Super Notice of Funding Availability (SuperNOFA) for Economic Development and Empowerment Programs

SUMMARY: This Super Notice of Funding Availability (SuperNOFA)

announces the availability of approximately $176,000,000 in HUD program

funds covering ten (10) Economic Development and Empowerment Programs

operated and managed by the following HUD Offices: Community Planning

and Development (CPD), Housing-Federal Housing Administration (FHA),

Public and Indian Housing (PIH), and the Office of Lead Hazard Control

(OLHC). The General Section of this SuperNOFA contains the procedures

and requirements applicable to all programs. The applications for

funding for these programs have been consolidated into four

applications. The Programs Section of this SuperNOFA contains a

description of the specific programs for which funding is made

available under this SuperNOFA and additional procedures and

requirements that are applicable to each.

APPLICATION DUE DATES: The information contained in this ``APPLICATION

DUE DATES'' section applies to all programs contained in this

SuperNOFA. Completed applications must be submitted to HUD no later

than the deadline established for the program for which you are seeking

funding. Applications may not be sent by facsimile (FAX). See the

Program Chart for specific application due dates.

ADDRESSES AND APPLICATION SUBMISSION PROCEDURES: Addresses. Completed

applications must be submitted to the location specified in the

Programs Section of this SuperNOFA. When submitting your application,

please refer to the program name for which you are seeking funding.

For Applications to HUD Headquarters. Applications to be submitted

to HUD Headquarters are due at: Department of Housing and Urban

Development, 451 Seventh Street, SW, Room ________ (See Program Chart

or Programs Section for room location), Washington DC 20410.

For Applications to HUD Field Offices. For those programs for which

applications are due to the HUD Field Offices, please see the Programs

Section for the locations for submission.

Applications Procedures--Mailed Applications. Applications will be

considered timely filed if postmarked on or before 12:00 midnight on

the application due date and received by the designated HUD Office on

or within ten (10) days of the application due date.

Applications Sent by Overnight/Express Mail Delivery. Applications

sent by overnight delivery or express mail will be considered timely

filed if received before or on the application due date, or upon

submission of documentary evidence that they were placed in transit

with the overnight delivery service by no later than the specified

application due date.

Hand Carried Applications. For applications submitted to HUD

Headquarters, hand carried applications delivered before and on the

application due date must be brought to the specified location and room

number between the hours of 8:45 am to 5:15 pm, Eastern time.

Applications hand carried on the application due date will be accepted

in the South Lobby of the HUD Headquarters Building at the above

address from 5:15 pm until 12:00 midnight, Eastern time. Applications

due to HUD Field Office or Area Office of Native American Programs

locations must be delivered to the appropriate HUD Field Office or Area

Office of Native American Programs in accordance with the instructions

specified in the Programs Section of the SuperNOFA.

For applications submitted to the HUD Field Offices or Area Offices

of Native American Programs, hand carried applications will be accepted

during normal business hours before the application due date. On the

application due date, business hours will be extended to 6:00 pm.

(Please see the Appendix A to this SuperNOFA listing the hours of

operations for the HUD Field Offices.) COPIES OF APPLICATIONS TO HUD

OFFICES. The Programs Section of this SuperNOFA may specify that, to

facilitate processing and review of your submission, a copy of the

application also be sent to an additional HUD location (for example, a

copy to the HUD Field Office or Area Office of Native American Programs

if the original application is to be submitted to HUD Headquarters, or

a copy to HUD Headquarters, if the original application is to be

submitted to a HUD Field Office or Area Office of Native American

Programs). Please follow the requirements of the Programs Section to

ensure that you submit your application to the proper location. HUD

requests additional copies in order to expeditiously review your

application and appreciates your assistance in providing the copies.

Please note that for those applications for which copies are being

submitted to the local HUD Offices and HUD Headquarters, timeliness of

submission will be based on the time the application is received at HUD

Headquarters.

FOR APPLICATION KITS, FURTHER INFORMATION AND TECHNICAL ASSISTANCE: The

information contained in this section is applicable to all programs

contained in this SuperNOFA, unless otherwise specifically provided in

the applicable programs section.

For Application Kits and SuperNOFA User Guide. HUD is pleased to

provide you with application kits and/or a guidebook to all HUD

programs. When requesting an application kit, please refer to the

program name of the application kit you are interested in receiving.

Please be sure to provide your name, address (including zip code), and

telephone number (including area code).

Requests for application kits should be made immediately to ensure

sufficient time for application preparation. We will distribute

application kits as soon as they become available.

The SuperNOFA Information Center (1-800-HUD-8929) can provide you

with assistance, application kits, and guidance in determining which

HUD Office(s) should receive a copy of your application. Persons with

hearing or speech impairments may call the Center's TTY number at 1-

800-HUD-2209.

Consolidated Application Submissions. Where an applicant can apply

for funding under more than one program in this SuperNOFA, the

applicant need only submit one originally signed SF-424 and one set of

original signatures for the other required assurances and

certifications, accompanied by the matrix contained in each application

kit (provided that the required assurances and certifications are

identical). As long as the applicant submits one originally signed set

of these documents with an application, only copies of these documents

are required to be submitted with any additional application submitted

by the applicant. The application should identify the program for which

the original signatures for assurances and certifications is being

submitted.

For Further Information. For answers to your questions about this

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SuperNOFA, you have several options. You may call the HUD Office or

Processing Center serving your area at the telephone number listed in

your program area section to this SuperNOFA, or you may contact the

SuperNOFA Information Center at 1-800-HUD-8929. Persons with hearing or

speech impairments may call the Center's TTY number at 1-800-HUD-2209.

Information on this SuperNOFA also may be obtained through the HUD web

site on the Internet at http://www.HUD.gov.

For Technical Assistance. Before the application due date, HUD

staff will be available to provide general guidance and technical

assistance about this SuperNOFA. Current law does not permit HUD staff

to assist in preparing the application. Following selection of

applicants, but prior to award, HUD staff will be available to assist

in clarifying or confirming information that is a prerequisite to the

offer of an award or Annual Contributions Contract (ACC) by HUD.

Introduction To The SuperNOFA Process

To further HUD's objective, under the direction of Secretary Andrew

Cuomo, of improving customer service and providing the necessary tools

for revitalizing communities and improving the lives of people within

those communities, HUD will publish three SuperNOFAs in 1998, which

coordinate program funding for 40 competitive programs and cut across

traditional program lines.

(1) The first is the SuperNOFA and consolidated application process

for Housing and Community Development Programs, covering 19 Housing and

Community Development Programs. This SuperNOFA was published in the

Federal Register on March 31, 1998.

(2) The second is the SuperNOFA and consolidated application

process for Economic Development and Empowerment Programs, published in

today's Federal Register. This second SuperNOFA includes funding for

the following programs and initiatives: Brownfields; Economic

Development Initiative; Youthbuild; three Tenant Opportunity Programs;

Economic Development and Supportive Services; Mark to Market Outreach

and Training; Mark to Market Technical Assistance Intermediaries Grant

Administration; and the Local Lead Hazard Awareness Campaign.

(3) The third is the SuperNOFA and consolidated application process

for Targeted Housing and Homeless Assistance Programs. This third

SuperNOFA includes the following programs and initiatives: Housing

Opportunities for Persons with AIDS; Continuum of Care Homeless

Assistance Programs; Section 202 Supportive Housing for the Elderly;

and Section 811 Supportive Housing for Persons with Disabilities. This

third SuperNOFA is published elsewhere in today's Federal Register.

All three SuperNOFAs and all consolidated applications, to the

greatest extent possible, given statutory, regulatory and program

policy distinctions, will have one set of rules that, together, offer a

``menu'' of approximately 40 programs. From this menu, communities will

be made aware of funding available for their jurisdictions. Nonprofits,

public housing agencies, local and State governments, tribal

governments and tribally designated housing entities, veterans service

organizations, faith-based organizations and others will be able to

identify the programs for which they are eligible for funding.

The National Competition NOFA

In addition to the three SuperNOFAs, HUD is publishing elsewhere in

today's Federal Register a single NOFA for three national competitions:

the Fair Housing Initiatives Program National Competition; the National

Lead Hazard Awareness Campaign; and the Housing Counseling National

Competition.

Assisting Communities To Make Better Use of Available Resources

These SuperNOFAs represent a marked departure from, and HUD

believes a significant improvement over, HUD's past approach to the

funding process. In the past, HUD has issued as many as 40 separate

NOFAs, all with widely varying rules and application processing

requirements. This individual program approach to funding, with NOFAs

published at various times throughout the fiscal year, did not

encourage and, at times, unintentionally impeded local efforts directed

at comprehensive planning and development of comprehensive local

solutions. Additionally, the old approach seemed to require communities

to respond to HUD's needs rather than HUD responding to local needs.

Secretary Cuomo brings to the leadership of HUD the experience of

successfully implementing a consolidated planning process in HUD's

community development programs. As Assistant Secretary for Community

Planning and Development, Secretary Cuomo consolidated the planning,

application, and reporting requirements of several community

development programs. The Consolidated Plan rule, published in 1995,

established a renewed partnership among HUD, State, and local

governments, public and private agencies, tribal governments, and the

general citizenry by empowering field staff to work with other entities

in fashioning creative solutions to community problems.

The SuperNOFA approach builds upon Consolidated Planning

implemented by Secretary Cuomo in HUD's community development programs,

and also reflects the Secretary's organizational changes for HUD, as

described in the Secretary's management reform plan. On June 26, 1997,

Secretary Cuomo released the HUD 2020 Management Reform Plan, which

calls for significant consolidation of like programs to maximize

efficiency and dramatically improve customer service. The plan also

calls for HUD to improve customer service by adopting a principle of

``menus not mandates.''

By announcing the funding of these ten programs in one NOFA, HUD

hopes to assist communities in making better use of available resources

to address their economic development needs and the needs of those

living within the communities in a holistic and effective fashion.

These funds are available for eligible applicants to support individual

program objectives, as well as cross-cutting and coordinated approaches

to improving the overall effective use of available HUD program funds.

To date, HUD has been consolidating and simplifying the submission

requirements of many of its formula grant and discretionary grant

programs to offer local communities a better opportunity to shape

available resources into effective and coordinated neighborhood housing

and community development strategies that will help revitalize and

strengthen their communities, physically, socially and economically. To

complement this overall consolidation and simplification effort, HUD

designed this process to increase the ability of applicants to consider

and apply for funding under a wide variety of HUD programs in response

to a single NOFA. Everyone interested in HUD's grant programs can

benefit from having this information made available in one NOFA.

Coordination, Flexibility, and Simplicity in the HUD Funding Process

The SuperNOFA approach places heavy emphasis on the coordination of

activities to provide (1) greater flexibility and responsiveness in

meeting local housing and community development needs, and (2) greater

flexibility to eligible applicants to determine what HUD program

resources

[[Page 23878]]

best fit the community's needs, as identified in local Consolidated

Plans and Analysis of Impediments to Fair Housing Choice (``Analysis of

Impediments'' (AI)).

The SuperNOFA approach is designed to simplify the application

process; promote effective and coordinated use of program funds in

communities; reduce duplication in the delivery of services and

economic development and empowerment programs; allow interested

applicants to seek to deliver a wider, more integrated array of

services; and improve the system for potential grantees to be aware of,

and compete for program funds.

HUD encourages applicants to work together to coordinate and, to

the maximum extent possible, join their activities to form a seamless

and comprehensive program of assistance to meet identified needs in

their communities, and address barriers to fair housing and equal

opportunity that have been identified in the community's Consolidated

Plan and Analysis of Impediments in the geographic area(s) in which

they are seeking assistance.

As part of the simplification of this funding process, and to avoid

duplication of effort, the SuperNOFA provides for consolidated

applications for several of the programs for which funding is available

under this NOFA. HUD programs that provide assistance for, or

complement similar activities, for example, the economic development

initiative (EDI) and the brownfields economic development initiative

(BEDI), or the tenant opportunity and economic development supportive

services programs, have consolidated applications that reduce the

administrative and paperwork burden applicants may otherwise encounter

in submitting an application for each program.

The funding of these ten programs through this SuperNOFA will not

affect the ability of eligible applicants to seek HUD funding. Eligible

applicants are able, as they have been in the past, to apply for

funding under as few as one or as many as all programs for which they

are eligible.

The specific statutory and regulatory requirements of each of the

ten separate programs continue to apply to each program. The SuperNOFA

reflects, where necessary, the statutory requirements and differences

applicable to the specific programs. Please pay careful attention to

the individual program requirements that are identified for each

program. Also, you will note that not all applicants are eligible to

receive assistance under all ten programs identified in this SuperNOFA.

The SuperNOFA contains two major sections. The General Section of

the SuperNOFA contains the procedures and requirements applicable to

all applications. The Programs Section of the SuperNOFA describes each

program for which funding is made available in the NOFA. As in the

past, each program provides a description of eligible applicants,

eligible activities, factors for award, and any additional requirements

or limitations that apply to the program. Please read carefully both

the General Section and the Programs Section of the SuperNOFA for the

program(s) to which you are applying. This will ensure that you apply

for program funding for which your organization is eligible to receive

funds and you fulfill all the requirements for that program(s).

The Programs of This SuperNOFA and the Amount of Funds Allocated

The ten programs for which funding availability is announced in

this SuperNOFA are identified in the following chart. The approximate

available funds for each program are listed as expected funding levels

based on appropriated funds. Should recaptured or other funds become

available for any program, HUD reserves the right to increase the

available program funding amounts by the amount available.

The chart also includes the application due date for each program,

the OMB approval number for the information collection requirements

contained in the specific program, and the Catalog of Federal Domestic

Assistance (CFDA) number.

BILLING CODE 4210-32-P

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BILLING CODE 4210-32-C

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Paperwork Reduction Act Statement

For those programs listed in the chart above which have OMB

approval numbers, the information collection requirements contained in

this SuperNOFA for those programs have been approved by the Office of

Management and Budget (OMB) in accordance with the Paperwork Reduction

Act of 1995 (44 U.S.C. 3501-3520). For those programs listed in the

chart for which an OMB approval number is pending, the approval number

when received will be announced by HUD in the Federal Register. 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.

General Section of the SuperNOFA

I. Authority; Purpose; Amount Allocated; Eligible Applicants and

Eligible Activities

(A) Authorities

Unless otherwise specified in the Programs Section of the

SuperNOFA, the authority for Fiscal Year 1998 funding availability

under this SuperNOFA is the Department of Veterans Affairs and Housing

and Urban Development and Independent Agencies Appropriations Act, 1998

(Pub.L. 105-65, approved October 27, 1997) (FY 1998 HUD Appropriations

Act). Where applicable, additional authority for each program in this

SuperNOFA is identified in the Programs Section.

(B) Purpose

The purpose of this SuperNOFA is to:

(1) Make funding available through a variety of programs to empower

communities and their residents, particularly the poor and

disadvantaged, to develop viable communities, provide decent housing

and a suitable living environment for all citizens, without

discrimination in order to improve themselves both as individuals and

as a community.

(2) Simplify and streamline the application process for funding

under HUD programs. By making available to State and local governments,

public housing agencies, tribal governments, non-profit organizations

and others, the application requirements for HUD housing and community

development programs in one NOFA, HUD hopes that the result will be a

less time consuming and less complicated application process. This new

process also allows an applicant to submit one application for funds

for several programs. Except where statutory or regulatory requirements

or program policy mandate differences, the SuperNOFA strives to provide

for one set of rules, standardized rating factors, and uniform and

consolidated application procedures.

