Notice of Funding Availability (NOFA) for the Revitalization of Severely Distressed Public Housing (HOPE VI); Fiscal Year 1997
Federal RegisterApr 14, 1997
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4175-N-01]
Notice of Funding Availability (NOFA) for the Revitalization of
Severely Distressed Public Housing (HOPE VI); Fiscal Year 1997
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of funding availability (NOFA) for Fiscal Year (FY)
1997.
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SUMMARY: This notice announces the availability of approximately $447.5
million in funding for the Revitalization of Severely Distressed Public
Housing, hereafter referred to as the HOPE VI program, as provided in
the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1997. The 1997
Appropriations Act continued funding of the HOPE VI program for the
purpose of enabling the demolition of obsolete public housing
developments or portions thereof, the revitalization (where
appropriate) of sites (including remaining public housing units) on
which such developments are located, replacement housing that will
avoid or lessen concentrations of very low-income families, Section 8
tenant-based assistance, and for providing replacement housing and
assisting tenants to be displaced by the demolition. The HOPE VI
program will fund demolition, the capital costs of reconstruction,
rehabilitation and other physical improvements, the provision of
replacement housing, management improvements, resident self-sufficiency
programs, and tenant-based assistance.
This NOFA contains information on eligible applicants, program
requirements, evaluation factors, and application submission
requirements, solely for the funding of revitalization and replacement
programs with or without demolition. Information about the funding for
Section 8 tenant-based assistance, and for demolition without
revitalization, will be provided by separate notices.
DATES: Applications must be received at HUD Headquarters and the Field
Office on or before 4 p.m. eastern time, except as expressly provided
below, on July 18, 1997. The application deadline for each original
application delivered to HUD Headquarters is firm as to date and hour,
except as expressly provided herein. Public housing agencies (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 HUD Headquarters and
fully paid for, no later than 12 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 noon local
time on the day before it was due at HUD.
ADDRESSES: An original of the completed application must be received at
HUD Headquarters, 451 Seventh Street, SW, Room 4138, Washington, DC
20410, Attention: Director, Office of Public Housing Investments. Two
copies of the completed application must also be received at the
appropriate HUD Field Office. Applications may be hand-delivered or
mailed. HUD will not accept facsimile (fax), COD, or postage-due
applications.
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. HUD will also post frequently asked
questions and answers on the Home Page throughout the application
preparation period.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Continuing Objectives of, and Changes to, the HOPE VI Program
II. Substantive Description
A. Authority
B. Eligible Applicants
C. Definition of Obsolete Development
D. Fund Availability
E. Limitations on Grant Amount
F. Other Grant Limitations
G. Technical Assistance
H. Failure to Proceed
I. Total Development Costs
J. Site and Neighborhood Standards
K. Eligible Activities and Costs
III. Curable Technical Deficiencies
IV. Program Threshold Criteria
A. Obsolescence
B. Need for Funding
C. Lessen Concentration
D. Fair Housing
V. Application Evaluation Factors
A. Urgency of Need for Revitalization
B. Lessen Isolation of Low-Income Residents
C. Encourage Resident Self-Sufficiency
D. Property Management
E. Local Impact
F. Affirmatively Furthering Fair Housing
G. Community and Partnerships
H. Capability and Readiness
I. Efficient Utilization of Federal Funding
J. Feasibility and Sustainability
K. Proposal Coherence and Integrity
VI. Application Submission Requirements
A. Summary Statement of Plan and Objectives
B. Existing Conditions
C. Urgency of Need for Revitalization
D. Description of Physical Revitalization Plan
E. Applications for New Construction
F. Self-Sufficiency Component
G. Operation and Management Principles
H. Local Impact
I. Capability and Readiness
J. Community and Partnerships
K. Resources
L. Program Financing and Sustainability
M. Grant Limitations
N. Need for Funding
O. Section 8 Cost Comparison
P. Affirmatively Furthering Fair Housing
Q. Required Certifications
VII. Application Processing and Grant Administration
A. Application Evaluation
B. Reduction in Requested Grant Amount
C. Corrections to Deficient Applications
D. Notification of Funding Decisions
E. Grant Agreement/ACC Amendment
VIII. Applicability of Program Requirements
IX. Applicability of Other Federal Requirements
X. Findings and Certifications
I. Continuing Objectives of, and Changes to, the HOPE VI Program
In the Omnibus Consolidated Rescissions and Appropriations Act of
1996 (Pub. L. 104-134; approved April 26, 1996) (OCRA), Congress
continued efforts to deal with obsolete and severely distressed public
housing which had been previously funded under the name ``Urban
Revitalization Demonstration'' or ``URD,'' and popularly referred to as
``HOPE VI.'' OCRA made significant changes to HOPE VI by, among other
things, expanding eligibility to all PHAs and eliminating various
restrictive features
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of previous URD legislation. 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) eliminates certain mandated selection criteria
contained in OCRA and prohibits HUD from utilizing rating preferences
which grant competitive advantage in awards to settle litigation or pay
judgments. The 1997 Appropriations Act also provides that fiscal year
(FY) 1997 funds appropriated for this program shall not be used for any
purpose that is not authorized in the U.S. Housing Act of 1937, and the
HUD Appropriations Acts for fiscal years 1993, 1994, 1995, 1996, and
1997.
In the FY 1996 NOFA for the HOPE VI program (published on July 22,
1996 (61 FR 38024)), HUD identified certain elements of public housing
transformation as key to HOPE VI, and sought to select applications
which would further that transformation, as follows:
Changing the physical shape of public housing.
Establishing positive incentives.
Enforcing tough expectations.
Lessening concentrations of poverty.
Forging partnerships.
HUD believes that the FY 1996 funding process was successful in
selecting applicants likely to achieve radical transformations, from
some of the most obsolete and distressed projects in the entire
inventory to models of community revitalization. However, as the
program evolves it should also encompass appropriate revitalization
strategies at obsolete and distressed developments where revitalization
may be accomplished without extensive demolition, and more economical
rehabilitation strategies may be available.
HOPE VI was originally conceived as a demonstration program which
would promote fundamental changes in the way PHAs developed and
administered public housing, and in the way HUD related to those PHAs.
It has succeeded remarkably in those respects. Now, however, there is a
reduced need for HUD to ``jump start'' demolition and revitalization.
With major efforts underway in all the largest and most troubled PHAs,
some of which may be at their capacity for simultaneous development
projects, HUD may appropriately turn to a broader group of
developments. HOPE VI is the sole source of substantial and
concentrated capital assistance to PHAs of all sizes and
characteristics whose level of formula modernization funding cannot
support revitalization or major reconfiguration of an obsolete
development. Capable authorities which nevertheless have inadequate
funds to prevent properties from becoming distressed should not be
excluded from HOPE VI funding. This was certainly one purpose of
Congress when, in FY 1996, the eligibility restrictions to the program
were eliminated.
Notwithstanding this widening focus, HOPE VI is not returning to
the Major Reconstruction of Obsolete Projects (MROP) program. The
essential requirement of HOPE VI remains that each revitalization
effort promise a transformation of the physical site and the social
dynamics of life for low-income residents at that site, or in any off-
site replacement housing.
Throughout the HOPE VI selection and grant administration
processes, HUD is placing even greater emphasis on plan designs,
program management structures, performance measures, and the timely
expenditure of grant funds, which will make public housing disciplined
to perform with similar efficiency as the private sector. HUD will
implement an aggressive approach to ensure quality and promptness in
the HOPE VI program. HUD will contract with one or more private program
and construction management entities to assure that HOPE VI development
activities are carried out in an expeditious and cost-effective manner
and that grantees are producing quality products. Each grantee will
have to demonstrate that its HOPE VI team is capable of administering a
major revitalization effort and that the team is ready to proceed
immediately upon receipt of the grant. Should a PHA fail to make this
demonstration to the satisfaction of HUD and its program oversight
manager, HUD will direct corrective actions as a condition of retaining
the grant. HUD's program oversight contractor will also represent HUD
in such on-site inspections as HUD deems necessary to assure quality
design and construction.
Each grantee will also be held to strict schedules and performance
measures. HUD will require grantees to execute construction contracts
within a specified period. Failure to obligate construction funds
within this timeframe will result in the withdrawal of grant funds.
Once the revitalization has commenced, each grantee will also be held
to interim performance goals and may be required to complete physical
activities within four years of execution of the grant agreement. HUD
will take into consideration those delays caused by factors beyond the
control of the grantee when enforcing these schedules. The precise
schedules and performance measures will be set forth in the HOPE VI
grant agreement.
HUD has also factored into the design of this FY 1997 NOFA
considerations relating to section 202 of OCRA (42 U.S.C. 1437l note)
known as the Mandatory Conversion Program. Congress there indicated
that the cost and effectiveness of revitalization should be compared
with those respective elements of tenant-based assistance. This is a
relevant inquiry, particularly in rationing the scarce resource of
revitalization dollars.
Finally, Congress has eliminated the FY 1996 statutory selection
criteria and has directed the elimination of other selection criteria
utilized by HUD in FY 1996.
For all these reasons, HUD has modified the FY 1996 NOFA. While the
overall performance goals remain those set forth in FY 1996, this FY
1997 NOFA has been revised to better select those applicants which can
most promptly and effectively use HOPE VI dollars to make a significant
positive change in the life of each resident and the life of the
neighborhood.
Demolition is not a required component of this FY 1997 HOPE VI
competition. HUD recognizes that the elimination of this requirement
and the broadening of the definition of obsolescence may encourage even
more applicants to apply than in the FY 1996 round. Applicants are
cautioned that the preparation of a serious HOPE VI application is
time-consuming and expensive and may generate local expectations which
cannot be met if funding is not awarded. Only a fraction of the FY 1996
applicants were funded. Changes in this year's NOFA are intended to
widen the definition of who may be assisted, but will not alter the
fact that only applicants with strong showings of need, capability,
vision, and impact will be selected. Potential applicants are
encouraged to conduct a thorough and realistic up-front analysis of
their chances before preparing an application.
Among the more significant revisions are the following:
HUD has determined to use a definition of ``obsolete''
derived from the MROP authorizing statute, with modifications for
program consistency with section 202 of OCRA and current practice.
This NOFA continues to use as a rating factor the relative
urgency of pursuing revitalization at each site. HUD has carefully
considered comments it has received to the effect that by expanding
program eligibility,
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Congress intended that all obsolete sites should be given equal
consideration and that local standards of distress should govern, not
national ones. HUD has concluded, however, based on statutory language
and context, that the aims of the HOPE VI program must continue to
include the elimination of the nation's most severely distressed
developments and immediate attention to those developments offering the
worst quality of life for their residents and neighbors. Nonetheless,
HUD has reformulated the relevant rating factor so as more clearly not
to reward PHAs whose bad management is creating or exacerbating
distress, nor penalize PHAs which may have managed to preserve
relatively decent living conditions even as distress grows imminent.
Moreover, an applicant whose needs are pressing, but not yet
overwhelming, may still receive funding based on a particularly strong
showing on other rating factors, while a PHA with an enormously
distressed site, but little vision or capacity will not be selected.
Grants will be limited in amount to applicable Total
Development Cost (TDC) limits, plus amounts for self-sufficiency and
for excess demolition costs, as more fully described in Section II.E.
below. While HUD recognizes that different PHAs face different
situations, and that a successful revitalization may require
expenditures in excess of cost limits, prior program experience has
established the difficulties in distinguishing among necessary,
optional, and excessive costs. The risk of inadvertently rewarding
excess or penalizing thrift increases where rating factors encourage
expansive visions of what will be accomplished. Given the flexibility
of modernization funding under current law, HUD believes it is fairer
to fund a predictable amount with HOPE VI dollars and allow PHAs to
provide or arrange for such additional funding as they may prudently
require. Demolition costs are allowed separately, however, because they
depend on the size and type of existing structures, and will not vary
with the ambition of the applicant.
An applicant's need for funding must be demonstrated as a
threshold matter, with reference to its overall capital needs and
resources.
