[Federal Register Volume 60, Number 116 (Friday, June 16, 1995)]
[Notices]
[Pages 31842-31851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14732]
[[Page 31841]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Public and Indian Housing
_______________________________________________________________________
Funding Availability for FY 1995; Invitation for Applications: Public
Housing Development; Notice
Federal Register / Vol. 60, No. 116 / Friday, June 16, 1995 / Notices
[[Page 31842]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Assistant Secretary for Public and Indian Housing
[Docket No. N-95-3882; FR-3867-N-01]
Notice of Funding Availability for FY 1995; Invitation for
Applications: Public Housing Development
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 1995
for public housing development; invitation for applications.
-----------------------------------------------------------------------
SUMMARY: This NOFA announces the availability of FY 1995 funding, and
invites eligible public housing agencies (PHAs) to submit applications
for public housing development. Applications are limited to the
following Categories:
(1) Replacements for demolition/disposition subject to section 18
of the United States Housing Act of 1937 (USHA);
(2) Replacements for homeownership transfers under the HOPE I
Program, and homeownership sales under section 5(h) of the USHA;
(3) Headquarters Reserve: Unforeseen housing needs resulting from
natural and other disasters; housing needs resulting from emergencies,
as certified by the Secretary, other than such disasters; housing needs
resulting from the settlement of litigation; and housing in support of
desegregation efforts; and
(4) ``Other'' applications.
All successful applicants for categories (3) and (4) above will be
required to participate in the Family Self-Sufficiency (FSS) program,
unless granted an exception. This NOFA also provides instructions
regarding the preparation and processing of applications. The
Department is also encouraging applicants to form ``partnerships''
consisting of cooperative arrangements with community-based entities to
provide housing, and is encouraging PHAs to engage in ``mixed income''
development (wherein public housing units are integrated within market-
rate developments). This is being done by providing additional points
for such efforts with respect to ``other'' applications (see sections
III.E.5 and IV.E. of this NOFA).
This NOFA is not applicable to the Indian housing program.
DATES: Applications are due at the HUD Field Office on or before 3
p.m., local time, on July 31, 1995. See Section III of this NOFA for
further information on application submission. If an application is
mailed to the Field Office, the PHA must clearly write ``PUBLIC HOUSING
DEVELOPMENT APPLICATION'' on the outside of the envelope and obtain a
return receipt indicating the date and time of delivery. Hand delivered
applications shall be date/time stamped and initialed by the employee
receiving the application upon delivery.
The application deadline is firm as to date and hour. In the
interest of fairness to all applicants, HUD will not consider any
application that is received after the deadline. PHAs should take this
into account and submit applications as early as possible to avoid risk
brought about by unanticipated delays or delivery-related problems. In
particular, PHAs intending to mail applications must provide sufficient
time to permit delivery on or before the deadline date. Acceptance by a
Post Office or private mailer does not constitute delivery. Facsimile
(Fax), COD, and postage due applications will not be accepted.
FOR FURTHER INFORMATION CONTACT: Kevin Emanuel Marchman, Deputy
Assistant Secretary, Office of Distressed and Troubled Housing
Recovery, Department of Housing and Urban Development, 451 Seventh
Street, SW., Room 4138, Washington, DC 20410. Telephone (202) 401-8812
(Voice) or (202) 708-4594 (TDD). (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 OMB under the Paperwork Reduction Act of 1980
and have been assigned OMB control numbers 2577-0033 and 3577-0036.
I. Introduction
A. Authority
Sections 5 and 23 of the United States Housing Act of 1937 (USHA)
(42 U.S.C. 1437c and 1437u); and sec. 7(d) of the Department of Housing
and Urban Development Act (42 U.S.C. 3535(d)).
Public housing development regulations are published at 24 CFR part
941; demolition/disposition regulations are published at 24 CFR part
970; section 5(h) regulations are published at 24 CFR part 906.
The regulations for the public housing FSS program are codified at
24 CFR part 962.
The Notice of Program Guidelines for the HOPE-1 program was
published on January 14, 1992 (57 FR 1522) and codified as 24 CFR
Subtitle A, Appendix A. The Catalog of Federal Domestic Assistance
Program number is 14.850.
B. Fund Availability
The Department of Veterans Affairs and Housing and Urban
Development and Independent Agencies Appropriation Act of 1995 [(Pub.L.
103-327, approved September 28, 1994) (1995 Appropriations Act)] makes
available $598 million of budget authority for Public Housing
Development under section 5(a)(2) of the USHA. Some of the appropriated
funds for annual contributions are to be derived from the recapture of
prior year obligations or funds carried over from last year. Other
adjustments within the Annual Contributions Account in 1995, including
the addition of carryover funds, abate somewhat the impact of these
factors. After these adjustments the amount available is $600,278,866.
Of that amount, $74,126,542 already has been obligated to meet
litigation needs, including replacement housing related to litigation.
The Department expects to reserve or has reserved an approximately
additional $145 million to meet litigation needs, including replacement
housing related to litigation, or to redress mistakes in prior year
awards. This would leave approximately $381 million available for
commitments under this NOFA. The Department reserves the right to
reserve additional funds prior to awards made under this NOFA for
replacement housing proposals which clearly are essential to ending the
isolation of large family public housing communities.
The Senate and the House of Representatives have passed legislation
which would rescind part or all of the funding made available for
public housing development by the 1995 Appropriations Act. The
President vetoed this legislation on June 7, 1995. In the event
rescissions become law, the Department will publish prompt notice of
the impact on this NOFA.
Subject to any changes resulting from enactment of rescission
legislation, the Department will make available at least $100 million
for ``other'' applications. Up to .67 percent of the appropriated
amount (up to $4,006,600) has been set aside for technical assistance
and inspections. The Department expects all of the remaining funds to
be needed and used for replacement housing (categories 1 and 2 above).
Additional funds may be made available for ``other'' applications if
the Department determines that funds remain after replacement housing
and Headquarters Reserve needs are met. For additional details see the
next sections below.
[[Page 31843]]
C. Fund Assignments
Section 213(d) of the Housing and Community Development Act of 1974
(HCD Act of 1974) requires that funds be allocated on a fair share
basis, except for (a) amounts identified as Headquarters Reserve and
(b) amounts determined incapable of geographic allocation.
