for any application during

the time allotted for the first stage of the review process, the

program office will read and score the Degree of Local Government

Support factor.

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Maximum

NOFA rating factors points

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Extent of need for demolition funding........................ 50

Extent of effect of demolition of building or portion of

building on PHA and community............................... 20

Extent of PHA actions to affirmatively furthering fair

housing..................................................... 10

Extent of PHA's capability and readiness..................... 10

Degree of local government support........................... 10

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Total maximum points..................................... 100

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V. Application Processing

A. Corrections to Deficient Applications

To be eligible for processing, the original HOPE VI Demolition

Application including the demolition application, where applicable,

must be physically received by HUD Headquarters by the time and date

specified in this NOFA. Where a demolition application is submitted

with the HOPE VI Demolition application, it must be complete in

accordance with Section II (a)(1) of this NOFA. HUD will immediately

perform a review to determine whether an application is complete. A

PHA's HOPE VI Demolition application will not be disqualified for

rating simply because the demolition application is not approvable at

the time it is submitted to the Headquarters address shown elsewhere in

this NOFA.

1. If any of the items listed in Section II A, B, C, and D of this

NOFA are missing, the PHA's HOPE VI NOFA Demolition Application will be

considered substantially incomplete and, therefore, ineligible for

further processing.

2. If any of the items listed in Section II E (1-8) are required

but missing or there is a technical mistake on any document, such as an

incorrect signatory, or a document is missing any other information

that does not affect evaluation of the HOPE VI or demolition

applications, HUD will immediately notify the PHA in writing by

facsimile (fax) that the PHA has 14 calendar days from the date of

HUD's written notification to submit or correct any of the specified

items. The PHA will have no opportunity to correct deficiencies other

than those identified in HUD's written notification, or otherwise to

supplement or revise its NOFA Application. If any of the items

identified in HUD's written notification are not corrected and

submitted within the required time period, the NOFA Application will be

ineligible for further consideration.

B. Rating and Ranking

Awards under this NOFA will be made through a selection process

that will award grants to the highest ranked applications based upon

points as provided in Section IV. The Field Office Public Housing

Director and staff, Field Office FHEO Director and staff and the

Secretary's Representative together with Headquarters staff will

participate in the rating and ranking.

HUD will preliminarily review, rate and rank each eligible

application on the basis of the factors set forth in Sections III and

IV. A final review panel will then review the scores of all

applications whose preliminary score is above a base score established

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

intends to set the base score so that applications requesting a total

of approximately $60 million are advanced to the final review stage.

The review panel will assess each of the applications advanced to

final review and will assign the final scores. HUD will select for

funding the most highly rated applications in rank order up to $30

million, the amount of available funding.

The Field Office of Public Housing shall forward a list of all PHAs

to be rated to the Secretary's Representative for scoring the rating

factor related to local government support. Within an established time

frame, the Field Office of Public Housing shall provide the Secretary's

Representative with the portion of each HA's narrative statement,

included in the HOPE VI application, related to the technical review

factor on local government support.

In addition, the Field Office of Public Housing shall forward a

list of all applications to the Field Office of FHEO to review for the

program threshold criteria. Once the assessment of each applicant on

the threshold criteria has been completed, the list of all applications

to be rated will then be forwarded to the Field Office of FHEO for

scoring the rating factor related to affirmatively furthering fair

housing. Within an established time frame the Field Office of Public

Housing shall provide the Office of FHEO with the portion of each PHA's

narrative statement, included in the HOPE VI application, related to

the threshold factor and rating factor on affirmatively furthering fair

housing.

C. Program Threshold Factors

A demolition application must be found approvable in accordance

with CFR part 970 before HUD will obligate funds to an applicant

selected for funding.

D. Litigation

In accordance with the provisions of the Departments of Veterans

Affairs and Housing and Urban Development-Independent Agencies

Appropriations Act, 1997, Public Law 104-204, no appropriated funds

shall be used directly or indirectly for the purpose of granting a

competitive advantage in awards to settle litigation or pay judgments

in court cases affecting applicants for this program. The Department

will not, when reviewing applications under this NOFA, award extra

points, for example, to any PHA involved in a consent decree mandating

desegregation of the PHA's public housing.