A Section 8 cost comparison is included, and applicants
will be rated on the degree to which their proposed expenditure of
Federal funds exceeds that which would be incurred under a scenario of
demolition with Section 8 replacement. This factor, derived from
section 202 of OCRA and its implementing notice (published in the
Federal Register on September 26, 1996 (61 FR 50632)), will favor
applicants with cost-efficient strategies. The NOFA's methodology for
measuring this factor is essentially similar to that contained in the
section 202 notice, but is worded so as to apply more directly to, and
permit more exact comparisons between, fact patterns expected under
this NOFA.
HUD has not included an explicit requirement, found in HUD's
section 202 implementing notice, that applicants who ``fail'' the
Section 8 cost comparison demonstrate special circumstances why
revitalization is desirable. This FY 1997 HOPE VI NOFA as a whole
contains various threshold and evaluation criteria which, if satisfied,
constitute such special circumstances, and on which an applicant must
score highly to be selected for funding. A special section tracking the
language from the section 202 notice directly would be duplicative.
An applicant may target for revitalization a development
for which demolition has already commenced or occurred even if tenant-
based assistance for relocation or replacement has already been awarded
by HUD. HUD does not want to encourage authorities to preserve obsolete
or distressed housing, in hopes of securing HOPE VI assistance in the
future. A PHA which in good faith decided to demolish, in connection
with the FY 1996 funding round or otherwise, should not be penalized by
being excluded from this competition.
HUD has eliminated the categorization of PHAs by size, and
has set a grant(s) limit of $35,000,000 per authority. The FY 1996
results demonstrated that size categories were not necessary to obtain
a fair distribution, which occurred naturally under the rating system
used. Smaller authorities may have large obsolete developments, and
other factors in this year's NOFA will disfavor a PHA which requests an
inflated grant amount.
This NOFA takes into explicit consideration the extent to
which a proposal will affirmatively further fair housing. While this
objective flows directly from HOPE VI concepts of transformation and
revitalization, HUD wishes both to emphasize the importance to all
applicants of giving civil rights obligations explicit consideration,
and to discipline its own attention to this factor. HUD has also
emphasized the importance it attaches to carrying out the HOPE VI
program in ways that directly benefit persons with disabilities.
Developments constructed or rehabilitated with HOPE VI funds must meet
the accessibility requirements contained in various civil rights
statutes. In addition, HUD strongly encourages PHAs to develop housing
that is ``visitable'' by persons with mobility impairments. In view of
these priorities, HUD is asking applicants through various parts of
this NOFA to address these issues in their applications.
For FY 1997, Congress did not separately fund Section 8
tenant-based assistance for replacement housing, but included it within
the $550 million appropriated for HOPE VI. HUD will set aside, and
award through a separate process, funding for Section 8 tenant-based
assistance for replacement housing with respect to units which are to
be or have been demolished, but for which the PHAs are not seeking and
have not been awarded ``hard'' replacement funding. PHAs are strongly
encouraged to plan strategically and utilize Section 8 replacement to a
considerable degree.
HUD has set aside up to $30 million for demolition grants alone, a
reduction from FY 1996, and will also award these funds by a separate
process. Having utilized FY 1996 funding to address a number of
expensive demolition situations for which PHA funding was unavailable,
and having no indication as yet that section 202 of OCRA will generate
immediate demolition decisions in the absence of hard replacement
housing, HUD believes the lesser amount will suffice to address
critical demolitions which would otherwise be impossible, while
concentrating scarce funding on critical housing preservation and
reconstruction efforts.
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
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eligibility of applicants and activities, applicants may be able to
relate the activities proposed for funding under this NOFA to the
recent and upcoming NOFAs and to the community's Consolidated Plan.
The list of NOFAs related to housing revitalization that HUD
expects to publish in the Federal Register within the next few weeks
include the Comprehensive Improvement Assistance NOFA; the Lead-based
Paint Hazard Reduction NOFA, the Public Housing Demolition NOFA, and
the Notice of Funding for the Section 8 Rental Certificate and Voucher
Programs. Additionally, HUD's NOFA for the Community Outreach
Partnership Centers, published in the Federal Register on March 20,
1997 (62 FR 13506), included HOPE VI projects in the list of HUD
priority areas for which points will be awarded to an applicant whose
research and outreach agenda is related to a HUD priority area.
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.
II. 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. Eligible Applicants
PHAs that own or operate public housing units are eligible to
apply. Indian Housing Authorities are not eligible to apply.
C. Definition of Obsolete Development
For purposes of this competition, an ``obsolete'' public housing
development or portion thereof is defined as one:
1. (a) Which has design or marketability problems resulting in
vacancy of more than 10 percent of the units not due for funded, on-
schedule modernization; or (b) Which has an occupancy density or
building height that is significantly in excess of that which prevails
in the neighborhood in which the project is located, a bedroom
configuration that could be altered to better serve the needs of
families seeking occupancy in dwellings of the public housing agency,
significant security problems in and around the project, or significant
physical deterioration or inefficient energy and utility systems; and
2. For which the cost of redesign, rehabilitation or reconstruction
(including any costs for lead-based paint abatement activities) exceeds
70 percent of the total development cost limits for new construction of
similar units in the area.
D. Fund Availability
This NOFA announces the availability of at least $447.5 million in
funding for the Revitalization of Severely Distressed Public Housing,
hereafter referred to as the HOPE VI program, as provided in the 1997
Appropriations Act. The 1997 Appropriations Act provided $550 million
in funding for the HOPE VI Program. HUD will reserve $2.5 million for
technical assistance. Up to $70 million will be set aside and awarded
pursuant to a separate funding process for Section 8 tenant-based
assistance. Up to $30 million will be set aside and awarded pursuant to
a separate funding process for HOPE VI demolition-only grants.
Any FY 1997 funds which are reserved but not awarded under the
Section 8 and demolition award processes, together with any FY 1996
funds which are not obligated in accordance with their initial
reservation, will be (1) added to the funds made available hereunder;
(2) awarded pursuant to this NOFA to the most highly rated applicant(s)
which did not initially receive funding; (3) utilized for amendment
funding; or (4) carried over to a subsequent competitive funding round.
A PHA may both apply for ``hard'' revitalization/replacement funding
under this NOFA and replacement housing under the Section 8 award
process, but may not be awarded duplicate funding (replacing the same
units) under the two processes.
E. Limitations on Grant Amount
A PHA may submit one or two separate applications in response to
this NOFA so long as the total amount requested in one or both
applications does not exceed $35 million. Each application submitted by
a PHA is limited in amount to the sum of the following three
components:
The sum of (a) TDCs up to, but not to exceed 100 percent of, HUD's
published TDC limits for the costs of demolition and new construction
multiplied by the number of public housing Replacement Units (as
defined in Section II.K.3.a of this NOFA); and (b) 90 percent of such
TDC limits multiplied by the number of public housing units to be
substantially rehabilitated; but in no event to exceed $25,000,000.
HUD's most recent TDC limits were issued as PIH 96-15 (HA) on April 3,
1996. Total Development Cost is defined as those costs for planning
(including proposal preparation), administration, site acquisition,
construction and equipment, interest and carrying charges, relocation,
demolition, on-site streets and utilities, non-dwelling facilities, a
contingency allowance, insurance premiums, off-site facilities, any
initial operating deficit and other costs necessary to develop the
project. The maximum total development cost excludes costs funded from
donations.
2. No more than $5,000 per unit, based on the higher of (a) the
number of currently occupied units in the project to be revitalized; or
(b) the number of Replacement Units (as defined in Section II.K.3.a of
this NOFA) after revitalization, as an allowance for a self-sufficiency
program.
3. A percentage of the actual, necessary, and reasonable cost for
the demolition of the targeted existing development or any portion
thereof. The percentage shall be derived from a ratio, the denominator
of which is the total number of units being demolished and the
numerator of which is the difference between the total number
demolished and the number of Replacement Units. For example, if a 100
unit development is to be demolished and 75 Replacement Units are to be
constructed, the applicant would be eligible for 25 percent of
demolition costs under this component. Costs includable hereunder are
resident relocation, demolition, environmental remediation and site
restoration to an unimproved state.
This Section (II.E.) is intended solely as a limit on grant amount,
and does not vary HUD TDC rules applicable to public housing
developments. A grantee may spend additional sums on resident self-
sufficiency using donations, HUD funds made available for that purpose,
or other PHA funds. A grantee may spend more than TDC limits on costs
of physical revitalization where permitted by HUD in accordance with 24
CFR 941.306 (as issued in an interim rule published on July 22, 1996
(61 FR 38014, 38019)), so long as it funds the
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excess costs with non-HOPE VI funds. However, if an applicant seeks
HOPE VI funds as permitted herein to supplement a prior uncompleted
HOPE VI, Development, MROP or Comprehensive Improvement Assistance
Program (CIAP) grant, the per unit grant limitations set forth herein
will apply to the sum of all such targeted grant funds.
For example, an applicant which had previously received $15 million
from HUD specifically to address a 600 unit development (with 50
percent occupancy), but had not yet done so, could now apply for a HOPE
VI grant. If the applicant proposed to construct 300 Replacement Units
at an average TDC of $80,000, the maximum HOPE VI grant would be 300
times $85,000 or $25.5 million (TDC plus $5,000/unit), minus the $15
million already in hand, which equals $10.5 million, plus the cost of
demolishing the 300 unreplaced units.
An applicant must document compliance with this provision in
Exhibit M (Grant Limitations).
F. Other Grant Limitations
1. As stated in Section II.E. above, a PHA may submit one or two
separate applications in response to this NOFA so long as the total
amount requested in both applications does not exceed $35 million. Each
application may request funds for only one public housing development.
Contiguous developments will be considered one development for all
purposes in this NOFA. If a PHA submits two applications, each
application will be reviewed separately. There is no minimum or maximum
number of housing units for which funds may be requested in a single
application.
2. A PHA may not request replacement funding for units for which
the PHA has already been awarded prior ``hard'' replacement funding
from HUD. An applicant must document compliance with this provision in
Exhibit M (Grant Limitations), and must disclose all prior ``hard''
replacement assistance received from HUD with respect to the targeted
development.
3. PHAs with previous HOPE VI grants may not seek FY 1997 HOPE VI
funding to supplement the previous grants in treating the units covered
by the original grants. Such PHAs may, however, seek FY 1997 HOPE VI
funding to demolish, revitalize or replace units in the same
development that were not targeted units under the previous HOPE VI
grant. A PHA which received prior years' HOPE VI funding in an amount
less than requested, but which has not yet had a revitalization plan
approved at the reduced funding level, will not be deemed in this award
process to have yet targeted any particular units, and thus may apply
for supplemental funding.
4. PHAs with previously-awarded Development, MROP or CIAP funding
that they believe to be inadequate for the revitalization of a targeted
development, with insurance proceeds attributable to the development,
or with previously-awarded HOPE VI funds subject to the limitation in
paragraph 3 above, may apply for supplemental funding under this NOFA.
HUD will evaluate these applications under the rating factors
established by this NOFA. PHAs must demonstrate that funding already
available to them is insufficient to assure a sustainable
revitalization, and/or that the portion of a development that would be
unaddressed by other funding in itself would qualify for a HOPE VI
grant. An applicant that submits an application for an existing HOPE VI
site (pursuant to the limitations in Section II.F.3. of this NOFA,
above) that make a case now that the existing HOPE VI site is no longer
sustainable, pursuant to this section, are cautioned that the existing
HOPE VI grant may be subject to withdrawal if FY 1997 HOPE VI funds are
not awarded.
While such PHAs may receive grants of up to $35 million as provided
in Section II.E. of this NOFA, in addition to previously received
funds, they may not do so if the total of grant funds would violate the
per unit limitations set out in Section II.E.1.
An applicant must document compliance with this provision in
Exhibit M (Grant Limitations), and must disclose all prior grant
assistance received from HUD (HOPE VI, Development, MROP, or CIAP, or
insurance proceeds) with respect to the targeted development.
