[Federal Register Volume 62, Number 106 (Tuesday, June 3, 1997)]
[Notices]
[Pages 30402-30409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14384]
[[Page 30401]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
Notice of Funding Availability for HOPE VI Public Housing Demolition--
Fiscal Year 1997; Notice
Federal Register / Vol. 62, No. 106 / Tuesday, June 3, 1997 /
Notices
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4228-N-01]
Notice of Funding Availability for HOPE VI Public Housing
Demolition--Fiscal Year 1997
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of funding availability (NOFA).
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SUMMARY: This notice informs Public Housing Agencies (PHAs) of the
availability of up to $30 million in HOPE VI funding for the demolition
of obsolete Public Housing units without revitalization, where the
demolition would otherwise not occur due to lack of available
resources. Indian Housing Authorities are not eligible to apply.
DATES: An original application must be received at HUD Headquarters,
Attention: Director, Office of Public Housing Investments, 451 Seventh
Street, SW, Room 4138, Washington, DC 20410, on or before 4 p.m.
eastern time on August 4, 1997. The application deadline for the
original application delivered to HUD Headquarters is firm as to date
and hour. PHAs should take this into account and submit applications as
early as possible to avoid the 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. HUD will disqualify and return to the
applicant any application that it receives after the deadline date and
time. Notwithstanding the foregoing, HUD will accept any application
the original of which was delivered to a U.S. post office or private
mailer for expedited delivery, properly addressed to Headquarters and
fully paid for, no later than 12:00 noon local time on the day before
it was due at HUD, for scheduled delivery prior to the deadline
established above. If an application arrives at HUD Headquarters after
the deadline date and time and the applicant wishes to make a case that
it delivered the application for expedited delivery on time, the
applicant must document with an official receipt from the post office
or private mailer that the application was received by 12:00 noon local
time on the day before it was due at HUD.
In addition, two copies of the completed application must be
received at the Field Office. The deadlines for submission discussed
above only apply to the original, official copy, not to the copies of
the application going to the Field Office.
FOR FURTHER INFORMATION CONTACT: Mr. Milan Ozdinec, Director, Office of
Urban Revitalization, Department of Housing and Urban Development, 451
Seventh Street, SW, Room 4142, Washington, DC 20410; telephone (202)
401-8812 (this is not a toll free number). Hearing-or speech-impaired
individuals may access this number via TTY by calling the Federal
Information Relay Service at 1-800-877-TDDY, which is a toll-free
number. The NOFA is also available on the HUD Home Page, at the World
Wide Web at http://www.hud.gov/nofas.html. HUD also will post
frequently-asked questions and answers on the Home Page throughout the
application preparation period.
SUPPLEMENTARY INFORMATION:
Promoting Comprehensive Approaches to Housing and Community Development
HUD is interested in promoting comprehensive, coordinated
approaches to housing and community development. Economic development,
community development, public housing revitalization, homeownership,
assisted housing for special needs populations, supportive services,
and welfare-to-work initiatives can work better if linked at the local
level. Toward this end, HUD in recent years has developed the
Consolidated Planning process designed to help communities undertake
such approaches.
In this spirit, it may be helpful for applicants under this NOFA to
be aware of other related HUD NOFAs that have recently been published
or are expected to be published in the near future. By reviewing these
NOFAs with respect to their program purposes and the eligibility of
applicants and activities, applicants may be able to relate the
activities proposed for funding under this NOFA to the recent and
upcoming NOFAs and to the community's Consolidated Plan.
NOFAs related to housing revitalization that HUD has published are
the NOFA for Revitalization of Severely Distressed Public Housing (HOPE
VI), which was published on April 14, 1997, and the NOFA for the
Comprehensive Improvement Assistance (CIAP) Program, which was
published on May 1, 1997. Other NOFAs related to housing revitalization
the Lead-based Paint Hazard Reduction NOFA, which is published
elsewhere in today's Federal Register, and the NOFA for the Section 8
Rental Certificate and Voucher Programs, which HUD expects to publish
within the next few weeks.
To foster comprehensive, coordinated approaches by communities, HUD
intends for the remainder of FY 1997 to continue to alert applicants to
upcoming and recent NOFAs as each NOFA is published. In addition, a
complete schedule of NOFAs to be published during the fiscal year and
those already published appears under the HUD Homepage on the Internet,
which can be accessed at http://www.hud.gov/nofas.html. Additional
steps on NOFA coordination may be considered for FY 1998.
For help in obtaining a copy of your community's Consolidated Plan,
please contact the community development office of your municipal
government.
I. Purpose and Substantive Description
A. Authority
The funding made available under this NOFA is provided by the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997 (Pub. L. 104-204;
approved September 26, 1996) (the 1997 Appropriations Act), under the
heading ``Revitalization of Severely Distressed Public Housing.''
