[Federal Register Volume 60, Number 19 (Monday, January 30, 1995)]
[Notices]
[Pages 5806-5810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2149]
[[Page 5805]]
_______________________________________________________________________
Part IV
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner
_______________________________________________________________________
Notice of Funding Availability (NOFA) for Fiscal Year 1995, Section 8
Community Investment Demonstration Program; Notice
Federal Register / Vol. 60, No. 19 / Monday, January 30, 1995 /
Notices
[[Page 5806]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner [Docket No. N-95-3863; FR-3829-N-01]
Notice of Funding Availability (NOFA) for Fiscal Year 1995,
Section 8 Community Investment Demonstration Program
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Notice of funding availability (NOFA) for Fiscal Year (FY)
1995.
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SUMMARY: This NOFA announces the availability of up to $251,168,250 of
FY 1995 section 8 budget authority for a national competition to be
administered by the Department of Housing and Urban Development
pursuant to section 6 of the HUD Demonstration Act of 1993. That
section directs the Secretary to carry out ``a demonstration program to
attract pension fund investment in affordable housing through the use
of project-based rental assistance under section 8 of the United States
Housing Act of 1937.'' This NOFA invites pension funds (public or
private) or their affiliates, as defined in Section I(c) of this NOFA,
to submit applications to participate in this new demonstration
program.
Under the Section 8 Community Investment Demonstration Program,
selected pension funds will provide permanent financing for the newly
constructed or substantially rehabilitated affordable multifamily
rental housing to be occupied by low income families. Each selected
pension fund will receive a set-aside of Section 8 budget authority to
be used as rental assistance payments. This project-based rental
assistance will supplement rents paid by the low income occupants of
the dwelling units in the project. No more than 50 percent of the units
in any project (except properties owned by HUD or properties with
mortgages held by HUD) may be assisted; however, HUD may provide
exceptions to this rule for limited special circumstances such as
meeting the needs of the homeless, disabled or displaced. In the case
of HUD-owned properties, the number of units required to be assisted
will be determined in the disposition plan in accordance with statutory
requirements. The pension fund will provide assistance from its set-
aside for one-half the number of units to be assisted as determined in
the disposition plan; HUD will provide the other one-half from its
property disposition set-aside.
Participating pension funds will select properties they wish to
permanently finance and will submit project-specific proposals to HUD
for approval. If the project-specific proposal is approved by HUD, a
portion of the pension fund's Section 8 set-aside will be reserved for
the project. After completion of construction or rehabilitation,
pursuant to an agreement between HUD and the project owner, a Housing
Assistance Payments Contract (Contract) will be executed between the
owner and HUD. Under this Contract, the owner will be responsible for
all management and operation of the project, including determining
eligibility of and leasing to low-income families.
This NOFA contains information for applicants regarding the
allocation of section 8 budget authority; the application process,
including the application requirements and the deadline for filing
applications; pension fund selection criteria; and the criteria for
selecting specific projects to be financed and assisted.
Detailed instructions and guidelines for implementing this
demonstration are contained in HUD Notice 95-2. Prospective applicants
should request a copy of this Notice from the HUD program office
referred to below before submitting an application to participate in
the demonstration.
DATES: Applications must be received no later than 5:00 pm EST on March
16, 1995. The above-stated application deadline is firm as to date,
hour and place, unless HUD extends the deadline by an appropriate
notice in the Federal Register. In the interest of fairness to all
competing applicants, the Department will treat as ineligible for
consideration any application that is received after the 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.
ADDRESSES: The HUD headquarters is the official place of receipt of all
applications. The address is Department of Housing and Urban
Development, Office of Insured Multifamily Housing Development, Room
6134, 451 Seventh Street, SW, Washington, DC 20410-8000. Each
submission should be clearly identified on the exterior as a ``Section
8 Community Investment Demonstration Program Application.''
FOR FURTHER INFORMATION CONTACT: Joseph E. Malloy, Office of Insured
Multifamily Housing Development, Room 6134, telephone (202) 708-3000,
or Richard L. Schmitz, Policies and Procedures Division, Room 6138,
telephone (202) 708-1113, at the address indicated above. The
telecommunications device for the deaf (TDD) telephone number is (202)
708-4594. (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act Statement
The information collection requirements contained in this NOFA have
been approved by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1980. OMB has approved the section 8
information collection requirements under the assigned control number
2577-0169.
