Section 8 Tenant-Based Assistance for Persons With Disabilities, Fiscal Year 1998

SUMMARY: This NOFA announces the availability of budget authority for

approximately 8700 Section 8 rental vouchers and certificates for

persons with disabilities. HUD is issuing this NOFA, along with its

SuperNOFA for Targeted Housing and Homeless Assistance Programs

(published elsewhere in today's Federal Register), in order to

encourage local efforts toward comprehensive planning and development

of comprehensive local solutions.

This NOFA announces the availability of approximately $48.5 million

in 5-year budget authority under the Mainstream Program for Section 8

rental vouchers and certificates for persons with disabilities. This

funding will support approximately 1,700 rental vouchers or

certificates to enable persons with disabilities (elderly and non-

elderly) to rent affordable private housing. Public Housing Agencies

(PHAs) are invited to respond to this NOFA.

This NOFA also announces the availability in FY 1998 of

approximately $20 million in one-year budget authority for

approximately 3,500 Section 8 rental vouchers and certificates for non-

elderly families with disabilities in support of designated housing

allocation plans, and approximately $20 million in one-year budget

authority for approximately 3,500 Section 8 rental vouchers and

certificates for non-elderly disabled families who are not currently

receiving housing assistance in certain Section 8 project-based

developments due to the owners establishing preferences for the

admission of elderly families, and certain types of section 202,

section 221(d)(3), and section 236 developments where the owners are

restricting occupancy in the development (or portion thereof) to

elderly families. PHA applications for funding related to designated

housing allocation plans, and PHA applications for funding related to

non-elderly disabled families currently on the waiting lists or

otherwise in the community of certain Section 8 project-based

developments and certain types of section 202, section 221(d)(3) and

section 236 developments will be approved for funding on a first-come,

first-served basis.

Approximately $39 million ($25 million for designated housing

allocation plans and $14 million related to certain types of Section 8

project-based developments) of the $50 million in funding announced as

available to PHAs under NOFA FR-4207, published in the Federal Register

on April 10, 1997 (62 FR 17672), remains unobligated. These remaining

funds, for which there was no application deadline, may be sufficient

to fund all applications received during FY 1998 without having to use

the FY 1998 appropriations provided for similar purposes. Funding

announced in NOFA FR-4207 must be obligated before any new amounts are

provided for applications related to designated housing allocation

plans or certain types of Section 8 project-based developments. HUD's

FY 1998 Appropriations Act expanded the use of any FY 1997 funding

remaining unobligated under NOFA FR-4207, as well as allowed for the

use of FY 1998 appropriations, to fund applications received for

Section 8 rental vouchers and certificates in connection with non-

elderly disabled families affected by the restriction in certain types

of section 202, section 221(d)(3), and section 236 developments to

elderly families. Any portion of the current balance of $39 million in

FY 1997 appropriations, or $40 million in FY 1998 appropriations

related to designated housing allocation plans, certain types of

Section 8 project-based developments, or certain types of section 202,

section 221(d)(3), or section 236 developments remaining unobligated

will be added to the approximately $48.5 million available under this

NOFA, but for use only for non-elderly disabled families under the

Mainstream Program. The authority to use any remaining funds for

additional Section 8 rental vouchers and certificates under the

Mainstream Program is found in HUD's 1998 Appropriations Act, which

states that to the extent the Secretary determines that the FY 1997 and

1998 appropriations related to designated housing allocation plans,

certain types of Section 8 project-based developments, and certain

types of section 202, section 221(d)(3), or section 236 developments is

not needed to fund applications, the funds may be used for other non-

elderly disabled families. Consequently, PHAs should take this into

consideration when deciding whether to apply for Mainstream Program

funding, as the potential availability of such remaining funds in FY

1998 would support approval of more than 10,000 additional Section 8

rental vouchers and certificates. Unlike in FY 1997, the potential

exists in FY 1998 to fund a far greater number of Mainstream Program

applications from PHAs.