B. Fund Availability
This NOFA announces the availability of up to $30 million in HOPE
VI funding for the demolition of obsolete Public Housing units without
revitalization, where the demolition would otherwise not occur due to
lack of available resources. Indian Housing Authorities are not
eligible to apply.
C. Application Limitations
There is no minimum or maximum limitation on the size of the PHA
that may apply or on the number of dwelling units for which demolition
funding is requested. The Department will limit the eligible demolition
funding per unit to $5,000 for vacant units and $6,500 for occupied
units that require resident relocation. In addition, there will be a
$3,000,000 limit on each grant. A PHA may apply for funding for only
one public housing development. Contiguous developments will be
considered one development for purposes of this NOFA.
D. Previously Submitted Demolition Applications
PHAs with previously submitted and/or approved demolition
applications that include dwelling units may apply for funding under
this NOFA where the PHA has not signed a contract to demolish the
structure(s) and the actual
[[Page 30403]]
demolition costs have not yet been incurred. This NOFA is not intended
to reimburse PHAs for demolition costs already incurred.
E. Eligible Costs
Eligible costs include: (1) The cost of demolition, including any
required asbestos and/or lead-based paint abatement, of dwelling units
and nondwelling facilities, where the demolition is approved by HUD
under 24 CFR part 970 but where the PHA has not yet signed a contract
for demolition and the building(s) has not been demolished, (2) minimal
site restoration after demolition and subsequent site improvements to
benefit the remaining portion of the project or to make the site more
saleable, (3) demolition of nondwelling facilities are eligible costs
only where related to the demolition of the dwelling units, (4)
necessary administrative costs, and relocation and other assistance
costs related to the permanent relocation.
II. NOFA Application Requirements
The PHA shall submit the original NOFA Application to the address
specified by the date specified in the DATE section above. An
application must contain all of the items in A-E of this section to be
considered complete for the purposes of this section. The NOFA
Application is comprised of the following documents:
A. Demolition Application
In order for a demolition application to be complete the PHA must
address each of the requirements identified below in II. A. 1. (a-i).
Where the Processing Center or Headquarters determines that more
information is needed to clarify the submission with respect to one or
more part 970 requirements, the PHA will be required to submit
supplementary documentation. The PHA may be requested to provide this
supplementary information at any time in the review process. However,
where the PHA has failed to address a requirement under part 970 the
application will be determined to be incomplete and will not be
processed further in connection with this NOFA.
1. If a demolition application has not been previously submitted,
the PHA shall submit a demolition application in accordance with 24 CFR
part 970. In order for a demolition application to be complete it shall
include the following:
a. A description of the property involved (Sec. 970.8(a));
b. A description of, as well as a timetable for, the specific
action proposed (Sec. 970.8(b));
c. A statement justifying the proposed demolition based on 24 CFR
970.6:
(a) ``In the case of demolition of all or a portion of a project,
the project, or portion of the project, is obsolete as to physical
condition, location, or other factors, making it unusable for housing
purposes and no reasonable program of modifications, is feasible to
return the project or portion of the project to useful life.''
(Sec. 970.6(a))
(b) ``In the case of demolition of only a portion of a project, the
demolition will help to assure the useful life of the remaining portion
of the project (e.g., to reduce project density to permit better access
by emergency, fire, or rescue services).'' (Sec. 970.6(b))
d. If applicable, a plan for the relocation of residents who would
be displaced by the proposed demolition (Sec. 970.5). The relocation
plan must at least indicate:
(1) The number of residents to be displaced;
(2) What counseling and advisory services the PHA plans to provide;
(3) What housing resources are expected to be available to provide
housing for those displaced residents;
(4) An estimate of the cost of advisory services and resident
moving expenses and the expected source for payment of these costs; and
(5) The minimum official notice that the PHA will give residents
before they are required to move (Sec. 970.8(d)).
e. The application must be developed in consultation with residents
and any resident organizations at the development, as well as any PHA-
wide organizations. Copies of resident comments and the PHA's
evaluation of those comments must be submitted. (Secs. 970.4(a) and
970.8(e))
f. Evidence of compliance with the requirement for offering of the
property to any resident organizations at the development for purchase,
as required in Sec. 970.13, or documentation that the application fits
one of the exceptions.1 Evidence must be submitted as to the
residents' response to the offer or that the time for response has
expired. (Sec. 970.13)
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\1\ At a minimum the PHA's demolition application submitted to
HUD must include a signed and dated copy of the letter of offer to
the resident organization at the affected development or where no
resident organization exists, a copy of the notification of a
meeting with residents for the purpose of assisting the residents to
organize and a certification that the notification has been issued.