1. Headquarters Reserve
Threshold-approvable applications for housing resulting from
unforeseen housing needs resulting from natural and other disasters;
housing needs resulting from emergencies, as certified by the
Secretary, other than such disasters; housing needs resulting from the
settlement of litigation; and housing in support of desegregation
efforts shall be assigned Headquarters Reserve funding if available.
(Headquarters Reserve amounts are limited in accordance with section
104 of the Department of Housing and Urban Development Reform Act of
1989 (Pub.L. 101-235, approved December 15, 1989), to five percent of
the financial assistance that becomes available under the USHA and
section 101 of the HUD Act of 1965. Thus, Headquarters Reserve funding
decisions will be made by Headquarters and may affect the distribution
of grant authority shown above.)
2. Fair Share
Subject to changes which may result from enactment of a rescission
law, which could affect the requirement to fair share funds, at least
$100 million will be fair shared to approve category 4 (``other'')
applications. These fair share funds will be distributed to Areas
(formerly Regions) on the basis of the following fair share factors,
which reflect the most recent decennial census data as to population,
poverty, housing overcrowding, housing vacancies, amount of substandard
housing, and other measurable conditions. Any unused assignments will
be redistributed, proportional to need, among remaining Areas with
approvable unfunded ``other'' applications. The Department may fair
share additional funds later in the fiscal year to fund additional
approvable ``other'' applications submitted in response to this NOFA if
the Department determines that such funds will not be required for
replacement housing and Headquarters Reserve needs.
Fair share and Headquarters Reserve funds are also subject to the
requirement of section 213 of the HCD Act of 1974 that not less than 20
percent nor more than 25 percent of the HUD aggregate program funds
covered by the statute be allocated for use in nonmetropolitan areas.
Therefore, public housing development fund allocations to select
``other'' applications may be modified before assignment in order to
ensure Departmental compliance with this statutory and regulatory
requirement (see 24 CFR 791.403(a)).
------------------------------------------------------------------------
Fair-share
Area factors (%)
------------------------------------------------------------------------
New England................................................ 6.5
New York/New Jersey........................................ 18.1
Mid-Atlantic............................................... 8.8
Southeast.................................................. 13.8
Midwest.................................................... 15.7
Southwest.................................................. 8.3
Great Plains............................................... 3.8
Rocky Mountain............................................. 2.6
Pacific/Hawaii............................................. 18.5
Northwest/Alaska........................................... 3.9
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Total.................................................. 100.0
------------------------------------------------------------------------
3. Non-Fair Share
The Department expects that there will be a substantial demand
during the fiscal year for Category 1, replacements for demolition/
disposition subject to section 18 of the USHA, and category 2,
replacements for homeownership transfers under the Hope I program and
homeownership sales under section 5(h) of the USHA. This is projected
to occur based on applications for demolition/disposition and
homeownership replacement already received, because the Department and
a number of PHAs are placing additional emphasis on the demolition and
replacement of obsolete family housing which cannot provide a suitable
living environment (e.g., obsolete family highrise developments or
partial demolition of excessively dense, large and isolated lowrise
developments), and because the future availability of a separate
allocation of public housing development funding for replacement
housing is uncertain. The Department will make all remaining public
housing development funds, after subtracting funding for the
Headquarters Reserve, $100 million for ``other'' applications if these
applications are still to be funded (see above) and $4,066,600 for
technical assistance, available as needed for categories 1 and 2.
Various conditions regarding commitment of funding for replacement
housing are listed in Section III of this NOFA below.
4. Remaining Balances
Any residual funds not reserved under categories 1, 2, 3, and 4 as
described above will be added to the funds to be fair shared for any
priority ``other'' approvable applications as determined by the
Department.
D. Conformity to Regulations and NOFA Requirements
While conformity with 24 CFR part 941 is required, this funding
effort is also subject to the additional specific requirements,
consistent with the regulations, that are set forth in this NOFA.
Applicants also should consult Handbook 7417.1 REV-1, and the FSS
regulations codified at 24 CFR part 962. The selection criteria
specified in this NOFA may not be added to or modified.
II. Application Process Overview
A. General
All applications shall be submitted to the appropriate Field Office
by the application deadline date. The Field Office shall screen each
application for completeness and will provide the PHA a 14-day
opportunity to furnish missing technical information or exhibits, or to
correct technical mistakes. Each application will then be subjected to
a ``pass/fail'' threshold examination. Approvable category 1, 2, and 3
applications will be reported to Headquarters for further action.
Category 4 passing applications will be forwarded for rating to
Rating Panel(s). One or more Rating Panels, comprised of HUD Field
representatives appointed by Headquarters, shall be convened for the
purpose. Category 4 applications will be rated by the Rating Panel(s)
based on Field Office analyses. Headquarters will determine the funds
required to approve category 1, 2, and 3 applications and select
category 4 applications based on Rating Panel ratings and
recommendations.
B. Categories of Applications
Each application must be for one of the following categories:
1. Replacement units for demolition/disposition approvals, subject
to section 18 of the USHA (Category 1);
2. Replacement units for HOPE I or section 5(h) homeownership
transfers or sales (Category 2);
3. Public housing to be funded from Headquarters Reserve (Category
3); or
4. ``Other'' development applications intended to increase the
public housing stock (Category 4). Category 4 applicants are limited to
no more than one application per locality, which may cover multiple
sites.
C. Application Approval
1. All category 3 approvable applications will be funded, to the
extent the required funds do not exceed statutorily set limits.
2. If there are insufficient funds to fund all category 1 and
category 2 approvable applications, the
[[Page 31844]]
Department shall endeavor to fund category 1 and category 2
applications meeting the following descriptions: replacement related to
litigation settlements or court orders, if the necessary funds have not
yet been reserved; replacement for emergency demolition/disposition, if
any; replacement for demolition/disposition to complete treatment of
sites partially funded under the Urban Revitalization Demonstration
Program authorized by the HUD Appropriations Acts of 1993, 1994 and
1995 or partially funded for comprehensive modernization or major
reconstruction activities; replacement for obsolete family highrises;
replacement for essential public housing density reduction at large
family lowrises or as part of other efforts to end the isolation of
large family public housing communities; prior replacement housing
obligations; and category 2 replacement applications for homeownership,
particularly where the transfer of property will occur this fiscal year
and the units in question have not yet been replaced. Of these
categories, replacement related to litigation settlements or court
orders will be funded first.
