Community Development Block Grant Program for Indian Tribes and Alaska Native Villages Fiscal Year 1998 Notice of Funding Availability

Federal RegisterJun 1, 1998

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SUMMARY: This notice announces the availability of $67,003,105 for the

Community Development Block Grant Program for Indian Tribes and Alaska

Native Villages (ICDBG Program). The primary objective of this program

is the development of viable Indian and Alaska Native communities,

including decent housing, a suitable living environment, and economic

opportunities, principally for persons of low and moderate income. In

the body of this Notice of Funding Availability (NOFA) is information

concerning the following: (a) The purpose of the NOFA and information

regarding eligibility and available amounts; (b) A list of steps

involved and a checklist of the exhibits required in the application

process, including where and how to apply and what to submit; and (c) A

description of application processing, including the selection process

and the selection criteria.

Application Due Date

Completed applications must be submitted no later than 6 pm, local

time, on September 1, 1998 to the addresses shown below. See below for

specific procedures governing the form of application submissions

(e.g., mailed applications, express mail, overnight delivery, or hand

carried).

Mailed Applications

Applications will be considered timely filed if postmarked on or

before 12 midnight on the application due date and received by the

appropriate Area ONAP on or within ten (10) days of the application due

date.

Applications Sent By Overnight/Express 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

Hand carried applications to the appropriate Area ONAP 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.

Addresses for Submitting Applications

Applicants in the following geographic locations should submit

their applications to the identified Area ONAP:

All States East of the Mississippi River, Plus Iowa and Minnesota:

Eastern/Woodlands Office of Native American Programs, Community

Development and Tribal Relations (CD & TR) Staff, 77 West Jackson

Blvd., Chicago, IL 60604-3507; Telephone: (312) 886-4532, Ext. 2815.

Louisiana, Kansas, Oklahoma, and Texas, except West Texas: Southern

Plains Office of Native American Programs, CD & TR Staff, Suite 400,

500 W. Main Street, Oklahoma City, OK 73102-3202; Telephone: (405) 553-

7525.

Colorado, Montana, Nebraska, North Dakota, South Dakota, Utah and

Wyoming: Northern Plains Office of Native American Programs, CD & TR

Staff, First Interstate Tower North, 633 17th Street, Denver, CO 80202-

3607; Telephone: (303) 672-5457.

Arizona, California, and Nevada: Southwest Office of Native

American Programs, CD & TR Staff, Two Arizona Center, Suite 1650, 400

N. Fifth Street, Phoenix, AZ 85004-2361; Telephone: (602) 379-4197.

New Mexico and West Texas: Southwest Office of Native American

Programs, CD & TR Specialist, Albuquerque Plaza, 201 3rd Street NW,

Suite 1830, Albuquerque, NM 87102-3368; Telephone: (505) 766-1372.

Idaho, Oregon, Washington: Northwest Office of Native American

Programs, CD & TR Staff, Federal Office Building, 909 First Avenue,

Suite 200, Seattle, WA 98104-1000; Telephone: (206) 220-5271.

Alaska: Alaska Office of Native American Programs, CD & TR Staff,

949 E. 36th Avenue, Suite 401, Anchorage, AK 99508-4135; Telephone:

(907) 271-4603.

FOR FURTHER INFORMATION, APPLICATION KITS, AND TECHNICAL ASSISTANCE

CONTACT:

For Further Information. General program questions may be directed

to the Area ONAP serving your area or to Robert Barth, Office of Native

American Programs, Office of Public and Indian Housing, Department of

Housing and Urban Development, P.O. Box 36003, 450 Golden Gate Ave.,

San Francisco, CA 94102; telephone (415) 436-8122. The TTY number is

(415) 436-6594. (These are not toll-free numbers.)

For Application Kits. Application kits may be obtained from the

Area ONAPs identified above. 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.

For Technical Assistance. Prior to the application deadline, staff

will be available to provide general guidance, but not guidance in

actually preparing the application. If applicable, following selection,

but prior to award, HUD staff will be available to assist in clarifying

or confirming information that is required to address a pre-award

requirement or condition.

SUPPLEMENTARY INFORMATION:

Changes From FY 1997 NOFA

1. Due Date for Application Submission. The Area ONAP will take

into consideration circumstances beyond an applicant's control when

determining if the due date has been met by applicants which choose to

submit applications via the mail or an overnight delivery service. If

mailed, an application will be determined to have met the submission

timing requirements if it was postmarked by 6 p.m. on September 1, 1998

and received in the Area ONAP within ten days of that date. If sent via

an overnight delivery service, an application will be determined to

have met the submission timing requirements if the applicant provides

documentation that it was placed in transit with such a service by no

later than 6 p.m. on September 1, 1998 and received by the Area ONAP

within five days of that date.

2. Grant Ceilings. Grant ceilings have been changed for applicants

in the following Area ONAP jurisdictions.

Eastern/Woodlands--The ceiling for all applicants has been raised

from $300,000 to $400,000.

Southwest--The ceiling for the applicants with the smallest

populations (0-1,500) has been raised from $450,000 to $550,000. In

addition, the total number of applicant population categories has been

reduced from nine to six.

Northwest--The ceiling for all applicants has been raised from

$320,000 to $335,000.

3. Proposed Biennial Funding for Applicants in the Jurisdiction of

the Alaska Area ONAP. A single application process under the provisions

and requirements set forth in this NOFA is proposed to be used for

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both the FY 1998 and the FY 1999 funding allocations to the Alaska Area

ONAP. The basis for this proposal and the procedures which would be

followed if it is implemented are set forth in section I(C) of this

NOFA.

4. Application Requirements--Certificate Regarding Lobbying. The

need to include a certificate regarding lobbying and a SF-LLL (if

applicable) has been explicitly referenced as an application component.

In FY 1997, these requirements were stated in section XII., Findings

and Certifications, but were not specifically mentioned in section IV.,

Application Process and Submission Requirements.

5. Number of Copies of an Application to be Submitted. In FY 1997,

the requirement that an applicant submit one originally signed and two

copies of an application was stated in the application kit but not the

NOFA. This year this requirement is stated in the NOFA as well as the

kit.

6. Documentation Required for Point Award for Leveraged Resources.

It has been made explicit that neither the contribution of indirect

administrative costs nor resources to pay for the costs of operation

and maintenance of a proposed project will be considered leveraged

resources for purpose of point award.

7. Corrections to Technically Deficient Applications and Provision

of Supplemental Information. The processes to be used by the Area ONAPs

to allow applicants to provide corrections to deficient applications

and to request supplemental or additional information from an applicant

have been more fully detailed and explained. However, the circumstances

or situations under which these processes will be used have not been

changed: the definition of a correctable technical deficiency remains

the same as does the provision that nothing submitted by an applicant

after the deadline date can enhance the rating of a project.

8. Applicant Specific Thresholds. (i) Community Development. The

benchmarks and process to be used to assess whether or not an applicant

is making satisfactory progress in completing previously approved ICDBG

projects have been clarified. This has been done by establishing a

specific link between compliance with an approved project

implementation schedule and performance.

(ii) Housing Assistance. The process and procedures to be used to

assess applicant performance in the provision of housing assistance to

low and moderate income tribal members have been modified to reflect

the requirements and characteristics of assistance provided under the

Native American Housing and Self Determination Act of 1996 (25 U.S.C.

4101, et seq.) also known as NAHASDA.

9. New Threshold for Housing Category Projects. A new threshold

requirement for housing category projects has been established. This

threshold will require an applicant to provide an assurance that the

project proposed is consistent with, and to the extent possible,

identified in, the Indian Housing Plan (IHP) submitted by or on behalf

of the applicant under the provisions of NAHASDA. If the IHP has not

been submitted, the applicant shall provide an assurance that if an IHP

is submitted, it will specifically reference the proposed project.

10. Housing Rehabilitation Grant Limits. The grant limits set forth

for applicants in the following Area ONAP jurisdictions have been

changed.

------------------------------------------------------------------------

FY 1998 FY 1997

------------------------------------------------------------------------

Eastern/Woodlands..................... $20,000 $15,000.

Southern Plains....................... $15,000 $20,000.

Southwest............................. $40,000 $35,000.

Alaska................................ $50,000 Lesser of $45/sq.ft.

$35,000.

------------------------------------------------------------------------

11. Housing Rehabilitation Projects--Adopted Rehabilitation

Standards. The selection criterion regarding adopted housing

rehabilitation standards has been increased in maximum value from 5 to

10 points. The additional 5 points would be awarded to projects if the

applicant's adopted and submitted standards include specific

requirements which address child safety measures. This revision

reflects the Healthy Homes initiative being implemented by HUD.

12. Housing Rehabilitation Projects--Priority to Neediest

Households. The selection criterion regarding the proposed provision of

assistance by the applicant to the neediest households as defined in

the NOFA has been reduced to 5 points from 10 points.

13. Land Acquisition to Support New Housing Projects--Commitment

and Availability of Housing Resources Selection Criterion. This

selection criterion has been modified to reflect situations in which

these resources are committed under the provisions of NAHASDA.

14. Threshold for New Housing Construction. Since the Indian

Housing Block Grant Program was not in existence in FY 1997, the

threshold which addresses the availability of other resources to meet

the needs of the households to be assisted has been modified so that an

applicant must now demonstrate that an Indian Housing Block Grant would

not be available to meet the needs of these households.

15. New Housing Construction Projects--Adopted Housing Construction

Policies and Plan. The maximum possible point award under this

selection criterion has been increased from 20 to 25 points. The

additional 5 points would be awarded to projects if the applicant's

policy and plan specifically address the incorporation of child safety

measures in the housing to be constructed. This revision reflects the

Healthy Homes initiative being implemented by HUD.

16. New Housing Construction Projects--Beneficiary Identification.

The maximum point award for this selection criterion has been reduced

to 5 points from 10 points.

17. Community Facilities--Buildings--Benefits the Neediest. The

maximum points available under this criterion has been increased from

10 to 15 points and values of intermediate point awards have also been

changed to be consistent with the similar factor under Community

Facilities--Infrastructure.

18. Community Facilities--Buildings--Multi-use/multi-benefit. This

selection criterion has been eliminated and the 5 points available

under it in FY 1997 have been reassigned to the Benefits the Neediest

criterion.

19. Editorial and Formatting Revisions. In addition to the changes

discussed above, this notice makes a number of non-substantive

technical changes to the FY 1997 NOFA. These editorial and formatting

changes should make the NOFA easier to understand.

Promoting Comprehensive Approaches to Housing and Community

Development

HUD is interested in promoting and supporting comprehensive,

coordinated approaches to housing and community development. Economic

development, community development, public housing revitalization,

homeownership, assisted housing for special needs populations,

supportive services, and welfare-to-work initiatives can work better if

linked at the local level. Toward this end, as noted above, a new

threshold has been included for all housing category projects.

