[Federal Register Volume 63, Number 135 (Wednesday, July 15, 1998)]
[Notices]
[Pages 38252-38275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18932]
[[Page 38251]]
_______________________________________________________________________
Part VI
Department of Housing and Urban Development
_______________________________________________________________________
Funding Availability for the HUD Colonias Initiative (HCI), Fiscal Year
1998; Notice
Federal Register / Vol. 63, No. 135 / Wednesday, July 15, 1998 /
Notices
[[Page 38252]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4380-N-01]
Notice of Funding Availability for the HUD Colonias Initiative
(HCI), Fiscal Year 1998
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice of funding availability (NOFA).
-----------------------------------------------------------------------
SUMMARY: This NOFA announces the availability of $5 million for
assistance to organizations serving colonia residents. Of this amount,
up to $4 million will be provided to carry out development projects in
colonias. One grant of $1 million may be provided to one or more
private intermediary organization(s) (for profit and nonprofit) that
would provide capacity-building loans, grants, or technical assistance
to local nonprofit organizations serving colonias residents. This
document sets forth the application instructions for the development
grants and capacity-building grants made available under the NOFA. As
indicated in the body of this NOFA, applicants may use either of two
definitions for the term ``rural county.''
APPLICATION DUE DATES: Completed applications (one original and two
copies) must be submitted no later than 12:00 midnight, Eastern time,
on August 14, 1998, to the address shown below. The above-stated
application deadline is firm as to date and hour. In the interest of
fairness to all applicants, HUD will treat as ineligible for
consideration any application that is not received before the
application deadline. Applicants should submit their materials as early
as possible to avoid any risk of loss of eligibility because of
unanticipated delays or other delivery-related problems. HUD will not
accept, at any time during the NOFA competition, application materials
sent by facsimile (FAX) transmission.
ADDRESSES AND APPLICATION SUBMISSION PROCEDURES: Addresses: Completed
applications (one original and two copies) must be submitted to:
Department of Housing and Urban Development, 451 Seventh Street, SW,
Room 7184, Washington, DC 20410; ATTN: HUD Colonias Initiative.
Applications Procedures. Mailed Applications. Applications will be
considered timely filed if postmarked on or before 12:00 midnight on
the application due date and received at the address above on or within
five (5) days of the application due date.
Applications Sent by Overnight/Express Mail Delivery. Applications
sent by overnight delivery or express mail will be considered timely
filed if received before or on the application due date, or upon
submission of documentary evidence that they were placed in transit
with the overnight delivery service by no later than the specified
application due date.
Hand Carried Applications. Hand carried applications delivered
before and on the application due date must be brought to the specified
location and room number between the hours of 8:45 am to 5:15 pm,
Eastern time. Applications hand carried on the application due date
will be accepted in the South Lobby of the HUD Headquarters Building at
the above address from 5:15 pm until 12:00 midnight, Eastern time.
FOR APPLICATION KITS, FURTHER INFORMATION, AND TECHNICAL ASSISTANCE:
All information and materials required to submit an application for
funding under the HUD Colonias Initiative are included in the appendix
to this notice. For information concerning the HUD Colonias Initiative,
and technical assistance, contact Yvette Aidara, Office of Block Grant
Assistance, Department of Housing and Urban Development, 451 7th
Street, SW, Room 7184, Washington, DC 20410; telephone (202) 708-1322
(this is not a toll-free number). Persons with speech or hearing
impairments may access this number via TTY by calling the toll-free
Federal Information Relay Service at 1-800-877-8339.
All program documents referred to in this NOFA are accessible
through HUD's web site at http://www.hud.gov.
SUPPLEMENTAL INFORMATION:
I. Authority; Definitions; Background; Purpose; Amount Allocated;
Eligibility
(A) Authority
Title II of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1998
(Pub.L. 105-65, 111 Stat. 1357, approved October 27, 1997) (FY 1998 HUD
Appropriations Act).
(B) Definitions
Capacity-building is the transferring of skills and knowledge in
planning, developing and administering activities funded under this
NOFA. For purposes of this NOFA, capacity-building may include
provision of loans and grants as well as training and technical
assistance activities.
Colonia means any identifiable community that:
(a) Is located in the State of Arizona, California, New Mexico, or
Texas;
(b) Is located in the U.S.-Mexico border region (that is, within
150 miles of the border between the U.S. and Mexico); and
(c) Meets objective criteria, including lack of potable water
supply, lack of adequate sewage systems, and lack of decent, safe,
sanitary, and accessible housing.