5. PHAs may use HOPE VI funds in conjunction with any other funds
available to the PHA, so long as the use of HOPE VI funds complies with
the requirements set forth in this NOFA, and the Grant Agreement and
ACC Amendment to be executed with HUD; the use of other funds complies
with any applicable restrictions; and the proposed use of all funds
complies with section 102(d) of the HUD Reform Act of 1989 (42 U.S.C.
3531 note) and HUD's subsidy layering guidelines, including those found
in 24 CFR part 4.
G. Technical Assistance
In accordance with the 1997 Appropriations Act, up to $2.5 million
may be used by HUD for technical assistance to be provided directly or
indirectly by grants, contracts, or cooperative agreements, including
training and cost of necessary travel for participants in such
training, by or to officials and employees of HUD and PHAs and to
residents. Technical assistance does not include assistance regarding
how to draft any applications.
H. Failure to Proceed
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.
I. Total Development Costs
1. If the average per unit costs attributable to TDC (see
definition in Section II.E.1 of this NOFA) of the applicant's program
is below 70 percent of HUD's published TDC limits, the development is
not eligible for this program. For these calculations an applicant
should include all costs included in Section II.E.1 of this NOFA,
including demolition, remediation and relocation.
An applicant must document compliance with this provision in
Exhibit M (Grant Limitations).
2. If the average per unit hard costs of rehabilitation falls
between 70 and 90 percent of TDC, rehabilitation must be shown to be a
viable, cost effective option by the application.
3. The total development cost paid from HUD funds for units to be
rehabilitated may not exceed 90 percent, and the total development cost
for newly constructed units paid from HOPE VI funds may not exceed 100
percent, of HUD's published TDC limits. Applications should include
information on any anticipated costs above TDC limits to be funded from
non-HOPE VI funds. Selection of an applicant which includes an
anticipated request for approval for excess TDC costs to be paid for
from non-HOPE VI funds does not constitute approval of such TDC excess
(note Section II.E.3. above). Instead, the selected applicant will need
to obtain written approval from HUD for TDC excesses in accordance with
24 CFR 941.306 or make the necessary program changes to conform to TDC
guidelines. HUD will
[[Page 18247]]
not select for funding any application which does not make a plausible
case that it can meet the standards set forth in 24 CFR 941.306. HUD
will more favorably consider those applicants that propose cost
effective programs under the Feasibility and Sustainability evaluation
factor (Section V.J. of this NOFA).
J. Site and Neighborhood Standards
HOPE VI grantees must ensure that their revitalization proposals
and replacement housing plans for the targeted development(s) will
avoid or lessen concentrations of very low-income families by creating
a mixed-income community or by expanding assisted housing opportunities
in nonpoor and nonminority neighborhoods. Since HUD intends to fund
only those applications under this program that demonstrate the
capacity to alleviate distressed conditions at the targeted development
and in the surrounding neighborhood, replacement housing under HOPE VI
which is located on the site will not require independent approval
under site and neighborhood standards. Units that are not located at
the targeted development and in the immediate neighborhood will be
subject to site and neighborhood standard rules stated in or made
applicable by the Grant Agreement.
K. Eligible Activities and Costs
HOPE VI proposals will typically include an array of activities and
funding sources. The following limitations apply solely to activities
to be funded with HOPE VI grant funds.
Eligible expenditures are those eligible under sections 8 and 14 of
the U.S. Housing Act of 1937 (42 U.S.C. 1437f, 1437l) (1937 Act). PHAs
must use assistance under this HOPE VI program for demolition and/or
the physical improvement and/or replacement of public housing and for
associated management improvements.
1. Eligible Activities
a. Total or partial demolition of buildings or disposition of
property (subject to the requirements of section 18 of the 1937 Act (42
U.S.C. 1437p)).
b. Capital costs of major reconstruction, rehabilitation, and other
physical improvements (including energy retrofits) and improvements to
assure greater accessibility and visitability for persons with
disabilities (subject to TDC limitations).
c. Capital costs of replacement housing, including homeownership
housing (subject to TDC limitations).
d. Management improvements for the reconstructed development.
e. Planning and technical assistance.
f. Programs designed to help residents gain employment and attain
self-sufficiency.
2. Eligible Costs
a. Capital costs may include related administrative and relocation
costs necessary for reconstruction, rehabilitation, demolition, or
acquisition of land for replacement housing.
b. Physical improvement costs may include those necessary to
provide community facilities primarily intended to facilitate the
delivery of self-sufficiency programs and economic development
opportunities for residents of the targeted development.
c. Administrative costs may include the annual premium of lead-
based paint insurance incident to approved revitalization work while
work is in progress.
3. Interpretive and Cautionary Issues
a. Replacement Units. HOPE VI funds awarded under this NOFA may
directly support only housing units which are rehabilitated or which
replace demolished or disposed units, and which are for use in
accordance with the U.S. Housing Act of 1937 and appropriations acts
incorporated by reference therein by the amendment to section 14 of the
Act at section 201 of the FY 1996 Appropriations Act (42 U.S.C 1437l;
Pub. L. 104-134, approved April 26, 1996; 110 Stat. 1321-277). Rental
units will be deemed Replacement Units and qualify for operating
subsidy only if they are to be placed under Annual Contributions
Contract and operated in accordance therewith. Homeownership units will
be deemed Replacement Units only as specified in the Urban
Revitalization heading of the 1993 Appropriations Act (Pub. L. 102-389;
approved October 6, 1992); that is, if they meet the statutory
requirements of the Section 5(h) program (42 U.S.C. 1437c(h)); the HOPE
II program (42 U.S.C. 12871-80; Pub. L. 101-625, secs. 421-31; 104
Stat. 4079, 4162-72); or the HOPE III program (42 U.S.C. 12891-98; Pub.
L. 101-625, secs. 441-48; 104 Stat. 4079, 4172-80); or are made
available through housing opportunity programs of construction or
substantial rehabilitation of homes meeting essentially the same
eligibility requirements as the Nehemiah program. HOPE VI funds may not
directly support mixed-finance units which are not themselves to be
placed under ACC.
b. While applicants are encouraged to propose HOPE VI plans with
broad community revitalization features, HOPE VI funds not used for
demolition may be expended only to construct, or for uses which
directly and principally benefit, Replacement Units and other public
housing. Where other units or nonhousing uses will also benefit from
the expenditure, a reasonable proration to other fund sources is
required. For instance, where housing authority property is to be
transferred and improved for a nonreplacement use such as middle-income
housing, the transfer should be at appraised value and the cost of
improvement must be borne by other funds. Notwithstanding the
foregoing, HUD may permit a temporary or permanent use of HOPE VI funds
to benefit non-Replacement Units so long as the purposes are eligible
under the FY 1997 Appropriations Act and HUD determines that such use
serves a commensurate social benefit, materially enhances the social
and physical environment of the Replacement Units, other public housing
units and their residents, and is no more than necessary to accomplish
such purposes. For instance, HUD could permit HOPE VI funds to be used
to improve a site before transferring part of the site or individual
lots (at improved value) for middle-income housing, and could
additionally permit the costs of improvement to be written off or
converted to a soft loan, where the middle-income units would provide
economic diversity to the site and the cost writedown was reasonable
and necessary to attract middle-income residents to the site.
c. Where a plan contemplates the receipt of program-related income
prior to grant closeout (e.g., from sale of homeownership Replacement
Units, or the disposition of improved land), such income must be
reflected in the HOPE VI budget and used for a program purpose.
III. Curable Technical Deficiencies
The requirements of this NOFA must be satisfied in order for HUD to
select an application for funding. If an applicant does not satisfy the
technical requirements below, after the process for the correction of
deficiencies described in Section VII.C. of this NOFA has been carried
out, HUD cannot select the applicant for participation.
A. The applicant must include evidence in Exhibit J.1.e of the
application (Community and Partnerships) that at least one public
meeting has been held to notify residents and community members of the
proposed activities described in the application.
B. The applicant must include all certifications and submissions
required as Exhibit Q of the application.
[[Page 18248]]
C. Applications that propose new construction of replacement
housing must include Exhibit E of the application.
IV. Program Threshold Criteria
Section IV of this NOFA identifies criteria which must be satisfied
by each application in order for it to be selected. HUD will determine
whether each criterion has been satisfied, based on the information
submitted in accordance with specific requirements of Section VI of
this NOFA. Applicants must submit the information described in Section
VI of this NOFA; applicants must not respond directly to the criteria
in Section IV. If HUD determines that an application fails to satisfy
one or more threshold criteria, HUD may not select that application for
funding.
In addition to the specified threshold criteria, HUD expects every
applicant selected to generally satisfy each application evaluation
factor. It is a general threshold criterion for selection that an
applicant must score at least some points (i.e., more than zero) on
every evaluation factor identified in Section V of this NOFA. Further,
an applicant must receive at least 15 of 25 possible points under the
Feasibility and Sustainability (V.J.) evaluation factor.
A. Obsolescence
A development targeted by an application must be ``obsolete'' as
defined in Section II.C. of this NOFA, except that an applicant need
not make a showing of obsolescence with respect to any portion of the
development which has already been approved by HUD for demolition,
whether or not such demolition has already begun or occurred.
HUD will consider the entire application, and particularly Exhibit
B (Existing Conditions) when evaluating this criterion.
B. Need for Funding
An applicant which owns or operates 250 or more public housing
dwelling units must establish that it cannot, using currently available
and reasonably foreseeable funding from HUD, meet its long term capital
needs for its entire public housing inventory and still accomplish the
demolition, revitalization and/or replacement proposed in its
application, in the absence of HOPE VI funding in the general amount
requested. This criterion may be satisfied if a Comprehensive Grant
Program (CGP) agency's total capital needs, as shown in its latest
physical needs assessment, exceed by more than 10 percent the work it
expects to be able to fund over the next 5 years. A CGP agency should
use its most recent HUD approved 5-year action plan to make this
determination.
A PHA which owns or operates fewer than 250 public housing dwelling
units, and thus does not receive CGP funds, is not held to this
threshold requirement.
HUD will consider the entire application, and particularly Exhibit
N (Need for Funding) when evaluating this criterion.
C. Lessen Concentration
Off-site Replacement Units must avoid or lessen concentrations of
very low-income families. On-site units are not subject to this flat
statutory requirement, but must nevertheless ensure, in accordance with
the various evaluation factors, that after a reasonable investment and
time, the site will not constitute an excessive concentration of very
low-income families.
HUD will consider the entire application, and particularly Exhibits
D.6 and D.7, when evaluating this criterion.
D. Fair Housing
HUD will use the following standards to assess compliance with
civil rights laws for the threshold review. In making this assessment,
HUD 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, or compliance
agreements. 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 applicant
instituted by the Department of Justice.
2. There is an outstanding finding of noncompliance with civil
rights statutes (the Fair Housing Act (42 U.S.C. 3601-19); title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4); section 504 of
the Rehabilitation Act of 1973 (29 U.S.C. 794); the Age Discrimination
Act of 1975 (42 U.S.C. 6101-6107); and the Americans with Disabilities
Act of 1990 (42 U.S.C. 1201 et seq.)), 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 HUD.
3. There is an unresolved Secretarial charge of discrimination
against the applicant issued under section 810(g) of the Fair Housing
Act (42 U.S.C. 3610), as implemented by 24 CFR 103.400.
4. There has been an adjudication of a civil rights violation in a
civil action brought against the applicant 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.
5. There has been a deferral of the processing of applications from
the applicant imposed by HUD under Title VI of the Civil Rights Act of
1964, the Attorney General's Guidelines (28 CFR 50.3), or the HUD Title
VI regulations (24 CFR 1.8) and procedures, or under section 504 of the
Rehabilitation Act of 1973 or HUD's section 504 Regulations (24 CFR
8.57).
HUD will consider Exhibit P when evaluating this criterion.
V. Application Evaluation Factors
Section V of this NOFA describes the evaluation factors that HUD
will use to review applications. Each application will be evaluated
based upon its merits determined pursuant to the factors set forth
below. Applications will be selected for award in accordance with
Section VII of this NOFA. HUD will consider the entire application, as
a whole, when applying these factors. Applicants must submit the
information described in Section VI (Application Submission
Requirements) of this NOFA; applicants must not respond directly to the
factors in Section V (Application Evaluation Factors) of this NOFA.