Specifically, applicants will be required to demonstrate that such

projects are consistent with, and where possible, are identified in,

the Indian Housing Plan (IHP) submitted on, or on behalf of, the

applicant under the provisions of the Native American Housing and Self-

Determination Act of 1996 (25 U.S.C. 4101 et seq.). If the IHP has not

been

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submitted by the ICDBG application due date, the applicant must submit

an assurance that if an IHP is submitted, it will specifically

reference the proposed housing category project.

Table of Contents

I. Authority; Purpose; Amounts Allocated; and Eligibility.

(A) Authority.

(B) Purpose.

(D) Eligible Applicants.

(E) Eligible Activities.

II. Program Requirements.

(A) Statutory and Regulatory Requirements.

(B) Nondiscrimination and Compliance with Civil Rights Laws.

(D) Debarred and Suspended Contractors.

(E) Indian Preference.

(F) Conflict of Interest.

(G) Certifications and Assurances.

(H) Economic Opportunities for Low and Very Low Income Persons.

III. Application Selection Process.

(A) Rating and Ranking.

(B) Factors for Award Used to Evaluate and Rate Applications.

IV. Application Submission Requirements and Checklist.

(A) General.

(B) Demographic data.

(D) Application Submission.

(E) Documentation requirements for point award for leveraged

resources.

V. Corrections to Deficient Applications and Supplemental

Information.

VI. Findings and Certifications.

(A) Paperwork Reduction Act Statement.

(B) Environmental Impact.

(D) Federalism, Executive Order 12612.

(E) Prohibition Against Lobbying Activities.

(F) Section 102 of the HUD Reform Act--Documentation, Access and

Disclosure.

(G) Section 103 of the HUD Reform Act--Prohibition of Advance

Disclosure of Funding Decisions.

(H) Catalog of Federal Domestic Assistance Number.

Additional Information

I. Authority; Purpose; Amounts Allocated; and Eligibility

(A) Authority. Title I, Housing and Community Development Act of

1974, as amended (42 U.S.C. 5301, et seq.); sec. 7(d) of the Department

of Housing and Urban Development Act (42 U.S.C. 3535(d)); 24 CFR part

1003.

(B) Purpose. This notice announces the availability of $67,003,105

for the ICDBG Program.

(1) General. Amendments to title I of the Housing and Community

Development Act of 1974 have required that the allocation for Indian

Tribes be awarded on a competitive basis in accordance with selection

criteria contained in a regulation promulgated by the Secretary after

notice and public comment. All grant funds awarded in accordance with

this NOFA are subject to the requirements of 24 CFR part 1003.

Applicants within an Area ONAP's geographic jurisdiction compete only

against each other for that Area ONAP's allocation of funds.

(2) Allocations. The requirements for allocating funds to Area

ONAPs responsible for program administration are found at 24 CFR

1003.101. Following these requirements, the allocations for FY 1998 are

as follows:

Eastern/Woodlands....................................... $5,103,221

Southern Plains......................................... 12,076,948

Northern Plains......................................... 10,186,349

Southwest............................................... 27,790,427

Northwest............................................... 3,891,943

Alaska.................................................. 5,454,217

---------------

Total............................................... 64,503,105

The total allocation includes $3,105 in unused funds from the

amount reserved by the Assistant Secretary in Fiscal Year 1997 for

imminent threat grants. As indicated in section I.(a)(4) below,

$2,500,000 will be retained to fund imminent threat grants.

(3) Grant Ceilings. The authority to establish grant ceilings is

found at 24 CFR 1003.100(b)(1). Grant ceilings are established for FY

1998 funding at the following levels:

----------------------------------------------------------------------------------------------------------------

Area ONAPs Population Ceiling

----------------------------------------------------------------------------------------------------------------

Eastern/Woodlands............................ ALL.............................................. $400,000

Southern Plains:............................. ALL.............................................. 750,000

Northern Plains:............................. ALL.............................................. 800,000

Southwest:................................... 50,001+.......................................... 5,000,000

10,501-50,000.................................... 2,500,000

7,501-10,500..................................... 2,000,000

6,001-7,500...................................... 1,000,000

1,501-6,000...................................... 750,000

0-1,500.......................................... 550,000

Northwest.................................... ALL.............................................. 335,000

Alaska....................................... ALL.............................................. 500,000

----------------------------------------------------------------------------------------------------------------

For the Southwest Area ONAP jurisdiction, the population used to

determine ceiling amounts is the Native American population which

resides on a reservation or rancheria.

(4) Proposed biennial funding for applicants in the jurisdiction of

the Alaska Area ONAP. This NOFA provides a single application process

for the FY 1998 funds allocated to the Alaska Area ONAP and, subject to

appropriation for FY 1999, that may be allocated to the Alaska Area

ONAP in FY 1999.

The jurisdiction of the Alaska Area ONAP includes the largest

number of potentially eligible applicants. Given the fact that the vast

majority of these entities have small population bases, however, the

total amount allocated to the Alaska Area ONAP under the requirements

of Sec. 1003.101 is the third smallest amount allocated to any of the

Area ONAPs. In recent years, given the relationship between potentially

eligible applicants and the funds available and the very competitive

nature of the program, fewer than one in four of the applications

submitted have been funded in the annual competition. A score in excess

of 90 (out of a potential 100 points) has typically been required for

any project to be successful. Many applicants have expended

considerable amounts of time and resources year after year in an

unsuccessful pursuit of funding and many worthy projects are returned

unfunded each year. It is the opinion of HUD that having one process

would reduce the administrative burden to the applicants of preparing

and submitting applications repeatedly and would potentially provide

that more applicants which have not been funded in the past could be

funded.

Under this process, if implemented, applicants would prepare and

submit applications under the provisions and requirements of the NOFA.

All applications would be screened, reviewed, and rated under the

[[Page 29837]]

provisions and requirements of the NOFA. After rating is completed and

a ranked list of projects developed, grant awards would be made using

FY 1998 allocated funds until these funds are exhausted. Applications

not funded would be retained by the Alaska Area ONAP.

Subject to appropriations, any FY 1999 funds allocated to the

Alaska Area ONAP are expected to be used for grant offers to those

applicants with the highest ranking retained applications until these

funds are exhausted. In FY 1998, HUD will only announce those ICDBG

grant offers made in FY 1998. FY 1999 ICDBG program grant offers will

not be made or announced until the enactment of FY 1999 appropriations.

The FY 1999 grant offers would also be contingent upon the applicant

confirming in writing and providing such supporting documentation as is

required to the Alaska Area ONAP within 30 days of the offer that:

(a) The applicant continues to meet performance threshold

requirements;

(b) The project still meets all community development

appropriateness and project specific threshold requirements; and

application which would affect the rating or viability of the project.

Potential applicants and other interested parties are encouraged to

submit their comments on this proposal directly to the Alaska Area ONAP

at the address identified in this NOFA. To be considered, these

comments must be received July 2, 1998. A final determination on this

proposal will be made within 35 calendar days of this NOFA. If, based

on an evaluation of the comments received, it is determined to

implement the proposal, an amendment to this NOFA will be published.

The proposed biennial funding process is one method of responding to

the unique situation existing in the Alaska Area ONAP. HUD may, in the

future, propose other methods for addressing these distinctive Alaskan

issues. HUD intends to award FY 2000 funds through the issuance of a

separate competitive funding notice.

(5) Imminent Threats. (a) The criteria for grants to alleviate or

remove imminent threats to health or safety that require an immediate

solution are described at 24 CFR part 1003, subpart E. Please note that

the problem to be addressed must be such that an emergency situation

exists or would exist if it were not addressed. In addition, funds

provided under the provisions of that subpart may only be used to

address imminent threats which are not of a recurring nature and which

represent a unique and unusual circumstance that impact an entire

service area. In accordance with the provisions of 24 CFR part 1003,

subpart E, $2,500,000 will be retained to meet the funding needs of

imminent threat applications submitted to any of the Area ONAPs. The

grant ceiling for imminent threat applications for FY 1998 is $350,000.

This ceiling is established pursuant to the provisions of

Sec. 1003.400(c).

(b) Requests for assistance under the imminent threat set-aside (24

CFR part 1003, subpart E) do not have to be submitted by the deadline

established in this NOFA; the deadline applies to applications

submitted for assistance under 24 CFR part 1003, subpart D, Single

purpose grants.

issues a letter to proceed under the authority of Sec. 1003.401(a), an

application must be submitted to and approved by the Area ONAP before a

grant agreement may be executed. This application must consist of the

following components:

(i) Standard Form 424, Application for Federal Assistance;

(ii) Brief description of the proposed project;

(iii) Form HUD-4123, Cost Summary;

(iv) Form HUD-4125, Implementation Schedule;

(v) Form HUD-2880, Applicant/Recipient Disclosure/Update Report;

(vi) Form HUD-4126, Certifications;

(vii) Drug-free workplace certification (24 CFR part 24, subpart

F); and

(viii) Certification regarding lobbying activities (24 CFR part 87)

and SF-LLL (if applicable).

(D) Eligible Applicants.--(1) General. To apply for funding in a

given fiscal year, an applicant must be eligible as an Indian Tribe or

Alaska Native Village (or as a tribal organization) by the application

submission date.

(2) Tribal Organizations. Tribal organizations are permitted to

submit applications under 24 CFR 1003.5(b) on behalf of eligible tribes

or villages when one or more eligible tribe(s) or village(s) authorize

the organization to do so under concurring resolutions. As is stated in

this regulatory section, the tribal organization must itself be

eligible under title I of the Indian Self-Determination and Education

Assistance Act.

(3) Successors to Eligible Entities. If a tribe or tribal

organization claims that it is a successor to an eligible entity, the

Area ONAP must review the documentation to determine whether it is in

fact the successor entity.

(4) Alaskan Tribal Entities. (a) Due to the unique structure of

tribal entities eligible to submit ICDBG applications in Alaska, and as

only one ICDBG application may be submitted for each area within the

jurisdiction of an entity eligible under 24 CFR 1003.5, a Tribal

Organization which submits an application for activities in the

jurisdiction of one or more eligible tribes or villages must include a

concurring resolution from each such tribe or village authorizing the

submittal of the application. Each such resolution must also indicate

that the tribe or village does not itself intend to submit an ICDBG

application for that funding round. The hierarchy for funding priority

continues to be the IRA Council, the Traditional Village Council, the

Village Corporation and the Regional Corporation.

(b) On October 23, 1997 (62 FR 205), the Bureau of Indian Affairs

(BIA) published a Federal Register Notice entitled ``Indian Entities

Recognized and Eligible to Receive Services From the United States

Bureau of Indian Affairs.'' This notice provides a listing of Indian

Tribal Entities in Alaska found to be Indian Tribes as the term is

defined and used in 25 CFR part 83. Additionally, pursuant to title I

of the Indian Self Determination and Education Assistance Act, ANCSA

Village Corporations and Regional Corporations are also considered

tribes and therefore eligible applicants for the ICDBG program.

documentation requirements for entities in Alaska should be referred to

the Alaska Area ONAP prior to the deadline for submitting an

application. (See 24 CFR 1003.5 for a complete description of eligible

applicants.)