(3) Enhance the ability of applicants to make more effective and

efficient use of housing and community development funding when

addressing community needs and implementing coordinated housing and

community development strategies established in local Consolidated

Plans, which is the single application for HUD housing and community

development and other formula funds submitted by the local or State

government. Through this SuperNOFA process, applicants are encouraged

to: (i) create opportunities for strategic planning and citizen

participation in a comprehensive context at the local level in order to

establish a full continuum of housing and services; and (ii) promote

methods for developing more coordinated and effective approaches to

dealing with urban, suburban, and rural problems by recognizing the

interconnections among the underlying problems and ways to address them

through layering of available HUD programs;

(4) Promote the ability of eligible non-profit organizations to

participate in many of the programs contained in this SuperNOFA;

provide an increased opportunity to assist communities in developing

job training, economic development and empowerment programs, directed

at revitalizing neighborhoods and obtaining self-sufficiency for low

and moderate income families; and

(5) Recognize and make better use of the expertise that each of the

programs, and organizations eligible for funding under this SuperNOFA,

can contribute when developing and implementing local housing and

community development plans, the Consolidated Plan, and the HUD

required Analysis of Impediments to Fair Housing Choice.

(C) Amounts Allocated

The amounts allocated to specific programs in this SuperNOFA are

based on appropriated funds. Should recaptured funds become available

in any program, HUD reserves the right to increase the available

funding amounts by the amount of funds recaptured.

(D) Eligible Applicants and Eligible Activities

The eligible applicants and eligible activities for each program

are identified and described for the program in the Programs Section of

the SuperNOFA.

II. Requirements and Procedures Applicable to all Programs

Except as may be modified in the Programs Section of this Super

NOFA, or as noted within the specific provisions of this Section II,

the following principles apply to all programs. Please be sure to read

the program area section of the SuperNOFA for additional requirements

or information.

(A) Statutory Requirements

All applicants must meet and comply with all statutory and

regulatory requirements applicable to the program for which they are

seeking funding in order to be awarded funds. Copies of the regulations

are available from the SuperNOFA Information Center or through the

Internet at http://www.HUD.gov. HUD may reject an application from

further funding consideration if the activities or projects proposed

are ineligible, or HUD may eliminate the ineligible activities from

funding consideration and reduce the grant amount accordingly.

(B) Threshold Requirements--Compliance With Fair Housing and Civil

Rights Laws

All applicants, with the exception of Federally recognized Indian

tribes, must comply with all Fair Housing and civil rights laws,

statutes, regulations and executive orders as enumerated in 24 CFR

5.105(a). Federally recognized Indian tribes must comply with the Age

Discrimination Act of 1975, Section 504 of the Rehabilitation Act of

1973, and the Indian Civil Rights Act. If an applicant (1) has been

charged with a violation of the Fair Housing Act by the Secretary; (2)

is the defendant in a Fair Housing Act lawsuit filed by the Department

of Justice; or (3) has received a letter of noncompliance findings

under Title VI of the Civil Rights Act, Section 504 of the

Rehabilitation Act, or Section 109 of the Housing and Community

Development Act, the applicant is not eligible to apply for funding

under this SuperNOFA until the applicant resolves such charge, lawsuit,

or letter of findings to the satisfaction of the Department.

(C) Additional Nondiscrimination Requirements

Applicants must comply with the Americans with Disabilities Act,

and Title IX of the Education Amendments Act of 1972.

[[Page 23882]]

(D) Affirmatively Furthering Fair Housing

Unless otherwise specified in the Programs Section of this

SuperNOFA, each successful applicant will have a duty to affirmatively

further fair housing. Where directed by the applicable program section,

applicants should include in their work plans the specific steps that

they will take to (1) address the elimination of impediments to fair

housing that were identified in the jurisdiction's Analysis of

Impediments (AI) to Fair Housing Choice; (2) remedy discrimination in

housing; or (3) promote fair housing rights and fair housing choice.

Further, applicants have a duty to carry out the specific activities

cited in their responses to the rating factors that address

affirmatively furthering fair housing in the Programs Section of this

SuperNOFA.

(E) Economic Opportunities for Low and Very Low-Income Persons (Section

3).

Certain programs in this SuperNOFA require recipients of HUD

assistance to comply with section 3 of the Housing and Urban

Development Act of 1968, 12 U.S.C. 1701u (Economic Opportunities for

Low and Very Low-Income Persons) and the HUD regulations at 24 CFR part

135, including the reporting requirements subpart E. Section 3 provides

that recipients shall ensure that training, employment and other

economic opportunities, to the greatest extent feasible, be directed to

(1) low and very low income persons, particularly those who are

recipients of government assistance for housing and (2) business

concerns which provide economic opportunities to low and very low

income persons. Section 3 is applicable to the following programs in

this SuperNOFA: Brownfields Economic Development; Economic Development

Initiative; Economic Development and Supportive Services; Tenant

Opportunity Program; and Youthbuild.

(F) Relocation

Any person (including individuals, partnerships, corporations or

associations) who moves from real property or moves personal property

from real property as a direct result of a written notice to acquire or

the acquisition of the real property, in whole or in part, for a HUD-

assisted activity is covered by acquisition policies and procedures and

the relocation requirements of the Uniform Relocation Assistance and

Real Property Acquisition Policies Act of 1970, as amended (URA), and

the implementing governmentwide regulation at 49 CFR part 24. Any

person who moves permanently from real property or moves personal

property from real property as a direct result of rehabilitation or

demolition for an activity undertaken with HUD assistance is covered by

the relocation requirements of the URA and the governmentwide

regulation.

(G) Forms, Certifications and Assurances

Each applicant is required to submit signed copies of the standard

forms, certifications, and assurances, listed in this section, unless

the Programs Section specifies otherwise. Additionally, the Programs

Section may specify additional forms, certifications, assurances, or

other information, that may be required for a particular program in

this SuperNOFA.

(1) Standard Form for Application for Federal Assistance (SF-424);

(2) Standard Form for Budget Information--Non-Construction Programs

(SF-424A) or Standard Form for Budget Information-Construction Programs

(SF-424C), as applicable;

(3) Standard Form for Assurances--Non-Construction Programs (SF-

424B) or Standard Form for Assurances--Construction Programs (SF-424D),

as applicable;

(4) Drug-Free Workplace Certification (HUD-50070);

(5) Certification and Disclosure Form Regarding Lobbying (SF-LLL);

(Tribes and tribally designated housing entities (THDEs) established by

an Indian tribe as a result of the exercise of the tribe's sovereign

power are not required to submit this certification. Tribes and TDHEs

established under State law are required to submit this certification.)

(6) Applicant/Recipient Disclosure Update Report (HUD-2880);

(7) Certification that the applicant will comply with the

requirements of the Fair Housing Act, Title VI of the Civil Rights Act

of 1964, section 504 of the Rehabilitation Act of 1973, and the Age

Discrimination Act of 1975, and will affirmatively further fair

housing. CDBG recipients also must certify to compliance with section

109 of the Housing and Community Development Act. Federally recognized

Indian tribes must certify that they will comply with the requirements

of the Age Discrimination Act of 1975, section 504 of the

Rehabilitation Act of 1973, and the Indian Civil Rights Act.

(8) Certification required by 24 CFR 24.510. (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, and a certification is required.)

(H) OMB Circulars

The policies, guidances, and requirements of OMB Circular No. A-87

(Cost Principles Applicable to Grants, Contracts and Other Agreements

with State and Local Governments), OMB Circular No. A-122 (Cost

Principles for Nonprofit Organizations), 24 CFR part 84 (Grants and

Agreements with Institutions of Higher Education, Hospitals, and other

Non-Profit Organizations) and 24 CFR part 85 (Administrative

Requirements for Grants and Cooperative Agreements to State, Local, and

Federally recognized Indian tribal governments) apply to the award,

acceptance and use of assistance under the programs of this SuperNOFA,

and to the remedies for noncompliance, except when inconsistent with

the provisions of the FY 1998 HUD Appropriations Act, other Federal

statutes or the provisions of this SuperNOFA. Compliance with

additional OMB Circulars may be specified for a particular program in

the Programs Section of the SuperNOFA. Copies of the OMB Circulars may

be obtained from EOP Publications, Room 2200, New Executive Office

Building, Washington, DC 10503, telephone (202) 395-7332 (this is not a

toll free number).

(I) Environmental Requirements

For programs under this SuperNOFA that assist physical development

activities or property acquisition, grantees are generally prohibited

from acquiring, rehabilitating, converting, leasing, repairing or

constructing property, or committing or expending HUD or non-HUD funds

for these program activities, until one of the following has occurred:

(1) HUD has completed an environmental review in accordance with 24 CFR

part 50; or (2) for programs subject to 24 CFR part 58, HUD has

approved a grantee's Request for Release of Funds (HUD Form 7015.15)

following a Responsible Entity's completion of an environmental review.

Applicants should consult the Programs Section for the applicable

program to determine the procedures for, timing of, and any exclusions

from environmental review under a particular program.

(J) Conflicts of Interest

Consultants or experts assisting HUD in rating and ranking

applicants for funding under this SuperNOFA are subject to 18 U.S.C.

208, the Federal criminal conflict of interest statute, and

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to the Standards of Ethical Conduct for Employees of the Executive

Branch regulation published at 5 CFR part 2635. As a result,

individuals who have assisted or plan to assist applicants with

preparing applications for this SuperNOFA may not serve on a selection

panel or as a technical advisor to HUD for this SuperNOFA. All

individuals involved in rating and ranking this SuperNOFA, including

experts and consultants, must avoid conflicts of interest or the

appearance of conflicts. If the selection or non-selection of any

applicant under this NOFA affects the individual's financial interests

set forth in 18 U.S.C. 208 or involves any party with whom the

individual has a covered relationship under 5 CFR 2635.502, that

individual must, prior to participating in any matter regarding this

NOFA, disclose this fact to the General Counsel or the Ethics Law

Division.

III. Application Selection Process

(A) General

To review and rate applications, HUD may establish panels including

persons not currently employed by HUD to obtain certain expertise and

outside points of view, including views from other Federal agencies.

(1) Rating. All applications for funding in each program listed in

this SuperNOFA will be evaluated and rated against the criteria in this

SuperNOFA. The rating of the ``applicant'' or the ``applicant's

organization and staff'' for technical merit or threshold compliance,

unless otherwise specified, will include any sub-contractors,

consultants, sub-recipients, and members of consortia which are firmly

committed to the project.

(2) Ranking. Applicants will be ranked within each program.

Applicants will be ranked only against others that applied for the same

program funding and where there are set-asides within the competition,

the applicant would only compete against applicants in the same set-

aside competition.

(B) Threshold Requirements

HUD will review each application to determine whether the

application meets all of the threshold criteria described for program

funding made available under this SuperNOFA. Applications that meet all

of the threshold criteria will be eligible to be rated and ranked,

based on the criteria described, and the total number of points to be

awarded.

(C) Factors for Award Used To Evaluate and Rate Applications

For all of the programs for which funding is available under this

SuperNOFA, the points awarded for the factors total 100. Where

applicable (as provided in the Programs Section of the SuperNOFA),

applicants may be eligible for additional points as discussed in this

Section III(C).

(1) Bonus Points. The SuperNOFA provides for the award of up to two

bonus points for eligible activities/projects that are proposed to be

located in federally designated Empowerment Zones, Enterprise

Communities, or Urban Enhanced Enterprise Communities, and serve the

EZ/EC residents, and are certified to be consistent with the strategic

plan of the EZs and ECs. The application kit contains a certification

which must be completed for the applicant to be considered for EZ/EC

bonus points. In the BEDI competition, two bonus points are available

for federally designated Brownfields Showcase Communities. (Please see

BEDI section of this SuperNOFA for additional information). A listing

of the federally designated EZs, ECs, Enhanced ECs and Brownfields

Showcase Communities are available from the SuperNOFA Information

Center, or through the HUD web site on the Internet at http://

www.HUD.gov.

(2) Court-Ordered Consideration. Due to an order of the U.S.

District Court for the Northern District of Texas, Dallas, Division,

with respect to any application by the City of Dallas, Texas, for HUD

funds, HUD shall consider the extent to which the strategies or plans

in an application or applications submitted by the City of Dallas for

any program under this SuperNOFA will be used to eradicate the vestiges

of segregation in the Dallas Housing Authority's low income housing

programs. The City of Dallas should address the effect, if any, that

vestiges of racial segregation in Dallas Housing Authority's low income

housing programs have on potential participants in the programs covered

by this NOFA, and identify proposed actions for remedying those

vestiges. HUD may add up to 2 points to the score for any program based

on this consideration, as provided in Factor 3 by the individual

programs in the Programs Section of this SuperNOFA. (The points

provided in this Section III(C)(2) is limited to applications submitted

by the City of Dallas.)

(3) The Five Standard Rating Factors. The factors for rating and

ranking applicants are listed in this Section III(c)(2) and maximum

points for each factor, are provided in the Programs Section of the

SuperNOFA. Each applicant should carefully read the factors for award

as described in the program area section that they are seeking funding.

While HUD has established the following basic factors for award, these

may have been modified or adjusted to take into account specific

program needs, or statutory or regulatory limitations imposed on a

program. The standard factors for award, except as modified in the

program area section are:

Factor 1: Capacity of the Applicant and Relevant Organizational Staff

Factor 2: Need/Extent of the Problem

Factor 3: Soundness of Approach

Factor 4: Leveraging Resources

Factor 5: Comprehensiveness and Coordination

(D) Negotiation

After all applications have been rated and ranked and a selection

has been made HUD may require that all winners participate in

negotiations to determine the specific terms of the grant agreement and

budget. In cases where HUD cannot successfully conclude negotiations or

a selected applicant fails to provide HUD with requested information,

awards will not be made. In such instances, HUD may offer an award to

the next highest ranking applicant, and proceed with negotiations with

the next highest ranking applicant.

(E) Adjustments to Funding

HUD reserves the right to fund less than the full amount requested

in any application to ensure the fair distribution of the funds and to

ensure the purposes of the programs contained in this SuperNOFA are

met. HUD may choose not to fund portions of the applications that are

ineligible for funding under applicable program statutory or regulatory

requirements, or which do not meet the requirements of this General

Section of this SuperNOFA or the requirements in the Programs Section

for the specific program, and fund eligible portions of the

applications.

If funds remain after funding the highest ranking applications, HUD

may fund part of the next highest ranking application in a given

program area. If the applicant turns down the award offer, HUD will

make the same determination for the next highest ranking application.

If funds remain after all selections have been made, remaining funds

may be available for other competitions for each program area where

there is a balance of funds.

Additionally, in the event of a HUD procedural error that, when

corrected,

[[Page 23884]]

would result in selection of an otherwise eligible applicant during the

funding round of this SuperNOFA, HUD may select that applicant when

sufficient funds become available.

(F) Performance and Compliance Actions of Grantees

Performance and compliance actions of grantees will be measured and

addressed in accordance with applicable standards and sanctions of

their respective programs.

IV. Application Submission Requirements

As discussed earlier in the introductory section of this SuperNOFA,

part of the simplification of this funding process, is to reduce the

duplication of effort involved in completing and submitting similar

applications for HUD funded programs. This SuperNOFA provides for

consolidated applications for several of the programs for which funding

is available under this SuperNOFA.

V. Corrections to Deficient Applications

After the application due date, HUD may not, consistent with 24 CFR

part 4, subpart B, consider unsolicited information from an applicant.

HUD may contact an applicant, however, to clarify an item in the

application or to correct technical deficiencies. Applicants should

note, however, that HUD may not seek clarification of items or

responses that improve the substantive quality of the applicant's

response to any eligibility or selection criterion. Examples of curable

technical deficiencies include failure to submit the proper

certifications or failure to submit an application containing an

original signature by an authorized official. In each case, HUD will

notify the applicant in writing by describing the clarification or

technical deficiency. HUD will notify applicants by facsimile or by

return receipt requested. Applicants must submit clarifications or

corrections of technical deficiencies in accordance with the

information provided by HUD within 14 calendar days of the date of

receipt of the HUD notification. If the deficiency is not corrected

within this time period, HUD will reject the application as incomplete.