With the exception of the ADDRESSES AND APPLICATION SUBMISSION

PROCEDURES section of this NOFA, and section I.(A) of this NOFA, which

cites the authority under which funding is being made available, the

remainder of this NOFA applies only to the Mainstream Program.

Application Due Dates

(A) Delivered Applications

The application deadline for delivered applications for the

Mainstream Program is July 7, 1998, 6:00 p.m. local HUD Field Office

HUB or local HUD Field Office Program Center time.

The above-stated application deadline is firm as to date and hour.

In the interest of fairness to all competing public housing agencies,

HUD will treat as ineligible for consideration any application that is

not received before the application deadline. Applicants should submit

their materials as early as possible to avoid any risk of loss of

eligibility because of unanticipated delays or other delivery-related

problems. HUD will not accept, at any time during the NOFA competition,

application materials sent by facsimile (FAX) transmission.

(B) Mailed Applications

Applications for the Mainstream Program will be considered timely

filed if postmarked before midnight on the application due date and

received by the local HUD Field Office HUB or local HUD Field Office

Program Center within ten (10) days of that date.

(C) Applications Sent by Overnight Delivery

Overnight delivery items will be considered timely filed for the

Mainstream Program 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.

Address and Application Submission Procedures

Headquarters Submission

The original and a copy of applications for each of the three

programs covered by this NOFA: (1) Section 8 rental voucher and

certificate funding for the Mainstream Program, (2) non-elderly

disabled families in support

[[Page 24051]]

of designated housing allocation plans, and (3) non-elderly disabled

families in connection with certain Section 8 project-based

developments and certain types of section 202, section 221(d)(3) and

section 236 developments should be submitted to the local HUD Field

Office HUB, Attention: Director, Office of Public Housing; or to the

local HUD Field Office Program Center, Attention: Program Center

Coordinator. A copy of an application submitted in connection with a

designated housing allocation plan should also be submitted

concurrently to HUD Headquarters, Office of Customer Service and

Amenities, Room 4206, 451 Seventh Street, SW., Washington, DC 20410.

The local HUD Field Office HUB or local HUD Field Office Program Center

is the official place of receipt for all applications submitted in

response to this NOFA. For ease of reference, the term ``local HUD

Field Office'' will be used throughout this NOFA to mean the local HUD

Field Office HUB and local HUD Program Center.

PHAs submitting an application for either of the $20 million

increments of funding (related to either allocation plans, or certain

types of Section 8 project-based developments and certain types of

section 202, section 221(d)(3) and section 236 developments) available

under this FY 1998 NOFA should note that, other than the address for

submission of applications specified in NOFA FR-4207, they are to

otherwise follow the application procedures and requirements set forth

in NOFA FR-4207 published on April 10, 1997, and NOFA FR-4085 published

on October 30, 1996, in the Federal Register. PHAs submitting an

application related to funding available for non-elderly disabled

families in connection with certain types of Section 8 project-based

developments should also see the correction to NOFA FR-4207 dated April

17, 1997, in the Federal Register. The 200-unit limitation on the

number of Section 8 rental certificates or vouchers that any PHA may

request that was addressed by the correction shall also be the same

unit limitation for applications submitted in response to this FY 1998

NOFA in connection with the funding related to certain types of section

202, section 221(d)(3), and section 236 developments. Section I.(A) in

this FY 1998 NOFA further describes and defines these developments.

The FY 1997 publications are included in the application kits

available under this NOFA for these programs.

For Application Kits, Further Information and Technical Assistance:

For Application Kits. HUD will be pleased to provide you with

application kits for purposes of submitting an application in

connection with funding for either designated housing allocation plans,

or with regard to certain types of Section 8 project-based developments

or certain types of section 202, section 221(d)(3), and section 236

developments. An application kit is not necessary for submitting an

application for Mainstream Program funding. 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. HUD 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

local HUD Field Office should receive a copy of your application.