As required by the regulation, the PHA must complete this
requirement for the demolition application to be approved.
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g. A relocation certification regarding relocation of residents, in
accordance with Sec. 970.5(h)(1); (See Sec. 970.8(h).)
h. Estimated balance of development debt, under the Annual
Contributions Contract (ACC), for development and modernization debt;
2 (Sec. 970.8(k)) and
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\2\ Where the HA does not have information on the debt, the
Processing Center will contact the Office of Finance and Accounting
to determine the debt.
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i. A signed and dated resolution by the Board of Commissioners
approving the demolition application. (970.8(n))
2. If a demolition application has been submitted to HUD previously
but not yet been approved, the PHA shall submit a copy of its letter
transmitting the application to HUD.
3. If a demolition/disposition application has been submitted and
approved by HUD, the PHA shall submit a copy of HUD's signed and dated
approval letter.
B. Narrative Statements, in an original and two copies, addressing
each of the program threshold criteria and the rating factors in
Sections III and IV of this NOFA.
C. An Implementation Schedule, showing the start and completion
dates of the proposed demolition by phases if any.
D. Budget Form HUD-52825-A, HOPE VI Budget, Parts I and II, in an
original and two copies.
E. Required HUD Certifications
Copies of the required certifications are contained in the Fiscal
Year (FY) 1997 HOPE VI Application Kit which will be mailed to each
PHA.
1. SF-424, Application for Federal Assistance. This form must be
signed by the Executive Director of the PHA.
2. A letter from the Chief Executive. A letter from the Chief
Executive of the applicable jurisdiction in support of the application.
3. Compliance with the Consolidated Plan. A certification by the
public official responsible for submitting the Consolidated Plan under
24 CFR part 91 that the proposed activities are consistent with the
approved Consolidated Plan of the State or unit of general local
government within which the development is located.
4. Form HUD-52820-A, PHA Board Resolution for Submission of HOPE VI
Application.
5. Form HUD-50070, Certification for a Drug-Free Workplace, in an
original only.
6. Form HUD-50071, Certification for Contracts, Grants, Loans and
Cooperative Agreements, in an original only, required of PHAs applying
for grants exceeding $100,000.
7. Form SF-LLL, Disclosure of Lobbying Activities, in an original
only, required where any funds, other than
[[Page 30404]]
federally appropriated funds, will be or have been used to influence
Federal workers, Members of Congress and their staff regarding specific
grants or contracts. The PHA determines if the submission of the SF-LLL
is applicable.
8. Form HUD 2880, Recipient Disclosure/Update Report, in an
original only.
III. Program Threshold Criteria
This section identifies criteria which must be satisfied by each
application in order for it to be rated and ranked. HUD will determine
whether each criterion has been satisfied, based on the information
submitted in accordance with the specific requirements of Sections II,
III and IV of this NOFA and available program reports (e.g., LOCCS
Quarterly Reports, FHEO Records). Only complete applications will be
rated under this NOFA.
There are four program threshold criteria as follows:
A. Completeness of the Application
For an application to be complete, the PHA must address each
requirement identified in Section II. With reference to the demolition
portion of the application, the demolition application must be complete
in terms of addressing each of the regulatory requirements found in
Section II A.1. a-i of this NOFA. The demolition application does not
have to be approved prior to rating or funding decisions.
B. Progress in Obligation of Modernization Funds
Based on the 12/30/1996 Quarterly Letter of Credit Control System
(LOCCS) Report, at least 90 percent of modernization (i.e.,
Comprehensive Improvement Assistance Program or Comprehensive Grant
Program) funds approved for Fiscal Year 1994 and prior years have been
obligated.
C. Need for Demolition Funding
The PHA must demonstrate through written documentation that
without HUD funds the demolition of this development or portion of the
development could not take place. A Comprehensive Grant Program (CGP)
participant must provide a copy of its 1997 Annual Statement. Using the
Annual Statement, the PHA must demonstrate that either (a) 50 percent
or more of its CGP funds for one year will be used to fund emergency
needs, or (b) 50 percent or more of its CGP funds are needed for a
combination of emergency needs, and critical needs 3. The
CGP PHA must provide an itemized list of emergency and/or critical
needs, the individual and total cost of these work items accompanied by
either a municipal order or a narrative demonstrating the gravity of
the critical needs in order to address the threshold requirement.
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\3\ Critical needs are defined as modernization needs at the PHA
that are a threat to health and safety of residents but that do not
qualify technically as an emergency since there is no immediate
threat to tenant health or safety. Examples of critical needs
include the repair of roofs and plumbing in cases where failure to
repair the problem would result in a significant increase in the
expenditure of funds in the future.