(I) Purpose and Substantive Description
(A) Background
Section 6 of the HUD Demonstration Act of 1993 (Pub. L. 103-120,
107 Stat. 1144, approved October 27, 1993) directs the Secretary of HUD
to carry out a demonstration program to attract pension fund investment
in affordable housing through the use of project-based rental
assistance under section 8 of the United States Housing Act of 1937. In
carrying out this demonstration program the Secretary must ensure that
not less than 50 percent of the funds appropriated for each year are
used in conjunction with the disposition of either: (1) Multifamily
properties owned by the Department; or (2) multifamily properties
securing mortgages held by the Department.
In FY 1994, an appropriation of $100 million was authorized and
provided to carry out this demonstration program. On April 26, 1994 (59
FR 21826), HUD announced the availability of $100 million in FY 1994
section 8 budget authority for a national competition to be
administered by the Department of Housing and Urban Development
pursuant to Section 6 of the HUD Demonstration Act of 1993 (the Act).
Six pension funds were selected to participate in this demonstration in
response to the April 1994 NOFA. The full $100 million in budget
authority was set aside for use in connection with the new construction
or substantial rehabilitation of affordable multifamily rental housing
to be developed under this demonstration.
Approximately $334,891,000 has been authorized and provided for FY
1995. This NOFA announces the availability of up to $251,168,250 of FY
1995 budget authority. A separate NOFA, announcing the availability of
the remaining budget authority, will be [[Page 5807]] published in the
Federal Register at a later date.
Project-based Section 8 assistance under the program will be
provided pursuant to a contract entered into by the Secretary and the
owner of the eligible housing that: (1) Provides assistance for a term
which, taking into account the financing and other factors relating to
the specific project proposal, is not less than 60 and not greater than
180 months; and (2) provides for contract rents to be determined by the
Secretary.
The Section 8 Fair Market Rent Schedule for this demonstration is
120 percent of the Existing Housing Fair Market Rent Schedule most
recently published in the Federal Register. Initial gross rents
(contract rents plus allowance for tenant paid utilities) for any new
construction project, and any substantial rehabilitation project with
per unit rehabilitation costs of $5000 or more, may not exceed the Fair
Market Rents applicable to this demonstration. Initial gross rents for
any substantial rehabilitation project with per unit rehabilitation
costs of less than $5000 may not exceed 100 percent of the published
Existing Housing Fair Market Rent Schedule.
Contract rents also must be reasonable on the basis of comparison
with rents for unsubsidized units of similar age, design and location
which include comparable amenities and services.
HUD's single and multifamily mortgage insurance programs, the risk
sharing programs under Section 542 of the Housing and Community
Development Act of 1992, and Veterans Administration and Farmers Home
Administration loan and loan guarantee programs are not available for
housing developed or assisted under this demonstration program. A
pension fund must provide permanent financing for projects for which
project-specific proposals are submitted to HUD or for which assistance
is provided under this demonstration; however, the pension fund may not
have an ownership interest in such projects. The Secretary may
establish such other standards regarding financing and securitization
of project mortgages as the Secretary deems appropriate.
Finally, the Department has determined that section 3 of the
Housing and Urban Development Act of 1968 and the regulations at 24 CFR
part 135 (see June 30, 1994 Interim Rule, 59 FR 33866) are applicable
to funding awards made under this NOFA. The purpose of section 3 is to
ensure the training and employment of residents and business concerns
for economic opportunities generated by certain HUD financial
assistance shall, to the greatest extent feasible, and consistent with
existing Federal, State and local laws and regulations, be directed to
low- and very-low-income persons, particularly those who are recipients
of government assistance for housing, and to business concerns which
provide economic opportunities to low- and very-low-income persons.
(B) Allocation Amounts and Number of Units To Be Assisted
From the amounts of Section 8 assistance made available in VA, HUD-
Independent Agencies Appropriations Act for FY 1995 (Pub. L. 103-327,
108 Stat. 2299, approved September 28, 1994) the Department has set
aside approximately $334,891,000 in budget authority for this
demonstration program, of which up to $251,168,250 is being made
available through this NOFA. The number and type of units that can be
assisted will depend upon the level of gross rents (i.e., contract
rents plus allowance for tenant paid utilities), the contract
administration fee and the term of contract for specific projects.
