NOFA for Rental Assistance for Persons With Disabilities in Support of Designated Housing Allocation Plans and Establishment of Preferences for Certain Section 8 Developments

SUMMARY: This notice announces the availability of up to $25 million in

one-year budget authority for approximately 4,200 Section 8 rental

vouchers and certificates for non-elderly persons with disabilities in

support of designated housing allocation plans, and up to $25 million

in one-year budget authority for approximately 4,200 Section 8 rental

vouchers and certificates for non-elderly disabled families who are not

currently receiving housing assistance in certain Section 8 project-

based developments due to the owners establishing preferences for the

admission of elderly families. The rental vouchers and certificates

will enable persons with disabilities to rent affordable housing.

Housing agencies (HAs), including Indian Housing Authorities (IHA),

are invited to respond to this NOFA for funding for rental vouchers and

certificates related to preferences for elderly admissions at certain

Section 8 project-based developments. PHAs are also invited to respond

to this NOFA for funding related to designated housing allocation

plans. IHAs, however, may not apply for funding related to designated

housing allocation plans, because the requirements of section 7 (42

U.S.C. 1437e) concerning designated housing allocation plans do not

apply to IHAs.

Paragraphs A and G of this NOFA address application related

information pertinent to preparing and submitting an application

related to designated housing allocation plans, or an application

related to certain Section 8 project-based developments. Information

provided in paragraphs B through F in this NOFA relate solely to

applications pertaining to certain Section 8 project-based

developments.

DATES: There are no application deadlines for applications submitted in

response to this NOFA's requirements pertinent to either designated

housing allocation plan, or certain Section 8 developments.

Applications may be submitted immediately following the publication of

this NOFA and will continue to be accepted through FY 1998 and beyond

or until further notice from HUD that all funds have been obligated.

HUD will not accept application materials sent via facsimile (FAX)

transmission.

ADDRESSES: a. Allocation Plans. The addresses for applications

submitted for Section 8 rental vouchers or certificates in connection

with allocation plans: HUD Headquarters, Office of Public and Assisted

Housing Operations, Room 4206, 451 Seventh Street, S.W., Washington,

D.C., 20410; and the local HUD State or Area Office, Attention:

Director, Office of Public Housing, are the official places of receipt.

A PHA's application (see paragraph C. of NOFA FR-4085-N-01 (61 FR

56090, October 30, 1996), captioned Application Submission

Requirements, regarding the multiple components that must comprise an

HA's application) should be submitted concurrently to both offices.

b. Certain Section 8 Projects. The addresses for applications

submitted for Section 8 rental vouchers or certificates in connection

with Section 8 project-based developments: HUD Headquarters, Operations

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

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

Public Housing, is the official place of receipt, except for

applications from IHAs. HUD's local Office of Native American Programs,

Attention: Administrator, Office of Native American Programs, is the

official place of receipt for IHA applications. The application should

be submitted concurrently to HUD Headquarters and the appropriate local

HUD Office.

For ease of reference, the term ``HUD Office'' is subsequently used

throughout this NOFA to mean the local HUD State Office, local HUD Area

Office, and local HUD Office of Native American Programs.

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

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

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

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

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

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

(this is a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The Section 8 information collection requirements contained in this

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

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

3520), and assigned OMB control numbers 2577-0169 and 2577-0192. An

agency may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless the collection displays

a valid control number.

Promoting Comprehensive Approaches to Housing and Community

Development

HUD is interested in promoting comprehensive, coordinated

approaches to housing and community development. Economic development,

community development, public housing revitalization, homeownership,

assisted housing for special needs populations, supportive services,

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

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

the Consolidated Planning process designed to help communities

undertake such approaches.

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

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

or are expected to be published in this fiscal year. 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.

Elsewhere in today's Federal Register, the Department has published

a related NOFA concerning Mainstream Housing Opportunities for Persons

with Disabilities. On April 8, 1997, the Department published in the

Federal Register the NOFA for Continuum of Care Assistance. Other

related NOFAs the Department expects to publish in the Federal Register

within the next few weeks include: the Family Unification NOFA, the

Housing Opportunities for Persons with Aids NOFA, the Supportive

Housing for the Elderly NOFA, and the Supportive Housing for Persons

with Disabilities NOFA.

