Notice of Funding Availability, Mainstream Housing Opportunities for Persons With Disabilities, (Mainstream Program) Fiscal Year 1999

SUMMARY: Purpose of the Program. The purpose of this program is to

provide Section 8 rental vouchers to enable persons with disabilities

(elderly and non-elderly) to rent affordable private housing.

Available Funds. Approximately $48.5 million in five-year budget

authority for approximately 1,600 rental vouchers is available under

this NOFA. Although the NOFA issued on April 30, 1998, for the FY 1998

Mainstream Program (FR-4359) indicated that approvable applications not

funded in FY 1998 would receive priority for funding in FY 1999

contingent upon FY 1999 appropriations, HUD must depart from this

approach. With the enactment of the Departments of Veterans Affairs and

Housing and Urban Development, and Independent Agencies Appropriations

Act, 1999 (Pub. L. 105-276, 112 Stat. 2461, approved October 21, 1998),

Congress directed HUD in the FY 1999 House Committee Report to broaden

the Section 811 Mainstream Program's eligible applicants to include

disability non-profit organizations, as well as PHAs.

Consequently, the approximately $48.5 million available under this

NOFA will be used to fund new FY 1999 Section 811 program applications

submitted in response to this NOFA by PHAs and non-profit disability

organizations. PHAs with unfunded FY 1998 Mainstream Program

applications will need to submit a new application, in accordance with

the requirements of this NOFA, in order to be eligible to receive any

FY 1999 Mainstream Program funding.

Applications are also being invited, however, from PHAs for one-

year budget authority funding (non-Section 811 funds) that HUD

anticipates may be available for the Mainstream Program in FY 1999.

Specifically, any portion of the $40 million in one-year budget

authority in FY 1999 appropriations related to designated housing

plans, preferences in occupancy for the elderly in certain types of

Section 8 project-based developments, or restrictions in occupancy to

elderly only in certain types of section 202, section 221(d)(3), or

section 236 developments remaining unobligated will be added to the

approximately $48.5 million available under this NOFA. This one-year

budget authority will be for use only for non-elderly disabled

families.

Eligible Applicants. PHAs and non-profit disability organizations

that provide services to disabled families are eligible to apply for

the $48.5 million in five-year budget authority available under this

NOFA for applications submitted in FY 1999. Only PHAs are eligible to

apply for the one-year budget authority (up to a maximum of $40

million) that may otherwise be available under this NOFA. Indian

Housing Authorities, Indian tribes and their tribally designated

housing entities are not eligible to apply.

The rental vouchers that HUD will provide under this NOFA must be

made available to eligible disabled families regardless of their type

of disability. (See the definition of disabled family in paragraph

II(B)(1) of this NOFA.)

Application Deadline. May 7, 1999.

Match. None.

Additional Information

If you are interested in applying for funding under the Mainstream

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 by HUD in selecting applications for funding, and other valuable

information relative to a PHA's or non-profit disability organization's

application submission and participation in the Mainstream Program. New

for FY 1999 is HUD's opening of the Mainstream Program to the receipt

of applications from non-profit disability organizations that provide

services to disabled families. Also new is HUD's encouragement to PHAs

and non-profit disability organizations to view each other as a

possible contract administrator, or to be otherwise involved in the

administration of the Section 8 vouchers that either party might

receive under this NOFA.

Application Due Date and Application Submission

Delivered Applications. The application deadline for delivered

applications for the Mainstream Program is May 7, 1999, 6:00 p.m. local

HUD Field Office HUB or local HUD Field Office Program Center time.

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

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

HUD will treat as ineligible for consideration any application that is

not received by the application deadline. Applicants should submit

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

eligibility because of unanticipated delays or other delivery-related

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

application materials sent by facsimile (FAX) transmission.

Mailed Applications. Applications for the Mainstream Program will

be considered timely filed if postmarked before midnight on the

application due date and received by the local HUD Field Office HUB or

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

date.

Applications Sent By Overnight Delivery. Overnight delivery items

will be considered timely filed for the Mainstream Program if received

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

documentary evidence that they were placed in transit with the

overnight delivery service by no later than the specified application

due date.