Budget authority will be distributed under this NOFA in the
following manner:
Category A Applicants
Approximately $167,445,500 of Section 8 budget authority is being
made available under this NOFA for Category A participants. At least 50
percent of this amount must be used for HUD-owned properties or
properties with HUD-held mortgages.
A Category A applicant must identify and document in its
application the presence of a pipeline of projects for which project-
specific proposals sufficient to use the total amount of the set-aside
requested by it can be submitted to HUD within the timeframes specified
in section I(i) of this NOFA. This identification and documentation
also must substantiate the applicant's ability to meet the requirement
that at least 50 percent of any set-aside awarded to the fund must be
used for HUD-owned properties or properties with HUD-held mortgages.
The maximum amount that may initially be awarded to any one applicant
may not exceed $167,445,500 or the amount sufficient to fund the
pipeline identified and documented in its application for
participation, whichever is less. The information required to support
such identification and documentation is contained in HUD Notice 95-2.
Category B Applicants
Approximately $83,722,750 of Section 8 budget is being made
available under this NOFA for Category B participants. A Category B
participant is not required to demonstrate the presence of the type of
pipeline described above but must be able to submit project specific
proposals within the time frames specified in Section I(ii) of this
NOFA.
A category B participant may receive an initial set-aside of not
more than $10 million. A Category B participant may use the entire
amount of any set-aside awarded to it for non-HUD properties (although
HUD-owned properties or properties with mortgages held by HUD are
eligible).
(C) Eligible Applicants
Each applicant for participation in this program must demonstrate
to the satisfaction of the Department that: (1) It is a trust, fund,
plan or other program established or maintained by an employer or other
person for the purpose of providing income or benefits to employees
after the termination of employment or deferring income by employees
until the termination of employment; (2) it is an entity that serves as
an investment advisor to or engages principally in the investment of
the funds of such a trust, fund, plan, or other program; or (3) it is a
partnership or organization established to invest pension funds in
affordable multifamily housing.
Each applicant must demonstrate to the satisfaction of HUD that the
trust, fund, plan or other program which it administers, invests or to
which it serves as an advisor is fully capitalized at the time the
application for participation in the demonstration is submitted and
that capitalization is not contingent upon or in any way delayed by
pending approval of the application. If the applicant administers,
invests or serves as an advisor to one or more trust, fund, plan or
other program, each such trust, fund, plan or program must be
identified in the application together with documentation as to full
capitalization of each.
Each applicant must demonstrate its ability and intent to provide
permanent financing in connection with projects to be developed under
this demonstration.
Each applicant must also demonstrate the availability of adequate
staff capacity to perform the functions required under this
demonstration or its ability to contract for or to enter into a
partnership to obtain such services, in which case the applicant will
still be responsible for overall program administration and decisions.
[[Page 5808]]
(D) Pension Fund Applications
All applications from pension funds must contain information
specifying the number of projects and units expected to be financed,
the number and percent in each project expected to receive Section 8
assistance, contract terms anticipated, anticipated initial contract
rents, total Section 8 budget authority requested, the number of units
to be newly constructed and the number to be substantially
rehabilitated; types of families (e.g., elderly or large families or
families with special needs (disabled, displaced or homeless)) and
number of each expected to be assisted. Pension funds that submitted
applications in response to the April 26, 1994 NOFA, including those
pension funds that were selected, must submit applications in response
to this NOFA if they wish to be eligible for a portion of the FY 1995
budget authority.
All applications must contain sufficient supporting information, in
narrative and/or numerical form, as appropriate, to enable HUD to
evaluate the applicant on the basis of the Pension Fund Selection
Criteria set forth in subpart (E) below.
(E) Pension Fund Selection Criteria
All applications for participation in the demonstration will be
evaluated on the basis of the following criteria:
1. Past involvement in and capacity to permanently finance
multifamily housing;
2. Capability to make overall program and mortgage finance
decisions;
3. Use of its own resources, including how it will maximize any
Section 8 set-aside awarded to it;
4. Current multifamily pipeline and ability to move housing to
construction/rehabilitation start in a short time frame;
5. Use of HUD-owned properties or properties with mortgages held by
HUD in a variety of geographic locations (required of Category A
applicants only);
6. Efforts to promote economic or neighborhood development and/or
employment opportunities for project area residents while achieving
ethnic, cultural and gender diversity;
7. Efforts to ensure compliance with the requirements of section 3
and the implementing regulations at 24 CFR part 135 by project owners,
contractors and subcontractors; and
8. Consideration of housing needs created by dislocation of major
employment sources.