Instances in which specific exhibits correspond to specific evaluation
factors are noted in both Sections V and VI of this NOFA.
A. Urgency of Need for Revitalization [15 Points]
HUD will consider the degree of distress at a site and the
imminence of greater distress in the absence of immediate intervention.
HUD will also consider the extent to which such distress is
attributable to or exacerbated by the development's obsolescence,
rather than factors more immediately within the control of applicant,
and is potentially remediable by the applicant's revitalization plan.
Maximum consideration will be given to sites at which the immediate
obsolescence of physical design and condition make it virtually
impossible to provide decent, safe, and sanitary housing at a
reasonable cost to the applicant despite all reasonable current
management and maintenance efforts. HUD will also give consideration,
however, to the degree of imminence of
[[Page 18249]]
such obsolescence and consequent distress at developments which have
not yet reached such condition.
If a targeted development already has been vacated for demolition
or disposition, or has been demolished or disposed of pursuant to HUD
approval granted in 1995 or thereafter, HUD will apply this evaluation
factor to the conditions which existed as of the date of HUD approval.
HUD will consider the entire application, and particularly Exhibit
C (Urgency of Need for Revitalization); Exhibit B (Existing
Conditions); and Exhibit N (Need for Funding) when evaluating this
criterion.
B. Lessen Isolation of Low-Income Residents [25 Points]
A successful HOPE VI effort requires the replacement of isolated
concentrations of very low-income, nonworking families with more
integrated and diverse urban settings where nonworking families are in
daily contact with working families and working society. HUD will
consider the extent to which the applicant proposes to place or
maintain public housing in well-functioning neighborhoods or promote
mixed-income communities where public housing once stood alone, thereby
ending the social and economic isolation of public housing residents,
increasing their access to quality municipal services, and increasing
their access to job information and mentoring opportunities. HUD will
consider the extent to which the physical design would lessen the
isolation and stigmatization of the development and its low-income
residents. HUD will also consider features of the surrounding community
which would enrich the lives of public housing residents within the
development, such as educational institutions, transportation and
employment opportunities. HUD will also consider the extent to which
operational and management principles will promote economic and social
diversity.
If an applicant proposes demolition with replacement in part
through tenant-based assistance, HUD will also consider the degree to
which the PHA intends to provide counseling and other assistance,
directly or through an intermediary, to help families receiving tenant-
based assistance to move to nonpoverty neighborhoods.
HUD will consider the entire application, and particularly Exhibits
B.3, B.4, and B.5 (Existing Conditions); Exhibits D.6 and D.7
(Description of Physical Revitalization Plan), and Exhibit F (Self-
Sufficiency Component) when evaluating this factor.
C. Encourage Resident Self-Sufficiency [20 Points]
With welfare reform, no revitalization effort can succeed if it
does not make provisions for assisting low-income residents to achieve
long-term self-sufficiency (i.e., independence from supportive
governmental programs not provided to the general populace, primarily
income support) where possible. An applicant should demonstrate that it
has a feasible, coherent, realistic strategy for helping residents
become wage-earners. Overall, HUD will consider the extent to which the
objectives of the self-sufficiency plan are results-oriented, with
measurable goals and outcomes; and the degree to which the program is
sustainable and is likely to enable residents to become self-
supporting.
HUD will consider such factors as the overall quality of the self-
sufficiency plan; the integration of the plan with the development
process; the appropriateness of scale, type, and delivery of the plan
to meet the identified needs of residents; the degree of resident
training, employment, and contracting planned; the degree to which
service providers have made commitments to provide services or funding;
the experience of proposed service providers; the extent of effective
use of technology; the involvement of educational institutions and
business partners; and the extent to which residents are expected to
invest in their own futures.
HUD will also consider the extent to which proposed operating and
management principles will complement the self-sufficiency program and
reward the efforts of residents.
HUD will consider the entire application, and particularly Exhibit
F (Self-Sufficiency Component) and Exhibit G (Operation and Management
Principles) when evaluating this factor.
D. Property Management [15 Points]
HUD will consider the extent to which the housing authority has
evaluated the obstacles that prevented good management and other
management problems that led to the distress or obsolescence of the
targeted development, and the new plan for management that will protect
against similar problems of the past and promote efficient and
economical management.
HUD will consider the entire application, and particularly Exhibit
G (Operation and Management Principles) when evaluating this factor.
E. Local Impact [25 Points]
HUD will consider the degree and magnitude of positive change that
the entire package of activities described in the application
(including both eligible activities to be conducted by the applicant
and complementary activities by other entities, such as CDBG
investments or educational initiatives) will have on the affected
public housing community, the surrounding neighborhood, and on the
entire city or town. In this context, HUD will consider the community's
need for such change as measured by objective indicia of social
distress, criminal incidents, housing need, and similar factors. HUD
will consider the extent to which a physical plan demonstrates
attention to preserving and enriching the urban fabric. HUD will also
consider the extent to which the infusion of HOPE VI dollars will
leverage other resources, including municipal expenditures, charitable
contributions, and private debt and equity. HUD will also consider the
extent to which the proposal improves, where applicable, the safety and
security of residents through the implementation of anti-crime measures
and the installation of physical security or design enhancements. HUD
will consider the relative impact a proposed revitalization will have
on its surrounding community, not the magnitude of the program in
relation to other applications.
HUD will consider the entire application, and particularly Exhibit
B (Existing Conditions), Exhibit D (Description of the Physical
Revitalization Plan), and Exhibit H (Local Impact) when evaluating this
factor.
F. Affirmatively Furthering Fair Housing [20 Points]
HUD will consider the extent to which the applicant has
demonstrated that it has affirmatively furthered fair housing, or will
do so by its actions in connection with this application. HUD will
consider the extent to which actions already taken by the applicant
have removed or overcome, and, where applicable, the extent to which
actions to be taken in connection with this application will remove or
overcome the consequences of prior practices or usage which were
discriminatory or which tended to limit participation by persons of a
particular race, color or national origin. HUD will also consider the
extent to which the applicant's previous actions, or actions taken in
connection with this application, promote the provision of public
housing opportunities for disabled persons. (See
[[Page 18250]]
Section VI.P. of this NOFA for examples of specific actions).
In accordance with the provisions of the 1997 Appropriations Act,
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. HUD 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.
HUD will evaluate all applications, and particularly Exhibit B
(Existing Conditions), Exhibit D (Description of Physical
Revitalization), Exhibit G (Operation and Management Principles), and
Exhibit P (Affirmatively Furthering Fair Housing) when evaluating this
factor.
G. Community and Partnerships [20 Points]
HUD will consider the entire application, and particularly Exhibit
J (Community and Partnerships), when evaluating this factor.
1. Resident Support/Involvement (5 Points)
HUD encourages full and meaningful involvement of residents and
members of the communities to be affected by the proposed activities.
HUD will consider the extent of resident consultation in shaping the
application, the level of resident support for the proposed activities,
the continued involvement and participation by the affected public
housing residents, and the proposed involvement of residents in
management of revitalized or replacement units.
2. Community Support/Involvement (5 Points)
HUD will consider the extent of involvement by local public,
private, and nonprofit entities and community representatives in the
preparation of the application, the level of enthusiasm for the plan in
the larger community, and the extent to which the activities proposed
in the application are coordinated with other revitalization plans
within the community.
3. Partnerships (5 Points)
This evaluation factor recognizes the importance of a PHA not just
seeking endorsements and vendor relationships with others, but actively
enlisting other stakeholders who are vested in the revitalization
effort, including public and private nonprofit and for-profit entities
with experience in the development and/or management of low-and
moderate-income housing, those that are skilled in the delivery of
services to residents of public housing, educational institutions,
foundations, banks, and other organizations.
HUD will consider the extent to which applications propose to
develop partnerships to facilitate revitalization, the strength of
commitments from potential partners to participate in the
revitalization plan, and the experience, capability, and local
importance of proposed partners.
If a PHA is also a redevelopment agency or otherwise has citywide
responsibilities, HUD will consider the city's redevelopment or other
functional area to be a separate partner with which the housing
authority function is partnering, where appropriate.
4. EZ/EC Involvement (5 Points)
Points will be given to an application whose targeted development
is principally located in a Federally-designated Empowerment Zone (EZ)
or Enterprise Community (EC), and which demonstrates coordination with
and support of the Strategic Plan for such EZ/EC.
H. Capability and Readiness [25 Points]
HUD will consider the ability and capacity of a PHA and any
identified partners to promptly begin and effectively carry out the
revitalization and replacement activities it has proposed. HUD will
likewise consider the extent to which an applicant with any outstanding
grants from HUD of substantial capital funds under the HOPE VI, MROP,
Development or CIAP programs is on schedule or, if behind schedule, has
resolved all major issues and has been making good progress in the last
6 months.
HUD will separately evaluate the demonstrated capability and track
record of the PHA and its team to plan, implement, adapt and manage the
self-sufficiency program over a multi-year period.
HUD will separately evaluate the demonstrated capability and track
record of the PHA and its team to provide property management and
marketing of the kind which will be required by the applicant's
proposal.
HUD will look at the capacity of the team presented by the
applicant, including, as relevant, both PHA employees and partners and
contractors who have been procured and who are demonstrably committed
to the plan. A PHA which cannot currently demonstrate full capacity in
this fashion will be evaluated on the likelihood that it can acquire
such capacity. Where a PHA plans to utilize partners and/or
contractors, it should demonstrate that it will provide an appropriate
balance of oversight and autonomy.
HUD will consider the entire application and particularly
information provided in Exhibit I (Capability and Readiness) when
evaluating this factor.
I. Efficient Utilization of Federal Funding [10 Points]
HUD will consider the relative cost to the Federal Government of
the proposed plan as opposed to demolishing the targeted development
and replacing it with Section 8 tenant-based assistance, as determined
in accordance with the Federal Register notice of September 26, 1996
(61 FR 50632). A plan which is less costly will receive full points
under this evaluation factor; more costly plans will receive fewer
points. HUD will also evaluate the extent to which housing authorities
have proposed budgets that demonstrate efficiency in spending.
Applications with new construction and rehabilitation costs that are
less than applicable TDC limits will be favorably considered.
HUD will consider the entire application, and particularly Exhibit
O (Section 8 Cost Comparisons) when evaluating this factor.
J. Feasibility and Sustainability [25 Points]
HUD will consider the need and market for the revitalized and/or
replacement units of the type and size proposed; whether the proposed
program activities are likely to be accomplished within a reasonable
time and expense; and whether the proposed activities are sustainable
based on realistic budgets. Included in this analysis, HUD will
evaluate the level and firmness of commitments for private and public
funds upon which the proposal relies.
HUD will consider the entire application, and particularly Exhibit
B (Existing Conditions), Exhibit D (Description of Physical
Revitalization), Exhibit K (Resources), and Exhibit L (Program
Financing and Sustainability) when evaluating this factor.
K. Proposal Coherence and Integrity [15 Points]
HUD will consider the entire application when determining the
extent to which the proposed activities are likely to accomplish the
program plan and objectives as outlined in Exhibit A (Summary Statement
of Plan and Objectives). HUD will consider the extent to which
information and strategies provided in each of Exhibits D-P are
coherent and consistent with
[[Page 18251]]
each other, and whether the application proposes a comprehensive,
realistic, and effective solution to the current problems at the
development and in the neighborhood as described in Exhibit B (Existing
Conditions).
VI. Application Submission Requirements
This Section VI of the NOFA describes all of the items to be
included in an application. All applications must include all
information requested unless otherwise specifically noted.
HUD reviewers will use the information provided in the application
to evaluate each application in accordance with the evaluation factors
described in Section V of this NOFA. Notwithstanding that certain
application submission requirement sections of the application
correspond to specific evaluation factors, reviewers will consider and
evaluate the application as a whole during the evaluation process.