3. Category 4 (other) applications will be funded up to the fair
share amounts for each Area.
4. Any funds not required for categories 1, 2, or 3 or initially
allocated to categories 4 or technical assistance as outlined above
will be utilized for any additional ``other'' approvable applications
as determined by the Department.
D. Disclosure of Information
The Department of Housing and Urban Development Reform Act of 1989
(HUD Reform Act) prohibits advance disclosure of funding decisions (see
24 CFR part 4); civil penalties related to advance disclosure are set
out in 24 CFR part 30. Application approval/non-approval notifications
shall not occur until the Congressional notification process is
completed.
E. Records Retention
Applications and materials related to applications (e.g., Field
Office analyses, application scoring sheets, and notifications of
selection/non-selection) will be retained in the appropriate Field
Office for five years, and be available for public inspection in
accordance with 24 CFR part 12.
III. Application Requirements
A. All Applicants
Each application must specify the housing type (new construction,
rehabilitation, or acquisition), development method (conventional,
turnkey, or acquisition), and community for which the project is
proposed. No more than one housing type, development method, and
locality may be proposed for an application. Each such application
shall consist of an original and two copies, and must include the
following:
1. Cover Letter. The cover letter must identify the category of
application (see Section II.B. of this NOFA for a description of the
categories; see also subparagraph 6 of Section III.A of this NOFA).
2. Application-Form HUD 52470. The application must be signed by
the person authorized and dated and include the information as
specified in the form.
3. Evidence of Legal Eligibility. If it has not previously done so,
the PHA must document that it is legally organized. A current General
Certificate (Form HUD 9009) must be submitted.
4. Cooperation Agreement (Form HUD 52481). The PHA must document
that the number of units requested, along with units in management and
other units in development, are covered by Cooperation Agreements.
5. PHA Resolution In Support of the Application (Form HUD-52471).
Under this resolution, the PHA agrees to comply with all requirements
of 24 CFR part 941 (see also paragraph 6 of this Section III.A). By
executing the PHA Resolution, the PHA also certifies that it will
comply with Title II of the Americans with Disabilities Act (42 U.S.C.
12131) and the implementing regulations at 28 CFR part 35.
6. Front-End Funds. If front-end funds are being requested, the PHA
must so state in its cover letter; should the PHA desire the project
only if front-end funds can be approved, the PHA must so state. The
Form HUD-52471 (PHA Resolution) must refer to the request, and include
Form HUD-52472 (Local Governing Body Resolution/Transcript of
Proceedings) approving the request.
7. Drug-Free Workplace. The PHA must submit the Certification for a
Drug-Free Workplace (Form HUD-50070) in accordance with 24 CFR 24.630.
8. Certification for Contracts, Grants, Loans and Cooperative
Agreement (Form HUD-50071). In accordance with 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, the PHA must certify that
no federally appropriated funds have been paid or will be paid, by or
on behalf of the PHA, for influencing or attempting to influence an
officer or employee of any agency, or a member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant or loan, the entering into of any cooperative agreement,
and the extension, continuation, renewal, amendment, or modifications
of any Federal contract, grant, loan, or cooperative agreement.
9. Form SF-LLL, Disclosure of Lobbying Activities. Also in
accordance with the Byrd Amendment and the regulations at 24 CFR part
87, the PHA must complete and submit Form SF-LLL if funds other than
federally appropriated funds have been paid or will be paid by or on
behalf of the PHA for influencing or attempting to influence an officer
or employee of any agency, or a member of Congress in connection with
the awarding of any Federal contract, the making of any Federal grant
or loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modifications of any
Federal contract, grant, loan, or cooperative agreement.
10. Disclosure of Government Assistance and Identity of Interested
Parties (Form HUD 2880). The PHA must submit the Applicant/Recipient
Disclosure/Update Report (Form HUD-2880) in accordance with the
requirements of 24 CFR part 12, subpart C.
11. Family Self-Sufficiency (FSS). Section 23 of the USHA requires
PHAs that are awarded new public housing units to implement an FSS
program. Applicants for Category 3 (Headquarters Reserve) or Category 4
(Other) funds must certify that they will comply with 24 CFR part 962,
which requires successful applicants to initiate or expand an FSS
program for the number of families that equals the total number of
units they have been awarded (unless otherwise excepted).
B. Applications for New Construction
In accordance with section 6(h) of the USHA, new construction may
be engaged in only if the PHA demonstrates to the satisfaction of the
Secretary that the cost of new construction in the neighborhood where
the PHA determines the housing is needed is less than the cost of
acquisition or acquisition and rehabilitation in such neighborhood.
Therefore, every application for a new construction project
(conventional or turnkey) must be accompanied by either the information
described in paragraphs B.1 and B.3 of this section, or, at the
applicant's option, the information
[[Page 31845]]
described in paragraphs B.2 and B.3 of this section:
1. A PHA comparison of the costs of new construction (in the
neighborhood where the PHA proposes to construct the housing) and the
costs of acquisition of existing housing or rehabilitation in the same
neighborhood (including estimated costs of lead-based paint testing and
abatement); or
2. A PHA certification, accompanied by supporting documentation,
that there is insufficient existing housing in the neighborhood to
develop housing through acquisition of existing housing or
rehabilitation; and
3. A statement that:
(a) Although the application is for new construction, the PHA will
accept acquisition of existing housing or rehabilitation, if HUD
determines the PHA cost comparison or certification of insufficient
housing does not support approval of new construction; or
(b) The application is for new construction only. (In any such
case, if HUD cannot approve new construction under section 6(h) of the
USHA, the application will be rejected.)
C. Replacement Housing Applications
1. Cover Letter. For both category 1 and category 2 applications,
the cover letter must state whether the demo/dispo or transfer/sale
application (to demolish/dispose of units, or to transfer/sell units)
(hereinafter referred to as the ``underlying application'') has been
approved; the date of approval; the project number and the name of the
project being replaced; and whether it is being replaced in whole or in
part. If the underlying application was not approved at the time the
replacement housing application is filed, the cover letter must state
the date the underlying application was submitted or the estimated date
the underlying application will be submitted for consideration.