For Further Information. For answers to your questions, you have

several options. You may contact the local HUD Field Office.You may

also contact George C. Hendrickson, Housing Program Specialist, Office

of Public and Assisted Housing Delivery, Department of Housing and

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

telephone (202) 708-0477. (The number listed above is not a toll-free

number). Persons with hearing or speech impairments may access this

number via TTY (text telephone) by calling the Federal Information

Relay Service at 1-800-877-8339 (this is a toll-free number).

For Technical Assistance. Prior to the application due date, HUD

staff will be available to provide general guidance and technical

assistance about this NOFA. Current law does not permit HUD staff to

assist in preparing the application. Following selection, 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

by HUD.

Additional Information

I. Authority, Purpose, Amount Allocated, and Eligibility

(A) Authority

Authority for the approximately $48.5 million in 5-year budget

authority available for the Mainstream Program under this NOFA (general

use rental assistance for persons with disabilities) is found in the

Departments of Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 1998 (Pub. L. No. 105-65;

approved October 27, 1997) (1998 Appropriations Act), which states that

the Secretary may designate up to 25 percent of the amounts earmarked

for Section 811 of the National Affordable Housing Act of 1990 (42

U.S.C. 8013) for tenant-based assistance, as authorized under that

section.

HUD's 1998 Appropriations Act also authorizes the use of

approximately $40 million in one-year budget authority for Section 8

rental vouchers and certificates for non-elderly disabled families in

support of designated housing allocation plans, for non-elderly

disabled families who are not currently receiving housing assistance in

certain Section 8 project-based developments due to the owners

establishing preferences for the admission of elderly families, and for

non-elderly disabled families not being housed in certain section 202,

section 221(d)(3) and section 236 developments (or portions thereof)

where the owners have restricted occupancy to elderly families. HUD's

1998 Appropriations Act added this third category of eligible families

(non-elderly disabled families affected by occupancy restrictions

established in accordance with section 658 of the Housing and Community

Development Act of 1992 (the 1992 Act)). Section 658 of the 1992 Act

provides that an owner of a Federally assisted project (or portion of a

project) as described in subparagraphs (D), (E), and (F) of section

683(2), that was designed for occupancy for elderly families may

continue to restrict occupancy in such project (or portion) to elderly

families in accordance with the rules, standards, and agreements

governing occupancy in such housing in effect at the time of the

development of the housing. The three types of housing listed under the

relevant subsections are: housing that is assisted under section 202 of

the Housing Act of 1959, as such section existed before the enactment

of the National Affordable Housing Act (NAHA); housing financed by a

loan or mortgage insured under section 221(d)(3) of the National

Housing Act that bears an interest rate determined under section

221(d)(5); and housing insured, assisted or held by the Secretary or a

State or State Agency under section 236 of the National Housing Act.

The 1998 Appropriations Act states that to the extent the Secretary

determines that the FY 1997 and FY 1998 appropriations related to

[[Page 24052]]

designated housing allocation plans and certain types of Section 8

project-based developments and certain types of section 202, section

221(d)(3) and section 236 developments are not needed to fund

applications, the funds may be used for other non-elderly disabled

families. Any such remaining funds will be used to supplement funding

for the Mainstream Program. As a result, approximately $79 million may

be available in additional funding in FY 1998 for the Mainstream

Program.

(B) Purpose

The Secretary has established a Mainstream Housing Opportunities

for Persons with Disabilities Program (Mainstream Program) to provide

rental vouchers or certificates to enable persons with disabilities to

rent affordable private housing of their choice.

The Mainstream Program will assist PHAs in providing Section 8

rental vouchers and certificates to a segment of the population

recognized by HUD's housing research as having one of the worst case

housing needs of any group in the United States; i.e., very low-income

households with adults with disabilities. In addition, the Mainstream

Program will assist persons with disabilities who often face

difficulties in locating suitable and accessible housing on the private

market.