Please note: when used in this NOFA the word ``tribe'' means an

Indian Tribe, band, group or nation, including Alaska Indians, Aleuts,

Eskimos, Alaska Native Villages, ANCSA Village Corporations and

Regional Corporations.

(E) Eligible Activities. Activities that are eligible for ICDBG

funds are identified at 24 CFR part 1003, subpart C.

II. Program Requirements

(A) Statutory and Regulatory Requirements. All applicants must meet

and comply with all statutory and regulatory requirements. Applicable

program specific statutory requirements for this program are found in

title I of the Housing and Community Development Act of 1974, as

amended (42 U.S.C. 5301 et seq.). Applicable program specific

regulatory

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requirements are found at 24 CFR part 1003. Copies of the regulations

are available from HUD Community Connections Information Clearinghouse.

(B) Nondiscrimination and Compliance with Civil Rights Laws. Under

the authority of section 107(e)(2) of the Housing and Community

Development Act of 1974, as amended, the Secretary has waived the

requirement that recipients comply with the antidiscrimination

provisions in section 109 of the Act with respect to race, color and

national origin. Recipients must comply with the other prohibitions

against discrimination found in Section 109; the Indian Civil Rights

Act (Title II of the Civil Rights Act of 1968, 24 U.S.C. 1001-1303);

the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107); and, Section

504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). Recipients must

comply with the substantial rehabilitation and new construction

requirements, in addition to the other requirements of 24 CFR part 8.

relocation or displacement of persons, the requirements of the Uniform

Relocation Assistance and Real Property Acquisition Policies Act of

1970 and the government-wide implementing regulations at 49 CFR part 24

apply to funding under this NOFA.

(D) Debarred or Suspended Contractors. The provisions of 24 CFR

part 24 apply to the employment, engagement of services, awarding of

contracts, subgrants, or funding of any recipients, or contractors or

subcontractors, during any period of debarment, suspension, or

placement in ineligibility status.

(E) Indian Preference. HUD has determined that programs funded

under this NOFA are subject to section 7 (b) of the Indian Self-

Determination and Education Assistance Act (25 U.S.C. 450b). The

provisions and requirements for implementing this section are set forth

in 24 CFR 1003.510.

(F) Conflict of Interest. In addition to the conflict of interest

requirements with respect to procurement transactions found in 24 CFR

85.36 and 84.42, as applicable, the provisions of 24 CFR 1003.606 apply

to such activities as the provision of assistance by the recipient or

by its subrecipients to businesses, individuals, and other private

entities under eligible activities which authorize such assistance.

(G) Certifications and Assurances. The specific certifications and

assurances which must be provided by an applicant are included under

section IV. of this NOFA,

(H) Economic Opportunities for Low and Very Low Income Persons.

Recipients must comply with section 3 of the Housing and Urban

Development Act of 1968 (12 U.S.C. 1701u) (Employment Opportunities for

Lower Income Persons in Connection with Assisted Projects) and its

implementing regulations at 24 CFR part 135. Recipients must ensure

that training, employment and other economic opportunities are

directed, to the greatest extent feasible, toward low and very low

income persons, particularly those who are recipients of government

assistance for housing and to business concerns that provide economic

opportunities to low and very low income persons. Recipients must

comply with the reporting and recordkeeping requirements found at 24

CFR part 135, subpart E. Tribes that receive HUD assistance described

in this part shall comply with the procedures and requirements of this

part to the maximum extent consistent with, but not in derogation of,

compliance with section 7(b) of the Indian Self-Determination and

Education Assistance Act (25 U.S.C. 450e(b).

III. Application Selection Process

(A) Rating and Ranking

(1) Screening for Acceptance. Each Area ONAP will screen

applications for single purpose grants. Applications failing this

screening shall be rejected and returned to the applicants unrated.

Area ONAPs will accept applications if all the criteria listed below as

items (a) through (f) are met:

(a) The application is received or submitted in accordance with the

requirements set forth under APPLICATION DUE DATE in this NOFA;

(b) The applicant is eligible;

ICDBG funds are subject to the requirements of section 504 of the

Rehabilitation Act of 1973 and HUD's implementing regulations at 24 CFR

part 8;

(d) The application contains substantially all the components

specified in section IV.(D) of this notice;

(e) At least 70% of the grant funds are to be used for activities

that benefit low and moderate income persons, in accordance with the

requirements of Sec. 1003.208; and

(f) The application is for an amount which does not exceed the

grant ceilings that are established by the NOFA.

(2) Application Review Process.

Threshold review. The Area ONAP will review each application that

passes the screening process to ensure that each applicant and each

proposed project meets the applicable threshold requirements set forth

in 24 CFR 1003.301(a) and 1003.302, as implemented by this NOFA. If an

applicant fails to meet any of the applicant-specific thresholds, its

application cannot be accepted for rating and ranking. Project(s) that

do not meet the community development appropriateness or applicable

project-specific thresholds will not be considered for funding.

(b) Rating Team. All projects that meet the acceptance criteria and

threshold requirements will be reviewed and rated by an Area ONAP

rating team of at least three voting members. The Area ONAP rating team

will examine each project to determine in which one of the rating

categories set forth in 24 CFR 1003.303(a) the project most

appropriately belongs. The project will be rated on the basis of the

criteria identified in the rating category component to which the

project has been assigned. The total points for a rating component are

100, which is the maximum any project can receive.

public services activities, applicants may not receive single purpose

grants solely to fund public services activities. However, any

application may contain a public services component for up to 15

percent of the total grant. This component may be unrelated to the

other project(s) included in the application. If an application does

not receive full funding, the public services allocation will be

proportionately reduced to comprise no more than 15 percent of the

total grant award.

(d) Final ranking. (i) All projects will be ranked against each

other according to the point totals they receive, regardless of the

rating category or component under which the points were awarded.

Projects will be selected for funding based on this final ranking, to

the extent that funds are available. Individual grant amounts will be

determined in a manner consistent with the considerations set forth in

24 CFR 1003.100(b)(2). Specifically, an Area ONAP may approve a grant

amount less than the amount requested. In doing so, the Area ONAP may

take into account the size of the applicant, the level of demand, the

scale of the activity proposed relative to need and operational

capacity, the number of persons to be served, the amount of funds

required to achieve project objectives, and the administrative capacity

of the applicant to complete the activities in a timely manner.

(ii) If the Area ONAP determines that an insufficient amount of

money is

[[Page 29839]]

available to adequately fund a project, it may decline to fund that

project and fund the next highest ranking project or projects for which

adequate funds are available. The Area ONAP may select, in rank order,

additional projects for funding if one of the higher ranking projects

is not funded, or if additional funds become available.

(e) Tiebreakers. When rating results in a tie among projects and

insufficient resources remain to fund all tied projects, Area ONAPs

shall approve projects that can be fully funded over those that cannot

be fully funded. When that does not resolve the tie, the following

factors will be used in the order listed to resolve the tie:

(i) Eastern/Woodlands Office.

(1) The applicant with the fewest active grants.

(2) The applicant that has not received an ICDBG grant over the

longest period of time.

(3) The project that would benefit the highest percentage of low

and moderate income persons.

(ii) Southern Plains Office.

(1) The applicant that has not received an ICDBG grant over the

longest period of time over the last 8 years.

(2) The applicant with the fewest active grants.

(3) The project that would benefit the highest percentage of low

and moderate income persons.

(iii) Northern Plains and Southwest Offices.

(1) The applicant that has not received an ICDBG grant over the

longest period of time.

(2) The applicant with the fewest active grants.

(3) The project that would benefit the highest percentage of low

and moderate income persons.

(iv) Northwest Office.

(1) The applicant that has not received an ICDBG grant over the

longest period of time.

(2) The applicant that has received the fewest ICDBG dollars since

the inception of the program.

(3) The project that would benefit the highest percentage of low

and moderate income persons.

(v) Alaska Office.

(1) The applicant that has not received an ICDBG grant over the

longest period of time.

(2) The project that would benefit the highest percentage of low

and moderate income persons.

(3) The project that would benefit the most low and moderate income

persons.

(f) Pre-award requirements.

(i) Successful applicants may be required to provide supporting

documentation concerning the management, maintenance, operation, or

financing of proposed projects before a grant agreement can be

executed. Applicants will normally be given no less than thirty (30)

calendar days to respond to such requirements. In the event that no

response or an insufficient response is made within the prescribed time

period, the Area ONAP may determine that the applicant has not met the

requirements and the grant offer may be withdrawn. The Area ONAPs shall

require supporting documentation in those instances where:

(1) Specific questions remain concerning the scope, magnitude,

timing, or method of implementing the project; or

(2) The applicant has not provided information verifying the

commitment of other resources required to complete, operate, or

maintain the proposed project.

(ii) New projects may not be substituted for those originally

proposed in the application.

(iii) Grant amounts allocated for applicants unable to meet pre-

award requirements will be awarded in accordance with the provisions of

this NOFA.

(3) General threshold requirements.

(a) General. Two types of general thresholds are set forth in 24

CFR 1003.301(a): those that relate to applicants, and those that

address the overall community development appropriateness of the

project(s) included in the application. Project-specific thresholds are

set forth in 24 CFR 1003.302.

(b) Applicant Thresholds. (i) General. Applicant thresholds focus

on the administrative capacity of the applicant to undertake the

proposed project, on its past performance in the ICDBG program, and on

its provision of housing assistance to low and moderate income tribal

members.

(ii) Applicant-Specific Thresholds: Capacity. The Area ONAP will

assume, absent evidence to the contrary, that the applicant possesses,

or can obtain the managerial, technical, or administrative capability

necessary to carry out the proposed project. The application should

address who will administer the project and how the applicant plans to

handle the technical aspects of executing the project. If the Area ONAP

determines, based on substantial evidence (which could include

information provided by the most recent risk analysis conducted by the

Area ONAP), that the applicant does not have or cannot obtain the

capacity to undertake the proposed project, the application will not

receive further consideration.

(iii) Applicant-Specific Thresholds: Performance--(1) Community

Development. (a) If an applicant has previously participated in the

ICDBG Program, the Area ONAP shall determine whether the applicant has

performed adequately in grant administration and management. This

determination will include an evaluation of the most recent RADAR (Risk

Analysis and Determination for Allocation of Resources) conducted by

the Area ONAP for the applicant. The applicant is presumed to be

performing adequately unless the Area ONAP makes a performance

determination to the contrary during periodic evaluations.

(b) To assess whether or not a recipient is making satisfactory

progress in completing previously approved programs, actual progress

will be measured against the most recent implementation schedule(s) for

the recipient's program(s). This assessment will be done in conjunction

with the evaluation of the RADAR and other relevant information, e.g.,

monitoring reports, which document or reflect a recipient's

performance. A recipient which is more than sixty days behind schedule

will be determined to be performing inadequately with respect to this

aspect of grant administration.