VI. Promoting Comprehensive Approaches to Housing and Community

Development

(A) General

HUD believes the best approach for addressing community problems is

through a community-based process that provides a comprehensive

response to identified needs. By making HUD's Economic Development and

Empowerment funding available in one NOFA, applicants may be able to

relate the activities proposed for funding under this SuperNOFA to the

recent and upcoming NOFAs and the community's Consolidated Plan and

Analysis of Impediments to Fair Housing Choice. 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.

(B) Linking Program Activities With AmeriCorps

Applicants are encouraged to link their proposed activities with

AmeriCorps, a national service program engaging thousands of Americans

on a full or part-time basis to help communities address their toughest

challenges, while earning support for college, graduate school, or job

training. For information about AmeriCorps, call the Corporation for

National Service at (202) 606-5000.

(C) Encouraging Visitability in New Construction and Substantial

Rehabilitation Activities

In addition to applicable accessible design and construction

requirements, applicants are encouraged to incorporate visitability

standards where feasible in new construction and substantial

rehabilitation projects involving housing. Visitability standards allow

a person with mobility impairments access into the home, but does not

require that all features be made accessible. Visitability means at

least one entrance at grade (no steps), approached by an accessible

route such as a sidewalk; the entrance door and all interior passage

doors are at least 2 feet 10 inches wide, allowing 32 inches of clear

passage space. Allowing use of 2'10'' doors is consistent with the Fair

Housing Act (at least for the interior doors), and may be more

acceptable than requiring the 3 foot doors that are required in fully

accessible areas under the Uniform Federal Accessibility Standards for

a small percentage of units. A visitable home also serves persons

without disabilities, such as a mother pushing a stroller, or a person

delivering a large appliance. Copies of the UFAS are available from the

Office of Fair Housing and Equal Opportunity, U.S. Department of

Housing and Urban Development, Room 5230, 451 Seventh Street, SW,

Washington, DC 20410, telephone (202) 755-5404 or the TTY telephone

number, 1-800-877-8399 (Federal Information Relay Service).

(D) Developing Healthy Homes

HUD's Healthy Homes Initiative is one of the initiatives developed

by the White House Task Force on Environmental Health Risks and Safety

Risks to Children that was established under Executive Order 13045

(``Protection of Children from Environmental Health Risks and Safety

Risks''). HUD encourages the funding of activities (to the extent

eligible under specific programs) that promote healthy homes, or that

promote education on what is a healthy home. These activities may

include, but are not limited to the following: educating homeowners or

renters about the need to protect children in their home from dangers

that can arise from items such as curtain cords, electrical outlets,

hot water, poisons, fire, and sharp table edges, among others;

incorporating child safety measures in the construction, rehabilitation

or maintenance of housing, which include but are not limited to: child

safety latches on cabinets, hot water protection devices, properly

ventilated windows to protect from mold, window guards to protect

children from falling, proper pest management to prevent cockroaches

which can cause asthma, and activities directed to control of lead-

based paint hazards. The National Lead Information Hotline is 1-800-

424-5323.

VII. Findings and Certifications

(A) Environmental Impact

A Finding of No Significant Impact with respect to the environment

has been made in accordance with HUD regulations at 24 CFR part 50 that

implement 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 during regular business hours in the

Office of the General Counsel, Regulations Division, Room 10276, U.S.

Department of Housing and Urban Development, 451 Seventh Street, SW,

Washington, DC 20410-0500.

(B) Federalism, Executive Order 12612

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

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

contained in this SuperNOFA will not have substantial direct effects on

States or their political subdivisions, or on the relationship between

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

and responsibilities among the various levels of government.

Specifically, the SuperNOFA solicits applicants to

[[Page 23885]]

expand their role in addressing community development needs in their

localities, and does not impinge upon the relationships between the

Federal government and State and local governments. As a result, the

SuperNOFA is not subject to review under the Order.

(C) Prohibition Against Lobbying Activities

Applicants for funding under this SuperNOFA are subject to the

provisions of section 319 of the Department of Interior and Related

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

Byrd Amendment), which prohibits 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. Applicants are

required to certify, using the certification found at Appendix A to 24

CFR part 87, that they will not, and have not, used appropriated funds

for any prohibited lobbying activities. In addition, applicants must

disclose, using Standard Form LLL, ``Disclosure of Lobbying

Activities,'' any funds, other than Federally appropriated funds, that

will be or have been used to influence Federal employees, members of

Congress, and congressional staff regarding specific grants or

contracts. Tribes and tribally designated housing entities (THDEs)

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

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

Amendment, but tribes and TDHEs established under State law are not

excluded from the statute's coverage.

(D) Section 102 of the HUD Reform Act; Documentation and Public Access

Requirements

Section 102 of the Department of Housing and Urban Development

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

regulations codified in 24 CFR part 4, subpart A, contain a number of

provisions that are designed to ensure greater accountability and

integrity in the provision of certain types of assistance administered

by HUD. On January 14, 1992 (57 FR 1942), HUD published a notice that

also provides information on the implementation of section 102. The

documentation, public access, and disclosure requirements of section

102 apply to assistance awarded under this SuperNOFA as follows:

(1) Documentation and public access requirements. HUD will ensure

that documentation and other information regarding each application

submitted pursuant to this SuperNOFA are sufficient to indicate the

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

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

inspection for a 5-year period beginning not less than 30 days after

the award of the assistance. Material will be made available in

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

implementing regulations in 24 CFR part 15.

(2) Disclosures. HUD will make available to the public for 5 years

all applicant disclosure reports (HUD Form 2880) submitted in

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

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

case for a period less than 3 years. All reports--both applicant

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

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

regulations at 24 CFR part 15.

(3) Publication of Recipients of HUD Funding. HUD's regulations at

24 CFR 4.7 provide that HUD will publish a notice in the Federal

Register on at least a quarterly basis to notify the public of all

decisions made by the Department to provide:

(i) Assistance subject to section 102(a) of the HUD Reform Act; or

(ii) Assistance that is provided through grants or cooperative

agreements on a discretionary (non-formula, non-demand) basis, but that

is not provided on the basis of a competition.

(E) Section 103 HUD Reform Act

HUD's regulations implementing section 103 of the Department of

Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a),

codified in 24 CFR part 4, apply to this funding competition. The

regulations 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 the

regulations from providing advance information to any person (other

than an authorized employee of HUD) concerning funding decisions, or

from otherwise giving any applicant an unfair competitive advantage.

Persons who apply for assistance in this competition should confine

their inquiries to the subject areas permitted under 24 CFR part 4.

Applicants or employees who have ethics related questions should

contact the HUD Ethics Law Division at (202) 708-3815. (This is not a

toll-free number.) For HUD employees who have specific program

questions, the employee should contact the appropriate field office

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

pertains.

VIII. The FY 1998 SuperNOFA Process and Future HUD Funding Processes

In FY 1997, Secretary Cuomo took the first step at changing HUD's

funding process to better promote comprehensive, coordinated approaches

to housing and community development. In FY 1997, the Department

published related NOFAs on the same day or within a few days of each

other. In the individual NOFAs published in FY 1997, HUD advised that

additional steps on NOFA coordination may be considered for FY 1998.

The three SuperNOFAs to be published for FY 1998 represent the

additional step taken by HUD to improve HUD's funding process and

assist communities to make better use of available resources through a

coordinated approach. This new SuperNOFA process was developed based on

comments received from HUD clients and the Department believes it

represents a significant improvement over HUD's approach to the funding

process in prior years. For FY 1999, HUD may take even further steps to

enhance this process. HUD welcomes comments from applicants and other

members of the public on this process, and how it may be improved in

future years.

The description of program funding available under this second

SuperNOFA for Economic Development and Empowerment Programs follows.

Dated: April 23, 1998.

Saul N. Ramirez, Jr.,

Acting Deputy Secretary.

BILLING CODE 4210-32-P

Federal Register / Vol. 63, No. 83 / Thursday, April 30, 1998 /

Notices

[[Page 23887]]

[GRAPHIC] [TIFF OMITTED] TN30AP98.007

BILLING CODE 4210-22-C

Federal Register / Vol. 63, No. 83 / Thursday, April 30, 1998 /

Notices

[[Page 23889]]

Funding Availability for the Brownfields Economic Development

Initiative (BEDI)

Program Description: Approximately $25 million is available for

Brownfields Economic Development Initiative (BEDI) grants under Section

108(q) of the Housing and Community Development Act of 1974, as

amended. BEDI funds are used to enhance the security of the Section 108

guaranteed loan for the same project or to improve the viability of a

project financed with a Section 108-guaranteed loan. A BEDI grant is

required to be used in conjunction with a new Section 108 guaranteed

loan commitment.

Application Due Date: Completed applications (one original and two

copies) must be submitted no later than 12:00 midnight, Eastern time,

on August 10, 1998 to the addresses shown below. See the General

Section of this SuperNOFA for specific procedures governing the form of

application submission (e.g., mailed applications, express mail,

overnight delivery, or hand carried).

Addresses for Submitting Applications

To HUD Headquarters. The completed application (an original and one

copy) must be submitted to: Processing and Control Unit, Room 7255,

Office of Community Planning and Development, Department of Housing and

Urban Development, 451 Seventh Street, SW, Washington, D.C. 20410,

Attention: BEDI Grant, by mail or hand delivery.

To the Appropriate CPD Field Office. An additional copy should be

submitted to the Community Planning and Development Division of the

appropriate HUD Field Office for the applicant's jurisdiction.

When submitting your application, please refer to BEDI, and include

your name, mailing address (including zip code) and telephone number

(include area code).

For Application Kits, Further Information, and Technical Assistance

For Application Kits. For an application kit and any supplemental

information, please call HUD's SuperNOFA Information line toll free at

1-800-HUD-8929. Persons with hearing or speech impairments may call the

Center's TTY number at 1-800-HUD-2209 to obtain an application kit. The

application kit will also be available on the Internet through the HUD

web site at http://www.hud.gov. When requesting an application kit,

please refer to BEDI. Please be sure to provide your name, address

(including zip code), and telephone number (including area code).

For Further Information and Technical Assistance. Contact either

Stan Gimont or Paul Webster, Financial Management Division, Office of

Block Grant Assistance, Department of Housing and Urban Development,

451 Seventh Street, SW, Room 7178, Washington, DC 20410, telephone

(202) 708-1871 (this is not a toll-free number). Persons with speech or

hearing impairments may access this number via TTY by calling the toll-

free Federal Information Relay Service at 1-800-877-8339.

See the General Section of this SuperNOFA for guidance on technical

assistance. With respect to the Section 108 Loan Guarantee program,

which is not a competitive program and thus not subject to those

provisions of the HUD Reform Act pertaining to competitions, HUD staff

will be available to provide advice and assistance to develop Section

108 loan applications.

Additional Information

I. Authority; Definitions; Purpose; Amount Allocated; and

Eligibility

(A) Authority

Section 108(q), Title I, Housing and Community Development Act of

1974, as amended, (42 U.S.C. 5301-5320) (the Act); 24 CFR part 570.

(B) Definitions

Unless otherwise defined herein, terms defined in 24 CFR part 570

and used in this program section of this SuperNOFA shall have the

respective meanings given thereto in that part.

Brownfield means abandoned, idled, or under-used real property

(including industrial and commercial facilities) where expansion or

redevelopment is complicated by real or suspected contamination.

Brownfields Economic Development Initiative (BEDI) means the

competitive award of up to $25 million, as appropriated in the FY 1998

HUD Appropriations Act, for economic development grant assistance under

section 108(q) of the Act for the purpose of assisting public entities

in the redevelopment of brownfields.

CDBG funds means those funds as defined at 24 CFR 570.3, including

grant funds received pursuant to section 108(q) and this program

section of this SuperNOFA.

Economic Development Initiative (EDI) means the provision of

economic development grant assistance under section 108(q) of the Act,

as authorized by Section 232 of the Multifamily Housing Property

Disposition Reform Act of 1994 (Pub. L. 103-233, approved April 11,

1994).

Economic development project means an activity or activities

(including mixed use projects with housing components) that are

eligible under the Act and under 24 CFR 570.703, and that increase

economic opportunity for persons of low- and moderate-income or that

stimulate or retain businesses or jobs or that otherwise lead to

economic revitalization in connection with brownfields.

Empowerment Zone or Enterprise Community means an urban area so

designated by the Secretary of HUD pursuant to 24 CFR part 597, or a

rural area so designated by the Secretary of Agriculture pursuant to 7

CFR part 25, subpart B.

EPA means the U.S. Environmental Protection Agency.

Showcase Community means an applicant chosen by the Federal

Government's Brownfields National Partnership for inclusion in Federal

Government's Brownfields Showcase Communities program.

Strategic Plan means a strategy developed and agreed to by the

nominating local government(s) and State(s) and submitted in partial

fulfillment of the application requirements for an Empowerment Zone or

Enterprise Community designated pursuant to 24 CFR part 597.

(C) Purpose

(1) Background. HUD has multiple programs which are intended to

stimulate and promote economic and community development and can be

effectively employed to address and remedy brownfield conditions.

Primary among HUD's resources are the Community Development Block Grant

(CDBG) program and the Section 108 loan guarantee program.

The CDBG program provides grant funds ($4.195 billion in FY 1998)

to local governments (either directly or through States) to carry out

community and economic development activities. The Section 108 loan

guarantee program provides local governments with a source of financing

for economic development, housing rehabilitation, and other eligible

large scale physical development projects. HUD is authorized pursuant

to Section 108 to guarantee notes issued by CDBG entitlement

communities and non-entitlement units of general local government

eligible to receive funds under the State CDBG program. Regulations

governing the Section 108 program are found at 24 CFR part 570, subpart

M. It must be noted that the Section 108 program is subject to the

[[Page 23890]]

regulations of 24 CFR part 570 applicable to the CDBG program with the

exception of changes embodied in 24 CFR part 570, subpart M.

For FY 1998, the Section 108 program is authorized at $1.261

billion in loan guarantee authority. The full faith and credit of the

United States is pledged to the payment of all guarantees made under

Section 108. Under this program, communities (and States, if

applicable) pledge their future years' CDBG allocations as security for

loans guaranteed by HUD. The Section 108 program, however, does not

require CDBG funds to be escrowed for loan repayment (unless such an

arrangement is specifically negotiated as loan security). This means

that a community can continue to spend its existing allocation for

other CDBG purposes, unless needed for loan repayment.

(2) EDI Program. The EDI program was enacted in 1994 and is

intended to complement and enhance the Section 108 Loan Guarantee

program. The purpose of EDI (and BEDI) grant funds is to further

minimize the potential loss of future CDBG allocations:

(a) By strengthening the economic feasibility of the projects

financed with Section 108 funds (and thereby increasing the probability

that the project will generate enough cash to repay the guaranteed

loan);

(b) By directly enhancing the security of the guaranteed loan; or

(c) Through a combination of these or other risk mitigation

techniques.

(3) BEDI Program. For FY 1998, the Congress made a specific

appropriation of approximately $25 million for the EDI program to

assist in financing ``brownfields'' redevelopment. HUD intends the $25

million in Brownfields EDI (BEDI) funds available pursuant to this

program section of this SuperNOFA to be used with a particular emphasis

upon the redevelopment of brownfield sites consistent with the

statutory purpose of the FY 1998 HUD Appropriations Act. Accordingly,

BEDI funds shall be used as the stimulus for local governments and

private sector parties to commence redevelopment or continue phased

redevelopment efforts on brownfield sites where contamination is known

or suspected and redevelopment plans exist. HUD desires to see BEDI and

Section 108 funds used to finance projects and activities that will

provide near-term results and demonstrable economic benefits, such as

job creation and increases in the local tax base. HUD does not

encourage applications whose scope is limited only to site acquisition

and/or remediation (i.e., land banking).