Category 1 or 2 applications will not be funded unless the underlying
application is submitted by the time funding selections are made. The
Department may make a funding award if the underlying application has
not yet been approved, if all aspects of the underlying application
other than compliance with section 412 of the Cranston-Gonzalez
National Affordable Housing Act of 1990, as amended, are approvable by
August 1, 1995.
2. Section 5(j) Certification. The PHA must certify that the units
requested are specifically required in FY 1995 either to meet the one-
for-one replacement requirement of section 18 of the USHA to replace
public housing demolition/disposition; or to meet the requirements of
section 304(g) of the USHA to replace existing public housing approved
in FY 1995 or earlier for homeownership transfer under HOPE 1, or for
sale under section 5(h) of the USHA.
3. Replacement Application Under Section 18. A PHA submitting a
replacement housing application under section 18 (category 1) must
demonstrate that the replacement units, alone or together with other
identified replacement units, will implement the PHA's Replacement
Housing Plan submitted and approved or expected to be submitted and
approved under 24 CFR 970.11, including requirements that such units:
(a) Are for no fewer units (or portion thereof approved by HUD)
than the number of units to be demolished or disposed of; and
(b) Will house at least the same number of individuals and families
that could be served by the housing to be demolished or disposed.
4. Replacement Application for Homeownership Transfers or sales.
Applicants submitting applications to meet the requirements of section
304(g) of the USHA to replace existing public housing approved in FY
1995 or earlier for homeownership transfer under HOPE 1, or for sale
under section 5(h) of the USHA, must provide the following: a schedule,
by federal fiscal year, of the number of units previously transferred
and/or expected to be transferred consistent with the actual progress
achieved under the approved HOPE 1 or Section 5(h) plan; a listing of
the number of replacement housing units already received and accounted
for under all the allowable replacement housing options as well as the
balance of units not yet replaced; and the number of public housing
development units and/or Section 8 units now being requested for
homeownership replacement. (The Section 8 units will not be awarded
under this NOFA.)
5. Statement Regarding Consistency with HUD Priorities.
Appropriations for replacement housing are encouraged to include a
statement describing consistency of the application with the
replacement housing categories described in paragraph II. C. 2. of this
NOFA.
6. Impact of Pending Legislation. The Congressionally approved
rescission bill includes a proposal to repeal replacement housing
requirements for underlying applications approved on or prior to
September 30, 1995. In the event this proposal becomes law, the
Department will issue notice of any changes required or authorized for
replacement housing applications to be submitted in response to this
NOFA.
D. Applications for Units to be Funded from Headquarters Reserve
1. Cover Letter. A PHA submitting a category 3 application shall
identify the purpose of the application (see Section I.C.1 of this
NOFA).
2. Section 5(j) Certification. The PHA may certify that the units
requested are required to comply with court orders or directions of the
Secretary; or, as appropriate, the section 5(j) certification
applicable to category 4 (Other) applications (see Section III.E.2.
below). Court orders must be identified.
(Note: Category 3 needs typically are not fulfilled through the
application process.)
E. ``Other'' Applications
Applicants are encouraged to review the rating criteria (Section
IV.E. of this NOFA) to ensure rating factors have been addressed in the
application. ``Curable technical deficiencies'' (Section IV.B. of this
NOFA) relate only to items that would not improve the substantive
quality of applications relative to rating factors. A PHA may file only
one application per locality under this category.
1. Cover Letter. Applicants for ``other'' public housing
development units (category 4), must state whether they will accept
fewer units than applied for. Refusal to accept fewer units may result
in an application not being selected if funds are not sufficient for
the full number of units.
2. Section 5(j) Certification. The PHA must certify to one of the
following, pursuant to section 5(j) of the USHA (select E.2.a or
E.2.b.):
(a) The units requested (limited to 100 or fewer) are needed for
family housing to satisfy demands not being met by the section 8
existing or voucher rental assistance programs; or
(b) 85 percent of the PHA's dwelling units (select (1), (2), or
(3)):
(1) Are maintained in substantial compliance with the section 8
housing quality standards (24 CFR 882.109); or
(2) Will be so maintained upon completion of modernization for
which funding has been awarded; or
(3) Will be so maintained upon completion of modernization for
which applications are pending that have been submitted in good faith
under section 14 of the USHA (or a comparable State or local government
program), and that there is a reasonable expectation, as determined in
writing by HUD, that such application would be approvable; or will be
so maintained upon completion of modernization under the Comprehensive
Grant program.
3. Funding Preference in Accordance With Section 6(p). Section 6(p)
of the USHA requires HUD to provide a
[[Page 31846]]
funding preference for applications in areas with an inadequate supply
of housing for use by low-income families (i.e., a ``tight'' housing
rental market). The implementation of this preference shall be in
accordance with the process described in Section V.A.2 of this NOFA.
(a) The PHA must furnish data relative to rental vacancy rates in
the market area where the project is proposed. This data should include
a description of the data sources and methods used to obtain survey
information. (It is recommended that PHAs consult with local community
development agencies relative to their housing needs before submitting
applications under this NOFA, since most of these agencies will have
participated in the development of a Comprehensive Housing
Affordability Strategy (CHAS) or Consolidatd Plan.)
(b) Factors such as the following will provide evidence of
conditions which, when taken together, will demonstrate a pattern of
inadequate supply (generally, no one factor, taken alone, is
conclusive):
(1) The current rental housing vacancy rate is at a low level
(typically six percent or lower) which results in housing not being
available for families seeking rental units (unless the housing market
area is not growing and, as a result, is experiencing low levels of
demand);
(2) The annual production of rental housing units is insufficient
to meet the demand arising from the increase in households, or, where
there is little or no growth, is insufficient to meet the demand
arising from net losses to the available inventory;
(3) The shortage of housing is resulting in rent increases
exceeding those increases commensurate with rental housing operating
costs; and
(4) A significant number or proportion of section 8 certificate/
voucher holders are unable to find adequate housing because of the
shortage of rental housing, as evidenced by PHA data showing a lower-
than-average percentage of units under lease and a longer-than-average
time required to find units (typically, less than 85 percent lease up
within 60 days).