Although section 916(e)(4) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 5306(e)(4)) included the notation
that a colonia must have been in existence and generally recognized as
such prior to its enactment, HUD recognizes that additional
identifiable colonias have come into existence, in the near-decade
since the enactment, and are in need of assistance to the same extent
as older colonias. These newer colonias are eligible for assistance
under this NOFA. Rural County may be defined in either of two ways:
(a) Bureau of the Census Definition. A rural county is a place
having fewer than 2,500 inhabitants (within or outside of metropolitan
areas).
(b) Department of Agriculture's Beale Code Definition. A rural
county is a county with no urban population (i.e., city) of 20,000
inhabitants or more.
Visitability means at least one entrance at grade (no steps),
approached by an accessible route such as a sidewalk; the entrance door
and all interior passage doors provide a minimum 2 feet 10 inches (34-
inch) clear opening. Allowing use of 2'10'' doors is consistent with
the Fair Housing Act (at least for the interior doors), and may be more
acceptable than requiring the 3 foot doors that are required in fully
accessible areas under the Uniform Federal Accessibility Standards for
a small percentage of units.
(C) Background
(1) Colonias eligible for assistance under this NOFA are any of the
severely distressed, rural, unplanned, predominantly unincorporated
settlements located along the 2,000 mile United States-Mexico border.
Due to a lack of affordable housing in this area, many colonias came
into existence as a result of developers selling unimproved lots, to
buyers with extremely limited means, under high-interest bearing
contracts for deed (i.e., the developers retain title to the land until
the debt is fully paid). Due to the nature of land contract sales,
buyers typically could not secure mortgage-secured loans to build
standard housing. As a consequence, they often constructed
[[Page 38253]]
whatever limited dwellings or shelters they could afford. Thus, most
colonias developed without regard to local zoning or other laws or
covenants, adequate roads and drainage, and non-existent water and/or
sewer facilities. The majority of housing in colonias is sub-standard
and not in accordance with building codes.
(2) One response to these needs was passage of Section 916 of the
Cranston-Gonzalez National Affordable Housing Act which required the
States of Arizona, California, New Mexico, and Texas to set aside ten
percent of their Fiscal Year 1991 State Community Development Block
Grant allocations to assist colonias. Subsequent years required
colonias to be assisted at up to ten percent (California has been
funded at two percent), as determined by HUD to be appropriate. Texas,
with the largest population of colonia residents, accounts for
approximately two-thirds of the set-aside in any given year.
(3) Due to the limited State CDBG colonias set-asides in relation
to the overwhelming needs, funding has generally been given to
infrastructure activities, with special consideration to water and
sewer services. The provision of housing has not been a primary focus
of the limited CDBG funds available to colonias. This current
initiative, in an effort to address the continuing need for decent,
safe, sanitary, and accessible housing for colonias residents, is
designed to encourage the production of decent, safe, sanitary, and
accessible affordable housing for colonia residents.
(D) Purpose
The FY 1998 HUD Appropriations Act provided $25 million to test
comprehensive approaches to developing a job base through economic
development, developing affordable low- and moderate-income rental and
homeownership housing, and increasing the investment of both private
and nonprofit capital in rural and tribal areas of the US. Of that
amount, $5 million has been targeted for this initiative to support
assistance to organizations administering projects to address the
housing needs of colonia residents in rural areas. HUD anticipates
making grants totaling $4 to 5 million to address housing needs in the
four border States where colonias are found (California, Arizona, New
Mexico, and Texas). Of the $5 million, $1 million may be provided to
one or more private intermediary organization(s) (for profit and
nonprofit) that would provide capacity-building loans, grants, or
technical assistance to local nonprofit organizations serving colonia
residents. The intermediary organization would demonstrate experience
in providing technical assistance in housing development to colonias or
areas with similar economic and social conditions that exist in
colonias and the capacity to administer a program to increase the
capacity of colonia-based organizations to address local housing needs.
(E) Amounts Allocated
This NOFA makes available a total of $5 million in FY 1998 funding.
Of this amount, HUD expects to allocate a total of $4 to 5 million for
programs administered by competitively selected grantees in each of the
four colonias border states. It is expected that applicants serving
colonias residents in the State of Texas will receive a greater portion
of the funds available under this NOFA since Texas has the largest
population of colonia residents. Based on final negotiations of budgets
and project plans, the Department reserves the right to award grants of
up to $800,000 per applicant in each of the four states. The Department
also reserves the right to provide multiple grants in each state, with
multiple awards likely in Texas.
