Notice of Funding Availability Family Unification Program Fiscal Year 1999

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4414-N-01]

Notice of Funding Availability Family Unification Program Fiscal

Year 1999

AGENCY: Office of the Assistant Secretary for Public and Indian

Housing, HUD.

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: Purpose of the Program. The purpose of the Family Unification

Program is to promote family unification by providing housing

assistance to families for whom the lack of adequate housing is a

primary factor in the separation, or the threat of imminent separation,

of children from their families.

Available Funds. The $75 million in one-year budget authority will

support approximately 11,200 Section 8 rental vouchers. A provision in

the FY 1998 Family Unification Program NOFA indicated that any

approvable 1998 applications not funded because of insufficient funds

would be funded first with any Family Unification Program

appropriations available in FY 1999. Accordingly, these unfunded FY

1998 applications were funded first in FY 1999 in the order in which

they were selected in the FY 1998 lottery for the Family Unification

Program. After funding these previously unfunded FY 1998 applications,

approximately $28.2 million to fund approximately 4,200 units will be

available in FY 1999 for new applications for the Family Unification

Program.

Eligible Applicants. Public Housing Agencies (PHAs). Indian Housing

Authorities, Indian tribes and their tribally designated housing

entities are not eligible.

Application Deadline. May 28, 1999.

Match. None.

Additional Information

If you are interested in applying for funding under the Family

Unification Program, please read the balance of this NOFA which will

provide you with detailed information regarding the submission of an

application, Section 8 program requirements, the application selection

process to be used in selecting applications for funding, and other

valuable information relative to a PHA's application submission and

participation in the Family Unification Program.

Application Due Dates and Application Submission

Delivered Applications. The application deadline for delivered

applications for the Family Unification Program NOFA is May 28, 1999,

6:00 p.m., local HUD Field Office HUB or local HUD Field Office Program

Center time.

This application deadline is firm as to date and hour. In the

interest of fairness to all competing PHAs, HUD will not consider any

application that is received after the application deadline. Applicants

should take this practice into account and make early submission of

their materials to avoid any risk of loss of eligibility brought about

by unanticipated delays or other delivery-related problems. HUD will

not accept, at any time during the NOFA competition, application

materials sent via facsimile (FAX) transmission.

Mailed Applications. Applications for the Family Unification

Program will be considered timely filed if postmarked before midnight

on the application due date and received by the local HUD Field Office

HUB or local HUD Field Office Program Center within ten (10) days of

that date.

Applications Sent By Overnight Delivery. Overnight delivery items

will be considered timely filed for the Family Unification Program if

received before or on the application due date, or upon submission of

documentary evidence that they were placed in transit with the

overnight delivery service by no later than the specified application

due date.

Official Place of Application Receipt. The original and a copy of

the application for the Family Unification Program must be submitted to

the local HUD Field Office HUB, Attention: Director, Office of Public

Housing; or to the local HUD Field Office Program Center, Attention:

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

Field Office Program Center is the official place of receipt for all

applications received in response to this NOFA. For ease of reference,

the term ``local HUD Field Office'' will be used throughout this NOFA

to mean the local HUD Field Office HUB or local HUD Field Office

Program Center.

For Application Kits, Further Information and Technical Assistance

For Application Kit. An application kit is not available and is not

necessary for submitting an application for the Family Unification

Program.

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

two options. You may contact the local HUD Field Office. You may also

contact George C. Hendrickson, Housing Program Specialist, Room 4216,

Office of Public and Assisted Housing Delivery, Department of Housing

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

telephone (202) 708-1872, ext. 4064. (This number is not a toll-free

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

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

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

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

C. Hendrickson of HUD's Headquarters staff (at the address and

telephone number indicated above) will be available to provide general

guidance and technical assistance about this NOFA. Current law does not

permit HUD staff to assist in preparing the application. Following

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

clarifying or confirming information that is a prerequisite to the

offer of an award by HUD.