(C) Amount Allocated

HUD will award funding for rental vouchers or certificates under

the Mainstream Program to PHAs that submit an application for rental

assistance for persons with disabilities. HUD will make available

approximately $48.5 million for approximately 1,700 Section 8 rental

vouchers and certificates for PHAs to increase the supply of mainstream

housing opportunities available to persons with disabilities. HUD will

supplement the Mainstream Program funding with additional funding to

the extent funding is not needed during FY 1998 to fund applications in

support of designated housing allocation plans, or applications related

to non-elderly disabled families on the waiting lists of certain types

of Section 8 project-based developments where the owner has established

a preference for the admission of elderly families. HUD will select PHA

applications for funding by lottery in the event approvable

applications are received for more funding than is available under this

NOFA.

There is a limit on the amount of rental assistance that may be

requested. An eligible PHA may apply for one of the following: (1) up

to 100 rental vouchers, (2) up to 100 rental certificates, or (3) a

combination of rental vouchers and certificates not to exceed 100. A

State or Regional (multicounty) PHA may apply for up to 200 rental

vouchers or certificates (either all rental vouchers, all rental

certificates, or a combination of the two not to exceed 200).

(D) Eligible Applicants

A PHA established pursuant to State law may apply for funding under

this NOFA. Indian Housing Authorities are no longer eligible for new

increments of Section 8 funding. A regional (multicounty) or State PHA

is eligible to apply for funding.

Some PHAs currently administering the Section 8 rental voucher and

certificate programs have, at the time of publication of this NOFA,

major program management findings that are open and unresolved or other

significant program compliance problems (e.g., PHA has not implemented

mandatory Family Self-Sufficiency (FSS) Program). HUD will not accept

applications for additional funding from these PHAs as contract

administrators if, on the application due date, the findings are not

closed to HUD's satisfaction. If the PHA wants to apply for funding

under this NOFA, the PHA must submit an application that designates

another housing agency, nonprofit agency, or contractor, that is

acceptable to HUD. The PHA's application must include an agreement by

the other housing agency, nonprofit agency, or contractor to administer

the new funding increment on behalf of the PHA, and a statement that

outlines the steps the PHA is taking to resolve the program findings.

Immediately after the publication of this NOFA, the Office of Public

Housing in the local HUD Field Office will notify, in writing, those

PHAs that are not eligible to apply without such an agreement. The PHA

may appeal the decision, if HUD has mistakenly classified the PHA as

having outstanding management or compliance problems. Any appeal must

be accompanied by conclusive evidence of HUD's error and must be

received prior to the application deadline. HUD will reject

applications submitted by these PHAs without an agreement from another

housing agency, nonprofit agency, or contractor, approved by HUD, to

administer the new funding increment on behalf of the PHA.

(E) Eligible Participants

Only a disabled family may receive a rental voucher or certificate

awarded under the Mainstream Program. Applicants with disabilities will

be selected from the PHA's Section 8 waiting list.

II. Program Requirements and Definitions.

(A) Program Requirements

(1) Compliance With Fair Housing and Civil Rights Laws. All

applicants must comply with all fair housing and civil rights laws,

statutes, regulations, and executive orders as enumerated in 24 CFR

5.105(a). If an applicant: (a) has been charged with a violation of the

Fair Housing Act by the Secretary; (b) is the defendant in a Fair

Housing Act lawsuit filed by the Department of Justice; or (c) 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 NOFA until the applicant

resolves such charge, lawsuit, or letter of findings to HUD's

satisfaction.

(2) Additional Nondiscrimination Requirements. Applicants must

comply with the Americans with Disabilities Act, and Title IX of the

Education Amendments Act of 1972. In addition to compliance with the

civil rights requirements listed at 24 CFR 5.105, each successful

applicant must comply with the nondiscrimination in employment

requirements of Title VII of the Civil Rights Act of 1964 (42 U.S.C.

2000e et seq.), the Equal Pay Act (29 U.S.C. 206(d)), the Age

Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.), and

Titles I and V of the Americans with Disabilities Act (42 U.S.C. 12101

et seq.).