(4) Redevelopment Focus. The redevelopment focus for BEDI-assisted

projects is also prompted by the need to provide additional security

for the Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3).

While public entities are required by the Act to pledge their current

and future CDBG funds as a source of security for the Section 108 loan

guarantee, the public entity will usually be required to furnish

additional collateral which, ideally, will be the assets financed with

the Section 108 loan funds. Clearly, a redevelopment focus for the BEDI

funds will help achieve this goal by enhancing the value and improving

the viability of projects assisted with Section 108 financing.

(5) Integration of Other Government Brownfield Programs. HUD

expects and encourages local governments which are designated through

the Federal Government's Brownfields Showcase Community program or

other brownfields programs (i.e., EPA's Assessment Pilot or Revolving

Loan Fund programs) or a State-supported brownfields program or related

economic development program to integrate efforts arising from those

programs in developing projects for assistance under HUD's BEDI and

Section 108 programs. Such applicants should elaborate upon these ties

in their response to the rating factors, where appropriate (e.g.

``Capacity of the Applicant,'' ``Soundness of Approach,'' or

``Leveraging Resources,''--Rating Factors 1, 3, and 4 respectively.)

(6) Typical Project Structures. Provided that proposals are

consistent with other CDBG requirements, including national objectives,

HUD envisions that the following project structures could be typical:

(a) Land Writedowns. Local governments may use a combination of

Section 108 and BEDI funds to acquire a brownfield site for purposes of

reconveying the site to a private developer at a discount from its

purchase price. This approach would provide the developer with an asset

of enhanced value which could be used as collateral for other sources

of funding. Such other sources of financing could be used to finance

environmental remediation or other development costs. In theory, the

level of BEDI assistance would approximate the difference between the

original cost of the site and its remediation in comparison to the

market value of the remediated property.

(b) Site Remediation Costs. Local governments may use BEDI funds in

any of several ways to address site remediation costs. If the local

government used Section 108 funds to acquire real property, BEDI funds

could be used to address assessment and site remediation costs as part

of demolition, clearance, or site preparation activities. If the local

government used Section 108 funds to make a loan to a developer, BEDI

funds could be granted to the developer for the purpose of addressing

remediation costs as part of an economic development activity.

(c) Funding Reserves. The cash flow generated by an economic

development project may be expected to be relatively ``thin'' in the

early stages of the project, i.e. potentially insufficient cash flows

to meet operating expenses and debt service obligations. The BEDI grant

can make it possible for reserves to be established in a way that

enhances the economic feasibility of the project.

(d) Over-Collateralizing the Section 108 Loan.

(i) The use of BEDI grant funds may be structured in appropriate

cases so as to improve the likelihood that project-generated cash flow

will be sufficient to cover debt service on the Section 108 loan and

directly to enhance the guaranteed loan. One technique for

accomplishing this approach is over-collateralization of the Section

108 loan.

(ii) An example is the creation of a loan pool made up of Section

108 and BEDI grant funds. The community would make loans to various

businesses from the combined pool at an interest rate equal to or

greater than the rate on the Section 108 loan. The total loan portfolio

would be pledged to the repayment of the Section 108 loan.

(e) Direct Enhancement of the Security of the Section 108 Loan. The

BEDI grant can be used to cover the cost of providing enhanced

security. An example of how the BEDI grant can be used for this purpose

is by using the grant funds to cover the cost of a standby letter of

credit, issued in favor of HUD. This letter of credit will be available

to fund amounts due on the Section 108 loan if other sources fail to

materialize and will, thus, serve to protect the public entity's future

CDBG funds.

(f) Provision of Financing to For-Profit Businesses at a Below

Market Interest Rate.

(i) While the rates on loans guaranteed under Section 108 are only

slightly above the rates on comparable U.S. Treasury obligations, they

may nonetheless be higher than can be afforded by businesses in

severely economically distressed neighborhoods. The BEDI grant can be

used to make Section 108 financing affordable.

(ii) BEDI grant funds could serve to ``buy down'' the interest rate

up front,

[[Page 23891]]

or make full or partial interest payments, allowing the businesses to

be financially viable in the early start-up period not otherwise

possible with Section 108 alone. This strategy would be particularly

useful where a community was undertaking a large commercial/retail

project in a distressed neighborhood to act as a catalyst for other

development in the area.

(g) Combination of Techniques. An applicant could employ a

combination of these or other techniques in order to implement a

strategy that carries out an economic development project.

(D) Amount Allocated

HUD has available a maximum of $25 million for the BEDI program, as

appropriated in the FY 1998 HUD Appropriations Act for the purpose of

assisting public entities in the redevelopment of brownfields.

(E) Eligibility to Apply for Grant Assistance

Any public entity eligible to apply for Section 108 loan guarantee

assistance in accordance with 24 CFR 570.702 may apply for BEDI grant

assistance under section 108(q). Eligible applicants are CDBG

entitlement units of general local government and non-entitlement units

of general local government eligible to receive loan guarantees under

24 CFR part 570, subpart M. Note that effective January 25, 1995, non-

entitlement public entities in the states of New York and Hawaii were

authorized to apply to HUD for Section 108 loans (see 59 FR 47510,

December 27, 1994). Thus non-entitlement public entities in all 50

states and Puerto Rico are eligible to participate in the Section 108

and BEDI programs.

(F) Related Section 108 Loan Guarantee Application

(1) Each BEDI application must be accompanied by a request for new

Section 108 loan guarantee assistance. Both the BEDI and Section 108

funds must be used in conjunction with the same economic development

project. This request may take any of several forms as defined below.

(a) A formal application for new Section 108 loan guarantee(s),

including the documents listed at 24 CFR 570.704(b);

(b) A brief description (not to exceed three pages) of a new

Section 108 loan guarantee application(s). Such 108 application(s) will

be submitted within 60 days, with HUD reserving the right to extend

such period for good cause on a case-by-case basis, of a notice of BEDI

selection. BEDI awards will be conditioned on approval of actual

Section 108 loan commitments. This description must be sufficient to

support the basic eligibility of the proposed project or activities for

Section 108 assistance. (See Section I(G) of this program section of

this SuperNOFA.);

(c) If applicable, a copy of a Section 108 loan guarantee approval

document with grant number and date of approval (which was approved

after the date of this SuperNOFA, except in conjunction with a previous

EDI award); or

(d) A request for a Section 108 loan guarantee amendment (analogous

to Section I(F)(1) (a) or (b) of this BEDI section of the SuperNOFA)

that proposes to increase the amount of a previously approved

application. However, any amount of Section 108 loan guarantee

authority approved before the date of this SuperNOFA is not eligible to

be used in conjunction with a BEDI grant under this SuperNOFA.

(2) Further, a Section 108 loan guarantee amount that is required

to be used in conjunction with a prior EDI grant award, whether or not

the Section 108 loan guarantee has been approved as of the date of this

SuperNOFA, is not eligible for a BEDI award under this SuperNOFA. For

example, if a public entity has a previously approved Section 108 loan

guarantee commitment of $12 million, even if none of the funds have

been utilized, or if the public entity had previously been awarded an

EDI grant of $1 million and had certified that it will submit a Section

108 loan application for $10 million in support of that EDI grant, the

public entity's application under this program section of this

SuperNOFA must propose to increase the amount of its total Section 108

loan guarantee commitments beyond those amounts (the $12 million or $10

million in this example) to which it has previously agreed.

(G) Eligible Activities and National Objectives

BEDI grant funds may be used for activities listed at 24 CFR

570.703, provided such activities are carried out as part of an

economic development project as defined in Section I(B) of this BEDI

section of this SuperNOFA. Each activity assisted with Section 108 loan

guarantee or BEDI funds must meet a national objective of the CDBG

program as described in 24 CFR 570.208. In the aggregate, a grantee's

use of CDBG funds, including any Section 108 loan guarantee proceeds

and section 108(q) (EDI) funds provided pursuant to this program

section of this SuperNOFA, must comply with the CDBG primary objectives

requirements as described in section 101(c) of the Housing and

Community Development Act of 1974, as amended, and 24 CFR 570.200(c)(3)

or 570.484 in the case of State grantees. The foregoing eligible

activities may also include:

(1) Payment of costs of private financial guaranty insurance

policies, letters of credit, or other credit enhancements for the notes

or other obligations guaranteed by HUD pursuant to Section 108,

provided that the proceeds of such notes or obligations are used to

finance an economic development project. Such enhancements shall be

specified in the contract required by 24 CFR 570.705(b)(1), and shall

be satisfactory in form and substance to HUD for security purposes; and

(2) The payment of interest due (and other costs such servicing,

underwriting, or other costs as may be authorized by HUD) on the notes

or other obligations guaranteed by HUD pursuant to the Section 108 loan

guarantee program.

(H) Limitations on Use of BEDI and Section 108 Funds

Certain restrictions shall apply to the use of BEDI and Section 108

funds:

(1) BEDI grants shall not be used as a resource to immediately

repay the principal of a loan guaranteed under Section 108. Repayment

of principal is only permissible with BEDI grant funds as a matter of

security if other sources projected for repayment of principal prove to

be unavailable.

(2) BEDI grant funds shall not be used in any manner by grantees to

provide public or private sector entities with funding to remediate

conditions caused by their actions, where the public entity (or other

known prospective beneficiary of the proposed BEDI grant) has been

determined responsible for causation and remediation by order of a

court or a Federal, State, or local regulatory agency, or is

responsible for the remediation as part of a settlement approved by

such a court or agency.

(3) Applicants may not propose projects on sites which are listed

or proposed to be listed on EPA's National Priority List (NPL).

Further, applicants are cautioned against proposing projects on sites

where the nature and degree of environmental contamination is not well

quantified or which are the subject of on-going litigation or

environmental enforcement action.

(4) Applicants are cautioned against using Section 108 funds to

finance activities which also include financing generated through the

issuance of federally tax exempt obligations. Pursuant to Office of

Management and Budget (OMB) Circular A-129 (Policies

[[Page 23892]]

for Federal Credit Programs and Non-Tax Receivables), Section 108

guaranteed loan funds may not directly or indirectly support federally

tax-exempt obligations.

(I) Limitations on Grant Amounts

(1) HUD expects to approve BEDI grant amounts for approvable

applications at a range of ratios of BEDI grant funds awarded to new

Section 108 loan guarantee commitments but the minimum ratio will be $1

of Section 108 loan guarantee commitments for every $1 of BEDI grant

funds. However, applicants that propose a leverage ratio of 1:1 will

not receive any points under the Rating Subfactor 4(1): ``Leverage of

Section 108 Funds.''

For example, an applicant requesting a BEDI grant of $1 million

will be required to leverage a minimum of at least $1 million in new

Section 108 loan guarantee commitments. This will be a special

condition of the BEDI grant award. Of course, even though there is a

minimum ratio of 1:1, applications with higher ratios will receive more

points under Rating Factor 4, ``Leveraging Resources/Financial Need''

and, all other things being equal, will be more competitive. Applicants

are encouraged to propose projects with a greater leverage ratio of new

Section 108 to BEDI grant funds (assuming such projects are financially

viable). For example $1 million of BEDI could leverage $12 million of

new Section 108 loan commitments. HUD intends that the BEDI funds will

be used for projects which leverage the greatest possible amount of

Section 108 loan guarantee commitments.

(2) HUD expects that the average grant size will be approximately

$1 million.

(3) In the event the applicant is awarded a BEDI grant that has

been reduced below the original request (e.g. the application contained

some activities that were ineligible or there were insufficient funds

to fund the last competitive application at the full amount requested),

the applicant will be required to modify its project plans and

application to conform to the terms of HUD approval before execution of

a grant agreement. HUD reserves the right to reduce or de-obligate the

BEDI award if approvable Section 108 loan guarantee applications are

not submitted by the grantee in the required amounts on a timely basis.

Any requested modifications must be within the scope of the original

BEDI application.

(4) In the case of requested amendments to a previously approved

Section 108 loan guarantee commitment (as further discussed in section

I(F)(1)(d) above), the BEDI assistance approved will be based on the

increased amount of Section 108 loan guarantee assistance.

(J) Timing of Grant Awards

(1) To the extent a full Section 108 application is submitted with

the BEDI grant application, the Section 108 application will be

evaluated concurrently with the request for BEDI grant funds. Note that

BEDI grant assistance cannot be used to support a Section 108 loan

guarantee approved prior to the date of the publication of this

SuperNOFA. However, the BEDI grant may be awarded prior to HUD approval

of the Section 108 commitment if HUD determines that such award will

further the purposes of the Act.

(2) HUD notification to the grantee of the amount and conditions

(if any) of BEDI funds awarded based upon review of the BEDI

application shall constitute an obligation of grant funds, subject to

compliance with the conditions of award and execution of a grant

agreement. BEDI funds shall not be disbursed to the public entity

before the issuance of the related Section 108 guaranteed obligations.

II. Program Requirements

In addition to the program requirements listed in the General

Section of this SuperNOFA, applicants are subject to the following

requirements.

(A) CDBG Program Regulations

The requirements of 24 CFR part 570, including subpart K (Other

Program Requirements).

(B) Environmental Review

After the completion of this competition and after HUD's award of

BEDI grant funds, pursuant to 24 CFR 570.604, each project or activity

assisted under this program is subject to the provisions of 24 CFR part

58, including limitations on the EDI grant and Section 108 public

entity's commitment of HUD and non-HUD funds prior to the completion of

environmental review, notification and release of funds. No such

assistance will be released by HUD until a request for release of funds

is submitted and the requirements of 24 CFR part 58 have been met. All

public entities, including nonentitlement public entities, shall submit

the request for release of funds and related certification, pursuant to

24 CFR part 58, to the appropriate HUD field office for each project to

be assisted.

(C) Environmental Justice

(1) Executive Order 12898 (Federal Actions to Address Environmental

Justice in Minority Populations and Low-Income Populations directs

Federal agencies to develop strategies to address environmental

justice. Environmental justice seeks to rectify the disproportionately

high burden of environmental pollution that is often borne by low-

income, minority, and other disadvantaged communities, and to ensure

community involvement in policies and programs addressing this issue.

(2) Brownfields are often located in distressed neighborhoods,

contribute to neighborhood blight, and lower the quality of social,

economic, and environmental health of communities. The BEDI program is

intended to promote the clean up and redevelopment of brownfield sites

and, to this end, HUD expects that projects presented for BEDI funding

will integrate environmental justice concerns and provide demonstrable

benefits for affected communities and their residents.

(D) Compliance With Applicable Laws

Applicants are advised that an award of BEDI funding does not in

any way relieve the applicant or third parties users of BEDI funds from

compliance with all applicable Federal, State and local laws,

particularly those addressing the environment. Applicants are further

advised that HUD may require evidence that any project involving

remediation has been or will be carried out in accordance with State

law, including voluntary clean up programs.

III. The Application Selection Process

(A) Rating and Ranking

(1) Each rating factor and the maximum number of points is provided

below. The maximum number of points to be awarded is 102. This includes

two EZ/EC bonus points as described in the General Section of the

SuperNOFA, or two bonus points for having received a federal

designation as a Brownfields Showcase Community.

(2) Once scores are assigned, all applications will be ranked in

order of points assigned, with the applications receiving more points

ranking above those receiving fewer points. Applications will be funded

in rank order.