I. Authority, Purpose, Amount Allocated, and Eligibility

(A) Authority

The Family Unification Program is authorized by section 8(x) of the

United States Housing Act of 1937 (42 U.S.C. 1437f(x)). The Department

of Veterans Affairs and Housing and Urban Development, and Independent

Agencies Appropriations Act, 1999 (Pub.L. 105-276, approved October 21,

1998), hereinafter referred to as the 1999 Appropriations Act) provides

funding for the Family Unification Program. Of the approximately $75

million available under this NOFA, approximately $23.4 million are

carryover amounts from the Departments of Veterans Affairs and Housing

and Urban Development, and Independent Agencies Appropriations Act,

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

(B) Purpose

The Family Unification Program is a program under which Section 8

rental assistance is provided to families for whom the lack of adequate

housing is a primary factor which would result in:

(1) The imminent placement of the family's child, or children, in

out-of-home care; or

(2) The delay in the discharge of the child, or children, to the

family from out-of-home care.

Rental vouchers awarded under the Family Unification Program are

administered by PHAs under HUD's

[[Page 10905]]

regulations for the Section 8 rental voucher program (24 CFR parts 887

and 982). In prior fiscal years HUD provided funding for rental

certificates only for the Family Unification Program. In FY 1999,

however, HUD will be providing rental vouchers only for this program.

This is due to provisions in the Quality Housing and Work

Responsibility Act of 1998 that call for the merging of the Section 8

rental voucher and certificate programs into a rental voucher program.

HUD intends to publish an interim rule in the spring of FY 1999 to

implement the new rental voucher program. Since successful applicants

for the FY 1999 Family Unification Program will not be funded until

after the implementation of the interim rule, rental vouchers are being

provided this year for the Family Unification Program in lieu of rental

certificates.

(C) Amount Allocated

This NOFA announces the availability of approximately $75 million

for the Family Unification Program which will provide assistance for

about 11,200 families. PHAs with a current Section 8 rental voucher and

certificate program of more than 500 units as shown in the most recent

HUD-approved program budget may apply for funding for a maximum of 100

units. PHAs with a current Section 8 rental voucher or certificate

program of 500 units or less as shown in the most recent HUD-approved

program budget may apply for a maximum of 50 units. PHAs not currently

administering either a Section 8 rental voucher or certificate program

may apply for a maximum of 50 units.

The amounts allocated under this NOFA were be awarded first to

those PHAs having submitted approvable applications in FY 1998 but

which were not funded due to insufficient funding. (The NOFA for FY

1998's Family Unification Program, FR-4360, provided that unfunded FY

1998 Family Unification Program applications would be funded first in

FY 1999 contingent upon available appropriations.) Approximately $46.8

million was required to fund these applications. The balance of

approximately $28.2 million in FY 1999 funding for approximately 4,200

units will be awarded under a national competition based on threshold

criteria. A national lottery will be conducted to select approvable

applications for funding if approvable applications are submitted by

PHAs in FY 1999 for more than the approximately $28.2 million available

under this NOFA for new applications.

The Family Unification Program is exempt from the fair share

allocation requirements of section 213(d) of the Housing and Community

Development Act of 1974 (42 U.S.C. 1439(d)) and the implementing

regulations at 24 CFR part 791, subpart D.

(D) Eligible Applicants

(1) Family Unification Program Eligibility. Any PHA established

pursuant to State law, including regional (multicounty) or State PHAs,

may apply for funding under this NOFA. Indian Housing Authorities,

Indian tribes and their tribally designated housing entities are not

eligible.

(2) Eligibility for HUD-Designated Housing Agencies with Major

Program Findings. Some PHAs currently administering the Section 8

rental voucher and certificate programs have, at the time of

publication of this NOFA, major program management findings from

Inspector General audits, HUD management reviews, or Independent Public

Accountant (IPA) audits that are open and unresolved or other

significant program compliance problems. HUD will not accept

applications for additional funding from these PHAs as contract

administrators if, on the application deadline date, the findings are

not closed to HUD's satisfaction. If any of these PHAs want to apply

for the Family Unification Program, the PHA must submit an application

that designates another housing agency, nonprofit agency, or contractor

that is acceptable to HUD. The PHA application must include an

agreement by the other housing agency or contractor to administer the

program for the new funding increment on behalf of the PHA and a

statement that outlines the steps the PHA is taking to resolve the

program findings. Immediately after the publication of this NOFA, the

Office of Public Housing in the local HUD Office will notify, in

writing, those PHAs that are not eligible to apply because of

outstanding management or compliance problems. The PHA may appeal the

decision if HUD has mistakenly classified the PHA as having outstanding

management or compliance problems. Any appeal must be accompanied by

conclusive evidence of HUD's error (i.e, documentation showing that the

finding has been cleared) and must be received prior to the application

deadline.