(3) Affirmatively Furthering Fair Housing. Each successful

applicant will have a duty to affirmatively further fair housing.

Applicants will be required to identify the specific steps that they

will take to: (a) address the elimination of impediments to fair

housing that were identified in the jurisdiction's Analysis of

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

housing; or (c) 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 this NOFA.

(4) Certifications and Assurances. Each applicant is required to

submit signed copies of Assurances and Certifications. The standard

Assurances and Certifications are on Form HUD-52515, Funding

Application, which includes the Equal Opportunity

[[Page 24053]]

Certification, Certification Regarding Lobbying, and Certification

Regarding Drug-Free Workplace Requirements.

(5) Family Self-Sufficiency (FSS) Program Requirement. Unless

specifically exempted by HUD, all rental vouchers and certificates

provided under this NOFA will be used to establish or contribute to the

minimum size of the PHA's FSS program.

(6) Rental Voucher and Certificate Assistance Requirements.

(a) Section 8 regulations. PHAs must administer the Mainstream

Program in accordance with HUD regulations and requirements governing

the Section 8 rental voucher and certificate programs.

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

provided to eligible applicants in conformity with regulations and

requirements governing the Section 8 program and the PHA's

administrative plan.

If there is ever an insufficient pool of disabled families on the

PHA Section 8 waiting list, the PHA shall conduct outreach to encourage

eligible persons to apply for this special allocation of rental

vouchers and certificates. Outreach may include contacting independent

living centers, advocacy organizations for persons with disabilities,

and medical, mental health, and social service providers for referrals

of persons receiving such services who would benefit from Section 8

assistance. If the PHA's Section 8 waiting list is closed, and if the

PHA has insufficient applicants on its Section 8 waiting list to use

all awarded rental vouchers and certificates under this NOFA, the PHA

shall open the waiting list for applications from disabled families.

(c) Turnover. When a rental voucher or certificate under this NOFA

becomes available for reissue (e.g., the family initially selected for

the program drops out of the program or is unsuccessful in the search

for a unit), the rental assistance may be used only for another

individual or family eligible for assistance under this NOFA for 5

years from the date the rental assistance is placed under an annual

contributions contract (ACC).

(d) PHA Responsibilities. In addition to PHA responsibilities under

the Section 8 rental voucher and certificate programs and HUD

regulations concerning nondiscrimination based on disability (24 CFR

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

rental voucher or certificate funding shall:

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

to gain access to supportive services available within the community,

but not require eligible applicants or participants to accept

supportive services as a condition of participation or continued

occupancy in the program.

(ii) Identify public and private funding sources to assist

participants in covering the costs of modifications that need to be

made to their units as a reasonable accommodation for their

disabilities.

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

program other housing opportunities, or otherwise restrict access to

PHA programs to eligible applicants who choose not to participate.

(iv) Provide Section 8 search assistance.

(B) Definitions

(1) Disabled Family. A family whose head, spouse, or sole member is

a person with disabilities. The term ``disabled family'' may include

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

persons with disabilities living with one or more live-in aides. A

disabled family may include a person with disabilities who is elderly.

(Note: This definition applies to the approximately $48.5 million

available under the Mainstream Program. This definition shall be

modified, however, to be limited to solely non-elderly disabled

families (families whose head, spouse or sole member is disabled and

under the age of 62) regarding any funding available and awarded from

the approximately $50 million in FY 1997 and $40 million in FY 1998 for

designated housing allocation plans or in connection with certain

Section 8 project-based developments. See the SUMMARY section at the

beginning of this NOFA regarding the possibility of additional

Mainstream Program funding during FY 1998 beyond the approximately

$48.5 million available as announced under this NOFA.)

(2) Person with disabilities. A person who--

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

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

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

impairment that:

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

(ii) Substantially impedes his or her ability to live

independently; and

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

more suitable housing conditions, or

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

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

6001(5)).

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

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

conditions arising from the etiologic agent for acquired

immunodeficiency syndrome (HIV).