(3) If HUD determines that an application rated, ranked and

fundable could be funded at a lesser BEDI grant amount than requested

consistent with feasibility of the funded project or activities and the

purposes of the Act,

[[Page 23893]]

HUD reserves the right to reduce the amount of the BEDI award and/or

increase the Section 108 loan guarantee commitment, if necessary, in

accordance with such determination. An application in excess of $1

million may be reduced below the amount requested by the applicant if

HUD determines that such a reduction is appropriate.

(4) HUD may decide not to award the full amount of BEDI grant funds

available under this program section of this SuperNOFA and may make any

remaining amounts available under a future SuperNOFA.

(B) Narrative Statement

Each applicant shall provide a narrative statement describing the

activities that will be carried out with the BEDI grant funds and

explaining the nature and extent of the Brownfield's problems(s)

affecting the project. The narrative statement shall not exceed three

(3) 8.5'' by 11'' pages for the description of the activities to be

carried out with the BEDI grant funds. The description of activities

should include a statement of how the proposed uses of BEDI funds will

meet the national objectives for the CDBG program under 24 CFR 570.208

and qualify as eligible activities under 24 CFR 570.703. Citations to

the specific regulatory subsections supporting eligibility are

recommended, but a narrative description will be accepted. See Section

I(G) of this program section of this SuperNOFA. The applicant shall

also provide a narrative response to the rating factors below. Each of

the listed rating factors (or, where applicable, each subfactor) below

also has a separate page limitation specified. Narrative statements

must be printed in 12 point type/font, and have sequentially numbered

pages.

(C) Factors for Award Used to Evaluate and Rate Applications

All applications will be considered for selection based on the

following factors that demonstrate the quality of the proposed project

or activities, and the applicant's creativity, capacity and commitment

to obtain maximum benefit from the BEDI funds, in accordance with the

purposes of the Act.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational

Experience (15 Points)

[Your response to this factor is limited to three (3) pages.]

This factor addresses the extent to which the applicant has the

organizational resources necessary to successfully implement the

proposed activities in a timely manner. The rating of the ``applicant''

or the ``applicant's organization and staff'' for technical merit or

threshold compliance, unless otherwise specified, will include any

faculty, subcontractors, consultants, subrecipients, and members of

consortia which are firmly committed (i.e. has a written agreement or a

signed letter of understanding with the applicant agreeing in principle

to its participation and role in the project). In rating this factor,

HUD will consider the following:

(1) With regard to the BEDI/Section 108 project proposed by the

applicant, the applicant should demonstrate that it has the capacity to

implement the specific steps required to successfully carry out the

proposed BEDI/Section 108 project. This includes factors such as the

applicant's:

(a) Performance in the administration of its CDBG, HOME or other

programs;

(b) Previous experience, if any, in administering a Section 108

loan guarantee;

(c) Performance and capacity in carrying out economic development

projects;

(d) Performance and capacity to carry out Brownfields redevelopment

projects;

(e) Ability to conduct prudent underwriting;

(f) Capacity to manage and service loans made with the guaranteed

loan funds or previous EDI grant funds;

(g) Capacity to carry out its projects and programs in a timely

manner; and,

(h) If applicable, the applicant's capacity to manage projects

under this program section of this SuperNOFA along with any federal

funds awarded as a result of a federal urban Empowerment Zone/

Enterprise Community designation.

(2) If an applicant has previously received an EDI grant award(s),

the applicant must describe the status of the implementation of that

EDI-assisted project(s), any delays that have been encountered and the

actions the applicant is taking to overcome any such delays in order to

carry out the project in a timely manner. For such previously funded

EDI grant projects, HUD will consider the extent to which the awarded

EDI grant funds and the associated Section 108-guaranteed loan funds

have been utilized.

(3) The capacity of subrecipients, nonprofit organizations and

other entities that have a role in implementing the proposed program

will be included in this review. HUD may also rely on information from

performance reports, financial status information, monitoring reports,

audit reports and other information available to HUD in making its

determination under this factor.

Rating Factor 2: Distress/Extent of the Problem (15 Points)

[Your response to this factor is limited to three (3) pages.]

This factor addresses the extent to which there is need for funding

the proposed activities based on levels of distress, and an indication

of the urgency of meeting the need/distress in the target area.

(1) In applying this factor, HUD will consider current levels of

distress in the immediate community to be served by the project and the

jurisdiction applying for assistance. Applicants who are able to

indicate a level of distress in the immediate project area that is

greater than the level of distress in the applicant's jurisdiction as a

whole will receive a higher score under this factor than those who do

not. HUD requires that applicants use sound and reliable data that is

verifiable to support the level of distress claimed in the application.

The applicant shall provide a source for the information it uses.

(2) In previous EDI competitions, the poverty rate was often

considered the best indicator of distress; however, the applicant may

demonstrate the level of distress with other factors such as income

levels and unemployment rates.

(3) HUD will consider a project to have maximum distress if the

project(s) is located within the boundaries of a federally-designated

Empowerment Zone or Enterprise Community (Applicants will be

responsible for demonstrating that the project site is within the

boundaries of the applicant's EZ/EC area).

(4) To the extent that the applicant's Consolidated Plan and its

Analysis of Impediments to Fair Housing choice (AI) identifies the

level of distress in the community and the neighborhood in which the

project is being carried out, the applicant should include references

to such documents in preparing its response to this factor.

Rating Factor 3: Soundness of Approach (25 Points)

[Your response to this factor is limited to three (3) pages.]

This factor addresses the quality and cost-effectiveness of the

applicant's proposed plan. There must be a clear relationship between

the proposed activities, community needs and purposes of the program

funding for an applicant to receive points for this factor. In rating

this factor, HUD will consider the following:

(1) HUD will consider the quality of the applicant's plan/proposal

for the use

[[Page 23894]]

of BEDI funds and Section 108 loan funds, including the extent to which

the applicant's proposed plan for the effective use of BEDI grant/

Section 108 loan guarantee will address the needs described in Rating

Factor 2 above regarding the distress and extent of the problem in the

applicant's immediate community and/or its jurisdiction.

(2) HUD will consider the extent to which the plan is logically,

feasibly, and substantially likely to achieve its stated purpose. HUD's

desire is to fund projects and activities which will quickly produce

demonstrable results and advance the public interest including the

number of jobs to be created by the project. An applicant should

demonstrate that it has a clear understanding of the steps required to

implement its project, the actions that it and others responsible for

implementing the project must complete and shall include a reasonable

time schedule for carrying out the project.

(3) The applicant's response to this factor should take into

account certain site selection, planning, and environmental issues.

Further, applicants are cautioned against proposing projects on sites

where the nature and degree of environmental contamination is not well

quantified or which are the subject of on-going litigation or

environmental enforcement. To reiterate, HUD's desire is to fund

projects and activities which will quickly produce demonstrable results

and advance the public interest. Sites with unknown or exceptionally

expensive contamination problems may be beyond the scope of the BEDI

program's financial resources and sites subject to pending and current

litigation may not be available for remediation and development in a

timeframe consistent with HUD's desire for rapid progress in the use of

BEDI and Section 108 funds.

(4) The BEDI program is intended to promote the clean up and

redevelopment of brownfield sites and, to this end, HUD expects that

projects presented for BEDI funding will integrate environmental

justice concerns and provide demonstrable benefits for affected

communities and their residents.

(5) HUD will evaluate the extent to which the applicant's project

incorporates one or more elements that facilitate a successful

transition of welfare recipients from welfare to work. Such an element

could include, for example, linking the proposed project or loan fund

to social and/or other services needed to enable welfare recipients to

successfully secure and carry out full-time jobs in the private sector;

provision of job training to welfare recipients who might be hired by

businesses financed through the proposal; and/or incentives for

businesses financed with BEDI/section 108 funds to hire and train

welfare recipients.

(6) Up to two (2) additional points will be awarded to any

application submitted by the City of Dallas, Texas, to the extent this

subfactor is addressed. Due to an order of the U.S. District Court for

the Northern District of Texas, Dallas Division, with respect to any

application submitted by the City of Dallas, Texas, HUD's consideration

of the applicant's response to this factor, ``Soundness of Approach''

will include the extent to which the applicant's plan for the use of

BEDI funds and Section 108 loans will be used to eradicate the vestiges

of racial segregation in the Dallas Housing Authority's programs

consistent with the Court's order.

Rating Factor 4: Leveraging Resources/Financial Need (35 Points)

[Page limits for the response to this factor are listed separately for

each subfactor under this factor.]

In evaluating this factor, HUD will consider the extent to which

the applicant's response demonstrates the financial need and

feasibility of the project and the leverage ratio of Section 108 loan

proceeds to BEDI grant funds. This factor has three subfactors, each

with its own maximum point total:

(1) Leverage of Section 108 funds (20 points). [Your response to

this subfactor is limited to one (1) page.] The minimum ratio of

Section 108 funds to BEDI funds in any project may not be less than

1:1. The extent to which the proposed project leverages an amount of

Section 108 funds beyond the 1:1 ratio will be considered a positive

factor. Applicants that have a ratio of 1:1 will not receive any points

under this subfactor. Applicants that use their BEDI grant to leverage

more Section 108 commitments will receive more points under this

subfactor.

(2) Financial feasibility (10 points). [Your response to this

subfactor is limited to three (5) pages.] HUD will consider the extent

to which the applicant demonstrates that the project is financially

feasible. This may include factors such as:

(a) Project costs and financial requirements. Applicants should

provide a funding sources and uses statement (not included in 5 page

narrative limit) as well as justifications for project costs.

(b) The amount of any debt service or operating reserve accounts to

be established in connection with the economic development project.

(c) The reasonableness of the costs of any credit enhancement paid

with BEDI grant funds.

(d) The amount of program income (if any) to be received each year

during the repayment period for the guaranteed loan.

(e) Interest rates on those loans to third parties (other than

subrecipients) (either as an absolute rate or as a plus/minus spread to

the Section 108 rate).

(f) Underwriting criteria that will be used in determining project

feasibility.

(3) Leverage of other financial resources (5 points). [Your

response to this subfactor is limited to one (1) page plus supporting

documentation evidencing third party commitment (written and signed) of

funds.] HUD will evaluate the extent to which the applicant leverages

other funds (public or private) with BEDI grant funds and section 108

guaranteed loan funds and the extent to which such other funds are

firmly pledged to the project. This could include the use of CDBG

funds, other Federal or state grants or loans, a grantee's general

funds, project equity or commercial financing provided by private

sources or funds from non-profits or other sources. Funds will be

considered pledged to the project if there is evidence of the third

party's written commitment to make the funds available for the BEDI/108

project, subject to approval of the BEDI and Section 108 assistance and

completion of any environmental clearance required under 24 CFR part 58

for the project. Note that with respect to CDBG funds, the applicant's

pledge of its CDBG funds will be considered sufficient commitment.

Rating Factor 5: Comprehensiveness and Coordination (10 Points)

[Your response to this factor is limited to two (2) pages.]

This factor addresses the extent to which the applicant coordinated

its activities with other known organizations, participates or promotes

participation in the applicant's or a State's Consolidated Planning

process, and is working towards addressing a need in a comprehensive

manner through linkages with other activities in the community.

In evaluating this factor, HUD will consider the extent to which

the applicant demonstrates it has:

(1) Coordinated its proposed activities with those of other groups

or organizations prior to submission in order to best complement,

support and coordinate all known activities and if funded, the specific

steps it will take to share information on solutions and outcomes with

others. Any written

[[Page 23895]]

agreements, memoranda of understanding in place, or that will be in

place after award should be described.

(2) Developed linkages, or the specific steps it will take to

develop linkages with other activities, programs or projects through

meetings, information networks, planning processes or other mechanisms

to coordinate its activities so solutions are holistic and

comprehensive, including linkages with other HUD-funded projects/

activities outside the scope of those covered by the Consolidated Plan.

(3) Coordinated its efforts with other Federal, State or locally

supported activities, including EPA's various Brownfields initiatives,

and those proposed or on-going in the community.

IV. Application Submission Requirements

(A) Public entities seeking BEDI assistance must make a specific

request for that assistance, in accordance with the requirements of

this program section of this SuperNOFA.

(B) The application should include an original and one copy of the

items listed below submitted to HUD Headquarters (see the section

``Addresses For Submitting Applications in this program section of this

SuperNOFA), with one additional copy submitted directly to the

Community Planning and Development Division of the cognizant HUD Field

Office for the applicant's jurisdiction.

(C) A BEDI application shall consist of the following items:

(1) Transmittal letter from applicant;

(2) Table of contents;

(3) Application check list (supplied in application kit);

(4) A request for loan guarantee assistance under Section 108, as

further described in Section I(F) of this program section of this

SuperNOFA. Application guidelines for the Section 108 program are found

at 24 CFR 570.704;

(5) As described in Section III(B) of this program section of this

SuperNOFA, a narrative statement (3 page limit) describing the

activities that will be carried out with the BEDI grant funds;

(6) Responses to each of the rating factors (within the page limits

provided for each factor or subfactor as applicable);

(7) Completion of a funding sources and uses statement and a BEDI

and Section 108 eligibility statement (see the application kit);

(8) Written agreements or signed letters of understanding in

support of Rating Factor 1: ``Capacity of the Applicant and Relevant

Organizational Experience'';

(9) Signed third party commitment letters pledging funds in support

of subfactor 4(2): ``Leverage of other financial resources'';

(10) Required certifications; and

(11) Acknowledgement of Application Receipt form.

V. Corrections to Deficient Applications

The General Section of the SuperNOFA provides the procedures for

corrections to deficient applications.

BILLING CODE 4210-32-P

Federal Register / Vol. 63, No. 83 / Thursday, April 30, 1998 /

Notices

[[Page 23897]]

[GRAPHIC] [TIFF OMITTED] TN30AP98.008

BILLING CODE 4210-32-C

Federal Register / Vol. 63, No. 83 / Thursday, April 30, 1998 /

Notices

[[Page 23899]]

Funding Availability for the Economic Development Initiative (EDI)

Program Description: Approximately $38 million is available for

Economic Development Initiative (EDI) grants under Section 108(q) of

the Housing and Community Development Act of 1974, as amended. (Please

see Section I(D) of this EDI section of the SuperNOFA for possible set-

aside.) EDI funds are used to enhance the security of the Section 108

guaranteed loan for the same project or to improve the viability of a

project financed with a Section 108-guaranteed loan. An EDI grant is

required to be used in conjunction with a new Section 108 guaranteed

loan commitment.

Application Due Date: Completed applications (one original and two

copies) must be submitted no later than 12:00 midnight, Eastern time,

on July 30, 1998 to the addresses shown below. See the General Section

of this SuperNOFA for specific procedures governing the form of

application submission (e.g., mailed applications, express mail,

overnight delivery, or hand carried).

Address for Submitting Applications

To HUD Headquarters. The completed application (an original and one

copy) must be submitted to: Processing and Control Unit, Room 7255,

Office of Community Planning and Development, Department of Housing and

Urban Development, 451 Seventh Street, SW, Washington, DC 20410,

Attention: EDI Grant, by mail or hand delivery.

To the Appropriate CPD Field Office. An additional copy should be

submitted to the Community Planning and Development Division of the

appropriate HUD Field Office for the applicant's jurisdiction.

When submitting your application, please refer to EDI, and include

your name, mailing address (including zip code) and telephone number

(including area code).

For Application Kits, Further Information, and Technical Assistance

For Application Kits. For an application kit and any supplemental

information, please call HUD's SuperNOFA Information line toll free at

1-800-HUD-8929. Persons with hearing or speech impairments may call the

Center's TTY number at 1-800-HUD-2209 to obtain an application kit. The

application kit will also be available on the Internet through the HUD

web site at http://www.hud.gov. When requesting the application kit,

please refer to EDI. Please make sure to provide your name, address

(including zip code), and telephone number (including area code).