Additionally, of the total $5 million available, HUD may award up
to $1 million to one or more private organizations (for profit and
nonprofit) for the purpose of building capacity among locally-based
nonprofit organizations meeting the affordable housing needs of colonia
residents. Preference will be given to applicants with the ability to
serve the broadest area of the colonias region, and with the ability to
serve colonia residents with disabilities. Note that if there are
insufficient fundable applications for the capacity-building
competition (i.e., scoring a minimum of 70 points), HUD reserves the
right to shift the balance (including up to the full $1 million) to the
housing development category to allow full utilization of the funding
targeted for this initiative.
(F) Eligible Applicants/Recipients
Private (for profit and nonprofit) entities currently providing
assistance to and for residents of colonias, including in any of the
four colonia States (Arizona, California, New Mexico, and Texas) are
eligible to apply for funds under the development activities portion of
this NOFA to undertake activities within their respective States.
Private (for profit and nonprofit) with the ability to provide
capacity-building resources and technical assistance to locally-based
nonprofit organizations serving colonias in the four-State colonias
region are eligible to compete for the capacity-building funds. For-
profit organizations are eligible to apply for funding under this NOFA
with the stipulation that compensation be provided in accordance with
Federal procurement guidelines (i.e., payment will be on a cost
reimbursement basis without profit).
(G) Eligible Activities
(1) General. HUD Colonias Initiative (HCI) funds are to be used to
address the housing and related needs of residents of colonias. The
Department is especially interested in supporting self-help housing
construction, homeownership opportunities, and rehab of units (where
rehab is a viable alternative to new construction) for current
residents of colonias. In undertaking activities under this NOFA,
applicants must comply with applicable provisions of the Americans with
Disabilities Act and should design construction, rehabilitation or
modifications to buildings and facilities to be accessible and
visitable for persons with disabilities and others who may also
benefit, such as mothers with strollers or persons delivering
appliances. In providing technical assistance and other educational
opportunities, training and informational materials related to program
activities should be made available in languages appropriate to the
residents served or in video or audio formats. Use of intermediaries
and collaborative partnerships, to the greatest extent possible, and
leveraging of the funds provided under this NOFA to achieve the maximum
positive impact is encouraged.
(2) Primary Activities. It is expected that the majority of funding
for each proposed project will be budgeted for the following primary
housing activities that will result in decent, safe, sanitary, and
accessible affordable housing:
(a) New housing construction, including self-help, energy-efficient
and innovative housing design initiatives. Housing may be single- or
multi-family, owner- or renter-occupied;
(b) Self-help construction training for residents and prospective
owners/tenants;
(c) Homeownership assistance;
(d) Rehabilitation of existing permanent housing structures to meet
local codes;
(e) Construction of additions onto existing permanent housing
structures, such as to provide for bathroom facilities or to reduce
overcrowding, where cost-effective;
(f) Installation of water wells or septic systems for individual
permanent housing structures;
[[Page 38254]]
(g) Refinancing of existing landowner/homeowner debt to convert
contracts-for-deed into mortgages;
(h) Acquisition of land from existing owners or deed-holders, for
resale to colonias residents;
(i) Surveying and replatting of existing subdivisions;
(j) Acquisition of land, relocation payments to residents and costs
of developing new subdivisions, where existing development sites have
been determined to be legally or environmentally inappropriate for
habitation; and
(k) Tenant-based assistance.
(3) Other Related Activities to Support Housing Development.
Applicants may propose other activities (public improvements, economic
development, public services, administrative costs), that directly
support the housing activities listed above, providing such activities
do not constitute more than thirty percent (30%) of the budget in the
aggregate, and clearly support and serve the same general population as
the housing activities. Such activities may include:
(a) Construction of publicly- or privately-owned utilities needed
to serve the housing site(s) for which primary activities are funded,
such as water supply/distribution systems, sewage collection/treatment
systems, electricity or gas distribution lines;
(b) Construction of public facilities such as libraries, parks and
recreation centers, fire stations (including purchase of fire trucks
and other equipment), or community centers;
(d) Provision of financial or technical assistance to start or
expand businesses, for purposes of creating jobs or providing goods or
services for colonias residents living in or near the proposed housing
site(s);
(e) Funding microenterprise assistance programs to enable colonias
residents to start their own businesses or to expand existing
businesses;
(f) Provision of public services which are directly supportive of
the housing activities proposed, including but not limited to legal
assistance, housing counseling, classes on purchasing a home, home
maintenance and repair training, tenant services, education, health
services, recreation programs, day care, transportation services, or
costs of operating recreation centers, libraries or community centers;
and
(g) Recipient costs of administering the funding and carrying out
of activities, to the extent allowed at 24 CFR part 84, but at a rate
not to exceed 10% of the funds provided.