4. Documentation to Demonstrate Need. The PHA must submit
documentation, such as waiting list description or PHA vacancy rate
data, to demonstrate need for the proposed public housing, to assist
the HUD Field Office in its determination of need and market in
accordance with Section IV.C.8.b of this NOFA.
5. Additional Rating Points. Category 4 (other) applications may
obtain additional rating points (see Section IV.E.8 of this NOFA) if
the PHA furnishes additional data regarding any of the following:
(a) ``Partnerships.'' PHAs are encouraged to form ``partnerships''
consisting of cooperative or contractual arrangements with community-
based entities for the purpose of developing housing so that the
housing fits into the community and is seen as an integral part of it.
``Community-based entities'' include private non-profit or for-profit
entities with experience in the development of low and moderate income
housing, or that are skilled in the delivery of services to families
who are residents of public housing. ``Cooperative or contractual
arrangements'' include those that will facilitate development
(including management of the units) that will enhance the long-term
viability of the development; and those arrangements that the PHA has
for the delivery of services (such as child care, education, and
economic opportunities) made available to residents of public housing.
The PHA should indicate who the entity (or entities) are, the
qualifications of the entity and its principals, and the role they play
or will play in the development, management, or service delivery
process which will lead to better acceptance of public housing in the
community. Such cooperative arrangements require substantial
involvement by the non-PHA partner in at least one of the following
areas: design, management, development, site selection, representation
to the community, or service delivery. 24 CFR Part 85, regarding
procurement, applies to any such cooperative arrangement. With respect
to the delivery of services, costs for such services are not eligible
to be paid from public housing development funds. The PHA must also
certify that its selection of the cooperative entity (or entities) was
in compliance with State and local law.
[Note: If procurement requirements cannot be complied with
before the application deadline date, the PHA may submit a statement
with its application describing the anticipated arrangement and
certifying that it will undertake such a cooperative relationship
and that such a relationship will comply with federal/state and
local law.]
(b) Mixed Income Development. In order to encourage the development
of public housing in metropolitan areas that will be less identifiable
as public housing, PHAs are encouraged to develop units whereby public
housing would be mixed with market-rate dwellings so that they are
indistinguishable. Specifically, in order to receive the maximum points
for this factor, a PHA must propose to develop or acquire units or
sites in developments where the non-public housing units require
incomes that, on average, are at or above 80 percent of median. A PHA
also may receive points for acquisitions of units or sites in
developments where the non-public housing units require incomes that,
on average, are at or above 50 percent of median.
(c) Past compliance with section 3. The PHA may submit evidence
that over the past five years it has met any commitments made under the
provisions of section 3 of the Housing and Urban Development Act of
1968 (12 U.S.C., 1701u), as amended from time to time, and the
implementing regulations for section 3 at 24 CFR part 135. If the PHA
does not have development experience, it may instead submit evidence
related to such experience with the modernization program.
(d) Proposed compliance with section 3. The PHA may submit its
goals for complying with section 3 employment and training with regard
to the public housing development application being filed under this
NOFA.
(e) Support for local initiatives. If the application proposes a
project which, as evidenced by a letter from local officials, actively
supports an area of local initiative such as a Community Development
Block Grant, urban revitalization, Empowerment Zone/Enterprise
Community, or other similar local activity, or includes a commitment
for a donation to the project in the event it is selected for funding,
the PHA should describe the activity.
(f) Resident Initiatives. If the PHA is working with residents to
establish and/or foster resident empowerment activities (such as
establishing Resident Corporations or Resident Management
Corporations), the activities should be described.
(g) Preservation of Low-Income Housing. The PHA should describe any
means by which use of public housing development funds will preserve
low-income housing resources currently available to the community.
F. Applications Covering State or Locally-Assisted Units
Applications for conversion of State- or locally-assisted units or
federally assisted public housing are eligible for assistance under
this NOFA.
G. Major Reconstruction of Obsolete Projects (MROP).
The Department will fund no MROP in fiscal 1995, unless the
Department determines that such funding is necessary from Headquarters
Reserve in
[[Page 31847]]
relation to litigation settlements, court orders or litigation
avoidance.
H. Ineligible Applications
Applications for intermediate care facilities and nursing homes may
not be approved under this NOFA.
IV. Field Office Processing of Applications
A. Submission of Applications
The cover letter of all applications must be marked with the date
and time of receipt, along with the initials of the Field Office
employee accepting the application. Applications received after the
date and time specified at the beginning of this NOFA will be returned
to the applicant. The PHA should obtain a ``Return receipt'' or similar
evidence of delivery when applications are delivered via other means
(U.S. Mail, private mailing firms, etc.).
B. Initial Screening
1. Immediately after the deadline for receipt of applications, the
Field Office will screen each application to determine whether all
information and exhibits have been submitted.
(a) If any application lacks any technical information or exhibit,
or contains a technical mistake, the PHA will be advised in writing and
will have 14 calendar days from the date of the issuance of HUD's
notification to deliver the missing or corrected information or
documentation to the Field Office.
(b) Curable technical deficiencies relate only to items that would
not improve the substantive quality of a category 4 application,
relative to the ranking factors.
(c) If Form HUD 52470 (Application) is missing, the PHA's
application will be considered substantively incomplete, and therefore
ineligible for further processing. If other forms are missing, such as
Form HUD 50070 (Drug Free Workplace Certification) or if there is a
technical mistake, such as no signature, or an unauthorized signatory
on a submitted form, the PHA will be given an opportunity to correct
the deficiency.
2. An application that does not meet the applicable threshold and
NOFA requirements after the 14-day technical deficiency period will be
rejected from processing and determined to be unapprovable.
3. Applications proposing housing in areas also served by the Rural
Housing and Community Development Service (RHCS) (formerly known as
Farmers Home Administration) are subject to coordination with RHCS to
assure that assisted housing resources to be provided are not
duplicative. The State RHCS office shall be advised that an application
for public housing has been received and is being considered for
funding, and be provided an opportunity to comment on the application.
4. The responsibility for submitting a complete application rests
with the PHA. The failure of the Field Office to identify and provide a
notice of deficiency to the PHA shall not relieve the PHA of the
consequences of failure to submit a complete application.