Area ONAP shall determine whether the applicant has corrected the

deficiency or is following a schedule to correct performance to which

the applicant and the Area ONAP have agreed. In cases of previously

documented deficient performance, the Area ONAP must determine that the

applicant has taken appropriate corrective action to improve its

performance prior to the application due date.

(d) The Area ONAP will inform in writing any potential applicant

which has been determined not to meet this performance threshold no

later than 30 days prior to the application due date. If the

performance threshold is not met as of the application submission

deadline, an application will not be accepted for rating and ranking.

(2) Housing assistance. (a) The applicant is presumed not to have

taken actions to impede the provision of housing assistance for low and

moderate income members of the tribe or village. Any action taken by

the applicant to prevent or obstruct the provision or operation of

assisted housing for low and moderate income persons shall be evaluated

in terms of whether it constitutes inadequate performance by

[[Page 29840]]

the applicant. If an applicant has established or joined an Indian

Housing Authority (IHA), and this IHA has obtained housing assistance

from HUD, the performance of the applicant in meeting its obligations

and responsibilities to the IHA in the development and operation of

housing units assisted under the United States Housing Act of 1937 will

be taken into consideration in evaluating its housing assistance

performance. This evaluation will include a review of the applicant's

compliance with the provisions of the documents which created its

relationship with the IHA and the requirements of the Native American

Housing and Self-Determination Act of 1996 (42 U.S.C. 4101 et seq.). In

addition, if the applicant has designated another entity (a tribally

designated housing entity (TDHE) to be the recipient of Indian Housing

Block Grant Assistance on its behalf, compliance of the applicant with

its agreement with the TDHE will also be a consideration in HUD's

evaluation.

(b) An applicant will not be held accountable for the poor

performance of its IHA (or TDHE) unless this inadequate performance is

found to be a direct result of the applicant's action or inaction.

Applicants which are members of multi-tribal IHAs or associated with

multi-tribal TDHEs will be judged only on their individual performance

and will not be held accountable for the poor performance of other

tribes that are members of the IHA or which are also associated with

the TDHE.

new housing through a Community Based Development Organization (CBDO),

the Area ONAP will consider the following in making its determination

regarding housing assistance performance:

(i) Whether the proposed units were constructed;

(ii) Whether housing assistance was provided to the beneficiaries

identified in the funded application, and if not, why not;

(iii) Whether the provisions of the applicant's housing plan and

procedures have been followed; and

(iv) Whether there were sustained complaints from tribal members

regarding provision and/or distribution of ICDBG housing assistance.

(d) The Area ONAP will inform in writing any potential applicant

which has been determined not to meet the housing assistance

performance threshold no later than 30 days prior to the application

deadline.

(iv) Audits. The thresholds described in paragraphs (3)(b)(ii) and

(3)(b)(iii) of this section III.(A) require the applicant to meet the

following performance criteria:

(1) The applicant cannot have an outstanding ICDBG obligation to

HUD or to an ICDBG program that is in arrears, or it must have agreed

to a repayment schedule. An applicant that has an outstanding ICDBG

obligation that is in arrears, or one that has not agreed to a

repayment schedule, will be disqualified from the current competition

and from subsequent competitions until the obligations are current. If

a grantee that was current at the time of application submission

becomes delinquent during the review period, the application may be

rejected.

(2) The applicant cannot have an overdue or unsatisfactory response

to an audit finding. If there is an overdue or unsatisfactory response

to an audit finding, the applicant will be disqualified from the

current and subsequent competitions until the applicant has taken final

action necessary to close the audit finding. The Area ONAP

administrator may provide exceptions to this disqualification in cases

where the applicant has made a good faith effort to clear the audit

finding. An exception may be granted when funds are due HUD or an ICDBG

program as a result of a finding only when a satisfactory arrangement

for repayment of the debt has been made and payments are current.

rank a project contained in an application that has passed the

screening tests outlined in section III.(A) of this NOFA, Area ONAPs

must determine that the proposed project meets the community

development appropriateness thresholds set forth below:

(i) Costs are reasonable. The project must be described in

sufficient detail so that the Area ONAP can determine:

(1) That costs are reasonable; and

(2) That the funds requested from the ICDBG program and all other

sources are adequate to complete the proposed activity(ies) described

in the application.

(ii) Project is Appropriate. The project is appropriate for the

intended use.

(iii) Project is Usable or Achievable. The project is usable or

achievable in a timely manner, generally within a two year period. The

timetable for project implementation and completion must be set forth

on the form HUD 4125, Implementation Schedule, included in the

application. A period of more than two years is acceptable in certain

circumstances, if it is established that such circumstances are beyond

the applicant's control.

(B) Factors for Award Used To Evaluate and Rate Applications.

The factors for rating and ranking applications and the points for

each factor are provided below. The maximum number of points for a

rating component is 100, which is the maximum any project can receive.

(1) Summary of Rating Factors and Point Awards.

------------------------------------------------------------------------

Maximum

points

------------------------------------------------------------------------

Housing

------------------------------------------------------------------------

Sec. III.(B)(3)

(i) Project Need and Design

(1) % of funds for standard rehab............................ 20

(2) Applicant's selection criteria........................... 5

(3) Housing survey........................................... 15

(ii) Planning and Implementation

(1) Rehabilitation policies

(a) Rehabilitation standards................................. 10

(b) Selection policies and procedures........................ 10

(2) Post rehab maintenance................................... 5

(3) Cost estimates........................................... 15

(4) Cost effectiveness....................................... 5

(iii) Leveraging............................................. 5

--------

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

(e) Land to Support New Housing

(i) Project Need............................................. 40

(ii) Planning and Implementation

(1) Suitability of the land.................................. 20

(2) Housing resources........................................ 10

(3) Supportive services...................................... 5

(4) Commitment of households................................. 5

(5) Land to trust status..................................... 5

(6) Infrastructure commitment................................ 10

(7) Land meets need and is reasonably priced................. 5

--------

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

(g) New Housing Construction

(i) Project Need and Design

(1) IHA member/assistance.................................... 15

(2) Housing policies and plan................................ 25

(3) Beneficiary identification............................... 5

(ii) Planning and Implementation

(1) Occupancy standards...................................... 10

(2) Site acceptability....................................... 15

(3) Energy conservation design............................... 5

(4) Housing survey........................................... 10

(5) Cost effectiveness....................................... 5

(iii) Leveraging............................................. 10

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

------------------------------------------------------------------------

Community Facilities

------------------------------------------------------------------------

Sec. III.(B)(4)

(a) Infrastructure

(i) Project Need and Design

(1) Meets an essential need.................................. 20

(2) Benefits the neediest.................................... 15

(3) Provides infrastructure/health and safety................ 25

(ii) Planning and Implementation.............................

[[Page 29841]]

(1) Maintenance and operation plan........................... 15

(2) Appropriate and effective design scale and cost.......... 15

(iii) Leveraging............................................. 10

--------

Total Points............................................... 100

(i) Project Need and Design

(1) Meets an essential need.................................. 20

(2) Benefits the neediest.................................... 15

(3) Provides building/health and safety...................... 25

(ii) Planning and Implementation

(1) Maintenance and operation plan........................... 15

(2) Appropriate and effective design scale and cost.......... 15

(iii) Leveraging............................................. 10

--------

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

------------------------------------------------------------------------

Economic Development

------------------------------------------------------------------------

Sec. III.(B)(5)

(b) Economic Development

(i) Organization............................................. 8

(ii) Project Success

(1) Market analysis.......................................... 15

(2) Management capacity...................................... 15

(3) Financial analysis....................................... 15

(iii) Leveraging............................................. 12

(iv) Jobs

(2) ICDBG cost/job........................................... 15

(3) Quality of jobs/training................................. 5

(v) Additional considerations................................ 15

--------

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

------------------------------------------------------------------------

(2) Definitions.

Adopt means to approve by formal tribal resolution.

Assure means to comply with a specific NOFA requirement. The

applicant should state its compliance or its intent to comply in its

application.

Document means to supply supporting written information and/or data

in the application which satisfies the NOFA requirement.

Leverage means resources the grantee will use in conjunction with

ICDBG funds to achieve the objectives of the project. Resources

include, but are not limited to:

(1) Tribal trust funds;

(2) Loans from individuals or organizations;

(3) State or Federal loans or guarantees;

(4) Other grants; and

(5) Noncash contributions and donated services.

(See section IV.(E) of this NOFA for documentation requirements for

point award for leveraged resources.)

Project Cost means the total cost to implement the project. Project

cost includes both ICDBG and non ICDBG funds and resources.

Section 8 standards means housing quality standards contained in 24

CFR 982.401 (Section 8 Tenant-Based Assistance: Unified Rule for

Tenant-Based Assistance Under the Section 8 Rental Certificate Program

and the Section 8 Rental Voucher Program).

Standard Housing/Standard Condition means housing which meets the

housing quality standards (HQS) adopted by the applicant.

(1) The HQS adopted by the applicant must be at least as stringent

as the Section 8 standards unless the Area ONAP approves less stringent

standards based on a determination that local conditions make the use

of Section 8 standards infeasible.

(2) Applicants may submit their request for the approval of

standards less stringent than Section 8 standards prior to the

application due date. If the request is submitted with the application,

applicants should not assume automatic approval by the Area ONAP.

(3) The adopted standards must provide for the following:

(i) That the house is safe, in a physically sound condition with

all systems performing their intended design functions;

(ii) A livable home environment;

(iii) An energy efficient building and systems which incorporate

energy conservation measures; and

(iv) Adequate space and privacy for all intended household members.

Housing

(3) Project Specific Thresholds and Rating Factors for Housing.

(a) Specific thresholds for housing category projects. (i) The

applicant shall provide an assurance that households that have been

evicted from HUD assisted housing within the past five years will not

be assisted by the proposed project except in emergency situations. The

Area ONAP Administrator will review each emergency situation proposed

by an applicant on a case-by-case basis to determine whether an

exception is warranted.

(ii) Consistency with Indian Housing Plan (IHP). The applicant

shall provide an assurance that the housing category project proposed

is consistent with, and to the extent possible, identified in, the

Indian Housing Plan (IHP) submitted by or on behalf of the applicant

under the provisions of the Native American Housing and Self-

Determination Act of 1996 (25 U.S.C. 4101 et seq.). (If the IHP has not

been submitted, the applicant shall provide an assurance that if

submitted, the IHP will specifically reference the proposed housing

category project.)

(b) Rehabilitation Thresholds and Grant Limits.--(i) Thresholds.

All applicants for housing rehabilitation grants shall adopt

rehabilitation standards and rehabilitation policies prior to

submitting an application. These standards and policies must be

submitted with the application. The applicant shall provide an

assurance that:

(1) Any house to be rehabilitated will be the permanent non-

seasonal residence of the occupants; the residents will live in the

unit at least nine months per year.