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

the application should be submitted to the local HUD Field Office HUB,

Attention: Director, Office of Public Housing, or to the local HUD

Field Office Program Center, Attention: Program Center Coordinator. The

local HUD Field Office is the official place of receipt for all

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

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

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

Program Center.

For Application Kits, Further Information and Technical Assistance

For Application Kits. An application kit is not being made

available and is not necessary for submitting an application for

Mainstream Program funding.

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

two options. You may contact the local HUD Field Office, or you may

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

Public and Assisted Housing Delivery, Department of Housing and Urban

Development, Room 4216, 451 Seventh Street, SW, Washington, DC 20410-

8000; telephone (202) 708-1872, ext. 4064. (The number listed above is

not a toll-free number). Persons with hearing or speech impairments may

access this number via TTY (text telephone) by calling the Federal

Information Relay Service at 1-

[[Page 11303]]

800-877-8339 (this is a toll-free number).

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

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. Authority for the approximately $48.5 million in 5-

year budget authority available for the Mainstream Program under this

NOFA (general use rental assistance for persons with disabilities) is

found in the Departments of Veterans Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, 1999 (Pub. L.

105-276, approved October 21, 1998), referred to in this NOFA as the

HUD FY 1999 Appropriations Act. The HUD FY 1999 Appropriations Act

states that the Secretary may designate up to 25 percent of the amounts

earmarked for Section 811 of the National Affordable Housing Act of

1990 (42 U.S.C. 8013) for tenant-based assistance, as authorized under

that section. The HUD FY 1999 Appropriations Act provides the Secretary

of HUD with the authority to waive any provision of section 811 that

the Secretary determines is not necessary to achieve the objectives of

tenant-based assistance. Accordingly, the Secretary hereby exercises

this waiver authority in order to allow non-profit disability

organizations to be eligible to apply for the five-year budget

authority for which new applications are being requested under this

NOFA for FY 1999; i.e., $48.5 million.

The HUD FY 1999 Appropriations Act also authorizes the use of

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

rental vouchers for non-elderly disabled families in support of

designated housing plans, for non-elderly disabled families who are not

currently receiving housing assistance in certain Section 8 project-

based developments due to the owners establishing preferences for the

admission of elderly families, and for nonelderly disabled families not

being housed in certain section 202, section 221(d)(3) and section 236

developments (or portions thereof) where the owners have restricted

occupancy to elderly families. The HUD FY 1999 Appropriations Act

states that to the extent the Secretary determines that the FY 1999

appropriations related to designated housing plans and certain types of

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

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

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

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

for the Mainstream Program. As a result, as much as $40 million in one-

year budget authority may be available in additional funding in FY 1999

for the Mainstream Program.

(B) Purpose. The Secretary has established a Mainstream Housing

Opportunities for Persons with Disabilities Program (Mainstream

Program) to provide rental vouchers to enable persons with disabilities

to rent affordable private housing of their choice. In prior fiscal

years HUD provided funding for rental vouchers and certificates for the

Mainstream 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 (Pub. L. 105-276,

112 Stat. 2461, approved October 21, 1998) (QHWRA) 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 Mainstream Program will not be

funded until after the implementation of the interim rule, rental

vouchers only are being provided this year for the Mainstream Program.

The Mainstream Program will assist PHAs and non-profit disability

organizations in providing Section 8 rental vouchers to a segment of

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

the worst case housing needs of any group in the United States; i.e.,

very low-income households with adults with disabilities. In addition,

the Mainstream Program will assist persons with disabilities who often

face difficulties in locating suitable and accessible housing on the

private market.

(C) Amount Allocated. Approximately $48.5 million in five year

funding for approximately 1,600 rental vouchers. All of the

approximately $48.5 million in funding is for use in the housing of

elderly and non-elderly disabled families.

HUD will supplement the Mainstream Program funding with additional

funding, up to as much as $40 million in one-year budget authority for

approximately 8,200 rental vouchers, to the extent this budget

authority is not needed during FY 1999 to fund applications in support

of designated housing plans under NOFA FR-4412, or to fund applications

related to non-elderly disabled families on the waiting lists of

certain types of Section 8 project-based developments where the owner

has established a preference for the admission of elderly families, or

applications related to non-elderly disabled families on the waiting

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

where the owner has restricted occupancy in the project (or portion

thereof) to elderly families under NOFA FR-4413. Applications for this

one-year budget authority that may be available for the Mainstream

Program may be submitted by PHAs only.