C. Application Threshold Approvability.
After initial screening and upon expiration of the deficiency
``cure'' period, complete applications will be examined for threshold
approvability. Applications that fail one or more of the threshold
criteria will be rejected from processing and determined to be
unapprovable. All applications for public housing development funds
must meet the following thresholds to be determined approvable:
1. The PHA may not have any litigation pending which would preclude
approval of the application. The PHA must be legally eligible to
develop, own, and operate public housing under the USHA and have:
(a) Approved and current PHA organization documents;
(b) Local cooperation agreements to cover units under management,
in development, and the units requested (Form HUD 52481), and any other
required local authority, or evidence the Department finds sufficient
that such cooperation agreements can be obtained in a timely fashion;
(c) A properly executed and complete PHA Resolution (Form HUD
52471), required with respect to all applications and referring to the
need for front-end funding, if requested, and a Local Governing Body
Resolution (HUD 52472) which approves the request for front-end funds,
if front-end funds are requested. (Note: By executing the PHA
Resolution, the PHA certifies that it will comply with Title II of the
Americans with Disabilities Act (42 U.S.C. 12131) and the implementing
regulation at 28 CFR part 35. The PHA Resolution also certifies to the
PHA's intent to comply with all requirements of 24 CFR part 941. These
requirements include: nondiscrimination under the applicable civil
rights laws; the requirements imposed by the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42
U.S.C. 4601-4655); the accessibility requirements of section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's implementing
regulations at 24 CFR part 8; and section 3 of the Housing and Urban
Development Act of 1968, as amended (12 U.S.C. 1701u), and HUD's
implementing regulations at 24 CFR part 135.
2. The category of application is eligible under this NOFA (see
Section II.B of this NOFA).
3. If new construction (conventional or turnkey) has been applied
for, the PHA has provided a cost comparison or a certification with
documentation (see Section III.B. of this NOFA), and has stated what is
to be done with the application if new construction is not approvable.
4. No application shall be determined to be approvable if the PHA
has failed to return excess advances received during development or
modernization, or amounts determined by HUD to constitute excess
financing based on a HUD-approved Actual Development Cost Certificate
(ADCC) or Actual Modernization Cost Certificate (AMCC), unless HUD has
approved a pay-back plan.
5. There are no environmental factors, such as sewer moratoriums,
precluding development in the requested locality.
6. The following certifications are included in the application and
have been executed by the appropriate person(s):
(a) Form HUD-50070, Drug-Free Workplace;
(b) Form HUD-50071, Certification for Contracts, Grants, Loans and
Cooperative Agreements;
(c) Form SF-LLL, Disclosure of Lobbying Activities, if applicable;
(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report;
(e) FSS certification;
(f) Section 5(j) certification appropriate to the category of
application;
(g) Certification that the application is consistent with
Environmental Justice Executive Order 12898, in that the proposed
public housing will be developed only in environmentally sound and
desirable locations and will avoid disproportionately high and adverse
environmental effects on minority and low-income communities.
7. The PHA must be in compliance with civil rights laws and equal
opportunity requirements. A PHA will be considered to be in compliance
if:
(a) As a result of formal administrative proceedings, there are no
outstanding findings of noncompliance with civil rights laws unless the
PHA is operating in compliance with a HUD-approved compliance agreement
designed to correct the area(s) of noncompliance;
[[Page 31848]]
(b) There is no adjudication of a civil rights violation in a civil
action brought against it by a private individual, unless the applicant
demonstrates that it is operating in compliance with a court order
designed to correct the area(s) of noncompliance;
(c) There is no deferral of Federal funding based upon civil rights
violations;
(d) There is no pending civil rights suit brought against the PHA
by the Department of Justice; or
(e) There is no unresolved charge of discrimination against the PHA
issued by the Secretary under section 810(g) of the Fair Housing Act,
as implemented by 24 CFR 103.400.
8. For ``other'' applications only:
(a) The Field Office must determine that the PHA has or will have
the capability to develop and manage the proposed housing. The Field
Office shall determine capability based upon the PHA's overall score
under the Public Housing Management Assessment Program (PHMAP) (see 24
CFR part 901), the PHA's most recent fiscal audit, and outstanding HUD
monitoring findings. A PHA shall not be determined to lack
administrative or development capability simply because it has no
recent experience in developing or managing public/assisted housing.
(b) The Field Office must determine that there is a need and a
market for the proposed household type and bedroom sizes, taking into
consideration the documentation submitted by the PHA on housing supply
and demonstration of need, any local plans, and other assisted housing
(e.g., HUD or RHCS) existing and proposed (including housing funded but
not completed).
9. With respect to all applications the Department reserves the
right to require the PHA to utilize an alternative administrator to
carry out the applicable public housing development program.
D. Threshold Approvable Applications
Applications in categories 1, 2, and 3 will be determined
approvable if they successfully pass the threshold review. Threshold-
approvable applications in category 4 (``other'') will be reviewed and
analyzed by the Field Office.