Additional, more detailed information and instructions with respect
to the above criteria, as well as on application and program procedures
in general, are contained in HUD Notice 95-2 which will be provided to
pension funds upon request to the HUD program headquarters office
referred to above. Applicants should refer to HUD Notice 95-2 for
details as to the supporting information required for each criterion.
Acceptable applications received by the deadline date and time
specified above will be evaluated against each other. Category A
applications will be evaluated separately from Category B applications.
Applications will be selected on the basis of numerical ratings
assigned to the criteria identified above.
The Department will formally notify each pension fund as to whether
or not it was selected to participate in this demonstration program and
the amount of set-aside awarded.
(F) Guidelines on Eligible and Ineligible Projects
Pension funds selected by HUD to participate in this demonstration
must submit proposals for projects they wish to permanently finance to
the Department for approval.
1. Eligible Projects
New construction projects are eligible under this demonstration. In
addition, the following types of existing projects are eligible for
substantial rehabilitation:
--A multifamily project owned by the Secretary or subject to a mortgage
held by the Secretary;
--A multifamily project eligible for assistance as a troubled project
under section 201 of the Housing Community Development Amendments of
1978;
--A multifamily project located in an empowerment zone or enterprise
community designated pursuant to Federal law;
--Any other multifamily project, including those to be occupied by
homeless persons or homeless families as defined in section 103 of the
Stewart B. McKinney Homeless Assistance Act.
2. Ineligible Projects
Certain projects are not eligible for use in this demonstration.
These include:
(a) Projects that are subject to mortgage prepayment restrictions,
including projects meeting the definition of ``eligible low income
housing'' under the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (LIHPRHA);
(b) Projects that are subject to section 250(a) of the National
Housing Act; and
(c) High rise elevator projects for families with children unless
HUD determines there is no practical alternative.
(G) Project Selection Criteria
Pension funds may establish their own criteria for selecting
project-specific proposals but such criteria must, in the aggregate,
reflect the following public purposes to the satisfaction of the
Secretary:
--Achieving economic mix;
--Increasing housing choices and fostering neighborhood diversity;
--Providing affordable housing for large, low-income families and
providing access to necessary supportive facilities and services;
--Involving other state and local and public and private resources to
achieve these objectives and to limit Section 8 assistance to less than
50 percent of the units (except in HUD-owned properties or properties
with mortgages held by HUD and under limited special circumstances
approved by HUD such as assistance for homeless, disabled, or
displaced;
--Facilitating maximum use of available Section 8 budget authority by
limiting gross rents to less than the Fair Market Rent Limitations and
contract terms to less than 15 years;
--Facilitating geographic/locality diversity of project sites and
complying with any applicable court orders;
--For Category A participants, using HUD owned properties and
properties with mortgages held by HUD in a variety of geographic
locations, and giving preferences to projects in Empowerment Zones;
--Meeting special needs of homeless, disabled, or displaced
individuals; and
--Complying with section 3 responsibilities, as set forth in 24 CFR
part 135.
A list of HUD-owned properties is available from HUD Headquarters,
Office of Preservation and Property Disposition, telephone (202) 708-
3343, or (202) 708-4595 (TDD). Information on properties with mortgages
held by HUD is available from the Office of Multifamily Housing
Management in HUD Headquarters, telephone (202) 708-3730, or (202) 708-
4594 (TDD).
More detailed information with respect to these criteria and
methods of selection is contained in HUD Notice 95-2. HUD Notice 95-2
sets forth the format and specific information needed for pension funds
to meet the requirements of this subpart (G).
[[Page 5809]]
(H) Use of HUD Inventory
A Category A participant will be required to use at least 50
percent of its Section 8 set-aside in connection with HUD-owned
properties or properties with mortgages held by HUD unless the
Department determines that requirements of section 6(b) of the Act will
otherwise be met and approves an exception.
In the case of HUD-owned properties, the number of units required
to be assisted will be determined in the disposition plan in accordance
with statutory requirements. The pension fund will provide assistance
from its set-aside for one-half the number of units to be assisted as
determined in the disposition plan; HUD will provide the other one-half
from its property disposition set-aside.
A Category B participant may, but will not be required to, use any
of its set-aside for HUD-owned properties or properties with mortgages
held by HUD.