E. Reduction in Requested Grant Amount

HUD may select an application for funding in an amount lower than

the amount requested by the PHA, or adjust line items in the proposed

grant budget within the amount requested (or both). The Department will

adjust for any costs which are determined to be unreasonable or

inadequately justified.

F. Environmental Review

The Field Office will review the environmental impact of the

demolition activities proposed by the PHA in accordance with 24 CFR

part 50. The PHA shall provide any documentation to the Field Office

that is needed to carry out its review under the National Environmental

Policy Act (NEPA) and related environmental laws, orders and

regulations.

G. Notification of Funding Decisions

HUD will not notify PHAs as to whether they have been selected to

participate until the announcement of the selection of all recipients

under this NOFA. HUD will provide written notification to PHAs that

were selected

[[Page 30407]]

for funding and to those that were not selected.

H. Annual Contributions Contract (ACC) Amendment

After HUD selects a PHA for funding under this NOFA, HUD and the

PHA shall enter into an ACC Amendment, setting forth the amount of the

grant and applicable rules, terms, and conditions, including sanctions

for violation of the amendment. Among other things, the amendment will

require the PHA to agree to the following:

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

this NOFA, applicable law, the approved NOFA Application and Demolition

Application, and all other applicable requirements;

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

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

administering, monitoring, and evaluating the program in an effective

and efficient manner;

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

grant, terminate the ACC Amendment, or take other appropriate action

authorized by the 1997 Appropriations Act or under the ACC Amendment if

HUD determines that the PHA is failing to carry out the approved

demolition in accordance with the application as approved and this

NOFA.

I. Failure To Proceed Expeditiously

An applicant may be selected for funding for HOPE VI demolition in

advance of the approval of its demolition application. However, the

demolition application must be approved within three (3) months of the

fund reservation or the funds will be withdrawn, unless HUD grants an

extension to this deadline. In the event that an applicant selected to

receive HOPE VI funding does not proceed in a manner consistent with

its application, HUD may withdraw any unobligated balances of funding

and make this funding available subject to applicable law, in HUD's

discretion, to the next highest-ranked applicant that was not selected

for funding in the most recently conducted HOPE VI selection process or

combined with funding under an upcoming competitive selection process.

Failure to proceed with respect to obligated funds will be governed by

the terms of the Grant Agreement or ACC Amendment, as applicable. In

selecting PHAs for the redistribution of funds to one or more other

eligible PHAs, HUD will select a PHA from the most recently conducted

selection process for demolition funding.

VI. Applicability of Other Federal Requirements

A. Fair Housing Requirements

PHAs shall comply with the requirements of the Fair Housing Act (42

U.S.C. 3601-19) and the regulations in 24 CFR part 100; Executive Order

11063 (Equal Opportunity in Housing) and the regulations in 24 CFR part

107; the fair housing poster regulations in 24 CFR part 110; and Title

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

regulations in 24 CFR part 1.

B. Nondiscrimination on the Basis of Age or Handicap

PHAs shall comply with the prohibitions against discrimination on

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

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

prohibitions against discrimination against, and reasonable

modification, accommodation, and accessibility requirements for,

handicapped individuals under section 504 of the Rehabilitation Act of

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

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

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

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

in 24 CFR part 40.

C. Employment Opportunities

PHAs shall comply with the requirements of section 3 of the Housing

and Urban Development Act of 1968 (12 U.S.C. 1701u) (Employment

Opportunities for Lower Income Persons in Connection with Assisted

Projects) and the regulations in 24 CFR part 135.

D. Minority and Women's Business Enterprises

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

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

these orders, PHAs shall make efforts to encourage the use of minority

and women's business enterprises in connection with funded activities.

E. OMB Circulars

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

87 (Cost Principles Applicable to Grants, Contracts and Other

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

(Administrative Requirements for Grants and Cooperative Agreements to

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

apply to the award, acceptance, and use of assistance under this NOFA

by PHAs, and to the remedies for noncompliance, except when

inconsistent with the provisions of the 1997 Appropriations Act, other

Federal statutes, or this NOFA. PHAs also are subject to the audit

requirements of OMB Circular A-128, implemented at 24 CFR part 44.