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A non-CGP PHA must demonstrate that it does not have adequate
reserves to perform the demolition and maintain a reasonable operating
reserve. The PHA must enumerate its capital reserves and then describe
the amount of its capital reserves that it anticipates will be used for
emergency and/or critical needs in FY 1997. Such a PHA must provide the
specific dollar amount of the capital reserves, an itemized list of the
emergency and/or critical needs work items, and the individual and
total cost of these work items accompanied by a narrative demonstrating
the gravity of the critical needs that it is going to use its funds to
correct.
D. Civil Rights Compliance
The Department will use the following standards to assess
compliance with civil rights laws at the threshold review. In making
this assessment, the Department shall review appropriate records
maintained by the Office of Fair Housing and Equal Opportunity, e.g.,
records of monitoring, audit, or compliance review findings, complaint
determinations, compliance agreements, etc. If the review reveals the
existence of any of the following, the application will be rejected.
(1) There is a pending civil rights suit against the sponsor
instituted by the Department of Justice.
(2) There is an outstanding finding of noncompliance with civil
rights statutes, Executive Orders or regulations as a result of formal
administrative proceedings, unless the applicant is operating under a
HUD-approved compliance agreement designed to correct the area of
noncompliance, or is currently negotiating such an agreement with the
Department.
(3) There is an unresolved Secretarial charge of discrimination
issued under Section 810(g) of the Fair Housing Act, as implemented by
24 CFR 103.400.
(4) There has been an adjudication of a civil rights violation in a
civil action brought against it by a private individual, unless the
applicant is operating in compliance with a court order designed to
correct the area of noncompliance, or the applicant has discharged any
responsibility arising from such litigation.
IV. Rating Factors. Maximum [100 Points]
A. Extent of PHA Need for Funding for the Demolition [50 points]
The PHA will be rated on the extent to which funds are needed to
demolish the targeted development. Using the threshold data for need
described in III.C. and materials presented to address this factor, HUD
will rate the extent of need for funding for the proposed demolition.
There are two 25 point elements that comprise this factor, as
follows:
Element 1
CGP PHAs and non-CGP PHAs will be rated depending on the amount of
CGP funds or capital reserves remaining after taking into consideration
grant funds used for emergency and/or critical needs. A CGP PHA must
provide a comparison of the total cost of demolition of the targeted
development with the amount remaining in the FY 1997 annual
comprehensive grant award after funding emergency and/or critical needs
for FY 1997. Notwithstanding the PHA's annual statement, the Department
expects a PHA to expend any dollars remaining in the CGP grant after it
funds any emergency and/or critical needs to partially or fully fund
the proposed demolition.
A CIAP PHA is to use the amount of funds in its capital reserves at
the time of the HOPE VI application as the basis of the computation for
this element. That is, a CIAP PHA is to compare the total cost of
demolition of the targeted development with the amount remaining in the
capital reserves after funding emergency and/or critical needs for FY
1997.
PHAs that cannot fund the demolition with the remaining CGP funds
or capital reserves or those who could only fund a small percent (i.e.,
0 percent to 25 percent) of the demolition with the remaining CGP award
or capital reserves will receive between 16-25 points.
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Percent of proposed demolition cost able to be funded with Points
CGP or capital reserves awarded
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76-100....................................................... 0-5
51-75........................................................ 6--10
26-50........................................................ 11-15
25-0......................................................... 16-25
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Element 2
CGP PHAs will be rated on the number of years it will take to fund
the
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total physical needs of the PHA. PHAs that participate in the CIAP will
automatically receive the maximum score of 25 points for this element.
Comprehensive Grant PHAs will be rated on the number of years that it
will take to fully fund the total physical needs, as identified in the
Physical Needs Assessment (PNA) approved by HUD. The CGP PHA must
provide the total cost of the PNA (minus any grant awards funded since
the date of the PNA) divided by the dollar amount of the FY 1997 CGP
grant. The resulting figure is the number of years to fully fund the
PHA's physical needs. For example, if the physical needs of the PHA
will take 15-years to fund given the PHA's FY 1997 grant, then the PHA
is eligible to receive 25 points.
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Points
Number of years to complete the physical needs assessment awarded
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0............................................................ 0
1-4.......................................................... 6
5-9.......................................................... 12
10-14........................................................ 18
15 or more................................................... 25
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PHAs that participate in the CIAP will automatically receive the
maximum score of 25 points for this element.
The total points for this factor can be determined by combining the
score from element 1 with the score from element 2.
B. Extent of Impact of Demolition of Building on PHA and Surrounding
Neighborhood [20 points]
1. The PHA must have described the extent to which the demolition
of the development or portion of the development will have a
significant impact on the remainder of the development and/or the PHA
as it relates to such factors as the financial situation of the PHA,
the elimination of long term vacancies, fire safety, resident and
neighborhood security, as well as any other health and safety factors
the change will bring about.