(I) Section 8 Project-Specific Contract Award
(i) Category A Participants. A Category A participant will have 120
days from the date of its selection to participate in the demonstration
to submit project-specific proposals utilizing 75 percent of the total
amount of its Section 8 set-aside under this NOFA. It will have 10
months from the date of selection to commit (i.e., close on
construction financing) its Section 8 set-aside to specific projects.
A Category A participant will have 180 days and 12 months,
respectively, to submit project-specific proposals and to close on
construction financing for the remaining 25 percent of its Section 8
set-aside.
(ii) Category B Participants. A Category B participant must submit
project-specific proposals sufficient to use 50 percent of its Section
8 set-aside under this NOFA within 6 months from the date of selection
to participate in the demonstration. It will have 10 months from the
date of selection to reach closing of construction financing.
A Category B participant will have 12 months and 16 months,
respectively, to submit project-specific proposals and to close on
construction financing for the remaining 50 percent of its Section 8
set-aside.
(iii) Uncommitted Set-asides. Any amount of set-asides not
committed to specific projects by the end of the time periods indicated
above, or any extensions of these time periods granted by HUD, may be
withdrawn by HUD and reallocated to other pension funds based on the
performance of the receiving pension fund in utilizing its previous
allocation(s) or to pension funds not previously selected by HUD due to
the lack of available budget authority.
(J) Receipt and Processing of Project-Specific Proposals
Project-specific proposals must include the information and
certifications identified in HUD Notice 95-2 and be submitted in the
format specified therein.
After receipt of a project-specific proposal, HUD will, in
accordance with HUD Notice 95-2, obtain and issue appropriate Davis-
Bacon wage rate determinations and perform certain HUD-retained reviews
for compliance with:
--Site acceptability criteria for this demonstration;
--Environmental requirements, except that HUD may accept and adopt an
environmental review conducted by a CDBG or HOME grantee in accordance
with 24 CFR part 58;
--Affirmative Fair Housing Marketing requirements;
--Previous participation of project principals in HUD programs; and
--Subsidy layering guidelines, unless the Housing Credit Agency has
agreed to perform subsidy layering reviews for projects receiving Low
Income Housing Tax Credits or some form of HUD assistance.
Upon completion of the HUD reviews, HUD will notify the pension
fund whether or not the proposal is acceptable and of the steps
requisite to execution of the HAP Agreement.
(K) Post Approval Processing
The HAP Agreement may not be executed nor may construction or
substantial rehabilitation begin until the certifications required by
HUD Notice 95-2 are submitted to and found acceptable by HUD.
(L) Contract Administration
The statute calls for assistance to be provided through ``a
contract entered into by the Secretary and the owner.'' It is the
Department's intent to enter into a HUD/Private Owner HAP Agreement and
Contract. HUD will then enter into a contract with an HFA or PHA that
has jurisdiction over the geographic area in which the project is
located. For a fee, the HFA or PHA will carry out certain
administrative or ministerial functions that otherwise would be the
responsibility of HUD as the Section 8 Contract Administrator. Any
administrative fee payable to the HFA or PHA will not exceed 5 percent
of the published 2 bedroom Fair Market Rent for Existing Housing for
the area and will be payable out of the Section 8 contract and budget
authority reserved for each project.
(M) Project Construction and Completion
Project construction, completion and cost certification
requirements are contained in HUD Notice 95-2. HUD may perform field
reviews if necessary to substantiate compliance with program
requirements.
(N) HUD-Private Owner HAP Contract
If the pension fund and owner are in compliance with HUD Notice 95-
2, HUD will execute a HUD/Private Owner HAP Contract with the owner.
The contract will contain provisions relative to: (1) The terms of the
contract which may be not less than 5 nor more than 15 years; (2) the
responsibilities of the owner for project management and maintenance;
(3) a prohibition on the use of other Federal programs so long as the
contract is in effect; (4) a limitation on assistance for the project
to the housing assistance payments available under the Contract; (5)
the requirement that in the event the project is refinanced to lower
the interest rate and/or debt service payment, HUD may reduce the
Contract rents; and (6) the right for HUD to terminate the Contract for
cause if the owner fails to perform in accordance with the provisions
of the Contract.
II. Other Matters
(A) Environmental Impact
A Finding of No Significant Impact with respect to the environment
was made in accordance with HUD regulations at 24 CFR part 50, which
implement section 102(2)(C) of the National Environmental Policy Act of
1969, at the time of development of the NOFA published on April 26,
1994 (59 FR 21826). The Finding remains applicable to this NOFA and is
available for public inspection during regular business hours in the
Office of General Counsel, the Rules Docket Clerk room 10276, 451
Seventh Street, SW, Washington, DC 20410.