HUD will select approvable applications for funding by lottery in

the event approvable applications are received for more funding than is

available under this NOFA FR-4415. In such event, a separate lottery

will be held to select applications for funding for the $48.5 million

available in five-year budget authority available under this NOFA, and

a separate lottery will be held to select applications for funding for

whatever amount of one-year budget authority may be available during FY

1999 for the Mainstream Program. PHA applicants should clearly indicate

in their applications if they are applying for both one-year and five-

year funding in order to ensure their inclusion in both lotteries. PHA

applicants, both those applying solely for one-year funding as well as

those submitting a single application requesting both five-year or one-

year funding, must make it clear in their applications that they have a

sufficient number of non-elderly disabled families to support the

number of rental vouchers being requested for one-year funding.

There is a limit on the number of rental vouchers that may be

requested. An eligible PHA or non-profit disability organization may

apply for a maximum of 75 rental vouchers.

(D) Eligible Applicants. A PHA established pursuant to State law

may apply for either, or both the one-year and five-year funding under

this NOFA. Non-profit disability organizations that provide services to

disabled families may apply only for the five-year funding under this

NOFA. Indian Housing Authorities, Indian tribes and their tribally

designated housing entities are

[[Page 11304]]

no longer eligible for new increments of Section 8 funding. A regional

(multi-county) or State PHA is eligible to apply for funding.

PHAs are encouraged to involve non-profit disability organizations,

that provide services to disabled families, in the administration of

the Mainstream Program's rental vouchers. Such non-profit disability

organizations could function as either a contract administrator for the

PHA's Section 8 Mainstream vouchers, or as a subcontractor responsible

for providing case management services or assisting disabled families

to locate suitable housing, gain access to supportive services, or

identify private funding sources to cover the costs of unit

modifications needed as a reasonable accommodation. Such contractual

arrangements must, however, ensure equal opportunity among the wide

variety of disabled populations in the PHA's service area. PHAs are

being encouraged to seek out non-profit disability organizations to

assist in the administration of the Mainstream vouchers due to such

organizations' capacity for assisting disabled families, as well as

their in-depth knowledge of the disability community. Likewise, non-

profit disability organizations are encouraged to seek out PHAs in

their geographic area to develop cooperative contractual relationships

under the Mainstream Program, and to enhance services to disabled

families. In addition to contacting local PHAs, non-profit disability

organizations may also wish to contact regional (multi-county), or

state-wide PHAs who may be applying for Mainstream Program funding.

Some PHAs currently administering the Section 8 rental voucher and

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

major program management findings 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 due date,

the findings are not closed to HUD's satisfaction. If the PHA wants to

apply for funding under this NOFA, the PHA must submit an application

that designates another housing agency, nonprofit agency, or

contractor, that is acceptable to HUD. The PHA's application must

include an agreement by the other housing agency, nonprofit agency, or

contractor to administer the new funding increment on behalf of the

PHA, and a statement that outlines the steps the PHA is taking to

resolve the program findings. Immediately after the publication of this

NOFA, the Office of Public Housing in the local HUD Field Office will

notify, in writing, those PHAs that are not eligible to apply without

such an agreement. The PHA may appeal the decision, if HUD has

mistakenly classified the PHA as having outstanding management or

compliance problems. Any appeal must be accompanied by conclusive

evidence of HUD's error and must be received prior to the application

deadline.

A provision in the FY 1999 House Committee Report concerning HUD's

FY 1999 appropriations called for HUD to allow non-profit disability

organizations to apply directly to HUD for the 25 percent of section

811 funds to be made available for the Mainstream Program. A non-profit

disability organization wishing to apply for the five-year funding

available under this NOFA must have the capacity to:

(1) Comply with the Section 8 Management Assessment Program (SEMAP)

certification requirements under 24 CFR Part 985.

(2) Carry out such Section 8 and SEMAP specific related activities

as making determinations as to rent reasonableness, performing housing

quality standards (HQS) inspections and enforcement, conducting annual

reexaminations of participant families, as well as otherwise meeting

Section 8 program requirements under 24 CFR parts 887 and 982.