2. The degree to which the demolition of the development or portion
of the development will eliminate serious conditions or problems in the
surrounding neighborhood, e.g., buildings that are a health hazard, an
imminent threat to health and safety, a notorious security or safety
problem, or an extremely negative impact on the surrounding area.
Each PHA must have submitted a narrative description to address
this factor. The assignment of points is described in the following
chart. The PHA must have developed a strong narrative to describe the
problems caused by the development and provide any available
documentation of problems such as a copy of a condemnation order, fire
department citations of violations, other code enforcement violations,
etc.
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Degree of significance and quantity of
Points awarded problems resolved by demolition as
described by the PHA in its narrative
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9 to 10......................... The demolition will resolve a
significant number of serious
problems, including health and safety
problems that have a significant
impact on the surrounding
neighborhood.
6 to 8.......................... The demolition will resolve a moderate
number of important health and safety
problems and have significant impact
on surrounding neighborhood.
0 to 5.......................... The demolition will resolve a few
problems of lesser importance and
have little impact on the surrounding
neighborhood.
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C. Extent of PHA's Actions to Affirmatively Further Fair Housing [10
points]
In addressing the affirmatively furthering fair housing rating
factor, actions that the PHA has taken, or plans to take, to accomplish
this objective may include, but are not limited to the following:
1. Actions that contribute to the provision of fair housing choice
to residents displaced as a result of demolition or disposition. These
actions may also include programs or activities that provide
information on housing opportunities outside of minority concentrated
areas within the PHA's jurisdictional boundaries, or efforts that
encourage landlords/owners to make available to displacees housing
opportunities outside of minority concentrated areas. For example, the
PHA may refer applicants to other available housing as part of an
established housing counseling service or assist applicants in getting
on other waiting lists.
2. Actions that overcome the consequence of prior discriminatory
practices or usage which may have tended to exclude persons of a
particular race, color, religion, sex, family status and national
origin; or that overcome the effects of past discrimination against
persons with disabilities. Such actions may include those actions taken
without any kind of legally binding order, but which have changed
previous discriminatory management, resident selection and assignment
or maintenance practices.
The PHA must have submitted a narrative description in response to
C. 1. and 2.
D. Extent of PHA's Capability and Readiness to Perform the Demolition
[10 points]
Based on the latest HUD records (including the PHA's PHMAP
modernization score) the PHA will be scored on the extent of the PHA's
ability to begin immediately after approval and to effectively carry
out the proposed demolition (e.g., the PHA has a request for proposal
(RFP) prepared and ready to issue).
This criteria is divided into two factors--capability which has a
maximum of 8 points and readiness to perform the demolition which has a
maximum of 2 points.
HUD will consider the extent to which the PHA with any active
capital funding under CIAP, CGP and development programs, is on
schedule or, if behind schedule, has resolved all major issues and has
been making good progress in the last six months. The PHA's capability
will be judged by the immediate past performance in timely use of
funding for capital programs including CIAP, CGP and development. For
this criterion the capability of the PHA will be measured by the
timeliness of fund obligation from the modernization PHMAP score, as
follows:
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Maximum points Capability
------------------------------------------------------------------------
8............................... Latest modernization PHMAP score of A.
6............................... Latest Modernization PHMAP score of B.
4............................... Latest Modernization PHMAP score of C.
2............................... Latest Modernization PHMAP score of D.
------------------------------------------------------------------------
The readiness of the PHA will be determined by whether the PHA has
a draft RFP that is in compliance with Sec. 85.36 for the demolition
contract prepared at the time of its response to this NOFA. The PHA
must have included in its application a copy of the draft RFP to
document its contention. A PHA with a draft RFP will receive the
maximum score for this element, 2 points. A PHA without a draft RFP
will receive 0 points. The PHA's score on readiness is to be combined
with its score on modernization capability to give the total score on
the rating factor.
E. Degree of Local Government Support [10 points]
The Secretary's Representative shall award up to 10 points for the
degree of
[[Page 30406]]
local government support of the proposed demolition as demonstrated
through either funding or in-kind-contributions of services to the PHA,
over and above what is required under the Cooperation Agreement for
municipal services, (e.g., building and staffing of a police or fire
substation, refuse collection, locating job training, child care or
health services near or within the PHA). In the event that a
Representative does not score this factor for any application during
the time allotted for the first stage of the review process, the
program office will read and score the Degree of Local Government
Support factor.