To foster comprehensive, coordinated approaches by communities, the

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

applicants of HUD's NOFA activity. In addition, a complete schedule of

NOFAs to be

[[Page 17673]]

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 to better coordinate HUD's

NOFAs are being considered for FY 1998.

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

please contact the community development office of your municipal

government.

Family Self-Sufficiency (FSS) Program Requirement

Unless specifically exempted by HUD, all rental voucher or rental

certificate funding (except funding for renewals or amendments)

reserved in FY '97, including funding reserved as a result of this

NOFA, will be used to establish or increase the minimum size of an HA's

FSS program.

A. Authority and Funding

(1) Authority.

Legislative authority to provide Section 8 assistance in support of

allocation plans to designate public housing for occupancy by elderly

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

families only (covering the $25 million available under this NOFA) is

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

HUD's Fiscal Year 1997 Appropriations Act, Public Law 104-204, approved

September 26, 1996 (Appropriations Act), contains language authorizing

the use of Section 8 rental voucher and certificate funding for housing

agencies to implement allocation plans approved by the Secretary for

designated housing. HUD's 1997 Appropriations Act also contains

language authorizing the use of Section 8 rental vouchers and

certificates by HAs for non-elderly disabled families who are not

receiving housing assistance in certain Section 8 project-based

developments, in accordance with Section 651 of the Housing and

Community Development Act of 1992 where the owners have elected to

establish preferences for elderly families (covering the remaining $25

million of the total of $50 million available under this NOFA).

(2) Application Funding

a. Allocation Plans. HUD will award funding for rental vouchers or

certificates to PHAs that submit an allocation plan to designate public

housing for occupancy by elderly families only, disabled families only,

or disabled and elderly families only, and that also administer a

Section 8 rental certificate or rental voucher program.

The $25 million in funding announced in this NOFA, for Section 8

rental vouchers and certificates for persons with disabilities in

support of designated housing allocation plans, is in addition to the

$78.6 million in funding previously made available by the NOFA for

Rental Assistance for Persons With Disabilities In Support of

Designated Housing Allocation Plans (NOFA FR-4085-N-01) published at 61

FR 56090 on October 30, 1996.

The following requirements of NOFA FR-4085-N-01, except as

expressly modified by this NOFA, apply to all applications received

after the date of publication of this NOFA, including applications

funded from balances remaining from the $78.6 million initially made

available by the NOFA FR-4085-N-01:

Section A.(3) Limit on Rental Assistance Requested;

Section a.(4) Guidelines, except see this NOFA for turnover and HA

Responsibilities;

Section C. Application Submission Requirements. Additional

submission requirements include:

The maximum number of rental vouchers or certificates that

an HA may apply for related to allocation plans under this NOFA and

NOFA FR-4085-N-01 is limited to 200. The PHA must indicate whether it

will accept a reduction in the number of rental vouchers or

certificates, and must state the minimum number of rental vouchers or

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

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

rental vouchers or certificates requested.

Also, any PHA wishing to rely on an allocation plan

previously approved by HUD (i.e., not submitted as part of a PHA's

application in response to NOFA FR-4085-N-01) will be required to

resubmit the HUD-approved allocation plan as part of its application,

along with updated needs data indicating why the PHA does not have the

appropriate resources to carry out the previously approved or submitted

plan, identifying the new resources (Section 8 rental vouchers or

certificates) needed for persons with disabilities and disabled

families, and addressing the housing needs in its comprehensive plan.

Applicants who choose to apply must submit an allocation

plan in conformity with the requirements in section 10(a) of the

Housing Opportunity Program Extension Act of 1996, Public Law 104-120,

approved March 28, 1996, as explained in Notice PIH 97-12 (HA),

Requirements for Designation of Public Housing Projects.