II. General Requirements and Requirements Specific To the Family

Unification Program

(A) General Requirements

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

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

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

5.105(a). If an applicant: (a) has been charged with a systemic

violation of the Fair Housing Act by the Secretary alleging ongoing

discrimination; (b) is the defendant in a Fair Housing Act lawsuit

filed by the Department of Justice alleging an ongoing pattern or

practice of discrimination; or (c) has received a letter of

noncompliance findings under Title VI of the Civil Rights Act, section

504 of the Rehabilitation Act of 1973, or section 109 of the Housing

and Community Development Act, the applicant's application will not be

evaluated under this NOFA if, prior to the application deadline, the

charge, lawsuit, or letter of findings has not been resolved to the

satisfaction of the Department. HUD's decision regarding whether a

charge, lawsuit, or a letter of findings has been satisfactorily

resolved will be based upon whether appropriate actions have been taken

necessary to address allegations of ongoing discrimination in the

policies or practices involved in the charge, lawsuit, or letter of

findings.

(2) Additional Nondiscrimination Requirements. Applicants must

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

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

civil rights requirements listed at 24 CFR 5.105, each successful

applicant must comply with the nondiscrimination in employment

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

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

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

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

et seq.).

(3) Affirmatively Furthering Fair Housing. Applicants have a duty

to affirmatively further fair housing. Applicants will be required to

identify the specific steps that they will take to: (a) address the

elimination of impediments to fair housing that were identified in the

jurisdiction's Analysis of Impediments (AI) to Fair Housing Choice; (b)

remedy discrimination in housing; or (c) promote fair housing rights

and fair housing choice.

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

submit signed copies of Assurances and Certifications. The standard

Assurances and Certifications are on Form HUD-52515, Funding

Application, which includes the Equal Opportunity Certification,

Certification Regarding Lobbying, and Certification Regarding Drug-Free

Workplace Requirements.

[[Page 10906]]

(B) Requirements Specific to the Family Unification Program

(1) Eligibility. (a) Family Unification eligible families. Each PHA

must modify its selection preference system to permit the selection of

Family Unification eligible families for the program with available

funding provided by HUD for this purpose. The term ``Family Unification

eligible family'' means a family that:

(i) The public child welfare agency has certified is a family for

whom the lack of adequate housing is a primary factor in the imminent

placement of the family's child, or children, in out-of-home care, or

in the delay of discharge of a child, or children, to the family from

out-of-home care; and

(ii) The PHA has determined is eligible for Section 8 rental

assistance.

(b) Lack of Adequate Housing. The lack of adequate housing means:

(i) A family is living in substandard or dilapidated housing; or

(ii) A family is homeless; or

(iii) A family is displaced by domestic violence; or

(iv) A family is living in an overcrowded unit.

(c) Substandard Housing. A family is living in substandard housing

if the unit where the family lives:

(i) Is dilapidated;

(ii) Does not have operable indoor plumbing;

(iii) Does not have a usable flush toilet inside the unit for the

exclusive use of a family;

(iv) Does not have a usable bathtub or shower inside the unit for

the exclusive use of a family;

(v) Does not have electricity, or has inadequate or unsafe

electrical service;

(vi) Does not have a safe or adequate source of heat;

(vii) Should, but does not, have a kitchen; or

(viii) Has been declared unfit for habitation by an agency or unit

or government.

(d) Dilapidated Housing. A family is living in a housing unit that

is dilapidated if the unit where the family lives does not provide safe

and adequate shelter, and in its present condition endangers the

health, safety, or well-being of a family, or the unit has one or more

critical defects, or a combination of intermediate defects in

sufficient number or extent to require considerable repair or

rebuilding. The defects may result from original construction, from

continued neglect or lack of repair or from serious damage to the

structure.