(3) Manage the Section 8 Mainstream Program vouchers in a manner

equivalent to an overall performance rating under SEMAP (24 CFR Part

985) of ``standard'' during the first fiscal year of its receiving

Mainstream Program funding.

(4) Administer rental housing programs or manage rental housing, as

demonstrated by a specific list of rental housing programs the

nonprofit disability organization has administered or the rental

housing the organization has managed (e.g., private rental housing, HUD

or State-related housing programs, etc.).

(E) Eligible Participants. Only a disabled family that is income

eligible under 24 CFR 982.201(b) may receive a rental voucher awarded

under the Mainstream Program. While elderly and non-elderly disabled

families are eligible to receive a Section 8 rental voucher awarded to

a PHA or non-profit disability organization using five-year budget

authority under this NOFA, only non-elderly disabled families are

eligible to receive a rental voucher awarded to a PHA using one-year

budget authority that may be available for the Mainstream Program under

this NOFA. Applicants with disabilities will be selected from the PHA's

or non-profit disability organization's Section 8 waiting list.

II. Program Requirements and Definitions

(A) Program Requirements. (1) Compliance With Fair Housing and

Civil Rights Laws. All applicants must comply with all fair housing and

civil rights laws, statutes, regulations, and executive orders as

enumerated in 24 CFR 5.105(a). If an applicant: (a) has been charged

with a 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 of 1964,

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

Housing and Community Development Act of 1974, 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. Each successful

applicant will have a duty to affirmatively further fair housing.

Applicants will be required to identify the specific steps that they

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

housing that were identified in the jurisdiction's Analysis of

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

[[Page 11305]]

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.

(5) Rental Voucher Assistance Requirements.

(a) Section 8 regulations. PHAs and non-profit disability

organizations must administer the Mainstream Program in accordance with

HUD regulations and requirements governing the Section 8 rental voucher

program.

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

provided to eligible applicants in conformity with regulations and

requirements governing the Section 8 rental voucher program and the

PHA's and non-profit disability organization's administrative plan.

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

PHA or non-profit disability organization's Section 8 waiting list, the

PHA/non-profit disability organization shall conduct outreach to

encourage eligible persons to apply for this special allocation of

rental vouchers. Outreach may include contacting independent living

centers, advocacy organizations for persons with disabilities, and

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

persons receiving such services who would benefit from Section 8

assistance. If the PHA's or non-profit disability organization's

Section 8 waiting list is closed, and if the PHA or non-profit

disability organization has insufficient applicants on its Section 8

waiting list to use all awarded rental vouchers under this NOFA, the

PHA shall open the waiting list for applications from disabled

families.

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

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

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

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

family eligible for assistance under this NOFA for five years for the

five-year funding or for one year for the one-year funding under this

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

contributions contract (ACC).

(d) PHA and Non-Profit Disability Organization Responsibilities. In

addition to the responsibilities under the Section 8 rental voucher

program and HUD regulations concerning nondiscrimination based on

disability (24 CFR 8.28) and to affirmatively further fair housing,

PHAs that receive rental voucher funding shall:

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

to gain access to supportive services available within the community,

but not require eligible applicants or participants to accept

supportive services as a condition of participation or continued

occupancy in the program.

(ii) Identify public and private funding sources to assist

participants in covering the costs of modifications that need to be

made to their units as a reasonable accommodation for their

disabilities.

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

program other housing opportunities, or otherwise restrict access to

PHA or non-profit disability organization programs to eligible

applicants who choose not to participate.

(iv) Provide Section 8 search assistance.

(v) In accordance with regulatory guidance, provide higher rents to

owners necessary for the provision of accessible units and structural

modifications for persons with disabilities.

(vi) Provide technical assistance to owners for making reasonable

accommodations or making units accessible to persons with disabilities.

(B) Definitions. (1) Disabled Family. A family whose head, spouse,

or sole member is a person with disabilities. The term ``disabled

family'' may include two or more persons with disabilities living

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

more live-in aides. A disabled family may include a person with

disabilities who is elderly. (Note: This definition applies to the

approximately $48.5 million available under the Mainstream Program.