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Maximum
NOFA rating factors points
------------------------------------------------------------------------
Extent of need for demolition funding........................ 50
Extent of effect of demolition of building or portion of
building on PHA and community............................... 20
Extent of PHA actions to affirmatively furthering fair
housing..................................................... 10
Extent of PHA's capability and readiness..................... 10
Degree of local government support........................... 10
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Total maximum points..................................... 100
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V. Application Processing
A. Corrections to Deficient Applications
To be eligible for processing, the original HOPE VI Demolition
Application including the demolition application, where applicable,
must be physically received by HUD Headquarters by the time and date
specified in this NOFA. Where a demolition application is submitted
with the HOPE VI Demolition application, it must be complete in
accordance with Section II (a)(1) of this NOFA. HUD will immediately
perform a review to determine whether an application is complete. A
PHA's HOPE VI Demolition application will not be disqualified for
rating simply because the demolition application is not approvable at
the time it is submitted to the Headquarters address shown elsewhere in
this NOFA.
1. If any of the items listed in Section II A, B, C, and D of this
NOFA are missing, the PHA's HOPE VI NOFA Demolition Application will be
considered substantially incomplete and, therefore, ineligible for
further processing.
2. If any of the items listed in Section II E (1-8) are required
but missing or there is a technical mistake on any document, such as an
incorrect signatory, or a document is missing any other information
that does not affect evaluation of the HOPE VI or demolition
applications, HUD will immediately notify the PHA in writing by
facsimile (fax) that the PHA has 14 calendar days from the date of
HUD's written notification to submit or correct any of the specified
items. The PHA will have no opportunity to correct deficiencies other
than those identified in HUD's written notification, or otherwise to
supplement or revise its NOFA Application. If any of the items
identified in HUD's written notification are not corrected and
submitted within the required time period, the NOFA Application will be
ineligible for further consideration.
B. Rating and Ranking
Awards under this NOFA will be made through a selection process
that will award grants to the highest ranked applications based upon
points as provided in Section IV. The Field Office Public Housing
Director and staff, Field Office FHEO Director and staff and the
Secretary's Representative together with Headquarters staff will
participate in the rating and ranking.
HUD will preliminarily review, rate and rank each eligible
application on the basis of the factors set forth in Sections III and
IV. A final review panel will then review the scores of all
applications whose preliminary score is above a base score established
by HUD, using the same evaluation factors set forth in Section IV. HUD
intends to set the base score so that applications requesting a total
of approximately $60 million are advanced to the final review stage.
The review panel will assess each of the applications advanced to
final review and will assign the final scores. HUD will select for
funding the most highly rated applications in rank order up to $30
million, the amount of available funding.
The Field Office of Public Housing shall forward a list of all PHAs
to be rated to the Secretary's Representative for scoring the rating
factor related to local government support. Within an established time
frame, the Field Office of Public Housing shall provide the Secretary's
Representative with the portion of each HA's narrative statement,
included in the HOPE VI application, related to the technical review
factor on local government support.
In addition, the Field Office of Public Housing shall forward a
list of all applications to the Field Office of FHEO to review for the
program threshold criteria. Once the assessment of each applicant on
the threshold criteria has been completed, the list of all applications
to be rated will then be forwarded to the Field Office of FHEO for
scoring the rating factor related to affirmatively furthering fair
housing. Within an established time frame the Field Office of Public
Housing shall provide the Office of FHEO with the portion of each PHA's
narrative statement, included in the HOPE VI application, related to
the threshold factor and rating factor on affirmatively furthering fair
housing.
C. Program Threshold Factors
A demolition application must be found approvable in accordance
with CFR part 970 before HUD will obligate funds to an applicant
selected for funding.
D. Litigation
In accordance with the provisions of the Departments of Veterans
Affairs and Housing and Urban Development-Independent Agencies
Appropriations Act, 1997, Public Law 104-204, no appropriated funds
shall be used directly or indirectly for the purpose of granting a
competitive advantage in awards to settle litigation or pay judgments
in court cases affecting applicants for this program. The Department
will not, when reviewing applications under this NOFA, award extra
points, for example, to any PHA involved in a consent decree mandating
desegregation of the PHA's public housing.
E. Reduction in Requested Grant Amount
HUD may select an application for funding in an amount lower than
the amount requested by the PHA, or adjust line items in the proposed
grant budget within the amount requested (or both). The Department will
adjust for any costs which are determined to be unreasonable or
inadequately justified.
F. Environmental Review
The Field Office will review the environmental impact of the
demolition activities proposed by the PHA in accordance with 24 CFR
part 50. The PHA shall provide any documentation to the Field Office
that is needed to carry out its review under the National Environmental
Policy Act (NEPA) and related environmental laws, orders and
regulations.