(4) Capacity-Building Funds. Applicants for Capacity-Building funds
(not to exceed $1 million) will provide loans, grants or technical
assistance to regionally or locally-based nonprofit organizations
working in colonias to meet housing and related needs. The nonprofit
organizations may use the assistance for:
(a) Provision of planning, training, and pre-development assistance
to existing nonprofit organizations to expand their scope of expertise,
to implement larger-scale projects, and/or enhance existing projects;
(b) Self-help assistance, including skill in fiscal management, for
colonias residents;
(c) Dissemination of capacity-building information and citizen
participation activities; and
(d) Coordination of existing resources to maximize housing or
economic opportunities funded under the provisions of this NOFA.
(H) Ineligible Activities
The following activities are not eligible for funding under this
NOFA:
(1) Acquisition, construction or rehabilitation of buildings for
the general conduct of government, such as city halls, county
courthouses, county jails, etc.;
(2) General government expenses required to carry out the regular
responsibilities of a unit of general local government;
(3) Political activities; and
(4) Provision of technical assistance to staff of award recipients.
II. Program Requirements
(A) Compliance With Fair Housing and Civil Rights Laws
All applicants must comply with all Fair Housing and civil rights
laws, statutes, regulations and executive orders as enumerated in 24
CFR Sec. 5.105(a).
(B) Additional Nondiscrimination Requirements
Applicants must also comply with the Americans with Disabilities
Act, and Title IX of the Education Amendments Act of 1972.
(C) Affirmatively Furthering Fair Housing
Recipients will have a duty to affirmatively further fair housing.
Applicants should include in their work plan the specific steps that
they will take to (1) address the elimination of impediments to fair
housing that were identified in the jurisdiction's Analysis of
Impediments (AI) to Fair Housing Choice; (2) remedy discrimination in
housing; or (3) promote fair housing rights and fair housing choice.
Further, applicants have a duty to carry out the specific activities
cited in their responses to the Factors for Award that address
affirmatively furthering fair housing.
(D) Economic Opportunities for Low and Very Low-Income Persons (Section
3)
Recipients of HUD assistance must comply with section 3 of the
Housing and Urban Development Act of 1968, 12 U.S.C. 1701u (Economic
Opportunities for Low and Very Low-Income Persons) and the HUD
regulations at 24 CFR part 135, including the reporting requirements
subpart E. Section 3 provides that recipients shall ensure that
training, employment and other economic opportunities, to the greatest
extent feasible, be directed to: (1) low and very low income persons,
particularly those who are recipients of government assistance for
housing; and (2) business concerns which provide economic opportunities
to low and very low income persons.
(E) Relocation
Any person (including individuals, partnerships, corporations or
associations) who moves from real property or moves personal property
from real property as a direct result of a written notice to acquire or
the acquisition of the real property, in whole or in part, for a HUD-
assisted activity is covered by acquisition policies and procedures and
the relocation requirements of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, as amended (URA), and
the implementing governmentwide regulation at 49 CFR part 24. Any
person who moves permanently from real property or moves personal
property from real property as a direct result of rehabilitation or
demolition for an activity undertaken with HUD assistance is covered by
the relocation requirements of the URA and the governmentwide
regulation.
(F) OMB Circulars
The policies, guidances, and requirements of OMB Circular No. A-122
(Cost Principles for Nonprofit Organizations) and 24 CFR part 84
(Grants and Agreements with Institutions of Higher Education,
Hospitals, and other Non-Profit Organizations) apply to the award,
acceptance and use of assistance under this NOFA, and to the remedies
for noncompliance, except when inconsistent with the provisions of the
FY 1998 HUD Appropriations Act, other Federal statutes or the
provisions of this NOFA. Copies of the OMB Circular may
[[Page 38255]]
be obtained from EOP Publications, Room 2200, New Executive Office
Building, Washington, DC 10503, telephone (202) 395-7332 (this is not a
toll free number).
(G) Conflicts of Interest
Consultants or experts assisting HUD in rating and ranking
applicants for funding under this NOFA are subject to 18 U.S.C. 208,
the Federal criminal conflict of interest statute, and to the Standards
of Ethical Conduct for Employees of the Executive Branch regulation
published at 5 CFR part 2635. As a result, individuals who have
assisted or plan to assist applicants with preparing applications for
this NOFA may not serve on a selection panel or as a technical advisor
to HUD for this NOFA. All individuals involved in rating and ranking
this NOFA, including experts and consultants, must avoid conflicts of
interest or the appearance of conflicts. If the selection or non-
selection of any applicant under this NOFA affects the individual's
financial interests set forth in 18 U.S.C. 208 or involves any party
with whom the individual has a covered relationship under 5 CFR
2635.502, that individual must, prior to participating in any matter
regarding this NOFA, disclose this fact to the General Counsel or the
Ethics Law Division.