For Further Information and Technical Assistance. Contact either

Stan Gimont or Paul Webster, Financial Management Division, Office of

Block Grant Assistance, Department of Housing and Urban Development,

451 Seventh Street, SW, Room 7178, Washington, DC 20410; telephone

(202) 708-1871 (this is not a toll-free number). Persons with speech or

hearing impairments may access this number via TTY by calling the toll-

free Federal Information Relay Service at 1-800-877-8339.

See the General Section of this SuperNOFA for guidance on technical

assistance. With respect to the Section 108 Loan Guarantee program,

which is not a competitive program and thus not subject to those

provisions of the HUD Reform Act pertaining to competitions, HUD staff

will be available to provide advice and assistance to develop Section

108 loan applications.

Additional Information

I. Authority; Definitions; Purpose; Amount Allocated; and

Eligibility

(A) Authority

Section 108(q), Title I, Housing and Community Development Act of

1974, as amended (42 U.S.C. 5301-5320) (the Act); 24 CFR part 570.

(B) Definitions

Unless otherwise defined herein, terms defined in 24 CFR part 570

and used in this program section of this SuperNOFA shall have the

respective meanings given thereto in that part.

CDBG funds means those funds as defined at 24 CFR 570.3, including

grant funds received pursuant to section 108(q) of the Act and this

program section of this SuperNOFA.

Economic Development Initiative (EDI) means the provision of

economic development grant assistance under section 108(q) of the Act,

as authorized by Section 232 of the Multifamily Housing Property

Disposition Reform Act of 1994 (Pub.L. 103-233, approved April 11,

1994).

Economic development project means an activity or activities

(including mixed use projects with housing components) that are

eligible under the Act and under 24 CFR 570.703, and that increase

economic opportunity for persons of low- and moderate-income or that

stimulate or retain businesses or jobs or that otherwise lead to

economic revitalization.

Empowerment Zone or Enterprise Community means an urban area so

designated by the Secretary of HUD pursuant to 24 CFR part 597, or a

rural area so designated by the Secretary of Agriculture pursuant to 7

CFR part 25, subpart B.

Strategic Plan means a strategy developed and agreed to by the

nominating local government(s) and State(s) and submitted in partial

fulfillment of the application requirements for an Empowerment Zone or

Enterprise Community designated pursuant to 24 CFR part 597.

(C) Purpose

(1) Background. HUD has multiple programs which are intended to

stimulate and promote economic and community development. Primary among

HUD's resources are the Community Development Block Grant (CDBG)

program and the Section 108 loan guarantee program.

The CDBG program provides grant funds ($4.195 billion in FY 1998)

to local governments (either directly or through States) to carry out

community and economic development activities. The Section 108 loan

guarantee program provides local governments with a source of financing

for economic development, housing rehabilitation and other eligible

large scale physical development projects. HUD is authorized pursuant

to Section 108 to guarantee notes issued by CDBG entitlement

communities and non-entitlement units of general local government

eligible to receive funds under the State CDBG program. Regulations

governing the Section 108 program are found at 24 CFR part 570, subpart

M. It must be noted that the Section 108 program is subject to the

regulations of 24 CFR part 570 applicable to the CDBG program with the

exception of changes embodied in 24 CFR part 570, subpart M.

For FY 1998, the Section 108 program is authorized at $1.261

billion in loan guarantee authority. The full faith and credit of the

United States is pledged to the payment of all guarantees made under

Section 108. Under this program, communities (and States, if

applicable) pledge their future years' CDBG allocations as security for

loans guaranteed by HUD. The Section 108 program, however, does not

require CDBG funds to be escrowed for loan repayment (unless such an

arrangement is specifically negotiated as loan security). This means

that a community can continue to spend its existing allocation for

other CDBG purposes, unless needed for loan repayment.

(2) EDI Program. The EDI program was enacted in 1994 and is

intended to complement and enhance the Section 108 Loan Guarantee

program. The

[[Page 23900]]

purpose of EDI grant funds is to further minimize the potential loss of

future CDBG allocations:

(a) By strengthening the economic feasibility of the projects

financed with Section 108 funds (and thereby increasing the probability

that the project will generate enough cash to repay the guaranteed

loan);

(b) By directly enhancing the security of the guaranteed loan; or

(c) Through a combination of these or other risk mitigation

techniques.

(3) Purpose of EDI Funding. HUD intends the approximately $38

million in EDI funds to stimulate economic development by local

governments and private sector parties. HUD desires to see EDI and

Section 108 funds used to finance projects and activities that will

provide near-term results and demonstrable economic benefits, such as

job creation and increases in the local tax base.

(4) Additional Security for Section 108 Loan Guarantee. Public

entities should be mindful of the need to provide additional security

for the Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3).

Although a public entity is required by the Act to pledge its current

and future CDBG funds as security for the Section 108 loan guarantee,

the public entity will usually be required to furnish additional

collateral. In most cases, the additional collateral consists (in whole

or in part) of the asset financed with the Section 108 loan funds

(e.g., a loan made to a business as part of an economic development

project). Applications proposing uses for EDI funding that enhance the

viability of projects will help ensure that the project-based asset(s)

will satisfy the additional collateral requirements.

(5) Typical Project Structures. Provided that proposals are

consistent with other CDBG requirements, including national objectives,

HUD envisions that the following project structures could be typical:

(a) Funding Reserves. The cash flow generated by an economic

development project may be expected to be relatively ``thin'' in the

early stages of the project, i.e. potentially insufficient cash flows

to meet operating expenses and debt service obligations. The EDI grant

can make it possible for reserves to be established in a way that

enhances the economic feasibility of the project.

(b) Over-Collateralizing the Section 108 Loan.

(i) The use of EDI grant funds may be structured in appropriate

cases so as to improve the likelihood that project-generated cash flow

will be sufficient to cover debt service on the Section 108 loan and

directly to enhance the guaranteed loan. One technique for

accomplishing this approach is over-collateralization of the Section

108 loan.

(ii) An example is the creation of a loan pool funded with Section

108 and EDI grant funds. The community would make loans to various

businesses from the combined pool at an interest rate equal to or

greater than the rate on the Section 108 loan. The total loan portfolio

would be pledged to the repayment of the Section 108 loan.

(c) Direct Enhancement of the Security of the Section 108 Loan. The

EDI grant can be used to cover the cost of providing credit

enhancements. An example of how the EDI grant can be used for this

purpose is by using the grant funds to cover the cost of a standby

letter of credit, issued in favor of HUD. This letter of credit will be

available to fund amounts due on the Section 108 loan if other sources

fail to materialize and will, thus, serve to protect the public

entity's future CDBG funds.

(d) Provision of Financing to For-Profit Businesses at a Below

Market Interest Rate.

(i) While the rates on loans guaranteed under Section 108 are only

slightly above the rates on comparable U.S. Treasury obligations, they

may nonetheless be higher than can be afforded by businesses in

severely economically distressed neighborhoods. The EDI grant can be

used to make Section 108 financing affordable.

(ii) EDI grant funds could serve to ``buy down'' the interest rate

up front, or make full or partial interest payments, allowing the

businesses to be financially viable in the early start-up period not

otherwise possible with Section 108 alone. This strategy would be

particularly useful where a community was undertaking a large

commercial/retail project in a distressed neighborhood to act as a

catalyst for other development in the area.

(e) Combination of Techniques. An applicant could employ a

combination of these or other techniques in order to implement a

strategy that carries out an economic development project.

(D) Amount Allocated

HUD has available a maximum of approximately $38 million for the

EDI program, as appropriated in the FY 1998 HUD Appropriations Act. If

any additional EDI grant monies for this SuperNOFA become available,

HUD may either fund additional applicants in accordance with this

SuperNOFA during Fiscal Year 1998 or may add any funds that become

available to funds available for any future EDI competitions.

As part of EDI, HUD is developing a program enhancement designed to

reduce the risk that CDBG funds will have to be used to repay Section

108 loans that finance economic development projects. This mechanism

will allow public entities to pool economic development loans and

related reserves. The diversification created by the pooling of loans

and reserves will reduce the risk that a public entity will incur a

catastrophic loss to its CDBG program if a business defaults on an

economic development loan made with Section 108 funds. The CDBG Risk

Reduction Pool will also assist public entities in satisfying the

collateral requirements for Section 108 loans. The pool's reserves and

incremental cash flows will provide an additional credit enhancement

for the Section 108 loan and thereby satisfy Section 108 additional

collateral requirements. The HUD budget for FY 1999 has requested $400

million for an enhanced EDI program that includes features of this

mechanism.

HUD is developing this pooling mechanism in consultation with other

Federal agencies and outside experts. HUD is considering a $10 million

demonstration in FY 1998. If the demonstration occurs, then $28 million

will be available for the EDI competition announced in this SuperNOFA.

In this event, HUD will publish a supplementary notice to the EDI

program section of this SuperNOFA announcing the availability of the

$10 million for an FY 1998 demonstration of this mechanism. Should

there be no demonstration in FY 1998, then HUD reserves the right to

utilize the $10 million for the EDI competition announced in this

SuperNOFA, making the total amount available $38 million.

(E) Eligibility to Apply for Grant Assistance

Any public entity eligible to apply for Section 108 loan guarantee

assistance pursuant to 24 CFR 570.702 may apply for EDI grant

assistance under Section 108(q). Eligible applicants are CDBG

entitlement units of general local government and non-entitlement units

of general local government eligible to receive loan guarantees under

24 CFR part 570, subpart M. Note that effective January 25, 1995, non-

entitlement public entities in the states of New York and Hawaii were

authorized to apply to HUD for Section 108 loans (see 59 FR 47510,

December 27, 1994). Thus, non-entitlement public entities in all 50

states and Puerto Rico are eligible to

[[Page 23901]]

participate in the Section 108 and EDI programs.

(F) Related Section 108 Loan Guarantee Application

(1) Each EDI application must be accompanied by a request for new

Section 108 loan guarantee assistance. Both the EDI and Section 108

funds must be used in conjunction with the same economic development

project. This request may take any of several forms as defined below.

(a) A formal application for new Section 108 loan guarantee(s),

including the documents listed at 24 CFR 570.704(b);

(b) A brief description (not to exceed three pages) of a new

Section 108 loan guarantee application(s). Such 108 application(s) will

be submitted within 60 days, with HUD reserving the right to extend

such period for good cause on a case-by-case basis, of a notice of EDI

selection. EDI awards will be conditioned on approval of actual Section

108 loan commitments. This description must be sufficient to support

the basic eligibility of the proposed project or activities for Section

108 assistance. (See Section I(G) of this program section of this

SuperNOFA.);

(c) If applicable, a copy of a Section 108 loan guarantee approval

document with grant number and date of approval (which was approved

after the date of this SuperNOFA, except in conjunction with a previous

EDI award); or

(d) A request for a Section 108 loan guarantee amendment (analogous

to Section I(G)(1)(a) or (b) above) that proposes to increase the

amount of a previously approved application. However, any amount of

Section 108 loan guarantee authority approved before the date of this

SuperNOFA is not eligible to be used in conjunction with a EDI grant

under this SuperNOFA.

(2) Further, a Section 108 loan guarantee amount that is required

to be used in conjunction with a prior EDI grant award, whether or not

the Section 108 loan guarantee has been approved as of the date of this

SuperNOFA, is not eligible for an EDI award under this SuperNOFA. For

example, if a public entity has a previously approved Section 108 loan

guarantee commitment of $12 million, even if none of the funds have

been utilized, or if the public entity had previously been awarded an

EDI grant of $1 million and had certified that it will submit a Section

108 loan application for $10 million in support of that EDI grant, the

public entity's EDI application under this SuperNOFA must propose to

increase the amount of its total Section 108 loan guarantee commitments

beyond those amounts (the $12 million or $10 million in this example)

to which it has previously agreed.

(G) Eligible Activities and National Objectives

EDI grant funds may be used for activities listed at 24 CFR

570.703, provided such activities are carried out as part of an

economic development project as defined in Section I(B) of this EDI

section of this SuperNOFA. Each activity assisted with Section 108 loan

guarantee or EDI funds must meet a national objective of the CDBG

program (see 24 CFR 570.208). In the aggregate, a grantee's use of CDBG

funds, including any Section 108 loan guarantee proceeds and section

108(q) (EDI) funds provided pursuant to this program section of this

SuperNOFA, must comply with the CDBG primary objectives requirement as

described in section 101(c) of the Housing and Community Development

Act of 1974, as amended, and 24 CFR 570.200(c)(3) or 24 CFR 570.484 in

the case of State grantees. The foregoing eligible activities may also

include:

(1) Payment of costs of private financial guaranty insurance

policies, letters of credit, or other credit enhancements for the notes

or other obligations guaranteed by HUD pursuant to Section 108,

provided that the proceeds of such notes or obligations are used to

finance an economic development project. Such enhancements shall be

specified in the contract required by 24 CFR 570.705(b)(1), and shall

be satisfactory in form and substance to HUD for security purposes; and

(2) The payment of interest due (and other costs such as servicing,

underwriting, or other costs as may be authorized by HUD) on the notes

or other obligations guaranteed by HUD pursuant to the Section 108 loan

guarantee program.

(H) Limitations on Use of EDI and Section 108 Funds

Certain restrictions shall apply to the use of EDI and Section 108

funds:

(1) EDI grants shall not be used as a resource to immediately repay

the principal of a loan guaranteed under Section 108. Repayment of

principal is only permissible with EDI grant funds as a matter of

security if other sources projected for repayment of principal prove to

be unavailable.

(2) Applicants are cautioned against using Section 108 funds to

finance activities which also include financing generated through the

issuance of federally tax exempt obligations. Pursuant to Office of

Management and Budget (OMB) Circular A-129 (Policies for Federal Credit

Programs and Non-Tax Receivables), Section 108 guaranteed loan funds

may not directly or indirectly support federally tax-exempt

obligations.

(I) Limitations on Grant Amounts

(1) HUD expects to approve EDI grant amounts for approvable

applications at a range of ratios of EDI grant funds awarded to new

Section 108 loan guarantee commitments, but the minimum ratio will be

$1 of Section 108 loan guarantee commitments for every $1 of EDI grant

funds. However, applicants that propose a leverage ratio of 1:1 will

not receive any points under Ration Subfactor 4(1): ``Leverage of

Section 108 Funds.'' For example, an applicant requesting a EDI grant

of $1 million will be required to leverage a minimum of at least $1

million in new Section 108 loan guarantee commitments. This will be a

special condition of the EDI grant award. Of course, even though there

is a minimum ratio of 1:1, applications with higher ratios will receive

more points under Rating Factor 4, ``Leveraging Resources/Financial

Need'' and, all other things being equal, will be more competitive.

Applicants are encouraged to propose projects with a greater leverage

ratio of new Section 108 to EDI grant funds (assuming such projects are

financially viable). For example, $1 million of EDI could leverage $12

million of new Section 108 loan commitments. HUD intends that the EDI

funds will be used for projects which leverage the greatest possible

amount of Section 108 loan guarantee commitments.

(2) HUD expects that the average grant size will be approximately

$1 million.

(3) If additional EDI grant funds become available to HUD as the

result of recaptures prior to the date of this NOFA, HUD reserves the

right to award grants under this SuperNOFA whose aggregate total may

exceed the $38 million announced in this SuperNOFA, up to the maximum

amount authorized by law.

(4) In the event the applicant is awarded an EDI grant that has

been reduced below the original request (e.g. the application contained

some activities that were ineligible or there were insufficient funds

to fund the last competitive application at the full amount requested),

the applicant will be required to modify its project plans and

application to conform to the terms of HUD's approval before execution

of a grant agreement. HUD reserves the right to reduce or de-obligate

the EDI award if approvable Section 108 loan guarantee applications are

not

[[Page 23902]]

submitted by the grantee in the required amounts on a timely basis. Any

requested modifications must be within the scope of the original EDI

application.