Section D. Correction of Deficient Applications. Section

D.(2)(b)(viii) lease-up rate threshold does not apply to applications

processed under this NOFA. The statutorily-required three month delay

in the reissuance of turnover rental vouchers and certificates has had

an adverse impact on the lease-up rate of HAs, which makes it unfair to

apply this threshold; and

Section E. Application Selection Process, except section E.(2),

Funding. HUD intends to fund all approvable applications for designated

housing allocation plans on a first-come, first-served basis (not to

exceed a maximum of 200 rental vouchers or certificates for any

individual application). Applications will be funded for the total

number of units requested by the PHA and approved by the HUD Office

(not to exceed 200 units) in accordance with the NOFA. However, when

remaining budget authority is insufficient to fund the last selected

PHA application in full, HUD Headquarters will fund that application to

the extent of the funding available unless the PHA's application

indicates it will only accept a higher number of units. In that event,

the next selected application shall be one which has indicated a

willingness to accept the lesser amount of funding for units available.

The $25 million made available by this NOFA is one-year budget

authority which will support approximately 4,200 rental vouchers and

certificates in connection with approvable PHA allocation plans. The

funding under this NOFA will be obligated only after the $58.3 million

of five-year budget authority and the $20.3 million of two-year budget

authority provided under NOFA FR-4085-N-01 are obligated. The rental

vouchers and certificates will assist PHAs in providing sufficient

alternative resources to meet the housing needs of those persons with

disabilities who would have been housed by the PHA if occupancy in the

designated public housing project were not restricted to elderly

households and assist PHAs that wish to continue to designate their

buildings as ``mixed elderly and disabled buildings'' but can

demonstrate a need for alternative resources for persons with

disabilities that is consistent with the jurisdiction's Consolidated

Plan and the low-income housing needs of the jurisdiction.

b. Certain Section 8 Projects. HUD also will award $25 million in

one-year budget authority for approximately 4,200 rental vouchers and

certificates to HAs that submit an application identifying the number

of non-elderly disabled families who are not receiving housing

assistance in certain Section 8

[[Page 17674]]

project-based developments where the owners have elected to establish

preferences for elderly families. HUD intends to fund all approvable

applications for these funds on a first-come, first-served basis.

c. Redistribution of Funds. In the event that approvable

applications are received for more funding than the $25 million being

made available in this NOFA related to certain Section 8 projects,

funds will be transferred from the $25 million made available under

this NOFA for applications related to allocation plans. In the event

that approvable applications are received for more than the combined

funding made available under this NOFA and NOFA FR-4085-N-01 for

applications related to allocation plans, funds will be transferred

from the $25 million being made available in this NOFA related to

certain Section 8 projects.

d. Turnover. When a rental voucher or rental certificate under this

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

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

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

used only for another individual or family eligible for assistance

under this program for five years, subject to appropriations for

renewal funding, from the date the funding for the rental assistance

was added to the ACC.

(e) HA Responsibilities:

In addition to HA responsibilities under the Section 8 programs and

under HUD regulations for nondiscrimination based on disability (24 CFR

8.28) and to affirmatively further fair housing, HAs that receive

rental voucher or certificate funding must:

(i) Where requested by the individual, assist program participants

to gain access to supportive services available within the community

but not require eligible applicants or participants to accept

supportive services as a condition of participation or continued

occupancy in the program;

(ii) Identify public and private funding sources to assist

participants in covering the costs of modifications that need to be

made to their units needed as a reasonable accommodation for their

disabilities;

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

program other housing opportunities, or otherwise restrict access to HA

programs to eligible applicants who choose not to participate; and

(iv) Provide assistance to increase access by program participants

to housing units in a variety of neighborhoods (including areas with

low poverty concentrations) and to locate and obtain a unit suited to

their needs (Section 8 search assistance).

B. Background, Purpose and Substantive Description for Rental Vouchers

and Certificates Pertinent to Certain Section 8 Project-Based

Developments

(1) Background

HUD's Fiscal Year 1997 Appropriations Act provided that funding for

Section 8 rental vouchers and certificates would be made available to

nonelderly disabled families affected by the establishment of

preferences in accordance with Section 651 of the Housing and Community

Development Act of 1992 (42 U.S.C. 13611). Section 651 of the 1992 Act

allowed owners of the following Section 8 developments (limited to only

such developments originally designed primarily for occupancy by

elderly families) to provide preferences to elderly families in

selecting tenants for available assisted units in those projects:

(a) Section 8 New Construction Program, 24 CFR Part 880;

(b) Section 8 Substantial Rehabilitation Program, 24 CFR Part 881;

(c) State Housing Agencies Program (insofar as involving new

construction and substantial rehabilitation), 24 CFR Part 883;