Each application must consist of Exhibits A-Q that correspond
directly to Sections VI.A.-VI.Q. listed below. For ease of review, each
application must include a table of contents directing the reader to
the page number upon which each exhibit begins. To help expedite review
of the applications, please assemble in the order given in Section VI
of this NOFA. Please mark each exhibit with an appropriately lettered
tab and number each page of the application sequentially. If an exhibit
is not applicable for any reason, provide an explanation of its
inapplicability to the application under the tab for such exhibit.
Each application must be limited to a total of 75 (8\1/2\ by 11
inch) pages of narrative text utilizing double spacing and margins of
preferably 1 inch, but no smaller than \1/2\ inch. HUD strongly
recommends that applicants utilize a Courier 11 point font or
equivalent. Page limits do not include such charts, maps and
illustrations as are useful and necessary to illuminate the required
narrative, nor do they include required or requested attachments such
as letters of support or opposition, or certifications. Videos are not
an allowable submission. Adherence to the page limit is mandatory; in
reviewing an application, HUD will not consider any information on
pages that exceed the limits. Applicants are encouraged to be concise
and need not utilize the full page limit.
A. Summary Statement of Plan and Objectives
All applicants must provide a narrative Exhibit A which summarizes
the overall revitalization plan and sets forth what the applicant
proposes to accomplish thereby. The narrative should include: (1) A
statement describing the planned long-term impact the redevelopment
will have on the current and future residents of the development and
the neighborhood, and (2) A list of measurable goals and an estimate of
when the goals are to be achieved. HUD will use information from
Exhibit A both to orient readers and to evaluate specific factors for
which goals are set in this section.
B. Existing Conditions
All applicants must provide an Exhibit B that responds to all items
in this section plus any others which the applicant deems relevant to
the heading and intended use. HUD will use information from Exhibit B
primarily to evaluate the Urgency of Need for Revitalization (V.A),
Lessen Isolation of Low-Income Residents (V.B), Local Impact (V.E),
Affirmatively Furthering Fair Housing (V.F.), and Feasibility and
Sustainability (V.J) factors. HUD will use items 2 through 4, below, to
determine whether the application meets the threshold criterion for
obsolete housing (IV.A).
The applicant must provide the following information in a narrative
plus the map required under Paragraph 1.c. below:
1. Description of Current Development
a. An identification of the targeted development and neighborhood.
State the complete street address (including zip code) of the targeted
development.
b. The total number of current units, by bedroom distribution,
separately identifying vacant and occupied units.
c. A map of the current site.
2. Indicators of Physical Obsolescence
a. The cost of redesign, rehabilitation, or reconstruction per unit
as compared with TDC.
b. Structural deficiencies (e.g., settlement of earth below the
building caused by inadequate structural fills, faulty structural
design, or settlement of floors).
c. Substantial deterioration (e.g., severe termite damage or damage
caused by extreme weather conditions) or other design or site problems
(e.g., severe erosion or flooding).
d. Design and site deficiencies (e.g., high density, building
height, unit configuration or indefensible space).
e. Major system deficiencies (e.g., peeling and chipping lead-based
paint, lack of reliable and reasonably efficient heat and hot water,
major structural deficiencies, electrical system not satisfying code
requirements, poor site conditions, leaking roof, deteriorated laterals
and sewers, or high number of plumbing leaks).
f. Deficiencies with respect to accessibility for persons with
disabilities as regards both individual units, entrance ways and common
areas.
3. Neighborhood Characteristics
a. Physical condition and characteristics of the neighborhood,
including the percentage of the population in the neighborhood that
lives in the targeted development and the percentage that lives in
other assisted housing developments nearby.
b. Land use and economic activity, including density and structure
types as compared to the development proposed for funding.
c. Demographic data such as income levels and minority
concentration.
d. Environmental conditions that may jeopardize the suitability of
the site or a portion of the site and its housing structures for
residential use. These conditions may be determined by either a HUD-
related environmental review, in accordance with 24 CFR part 50 which
was previously conducted in connection with earlier assistance, or
another assessment of conditions that, in the opinion of the applicant,
may jeopardize suitability of the site.
e. Deficiencies in the neighborhood that revitalization could
ameliorate.
f. Assets in the neighborhood which will assist revitalization.
4. Demographic Indicators
For the following elements, applicants must provide the most
current information that relates as specifically as possible to the
targeted site. If site information is not available, applicants must
indicate whether information provided pertains to the development,
neighborhood, city, census tract, or other demographic area.
a. Average income as a percentage of area median. Include the
percentage of families with public assistance income, earned income,
and social security income at the targeted development.
b. Statistical information on the incidence of crime, including the
following: frequency of criminal acts of various types per 1,000
persons (including drug-related activities), number of lease
terminations or evictions for criminal activity, average number of
police calls to the development per month, and the average monthly
incidence of vandalism to PHA property in dollars.
c. Vacancy rate of units not in funded, on-schedule modernization;
historical marketing and occupancy data.
[[Page 18252]]
5. Effect on the Neighborhood
Applicants must describe how the physical, neighborhood, and
demographic conditions of the obsolete development, or portions
thereof, affect the residents of the surrounding neighborhood, the
greater community, and city.
C. Urgency of Need for Revitalization
The applicant should set forth in a narrative why it is urgent that
it receive the funding sought and pursue the revitalization proposed.
The applicant should refer to information contained in Exhibit B
(Existing Conditions) and Exhibit N (Need for Funding), together with
such other information as is relevant and helpful. If a targeted
development already has been vacated for demolition or disposition, or
has been demolished or disposed of pursuant to HUD approval granted in
1995 or thereafter, describe the conditions which existed as of the
date of HUD approval.
D. Description of Physical Revitalization Plan
HUD will use information from Exhibit D primarily to evaluate the
Lessen Isolation of Low-Income Residents (V.B.), Local Impact (V.E.)
and Feasibility and Sustainability (V.J.) factors. HUD will use
information in Exhibits D.6 and D.7 to evaluate the Lessen
Concentration threshold criterion (IV.C.) and the Lessen Isolation of
Low-Income Residents (V.B.) and Affirmatively Furthering Fair Housing
(V.F.) factors. Applicants must describe the extent of the physical
revitalization and/or replacement activities proposed, including the
following, as appropriate:
1. The extent of any proposed demolition/disposition and
identification of the units to be demolished.
2. The changes in the sizes and shapes of units and other
changes in the use of interior space, including any reduction in the
number of units due to reconfiguration or changes in bedroom mix.
3. Any community space alterations, improvements, or additions.
4. Any proposed on-site housing construction, including number,
type, and bedroom distribution of units, and whether the new units
will be for rental or homeownership. Indicate clearly the units
proposed as public housing Replacement Units.
5. For any reconfiguration, community space alterations or
improvements, or on-site housing construction, describe how
accessibility for persons with disabilities to individual units,
community spaces and buildings will be assured.
6. Any proposed off-site housing construction, including number,
type, and bedroom distribution of units, and whether the new units
will be for rental or homeownership. Indicate clearly the units
proposed as public housing Replacement Units. Any applicant
proposing to create off-site Replacement Units MUST use census data
to describe how such housing will avoid or lessen concentrations of
very low-income families.
7. The number of any Section 8 certificates to be used for
replacement or relocation housing, and whether those certificates
are existing or are to be requested under the separate Section 8
notice. Include a description of counselling or other assistance
that will be provided to residents receiving tenant-based assistance
as relocation or replacement housing to enable them to move to areas
of lower poverty if they so choose.
8. Any site acquisition necessary or proposed, the purpose of
the acquisition, and how that acquisition is proposed to be
financed.
9. Any non-housing structures.
10. Infrastructure and site improvements to be constructed.
11. A description of any physical anti-crime measures and/or
installation of physical enhancements (e.g., defensible space).
12. A statement of the design objectives and considerations
motivating the plan.
13. Detail other revitalization activities or land use plans
underway or planned in the neighborhood(s) that the revitalization
plan would affect. Provide reference to and maps indicating the
location of activities and resources identified in the city's or
State's Consolidated Plan or Federally-designated Empowerment Zone
or Enterprise Community Strategy (if applicable) in relationship to
the development. Describe the current or projected impacts of these
community-wide activities on residents of the development(s).
14. If available, provide postrevitalization site and
neighborhood maps and/or illustrative design illustrations.
E. Applications for New Construction
In accordance with section 6(h) of the U.S. Housing Act of 1937 (42
U.S.C. 1437d), the PHA may engage in new construction only if the PHA
demonstrates to the satisfaction of the Secretary that the cost of new
construction in the neighborhood where the PHA determines the housing
is needed is less than the cost of acquisition or acquisition and
rehabilitation in such neighborhood. Therefore, every application that
includes new construction must be accompanied by a narrative Exhibit E
that contains the information described in either paragraphs 1 or 2 of
this section, below. If HUD cannot approve new construction under
section 6(h) of the 1937 Act, HUD will reject the application.
1. A PHA comparison of the costs of new construction (in the
neighborhood where the PHA proposes to construct the housing) and the
costs of acquisition of existing housing or acquisition and
rehabilitation in the same neighborhood (including estimated costs of
lead-based paint testing and abatement).
2. A PHA certification, accompanied by supporting documentation,
that there is insufficient existing housing in the neighborhood to
develop housing through acquisition of existing housing or acquisition
and rehabilitation.
F. Self-Sufficiency Component
HUD will use information from Exhibit F primarily to evaluate the
Encourage Resident Self-Sufficiency (V.C.), Capability and Readiness
(V.H.), and Feasibility and Sustainability (V.J.) factors.
A program of self-sufficiency may include, but is not limited to:
child care, of a type that provides sufficient hours of operation and
serves appropriate ages as needed to facilitate parental access to
education and job opportunities; employment training and counseling,
such as the Step-Up program, that may include job training, job
preparation and counseling, job development and placement, and follow-
up assistance after job placement; computer skills training; education,
including remedial education, literacy training, completion of
secondary or postsecondary education, assistance in the attainment of
certificates of high school equivalency, and the integration of modern
computer technology into the education program; transportation as
necessary to enable any participating family member to receive
available services or to commute to his or her place of employment;
partnerships with local businesses that will provide job placements for
residents who complete adult education and job training programs;
substance/alcohol abuse treatment and counseling; health care services;
and developing a strategy to establish on-site credit union(s) to
provide financial and economic development initiatives to residents.
The credit union shall support the normal financial management needs of
the community (i.e., check cashing, and any other services and
resources, including case management) that are determined to be
appropriate in assisting eligible residents.
1. Describe the strategic vision, and the objective and measurable
goals, of the self-sufficiency component, and describe how they will be
measured and met through the self-sufficiency program.
2. Describe how the self-sufficiency plan will be managed in order
to achieve efficiency, economy and accountability. Identify
capabilities and track records of responsible individuals or partners.
[[Page 18253]]
3. Provide a brief description of each service that is expected to
be made available for residents. For each service, to the extent that
providers are identified, indicate the name of the service provider and
the experience of that provider. If providers are not identified,
describe the process the PHA will use to identify providers. Describe
the location of the service provision, the timing of the service
provision and how it relates to the development schedule, how long the
service will be provided to residents, and whether the service will be
available to residents that will remain on site, are moved off site,
and/or are in relocation sites.
4. Describe the analysis and any consultation with residents that
the PHA employed to determine the needs upon which the self-sufficiency
program was based and that will be used to reevaluate service needs in
the future.
5. Describe how residents will be selected to participate in
services.
6. In addition to the narrative, attach letters from service
providers that commit to provide services to residents.
7. Describe plans to provide on-the-job training, employment, and
contracting opportunities to residents during implementation of the
revitalization plan.
G. Operation and Management Principles
HUD will use information from Exhibit G primarily to evaluate the
Lessen Isolation of Low-Income Residents (V.B.), Encourage Resident
Self-Sufficiency (V.C.), Property Management (V.D.) and Feasibility and
Sustainability (V.J.) factors.
For application purposes, the PHA should assume that Congress will
make permanent the program modifications continued by the 1997
Appropriations Act. However, PHAs will be required, if selected, to
conform their proposals to current law.
Applicants must describe those management and operational problems
that led to the distress or obsolescence of the targeted development.