E. ``Other'' Development Applications
Threshold approvable ``Other'' applications will have points
assigned by a Rating Panel(s) on the basis of Field Office analysis and
PHA documentation relating to the following criteria:
------------------------------------------------------------------------
Criteria Points
------------------------------------------------------------------------
1. Relative Need. The application proposes a development for a
locality which has been previously under-funded for the
household type (family or elderly) requested, relative to the
need for housing for the same household type in the
respective metropolitan or non-metropolitan portion of the
Field Office's jurisdiction. [Select (a), (b) or (c)]:
(a) Housing need in the locality specified in the
application has been severely under-funded. (A locality
with a percentage of need served that is equal to or less
than one-half the Field Office percentage will be
determined to be severely under-funded.);................ 20
or
(b) Housing need in the locality specified in the
application has received a proportionate share of funding
or has been moderately under-funded. (A locality with a
percentage of need served that is equal to or less than
the Field Office percentage, but greater than one-half
that percentage will be determined to be moderately under-
funded.);................................................ 10
or
(c) Housing need in the locality specified in the
application has been over-funded. (A locality with a
percentage that is greater than the Field Office
percentage will be determined to have been over-funded.); 0
2. Vacancy Rate. Select (a) or (b):
(a) The adjusted vacancy rate in public housing
developments under management (as such term is defined in
the Public Housing Management Assessment Program, 24 CFR
901 et. seq.) is not greater than 3 percent, indicating
that the PHA will and can fully utilize the units for
which it applied;........................................ 10
or
(b) The adjusted vacancy rate in public housing
developments under management is greater than 3 percent
but less than 6 percent (or two units if that is
greater);................................................ 5
3. Large-Family Housing. The application is for a public
housing development comprising 51 percent or more three
bedroom or larger units;..................................... 15
4. Relocation. The proposed public housing development would
primarily assist households displaced or to be displaced by
Federal action or a natural disaster in a Federally declared
disaster area;............................................... 15
5. Low Density Family Housing. The application proposes
scattered site development to expand housing opportunities;.. 20
6. PHA Development Experience. [Select (a), (b), or (c)]
(a) The PHA scored at least 90 percent (``A'') in
Indicator 12 (Development) of PHMAP;..................... 15
or
(b) The PHA's latest PHMAP score for Indicator 12
(Development) is between 80 and 89 percent; or the Field
Office has no information on the PHA's previous
development experience to rate the PHA under paragraph
(a) above; however, the application demonstrates the
capability for, and the expectation of, expeditious
quality or other development experience, or submitted a
development management contract with an experienced
development project manager);............................ 10
or
(c) The PHA's latest PHMAP score for Indicator 12
(Development) is between 60 and 79 percent; or the PHA
has no development experience under either paragraph (1)
or (2) above, but the PHA has evidenced staff capability
and organization that demonstrates the PHA has the
capability for, and the expectation of, expeditious
quality development or has submitted a proposed
development management contract;......................... 5
7. PHA Management Experience. [Select (a), (b), or (c)]
(a) The PHA's latest PHMAP score (excluding development)
is 90 percent or better; and there were no Inspector
General audit findings during the PHA's last fiscal
audit; and there are no outstanding HUD monitoring
findings;................................................ 20
or
(b) The PHA's latest PHMAP score (excluding development)
is between 80 and 89; and Inspector General audit
findings (if any) have been addressed; and outstanding
HUD monitoring findings have been resolved;.............. 10
or
(c) Choose (1) or (2):
(1) The PHA's latest PHMAP score (excluding
development) is between 60 and 79; and Inspector
General audit findings (if any) have been addressed;
and outstanding HUD monitoring findings have been
resolved;............................................ 5
or
(2) The PHA has no public housing in management, but
has management experience in the section 8 program
and management reviews or Inspector General audit
findings (if any) are being addressed satisfactorily; 5
[[Page 31849]]
8. Other Criteria. (Select any that apply)
(a) The PHA has certified that it will form, or submit
evidence that it has formed, a ``partnership'' (i.e., a
cooperative relationship) with an entity that will play a
substantial role in development, design, management, or
representation to the community and has described the
partnership's role; or the PHA has certified that it will
form, or submit evidence that it has formed, a
``partnership'' with an entity that plays a substantial
role in the delivery of services and that these services
will be available to residents of the project under
development, and has described the partnership's role.... 15
(b) Choose (1) or (2) if applicable:
(1) The PHA has certified that it will develop or
acquire units or sites in developments where the non-
public housing units require incomes that, on
average, are at or above 80 percent of median;....... 15
or
(2) The PHA has certified that it will develop or
acquire units or sites in developments where the non-
public housing units require incomes that, on
average, are at or above 50 percent of median;....... 10
(c) The PHA has submitted evidence that over the past five
years it has met any commitments made under the
provisions of section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C., 1701u), as amended
from time to time, and the implementing regulations for
section 3 at 24 CFR part 135. (If the PHA does not have
development experience, it may instead submit evidence
related to its experience with the modernization
program.);............................................... 10
(d) The application proposes a public housing development
which, as evidenced by a letter from local officials,
actively supports an area of local initiative such as a
Community Development Block Grant, urban revitalization,
Empowerment Zone/Enterprise Community, or other similar
local activity, or includes a commitment for a donation
to the project in the event it is selected for funding;.. 15
(e) The Field Office, based on documentation submitted by
the PHA, has determined that the PHA is working with
residents to establish and/or foster resident empowerment
activities (such as establishing Resident Corporations or
Resident Management Corporations);....................... 10
(f) Preservation of low-income housing. The PHA
demonstrates that commitment of development funds will
preserve low-income housing resources currently available
to the community......................................... 20
---------
Total Possible Points................................. 200
------------------------------------------------------------------------
F. Field Office Reports
1. Category 1, 2, and 3 Applications. Each Field Office shall
forward its lists (by category) of fair-share exempt threshold-
approvable applications to Headquarters within two weeks of the
deficiency ``cure'' period. The lists shall include the project number,
total number of units and units by bedroom size, structure type(s),
cost areas, funding required and the metropolitan/non-metropolitan
designations for each application. Category 1 and 2 applications shall
also identify the underlying project and its current status (e.g.,
approved (date), under review in Field Office, etc.).
2. Category 4. All Field Office reports to Rating Panels on
threshold-approvable ``other'' applications shall be submitted within
three weeks of the deficiency ``cure'' period and include the
information described in paragraph F.1., above, the analysis of each
application, and Field Office recommendations for funding.
V. Rating Panels
A. Rating Panels
1. General. The Rating Panel(s) shall compile data furnished by
Field Offices for category 4 (other) applications, and rate each
application based on Field Office analyses, comments, and
recommendations.
A list of rated applications shall be forwarded to Headquarters,
with copies of Field Office reviews and recommendations, and
justifications for Rating Panel rankings. Headquarters shall not modify
ratings of category 4 (``other'') applications unless a gross error has
occurred.
Examples of ``gross errors'' include, but are not limited to,
errors in calculating the vacancy rate in the proposed community, or
assigning points for development/management experience based on a PHMAP
score that was successfully appealed, or simple errors of arithmetic.
Changes in ratings shall be fully documented, and a copy of the
memorandum authorizing the change (and the basis thereof) shall be sent
to the Rating Panel and to the Field Office for inclusion in the file
and be made available for public inspection. Category 4 applications
shall be approved within Areas, to the extent fair share funds are
assigned, as follows:
2. ``Tight Market'' Determination. Headquarters will separate
applications (category 4) on the basis of ``tight rental housing
market'' and Rating Panel ratings and Headquarters rankings, and
approve them (in the following order) to the extent fair share funds
are assigned to their respective Area:
(a) Applications within the same Area in tight rental housing
markets which receive 100 or more rating points;
(b) All other applications in the same Area, in rank order,
depending on ``metropolitan'' or ``non-metropolitan'' funding
available.