(d) New Construction Set-Aside for Section 515 Rural Rental Housing

Projects Program, 24 CFR Part 884; and

(e) Section 8 Housing Assistance Program for the Disposition of

HUD-Owned Projects (insofar as involving substantial rehabilitation),

24 CFR Part 886, subpart C.

(2) Purpose

The rental vouchers and certificates that HAs may apply for under

this NOFA will assist these agencies in providing sufficient

alternative resources to meet the housing needs of those non-elderly

disabled families who would have been housed if the owners of the

Section 8 project-based developments identified in paragraph B.(1)

above had not elected to provide preferences to elderly families in

selecting tenants for vacancies in assisted units in those

developments.

(3) Limit on Rental Assistance Requested

An HA may apply only for the number of units needed to house those

non-elderly disabled families who are on the waiting list of an owner

of a Section 8 project-based development, identified in paragraph B.(1)

above where the owner elected to provide preferences to elderly

families and to house other non-elderly disabled families residing in

the community who would qualify for one- or zero-bedroom units.

(4) Guidelines

(a) Definitions

Elderly Family. A Family whose head of household, spouse, or sole

member is 62 years or older.

Non-elderly Disabled Family. A family who is not elderly, and whose

head, spouse, or sole member is a person with disabilities. The term

``non-elderly disabled family'' may include two or more such persons

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

disabilities living with one or more persons who are determined to be

essential to the care and well-being of the person or persons with

disabilities.

Person with Disabilities. A person who:

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

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

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

impairment that:

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

(ii) Substantially impedes his or her ability to live

independently; and

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

more suitable housing conditions, or

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

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

6001(5)).

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

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

conditions arising from the etiologic agent for acquired

immunodeficiency syndrome (HIV).

(b) Eligible HAs

HAs that submit an application for Section 8 rental vouchers or

certificates reflective of the need for housing by non-elderly disabled

families (in connection with the establishment of preferences by owners

for the admission of elderly families to certain Section 8 project-

based developments), and also administer a Section 8 rental certificate

and/or rental voucher program.

Some HAs currently administering the Section 8 rental certificate

and voucher programs have, at the time of publication of this NOFA,

major program management findings that are open and unresolved or other

significant

[[Page 17675]]

program compliance problems (e.g., HA has not implemented mandatory FSS

Program). HUD will not accept applications for funding from these HAs

as contract administrators if, on the application deadline, the

findings are not closed to HUD's satisfaction. If these HAs want to

apply under this NOFA, the HA must submit an application that

designates another housing agency, non-profit agency, or contractor

that is acceptable to HUD and includes an agreement with the other

housing agency or contractor to administer the new funding increment on

behalf of the HA. The Office of Public Housing, for PHAs, and the

Office of Native American Programs, for IHAs, in the local HUD Office

will notify immediately after publication of this NOFA, those PHAs and

IHAs that are not eligible to apply. Applications submitted by these

HAs without an agreement from another housing agency or contractor,

approved by HUD, to serve as contract administrator will be rejected.

(c) Eligible Participants

Eligible participants include non-elderly disabled families who

were on the waiting list (at the time of application) of a covered

development listed in paragraph B.(1), where the owner had exercised a

preference for the admission of elderly families when the HA received

the names of these families from the management of this development(s)

for purposes of requesting either Section 8 rental certificates or

vouchers in response to this NOFA. These non-elderly disabled families

need not be listed on the HA's Section 8 waiting list in order to be

offered and receive Section 8 rental assistance; i.e., it is sufficient

that their names are on the waiting list for a covered Section 8

development at the time their names are provided to the HA by the

owner. Eligible participants also include other non-elderly disabled

families residing in the community who would qualify for a one- or

zero-bedroom unit.

(d) Rental Voucher and Certificate Assistance

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

assistance in accordance with HUD regulations governing the Section 8

rental voucher and certificate programs.

(ii) Section 8 admission requirements. Section 8 assistance must be

provided to eligible applicants in conformity with applicable rules

governing the Section 8 program, and in accordance with the HA's

administrative plan.

(e) Turnover

When a rental voucher or rental certificate issued in support of

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

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

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

used only for another individual or family eligible for assistance in

support of the program for five years, subject to appropriations for

renewal funding, from the date the funding for the rental assistance

was added to the ACC.