(H) Eligible Populations to be Served
The HCI is designed to serve colonias in rural areas in the States
of Arizona, California, New Mexico, and Texas. See definitions of
``colonias'' and ``rural county'' above.
(I) Grant Amounts
In the event an applicant is awarded an HCI grant that has been
reduced (e.g. the application contained some activities that were
ineligible or budget information did not support the request), the
applicant will be required to modify its project plans and application
to conform to the terms of HUD's approval before execution of a grant
agreement. HUD reserves the right to reduce or de-obligate the HCI
award if approvable modifications to the proposed project are not
submitted by the awardee in the required amounts in a timely manner.
Any modifications must be within the scope of the original HCI
application. HUD reserves the right not to make awards under this NOFA.
(J) Grant Period
Recipients will have 36 months from the date of funding award to
complete all project activities except the final evaluation and
reporting, fulfillment of audit requirements and final project close-
out.
(K) Leveraging of Other Resources
(1) A key component of the HCI is the leveraging of other sources
of capital to significantly expand the scope of accomplishments to be
realized with this funding.
(2) Potential recipients must demonstrate the commitment of
additional resources to support their proposed projects. Sources of
this other funding can be other public (Federal, State or local)
agencies, private funding or internal resources. In-kind services,
``sweat equity'' and commitments of funds for activities which are
already being implemented may be counted toward the leveraging
requirements. Funding for which commitments were received prior to
publication of this NOFA may be counted, provided that the commitment
is still valid, is for the project activities proposed, and that
implementation of the activity had not yet begun. Final negotiation of
budgets and implementation schedules may be conditioned upon evidence
that leveraging requirements have been met.
(L) Negotiations
After all applications have been rated and ranked and a selection
has been made, HUD may require that awardees participate in
negotiations to determine the specific tasks and grant budget. Where a
specific area or one or more specific sites for project activities are
identified in an application or during negotiations, HUD may undertake
and complete its environmental review during negotiations. In cases
where HUD cannot successfully conclude negotiations or a selected
applicant fails to provide HUD with requested information, or if the
reduced amount of funding makes the project infeasible, awards will not
be made. In such instances, HUD will offer an award to the next highest
ranking applicant and proceed with negotiations with that next highest
ranking applicant.
(M) Adjustments to Funding
(1) HUD reserves the right to fund less than the full amount
requested in any application to ensure the purpose of the initiative is
met. HUD may not fund portions of the applications that are ineligible
for funding under applicable program statutory or regulatory
requirements, or which do not meet the requirements of this NOFA, but
may fund eligible portions of the applications.
(2) If funds remain after funding the highest ranking applications
in each State, HUD may fund part of the next highest ranking
application in the same category (i.e., development or capacity-
building). If the applicant turns down the award offer, or if the
project is not feasible at the proposed funding level, HUD will make
the same determination for the next highest ranking applications in
each category.
(N) Environmental Review
Selection for award does not constitute approval of any proposed
sites. Following selection for award, HUD will perform an environmental
review of activities proposed for assistance under this part, in
accordance with 24 CFR part 50. The results of the environmental review
may require that proposed activities be modified or that proposed sites
be rejected. Applicants are particularly cautioned not to undertake or
commit funds for acquisition or development of proposed properties
prior to HUD approval of specific properties or areas. Each application
shall contain an assurance that the applicant will assist HUD to comply
with part 50; will supply HUD with all available, relevant information
to perform an environmental review for each proposed property; will
carry out mitigating measures required by HUD or select alternate
property; and will not acquire, rehabilitate, convert, lease, repair or
construct property, nor commit HUD or local funds for these program
activities with respect to any eligible property, until HUD approval of
the property is received.
III. Application Selection Process
(A) Rating and Ranking
(1) General. To review and rate applications, HUD may establish
panels including outside experts or consultants to obtain certain
expertise and outside points of view, including views from other
Federal agencies. A total of 100 points is possible. For the capacity-
building category, a minimum score of 70 points must be achieved to be
considered for funding.
(2) Rating. All applicants for funding under this NOFA will be
evaluated against the criteria below. The rating of the ``applicant''
or the ``applicant's organization and staff'' for technical merit or
threshold compliance, unless otherwise specified, will include any sub-
contractors, consultants, sub-recipients, and members of consortia
which are firmly committed to the project.