(2) Houses designated for eventual replacement will only receive

repairs essential for the health and safety of the occupants.

(3) Project funds will be used to rehabilitate HUD assisted houses

only when the tenant/homeowner's payments are current or the tenant/

homeowner is current in a repayment agreement that is subject to

approval by the Area ONAP. In emergency situations the Area ONAP

administrator may grant exceptions to this requirement on a case-by-

case basis.

(4) Houses that have received comprehensive rehabilitation

assistance from any ICDBG or other Federal grant program within the

past 8 years will not be assisted with ICDBG funds to make the same

repairs if the repairs are needed as a result of abuse or neglect.

(ii) Grant limits. Rehabilitation grant limits for each Area ONAP

jurisdiction are as follows:

(1) Eastern/Woodlands...................................... $20,000

(2) Southern Plains........................................ 15,000

(3) Northern Plains........................................ 33,500

(4) Southwest.............................................. 40,000

(5) Northwest.............................................. 25,000

(6) Alaska................................................. 50,000

(i) Rating Factor 1: Project Need and Design. (40 points)

(1) The percentage of ICDBG funds committed to bring the houses to

be assisted up to a standard condition as defined by the applicant.

Administrative, planning, and technical assistance expenditures are

excluded in computing the percentage of ICDBG funds committed to bring

the houses up to a standard condition. The percentage of ICDBG funds

not used to bring the houses up to a standard condition must be used

for emergency repairs, demolition of substandard units or another

purpose closely related to the housing rehabilitation project.

[[Page 29842]]

Percentage of ICDBG funds committed to bring houses to be assisted

up to a standard condition:

91-100%--20 points

81-90.9%--15 points

80.9 and less--0 points

(2) The applicant's selection criteria which are included in the

application give first priority to the neediest households. Neediest is

defined as households whose houses are in the greatest disrepair (but

still suitable for rehabilitation treatment) in the project area, or

very low-income households.

YES--5 points

NO--0 points

(3)(a) Documentation of project need with a housing survey of all

of the houses to be rehabilitated with ICDBG funds. This survey should

include standard housing data on each house surveyed (e.g., age, size,

type, number of rooms, number of habitable rooms, number of bedrooms/

sleeping rooms, type of heating). The survey should indicate the

deficiencies for each house. A definition of ``suitable for

rehabilitation'' must be included. At a minimum, this definition must

not include houses that need only minor repairs, or houses that need

such major repairs that rehabilitation is structurally or financially

infeasible.

(b) The application contains all the required survey data and the

required definition of ``suitable for rehabilitation.'' (15 points)

``suitable for rehabilitation'' and/or all the survey data, but does

contain sufficient data to enable the project to proceed effectively.

(10 points)

(d) The application does not contain survey data or the survey data

it does contain is not sufficient to enable the project to proceed

effectively. (0 points)

(ii) Rating Factor 2: Planning and Implementation. (55 points)

(1) Rehabilitation Policies and Procedures including:

(a) Adopted rehabilitation standards. The rehabilitation standards

adopted by the applicant will ensure that after rehabilitation the

houses assisted will be in a standard condition as defined in this

NOFA. In addition, these standards include specific requirements which

address child safety measures to be incorporated in all appropriate

rehabilitation work. Such measures may include, but are not limited to,

child safety latches on cabinets, hot water protection devices, and

window guards to prevent children from falling.

The standards adopted by the applicant will ensure that after

rehabilitation the houses assisted will be in a standard condition as

defined in this NOFA and that, where applicable, a safer living

environment for children has been created. (10 points)

The standards adopted by the applicant will ensure that after

rehabilitation the houses assisted will be in a standard condition as

defined in this NOFA but they do not address applicable specific child

safety measures. (5 points)

The standards do not meet requirements for point award. (0 points)

(b) Rehabilitation selection policies and procedures. (i) The

rehabilitation selection policies and procedures contained in the

application include:

(A) Property selection standards;

(B) Cost limits;

(D) Homeowner costs and responsibilities;

(E) Procedures for selecting households to be assisted; and,

(F) Income verification procedures.

(ii) The application contains all the rehabilitation selection

policies and procedures listed above. (10 points)

(iii) The application does not contain all the rehabilitation

selection policies and procedures listed above, but contains sufficient

data to enable the project to proceed effectively or the application

contains all the rehabilitation selection policies and procedures

listed above, but in insufficient detail. (5 points)

(iv) The application does not contain the rehabilitation selection

policies and procedures listed above or if it does contain policies and

procedures, they are not sufficient to enable the project to proceed

effectively. (0 points)

policies and procedures must include a description of the following

items:

(A) The qualifications which will be required of the inspector;

(B) The inspection procedures to be used;

contractors;

(D) The manner in which the households to be assisted will be

involved in the rehabilitation process;

(E) How disputes between the households to be assisted, the

contractors and the applicant will be resolved; and, if applicable;

(i) The repayment provisions which will be required if sale of the

assisted house occurs prior to 5 years after the rehabilitation work

has been completed.

(ii) The application contains all the policies and procedures

listed above, and they will enable the project to be effectively

implemented. (10 points)

(iii) The application contains some but not all of the policies and

procedures listed above and these policies and procedures are

sufficient for the project to proceed effectively. (5 points)

(iv) The application does not contain the policies and procedures

listed above. (0 points)

(2) Post rehabilitation maintenance policies that address

counseling and training assisted households on maintenance. (a) The

policies included in the application contain a well-planned counseling

and training program. Training will be provided for assisted

households, and provision is made for households unable to do their own

maintenance (e.g., elderly and persons with disabilities).

(b) The policies include follow-up inspections after rehabilitation

is completed to ensure the house is being maintained. (5 points)

and counseling program but fail to adequately address all of the items

listed above. (3 points)

(d) The application does not contain a well-planned home

maintenance training and counseling program. (0 points)

(3) Quality of cost estimates. (a) Cost estimates have been

prepared by a qualified individual. (Qualifications of the estimator

must be included in the application). Costs of rehabilitation are

documented on a per house basis and are supported by a work write-up

for each house to be assisted. The work write-ups are based upon making

those repairs necessary to bring the houses to a standard condition in

a manner consistent with adopted construction codes and requirements.

The write-ups must be submitted with the application. If national

standards (e.g., the Uniform Building Code) have been locally adopted

as the construction codes and requirements, they must be referenced. If

locally developed and adopted codes and requirements are used, they

must be submitted. (15 points)

(b) Cost estimates have been prepared for each house to be

rehabilitated to determine the total rehabilitation cost. The cost

estimates are included in the application. Costs to rehabilitate each

house are documented by a deficiency list. (12 points)

application but the estimates are based on surveys and not on

individual house deficiency lists. (5 points)

(d) Cost estimates are not included in the application or the basis

for the cost

[[Page 29843]]

estimates included is inappropriate or not provided. (0 points)

(4) Cost effectiveness of the rehabilitation program. (a) This is a

measure of how efficiently and effectively funds will be used under the

proposed program. Applicants must demonstrate how the proposed

rehabilitation will bring the houses to be assisted to a standard

condition in an efficient and cost effective manner.

(b) Rehabilitation project is cost effective. (5 points)

(iii) Rating Factor 3: Leveraging. (5 points)

Points under this component will be awarded in a manner consistent

with the definition of ``Leverage' included in this NOFA and the

following breakdown:

------------------------------------------------------------------------

Non-ICDBG percent of project cost Points

------------------------------------------------------------------------

25 and over.................................................. 5

20-24.9...................................................... 4

15-19.9...................................................... 3

10-14.9...................................................... 2

5-9.9........................................................ 1

0-4.9........................................................ 0

------------------------------------------------------------------------

(d) Thresholds for Land to Support New Housing. (i) The application

contains information and documentation which establishes that there is

a reasonable ratio between the number of net usable acres to be

acquired and the number of low and moderate income households with

documented housing needs.

(ii) Housing assistance needs must be clearly demonstrated and

documented with either a survey that identifies the households to be

served, their size, income levels and the condition of current housing

or an IHA, or if applicable, TDHE approved waiting list. The survey or

waiting list must be submitted with the application.

(e) Rating Factors for Land to Support New Housing.

(i) Rating Factor 1: Project Need and Design. (40 Points)

Information included in the application establishes that:

(1) The applicant has no suitable land for the construction of new

housing and the necessary infrastructure and amenities for this

housing. (40 points); or

(2) The applicant has land suitable for housing construction and

needed infrastructure and amenities, but the land is officially

dedicated to another purpose. (30 points); or

(3) The applicant will be acquiring land for housing construction

and the construction of needed infrastructure and amenities for both

new and existing housing. (25 points); or

(4) The applicant will be acquiring land for the construction of

amenities for existing housing. (15 points); or

(5) The reason for the land acquisition does not meet any of the

criteria listed above. (0 points)

(ii) Planning and Implementation. (60 points)

(1) Suitability of land to be acquired. A preliminary investigation

has been conducted by a qualified entity independent of the applicant.

Based on this investigation (which must be submitted with the

application), the land appears to meet all applicable requirements:

(a) Soil conditions appear to be suitable for individual and/or

community septic systems or other acceptable methods for waste water

collection and treatment have been identified.

(b) The land has adequate:

(i) Availability of drinking water;

(ii) Access to utilities;

(iii) Vehicular access;

(iv) Drainage.

(e) The land appears to comply with environmental requirements.

Future development costs are expected to be consistent with other

subdivision development costs in the area (subdivision development

costs include the costs of the land, housing construction, water and

sewer, electrical service, roads, and drainage facilities if required).

YES--20 points

NO--0 points

(2) Commitment and availability of housing resources.

(a) The application includes evidence of a commitment and an

ability to construct at least 25 percent of the housing units to be

built on the land proposed for acquisition. This evidence consists of

one (or more) of the following.

(i) a firm or conditional commitment to construct (or to finance

the construction of) the units; or

(ii) documentation that an approvable application for the

construction of these units has been submitted to a funding source or

entity; or

(iii) documentation that these units are specifically identified in

the Indian Housing Plan submitted on or on behalf of the applicant as

an affordable housing resource with a commensurate commitment of Indian

Housing Block Grant (IHBG) resources. (10 points)

(b) The evidence required for the award of 10 points has not been

included in the application. (0 points)

(3) Availability/accessibility of supportive services and

employment opportunities. Documentation is provided in the application

to indicate that upon completion of construction of the housing to be

built on the land to be acquired, fire and police protection will be

available to the site and medical and social services, schools,

shopping, and employment opportunities will be accessible from the site

according to the community's established norms.

YES--5 points

NO--0 points

(4) Commitment that households will move into the new housing.

Documented commitment from households that they will move into the new

housing to be built on the land to be acquired is included in the

application.

YES--5 points

NO--0 points

(5) Land to trust status. (a) Land can be taken into trust or

provisions have been made for taxes and fees. There must be a written

assurance from the BIA that the land will be taken into trust or the

applicant must demonstrate the financial capability and commitment to

pay the property taxes and fees on the land for any period of time

during which it anticipates it will own the property in fee. This

commitment must be in the form of a resolution by the governing body of

the applicant which indicates that the applicant will pay or guarantee

that all taxes and fees on the land will be paid.