(e) Homeless. A homeless family includes any person or family that:

(i) Lacks a fixed, regular, and adequate nighttime residence; and

(ii) Has a primary nighttime residence that is:

--A supervised publicly or privately operated shelter designed to

provide temporary living accommodations (including welfare hotels,

congregate shelters, and transitional housing);

--An institution that provides a temporary residence for persons

intended to be institutionalized; or

--A public or private place not designed for, or ordinarily used as, a

regular sleeping accommodation for human beings.

(f) Displaced by Domestic Violence. A family is displaced by

domestic violence if:

(i) The applicant has vacated a housing unit because of domestic

violence; or

(ii) The applicant lives in a housing unit with a person who

engages in domestic violence.

(iii) ``Domestic violence'' means actual or threatened physical

violence directed against one or more members of the applicant family

by a spouse or other member of the applicant's household.

(g) Involuntarily Displaced. For a family to qualify as

involuntarily displaced because of domestic violence:

(i) The PHA must determine that the domestic violence occurred

recently or is of a continuing nature; and

(ii) The applicant must certify that the person who engaged in such

violence will not reside with the family unless the HA has given

advance written approval. If the family is admitted, the PHA may

terminate assistance to the family for breach of this certification.

(h) Living in Overcrowded Housing. A family is considered to be

living in an overcrowded unit if:

(i) The family is separated from its child (or children) and the

parent(s) are living in an otherwise standard housing unit, but, after

the family is re-united, the parents' housing unit would be overcrowded

for the entire family and would be considered substandard; or

(ii) The family is living with its child (or children) in a unit

that is overcrowded for the entire family and this overcrowded

condition may result in the imminent placement of its child (or

children) in out-of-home care.

For purpose of this paragraph (h), the PHA may determine whether

the unit is ``overcrowded'' in accordance with PHA subsidy standards.

(i) Detained Family Member. A Family Unification eligible family

may not include any person imprisoned or otherwise detained pursuant to

an Act of the Congress or a State law.

(j) Public child welfare agency (PCWA). PCWA means the public

agency that is responsible under applicable State law for determining

that a child is at imminent risk of placement in out-of-home care or

that a child in out-of-home care under the supervision of the public

agency may be returned to his or her family.

(2) PHA Responsibilities. PHAs must:

(a) Accept families certified by the PCWA as eligible for the

Family Unification Program. The PHA, upon receipt of the PCWA list of

families currently in the PCWA caseload, must compare the names with

those of families already on the PHA's Section 8 waiting list. Any

family on the PHA's Section 8 waiting list that matches with the PCWA's

list must be assisted in order of their position on the waiting list in

accordance with PHA admission policies. Any family certified by the

PCWA as eligible and not on the Section 8 waiting list must be placed

on the waiting list. If the PHA has a closed Section 8 waiting list, it

must reopen the waiting list to accept a Family Unification Program

applicant family who is not currently on the PHA's Section 8 waiting

list;

(b) Determine if any families with children on its waiting list are

living in temporary shelters or on the street and may qualify for the

Family Unification Program, and refer such applicants to the PCWA;

(c) Determine if families referred by the PCWA are eligible for

Section 8 assistance and place eligible families on the Section 8

waiting list;

(d) Amend the administrative plan in accordance with applicable

program regulations and requirements;

(e) Administer the rental assistance in accordance with applicable

program regulations and requirements; and

(f) Assure the quality of the evaluation that HUD intends to

conduct on the Family Unification Program and cooperate with and

provide requested data to the HUD office or HUD-approved contractor

responsible for program evaluation.

(3) Public Child Welfare Agency (PCWA) Responsibilities. A public

child welfare agency that has agreed to participate in the Family

Unification Program must:

(a) Establish and implement a system to identify Family Unification

eligible families within the agency's caseload and to review referrals

from the PHA;

(b) Provide written certification to the PHA that a family

qualifies as a Family Unification eligible family based upon the

criteria established in section 8(x) of the United States Housing Act

of 1937, and this notice;

[[Page 10907]]

(c) Commit sufficient staff resources to ensure that Family

Unification eligible families are identified and determined eligible in

a timely manner and to provide follow-up supportive services after the

families lease units; and

(d) Cooperate with the evaluation that HUD intends to conduct on

the Family Unification Program, and submit a certification with the

PHA's application for Family Unification funding that the PCWA will

agree to cooperate with and provide requested data to the HUD office or

HUD-approved contractor having responsibility for program evaluation.