Applicants must describe the manner and extent to which the
proposed operation and management principles will:
1. Achieve efficient and effective property management and
maintenance through private management or other management
improvements;
2. Lead to a range of incomes in the subject development including
substantial numbers of working families;
3. Reward work and promote family stability through positive
incentives such as income disregards and ceiling rents. PHAs may
establish ceiling rents and may institute earned income disregards for
FY 1997;
4. Provide greater safety and security by instituting tough
screening requirements and enforcing tough lease and eviction
provisions, including the ``One Strike and You're Out'' policy in the
Housing Opportunity Program Extension Act of 1996 (Pub. L. 104-120;
approved March 28, 1996);
5. Promote economic and demographic diversity through a system of
local preferences (Congress has suspended all Federal preferences for
FY 1997); and
6. Encourage self-sufficiency by utilizing lease requirements that
promote community service and/or transition from public housing.
H. Local Impact
HUD will use information from Exhibit H primarily to evaluate the
Local Impact (V.E.) factor.
Applicants must describe the extent to which the revitalization
plan as a whole will significantly address the indicators of
obsolescence and distress described in Exhibit B (Existing Conditions)
and contribute to positive change for residents of the development and
the surrounding community. Applicants should address anticipated
physical, social and economic changes for both public housing residents
and existing neighbors.
I. Capability and Readiness
HUD will use information from Exhibit I to evaluate all of the
factors and particularly Capability and Readiness (V.H.). Applicants
must provide a narrative that includes the following information:
1. Describe progress made under any previously-awarded HOPE VI,
development, and/or modernization funding which is still open or was
closed out within the last two years, and explain any factors which
have caused delay or unsatisfactory performance.
2. Provide the PHA's overall and modernization scores under the
Public Housing Management Assessment Program (PHMAP), 24 CFR part 901,
as most recently assigned by HUD.
3. Provide a brief summary of the PHA's most recent fiscal audit
and any outstanding HUD monitoring findings.
4. Provide an organizational chart that indicates the proposed PHA
staffing of the revitalization program. Describe the qualifications of
the PHA's key staff who will be responsible for the oversight of the
program.
5. Describe any prior experience of the PHA or its staff in
financing, leveraging, and partnership activities.
6. Describe how the PHA proposes to procure any necessary partners
or service providers. If any have already been procured, describe them
fully, including the nature of the organization, qualifications, the
respective responsibilities and obligations of each party, the proposed
financial relationship (i.e., the basis and source of compensation to
nonapplicant parties), and the procurement process used to select the
partner or provider. If the proposed development is to be implemented
by a third party developer, include a written commitment by the
developer stating eligibility for and experience in developing,
constructing, and managing the proposed activities in this application.
HUD warns PHAs against procuring partners other than in compliance with
applicable laws and HUD procurement regulations, or after waivers
thereof have been granted. Please refer to 24 CFR part 941, subpart F,
published in the Federal Register on May 2, 1996 (61 FR 19708, 19714),
for guidance on procurement of developer partners for mixed-finance
development; all other partners are to be procured in accordance with
24 CFR 85.36.
7. Describe factors that will ensure that implementation of the
program can begin quickly if the application is approved for an award.
J. Community and Partnerships
All applicants must provide a narrative Exhibit J plus any
pertinent letters as provided below. HUD will use information from
Exhibit J primarily to evaluate the Community and Partnerships (V.G.)
factor. HUD will use information in Exhibit J.1.e, below, to determine
whether the resident consultation requirement of the Curable Technical
Deficiencies (Section III.A.) portion of this NOFA has been met.
Exhibit J should contain the following information:
1. Resident Support/Involvement
a. Describe the level of participation and/or consultation with
residents throughout the PHA in the preparation of the application.
b. Explain how the PHA would continue the involvement and
participation by the affected public housing residents after grant
award.
c. Describe any planned roles for residents in the management and
operation of the revitalized and replacement units and the developments
of which they are a part.
All applicants must attach the following:
[[Page 18254]]
d. Any letters from residents in support of or opposition to the
proposed plan or any component element.
e. Evidence that at least one public meeting has been held to
notify residents and community members of the proposed activities
described in this application. The meeting may be a regularly scheduled
PHA board meeting. Evidence must include the notice announcing the
meeting, how the notice was distributed, and a copy of the sign-in
sheet. An application must contain such evidence that a public meeting
took place in order to be selected for participation.
2. Community Support/Involvement
All applicants must respond to this item.
a. Describe the level of participation and/or consultation in the
preparation of the appliction by community organizations and
institutions, agencies of local and State government, businesses,
nonprofit corporations, social service providers, philanthropic
organizations, educational institutions, and other entities. Discuss
how the PHA would continue to involve these entities and groups if the
application is selected.
b. Provide any letters, resolutions, or other available
documentation in support of, or objection to, the physical as well as
the self-sufficiency component of the proposed demolition, and the
revitalization and/or replacement of units.
c. Describe how the PHA plans to coordinate with any other
revitalization activities or land use plans underway or planned in the
neighborhood(s) that the revitalization plan would affect.
d. If the revitalization plan calls for changes in streets or other
infrastructure, provide a letter of commitment from the unit of general
local government to provide the resources necessary to carry out those
activities.
3. Partnerships
a. Describe plans to accomplish the revitalization through a
proposed partnership with one or more entities.
b. Identify and provide any commitments from potential partners to
participate in the revitalization.
c. Describe how the use of the partnership will enhance the PHA's
ability to accomplish the revitalization.
4. EZ/EC Involvement
If the targeted development is within a Federally-designated
Empowerment Zone or Enterprise Community, provide evidence of this
location and that the PHA has an established relationship with the EZ/
EC administrative body that was established before the publication of
this NOFA, and that the proposed revitalization activity is consistent
with and supportive of the Strategic Plan for the Federally-designated
Empowerment Zone or Enterprise Community. In order to receive the
maximum points, applicants must demonstrate that the HOPE VI proposal
is a part of a pre-existing economic development or revitalization
strategy and must provide a letter of endorsement from the EZ or EC
governing body.
K. Resources
Applicants must provide as Exhibit K a list of all of the
individuals and organizations from which they have received evidence of
financial or other support for the proposed activities. Next to each
source, applicants must list the dollar figure associated with the
resource to be provided, including the dollar value of any in-kind
services or materials to be provided, if known. Next to the dollar
figure, applicants must indicate the application page number of letters
of support or commitments for contributions. The letters must describe
the nature of the support and/or resource to be provided, the dollar
value of the donation, if available, any conditions attached to the
commitment, and the date that the resource will be made available.
Applicants must include letters that provide resources for capital
costs, self-sufficiency programs, and all other activities of the
program. Applicants may attach letters as part of Exhibit K, and/or in
Exhibit F.6 (self-sufficiency support), Exhibit J.2.b (community
support), or Exhibit J.3.b (partner support).
L. Program Financing and Sustainability
HUD will use information provided in Exhibit L primarily to
evaluate the Feasibility and Sustainability (V.J) factor. (Note: the
term ``construction'' refers to both rehabilitation and new
construction). All applicants must provide an Exhibit L that contains
the following:
1. A narrative description of the proposed legal/financial
structure of the entire development and, if appropriate, any phases.
Describe how the PHA proposes to manage the proposed development and
maintain programs on a long term basis, given the resources projected
to be available for the development.
2. A Market Analysis which demonstrates the marketability and long
term feasibility of the proposed development and its compatibility with
the surrounding community(ies). Ideally, and particularly where the
feasibility may reasonably be doubted, as where middle-income
homeownership is proposed in a currently low-income neighborhood, the
analysis should be prepared by an arm's length third party with
acknowledged expertise and experience in the field, and should include
anticipated costs of units, compatibility of unit types, market
conditions and demand, market values of community dwellings by type and
bedroom size, and services immediately available (or proposed to be
available) to residents and the community.
3. A commencement and completion schedule, by phases if any.
4. An estimated budget (Form HUD-52825-A, HOPE VI Budget, Parts I
and II) showing uses of HOPE VI and other funding for the
revitalization plan. Part I of the form will indicate the general uses
of funds, and Part II breaks each individual use into specific
activities.
5. If this application is for a mixed financed development, a
separate schedule must be attached showing ALL of the Sources and Uses
of funds required for implementation.
6. Specifically describe all financial sources, the provider, and
the timing for availability of these sources. In the event that a
source(s) is NOT available for expenditure at the commencement of
construction, describe the method of providing for these funds on an
interim basis. (Such may be the case with the availability of Low
Income Housing Tax Credits, in which case a ``bridge'' loan may be
appropriate.) If the proposed development is phased, provide this
information for each phase.
a. Provide letters of commitment signed by an authorized person
providing these funds for all sources.
b. Non-Hope VI funds provided by the PHA must be committed by the
Executive Director as authorized by the PHA Board.
7. Provide a preliminary construction budget from schematics or
other preliminary plans for the proposed development (and each phase)
which includes all hard and soft costs (itemized) required for
completion. The qualifications of the person preparing the budget
(preferably an architect or engineer) should appear over his or her
signature validating the budget.
8. Provide a detailed annual operating pro forma cash flow
statement for a 5-year period for the proposed development and each
phase thereof.
M. Grant Limitations
Applicants must demonstrate compliance with various limitations
through the following separate schedules. All representations should
refer to and be substantiated by budget
[[Page 18255]]
documents provided in Exhibit L (Program Financing and Sustainability).
1. Restate the funding requested under this NOFA and demonstrate
that the grant amount is calculated in accordance with Section II.E. of
this NOFA. The applicant must disclose all unexpended HUD capital
grants and insurance proceeds targeted to the development.
2. Identify all replacement housing assistance (development funds)
and Section 8 funds previously awarded by HUD with respect to the
targeted development, and identify the units addressed thereby.
3. Demonstrate that the average per unit cost of the applicant's
program is above 70 percent of HUD's published TDC limits. For these
calculations, include all costs listed in 24 CFR 941.103, including
those for demolition, remediation, and relocation.
N. Need for Funding
HUD will use the information provided in Exhibit N primarily to
evaluate the Urgency of Need for Revitalization evaluation factor
(V.A.), and the Need for Funding threshold criterion (IV.B.). If the
applicant PHA owns or operates more than 250 public housing units,
demonstrate that its total capital needs, as shown in its latest
physical needs assessment, exceed by more than 10 percent the work it
expects to be able to fund over the next 5 years. A CGP agency should
use its most recent HUD approved 5-year action plan to make this
determination.
O. Section 8 Cost Comparison
This exhibit details the required methodology for the cost
comparison between public housing and Section 8 assistance and will be
used to evaluate the Efficient Utilization of Federal Funding rating
factor (V.I.). Applicants must provide, using the methodology described
below, two figures: the overall monthly cost per unit for revitalizing
and operating the targeted development, and the monthly cost per unit
for demolishing the targeted development and providing affected
residents with tenant-based assistance. The calculation for continuing
the development as public housing will include both the costs for
revitalizing and operating the public housing units. Please show, step-
by-step, the calculations made to arrive at the figures and include
sufficient details to demonstrate that the methodology was correctly
used.
The estimated cost of the revitalization and operation as public
housing shall be calculated as the sum of total operating,
revitalization, and accrual costs, expressed on a monthly per public
housing unit basis for the first month after stabilized occupancy is
achieved. For purposes of this comparison, any Replacement Units
including homeownership units will be deemed public housing.
The development's operating cost (all overhead costs prorated to
the development, including PHA oversight of a private owner or manager,
where applicable) and including utilities and utility allowances, shall
be expressed as total operating costs per month, divided by the number
of occupied units after a reasonable vacancy allowance. Operating costs
shall be the applicant's best realistic estimate for the first month
after stabilized occupancy.