Note: While the above definition of a ``person with

disabilities'' is to be used for purposes of determining a family's

eligibility for a Section 8 rental voucher or certificate under this

NOFA, the definition of a person with disabilities contained in

section 504 of the Rehabilitation Act of 1973 and its implementing

regulations must be used for purposes of reasonable accommodations.

(3) Section 8 search assistance. Assistance to increase access by

program participants to housing units in a variety of neighborhoods

(including areas with low poverty concentrations) and to locate and

obtain units suited to their needs.

III. Application Selection Process for Mainstream Program

After the local HUD Field Office has screened PHA applications and

disapproved any applications found unacceptable for further processing,

the local HUD Field Office will review all acceptable applications to

ensure that they are technically adequate and responsive to the

requirements of the NOFA. The local HUD Field Office will send to HUD

Headquarters' Office of Funding and Financial Management the following

information on each application that is found technically adequate and

responsive:

(1) Name and address of the PHA;

(2) Local HUD Field Office contact person and telephone number;

(3) The number of rental vouchers and/or certificates in the PHA

application, and the minimum number of rental vouchers and/or

certificates acceptable to the PHA; and

(4) A completed fund reservation worksheet, indicating the number

of Section 8 rental vouchers and/or certificates requested in the PHA

application and recommended for approval by the local HUD Field Office

during the course of its review, and the corresponding budget

authority.

HUD Headquarters will fund all applications from PHAs that are

recommended for funding by the local HUD Field Offices unless HUD

receives approvable applications for more funds than are available. If

HUD receives approvable applications for more funds than are available,

HUD will select applicants to be funded by lottery. All PHAs identified

by the local HUD Field Offices as having submitted technically adequate

and responsive applications will be included in the lottery. As PHAs

[[Page 24054]]

are selected, the cost of funding the applications will be subtracted

from the funds available. In order to achieve geographic diversity, HUD

Headquarters will limit the number of applications selected for funding

from any State to 10 percent of the budget authority available for the

general use Mainstream Program. However, if establishing this

geographic limit would result in unreserved budget authority, HUD may

modify this limit to assure that all available funds are used.

Applications will be funded for the total number of units requested

by the PHA and approved by the local HUD Field Office (not to exceed

100 units) in accordance with this NOFA. However, when remaining budget

authority is insufficient to fund the last selected PHA application in

full, HUD Headquarters will fund that application to the extent of the

funding available, unless the PHA's application indicates it will only

accept a higher number of units. In that event, the next selected

application shall be one that has indicated a willingness to accept the

lesser amount of funding for units available.

PHAs with approvable applications that are not funded, in whole or

in part, due to insufficient funds available under this NOFA for the

Mainstream Program, shall be considered first for funding in FY 1999

provided that HUD receives additional appropriations for the Mainstream

Program for FY 1999.

IV. Application Submission Requirements for Mainstream Program

(A) Form HUD-52515

All PHAs must complete and submit form HUD-52515, Funding

Application, for the Section 8 rental voucher and certificate program

(dated January 1996). This form includes all necessary certifications

for Fair Housing, Drug Free Workplace and Lobbying Activities;

therefore, PHAs can complete and sign the form HUD-52515 to provide

these required certifications. An application must include the

information in Section (C), Average Monthly Adjusted Income, of form

HUD-52515 in order for HUD to calculate the amount of Section 8 budget

authority necessary to fund the requested number of units. Copies of

form HUD-52515 may be obtained from the local HUD Field Office or may

be downloaded from the HUD Home Page site on the Internet's world wide

web (http://www.hud.gov).

(B) Local Government Comments

Section 213 of the Housing and Community Development Act of 1974

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

is a need for the housing assistance requested in applications and

solicit and consider comments relevant to this determination from the

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

local HUD Field Office will obtain section 213 comments from the unit

of general local government in accordance with 24 CFR part 791, subpart

C, Applications for Housing Assistance in Areas Without Housing

Assistance Plans. Comments submitted by the unit of general local

government must be considered before an application can be approved.