(4) Section 8 Rental Voucher Assistance. The Family Unification

Program provides funding for rental assistance under the Section 8

rental voucher program.

PHAs must administer this program in accordance with HUD's

regulations governing the Section 8 rental voucher program. If Section

8 rental assistance for a family under this program is terminated, the

rental assistance must be reissued to another Family Unification

eligible family for 5 years from the initial date of execution of the

Annual Contributions Contract subject to the availability of renewal

funding.

III. Application Selection Process For Funding

(A) Rating and Ranking

HUD's local HUD Field Offices are responsible for rating the

applications for the selection criteria established in this NOFA, and

are responsible for selection of FY 1999 applications that will receive

consideration for assistance under the Family Unification Program. The

local HUD Field Offices will initially screen all applications and

determine any technical deficiencies based on the application

submission requirements.

Each application submitted in response to the NOFA, in order to be

eligible for funding, must receive at least 20 points for Threshold

Criterion 2, Efforts of PHA to Provide Area-Wide Housing Opportunities

for Families. Each application must also meet the requirements for

Threshold Criterion 1, Unmet Housing Needs; Threshold Criterion 3,

Coordination between HA and Public Child Welfare Agency to Identify and

Assist Eligible Families; and Threshold Criterion 4, Public Child

Welfare Agency Statement of Need for Family Unification Program.

(B) Threshold Criteria

(1) Threshold Criterion 1: Unmet Housing Needs

This criterion requires the PHA to demonstrate the need for an

equal or greater number of Section 8 rental vouchers than it is

requesting under this NOFA. The PHA must assess and document the unmet

housing need for its geographic jurisdiction of families for whom the

lack of adequate housing is a primary factor in the imminent placement

of the family's child or children in out-of-home care, or in a delay of

discharge of a child or children to the family from out-of-home care.

The results of the assessment must include a comparison of the

estimated unmet housing needs of such families to the Consolidated Plan

covering the PHA's jurisdiction.

(2) Threshold Criterion 2: Efforts of PHA to Provide Area-Wide Housing

Opportunities for Families (60 Points)

(a) Description: Many PHAs have undertaken voluntary efforts to

provide area-wide housing opportunities for families. The efforts

described in response to this selection criterion must be beyond those

required by federal law or regulation such as the portability

provisions of the Section 8 rental voucher and certificate programs.

PHAs in metropolitan and non-metropolitan areas are eligible for points

under this criterion. The local HUD Field Office will assign points to

PHAs that have established cooperative agreements with other PHAs or

created a consortium of PHAs in order to facilitate the transfer of

families and their rental assistance between PHA jurisdictions. In

addition, the local HUD Field Office will assign points to PHAs that

have established relationships with nonprofit groups to provide

families with additional counseling, or have directly provided

counseling, to increase the likelihood of a successful move by the

families to areas that do not have large concentrations of poverty.

(b) Rating and Assessment: The local HUD Field Office will assign

10 points for any of the following assessments for which the PHA

qualifies and add the points for all the assessments (maximum of 60

points) to determine the total points for this Selection Criterion:

(i) 10 points--Assign 10 points if the PHA documents that it

participates in an area-wide rental voucher and certificate exchange

program where all PHAs absorb portable Section 8 families.

(ii) 10 Points--Assign 10 points if the PHA documents that its

administrative plan does not include a ``residency preference'' for

selection of families to participate in its rental voucher and

certificate programs or the PHA states that it will eliminate

immediately any ``residency preference'' currently in its

administrative plan.

(iii) 10 Points--Assign 10 points if the PHA documents that PHA

staff will provide housing counseling for families that want to move to

low-poverty or non-minority areas, or if the PHA has established a

contractual relationship with a nonprofit agency or a local

governmental entity to provide housing counseling for families that

want to move to low-poverty or non-minority areas. The five PHAs

approved for the FY 1993 Moving to Opportunity (MTO) for Fair Housing

Demonstration and any other PHAs that receive counseling funds from HUD

(e.g., in settlement of litigation involving desegregation or

demolition of public housing, regional opportunity counseling, or mixed

population projects) may qualify for points under this assessment, but

these PHAs must identify all activities undertaken, other than those

funded by HUD, to expand housing opportunities.