(3) Ranking. Applicants will be ranked within each of the two set-
aside program areas: housing development activities and capacity-
building. Applicants will be ranked only against
[[Page 38256]]
others in the separate set-aside program areas. Once scores are
assigned, all applications will be ranked in order of points assigned,
with the applications receiving more points ranking above those
receiving fewer points. The highest ranking applications in each State
area will be funded; the highest ranking capacity-building application
will be funded, provided it has achieved a score of at least 70 points.
As noted above, if the highest ranking application in the capacity-
building category may be funded at an amount less than $1 million,
additional grants may be made to the extent funds and fundable
applicants remain.
(4) If HUD determines that an application rated, ranked and
fundable could be funded at a lesser HCI grant amount than requested
consistent with feasibility of the funded project or activities and the
purposes of this NOFA, HUD reserves the right to reduce the amount of
the HCI grant award and fund the next ranking application in that State
if sufficient funds remain to undertake a feasible project in the scope
of that application. Any remaining amounts may be pooled to fund the
next highest ranked application in any of the four states.
(B) Threshold Requirements
HUD will review each application to determine whether the
application meets all of the threshold criteria described for program
funding made available under this NOFA. Applications that meet the
threshold criteria will be eligible to be rated and ranked, based on
the criteria described, and the total number of points to be awarded.
The threshold criteria are:
(1) An applicant must be a private for-profit or nonprofit entity
organized according to State law where situated.
(2) If an applicant (a) has been charged with a violation of the
Fair Housing Act by the Secretary; (b) is the defendant in a Fair
Housing Act lawsuit filed by the Department of Justice; (c) has
received a letter of noncompliance findings under Title VI of the Civil
Rights Act or Section 504 of the Rehabilitation Act; or (d) has been
debarred, the applicant is not eligible to apply for funding under this
NOFA until the applicant resolves such charge, lawsuit, letter of
findings, or debarment to the satisfaction of the Department.
(C) Narrative Statement
Each applicant shall provide: (1) a narrative statement describing
the activities that will be carried out with the HCI grant funds; and
(2) an explanation of how the use of HCI grant funds meets the rating
factors identified below. The description of activities should include
a statement of how the proposed uses of HCI funds will meet the
objectives of this initiative. The application as a whole (narrative
and responses to the Factors for Award, below) shall not exceed 25
8.5'' by 11'' pages. Applicants may also submit videotapes and/or
photographs of the area or neighborhood that would be assisted by grant
funds under this NOFA. The applicant must indicate which factor(s) the
photographs and/or video tapes address.
(D) Factors for Award
All applicants will be considered for selection based on the
following factors that demonstrate the need for the proposed project or
activities, and the applicant's creativity, capacity and commitment to
provide the maximum benefit to the residents of the colonias areas
served and the extent to which the proposed project will increase the
supply of decent, safe, sanitary, and accessible affordable housing in
colonias. The maximum points awarded for the factors total 100.
Rating Factor 1: Capacity of the Applicant and Relevant
Organizational Staff (20 points).
This factor addresses the applicant's organizational experience in
administering similar types of funding, and the demonstrated capacity
to carry out the proposed activities. Applicants must demonstrate
previous relevant experience working in colonias. When responding to
this factor, the applicant should identify the number of projects
undertaken, the type of project, and the number of units of affordable
housing developed, as applicable. The response should include a
discussion of how housing units were made affordable for low-income
persons. The rating of the applicant or the applicant's organization
and staff for technical merit will include any faculty, subcontractors,
consultants, subrecipients, and members of consortia which are firmly
committed (i.e. has a written agreement or a signed letter of
understanding with the applicant agreeing in principle to its
participation and role in the project). HUD will also consider past
performance in carrying out HUD-funded or other projects, including
projects similar in size and scope to the project proposed, and the
extent to which projects encourage and incorporate collaborative and
partnership relationships in serving colonia residents.
Rating Factor 2: Need/Extent of the Problem (20 points).
This factor addresses the extent of colonia need(s) for housing,
including accessible housing, and related investments, including a
description of physical and social conditions. In applying this factor,
HUD will consider current levels of distress in the immediate community
to be served by the project. Level of distress will be indicated most
directly by data on the size and condition of the existing housing
stock, homeownership and land tenure, availability of housing finance,
and rental assistance need. Additional indicators of distress may
include: infrastructure and community facility needs, education and
employment of residents, and the need for legal or other assistance.
HUD requires that applicants use sound, reliable and verifiable data to
support the level of distress claimed in the application.
Rating Factor 3: Soundness of Approach (40 points).