This definition shall be modified, however, to be limited solely to

non-elderly disabled families (families whose head, spouse or sole

member is disabled and under the age of 62) regarding any funding

available and awarded from the approximately $40 million in FY 1999 for

designated housing allocation plans, or in connection with certain

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

221(d)(3) or section 236 developments. See the SUMMARY section at the

beginning of this NOFA regarding the possibility of additional

Mainstream Program funding during FY 1999 beyond the approximately

$48.5 million available as announced under this NOFA.)

(2) Nonprofit disability organization. A private organization, no

part of the net earnings of which inures to the benefit of any member,

founder, contributor, or individual, that provides assistance to

persons with disabilities, as defined in section 811, and has received

a federal tax-exempt designation from the U.S. Internal Revenue

Service. The organization must:

(a) Have a voluntary board;

(b) Be authorized by its charter or State law to enter into a

contract with the Federal Government to provide housing assistance;

(c) Have a functioning accounting system that is operated in

accordance with generally accepted accounting principles, or designate

an entity that will maintain a functioning accounting system for the

organization in accordance with generally accepted accounting

principles; and

(d) Practice nondiscrimination in the provision of assistance.

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

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

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

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

impairment that:

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

(ii) Substantially impedes his or her ability to live

independently; and

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

more suitable housing conditions, or

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

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

6001(5)).

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

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

conditions arising from the etiologic agent for acquired

immunodeficiency syndrome (HIV).

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

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

eligibility for a Section 8 rental voucher under this NOFA, the

definition of a person with disabilities contained in section 504 of

the Rehabilitation Act of 1973 and its implementing regulations must

be used for purposes of reasonable accommodations.

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

program participants to housing units in a variety of neighborhoods

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

obtain units suited to their needs.

[[Page 11306]]

III. Application Selection Process For Mainstream Program

After the local HUD Field Office has screened PHA and non-profit

disability organization applications and disapproved any applications

found unacceptable for further processing, the local HUD Field Office

will review all acceptable applications to ensure that they are

technically adequate and responsive to the requirements of the NOFA.

The local HUD Field Office will send to the Grants Management Center,

Attention: Michael Diggs, Director, 501 School Street, SW, Suite 800,

Washington, DC 20024, (tel. 202-358-0273), the following information on

each application that is found technically adequate and responsive:

(1) Name and address of the PHA or non-profit disability

organization;

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

(3) The number of rental vouchers in the PHA application, and the

minimum number of rental vouchers acceptable to the PHA; and

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

of Section 8 rental vouchers requested in the PHA application and

recommended for approval by the local HUD Field Office, and the

corresponding five-year and/or one-year budget authority.

HUD Headquarters will fund all applications from PHAs that are

recommended for funding by the local HUD Field Offices unless HUD

receives approvable applications for more funds than are available. If

HUD receives approvable applications for more funds than are available,

HUD will select applicants to be funded by lottery. A separate lottery

will be held for those applicants seeking funding under the five-year

budget authority available under this NOFA, and a separate lottery will

be held for those PHAs seeking funding under the one-year budget

authority that may be available under this NOFA. All applicants

identified by the local HUD Field Offices as having submitted

technically adequate and responsive applications will be included in

the lottery. As applicants are selected, the cost of funding the

applications will be subtracted from the funds available. In order to

achieve geographic diversity, HUD Headquarters will limit the number of

applications selected for funding from any State to 10 percent of the

budget authority available for the general use Mainstream Program. If

establishing this geographic limit would result, however, in unreserved

budget authority, HUD may modify this limit to assure that all

available funds are used.

Applications will be funded for the total number of units requested

by the PHA and recommended for approval by the local HUD Field Office

(not to exceed 75 units) in accordance with this NOFA. When remaining

budget authority is insufficient to fund the last selected application

in full, however, HUD Headquarters will fund that application to the

extent of the funding available, unless the applicant indicates it will

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

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

lesser amount of funding for units available.

IV. Application Submission Requirements for Mainstream Program

(A) Form HUD-52515. All applicants must complete and submit form

HUD-52515, Funding Application, for the Section 8 rental voucher

program (dated January 1996). This form includes all 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 units. Copies of form HUD-52515 may be obtained

from the local HUD Field Office or may be downloaded from the HUD Home

Page site on the Internet's world wide web (http://www.hud.gov).