(iv) 10 Points--Assign 10 points if the PHA documents that it

requested from HUD, and HUD approved, the authority to utilize

exceptions to the fair market rent limitations as allowed under 24 CFR

882.106(a)(4) to allow families to select units in low-poverty or non-

minority areas.

(v) 10 Points--Assign 10 points if the PHA documents that it

participates with other PHAs in using a metropolitan wide or combined

waiting list for selecting participants in the program.

(vi) 10 Points--Assign 10 points if the PHA documents that it has

implemented other initiatives that have resulted in expanding housing

opportunities in areas that do not have undue concentrations of poverty

or minority families.

(3) Threshold Criterion 3: Coordination Between PHA and Public Child

Welfare Agency to Identify and Assist Eligible Families

The application must describe the method that the PHA and the PCWA

will use to identify and assist Family Unification eligible families.

The application must include a letter of intent from the PCWA stating

its commitment to provide resources and support for the program. The

PCWA letter of intent and other information must include an explanation

of: the method for identifying Family Unification eligible families,

the PCWA's certification process for determining Family Unification

eligible

[[Page 10908]]

families, the responsibilities of each agency, the assistance that the

PCWA will provide to families in locating housing units, the PCWA staff

resources committed to the program, the past PCWA experience

administering a similar program, and the PCWA/PHA cooperation in

administering a similar program.

(4) Threshold Criterion 4: Public Child Welfare Agency Statement of

Need for Family Unification Program

The application must include a statement by the PCWA describing the

need for a program providing assistance to families for whom lack of

adequate housing is a primary factor in the placement of the family's

children in out-of-home care or in the delay of discharge of the

children to the family from out-of-home care in the area to be served,

as evidenced by the caseload of the public child welfare agency. The

PCWA must adequately demonstrate that there is a need in the PHA's

jurisdiction for the Family Unification program that is not being met

through existing programs. The narrative must include specific

information relevant to the area to be served, about homelessness,

family violence resulting in involuntary displacement, number and

characteristics of families who are experiencing the placement of

children in out-of-home care or the delayed discharge of children from

out-of-home care as the result of inadequate housing, and the PCWA's

past experience in obtaining housing through HUD assisted programs and

other sources for families lacking adequate housing.

(C) Funding FY 1999 Applications

After the local HUD Field Office has screened PHA applications and

disapproved any applications unacceptable for further processing (See

Section V(B) of this NOFA, below), the local HUD Field Office will

review and rate all approvable applications, utilizing the Threshold

Criteria and the point assignments listed in this NOFA. The local HUD

Field Office will send to the Grants Management Center, Attention:

Michael Diggs, Director, 501 School Street, SW, Suite 800, Washington,

DC 20024, the following information on each application that passes the

Threshold Criteria:

(1) Name and address of the PHA;

(2) Name and address of the Public Child Welfare Agency;

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

(4) The requested number of rental vouchers in the PHA application

and the minimum number of rental vouchers acceptable to the PHA; and

(5) A completed fund reservation worksheet for the number of rental

vouchers requested in the application and recommended for approval by

the local HUD Field Office during the course of its review, and the

corresponding one-year budget authority.

The Grants Management Center will select eligible PHAs to be funded

based on a lottery in the event approvable applications submitted in FY

1999 are received for more funding than the approximately $28.2 million

for such applications available under this NOFA. All FY 1999 PHA

applications identified by the local HUD Field Offices as meeting the

Threshold Criteria identified in this NOFA will be eligible for the

lottery selection process. If the cost of funding these applications

exceeds available funds, HUD will limit the number of FY 1999

applications selected for any State to no more than 10 percent of the

budget authority made available under this NOFA in order to achieve

geographic diversity. If establishing this geographic limit results in

unspent budget authority, however, HUD may modify this limit to assure

that all available funds are used.

Applications will be funded in full for the number of rental

vouchers requested by the PHA in accordance with the NOFA. If the

remaining rental voucher funds are insufficient to fund the last PHA

application in full, however, the Grants Management Center may fund

that application to the extent of the funding available and the

applicant's willingness to accept a reduced number of rental vouchers.