For purposes of expediting the application process, the PHA needs

to encourage the chief executive officer of the unit of general local

government to submit a letter with the PHA application commenting on

the PHA application in accordance with section 213. Because HUD cannot

approve an application until the 30-day comment period is closed, the

section 213 letter needs to not only comment on the application, but

also state that HUD may consider the letter to be the final comments

and that no additional comments will be forthcoming from the unit of

general local government.

(C) Letter of Intent and Narrative

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

submitted to the local HUD Field Office. The PHA must state in its

cover letter to the application whether it will accept a reduction in

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

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

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

than the number of rental vouchers or certificates requested. The

maximum number of rental vouchers or certificates that a PHA may apply

for under this NOFA is limited to 100, or 200 in the case of a State or

regional (multicounty) PHA.

(D) Description of Need for Mainstream Program Rental Assistance

The application must demonstrate a need for Mainstream Program

rental vouchers or certificates by providing information documenting

that the demand for housing for persons with disabilities would equal

or exceed the requested number of rental vouchers or certificates (not

to exceed a maximum of 100). The PHA must assess and document the

housing need for persons with disabilities using a range of sources

including, but not limited to: census data, information from the PHA's

waiting list (both public housing and Section 8), statistics on recent

public housing admissions and rental certificate and voucher use, data

from local advocacy groups and local public and private service

agencies familiar with the housing needs of persons with disabilities,

and pertinent information from the Consolidated Plan applicable to the

PHA's jurisdiction. (See 24 CFR 91.205(d).) The PHA's demonstrated need

for rental vouchers or certificates for disabled families must clearly

support need on the basis of the types of disabled families (elderly

and non-elderly disabled families versus exclusively non-elderly

disabled families). This distinction is important, as any FY 1998

Mainstream Program funding that may be available beyond the

approximately $48.5 million available under this NOFA, must be used to

assist only non-elderly disabled families. (See the SUMMARY section at

the beginning of this NOFA regarding the possibility of substantially

more Mainstream Program funding beyond the approximately $48.5 million

initially announced as available under this NOFA.)

(E) Mainstream Program Operating Plan

The application must include a description of an adequate plan for

operating a program to serve eligible persons with disabilities,

including:

(1) A description of how the PHA will carry out its

responsibilities under 24 CFR 8.28 to assist recipients in locating

units with needed accessibility features; and

(2) A description of how the PHA will identify private or public

funding sources to help participants cover the costs of modifications

that need to be made to their units as reasonable accommodations to

their disabilities.

V. Corrections to Deficient Mainstream Program Applications

(A) Acceptable Applications

To be eligible for processing, an application must be received by

the local HUD Field Office no later than the date and time specified in

this NOFA. The local HUD Field Office will initially screen all

applications and notify PHAs of technical deficiencies by letter.

If an application has technical deficiencies, the PHA will have 14

calendar days from the date of the issuance of the HUD notification

letter to submit the missing or corrected information to the local HUD

Field Office before the application can be considered for further

processing by HUD. Curable technical deficiencies relate only to items

that do not improve

[[Page 24055]]

the substantive quality of the application.

All PHAs must submit corrections within 14 calendar days from the

date of the HUD letter notifying the applicant of any such deficiency.

Information received by the local HUD Field Office after 3 p.m. eastern

standard time on the 14th calendar day of the correction period will

not be accepted and the application will be rejected as incomplete.

(B) Unacceptable Applications

(1) After the 14-calendar day technical deficiency correction

period, the local HUD Field Office will disapprove all PHA applications

that it determines are not acceptable for processing. The local Hud

Field Office's notification of rejection letter must state the basis

for the decision.

(2) Applications from PHAs that fall into any of the following

categories will not be processed:

(a) Applications from PHAs that do not meet the requirements of

Section II(A)(1) of this NOFA, Compliance With Fair Housing and Civil

Rights Laws.