G. Notification of Funding Decisions
HUD will not notify PHAs as to whether they have been selected to
participate until the announcement of the selection of all recipients
under this NOFA. HUD will provide written notification to PHAs that
were selected
[[Page 30407]]
for funding and to those that were not selected.
H. Annual Contributions Contract (ACC) Amendment
After HUD selects a PHA for funding under this NOFA, HUD and the
PHA shall enter into an ACC Amendment, setting forth the amount of the
grant and applicable rules, terms, and conditions, including sanctions
for violation of the amendment. Among other things, the amendment will
require the PHA to agree to the following:
1. To carry out the program in accordance with the provisions of
this NOFA, applicable law, the approved NOFA Application and Demolition
Application, and all other applicable requirements;
2. To comply with such other terms and conditions, including
recordkeeping and reports, as HUD may establish for the purposes of
administering, monitoring, and evaluating the program in an effective
and efficient manner;
3. That HUD may withhold, withdraw, or recapture any portion of a
grant, terminate the ACC Amendment, or take other appropriate action
authorized by the 1997 Appropriations Act or under the ACC Amendment if
HUD determines that the PHA is failing to carry out the approved
demolition in accordance with the application as approved and this
NOFA.
I. Failure To Proceed Expeditiously
An applicant may be selected for funding for HOPE VI demolition in
advance of the approval of its demolition application. However, the
demolition application must be approved within three (3) months of the
fund reservation or the funds will be withdrawn, unless HUD grants an
extension to this deadline. In the event that an applicant selected to
receive HOPE VI funding does not proceed in a manner consistent with
its application, HUD may withdraw any unobligated balances of funding
and make this funding available subject to applicable law, in HUD's
discretion, to the next highest-ranked applicant that was not selected
for funding in the most recently conducted HOPE VI selection process or
combined with funding under an upcoming competitive selection process.
Failure to proceed with respect to obligated funds will be governed by
the terms of the Grant Agreement or ACC Amendment, as applicable. In
selecting PHAs for the redistribution of funds to one or more other
eligible PHAs, HUD will select a PHA from the most recently conducted
selection process for demolition funding.
VI. Applicability of Other Federal Requirements
A. Fair Housing Requirements
PHAs shall comply with the requirements of the Fair Housing Act (42
U.S.C. 3601-19) and the regulations in 24 CFR part 100; Executive Order
11063 (Equal Opportunity in Housing) and the regulations in 24 CFR part
107; the fair housing poster regulations in 24 CFR part 110; and Title
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and the
regulations in 24 CFR part 1.
B. Nondiscrimination on the Basis of Age or Handicap
PHAs shall comply with the prohibitions against discrimination on
the basis of age pursuant to the Age Discrimination Act of 1975 (42
U.S.C. 6101-07) and the regulations in 24 CFR part 146; the
prohibitions against discrimination against, and reasonable
modification, accommodation, and accessibility requirements for,
handicapped individuals under section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794) and the regulations in 24 CFR part 8; the
Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and
regulations issued pursuant thereto (28 CFR part 36); and the
Architectural Barriers Act of 1968 (42 U.S.C. 4151) and the regulations
in 24 CFR part 40.
C. Employment Opportunities
PHAs shall comply with the requirements of section 3 of the Housing
and Urban Development Act of 1968 (12 U.S.C. 1701u) (Employment
Opportunities for Lower Income Persons in Connection with Assisted
Projects) and the regulations in 24 CFR part 135.
D. Minority and Women's Business Enterprises
The requirements of Executive Orders 11246, 11625, 12432, and 12138
apply to this funding. Consistent with HUD's responsibilities under
these orders, PHAs shall make efforts to encourage the use of minority
and women's business enterprises in connection with funded activities.
E. OMB Circulars
The policies, guidelines, and requirements of OMB Circular Nos. A-
87 (Cost Principles Applicable to Grants, Contracts and Other
Agreements with State and Local Governments) and 24 CFR part 85
(Administrative Requirements for Grants and Cooperative Agreements to
State, Local, and Federally Recognized Indian Tribal Governments),
apply to the award, acceptance, and use of assistance under this NOFA
by PHAs, and to the remedies for noncompliance, except when
inconsistent with the provisions of the 1997 Appropriations Act, other
Federal statutes, or this NOFA. PHAs also are subject to the audit
requirements of OMB Circular A-128, implemented at 24 CFR part 44.
Copies of OMB Circulars may be obtained from E.O.P. Publications, Room
2200, New Executive Office Building, Washington, DC 20503, telephone
(202) 395-7332 (this is not a toll-free number). There is a limit of
two free copies.
F. Debarred or Suspended Contractors
The provisions of 24 CFR part 24 apply to the employment,
engagement of services, awarding of contracts, subgrants, or funding of
any recipients, or contractors or subcontractors, during any period of
debarment, suspension, or placement in ineligibility status.