Applicants that do not wish to have the size of their programs reduced

may indicate in their applications that they do not wish to be

considered for a reduced award of funds. The Grants Management Center

will skip over these applicants if assigning the remaining funding

would result in a reduced funding level.

IV. Application Submission Requirements

(A) Form HUD-52515

Funding Application, form HUD-52515, must be completed and

submitted for the Section 8 rental voucher program. This form includes

all the necessary certifications for Fair Housing, Drug-Free Workplace

and Lobbying Activities. An application must include the information in

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

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

to fund the requested number of voucher units. PHAs may obtain a copy

of form HUD-52515 from the local HUD Field Office or may download it

from the HUD Home page on the internet's world wide web (http://

www.HUD.gov).

(B) Letter of Intent and Narrative

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

submitted to the local HUD Field Office. Funding is limited, and HUD

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

of rental vouchers requested. The PHA must state in its cover letter to

the application whether it will accept a smaller number of rental

vouchers and the minimum number of rental vouchers it will accept. The

cover letter must also include a statement by the PHA certifying that

the PHA has consulted with the agency or agencies in the State

responsible for the administration of welfare reform to provide for the

successful implementation of the State's welfare reform for families

receiving rental assistance under the family unification program. The

application must include an explanation of how the application meets,

or will meet, Threshold Criteria 1 through 4 in Section III(B) of this

NOFA, below.

The application must also include a letter of intent from the PCWA

stating its commitment to provide resources and support for the Family

Unification Program. The PCWA letter of intent must explain:

(1) The definition of eligible family unification program families;

(2) The method used to identify eligible Family Unification Program

families;

(3) The process to certify eligible Family Unification Program

families;

(4) The PCWA assistance to families to locate suitable housing;

(5) The PCWA staff resources committed to the program; and (6) PCWA

experience with the administration of similar programs including

cooperation with a PHA.

The PCWA serving the jurisdiction of the PHA is responsible for

providing the information for Threshold Criterion 4, PCWA Statement of

Need for Family Unification Program, to the PHA for submission with the

PHA application. This should include a discussion of the case-load of

the PCWA and information about homelessness, family violence resulting

in involuntary displacement, number and characteristics of families who

are experiencing the placement of children in out-of-home care as a

result of inadequate housing, and the PCWA's experience in obtaining

housing through HUD assisted housing programs and other sources for

families lacking adequate housing. A State-wide Public

[[Page 10909]]

Child Welfare Agency must provide information on Threshold Criterion 4,

PCWA Statement of Need for Family Unification Program, to all PHAs that

request such information; otherwise, HUD will not consider applications

from any PHAs with the State-wide PCWA as a participant in its program.

(C) Evaluation Certifications

The PHA and the PCWA, in separate certifications, must state that

the PHA and Public Child Welfare Agency agree to cooperate with HUD and

provide requested data to the HUD office or HUD-approved contractor

delegated the responsibility for the program evaluation. No specific

language for this certification is prescribed by HUD.

Note: Notice of Repeal of Local Government Comment Requirements.

Local government requirements that HUD was previously required to

obtain from the unit of general local government on PHA applications

for Section 8 rental assistance under Section 213(c) of the Housing and

Community Development Act of 1974 are no longer required. Section 551

of the Quality Housing and Work Responsibility Act of 1998 (Pub.L. 105-

276, 112 Stat. 2461, approved October 21, 1998) (QHWRA) repealed the

provisions of Section 213(c) of the Housing and Community Development

Act of 1974. Although section 503 of QHWRA establishes an effective

date of October 1, 1999, for its provisions unless otherwise

specifically provided, section 503 also permits any QHWRA provision or

amendment to be implemented by notice, unless otherwise specifically

provided. Accordingly, HUD's Notice of Initial Guidance on the QHWRA,

published on February 18, 1999 (64 FR 8192), provided the notice of

immediate implementation of section 551 of QHWRA, as permitted by

section 503 of QHWRA.

V. Corrections To Deficient Family Unification Applications

(A) Acceptable Applications

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

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

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

applications and notify PHAs of technical deficiencies by letter.