(b) Documentation from the BIA that land can be taken into trust or

the required governing body resolution is included in the application.

(5 points)

application or they are inadequate. (0 points)

(6) Infrastructure commitment. (a) A plan or commitment for any

infrastructure needed to support the housing to be built on the land to

be acquired has been included in the application. The plan or

commitment must address water, waste water collection and treatment,

electricity, roads, and drainage facilities necessary to support the

housing to be developed.

(b) Financial commitments for all necessary infrastructure have

been included in the application or documentation is included which

demonstrates that all necessary infrastructure is in place. (10 points)

included in the application but all financial commitments required to

implement the plan have not been submitted. (5 points)

(d) Neither a financial commitment or plan are included in the

application. (0 points)

[[Page 29844]]

(7) The extent to which the site proposed for acquisition meets the

housing needs of the applicant and is reasonably priced. The

application includes documentation which indicates that the applicant

has examined and assessed the appropriateness of alternative sites and

which demonstrates that the site proposed for acquisition best meets

the documented housing needs of tribal households. The application must

include comparable sales data which shows that the cost of the land

proposed for acquisition is reasonable.

Yes--5 points

No--0 points

(f) Thresholds for New Housing Construction. The following

thresholds and the rating factors set forth in paragraph (g) of this

section apply to new housing construction to be implemented through a

Community-Based Development Organization (CBDO) as provided for under

24 CFR 1003.204. Please note that all households to be assisted under a

new housing construction project must be of low or moderate income

status.

(i) New housing construction can only be implemented through a

Community-Based Development Organization (CBDO). Eligible CBDOs are

described in 24 CFR 1003.204(c). The applicant must provide an

assurance that it understands this requirement.

(ii) Documentation which supports the following determinations must

be included in the application:

(1) No other housing is available in the immediate reservation area

that is suitable for the households to be assisted;

(2) No other funding sources including an Indian Housing Block

Grant can meet the needs of the household(s) to be served.

(3) The house occupied by the household to be assisted is not in

standard condition and rehabilitation is not economically feasible, or

the household is currently in an overcrowded house (sharing house with

another household(s)), or the household to be assisted has no current

residence.

(iii) All applicants for new housing construction projects shall

adopt construction standards and construction policies prior to

submitting an application. Applicants must identify the building code

to be used when constructing the houses and must document that this

code has been adopted. The building code may be a tribal building code

or a nationally recognized model code. If it is a tribal code it must

regulate all of the areas and sub-areas identified in 24 CFR 200.925b,

and it must be reviewed and approved by the Area ONAP. If the code is

recognized nationally, it must be the latest edition of one of the

codes incorporated by reference in 24 CFR 200.925c.

(iv) The applicant must provide an assurance that any house to be

constructed will be the permanent non-seasonal residence of the

household to be assisted; this household must live in the house at

least nine months per year.

(g) Rating Factors for New Housing Construction.

(i) Rating Factor 1: Project Need and Design. (45 points)

(1) IHA member/assistance. (a) The application includes

documentation which establishes that the applicant was not served by an

Indian Housing Authority (IHA), or if it was a member of an umbrella

IHA, this IHA had not provided assistance to the applicant in a

substantial period of time, or the IHA which served the applicant had

not received HUD Public and Indian Housing new construction assistance

in a substantial period of time due to limited HUD appropriations. The

period of time during which the IHA serving the applicant had not

received funding for inadequate or poor performance by the applicant

does not count towards the period of time that no assistance has been

provided by HUD.

(b) No assistance from IHA for 10 years or longer. (15 points)

(d) No assistance from IHA for 0-5 years, 11 months. (0 points)

(2) Adopted housing construction policies and plan. (a) The plan

must include a description of the proposed CBDO and its relationship

(or proposed relationship) to the applicant. In addition, the policies

and plan must include:

(i) A selection system that gives priority to the neediest

households. Neediest shall be defined as households whose current

residences are in the greatest disrepair, or very low-income

households, or households without permanent housing.

(ii) A system effectively addressing long-term maintenance of the

constructed houses.

(iii) Estimated costs and identification of the entity responsible

for paying utilities, fire hazard insurance and other normal

maintenance costs.

(iv) Policies governing ownership of the houses, including the

status of the land.

(v) Description of a comprehensive plan or approach being

implemented by the tribe to meet the housing needs of its members.

(vi) Policies governing disposition or conversion to non-dwelling

uses of substandard houses that will be vacated when a replacement

house is provided.

(b) The policies and plan include all of the information listed

above and, in addition, they specifically address the incorporation of

child safety measures in the housing to be constructed. Such measures

may include, but are not limited to, child safety latches on cabinets,

hot water protection devices, and window guards to prevent children

from falling. (25 points)

above but do not specifically address the incorporation of child safety

measures. (20 points)

(d) The policies and plan do not include all of the information

listed above, but do include sufficient information to allow the

project to proceed effectively or, all of the information is included,

but in insufficient detail. (10 points)

(e) The information included in the application is not sufficient

to meet the requirements for the award of 10 points. (0 points)

(3) Beneficiary identification. (a) Households to be assisted are

identified in the application and their income eligibility and

household size are documented. (5 points)

(b) Households to be assisted are not identified or, if identified,

their income eligibility and household size are not documented. (0

points)

(ii) Rating Factor 2: Planning and Implementation. (45 points)

(1) Occupancy Standards. (a) The proposed housing will be designed

and built according to adopted reasonable standards that govern the

size of the housing in relation to the size of the occupying household

(minimum and maximum number of persons allowed for the number of

sleeping rooms); the minimum and maximum square footage allowed for

major living spaces (bedrooms, living room, kitchen and dining room).

The standards must be submitted with the application.

(b) Applicant has adopted reasonable occupancy standards which are

included in the application. (10 points)

standards were not included in the application. (0 points)

(2) Site Acceptability. (a) The applicant (or the proposed

beneficiary household) has control of the land upon which the houses

will be built. The application includes documentation that all housing

sites are in trust or documentation from the BIA that the sites will be

taken into trust within one

[[Page 29845]]

year of the date of the ICDBG approval notification. If the sites are

not in trust by the date of ICDBG approval notification, documentation

that they are in trust must be provided to the Area ONAP before ICDBG

funds may be obligated for construction.

(b) A preliminary investigation of the site(s) has been conducted

by a qualified entity independent of the applicant. Based on this

investigation (which must be included in the application) the site(s)

appear to meet all applicable requirements:

Soil conditions appear to be suitable for individual or community

septic systems or other acceptable methods for waste water collection

and treatment have been identified.

(i) Each site has adequate:

(ii) Availability of drinking water;

(iii) Access to utilities;

(iv) Vehicular access;

(v) Drainage;

(vi) Each site appears to comply with environmental requirements.

YES--15 points

NO--0 points

(3) Energy Conservation Design. The application includes

documentation which demonstrates that the proposed houses have been

designed in a manner which will ensure that energy use will be no

greater than that for comparable houses in the same general geographic

area that have been constructed in accordance with applicable state

energy conservation standards for residential construction. Any special

design features, materials, or construction techniques which enhance

energy conservation must be described.

YES--5 points

NO--0 points

(4) Housing Survey. (a) The applicant has completed a survey of

housing conditions and housing needs of its tribal members. This survey

was completed within the twelve month period prior to the application

submission deadline (or if an earlier survey, it was updated during

this time period).

The survey must be submitted with the application. The following

descriptive data is included for each household surveyed:

(i) Size of the household, including age and gender of any

children.

(ii) Is the household occupying permanent housing or is it

homeless?

(iii) Annual household income.

(iv) Owner or renter.

(v) Number of habitable rooms and number of sleeping rooms.

(vi) Physical condition of the house--standard/substandard. If

substandard, is it suitable for rehabilitation? A definition of

``suitable for rehabilitation'' must be included.

(vii) Number of distinct households occupying the house/degree of

overcrowding.

(viii) If there is a need for a replacement house, what are the

housing preferences of the household, e.g. ownership or rental;

location; manufactured or stick-built.

(b) An acceptable survey was submitted. (10 points)

submitted. (0 points)

(5) Cost effectiveness of new housing construction. (a) This is a

measure of how efficiently and effectively funds will be used under the

proposed program. Applicants must demonstrate how the proposed housing

activities will be accomplished in an efficient and cost effective

manner.

(b) The applicant has demonstrated that the proposed activities are

cost effective. (5 points)

are cost effective. (0 points)

(iii) Rating Factor 3: Leveraging. (10 points)

Points under this component will be awarded in a manner consistent

with the definition of ``Leverage'' included in this NOFA and the

following breakdown:

------------------------------------------------------------------------

Non-ICDBG percent of project cost Points

------------------------------------------------------------------------

25 and over.................................................. 10

20-24.9...................................................... 8

15-19.9...................................................... 16

10-14.9...................................................... 4

5-9.9........................................................ 2

0-4.9........................................................ 0

------------------------------------------------------------------------

Community Facilities

(4) Project Specific Thresholds and Rating Factors for Community

Facilities.

(a) Rating Factors for Infrastructure.

(i) Rating Factor 1: Project Need and Design. (60 points)

(1) Meets an essential need. (a) The application includes

documentation which demonstrates that the proposed project meets an

essential community development need by fulfilling a function that is

critical to the continued existence or orderly development of the

community.

(b) The proposed project will fulfill a function which is critical

to the continued existence or orderly development of the community. (20

points)

critical to the continued existence or orderly development of the

community. (0 points)

(2) Benefits the neediest. (a) The proposed project benefits the

neediest segment of the population, as identified below. Applications

must include information which demonstrates that income data was

collected in a statistically reliable and independently verifiable

manner and that:

(b) 85 percent or more of the beneficiaries are low and moderate

income. (15 points)

moderate income. (10 points)

(d) Between 55-74.9 percent of the beneficiaries are low and

moderate income. (5 points)

(e) Less than 55 percent of the beneficiaries are low and moderate

income. (0 points)

(3) Provides infrastructure/health and safety.

(a) The application includes documentation which demonstrates that

the proposed project will provide infrastructure that does not

currently exist for the area to be served or it will eliminate or

substantially reduce a health or safety threat or problem or it will

replace existing infrastructure that no longer functions adequately to

meet current needs.

(b) The infrastructure does not exist or the existing

infrastructure no longer functions or the existing infrastructure does

not contribute to the elimination of, or causes, a verified health or

safety threat or problem. (25 points)

meet current needs or is unreliable. (20 points)

(d) The proposed project will replace or supplement existing

infrastructure which is adequate for current needs but which will not

meet acknowledged future needs. (12 points)

(e) The proposed project will replace or supplement existing

infrastructure which is adequate to meet current needs and future needs

have not been acknowledged or documented. (0 points)

(f) If the project is intended to address a health or safety threat

or problem, the applicant must provide documentation consisting of a

signed study or letter from a qualified independent authority which

verifies that:

(i) A threat to health or safety (or a health or safety problem)

exists which has caused or has the potential to cause serious illness,

injury, disease, or death; and

(ii) The threat or problem can be completely or substantially

eliminated if the proposed project is undertaken.