G. Conflict of Interest
In addition to the conflict of interest requirements in 24 CFR part
85, no person who is an employee, agent, consultant, officer, or
elected or appointed official of the PHA and who exercises or has
exercised any functions or responsibilities with respect to activities
assisted under this grant, or who is in a position to participate in a
decision making process or gain inside information with regard to such
activities, may obtain a financial interest or benefit from the
activity, or have an interest in any contract, subcontract, or
agreement with respect thereto, or the proceeds thereunder, either for
himself or herself or for those with whom he or she has family or
business ties, during his or her tenure or for one year thereafter.
H. Wage Rates
Davis-Bacon wage rates apply to demolition followed by construction
on the site. HUD-determined wage rates apply to demolition followed
only by filling in the site and establishing a lawn.
I. Lead-Based Paint Testing and Abatement
PHAs shall comply with the Lead-Based Paint Poisoning Prevention
Act (42 U.S.C. 4821, et seq.) and 24 CFR part 35; 24 CFR part 965,
subpart H; and 24 CFR 968.110(k). Tenant-based assistance provided to
PHAs under this program will be subject to 24 CFR 982.401 and 24 CFR
part 35. Unless otherwise provided, PHAs shall be responsible for
testing and abatement activities before demolition as appropriate to
meet state and Federal requirements.
[[Page 30408]]
J. Relocation
The requirements of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 and government-wide
implementing regulations at 49 CFR part 24 apply to funding under this
NOFA.
VII. Other Matters
A. Paperwork Reduction Act
The information collection requirements of this NOFA related to the
HOPE VI program (including Forms HUD-52825-A and HUD-52820-A required
by Sections K.1.a and M.3 of the NOFA) have been submitted to the
Office of Management and Budget (OMB) for review under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control number,
when assigned, will be announced by separate notice in the Federal
Register. The information collection requirements of this NOFA related
to the demolition approval have been approved by OMB and assigned
approval number 2577-0075, which expires on March 31, 1998. An agency
may not conduct or sponsor, and a person is not required to respond to,
a collection of information unless the collection displays a valid
control number.
B. Environmental Impact
This NOFA provides funding under, and does not alter the
environmental provisions of, regulations in 24 CFR part 970, which have
been published previously in the Federal Register. Accordingly, under
24 CFR 50.19(c)(5), this NOFA is categorically excluded from
environmental review under the National Environmental Policy Act of
1969 (42 U.S.C. 4321). The environmental review provisions of 24 CFR
part 970 are found in Sec. 970.4.
C. Federalism Impact
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 or their political
subdivisions, or the relationship between the Federal Government and
the States, or on the distribution of power and responsibilities among
the various levels of government. As a result, the NOFA is not subject
to review under the Order.
D. Accountability in the Provision of HUD Assistance
Section 102 of the Department of Housing and Urban Development
Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24
CFR part 4, subpart A, contain a number of provisions that are designed
to ensure greater accountability and integrity in the provision of
certain types of assistance administered by HUD. On January 14, 1992,
HUD published, at 57 FR 1942, a notice that also provides information
on the implementation of section 102. The documentation, public access,
and disclosure requirements of section 102 are applicable to assistance
awarded under this NOFA as follows:
1. Documentation and Public Access
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.
2. Disclosures
HUD will make available to the public for five years all applicant
disclosure reports (Form HUD-2880) submitted in connection with this
NOFA. Update reports (also Form HUD-2880) will be made available along
with the applicant disclosure reports, but in no case for a period 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.
E. Prohibition Against Advance Information on Funding Decisions
HUD's regulation implementing section 103 of the Department of
Housing and Urban Development Reform Act of 1989, codified as 24 CFR
part 4, 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
limited by 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 under 24 CFR
part 4.
Applicants or employees who have ethics-related questions should
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions,
such as whether particular subject matter can be discussed with persons
outside HUD, the employee should contact the appropriate Field Counsel
or Headquarters Counsel for the program to which the question pertains.
F. 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 in 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.
If the amount applied for is greater than $100,000, the
certification is required at the time of application for funds is made
that federally appropriated funds are not being or have not been used
in violation of the Byrd Amendment. If the amount applied for is
greater than $100,000 and the PHA has made or has agreed to make any
payment using nonappropriated funds for lobbying activity, as described
in 24 CFR part 87 (Byrd Amendment), the submission also must include
the SF-LLL, Disclosure of Lobbying Activities. The PHA determines if
the submission of the SF-LLL is applicable.
G. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance program number is
14.864.
[[Page 30409]]
Dated: May 22, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-14384 Filed 6-2-97; 8:45 am]
BILLING CODE 4210-33-P