(f) HA Responsibilities

In addition to HA responsibilities under the Section 8 programs and

under HUD regulations for nondiscrimination based on disability (24 CFR

8.28) and to affirmatively further fair housing, HAs that receive

rental voucher or certificate funding must:

(i) Where requested by the individual, assist program participants

to gain access to supportive services available within the community

but not require eligible applicants or participants to accept

supportive services as a condition of participation or continued

occupancy in the program;

(ii) Identify public and private funding sources to assist

participants in covering the costs of modifications that need to be

made to their units needed as a reasonable accommodation for their

disabilities;

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

program other housing opportunities, or otherwise restrict access to HA

programs to eligible applicants who choose not to participate; and

(iv) Provide assistance to increase access by program participants

to housing units in a variety of neighborhoods (including areas with

low poverty concentrations) and to locate and obtain a unit suited to

their needs (Section 8 search assistance).

C. Allocation Amount for Rental Vouchers and Certificates Pertinent to

Certain Section 8 Project-Based Developments

This NOFA announces the availability of up to $25 million

(approximately) of one-year budget authority that will support about

4,200 Section 8 rental vouchers or certificates. HAs are provided with

the opportunity to apply for rental vouchers or certificates in

conjunction with the submission of an application to provide rental

assistance to non-elderly disabled families from the waiting list of

certain Section 8 project-based developments (see paragraph B.(1))

where the developments were originally designed primarily for the

occupancy of elderly families, and where the owners elected to provide

preferences to elderly families in selecting tenants for available

assisted units in the developments and to house other non-elderly

disabled families residing in the community who would qualify for one-

or zero-bedroom units.

D. Application Submission Requirements for Rental Vouchers and

Certificates Pertinent to Certain Section 8 Project-Based Developments

(1) Form HUD-52515

All HAs must complete form HUD-52515, Funding Application, for the

Section 8 rental certificate and rental voucher programs (dated January

1996). This form includes all necessary certifications for Fair

Housing, Drug Free Workplace, and Lobbying Activities; therefore, HAs

can complete and sign the new form HUD-52515 to meet the requirements

of these certifications. An application must include the information in

Section C, Average Monthly Adjusted Income, of form HUD-52515 in order

for HUD to calculate the amount of Section 8 budget authority necessary

to fund the requested number of units. Copies of form HUD-52515 may be

obtained from the local HUD Office or may be downloaded from the HUD

Home Page on the Internet's world wide web (http://www.hud.gov).

(2) Local Government Comments

Section 213 of the Housing and Community Development Act of 1974

(42 U.S.C. 1439) requires that HUD independently determine that there

is a need for the housing assistance requested in applications and

solicit and consider comments relevant to this determination from the

chief executive officer of the unit of general local government. The

HUD Office will obtain section 213 comments from the unit of general

local government in accordance with 24 CFR part 791, subpart C,

Applications for Housing Assistance in Areas Without Housing Assistance

Plans. Comments submitted by the unit of general local government must

be considered before an application can be approved.

For purposes of expediting the application process, the HA needs to

encourage the chief executive officer of the unit of general local

government to submit a letter with the application commenting on the

HA's application in accordance with section 213. Because HUD cannot

approve an application until the 30-day comment period is

[[Page 17676]]

closed, the section 213 letter should not only comment on the

application, but also state that HUD may consider the letter to be the

final comments and that no additional comments will be forthcoming from

the unit of general local government.

(3) Letter of Intent and Narrative

All the items in this section must be included in the application

submitted to the HUD Office. The HA must state in its cover letter to

the application whether it will accept a reduction in the number of

rental certificates or rental vouchers and the minimum number of rental

certificates or rental vouchers it will accept, since the funding is

limited and HUD may only have enough funds to approve a smaller amount

than the number of rental certificates or rental vouchers requested.