Copies of OMB Circulars may be obtained from E.O.P. Publications, Room

2200, New Executive Office Building, Washington, DC 20503, telephone

(202) 395-7332 (this is not a toll-free number). There is a limit of

two free copies.

F. Debarred or Suspended Contractors

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

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

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

debarment, suspension, or placement in ineligibility status.

G. Conflict of Interest

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

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

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

exercised any functions or responsibilities with respect to activities

assisted under this grant, or who is in a position to participate in a

decision making process or gain inside information with regard to such

activities, may obtain a financial interest or benefit from the

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

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

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

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

H. Wage Rates

Davis-Bacon wage rates apply to demolition followed by construction

on the site. HUD-determined wage rates apply to demolition followed

only by filling in the site and establishing a lawn.

I. Lead-Based Paint Testing and Abatement

PHAs shall comply with the Lead-Based Paint Poisoning Prevention

Act (42 U.S.C. 4821, et seq.) and 24 CFR part 35; 24 CFR part 965,

subpart H; and 24 CFR 968.110(k). Tenant-based assistance provided to

PHAs under this program will be subject to 24 CFR 982.401 and 24 CFR

part 35. Unless otherwise provided, PHAs shall be responsible for

testing and abatement activities before demolition as appropriate to

meet state and Federal requirements.

[[Page 30408]]

J. Relocation

The requirements of the Uniform Relocation Assistance and Real

Property Acquisition Policies Act of 1970 and government-wide

implementing regulations at 49 CFR part 24 apply to funding under this

NOFA.

VII. Other Matters

A. Paperwork Reduction Act

The information collection requirements of this NOFA related to the

HOPE VI program (including Forms HUD-52825-A and HUD-52820-A required

by Sections K.1.a and M.3 of the NOFA) have been submitted to the

Office of Management and Budget (OMB) for review under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control number,

when assigned, will be announced by separate notice in the Federal

Register. The information collection requirements of this NOFA related

to the demolition approval have been approved by OMB and assigned

approval number 2577-0075, which expires on March 31, 1998. 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 970, which have

been published previously in the Federal Register. 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). The environmental review provisions of 24 CFR

part 970 are found in Sec. 970.4.

C. Federalism Impact

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

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

will not have substantial, direct effects on States 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 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 (HUD Reform Act) and the final rule codified at 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,

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:

1. Documentation and Public Access

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.

2. Disclosures

HUD will make available to the public for five years all applicant

disclosure reports (Form HUD-2880) submitted in connection with this

NOFA. Update reports (also Form HUD-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.

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

limited by part 4 from providing advance information to any person

(other than an authorized employee of HUD) concerning funding

decisions, or from otherwise giving any applicant an unfair competitive

advantage. Persons who apply for assistance in this competition should

confine their inquiries to the subject areas permitted under 24 CFR

part 4.

Applicants or employees who have ethics-related questions should

contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-

free number.) For HUD employees who have specific program questions,

such as whether particular subject matter can be discussed with persons

outside HUD, the employee should contact the appropriate Field Counsel

or Headquarters Counsel for the program to which the question pertains.

F. Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the

disclosure requirements and prohibitions of section 319 of the

Department of Interior and Related Agencies Appropriations Act for

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

implementing regulations in 24 CFR part 87. These authorities prohibit

recipients of federal contracts, grants, or loans from using

appropriated funds for lobbying the Executive or Legislative branches

of the Federal Government in connection with a specific contract,

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

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

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

applicants, recipients, and subrecipients of assistance exceeding

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

on lobbying activities in connection with the assistance.

If the amount applied for is greater than $100,000, the

certification is required at the time of application for funds is made

that federally appropriated funds are not being or have not been used

in violation of the Byrd Amendment. If the amount applied for is

greater than $100,000 and the PHA has made or has agreed to make any

payment using nonappropriated funds for lobbying activity, as described

in 24 CFR part 87 (Byrd Amendment), the submission also must include

the SF-LLL, Disclosure of Lobbying Activities. The PHA determines if

the submission of the SF-LLL is applicable.

G. Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance program number is

14.864.

[[Page 30409]]

Dated: May 22, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and Indian Housing.

[FR Doc. 97-14384 Filed 6-2-97; 8:45 am]

BILLING CODE 4210-33-P