[[Page 29846]]

(ii) Rating Factor 2: Planning and Implementation. (30 points)

(1) A viable plan for maintenance and operation. (a) If the

applicant is to assume responsibility for maintenance and operation of

the proposed facility, the applicant must adopt a maintenance and

operation plan which addresses maintenance, repair and replacement of

items not covered by insurance, and which clearly identifies operating

responsibilities and resources. This plan and the adopting resolution

must be included in the application. The plan must identify a funding

source to ensure that the facility will be properly maintained and

operated. The resolution adopting the plan must identify the total

annual dollar amount the applicant will commit.

(b) If an entity other than the applicant commits to pay for

maintenance and operation, a letter of commitment which identifies the

responsibilities the entity will assume and which documents its

financial ability to assume these responsibilities must be included in

the application; submission of a maintenance and operation plan is not

required. Points will only be awarded if the Area ONAP is able to

determine that the entity is financially able to assume the costs of

maintenance and operation.

resolution (or letter of commitment) are included in the application.

(15 points)

(d) The plan, resolution or the commitment letter have not been

included in the application or if included they are not acceptable. (0

points)

(2) An appropriate and effective design, scale and cost. (a) The

application includes information which demonstrates that the proposed

project is the most appropriate and cost effective approach to address

the identified need. This information demonstrates that the use of

existing facilities and resources, and alternatives, including method

of implementation and cost, have been considered. If only one approach

is feasible (there are no alternatives to the proposed project), the

application must include an explanation.

(b) The required information is included in the application. (15

points)

if included, it is unacceptable. (0 points)

(iii) Rating Factor 3: Leveraging. (10 points)

Points under this component will be awarded in a manner consistent

with the definition of ``Leverage'' included in this NOFA and the

following breakdown:

------------------------------------------------------------------------

Non-ICDBG percent of project cost Points

------------------------------------------------------------------------

25 and over.................................................. 10

20-24.9...................................................... 8

15-19.9...................................................... 6

10-14.9...................................................... 4

5-9.9........................................................ 2

0-4.9........................................................ 0

------------------------------------------------------------------------

(b) Threshold for Buildings. An applicant proposing a facility

which would provide health care services funded by the Indian Health

Service (IHS) must assure that the facility meets all applicable IHS

facility requirements. It is recognized that tribes that are

contracting services from the IHS may establish other facility

standards. These tribes must assure that these standards at least

compare to nationally accepted minimum standards.

(i) Rating Factor 1: Project Need and Design. (60 points)

(1) Meets an essential need. (a) The application includes

documentation that the proposed building meets an essential community

development need by providing space so that a service or function which

is critical to the continued existence or orderly development of the

community can be provided.

(b) The proposed building will provide space for a service or

function which is essential to the continued existence or orderly

development of the community. (20 points)

function which is not critical to the continued existence or orderly

development of the community. (0 points)

(2) Benefits the neediest. The proposed project benefits the

neediest segment of the population, as identified below. Applications

must include information which demonstrates that income data was

collected in a statistically reliable and independently verifiable

manner and that:

(a) 85 percent or more of the beneficiaries are low and moderate

income. (15 points)

(b) Between 75-84.9 percent of the beneficiaries are low and

moderate income. (10 points)

moderate income. (5 points)

(d) Less than 55 percent of the beneficiaries are low and moderate

income. (0 points)

(3) Provides building/health and safety. (a) The application

includes documentation which demonstrates that the proposed building

will be used to provide services or functions which are not currently

being provided to service area beneficiaries or it will replace a

building which does not meet health or safety standards which is

currently being used to provide the service or function or it will

replace a building which is no longer able to provide the space or

amenities to meet the current need for the services or functions.

(b) The services or functions to be provided in the proposed

building do not exist for the service area population or the building

currently being used does not meet health or safety standards. (25

points)

able to provide the space or amenities for the services or functions so

that current needs cannot be entirely met. (20 points)

(d) The building to be replaced is able to provide adequate space

and current needs are being met but it cannot provide space for

acknowledged future needs. (10 points)

(e) The proposed building is not necessary since current needs and

acknowledged future needs can be met through the use of existing

facilities. (0 points)

(f) If the proposed building is intended to replace an existing

building which does not meet health or safety standards, the

application must include documentation consisting of a signed letter

from a qualified independent authority which specifically identifies

the standard or standards which are not being met by the existing

building.

(ii) Rating Factor 2: Planning and Implementation. (30 points)

(1) A viable plan for maintenance and operation. (a) If the

applicant is to assume responsibility for the maintenance and operation

of the proposed building, the applicant must adopt a maintenance and

operation plan which addresses maintenance, repair and replacement of

items not covered by insurance, and which clearly identifies operating

responsibilities and resources. This plan and the adopting resolution

must be included in the application. The plan must identify a funding

source to ensure that the building will be properly maintained and

operated. The resolution adopting the plan must identify the total

annual dollar amount the applicant will commit.

(b) If an entity other than the applicant commits to pay for

maintenance and operation, a letter of commitment which identifies the

responsibilities the entity will assume and which documents its

financial ability to meet these responsibilities must be included in

the application;

[[Page 29847]]

submission of a maintenance and operation plan is not required. Points

will only be awarded if the Area ONAP is able to determine that the

entity is financially able to assume the costs of maintenance and

operation.

resolution (or letter of commitment) are included in the application.

(15 points)

(d) The plan, resolution or the commitment letter have not been

included in the application, or if included, they are not acceptable.

(0 points)

(2) An appropriate and effective design, scale and cost. (a) The

application includes information which demonstrates that the proposed

building is the most appropriate and cost effective approach to address

the identified need(s). This information demonstrates that the use of

existing facilities and resources and alternatives, including method of

implementation and cost, have been considered. If only one approach is

feasible (there are no alternatives to the proposed building), the

application must include an explanation.

(b) The required information is included in the application. (15

points)

if included, it is unacceptable. (0 points)

(iii) Rating Factor 3: Leveraging. (10 points)

Points under this component will be awarded based on the definition

of ``Leverage'' included in this NOFA and the following breakdown:

------------------------------------------------------------------------

Non-ICDBG percent of project cost Points

------------------------------------------------------------------------

25 or more................................................... 10

20-24.9...................................................... 8

15-19.9...................................................... 6

10-14.9...................................................... 4

5-9.9........................................................ 2

0-4.9........................................................ 0

------------------------------------------------------------------------

Economic Development

(5) Project Specific Thresholds and Rating Factors for Economic

Development.

(a) Thresholds for Economic Development. (i) Economic development

assistance may be provided only when a financial analysis is provided

which shows public benefit commensurate with the assistance to the

business can reasonably be expected to result from the assisted

project.

(ii) The analysis should also establish that to the extent

practicable: Reasonable financial support will be committed from non-

Federal sources prior to disbursement of Federal funds; any grant

amount provided will not substantially reduce the amount of non-Federal

financial support for the activity; not more than a reasonable rate of

return on investment is provided to the owner; and, that grant funds

used for the project will be disbursed on a pro-rata basis with amounts

from other sources. In addition, it must be established that the

project is financially feasible and has a reasonable chance of success.

(b) Rating Factors for Economic Development.

(i) Rating Factor 1: Organization. (8 points)

(1) The application contains information and documentation which

addresses all of the following three elements (Maximum: 8 points):

(a) The applicant (or entity to be assisted) has an established

organization system for operation of a business, (e.g., adopted tribal

ordinances, articles of incorporation, Board of Directors in place,

tribal department).

(b) Formal provisions exist for separation of government functions

from business operating decisions. An operating plan has been

established and is submitted.

business experience. A staffing plan has been developed and is

submitted.

(2) The application contains all of the first element listed above,

and some of the items in the second and third elements OR, the

application contains all of the elements listed above, but in

insufficient detail. The business should be able to operate

effectively. (Moderate: 5 Points)

(3) The application does not meet the criteria for the award of

moderate points. (Unsatisfactory: 0 Points)

(ii) Rating Factor 2: Project Success. (45 points)

The project will be rated on the adequacy and quality of the

information included in the application which addresses the following

criteria: ANY PROJECT NOT RECEIVING AT LEAST MODERATE POINTS IN EACH OF

THE FOLLOWING THREE RATING FACTORS WILL NOT BE CONSIDERED FOR FUNDING.

(1) Market analysis. (a) A feasibility/market analysis, generally

not older than two years, which identifies the market and demonstrates

that the proposed activities are highly likely to capture a fair share

of the market. The analysis must be submitted with the application.

(Maximum: 15 points)

(b) A feasibility/market analysis which identifies the market and

demonstrates that the proposed activities are reasonably likely to

capture a fair share of the market. The analysis must be submitted with

the application. (Moderate: 10 points)

moderate points. (Unsatisfactory: 0 points)

(2) Management capacity. (a) A management team with qualifying

specialized training or technical/managerial experience in the

operation of a similar business has been identified. Job descriptions

of key management positions as well as resumes showing qualifying

specialized technical/managerial training or experience of the

identified management team must be submitted with the application.

(Maximum: 15 points)

(b) A management team with qualifying general business training or

experience will be hired if the grant is approved. Job descriptions of

key management positions must be submitted with the application.

(Moderate: 12 points)

points. (Unsatisfactory: 0 points)

(3) Financial Analysis of the Business. (a) The financial viability

of a project will be determined by an analysis of financial and other

project related information. For all proposed projects, the following

must be submitted:

(i) A detailed cost summary for the project;

(ii) Evidence of funding sources;

(iii) Five year operating or cash flow financial projections. If

the project involves the expansion of an existing business, financial

statements for the most recent three year period for the business must

also be submitted with the application (financial statements include

the balance sheet, income statement and statement of retained

earnings). For start-up businesses that will not be owned by the

grantee, current financial or net worth statements of principal

business owners or officers must also be submitted with the

application.

(b) The information derived from the analysis will be reviewed and

compared to local or national industry standards to assess

reasonableness of development costs, financial need, profitability, and

risk as factors in determining overall financial viability. In

determining whether a project is financially viable, the Area ONAP will

also consider current and projected market conditions and profitability

measures such as cash flow return on equity, cash flow return on total

assets and the ratio of net profit before taxes to total assets.

Sources of industry standards include Marshall and Swift Publication

Company, Robert

[[Page 29848]]

Morris Associates, Dun and Bradstreet, the Chamber of Commerce, etc.

Local standards may also be used. If one of these standards is cited by

the applicant, the appropriate data must be submitted with the

application.