The total cost of revitalization for the development (public
housing units only) shall be the HUD funds (HOPE VI, CGP, CIAP, MROP or
Development) required by the applicant's revitalization plan, but not
including direct expenditures for self-sufficiency efforts. Total
revitalization cost should include only that portion of demolition,
remediation and relocation costs which is attributable to occupied
units which will be replaced with hard units under the revitalization
plan. (That is, if it will cost $5 million to demolish and relocate
residents from a 600 unit development with 500 occupied units, of which
only 400 units are to be replaced, then $4 million is attributed to the
Replacement Units and $1 million should be excluded from total
revitalization cost.) This total revitalization cost is converted into
a monthly per public housing unit basis by dividing the total cost by
the number of public housing units to be provided for after
revitalization and dividing this figure by 180 (i.e., 15 years of
months, where 15 results from an assumed life of 20 years for the
capital investment amortized by a 3 percent annual rate of real
interest to account for the cost of undertaking the capital
improvements up front). For example, if the total HUD-funded
revitalization cost of the development described above is $31 million
and its occupancy by households after revitalization is to be 400
public housing units, its monthly per unit revitalization cost will be
$417 (i.e., $30 million divided by 400, for a per unit cost of $75,000,
and then divided by 180 for a per unit monthly cost of $417).
The monthly per occupied unit cost of accrual (i.e., replacement
needs) will be estimated by using the HUD-funded revitalization cost,
then multiplying that figure by .02 (representing a fifty year
replacement cycle), and dividing this product by 12 to get a monthly
cost. For example, if the HUD-funded revitalization cost is $75,000 per
unit, then the estimated monthly cost of accrual per occupied unit is
$125 (the result of multiplying $75,000 by .02 and then dividing by
12).
The overall current cost for continuing the development as public
housing is the sum of its monthly operating cost per public housing
unit, its monthly revitalization cost per public housing unit, and its
estimated monthly accrual cost per public housing unit. For example, if
the operating cost per unit month is $350 and the revitalization cost
is $417 and the accrual cost is $125, the overall monthly cost per
occupied unit is $892.
The estimated cost of providing tenant-based assistance under
Section 8 for an equivalent number of households shall be calculated as
the amortized demolition cost of the existing site, plus the unit-
weighted averaging of the monthly Fair Market Rents for units of the
applicable bedroom size plus the administrative fee applicable to newly
funded certificates during the year used for calculating public housing
operating costs (e.g., the administrative fee for units funded in FY
1995 and FY 1996 is the monthly administrative fee amount in column C
of the notice published in the Federal Register on January 24, 1995 (60
FR 4764, 4765)). For example, if the replacement development will have
200 two-bedroom public housing units and 200 three bedroom public
housing units, and if the Fair Market Rent in the area is $600 for two-
bedroom units and is $800 for three-bedroom units, and if the
administrative fee comes to $46 per unit, then the per unit monthly
cost of tenant based assistance is $746 ($700 for the unit-weighted
average of Fair Market Rents, or 200 times $600 plus 200 times $800,
with the sum divided by 400, plus $46 for the administrative fee). To
this must be added the demolition, remediation, and relocation costs of
the entire existing site, converted to a monthly per occupied unit
basis by dividing the total cost by the number of occupied units, then
dividing again by 180. The total cost used should be the same as under
the revitalization plan if 100 percent demolition is planned there; if
partial demolition is planned, the PHA should use its best estimate of
what 100 percent demolition would cost. In the example given above, the
demolition of the 600-unit development would cost $10,000 per occupied
unit, for an add-on of $56 per month in addition to the $746 Section 8
cost.
This Section 8 cost would then be compared to the cost of
continuing the public housing development--in the example of this
section, the public housing cost of $892 monthly per unit
[[Page 18256]]
would be greater than the Section 8 cost of $802 monthly per unit.
P. Affirmatively Furthering Fair Housing
While HUD will use information from Exhibit P primarily to evaluate
the Fair Housing threshold criterion (IV.D.), Exhibit P is also the
vehicle for applicants to describe any or all of the following, which
relate to Application Evaluation Factor V.F. The applicant must submit
an Exhibit P that describes any or all of the following:
1. The extent to which the applicant has affirmatively furthered
fair housing and the actions it has already taken, or plans to take
through this application to accomplish this objective. These actions
may include but are not limited to, the following examples:
a. Those actions which contribute toward the reduction of
concentrations of low-income persons who are protected under the Fair
Housing Act. Examples of such actions include:
(1) Mobility counseling programs and clearinghouses which offer
housing opportunities both within and outside of high-poverty areas;
(2) Outreach programs targeted at groups within the eligible
population that would not ordinarily consider applying for units
located in heavily racially concentrated areas;
(3) Outreach programs targeted at landlords with housing
opportunities located outside of low-income concentrated areas;
(4) The implementation of site selection policies which give
priority to sites located outside of minority and low-income areas; and
(5) The promotion of accessible homeownership opportunities and
accessible rental housing in its jurisdiction.
b. Those actions which increase the supply of accessible and
visitable housing available to low-income persons with disabilities and
insure accessibility for persons with disabilities to all aspects of
the program. ``Accessible housing'' means that the unit is located on
an accessible route (36'' clear passage) and, when designed,
constructed, altered, or adapted, can be approached, entered, and used
by an individual with physical disabilities. Visitability restricts
itself to two areas of a unit: (1) At least one outside entrance is at
grade (no step(s)), and (2) all interior and exterior doors provide a
32'' clear passage.
c. Actions which are communitywide or metropolitanwide in scope.
Such actions may include mobility counseling programs, relocation
advisory services, affirmative marketing and advertising programs, and
other actions that may employ public and private resources to address
fair housing problems.
2. Actions taken, or, if applicable, to be taken through this
application, to overcome the consequences of prior discriminatory
practices or usage which have or may have tended to exclude persons of
a particular race, color, or national origin, or to promote the
provision of public housing opportunities for persons with
disabilities. Such actions may include:
a. Compliance with the provisions of Voluntary Compliance
Agreements, contracts, and other legally binding documents, where
applicable; or
b. Actions taken without any kind of legally binding order which
have changed previous discriminatory management, tenant selection and
assignment or maintenance practices.
Consistent with the provisions of the 1997 HUD Appropriations Act,
no applicant shall describe actions connected with the implementation
of the provisions of any consent decree settling litigation relating to
the desegregation of public housing or related matters.
3. Actions already taken, or, if applicable, to be taken through
this application, to provide housing opportunities for persons with
disabilities. Such actions may include implementation of a Needs
Assessment and Transition Plan or other actions which increase, for
persons with disabilities, accessibility to both the units and to other
opportunities to participate in the PHA's programs and activities. Such
actions may also include any actions taken to modify services,
policies, and practices identified through the self-evaluation
processes required by 28 CFR 35.105 or 24 CFR 8.51.
Q. Required Certifications
Each applicant must submit an Exhibit Q that includes all of the
following letters and forms, fully executed and dated. Submission of
all of the following letters and forms is a requirement of this NOFA.
1. As the first page of the application, submit an SF-424,
Application for Federal Assistance. This form must include the Housing
Authority Code, provide the name of the targeted development, list all
activities proposed in the application (demolition, revitalization,
replacement, Section 8) and the amount of funds requested for each.
This form must be signed by the Executive Director of the PHA.
2. A letter from the Chief Executive of the applicable jurisdiction
in support of the application.
3. Form HUD-52820-A, PHA Board Resolution for Submission of HOPE VI
Application.
4. 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.
5. Certification for a Drug-Free Workplace (Form HUD-50070) in
accordance with 24 CFR 24.630.
6. Form HUD 2880, Recipient Disclosure/Update Report. This report
provides disclosures required by section 102 of the HUD Reform Act of
1989 (Pub. L. 101-235; approved December 15, 1989). Implementing
regulations in 24 CFR part 4 require PHAs that seek assistance from HUD
for a specific activity to make the disclosures required under 24 CFR
4.9.
7. Anti-Lobbying Certification for Contracts, Grants, Loans and
Cooperative Agreement (Form HUD-50071). In accordance with 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, the PHA must certify that
no Federally-appropriated funds have been paid or will be paid, by or
on behalf of the PHA, for influencing or attempting to influence an
officer or employee of any agency, or a member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant or loan, the entering into of any cooperative agreement,
and the extension, continuation, renewal, amendment, or modifications
of any Federal contract, grant, loan, or cooperative agreement. (The
rule also requires disclosure from the PHA if nonappropriated funds
have been spent or committed for lobbying activities, if those
activities would be prohibited if paid with appropriated funds.)
VII. Application Processing and Grant Administration
A. Application Evaluation
Awards under this NOFA will be made through a selection process
that will award grants to the most meritorious applications based upon
points as provided below.
HUD will preliminarily review, rate and rank each application,
including those applications from prior HOPE VI planning grant
recipients which are for the same development as their planning grant,
on the basis of the evaluation factors set forth in Section V of this
[[Page 18257]]
NOFA. 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 of
this NOFA. HUD intends to set the base scores so that applications
requesting a total of approximately $900 million are advanced to the
final review stage. The HOPE VI program, following Congressional
direction, has heretofore incorporated a progression from planning
grants to implementation grants. HUD has not given any rating
preference to prior planning grant sites; however, in order to preserve
program continuity and obtain full consideration of sites in which HUD
has made an investment of HOPE VI funds, HUD will review all such
applications in the second review stage. Such applications will not
receive special consideration during the panel review stage and will be
reviewed in both stages of the selection process according to the
evaluation factors set forth in Section V of this NOFA.
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 up
to available funding. HUD, in its discretion, may choose to select a
lower-rated approvable application over a higher-rated application in
order to (1) Increase the level of national geographic diversity of
applications selected under this NOFA, or (2) implement an exemplary,
innovative or unique revitalization plan whose approach would otherwise
be inadequately represented in the pool selected, and which HUD
determines is a revitalization model which should be tested for the
benefit of future efforts.
HUD may establish a panel of experts with whom to consult for
advice on elements of the applications that are within their expertise.
Such experts will be advisors and will not conduct any part of the
selection of grantees.
B. Reduction in Requested Grant Amount
HUD may select an application for participation in the HOPE VI
program but grant an award pursuant to such application in an amount
lower than the amount requested by the applicant, or adjust line items
in the proposed grant budget within the amount requested (or both), if
it determines that partial funding is a viable option, and:
1. The amount requested for one or more eligible activities is not
supported in the application or is not reasonably related to the
service or activity to be carried out;
2. An activity proposed for funding does not qualify as an eligible
activity and can be separated from the budget;
3. The amount requested exceeds the total cost limitation
established for a grant;
4. Insufficient funds are available to fund the full amount; or
5. Providing partial funding will permit HUD to fund one or more
additional qualified PHAs.
C. Corrections to Deficient Applications
HUD will evaluate each application against the evaluation factors
in Section V of this NOFA. Upon completion of the evaluation, if HUD
determines that a PHA failed to submit any of the items listed in
Section III of this NOFA, or if the application contains a technical
mistake, such as an incorrect signatory, or is missing any other
information that does not affect evaluation of the application, HUD may
notify the PHA in writing and 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 application. If
any of the items identified in HUD's written notification is not
corrected and submitted within the required time period, the
application will be ineligible for further consideration.
D. Notification of Funding Decisions
HUD will not notify applicants 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
applicants that have been selected to participate and to those that
have not been selected. HUD's notification of award to a selected
applicant will constitute a preliminary approval by HUD subject to the
completion of a subsidy layering review pursuant to 24 CFR 941.10(b),
HUD's completion of an environmental review of the proposed sites in
accordance with 24 CFR part 50, and the execution by HUD and the
recipient of a Grant Agreement and/or ACC Amendment. Selection for
participation (preliminary approval) does not constitute approval of
the proposed site(s). Each proposal will be subject to a HUD
environmental review, in accordance with 24 CFR part 50, and the
proposal may be modified or the proposed sites rejected as a result of
that review. Each application must contain the certification included
in the PHA Board Resolution for Submission of HOPE VI Application (form
HUD 52820-A), submitted under Exhibit Q.3, that the applicant will
assist HUD in complying with environmental review procedures. Under
that certification, the applicant/recipient may not acquire,
rehabilitate, convert, lease, repair, or construct a property, or
commit HUD or local funds to these activities, until HUD approves the
site.