(4) Certification, Waiting List Information and Other Non-Elderly

Disabled Families Residing in the Community

In order to support the requested number of rental vouchers or

certificates being requested on the form HUD-52515, the HA's

application must include a certification statement from the owner of a

covered development(s) (see paragraph B.(1)), that the development is a

covered development, it was developed primarily for occupancy by the

elderly, the owner has established preferences for the admission of

elderly families and indicating the number of non-elderly disabled

families on the Owner's waiting list for the development(s). HAs may

contact the local HUD State or Area Office's Director, Multifamily

Division, to get the addresses and telephone numbers of the

developments falling under the programs listed in paragraph B.(1). The

HA will then need to contact the management/owners of these

developments within their jurisdiction to determine, in each case, if

the development was originally designed primarily for occupancy by

elderly families and if the owner has established a preference for the

admission of elderly families in accordance with the applicable program

regulation.

Owners of covered developments are encouraged to cooperate with HAs

in a timely manner in making these determinations and (if applicable)

in providing the certification that their development is a covered

development (for example: a development under the Section 8 New

Construction Program), and that it was developed primarily for

occupancy by the elderly, and that the owner has established

preferences for the admission of elderly families. The owner will also

concurrently provide the HA with names, addresses and telephone numbers

of those families on the development's waiting list that are non-

elderly disabled families.

HAs must also submit information supportive of the number of other

non-elderly disabled families residing in the community who would

qualify for one-bedroom or zero-bedroom units (not on the waiting lists

of covered developments).

E. Corrections to Deficient Applications for Section 8 Rental Vouchers

and Certificates Pertinent to Certain Section 8 Project-Based

Developments

(1) Acceptable Applications

The local HUD Office will initially screen all applications and

notify HAs of deficiencies by letter within 7 calendar days. If an

application has deficiencies, the HA will have 14 calendar days from

the date of the issuance of the HUD notification letter to submit the

missing or corrected information to the HUD Office before the

application can be considered for further processing by HUD. All HAs

must submit corrections within 14 calendar days from the date of the

HUD Office letter notifying the applicant of any such deficiency.

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

appropriate HUD Office), of the 14th calendar day of the correction

period will not be accepted and the application will be rejected as

incomplete.

(2) Unacceptable Applications

(a) After the 14-calendar day deficiency correction period, the HUD

Office will immediately notify any HA that submitted an application

that the local HUD Office determines is not acceptable for processing.

The HUD Office notification of rejection letter to the HA must state

the basis for the decision.

(b) Applications for Section 8 rental assistance that fall into any

of the following categories will not be processed:

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

by the Department of Justice or there is a pending administrative

action for civil rights violations instituted by HUD (including a

charge of discrimination under the Fair Housing Act).

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

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

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

HUD-approved resident selection and assignment plan or compliance

agreement designed to correct the areas of noncompliance.

(iii) There are outstanding findings of noncompliance with civil

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

formal administrative proceedings, or the Secretary has issued a charge

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

is operating under a conciliation or compliance agreement designed to

correct the areas of noncompliance.

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

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

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

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

of 1973 and HUD regulations (24 CFR 8.57).

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

audit findings, Fair Housing and Equal Opportunity monitoring and

compliance review findings, or HUD management review findings for its

rental voucher or rental certificate programs. HA has serious

underutilization of rental vouchers or certificates not attributable to

the three month statutory delay for the reissuance of rental vouchers

and certificates. The only exception to this category is if the HA has

been identified under the policy established in section B.(4)(b) of

this NOFA and the HA makes application with a designated contract

administrator.

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

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

additional increment of rental vouchers or rental certificates.

(vii) An HA application that does not comply with the requirements

of 24 CFR 982.102 and this NOFA, after the expiration of the 14-

calendar day technical deficiency correction period will be rejected

from processing.

F. Application Selection Process for Section 8 Rental Vouchers and

Certificates Pertinent to Certain Section 8 Project-Based Developments

(1) HUD Office Review

Upon receipt, the Office of Public Housing in the HUD Office will

screen HA applications and stop processing any applications found

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

If the HUD Office determines that the application is approvable, it

will notify HUD Headquarters, Attention: Gerald

[[Page 17677]]

Benoit, Director, Operations Division, Room 4220, 451 Seventh St.,

S.W., Washington, D.C. 20410, that it is recommending that the

application be funded. Headquarters shall be notified by the HUD Office

within 30 days of the date of its receipt of the HA's application in

response to this NOFA.