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

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

letter to submit and the local HUD Field Office receive the missing or

corrected information. Curable technical deficiencies relate only to

items that do not improve the substantive quality of the application

relative to the rating factors.

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

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

will not be accepted and the application will be rejected as

incomplete.

(B) Unacceptable Applications

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

period, the local HUD Field Office will disapprove PHA applications

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

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

for the decision.

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

categories will not be processed:

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

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

Rights Laws.

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

audit findings, HUD management review findings, or independent public

accountant (IPA) findings for its rental voucher or rental certificate

programs, or the PHA has failed to achieve a lease-up rate of 90

percent of units in its HUD-approved budget for the PHA fiscal year

prior to application for funding in each of its rental voucher and

certificate programs (excluding the impact of the three-month statutory

delay requirement effective in FY 1997 and 1998 for the reissuance of

rental vouchers and certificates). The only exception to this category

is if the PHA has been identified under the policy established in

Section I(D)(2) of this NOFA and the PHA makes application with another

agency or contractor that will administer the family unification

assistance on behalf of the PHA.

(c) The PHA has failed to achieve a lease-up rate of at least 90

percent of the FUP units for which it received rental certificate

funding in FY 1997 and prior years.

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

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

additional increment of rental vouchers .

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

period, a PHA application that does not comply with the requirements of

24 CFR 982.102 and this NOFA, will be rejected from processing.

(f) A PHA application submitted after the deadline date.

VI. Findings and Certifications

Paperwork Reduction Act Statement

The Section 8 information collection requirements contained in this

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

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

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

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

collection of information unless the collection displays a valid

control number.

Environmental Requirements and Impact

In accordance with 24 CFR 50.19(b)(1), activities assisted under

this program are categorically excluded from the requirements of the

National Environmental Policy Act of 1969 (42 U.S.C. 4321) (``NEPA'')

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

authorities. This NOFA provides funding under 24 CFR 887 and 982, which

do not contain environmental review provisions because they concern

activities that are listed in 24 CFR 50.19(b) as categorically excluded

from environmental review under NEPA. Accordingly, under 24 CFR

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

review under NEPA.

Catalog of Federal Domestic Assistance Numbers

The Federal Domestic Assistance number for this program is: 14.857.

Federalism Impact

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

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

contained in this notice will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

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

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

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

funding notice and does not substantially alter the established roles

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

Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (HUD Reform Act) and the regulations codified in 24

CFR part 4, subpart A contain a number of

[[Page 10910]]

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 are applicable 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 in 24

CFR part 15.

Section 103 of the HUD Reform Act

HUD will comply with its regulations implementing section 103 of

the HUD Reform Act, codified in 24 CFR part 4, for this funding

competition. These requirements continue to apply until the

announcement of the selection of successful applicants.

HUD employees involved in the review of applications and in the

making of funding decisions are restrained by part 4 from providing

advance information to any person (other than persons authorized to

receive such information) concerning funding decisions, or from

otherwise giving any applicant an unfair competitive advantage. Persons

who apply for assistance in this competition should confine their

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

Applicants or employees who have ethics related questions should

contact the HUD Office of Ethics (202) 708-3815 (voice), (202) 708-1112

(TTY). (These are not toll-free numbers.) For HUD employees who have

specific program questions, the employee should contact the appropriate

Field Office Counsel.

Prohibition Against Lobbying Activities

Applicants for funding under this NOFA are subject to the

provisions of section 319 of the Department of Interior and Related

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

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

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

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

part 87, prohibits applicants for Federal contracts and grants from

using appropriated funds to attempt to influence Federal executive or

legislative officers or employees in connection with obtaining such

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

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

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

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

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

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

disclosing such payments must be submitted. The certification and the

SF-LLL are included in the application package.

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

December 19, 1995), requires all persons and entities who lobby covered

executive or legislative branch officials to register with the

Secretary of the Senate and the Clerk of the House of Representatives

and file reports concerning their lobbying activities.

Dated: March 2, 1999.

Harold Lucas,

Assistant Secretary for Public and Indian Housing.

[FR Doc. 99-5535 Filed 3-4-99; 8:45 am]

BILLING CODE 4210-33-P