(5) In the case of requested amendments to a previously approved

Section 108 loan guarantee commitment (as further discussed in Section

I(F)(1)(d), above), the EDI assistance approved will be based on the

increased amount of Section 108 loan guarantee assistance.

(J) Timing of Grant Awards

(1) To the extent a full Section 108 application is submitted with

the EDI grant application, the Section 108 application will be

evaluated concurrently with the request for EDI grant funds. Note that

EDI grant assistance cannot be used to support a Section 108 loan

guarantee approved prior to the date of the publication of this

SuperNOFA. However, the EDI grant may be awarded prior to HUD approval

of the Section 108 commitment if HUD determines that such award will

further the purposes of the Act.

(2) HUD notification to the grantee of the amount and conditions

(if any) of EDI funds awarded based upon review of the EDI application

shall constitute an obligation of grant funds, subject to compliance

with the conditions of award and execution of a grant agreement. EDI

funds shall not be disbursed to the public entity before the issuance

of the related Section 108 guaranteed obligations.

II. Program Requirements

In addition to the program requirements listed in the General

Section of this SuperNOFA, applicants are subject to the following

requirements.

(A) CDBG Program Regulations

The requirements of 24 CFR part 570, including subpart K (Other

Program Requirements).

(B) Environmental Review

After the completion of this competition and after HUD's award of

EDI grant funds, pursuant to 24 CFR 570.604, each project or activity

assisted under this program is subject to the provisions of 24 CFR part

58, including limitations on the EDI grant and Section 108 public

entity's commitment of HUD and non-HUD funds prior to the completion of

environmental review, notification and release of funds. No such

assistance will be released by HUD until a request for release of funds

is submitted and the requirements of 24 CFR part 58 have been met. All

public entities, including nonentitlement public entities, shall submit

the request for release of funds and related certification, required

pursuant to 24 CFR part 58, to the appropriate HUD field office for

each project to be assisted.

(C) Environmental Justice

Executive Order 12898 (Federal Actions to Address Environmental

Justice in Minority Populations and Low-Income Populations) directs

Federal agencies to develop strategies to address environmental

justice. Environmental justice seeks to rectify the disproportionately

high burden of environmental pollution that is often borne by low-

income, minority, and other disadvantaged communities, and to ensure

community involvement in policies and programs addressing this issue.

III. Application Selection Process

(A) Rating and Ranking

(1) Each rating factor and the maximum number of points is provided

below. The maximum number of points to be awarded is 102. This includes

two EZ/EC bonus points as described in the General Section of this

SuperNOFA.

(2) Once scores are assigned, all applications will be ranked in

order of points assigned, with the applications receiving more points

ranking above those receiving fewer points. Applications will be funded

in rank order.

(3) If HUD determines that an application rated, ranked and

fundable could be funded at a lesser EDI grant amount than requested

consistent with feasibility of the funded project or activities and the

purposes of the Act, HUD reserves the right to reduce the amount of the

EDI award and/or increase the Section 108 loan guarantee commitment, if

necessary, in accordance with such determination. An application in

excess of $1 million may be reduced below the amount requested by the

applicant if HUD determines that such a reduction is appropriate.

(4) HUD may decide not to award the full amount of EDI grant funds

available under this program section of this SuperNOFA and may make any

remaining amounts available under a future SuperNOFA, or under a

supplementary notice.

(B) Narrative Statement

Each applicant shall provide a narrative statement describing the

activities that will be carried out with the EDI grant funds and

explaining how the use of EDI grant funds meets the rating factor

identified below. The narrative statement shall not exceed three (3)

8.5'' by 11'' pages for the description of the activities to be carried

out with the EDI grant funds. The description of activities should

include a statement of how the proposed uses of EDI funds will meet the

national objectives under 24 CFR 570.208 for the CDBG program and

qualify as eligible activities under 24 CFR 570.703. Citations to the

specific regulatory subsections supporting eligibility are recommended,

but a narrative description will be accepted. See Section I(G) of this

program section of this SuperNOFA. Each of the listed rating factors

(or, where applicable, each subfactor) below also has a separate page

limitation specified. Narrative statements must be printed in 12 point

type/font, and have sequentially numbered pages.

(C) Factors for Award Used to Evaluate and Rate Applications

All applications will be considered for selection based on the

following factors that demonstrate the quality of the proposed project

or activities, and the applicant's creativity, capacity and commitment

to obtain maximum benefit from the EDI funds, in accordance with the

purposes of the Act.

Rating Factor 1: Capacity of the Applicant and Relevant Organizational

Experience (15 Points)

[Your response to this factor is limited to three (3) pages.]

This factor addresses the extent to which the applicant has the

organizational resources necessary to successfully implement the

proposed activities in a timely manner. The rating of the ``applicant''

or the ``applicant's organization and staff'' for technical merit or

threshold compliance, unless otherwise specified, will include any

faculty, subcontractors, consultants, subrecipients, and members of

consortia which are firmly committed (i.e., has a written agreement or

a signed letter of understanding with the applicant agreeing in

principle to its participation and role in the project). In rating this

factor, HUD will consider the following:

(1) With regard to the EDI/Section 108 project proposed by the

applicant, the applicant should demonstrate that it has the capacity to

implement the specific steps required to successfully carry out the

proposed EDI/Section 108 project. This includes factors such as the

applicant's:

(a) Performance in the administration of its CDBG, HOME or other

programs;

[[Page 23903]]

(b) Previous experience, if any, in administering a Section 108

loan guarantee;

(c) Performance and capacity in carrying out economic development

projects;

(d) Ability to conduct prudent underwriting;

(e) Capacity to manage and service loans made with the guaranteed

loan funds or previous EDI grant funds;

(f) Capacity to carry out its projects and programs in a timely

manner; and,

(g) If applicable, the applicant's capacity to manage projects

under this program section of this SuperNOFA along with any federal

funds awarded as a result of a federal urban Empowerment Zone/

Enterprise Community designation.

(2) If an applicant has previously received an EDI grant award(s),

the applicant must describe the status of the implementation of that

EDI-assisted project(s), any delays that have been encountered and the

actions the applicant is taking to overcome any such delays in order to

carry out the project in a timely manner. For such previously funded

EDI grant projects, HUD will consider the extent to which the awarded

EDI grant funds and the associated Section 108 guaranteed loan funds

have been utilized.

(3) The capacity of subrecipients, nonprofit organizations and

other entities that have a role in implementing the proposed program

will be included in this review. HUD may also rely on information from

performance reports, financial status information, monitoring reports,

audit reports and other information available to HUD in making its

determination under this factor.

Rating Factor 2: Distress/Extent of the Problem (15 Points)

[Your response to this factor is limited to three (3) pages.]

This factor addresses the extent to which there is need for funding

the proposed activities based on levels of distress, and an indication

of the urgency of meeting the need/distress in the target area.

(1) In applying this factor, HUD will consider current levels of

distress in the immediate community to be served by the project and the

jurisdiction applying for assistance. Applicants who are able to

indicate a level of distress in the immediate project area that is

greater than the level of distress in the applicant's jurisdiction as a

whole will receive a higher score under this factor than those who do

not. HUD requires that applicants use sound and reliable data that is

verifiable to support the level of distress claimed in the application.

The applicant shall provide a source for the information it uses.

(2) In previous EDI competitions, the poverty rate was often

considered the best indicator of distress; however, the applicant may

demonstrate the level of distress with other factors such as income

levels and unemployment rates.

(3) HUD will consider a project to have maximum distress if the

project(s) is located within the boundaries of a federally-designated

Empowerment Zone or Enterprise Community (Applicants will be

responsible for demonstrating that the project site is within the

boundaries of the applicant's EZ/EC area).

(4) To the extent that the applicant's Consolidated Plan and its

Analysis of Impediments to Fair Housing choice (AI) identifies the

level of distress in the community and the neighborhood in which the

project is being carried out, the applicant should include references

to such documents in preparing its response to this factor.

Rating Factor 3: Soundness of Approach (25 Points)

[Your response to this factor is limited to three (3) pages.]

This factor addresses the quality and cost-effectiveness of the

applicant's proposed plan. There must be a clear relationship between

the proposed activities, community needs and purposes of the program

funding for an applicant to receive points for this factor. In rating

this factor, HUD will consider the following:

(1) HUD will consider the quality of the applicant's plan/proposal

for the use of EDI funds and Section 108 loan funds, including the

extent to which the applicant's proposed plan for the effective use of

EDI grant/Section 108 loan guarantee will address the needs described

in Rating Factor 2 above regarding the distress and extent of the

problem in the applicant's immediate community and/or its jurisdiction.

(2) HUD will consider the extent to which the plan is logically,

feasibly, and substantially likely to achieve its stated purpose. HUD's

desire is to fund projects and activities which will quickly produce

demonstrable results and advance the public interest including the

number of jobs to be created by the project and the impact of the

project on job creation that will benefit individuals on or previously

on welfare. An applicant should demonstrate that it has a clear

understanding of the steps required to implement its project, the

actions that it and others responsible for implementing the project

must complete and shall include a reasonable time schedule for carrying

out the project.

(3) HUD will consider the extent to which the applicant's proposed

project addresses the applicant's Analysis of Impediments and the needs

identified in Factor 2 and the extent to which such project activities

will result in the physical and economic improvement for the residents

in the neighborhood in which the project will be carried out.

(4) HUD will evaluate the extent to which the applicant's project

incorporates one or more elements that facilitate a successful

transition of welfare recipients from welfare to work. Such an element

could include, for example, linking the proposed project or loan fund

to social and/or other services needed to enable welfare recipients to

successfully secure and carry out full-time jobs in the private sector;

provision of job training to welfare recipients who might be hired by

businesses financed through the proposal; and/or incentives for

businesses financed with EDI/section 108 funds to hire and train

welfare recipients.

(5) Up to two (2) additional points will be awarded to any

application submitted by the City of Dallas, Texas, to the extent this

subfactor is addressed. Due to an order of the U.S. District Court for

the Northern District of Texas, Dallas Division, with respect to any

application submitted by the City of Dallas, Texas, HUD's consideration

of the applicant's response to this factor, ``Soundness of Approach,''

will include the extent to which the applicant's plan for the use of

EDI funds and Section 108 loans will be used to eradicate the vestiges

of racial segregation in the Dallas Housing Authority's programs

consistent with the Court's order.

Rating Factor 4: Leveraging Resources/Financial Need (35 Points)

[Page limits for the response to this factor are listed separately for

each subfactor under this factor.]

In evaluating this factor, HUD will consider the extent to which

the applicant's response demonstrates the financial need and

feasibility of the project and the leverage ratio of Section 108 loan

proceeds to EDI grant funds. This factor has three subfactors, each

with its own maximum point total:

(1) Leverage of Section 108 funds (20 points). Your response to

this subfactor is limited to one (1) page. The minimum ratio of Section

108 funds to EDI funds in any project may not be less than 1:1. The

extent to which the proposed project leverages an amount of Section 108

funds beyond the 1:1 ratio will be considered a positive factor.

Applicants that have a ratio of 1:1 will not receive

[[Page 23904]]

any points under this subfactor. Applicants that use their EDI grant to

leverage more Section 108 commitments will receive more points under

this subfactor.

(2) Financial feasibility (10 points). [Your response to this

subfactor is limited to five (5) pages.] HUD will consider the extent

to which the applicant demonstrates that the project is financially

feasible. This may include factors such as:

(a) Project costs and financial requirements. Applicants should

provide a funding sources and uses statement (not included in 5 page

narrative limit) as well as justifications for project costs.

(b) The amount of any debt service or operating reserve accounts to

be established in connection with the economic development project.

(c) The reasonableness of the costs of any credit enhancement paid

with EDI grant funds.

(d) The amount of program income (if any) to be received each year

during the repayment period for the guaranteed loan.

(e) Interest rates on those loans to third parties (other than

subrecipients) (either as an absolute rate or as a plus/minus spread to

the Section 108 rate).

(f) Underwriting criteria that will be used in determining project

feasibility.

(3) Leverage of other financial resources (5 points). [Your

response to this subfactor is limited to one (1) page plus supporting

documentation evidencing third party commitment (written and signed) of

funds.] HUD will evaluate the extent to which the applicant leverages

other funds (public or private) with EDI grant funds and Section 108

guaranteed loan funds and the extent to which such other funds are

firmly pledged to the project. This could include the use of CDBG

funds, other Federal or state grants or loans, a grantee's general

funds, project equity or commercial financing provided by private

sources or funds from non-profits or other sources. Funds will be

considered pledged to the project if there is evidence of the third

party's written commitment to make the funds available for the EDI/108

project, subject to approval of the EDI and Section 108 assistance and

completion of any environmental review required under 24 CFR part 50

for the project. Note, that with respect to CDBG funds, the applicant's

pledge of its CDBG funds will be considered sufficient commitment.

Rating Factor 5: Comprehensiveness and Coordination (10 Points)

[Your response to this factor is limited to two (2) pages.]

This factor addresses the extent to which the applicant coordinated

its activities with other known organizations, participates or promotes

participation in the applicant's or a State's Consolidated Planning

process, and is working towards addressing a need in a comprehensive

manner through linkages with other activities in the community.

In evaluating this factor, HUD will consider the extent to which

the applicant demonstrates it has:

(1) Coordinated its proposed activities with those of other groups

or organizations prior to submission in order to best complement,

support and coordinate all known activities and if funded, the specific

steps it will take to share information on solutions and outcomes with

others. Any written agreements, memoranda of understanding in place, or

that will be in place after award should be described.

(2) Developed linkages, or the specific steps it will take to

develop linkages with other activities, programs or projects through

meetings, information networks, planning processes or other mechanisms

to coordinate its activities so solutions are holistic and

comprehensive, including linkages with other HUD-funded projects/

activities outside the scope of those covered by the Consolidated Plan.

IV. Application Submission Requirements

(A) Public entities seeking EDI assistance must make a specific

request for that assistance, in accordance with the requirements of

this program section of this SuperNOFA.

(B) The application should include an original and one copy of the

items listed below, with one additional copy submitted directly to the

Community Planning and Development Division of the cognizant HUD Field

Office for the applicant's jurisdiction.

(C) An EDI application shall consist of the following items:

(1) Transmittal letter from applicant;

(2) Table of contents;

(3) Application check list (supplied in application kit);

(4) A request for loan guarantee assistance under Section 108 as

further described in Section I(F) of this program section of the

SuperNOFA. Application guidelines for the Section 108 program are found

at 24 CFR 570.704;

(5) A described in Section III(B) of this program section of this

SuperNOFA, a narrative statement (3 page limit) describing the

activities that will be carried out with the EDI grant funds;

(6) Responses to each of the rating factors (within the page limits

provided for each factor or subfactor as applicable);

(7) Completion of a funding sources and uses statement and a EDI

and Section 108 eligibility statement (see the application kit);

(8) Written agreements or signed letters of understanding in

support of Rating Factor 1: ``Capacity of the Applicant and Relevant

Organizational Experience;''

(9) Signed third party commitment letters pledging funds in support

of subfactor 4(2): ``Leverage of other financial resources;''

(10) Required certifications; and

(11) Acknowledgement of Application Receipt form.

V. Corrections to Deficient Applications

The General Section of the SuperNOFA provides the procedures for

corrections to deficient applications.