(B) Letter of Intent and Narrative. The applicant must state in its

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

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

vouchers it will accept, since the funding is limited and HUD may only

have enough funds to approve a smaller amount than the number of rental

vouchers requested. The maximum number of rental vouchers that an

applicant may apply for under this NOFA is limited to 75. The applicant

should also indicate whether or not it intends to enter into a contract

with a non-profit disability organization to serve as the contract

administrator of the Section 8 Mainstream Program vouchers, or to

otherwise provide services related to the Mainstream Program (see

Section I(D) of this NOFA).

(C) Description of Need for Mainstream Program Rental Assistance.

The application must demonstrate a need for Mainstream Program rental

vouchers by providing information documenting that the demand for

housing for non-elderly persons with disabilities would equal or exceed

the requested number of rental vouchers. The applicant must assess and

document the housing need for non-elderly persons with disabilities

using a range of sources including, but not limited to: census data,

information from the applicant's waiting list (both public housing and

Section 8), statistics on recent public housing admissions and rental

certificate and voucher use, data from local advocacy groups and local

public and private service agencies familiar with the housing needs of

non-elderly persons with disabilities, and pertinent information from

the Consolidated Plan applicable to the applicant's jurisdiction. (See

24 CFR 91.205(d).) The applicant's demonstrated need for rental

vouchers must clearly support need on the basis of non-elderly disabled

families. This distinction is important, as any FY 1999 Mainstream

Program funding that may be available beyond the approximately $48.5

million under this NOFA, must be used to assist only non-elderly

disabled families. (See the SUMMARY section at the beginning of this

NOFA regarding the possibility of substantially more Mainstream Program

funding beyond the approximately $48.5 million announced in this NOFA

as having already been obligated to fund previously unfunded FY 1998

applications.)

(D) Mainstream Program Operating Plan. The application must include

a description of an adequate plan for operating a program to serve

eligible non-elderly disabled families, including:

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

responsibilities under 24 CFR 8.28 to assist recipients in locating

units with needed accessibility features; and

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

public funding sources to help participants cover the costs of

modifications that need to be made to their units as reasonable

accommodations to their disabilities.

(3) A description of how the applicant will use a non-profit

disability organization or PHA (if any) to assist in the administration

of the Section 8 Mainstream Program (see paragraph I (D) of this NOFA).

(E) Certification Applicable to Non-Profit Disability

Organizations. A non-profit disability organization applying for the

five-year funding available under this NOFA must provide a

certification stating that it can meet the capacity requirements

applicable to a non-profit disability organization delineated in the

last paragraph of paragraph I (D) of this NOFA. The certification must

specifically list the four capacity requirements from that paragraph,

and

[[Page 11307]]

must specifically list the rental housing programs the nonprofit

disability organization has administered or the rental housing the

nonprofit disability organization has managed.

Note: Notice of Repeal of Local Government Comment Requirements.

Local government comments 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 21, 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 Mainstream Program Applications

(A) Acceptable Applications. To be eligible for processing, an

application must be received by the local HUD Field Office no later

than the date and time specified in this NOFA. The local HUD Field

Office will initially screen all applications and notify PHAs of

technical deficiencies by letter.

If an application has technical deficiencies, the applicant will

have 14 calendar days from the date of the issuance of the HUD

notification letter to submit the missing or corrected information to

the local HUD Field Office before the application can be considered for

further processing by HUD. Curable technical deficiencies relate only

to items that do not improve the substantive quality of the

application.

All applicants must submit corrections within 14 calendar days from

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

deficiency. Information received by the local HUD Field Office after 3

p.m. local HUD Field Office time on the 14th calendar day of the

correction period will not be accepted and the application will be

rejected as incomplete.

(B) Unacceptable Applications. (1) After the 14-calendar day

technical deficiency correction period, the local HUD Field Office will

disapprove all 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 that fall into any of the following categories

will not be processed:

(a) Applications 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) of this NOFA and the PHA makes application with a

designated contract administrator.