This factor addresses the appropriateness and effectiveness of the
proposed activities in substantially addressing identified needs. HUD
will consider the extent to which the plan is logical, feasible, and
substantially likely to achieve its stated purpose and provides
benchmarks to measure actual increase in the number of decent, safe,
sanitary, and accessible affordable housing units. HUD's desire is to
fund projects and activities which will quickly produce demonstrable
results and advance the public interest including the number of colonia
residents to be assisted and the impact of the projects and activities
on the distress factors indicated by the applicant's response to Factor
2. An applicant must demonstrate that it has an understanding of the
steps required to implement its project, the actions that it and others
responsible for implementing the project must complete and shall
include a reasonable time schedule for carrying out the project. In
considering this factor, HUD will take into account the cost per unit
for construction or rehab of housing units.
Rating Factor 4: Financial Feasibility/Leveraging Resources (20
points).
This factor addresses the extent to which the proposed project will
leverage the use of other public and private financial resources to
provide a fiscally sound project. A minimum ratio of RDDC funds in any
project is not specified. However, applicants that have the greatest
ratio of other funds or in-kind services to RDDC funds will receive a
greater number of points for leveraging resources. Documentation of
funds pledged and in-kind services to be provided must be submitted
with the application to be considered. This documentation might include
letters of financial commitment or verifiable evidence of other loan or
grant
[[Page 38257]]
assistance to address the housing development needs of the colonia
project area and residents. Also considered in determining the points
for this factor must be the extent to which project costs (as evidenced
by a complete budget-by-task) are reasonable and financially feasible.
IV. Application Submission Requirements
The application must include an original and two copies of the
items listed below:
(A) Transmittal letter from applicant;
(B) Table of contents;
(C) A signed SF-424 (application form);
(D) A narrative statement as described above;
(E) Responses to each of the Factors for Award;
(F) Written agreements or signed letters of understanding in
support of Rating Factor 1: ``Capacity of the Applicant and Relevant
Organizational Staff'';
(G) Documentation of funds pledged in support of Rating Factor 4:
``Financial Feasibility/Leveraging Resources'';
(H) A budget-by-task to accompany Factor 4;
(I) Required certifications (signed, as appropriate, and attached
as an appendix); and
(J) Acknowledgment of Application Receipt form (submitted with
application and returned to applicant as verification of timely
receipt).
V. Corrections to Deficient Applications
After the application due date, HUD may not, consistent with 24 CFR
part 4, subpart B, consider unsolicited information from an applicant.
HUD may contact an applicant, however, to clarify an item in the
application or to correct technical deficiencies. Applicants should
note, however, that HUD may not seek clarification of items or
responses that improve the substantive quality of the applicant's
response to any eligibility or selection criterion. Examples of curable
technical deficiencies include failure to submit an application
containing an original signature by an authorized official. In each
case, HUD will notify the applicant in writing by describing the
clarification or technical deficiency. HUD will notify applicants by
facsimile or by return receipt requested mail. Applicants must submit
clarifications or corrections of technical deficiencies in accordance
with the information provided by HUD within 7 calendar days of the date
of receipt of the HUD notification. If the deficiency is not corrected
within this time period, HUD will reject the application as incomplete.
VI. Findings and Certifications
(A) Paperwork Reduction Act Statement
The information collection requirements contained in this NOFA have
been submitted to the Office of Management and Budget (OMB) for
approval in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520). The OMB approval number, once assigned, will be
published in the Federal Register. 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
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 during business hours in the Office of
the Rules Docket Clerk, Room 10276, Department of Housing and Urban
Development, 451 Seventh Street, SW, Washington, DC 20410-0500.
(C) Federalism Impact
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this NOFA will not have substantial direct effects on
States or their political subdivisions, or the relationship between the
Federal Government and the States, or on the distribution of power and
responsibilities among the various levels of government. As a result,
the notice is not subject to review under the Order. This notice is a
funding notice and does not substantially alter the established roles
of HUD, the States, and local governments.
(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 regulations in 24 CFR part
4, subpart A contain a number of provisions that are designed to ensure
greater accountability and integrity in the provision of certain types
of assistance administered by HUD. On January 14, 1992 (57 FR 1942),
HUD published a notice that also provides information on the
implementation of section 102. HUD will comply with the documentation,
public access, and disclosure requirements of section 102 with regard
to the assistance awarded under this NOFA, as follows:
(1) Documentation and public access requirements. HUD will ensure
that documentation and other information regarding each application
submitted pursuant to this NOFA are sufficient to indicate the basis
upon which assistance was provided or denied. This material, including
any letters of support, will be made available for public inspection
for a 5-year period beginning not less than 30 days after the award of
the assistance. Material will be made available in accordance with the
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. In addition, HUD will include the
recipients of assistance pursuant to this NOFA in its Federal Register
notice of all recipients of HUD assistance awarded on a competitive
basis.