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Consolidated Economic Development and Supportive Services and

Tenant Opportunities Programs

Program Description: Approximately $64.1 million in funding is made

available for two programs: Public and Indian Housing Economic

Development and Supportive Services Program (EDSS) and the Tenant

Opportunities Program (TOP). In general, although both programs fund

similar activities, Housing Authorities, Indian tribes, and Tribally

Designated Housing Entities are the recipients under EDSS while

resident associations are the recipients under TOP. Therefore, although

the funding availability announcements for these two programs have been

combined, the application processes will remain separate.

This program section of the SuperNOFA combines TOP and EDSS to

highlight HUD's parallel restructuring of these complementary programs.

The restructuring represents a major HUD initiative to improve the

targeting and management of limited resources for resident self-

sufficiency. The goal is to most effectively focus these resources on

``welfare to work'' and on independent living for the elderly and

persons with disabilities. HUD believes that it is imperative that

housing authorities and residents work together to meet the challenge

of welfare reform.

Application Due Date: Completed applications (one original and two

copies) must be submitted, at the address shown below, no later than

6:00 pm local time on:

July 31, 1998 for the EDSS Program; and

July 31, 1998 for the TOP Program.

Please see the General Section of this SuperNOFA for specific

procedures governing the form of application submission (e.g., mailed

applications, express mail, overnight delivery, or hand carried) and

the time by which the application must be received by HUD and/or

postmarked in order to meet the deadline for submission.

Address for Submitting Applications: An original and two copies of

the application must be received by the application due date at the

local Field Office with delegated public or assisted housing

responsibilities attention: Director, Office of Public or Assisted

Housing, or, in the case of the Native American population, to the

Administrator, Area Office of Native American Programs (AONAP), as

appropriate.

For Application Kits, Further Information and Technical Assistance

For Application Kits. For an application kit and any supplemental

information please call the SuperNOFA Information Center at 1-800-HUD-

8929. Persons with hearing or speech impairments may call the Center's

TTY number at 1-800-HUD-2209. The application kit also will be

available on the Internet through the HUD web site at http://

www.hud.gov. When requesting an application kit, please refer to EDSS/

TOP and provide your name, address (including zip code), and telephone

number (including area code).

For Further Information and Technical Assistance. For answers to

your questions, you have several options. You may call the local HUD

field office with delegated responsibilities over the pertinent housing

agency/authority, or in the case of an Indian tribe or a Tribally

Designated Housing Entity (TDHE) applying for EDSS grants, the AONAP

with jurisdiction over the tribe/TDHE. Answers may also be obtained by

calling the Public and Indian Housing Information and Resource Center

at 1-800-955-2232. Information on this SuperNOFA may also be obtained

through the HUD web site on the Internet at http://www.HUD.gov.

Additional Information

I. Authority; Purpose; Amount Allocated; and Eligibility

The Authority, Purpose of the Program, Amount Allocated, Program

Award Period, Eligible Applicants; Grants Amounts; Eligible and

Ineligible Activities, and Additional Program Requirements, as

applicable, are delineated under each technical assistance program area

for which funding is being made available. Applicants should take care

in reviewing this section to ensure they are eligible to apply for

funds and that they meet the additional program requirements and

limitations described for each program.

(A) Authority

(1) For the EDSS Program, the Community Development Block Grant

section of the FY 1998 HUD Appropriations Act.

(2) For TOP, section 20 of the U.S. Housing Act of 1937. The TOP

regulations are found in 24 CFR part 964.

(3) Common Definitions. Please see Appendix A to this EDSS/TOP

section of the SuperNOFA for common definitions.

(B) Purpose

The purposes of the two programs are as follows:

(1) EDSS. The purpose of the EDSS program is to provide grants to

Public Housing Authorities (PHAs), Tribes or their Tribally Designated

Housing Entities (TDHEs) to enable them to establish and implement

programs that increase resident self-sufficiency, and support continued

independent living for elderly and disabled residents.

(2) TOP. TOP provides grants to public housing Site-Based Resident

Councils, Resident Management Corporations and Intermediary Resident

Organizations to provide resident training such as improving resident

educational, professional, and economic levels by providing skills to

make them more employable in the local community; organizational

capacity-building for newly created resident associations; and training

residents to resolve disputes in public housing.

(C) Amount Allocated for EDSS

(1) Amount Allocated. For EDSS, $47,211,223 is available in funds

for eligible PHAs, Tribes/TDHEs. This amount includes the FY 98 EDSS

appropriation of $30 million and FY 97 carryover funds of $17,211,223.

HUD is setting aside $5 million of this amount to fund applications

from Tribes/TDHEs with the remaining available to fund applications

from PHAs.

(a) Both the amount for Tribes/TDHEs and PHAs will be allocated as

follows: 60% will be allocated to Family Economic Development and

Supportive Services category grants; and the remaining 40% will be

allocated to Elderly and Disabled Supportive Services category grants.

(b) A PHA, Tribe/TDHE may submit one application under the Family

Economic Development and Supportive Services grant category and/or one

application under the Elderly and Disabled Supportive Services grant

category.

The maximum number of applications that a HA may submit is two. If

an applicant is applying for both funding categories, then it must

submit two separate applications in which the total amount requested

must not exceed the maximum grant amount available for its size under

the Family Economic Development and Supportive Services category.

(2) Maximum Grant Awards. The maximum grant awards are limited as

follows:

(a) For Family Economic Development and Supportive Services

category--no more than $250 per unit up to the below listed maximums:

(i) For PHAs, Tribes/TDHEs with 1 to 780 units, the maximum grant

award is $150,000.

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(ii) For PHAs, Tribes/TDHEs with 781 to 7,300 units, the maximum

grant award is $500,000.

(iii) For PHAs, Tribes/TDHEs with 7,301 or more units, the maximum

grant award is $1,000,000.

(b) For elderly or Disabled Supportive Services category--no more

than $250 per unit up to the below listed maximums:

(i) For PHAs, Tribes/TDHEs with 1 to 217 units occupied by Elderly

residents or persons with disabilities, the maximum grant award is

$54,250.

(ii) For PHAs, Tribes/TDHEs with 218 to 1,155 units occupied by

Elderly residents or persons with disabilities, the maximum grant award

is $200,000.

(iii) For PHAs, Tribes/TDHEs with 1,156 or more units occupied by

Elderly residents or persons with disabilities, the maximum grant award

is $300,000.

(3) Tribes/TDHEs should use the number of units counted as Formula

Current Assisted Stock for Fiscal Year 1998 as defined in 24 CFR

1000.316. Tribes who have not previously received funds from the

Department under the 1937 Act should count housing units under

management that are owned and operated by the tribe and are identified

in their housing inventory as of September 30, 1997.

(D) Amount Allocated for TOP

$16,884,530 ($5 million in FY 98 appropriations and $11,884,530 in

carry over funds) is available for awards to qualified applicants to

provide technical assistance and training activities under the TOP

program. The TOP funding will be distributed to the three grant

categories as follows: Economic Self-Sufficiency Grants--$10.9 million,

Organizational Development Grants--$3 million, and Mediation Grants--$3

million. If all funds are not awarded in one category, funds are

transferable to the other grant categories for use by qualified

applicants.

(1) TOP Grant Categories. TOP funding is allocated to the following

grant categories:

(a) Economic Self-Sufficiency Grant (ESSG) provides assistance to

Site-Based Resident Associations (RAs) and Intermediary Resident

Organizations (IROs), to move welfare dependent families to work. The

applicant must provide evidence that at least 51% of those served are

households affected by welfare reform. The funds can be used for

training and technical assistance which will provide educational, job,

business, and life skills to enable residents to move towards self-

sufficiency and consistent with a needs assessment. For elderly/

disabled developments, TOP funds can be used for stipends and training

(including business development training, if appropriate) for residents

to: engage in day care for children, provide professional and personal

mentoring, raise grandchildren, and provide other intergenerational

service. When TOP funds are utilized in this manner, the elderly

residents providing these services need not be affected by welfare

reform; however, at least 51 percent of those to be assisted by the

services to be provided by elderly residents must be affected by

welfare reform.

(b) Organizational Development Grants (ODG) provide assistance to

Site-Based Resident Associations who do not yet have the capacity to

administer a welfare-to-work program or conduct management activities.

The funds will be targeted to help establish new resident organizations

or enhance the capacity of existing organizations to assist residents,

participate in Housing Authority decision-making, manage all or a

portion of their developments, and/or apply for and administer grants.

An additional grant applicant is not eligible to apply for this grant.

(c) Mediation Grant provides assistance to Intermediary Resident

Organizations (IROs) partnering with professional mediators to resolve

conflicts involving public housing residents and/or Site-Based Resident

Associations. The skilled mediator/partners, under the auspices of an

IRO, will bridge impasses between residents and/or factions within

specific developments, among active participants of a Site-Based

Resident Association (RA), or between an RA and its partners,

especially local Housing Authorities. The grant applicant must apply in

partnership with a recognized professional mediation organization. All

applicants must have entered into at least one referral agreement with

judicial, law enforcement or social services agencies to mediate for

public housing residents served by the agency. After awarding the

grants, HUD would refer cases requiring mediation to the grantee. Also

conflicting parties, on their own initiative, could request mediation

services directly to the grantee. While mediating for residents and

their partners, the professional mediators would also train IRO grantee

staff in mediation principles and skills for mediation in the future.

(2) TOP Grant Categories' Amounts.

(a) Basic Grants. Any eligible Site-Based RA in the development

that has not previously received up to the following amount for an ESS

grant or Organizational Development grant.

(i) ESS grant--Site-Based RAs may receive up to $100,000 less the

value of any TOP assistance previously received by the development from

an IRO.

(ii) Organizational Development grant--Site-Based RA may receive up

to $40,000.

(b) Additional Grants (ESS Grant Only). Any eligible RA selected

for a Resident Management (RM) or a TOP grant in FYs 1988-1997

(including a mini grant for start-up activities) that received less

than a total of $100,000 may apply for an Additional Grant for economic

self sufficiency, provided that the total cumulative RM/TOP funding for

a project site, including Citywide or Intermediary Grant funds

benefiting the project does not exceed (including previous grants) the

total statutory maximum of $100,000. Additional Grant applicants may

not apply for an Organizational Development grant.

(c) Intermediary Grants. (i) Any eligible NRO, RRO, or SRO may

apply for a single ESS, Organizational Development or Mediation grant

for up to $250,000. These organizations may also apply for one grant

each in two or more of the grant categories provided that the combined

amount requested by the IRO this year does not exceed $350,000.

(ii) A Jurisdiction-wide Resident Organization may apply for an

ESS, OD or Mediation grant for an amount of up to $100,000. A

Jurisdiction-wide Organization may not apply in more than one grant

category.

(iii) An IRO cannot assist RAs that have already received RM/TOP

grants totaling $100,000 and cannot propose to provide assistance to a

given project that would result in the project exceeding its statutory

maximum for RM/TOP funding.

(d) Housing Authority Jurisdiction Maximum. The amount of funding

available for all applicants that are not Intermediary Resident

Organizations, that are located within the jurisdiction of a single

housing authority is limited to the following amounts based on the size

of the housing authority.

(i) For Housing Authorities with one to 780 units the maximum

funding amount is $700,000.

(ii) For Housing Authorities with 781 to 7,300 units the maximum

funding amount is $1,400,000.

(iii) For Housing Authorities with more than 7,301 units the

maximum funding amount is $2,100,000.

(E) Eligible Applicants

(1) EDSS Eligible Applicants.

PHAs, Tribes or their TDHEs that have not received a previous EDSS

grant are eligible applicants.

(2) TOP Eligible Applicants. (a) Public housing Site-Based Resident

Councils,

[[Page 23909]]

Resident Management Corporations and Intermediary Resident

Organizations which include National Resident Organizations, Statewide

Resident Organizations, Regional Resident Organizations, and

Jurisdiction wide Resident Organizations.

(b) Please see Appendix A to this TOP/EDSS section of the SuperNOFA

for the definition of Intermediary Resident Organization. Additionally,

Intermediary Resident Organizations must be registered with the state

as non-profit corporations and have applied for or received 501(c)

status with the U.S. Internal Revenue Service. Eligible Intermediary

Resident Organizations must list in their application the name of the

RAs that will receive training or technical assistance, and submit

letters of support from each entity identified in the application.

(3) Indian Housing Resident Organizations are now ineligible to

apply for TOP funding. The President signed into law the Native

American Housing Assistance and Self-Determination Act of 1996

(NAHASDA) on October 26, 1996, which terminated Indian Housing

Assistance under the U.S. Housing Act of 1937.

(F) EDSS Eligible Activities

EDSS Program funds may be used for the activities as described

below. At least 75 percent of the persons participating and receiving

benefits from these activities must be residents of conventional Public

or Indian Housing. Any other persons (up to 25 percent per grantee)

participating or receiving benefits from these programs must be

recipients of Section 8 assistance.

(1) Family Economic Development and Supportive Services category.

(a) Economic Development activities. Activities essential to

facilitate economic uplift and provide access to the skills and

resources needed for self-development and business development.

Economic development activities may include:

(i) Entrepreneurship Training (literacy training, computer skills

training, business development planning).

(ii) Entrepreneurship Development (entrepreneurship training

curriculum, entrepreneurship courses).

(iii) Micro/Loan Fund. Developing a strategy for establishing a

revolving micro/loan fund and/or capitalizing a loan fund.

(iv) Developing credit unions. Developing a strategy to establish

and/or create onsite credit union(s) to provide financial and economic

development initiatives to PHA/Tribal/TDHE residents. (EDSS grant funds

cannot be used to capitalize a credit union.) The credit union could

support the normal financial management needs of the community (i.e.,

check cashing, savings, consumer loans, micro-businesses and other

revolving loans).

(v) Employment training and counseling (e.g., job training (such as

Step-Up programs), preparation and counseling, job search assistance,

job development and placement, and continued follow-up assistance).

(vi) Employer linkage and job placement.

(b) Supportive Services. The provision of services to assist

eligible residents to become economically self-sufficient, particularly

families with children where the head of household would benefit from

the receipt of supportive services and is working, seeking work, or is

preparing for work by participating in job-training or educational

programs. Supportive services may include:

(i) 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.

(ii) Computer based educational opportunities, skills training, and

entrepreneurial activities.

(iii) Homeownership training and counseling, development of

feasibility studies and preparation of homeownership plans/proposals.

(iv) Education including but not limited to: Remedial education;

Literacy training; Assistance in the attainment of certificates of high

school equivalency; Two-year college tuition assistance; Trade school

assistance; Youth leadership skills and related activities (activities

may include peer leadership roles training for youth counselors, peer

pressure reversal, life skills, goal planning).

(vi) Youth mentoring of a type that mobilizes a potential pool of

role models to serve as mentors to public or Indian housing youth.

Mentor activities may include after-school tutoring, help with problem

resolution issues, illegal drugs avoidance, job counseling or mental

health counseling.

(vii) Transportation costs, as necessary to enable any

participating family member to receive available services to commute to

his or her training or supportive services activities or place of

employment.

(viii) Personal wellbeing (e.g., family/parental development

counseling, parenting skills training for adult and teenage parents,

and self-development counseling, etc.).

(ix) Supportive health care services (e.g., outreach and referral

services to substance and alcohol abuse treatment and counseling, for

example, mental health).

(x) Contracting for case management services contracts or

employment of case managers, either of which must ensure

confidentiality about resident's disabilities.

(2) Elderly or Disabled Supportive Services category. Supportive

Services for the elderly and for persons with disabilities include:

(a) Meal service adequate to meet nutritional need;

(b) Assistance with daily activities;

(c) Housekeeping aid;

(d) Transportation services;

(e) Wellness programs, preventive health education, referral to

community resources;

(f) Personal emergency response; and

(g) Congregate services--includes supportive services that are

provided in a congregate setting at a conventional HA development.

(3) For both Family Economi

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