(B) Federalism Impact
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this NOFA
does not have substantial, direct effect on the States, on their
political subdivisions, or on the relationship between the Federal
government and the States, or on the distribution of power or
responsibilities among the various levels of government, because this
NOFA would not [[Page 5810]] substantially alter the established roles
of HUD, the States and local governments.
(C) Impact on the Family
The General Counsel, as the Designated Official under Executive
Order 12606, the Family, has determined that this notice does not have
potential for significant impact on family formation, maintenance, and
general well-being within the meaning of the Executive Order and, thus,
is not subject to review under the Order. This is a funding notice and
does not alter any HUD program requirements affecting the family.
(D) Accountability in the Provision of HUD Assistance
HUD has promulgated a final rule to implement section 102 of the
Department of Housing and Urban Development Reform Act of 1989 (HUD
Reform Act). The final rule is codified at 24 CFR part 12. Section 102
contains 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 16, 1992, HUD published at
57 FR 1942, additional information that gave the public (including
applicants for, and recipients of, HUD assistance) further 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
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 five-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
quarterly Federal Register notice of all recipients of HUD assistance
awarded on a competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and
the notice published in the Federal Register on January 16, 1992 (57 FR
1942), for further information on these requirements.)
(2) Disclosures
HUD will make available to the public for five 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 generally
less than three 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. (See 24 CFR Part 12 subpart C, and the notice published in
the Federal Register on January 16, 1992 (57 FR 1942), for further
information on these disclosure requirements.)
(E) Prohibition Against Lobbying Activities
The use of funds awarded under this NOFA is subject to the
disclosure requirements and prohibitions of section 319 of the
Department of Interior and Related Agencies Appropriations Act for
Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the
implementing regulations at 24 CFR part 87. These authorities prohibit
recipients of Federal contracts, grants, or loans from using
appropriated funds for lobbying the Executive or Legislative Branches
of the Federal Government in connection with a specific contract,
grant, or loan. The prohibition also covers the awarding of contracts,
grants, cooperative agreements, or loans unless the recipient has made
an acceptable certification regarding lobbying. Under 24 CFR part 87,
applicants, recipients, and subrecipients of assistance exceeding
$100,000 must certify that no Federal funds have been or will be spent
on lobbying activities in connection with the assistance.
(F) Prohibition Against Lobbying of HUD Personnel
Section 13 of the Department of Housing and Urban Development Act
(42 U.S.C. 3537b) contains two provisions dealing with efforts to
influence HUD's decisions with respect to financial assistance. The
first imposes disclosure requirements on those who are typically
involved in these efforts--those who pay others to influence the award
of assistance or the taking of a management action by the Department
and those who are paid to provide the influence. The second restricts
the payment of fees to those who are paid to influence the award of HUD
assistance, if the fees are tied to the number of housing units
received or are based on the amount of assistance received, or if they
are contingent upon the receipt of assistance.
HUD's regulation implementing section 13 is codified at 24 CFR part
86. If readers are involved in any efforts to influence the Department
in these ways, they are urged to read the final rule, particularly the
examples contained in appendix A of the rule. Appendix A of this rule
contains examples of activities covered by this rule.
Any questions concerning the rule should be directed to the Office
of Ethics, Room 2158, Department of Housing and Urban Development, 451
Seventh Street, SW, Washington DC 20410. Telephone: (202) 708-3815
(voice/TDD). This not a toll-free number. Forms necessary for
compliance with the rule may be obtained from the local HUD office.
(G) Prohibition Against Advance Information on Funding Decisions
Section 103 of the HUD Reform Act proscribes the communication of
certain information by HUD employees to persons not authorized to
receive that information during the selection process for the award of
assistance. HUD's regulation implementing section 103 is codified at 24
CFR part 4. In accordance with the requirements of section 103, HUD
employees involved in the review of applications and in the making of
funding decisions are restrained by 24 CFR part 4 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 by 24 CFR part 4. Applicants who have questions
should contact the HUD Office of Ethics (202) 708-3815 (voice/TDD).
(This is not a toll-free number.)
Dated: January 6, 1995.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 95-2149 Filed 1-27-95; 8:45 am]
BILLING CODE 4210-27-P