(2) Disclosures. HUD will make available to the public for 5 years
all applicant disclosure reports (HUD Form 2880) submitted in
connection with this NOFA. Update reports (also Form 2880) will be made
available along with the applicant disclosure reports, but in no case
for a period less than 3 years. All reports--both applicant disclosures
and updates--will be made available in accordance with the Freedom of
Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24
CFR part 15.
(E) Section 103 HUD Reform Act
HUD will comply with section 103 of the Department of Housing and
Urban Development Reform Act of 1989 and HUD's implementing regulations
in subpart B of 24 CFR part 4 with regard to the funding competition
announced today. These requirements continue to apply until the
announcement of the selection of successful applicants. HUD employees
involved in the review of applications and in the making of funding
decisions are limited by section 103 from providing advance information
to any person (other than an authorized employee of HUD) concerning
funding decisions, or from otherwise giving any applicant an unfair
competitive advantage. Persons who apply for assistance in this
competition should confine their inquiries to the subject areas
permitted under section 103 and subpart B of 24 CFR part 4.
Applicants or employees who have ethics related questions should
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.)
[[Page 38258]]
(F) Prohibition Against Lobbying Activities
Applicants for funding under this NOFA are subject to the
provisions of section 319 of the Department of Interior and Related
Agencies Appropriation Act for Fiscal Year 1991 (31 U.S.C. 1352) (the
Byrd Amendment) and to the provisions of the Lobbying Disclosure Act of
1995 (Pub. L. 104-65; approved December 19, 1995).
The Byrd Amendment, which is implemented in regulations at 24 CFR
part 87, prohibits applicants for Federal contracts and grants from
using appropriated funds to attempt to influence Federal executive or
legislative officers or employees in connection with obtaining such
assistance, or with its extension, continuation, renewal, amendment, or
modification. The Byrd Amendment applies to the funds that are the
subject of this NOFA. Therefore, applicants must file a certification
stating that they have not made and will not make any prohibited
payments and, if any payments or agreement to make payments of
nonappropriated funds for these purposes have been made, a form SF-LLL
disclosing such payments must be submitted. The certification and the
SF-LLL are included in the application.
The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved
December 19, 1995), which repealed section 112 of the HUD Reform Act,
requires all persons and entities who lobby covered executive or
legislative branch officials to register with the Secretary of the
Senate and the Clerk of the House of Representatives and file reports
concerning their lobbying activities.
Dated: July 10, 1998.
Saul N. Ramirez, Jr.,
Assistant Secretary for Community Planning and Development.
Appendix--Checklist, Forms and Certifications
Page No.
______ 1. Transmittal Letter
______ 2. Checklist and Submission Table of Contents
______ 3. Standard Form for Application for Federal Assistance (SF-
424)
______ 4. Narrative Statement
______ 5. Response to Factors for Award
______ 6. Written Agreements/Signed Letters of Understanding in
Support of Rating Factor 1
______ 7. Budget-by-Task and Benchmarks in Support of Rating Factor
3
______ 8. Documentation of Funds/In-Kind Services Pledged in Support
of Rating Factor 4
______ 9. Required Certifications (signed)
______ a. Certification for a Drug-Free Workplace (HUD-50070)
______ b. Certification of Payments to Influence Federal
Transactions (HUD-50071) (See 24 CFR part 87, Appendix A)
______ c. If required, Disclosure of Lobbying Activities (SF-
LLL) (See 24 CFR part 87, Appendix B)
______ d. Applicant/Recipient Disclosure/Update Report (HUD-
2880)
______ e. Applicant Nondiscrimination Certifications
______ f. Certification Regarding Debarment & Suspension (HUD-
2992)
______ 10. Acknowledgement of Application Receipt (to be returned to
applicant)
BILLING CODE 4210-29-P
[[Page 38259]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.005
[[Page 38260]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.006
[[Page 38261]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.007
[[Page 38262]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.008
[[Page 38263]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.009
[[Page 38264]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.010
[[Page 38265]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.011
[[Page 38266]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.012
[[Page 38267]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.013
[[Page 38268]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.014
[[Page 38269]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.015
[[Page 38270]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.016
[[Page 38271]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.017
[[Page 38272]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.018
[[Page 38273]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.019
[[Page 38274]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.020
[[Page 38275]]
[GRAPHIC] [TIFF OMITTED] TN15JY98.021
[FR Doc. 98-18932 Filed 7-13-98; 11:31 am]
BILLING CODE 4210-29-C