B. Reservation of Funds
Funds will be reserved in an amount equal to the total development
cost limit for the number, structure type, and size of units being
approved, ``trended'' to take into consideration the anticipated cost
of construction at the time the construction/rehabilitation contract is
expected to be executed; acquisition reservations will be trended to
take into account anticipated cost variations between fund reservation
and Date of Full Availability (DOFA). The trend shall be calculated by
multiplying the project total development cost limit by 6 percent
(1.06), rounded to the nearest $50. No amendment funds will be
available for these projects in the future.
C. Partial Funding
Partial funding of highly ranked ``other'' applications within an
Area may occur (so long as such projects are determined viable and the
PHA has indicated willingness to accept fewer units) to facilitate the
funding in rank order of additional applications for highly ranked
projects. With respect to categories 1, 2 and 3, partial funding may be
provided where the Department determines this to be appropriate.
VI. Checklist of Application Submission Requirements
A. Submission Requirements
PHAs may use the following application checklist which enumerates
the submission requirements of Section III of this NOFA:
[[Page 31850]]
1. Cover letter;
2. Form HUD 52470, Application for Public Housing Development;
3. Evidence of legal eligibility (if not previously evidenced) with
a current General Certificate (HUD 9009);
4. Evidence that the number of units in management, in development,
and being requested in this application are covered by Cooperation
Agreements (HUD 52481) and any other State/local requirements have been
met;
5. HUD 52471, PHA Resolution in Support of Public Housing;
6. HUD 52472, Local Governing Body Resolution, if front-end funds
are being requested by the PHA. (Note: If front-end funds are
requested, the HUD 52471 must be appropriately modified. See Section
III.A.6. of this NOFA.);
7. PHA statement identifying its funding preferences for particular
sites if an application covering more than one site is being submitted
for category 4 (see Section II.B of NOFA). (Note, however, that no more
than one application per locality may be filed under category 4.);
8. PHA statement whether it will accept fewer ``other'' units than
applied for (category 4);
9. HUD 50070, PHA Certification for a Drug-Free Workplace;
10. HUD-50071, Certification for Contracts, Grants, Loans and
Cooperative Agreements;
11. Form SF-LLL, Byrd Amendment Disclosure and Certification
Regarding Lobbying, only if the applicant determines it is applicable;
12. Form HUD 2880, Disclosure of Government Assistance and Identity
of Interested Parties;
13. Section 5(j) certification appropriate to the category of
application;
14. Certification of consistency with Environmental Justice
Executive Order 12898;
15. Evidence of inadequate housing supply (i.e., a ``tight'' rental
housing market), for category 4 (``Other'') units;
16. Evidence (such as waiting list information or PHA vacancy rate
data) of need and market for the units requested for category 4
applications;
17. Section 6(h) cost comparison justification, if new construction
is requested;
18. FSS program certification if for Category 3 (Headquarters
Reserve) or Category 4 (``Other'') units;
19. Replacement housing exhibits, if applicable (see section
III.C);
20. (Optional) For replacement housing applications, documentation
how the application addresses HUD priorities (see section II.C.2).
21. (Optional) For ``other'' applications, documentation to address
the rating factors (see section IV.E.).
B. Application Packets
Forms comprising the application package may be obtained from the
HUD Field Office.
VIII. Other Matters
A. Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
implementing section 102(2)(C) of the National Environmental Policy Act
of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is
available for public inspection and copying between 7:30 a.m. and 5:30
p.m. weekdays at the Office of the Rules Docket Clerk, 451 Seventh
Street, S.W., Room 10276, Washington, D.C. 20410.
B. Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this NOFA
will not have substantial, direct effects on States, on their political
subdivisions, or on their relationship with the Federal government, or
on the distribution of power and responsibilities between them and
other levels of government. The NOFA will provide PHAs with funding for
public housing development.
C. Family Impact
The General Counsel, as the Designated Official for Executive Order
12606, the Family, has determined that the provisions of this NOFA do
not have the potential for significant impact on family formation,
maintenance and general well-being within the meaning of the Order. To
the extent that the funding provided through this NOFA results in
additional or improved housing, the effects on the family will be
beneficial.
D. Prohibition Against Lobbying Activities: The Byrd Amendment
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) 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. As noted earlier a certification is required, at the time
the application for funds is made, that Federally appropriated funds
are not being or have not been used in violation of section 319 and
that disclosure will be made of payments for lobbying with other than
Federally appropriated funds. Also, again as noted earlier, there is a
standard disclosure form, SF-LLL, ``Disclosure Form to Report
Lobbying,'' which must be used to disclose lobbying with other than
Federally appropriated funds.
E. 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 is not a toll-free number. Forms necessary for
compliance with the rule may be obtained from the local HUD office.
[[Page 31851]]
F. Section 112 of the HUD Reform Act 1989
A final rule published in the Federal Register on September 7,
1993, amended the definition of ``person'' to exclude from coverage a
State or local government, or the officer or employee of a State or
local government or housing finance agency thereof who is engaged in
the official business of the State or local government.
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 is 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. That regulation applies to the funding competition
announced today. The requirements of the rule 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 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.)
The Office of Ethics can provide information of a general nature to HUD
employees, as well. However, a HUD employee who has specific program
questions, such as whether particular subject matter can be discussed
with persons outside the Department, should contact his or her Regional
or Field Office Counsel, or Headquarters Counsel for the program to
which the question pertains.
H. Accountability in the Provision of HUD Assistance
HUD's regulations at 24 CFR part 12 implement section 102 of the
HUD Reform Act. Section 102 contains a number of provisions designed to
ensure greater accountability and integrity in the provision of certain
types of assistance administered by HUD. The following requirements
concerning documentation and public access disclosures are applicable
to assistance awarded under this NOFA.
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 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 of 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.)
Dated: May 30, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-14732 Filed 6-12-95; 3:59 pm]
BILLING CODE 4210-33-P