(i) The project has an excellent chance of achieving financial

success. (Maximum: 15 points)

(ii) The project has an average chance of achieving financial

success. (Moderate: 8 points)

(iii) The project has a minimal prospect of achieving financial

success. (Unsatisfactory: 0 points)

(iii) Rating Factor 3: Leveraging. Points under this component will

be awarded in a manner consistent with the definition of ``Leverage''

included in this NOFA and the following breakdown:

------------------------------------------------------------------------

Non-ICDBG percent of project cost Points

------------------------------------------------------------------------

30% or more.................................................. 12

20-29.9%..................................................... 8

10-19.9%..................................................... 4

Less than 10%................................................ 0

------------------------------------------------------------------------

(iv) Rating Factor 4: Permanent Full-Time Equivalent Job Creation

and Training. (20 points). (1) The total number of permanent full-time

equivalent jobs expected to be created and/or retained as a result of

the project as well as a summary of job descriptions must be identified

or included in the application. Retained jobs will not be counted

unless clear evidence is provided that these jobs would be lost without

the project. The number and kind(s) of jobs expected to be available to

low and moderate income persons must be identified.

(2) ICDBG cost per job:

$30,000 or less............................. 15 points.

$30,001-40,000.............................. 12 points.

$40,001-45,000.............................. 8 points.

$45,001+.................................... 0 points.

(3) Quality of jobs and/or training targeted to low and moderate

income persons:

(a) The jobs offer wages and benefits comparable to area wages and

benefits for similar jobs, provide opportunity for advancement, and

teach a transferable skill; OR

(b) The employer commits to provide training opportunities. A

description of the planned training program must be submitted with the

application.

YES--5 points

NO--0 points

(v) Rating Factor 5: Additional Considerations. (15 points)

A project must meet three of the following factors to receive 15

points. (Maximum: 15 points)

(1) Use, improve or expand members' special skills. Special skills

are those that members have developed through education, training or

traditional cultural experiences.

YES--5 points

NO--0 points

(2) Provide spin-off benefits beyond the initial economic

development benefits to employees or to the community.

YES--5 points

NO--0 points

(3) Provide special opportunities for residents of federally-

assisted housing.

YES--5 points

NO--0 points

(4) Provide benefits to other businesses owned by Indians or Alaska

natives.

YES--5 points

NO--0 points

(5) Loan Repayment/Reuse of ICDBG funds. If the business is not

tribally owned, at least 50% of the ICDBG assistance to the business

will be repaid to the grantee within a 10 year period. If the business

is tribally owned, the tribe agrees (by submission of a tribal

resolution) within a 10 year period to use funds equal to 50% of the

ICDBG assistance for eligible activities that meet a national

objective. These funds should come from the profits of the tribally

owned business.

YES--5 points

NO--0 points

IV. Application Submission Requirements and Checklist

(A) General. Completed applications (one originally signed and two

copies) must be submitted to the appropriate Area ONAP listed above.

All telephone numbers listed may be accessed via TTY by calling the

Federal Information Relay Service at 1-800-877-8339. To be eligible for

consideration, applications must be received by or be submitted to the

appropriate Area ONAP in accordance with the requirements set forth

under APPLICATION DUE DATE above. An applicant shall submit only one

application. The ICDBG grant amount requested shall not total more than

the grant ceiling. An application may include an unlimited number of

eligible projects (e.g., housing or public facilities). Each project

within an application will be rated separately.

(B) Demographic data. Applicants may submit data that are

unpublished and not generally available in order to meet the

requirements of this section. The applicant must certify that:

(1) Generally available, published data are substantially

inaccurate or incomplete;

(2) Data provided have been collected systematically and are

statistically reliable;

(3) Data are, to the greatest extent feasible, independently

verifiable; and

(4) Data differentiate between reservation and BIA service area

populations, when applicable.

shall prepare and publish or post the community development statement

portion of their application according to the citizen participation

requirements of Sec. 1003.604.

(D) Application Submission. The application shall include:

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

(2) Community Development Statement which includes:

(a) Components that address the relevant selection criteria;

(b) A brief description or an updated description of community

development needs;

including scope, magnitude, and method of implementing the project;

(d) A schedule for implementing the project (form HUD-4125,

Implementation Schedule); and

(e) Cost information for each separate project, including specific

activity costs, administration, planning, and technical assistance,

total HUD share (form HUD-4123, Cost Summary);

(3) Certifications--form HUD 4126;

(4) Drug-free Workplace Certification (24 CFR part 24, subpart F);

(5) Certification regarding lobbying (24 CFR part 87) and SF-LLL

(if applicable);

(6) Applicant/Recipient Disclosure/Update Report--form HUD 2880, as

required under subpart A of 24 CFR part 4, Accountability in the

Provision of HUD Assistance;

(7) A map showing project location, if appropriate;

(8) If the proposed project will result in displacement or

temporary relocation, a statement that identifies:

(a) The number of persons (families, individuals, businesses and

nonprofit organizations) occupying the property on the date of the

submission of the application (or date of initial site control, if

later);

(b) The number to be displaced or temporarily relocated;

(d) The source of funds for relocation; and

[[Page 29849]]

(e) The organization that will carry out the relocation activities;

(9) If applicable, evidence of the disclosure required by 24 CFR

1003.606(e) regarding conflict of interest.

(E) Documentation requirements for point award for leveraged resources.

(1) General. For the applicant's own resources, a council

resolution (or legal equivalent) which identifies and commits the

resources must be included in the application. For resources to be

provided by another entity, written verification of an application or

request for the leveraged resources must be included in the

application.

(2) Resources contributed by a public agency, foundation, or other

private party. (a) In addition to the requirement described in above in

this section, for grants or other contributed resources from a public

agency, foundation, or other private party, a written commitment which

may be contingent on approval of the ICDBG award must be received by

the Area ONAP no later than 30 days after the application deadline.

This commitment must specifically identify or indicate:

(i) The dollar amount committed (or dollar value of the noncash

resource and the basis for the valuation);

(ii) That the resources are currently available or will be

available when necessary for successful project implementation; and

(iii) The project.

(b) If the nature of the funding cycle of the contributing entity

precludes the entity from making a firm funding commitment in the 30

days, such resources will be considered in the award of points if the

entity provides a written statement indicating that the application or

request for assistance has been received from the ICDBG applicant and

stating the date by which its funding determination will be made. This

date cannot be more than six months from the anticipated date of grant

approval notification by HUD.

consideration, a special condition will be established in the grant

agreement for the project. This condition will indicate that if a firm

funding commitment for the leveraged resources is not provided within

six months of the date of grant approval, the grant funds approved will

be recaptured by HUD and will be used in accordance with the

requirements of Sec. 1003.102.

(d) The statement described in paragraph (c)(2)(ii) of this section

must be received by the Area ONAP no later than 30 days after the

application deadline. If the commitment or statement is not received in

the required timeframe or if the required information is not included,

points will not be awarded for the proposed contribution.

(e) If the proposed project still rates high enough to be approved,

a pre-award condition will be established which will require the

applicant to provide evidence of firmly committed resources to cover

the entire non-ICDBG project cost. If this condition is not met, the

grant will not be awarded.

(3) Contributions of goods and services. In addition to the above

requirements for point award, special documentation must be included in

the application for certain contributions. The contribution of goods

and services will be considered for point award if the applicable

requirements listed above are met; if the items or services are

demonstrated and determined necessary to the actual development of the

project; and comparable cost and/or time estimates are submitted which

support the donation.

(4) Contributions of land. Land to be contributed will only be

considered for point award when its use and area are integral to the

development of the project. In addition, the value of the land must be

verified by any of the following means or methods and this

documentation must be included in the application:

(a) A site specific appraisal no more than two years old;

(b) An appraisal of a nearby comparable site also no more than two

years old; and

realtors value guides.

(5) Indirect costs. The contribution of indirect administrative

costs as identified in OMB Circular A-87, attachment A, section F, will

not be considered as a leveraged resource for purposes of point award.

(6) Operations and maintenance expenditures. The contribution of

resources to pay for the anticipated operations and maintenance costs

of any proposed project will not be considered leveraged resources for

purposes of point award.

V. Corrections to Deficient Applications and Supplemental Information

After the application due date, Area ONAP may not, consistent with

24 CFR part 4, subpart B, consider unsolicited information from an

applicant. The Area ONAP may contact an applicant, however, to clarify

an item in the application or to correct technical deficiencies.

Applicants should note, however, that the Area ONAP 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, the Area ONAP will notify the applicant in writing by describing

the clarification or technical deficiency. The Area ONAP 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 the Area ONAP within 14

calendar days of the date of receipt of the Area ONAP notification. If

the deficiency is not corrected within this time period, the Area ONAP

will reject the application as incomplete.

VI. Error and Appeals

Rating panel judgments made within the provisions of this NOFA and

the program regulations (24 CFR part 1003) are not subject to claims of

error. Applicants may bring arithmetic errors in the rating and ranking

of applications to the attention of an Area ONAP within 30 days of

being informed of their score. If an Area ONAP makes an arithmetic

error in the application review and rating process which, when

corrected, would result in the award of sufficient points to warrant

the funding of an otherwise approvable project, the Area ONAP may fund

that project in the next funding round without further competition.

VII. Findings and Certifications

(A) Paperwork Reduction Act Statement. The information collection

requirements contained in this Notice 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-

0191. An agency may not conduct or sponsor, and a person is not

required to respond to, a collection of information unless the

collection displays a valid control number.

(B) Environmental Impact. This NOFA provides funding under, and

does not alter environmental requirements of regulations in 24 CFR part

1003. Accordingly, under 24 CFR 50.19(c)(5), this NOFA is categorically

excluded from environmental review under the National Environmental

Policy Act of 1969 (42 U.S.C. 4321).

accordance with 24 CFR 1003.605, a

[[Page 29850]]

recipient must comply with the environmental review requirements of 24

CFR part 58, including limitations on the commitment of project funds

before submission of a request for release of funds.

(D) Federalism, Executive Order 12612. The General Counsel, as the

Designated Official under section 6(a) of Executive Order 12612,

Federalism, has determined that this NOFA will not have substantial,

direct effects on states, on their political subdivisions, or on their

relationship with the Federal Government, or on the distribution of

power and responsibilities between them and other levels of government.

While the NOFA will provide financial assistance to Indian tribes and

Alaska native villages, none of its provisions will have an effect on

the relationship between the Federal Government and the states or their

political subdivisions.

(E) 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), 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.

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

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

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

the statute's coverage.

(F) 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 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 in 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.

(G) 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 HUD's Ethics Law Division (202) 708-3815. (This is not a toll-

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

the employee should contact the appropriate Area ONAP or Headquarters

counsel.

(H) Catalog of Federal Domestic Assistance Number. The Catalog of

Federal Domestic Assistance Number for the ICDBG Program is 14.862.

Dated: May 20, 1998.

Deborah Vincent,

General Deputy Assistant Secretary for Public and Indian Housing.

[FR Doc. 98-14368 Filed 5-29-98; 8:45 am]

BILLING CODE 4210-33-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.