(2) Funding

Headquarters will fund, on a first-come, first-served basis, all

applications determined approvable by HUD Headquarters and for which

the Section 8 application is recommended for approval by the HUD

Office. The ``first-come'' status of each HA's application shall be

based on the date and time the application (concurrently submitted to

HUD Headquarters and the local HUD Office--see paragraph b, Certain

Section 8 Projects, under the paragraph entitled Addresses) is received

in HUD Headquarters. As HAs are selected, the cost of funding the

applications will be subtracted from the funds available. Any remaining

funds will be added to those funds for use in funding applications

related to designated housing allocation plans.

When remaining budget authority is insufficient to fund the last

selected HA application in full, HUD Headquarters will fund that

application to the extent of the funding available, unless the HA's

application indicates it will only accept a higher number of units. In

that event, the next selected application shall be one which has

indicated a willingness to accept the lesser amount of funding for

units available.

(3) Program Type

If an HA's application specifically requests funding for either

rental vouchers or rental certificates, and funding for the specified

program is not available, HUD will award the available form of

assistance, notwithstanding the program type specified in the HA

application.

G. Other Matters

Catalog of Federal Domestic Assistance

The Federal Domestic Assistance numbers for this program are:

14.855 and 14.857.

Environmental Impact

This NOFA provides funding under, and does not alter environmental

requirements of, 24 CFR part 982. This NOFA provides funding only for

the tenant-based assistance, which is a categorical exclusion not

subject to the individual environmental clearance requirements cited in

24 CFR 50.4. The regulations referred to above, therefore, do not

contain environmental review requirements. Accordingly, under 24 CFR

50.19(c)(5), this NOFA is categorically excluded from environmental

review requirements under the National Environmental Policy Act of 1969

(42 U.S.C. 4321).

Federalism Impact

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

of Executive Order 12612, Federalism, has determined that the policies

contained in this notice will not have substantial direct effect on

States or their political subdivisions, or the relationship between the

Federal Government and the States, or on the distribution of power and

responsibilities among the various levels of government. As a result,

the notice is not subject to review under the Order. This notice is a

funding notice and does not substantially alter the established roles

of the Department, the States, and local governments, including HAs.

Impact on the Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this notice does not have

potential for significant impact on family formation, maintenance, and

general well-being within the meaning of the Executive Order and, thus,

is not subject to review under the Order. This is a funding notice and

does not alter program requirements concerning family eligibility.

Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24

CFR part 4, subpart A, published on April 1, 1996 (61 FR 1448), contain

a number of provisions that are designed to ensure greater

accountability and integrity in the provision of certain types of

assistance administered by HUD. On January 14, 1992, HUD published, at

57 FR 1942, a notice that also provides information on the

implementation of section 102. The documentation, public access, and

disclosure requirements of section 102 are applicable to assistance

awarded under this NOFA as follows:

a. Documentation and public access requirements. HUD will ensure

that documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

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

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

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

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

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

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

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis.

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

years all applicant disclosure reports (HUD Form 2880) submitted in

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

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

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

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

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

regulations at 24 CFR part 15.

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

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

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

to the funding competition announced today. These requirements continue

to apply until the announcement of the selection of successful

applicants. HUD employees involved in the review of applications and in

the making of funding decisions are limited by section 103 from

providing advance information to any person (other than an authorized

employee of HUD) concerning funding decisions, or from otherwise giving

any applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted under section 103 and subpart B of 24 CFR part

4.

Applicants or employees who have ethics related questions should

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

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

such as whether particular subject matter can be discussed with persons

outside HUD, the employee should contact the appropriate Field Office

Counsel, or Headquarters counsel for the program to which the question

pertains.

Prohibition Against Lobbying Activities. 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. Section 1352 (the Byrd Amendment) and to

the provisions of the Lobbying Disclosure Act of 1995,

[[Page 17678]]

Public Law 104-65 (December 19, 1995).

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

Part 87, prohibits applicants for 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 any payments or agreement to make payments of

nonappropriated funds for these purposes have been made, a form SF-LLL

disclosing such payments must be submitted. The certification and the

SF-LLL are included in the application package.

The Lobbying Disclosure Act of 1995, Public Law 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.

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

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

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

the statute's coverage.

Dated: April 7, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and Indian Housing.

[FR Doc. 97-9334 Filed 4-9-97; 8:45 am]

BILLING CODE 4210-33-P