(c) The PHA or non-profit disability organization is involved in

litigation and HUD determines that the litigation may seriously impede

the ability of the PHA or non-profit disability organization to

administer the rental vouchers.

(d) An application that does not comply with the requirements of 24

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

technical deficiency correction period will be rejected from

processing.

(e) The application was submitted after the application due date.

VI. Findings and Certifications

(A) Paperwork Reduction Act Statement. The Section 8 information

collection requirements contained in this NOFA have been approved by

the Office of Management and Budget in accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned OMB control

number 2577-0169. An agency may not conduct or sponsor, and a person is

not required to respond to, a collection of information unless the

collection displays a valid control number.

(B) Environmental Impact. In accordance with 24 CFR 50.19(b)(11) of

the HUD regulations, tenant-based activities assisted under this

program are categorically excluded from the requirements of the

National Environmental Policy Act and are not subject to environmental

review under the related laws and authorities. In accordance with 24

CFR 50.19(c)(5)(ii), the approval for issuance of this NOFA is

categorically excluded from environmental review under the National

Environmental Policy Act of 1969 (42 U.S.C. 4321).

(C) Catalog of Federal Domestic Assistance Numbers. The Federal

Domestic Assistance number for this program is: 14.857.

(D) Federalism Impact. The General Counsel, as the Designated

Official under section 6(a) of Executive Order 12612, Federalism, has

determined that the policies contained in this NOFA will not have

substantial direct effects on States or their political subdivisions,

or the relationship between the Federal Government and the States, or

on the distribution of power and responsibilities among the various

levels of government. As a result, the notice is not subject to review

under the Order. This notice is a funding notice and does not

substantially alter the established roles of HUD, the States, and local

governments, including PHAs.

(E) Accountability in the Provision of HUD Assistance. Section 102

of the Department of Housing and Urban Development Reform Act of 1989

(HUD Reform Act) and the regulations in 24 CFR part 4, subpart A

contain a number of provisions that are designed to ensure greater

accountability and integrity in the provision of certain types of

assistance administered by HUD. On January 14, 1992 (57 FR 1942), HUD

published a notice that also provides information on the implementation

of section 102. HUD will comply with the documentation, public access,

and disclosure requirements of section 102 with regard to the

assistance awarded under this NOFA, as follows:

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

that documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

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

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

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

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

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

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

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis.

[[Page 11308]]

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

all applicant disclosure reports (HUD Form 2880) submitted in

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

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

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

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

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

CFR part 15.

(F) Section 103 HUD Reform Act. HUD will comply with section 103 of

the Department of Housing and Urban Development Reform Act of 1989 and

HUD's implementing regulations in subpart B of 24 CFR part 4 with

regard to the funding competition announced today. These requirements

continue to apply until the announcement of the selection of successful

applicants. HUD employees involved in the review of applications and in

the making of funding decisions are limited by section 103 from

providing advance information to any person (other than an authorized

employee of HUD) concerning funding decisions, or from otherwise giving

any applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted under section 103 and subpart B of 24 CFR part

4.

Applicants or employees who have ethics related questions should

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

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

such as whether particular subject matter can be discussed with persons

outside HUD, the employee should contact the appropriate Field Office

Counsel.

(G) Prohibition Against Lobbying Activities. Applicants for funding

under this NOFA are subject to the provisions of section 319 of the

Department of Interior and Related Agencies Appropriation Act for

Fiscal Year 1991 (31 U.S.C. 1352) (the Byrd Amendment) and to the

provisions of the Lobbying Disclosure Act of 1995 (Pub. L. 104-65;

approved December 19, 1995).

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

part 87, prohibits applicants for Federal contracts and grants from

using appropriated funds to attempt to influence Federal executive or

legislative officers or employees in connection with obtaining such

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

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

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

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

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

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

disclosing such payments must be submitted. The certification and the

SF-LLL are included in the application.

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

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

requires all persons and entities who lobby covered executive or

legislative branch officials to register with the Secretary of the

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

concerning their lobbying activities.

Dated: March 3, 1999.

Deborah Vicent,

General Deputy Assistant, Secretary for Public and Indian Housing

[FR Doc. 99-5577 Filed 3-5-99; 8:45 am]

BILLING CODE 4210-33-P