E. Grant Agreement/ACC Amendment
After HUD selects a PHA to receive an award pursuant to this NOFA,
it will enter into a Grant Agreement and/or ACC Amendment, as
determined appropriate by HUD, with the recipient setting forth the
amount of the grant and applicable rules, terms, and conditions,
including sanctions for violation of the agreement. Among other things,
the agreement/amendment will provide that the recipient agrees to the
following:
1. To carry out the program in accordance with the provisions of
this NOFA, applicable law, the approved application, and all other
applicable requirements, including requirements for mixed finance
development, and section 202 of OCRA if applicable;
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, including full cooperation with HUD's program
oversight contractor;
3. That HUD will require the grantee to demonstrate that the team
assembled to implement the HOPE VI program has a strong management and
development track record and has the capability to commence and carry
out a quality HOPE VI program. If the grantee fails to make this
demonstration to the satisfaction of HUD and its program oversight
manager, HUD will direct corrective actions as a condition of retaining
the grant; and
4. That HUD will require each grantee to execute a construction
contract within 18 months (or a period specified in the Grant
Agreement). Failure to obligate funds will result in the enforcement of
default remedies up to and including withdrawal of funding.
5. That each grantee will have established interim performance
goals and must complete the physical component of the HOPE VI
revitalization within 4 years of execution of the grant agreement. The
Secretary shall enforce this requirement through default remedies up to
and including withdrawal of funding that the PHA has not obligated. HUD
will
[[Page 18258]]
take into consideration those delays caused by factors beyond the
control of the grantee when enforcing these schedules.
The Grant Agreement will set forth the precise schedules of the
HOPE VI program and will also provide program rules, describe
requirements for implementation of the revitalization plan, and provide
any special conditions on the grantee, as applicable.
VIII. Applicability of Program Requirements
The development to be revitalized is a public housing development.
Accordingly, certain activities under the revitalization plan are
subject to statutory requirements applicable to public housing
developments under the U.S. Housing Act of 1937 (the 1937 Act), other
statutes, and the ACC. Within such restrictions, HUD seeks innovative
solutions to the long-standing problems of obsolete developments. In
order to satisfy any particular statutory requirement, a Grantee may
take measures as described in implementing regulations or, upon request
to HUD for a different approach, as otherwise approved in writing by
HUD. In the event that a program regulation or requirement conflicts
with a requirement established in this NOFA, the NOFA requirement
prevails.
The recipient must conduct the following activities, which may be
undertaken with HOPE VI grant funds, in accordance with the cited
program requirements or otherwise with HUD's written approval,
consistent with the 1997 Appropriations Act and this NOFA:
A. Demolition and disposition activity under the grant must be
conducted in accordance with 24 CFR part 970;
B. Public housing development activity (including on-site
reconstruction as well as off-site replacement housing) must be
conducted in accordance with 24 CFR part 941, including mixed finance
development in accordance with subpart F (published in the Federal
Register on May 2, 1996 (61 FR 19708, 19714)). HUD will distribute the
Mixed-Finance ACC Amendment to the recipients.
C. Replacement housing activity using Section 8 rental certificates
must be conducted in accordance with 24 CFR part 882, 887, and 982, as
applicable;
D. Replacement housing activity with units acquired or otherwise
provided for homeownership under section 5(h) of the 1937 Act must be
conducted in accordance with 24 CFR part 906;
E. Replacement housing activities provided through housing
opportunity programs of construction or substantial rehabilitation of
homes must be conducted in accordance with 24 CFR part 280 (the
Nehemiah Program);
F. Rehabilitation and physical improvement activities must be
conducted in accordance with 24 CFR 968.112 (b), (d), (e), and (g)-(o),
24 CFR 968.130, and 24 CFR 968.135 (b) and (d). These provisions were
published in the Federal Register on March 5, 1996 (61 FR 8712, 8738),
and are included in the May 1, 1996 codification of the Code of Federal
Regulations.
G. The administration and operation of units must be in accordance
with all existing public housing rules and regulations.
PHAs may request, for the revitalized development, a waiver of HUD
regulations (that are not statutory requirements) governing rents,
income eligibility, or other areas of public housing management to
permit a PHA to undertake measures that enhance the long-term viability
of a development revitalized under this program.
IX. Applicability of Other Federal Requirements
A. Flood Insurance
In accordance with the Flood Disaster Protection Act of 1973 (42
U.S.C. 4001-4128), HUD will not approve applications for grants
providing financial assistance for acquisition or construction
(including rehabilitation) of properties located in an area identified
by the Federal Emergency Management Agency (FEMA) as having special
flood hazards, unless:
1. The community in which the area is situated is participating in
the National Flood Insurance program (see 44 CFR parts 59 through 79),
or less than one year has passed since FEMA notification regarding such
hazards; and
2. Where the community is participating in the National Flood
Insurance Program, flood insurance is obtained as a condition of
approval of the application.
B. Coastal Barrier Resources Act
In accordance with the Coastal Barrier Resources Act (16 U.S.C.
3501), HUD will not approve grant applications for properties in the
Coastal Barrier Resources System.
C. Fair Housing Requirements
Recipients must 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.
D. Nondiscrimination on the Basis of Age or Handicap
Recipients must 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,
persons with disabilities 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.
E. Employment Opportunities
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 apply to this program.
F. Minority and Women's Business Enterprises
The requirements of Executive Orders 11246, 11625, 12432, and 12138
apply to this program. Consistent with HUD's responsibilities under
these orders, recipients must make efforts to encourage the use of
minority and women's business enterprises in connection with funded
activities.
G. 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), as
modified by 24 CFR 941, subpart F relating to the procurement of
partners in mixed-finance developments, apply to the award, acceptance,
and use of assistance under the program 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.
Recipients are also subject to the audit requirements of OMB Circular
A-128 implemented at 24 CFR part 44. Copies of OMB Circulars may be
obtained from
[[Page 18259]]
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.
H. Drug-Free Workplace
Applicants must certify that they will provide a drug-free
workplace, in accordance with the Drug-free Workplace Act of 1988 and
HUD's implementing regulations at 24 CFR part 24, subpart F.
I. 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.
J. Conflict of Interest
1. 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 an HOPE VI grant, or who is in a position to participate
in a decisionmaking 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.
2. HUD may grant an exception to the exclusion in paragraph (1) of
this section on a case-by-case basis when it determines that such an
exception will serve to further the purposes of the revitalization
demonstration and the effective and efficient administration of the
revitalization program. HUD will consider an exception only after the
applicant or recipient has provided a disclosure of the nature of the
conflict, accompanied by an assurance that there has been public
disclosure of the conflict and a description of how the public
disclosure was made, and an opinion of the applicant's or recipient's
attorney that the interest for which the exception is sought would not
violate State or local laws. In determining whether to grant a
requested exception, HUD will consider the cumulative effect of the
following factors, as applicable:
a. Whether the exception would provide a significant cost benefit
or an essential degree of expertise to the revitalization program that
would otherwise not be available;
b. Whether an opportunity was provided for open competitive bidding
or negotiation;
c. Whether the person affected is a member of a group or class
intended to be the beneficiaries of the activity, and the exception
will permit such person to receive generally the same interest or
benefits as are being made available or provided to the group or class;
d. Whether the affected person has withdrawn from his or her
functions or responsibilities, or the decisionmaking process, with
respect to the specific activity in question;
e. Whether the interest or benefit was present before the affected
person was in a position as described in paragraph 1 of this section;
f. Whether undue hardship will result either to the applicant,
recipient, or the person affected when weighed against the public
interest served by avoiding the prohibited conflict; and
g. Any other relevant considerations.
K. Labor Standards
Where HOPE VI funds provide assistance with respect to low-income
housing (including Section 8 housing) that will be subject to a
contract for assistance under the U.S. Housing Act of 1937, Davis-Bacon
or HUD-determined wage rates apply to development or operation of the
housing to the extent required under section 12 of the Act. Under
section 12, the wage rate requirements do not apply to individuals who:
perform services for which they volunteered; do not receive
compensation for those services or are paid expenses, reasonable
benefits, or a nominal fee for the services; and are not otherwise
employed in the work involved (24 CFR part 70). In addition, if other
Federal programs are used in connection with the revitalization
program, labor standards requirements apply to the extent required by
such other Federal programs, on portions of the development that are
not subject to Davis-Bacon rates under the U.S. Housing Act.
L. Lead-Based Paint Testing and Abatement
Any property assisted under the revitalization program established
under this NOFA is covered by the Lead-Based Paint Poisoning Prevention
Act (42 U.S.C. 4821 et seq.) and is therefore subject to 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.
M. Relocation
1. 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 this program.
2. Temporary Relocation. The recipient must provide each resident
of an eligible property, who is required to relocate temporarily to
permit work to be carried out, with suitable, decent, safe, and
sanitary housing for the temporary period, and must reimburse the
resident for all reasonable out-of-pocket expenses incurred in
connection with the temporary relocation, including the costs of moving
to and from the temporarily occupied housing and any increase in
monthly costs of rent and utilities.
X. Findings and Certifications
A. Paperwork Reduction Act
The information collection requirements of this NOFA (including
Forms HUD-52825-A and HUD-52820- A required by Sections VI.L.1.a and
VI.N.3 of this NOFA) have been submitted to the Office of Management
and Budget (OMB) for review in accordance with the emergency processing
procedures of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520)
and 5 CFR 1320.13. 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. The OMB control number,
when assigned, will be announced by separate notice in the Federal
Register.
B. Environmental Review
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
implementing section 102(2)(C) of the National Environmental Policy Act
of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is
available for public inspection and copying between 7:30 am and 5:30 pm
weekdays at the Office of the Rules Docket Clerk, 451 Seventh Street,
SW, Room 10276, Washington, DC 20410.
C. Impact on the Family
The General Counsel, as the Designated Official for Executive Order
12606, The Family, has determined that the policies announced in this
NOFA will not have the potential for significant impact on family
formation, maintenance, and general well-being within the meaning of
the order. No significant change in existing HUD
[[Page 18260]]
policies and programs will result from the issuance of this NOFA, as
those policies and programs relate to family concerns. To the extent
that there is impact on the family, revitalization under this program
can be expected to support families by enabling low-income families to
live in decent, safe, and sanitary housing.
D. 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, on their political
subdivisions, or on their relationship with the Federal Government, or
on the distribution of power and responsibilities between them and
other levels of government. While this NOFA offers financial assistance
to units of general local government, none of its provisions will have
an effect on the relationship between the Federal Government and the
States, or the States' political subdivisions.
E. Accountability in the Provision of HUD Assistance
Section 102 of the Department of Housing and Urban Development
Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24
CFR part 4, subpart A, published on April 1, 1996 (61 FR 1448), contain
a number of provisions that are designed to ensure greater
accountability and integrity in the provision of certain types of
assistance administered by HUD. On January 14, 1992, HUD published, at
57 FR 1942, a notice that also provides information on the
implementation of section 102. The documentation, public access, and
disclosure requirements of section 102 are applicable to assistance
awarded under this NOFA as follows:
Documentation and public access requirements. HUD will ensure that
documentation and other information regarding each application
submitted pursuant to this NOFA are sufficient to indicate the basis
upon which assistance was provided or denied. This material, including
any letters of support, will be made available for public inspection
for a five-year period beginning not less than 30 days after the award
of the assistance. Material will be made available in accordance with
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. In addition, HUD will include the
recipients of assistance pursuant to this NOFA in its Federal Register
notice of all recipients of HUD assistance awarded on a competitive
basis.
Disclosures. HUD will make available to the public for five years
all applicant disclosure reports (HUD Form 2880) submitted in
connection with this NOFA. Update reports (also Form 2880) will be made
available along with the applicant disclosure reports, but in no case
for a period less than three years. All reports--both applicant
disclosures and updates--will be made available in accordance with the
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15.
F. Section 103 of the HUD Reform Act
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 Office
Counsel, or Headquarters counsel for the program to which the question
pertains.
G. 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.
H. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance program number is
14.864.
Dated: March 27, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-9547 Filed 4-11-97; 8:45 am]
BILLING CODE 4210-33-P
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.