(b) The PHA has serious unaddressed, outstanding Inspector General

audit findings or HUD management review findings for its rental voucher

or rental certificate programs; or the PHA has serious underutilization

of rental vouchers or certificates not attributable to the 3-month

statutory delay for the reissuance of rental vouchers and certificates.

The only exception to this category is if the PHA has been identified

under the policy established in Section I.(D) of this NOFA and the PHA

makes application with a designated contract administrator.

(c) The PHA is involved in litigation and HUD determines that the

litigation may seriously impede the ability of the PHA to administer

the rental vouchers or certificates.

(d) A PHA's application that does not comply with the requirements

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

day technical deficiency correction period will be rejected from

processing.

(e) The PHA's application was submitted after the application due

date.

VI. Findings and Certifications

(A) Paperwork Reduction Act Statement

The Section 8 information collection requirements contained in this

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

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

3520), and assigned OMB control number 2577-0169. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless the collection displays a valid

control number.

(B) Environmental Impact

In accordance with 24 CFR 50.19(b)(11) of the HUD regulations,

tenant-based activities assisted under this program are categorically

excluded from the requirements of the National Environmental Policy Act

and are not subject to environmental review under the related laws and

authorities. In accordance with 24 CFR 50.19(c)(5), the approval for

issuance of this NOFA is categorically excluded from environmental

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

4321).

(C) Catalog of Federal Domestic Assistance Numbers

The Federal Domestic Assistance numbers for this program are:

14.855 and 14.857.

(D) Federalism Impact

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

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

contained in this NOFA will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

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

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

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

funding notice and does not substantially alter the established roles

of HUD, the States, and local governments, including PHAs.

(E) Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (HUD Reform Act) and the regulations 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. HUD will comply with the documentation,

public access, and disclosure requirements of section 102 with regard

to the assistance awarded under this NOFA, as follows:

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

that documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

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

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

for a 5-year period beginning not less than 30 days after the award of

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

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

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

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis.

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

all applicant disclosure reports (HUD Form 2880) submitted in

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

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

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

and updates--will be made available in accordance with the Freedom of

Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24

CFR part 15.

(F) Section 103 HUD Reform Act

HUD will comply with section 103 of the Department of Housing and

Urban Development Reform Act of 1989 and HUD's implementing regulations

in subpart B of 24 CFR part 4 with regard to the funding competition

announced today. These requirements continue to apply until the

announcement of the selection of successful applicants. HUD employees

involved in the review of applications and in the making of funding

decisions are limited by section 103 from providing advance information

to any person (other than an authorized employee of HUD) concerning

funding decisions, or from otherwise giving any applicant an unfair

competitive advantage. Persons who apply for assistance in this

competition should confine their inquiries to the subject areas

permitted under section 103 and subpart B of 24 CFR part 4.

Applicants or employees who have ethics related questions should

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

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

such as whether particular subject matter can be discussed with persons

outside HUD, the employee should contact the appropriate Field Office

Counsel.

[[Page 24056]]

(G) Prohibition Against Lobbying Activities

Applicants for funding under this NOFA are subject to the

provisions of section 319 of the Department of Interior and Related

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

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

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

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

part 87, prohibits applicants for Federal contracts and grants from

using appropriated funds to attempt to influence Federal executive or

legislative officers or employees in connection with obtaining such

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

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

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

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

payments and, if any payments or agreement to make payments of

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

disclosing such payments must be submitted. The certification and the

SF-LLL are included in the application package.

The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved

December 19, 1995), which repealed section 112 of the HUD Reform Act,

requires all persons and entities who lobby covered executive or

legislative branch officials to register with the Secretary of the

Senate and the Clerk of the House of Representatives and file reports

concerning their lobbying activities.

Dated: April 24, 1998.

Deborah Vincent,

General Deputy Assistant Secretary for Public and Indian Housing.

[FR Doc. 98-11406 Filed 4-29-98; 8:45 am]

BILLING CODE 4210-33-P