[Federal Register Volume 61, Number 132 (Tuesday, July 9, 1996)]
[Notices]
[Pages 36254-36257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17373]
[[Page 36253]]
_______________________________________________________________________
Part VI
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Community Planning and
Development: Self-Help Homeownership Opportunity Program, Funding
Availability and Guidelines; Notice
Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 /
Notices
[[Page 36254]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4062-N-01]
Office of the Assistant Secretary for Community Planning and
Development; Self-Help Homeownership Opportunity Program (SHOP) Notice
of Funding Availability and Guidelines
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice of funding availability for fiscal year 1996.
-----------------------------------------------------------------------
SUMMARY: This NOFA announces the availability of $15 million in funding
for the Self-Help Homeownership Opportunity Program (SHOP), and
contains information concerning basic program requirements, eligible
applicants, funding available for grants, and application requirements
and procedures. The NOFA is issued under section 11 of the Housing
Opportunity Program Extension Act of 1996 (the ``Extension Act''). The
program is being implemented through this NOFA and no application
materials or forms are required other than as set out in this NOFA. No
separate implementing regulations will be issued. Applicants are
advised to consult section 11 of the Extension Act in order to prepare
an application that is consistent with its requirements, some of which
may not be repeated in this NOFA. Failure to follow the instructions
and procedures contained in this NOFA or lack of adherence to the
program requirements found in section 11 of the Extension Act will
result in an application being rejected by HUD.
DATES: Completed applications for SHOP grants must be physically
received by 4:30 p.m. Eastern Daylight Time on August 8, 1996. It is
not sufficient for an application to bear a postmark within the
deadline. Applications sent by facsimile (FAX) will not be accepted.
HUD will not waive this deadline for actual submission for any reason.
The application deadline is firm as to date and hour. In the interest
of fairness to all competing applicants, the Department will treat as
ineligible for consideration any application that is received after the
deadline. Applicants should take this policy into account and consider
early submission to avoid any risk of loss of eligibility brought about
by any unanticipated or delivery-related problems.
ADDRESSES: An original and two copies of the completed application must
be submitted to HUD Headquarters, Office of Community Planning and
Development, Processing and Control Unit, Room 7251, 451 Seventh
Street, SW, Washington, DC 20410, ATTN: Self-Help Program. (A
3.5 computer diskette containing the complete application
may be substituted for one of the paper copies.)
FOR FURTHER INFORMATION CONTACT: Clifford Taffet, Office of Affordable
Housing Programs, Department of Housing and Urban Development, room
7168, 451 Seventh Street, SW, Washington, DC 20410; telephone (202)
708-3226 EXT. 4589; (TTY (202) 708-2565). (These are not toll-free
numbers.)
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act Statement
The information collection requirements contained in this NOFA (FR-
4062) have been submitted to the Office of Management and Budget (OMB)
for emergency processing under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520) and 5 CFR 1320.13, and have been assigned OMB control
number 2506-0157, expires September 30, 1996. 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.
This information collection is required in connection with the
issuance of this NOFA, announcing the availability of $15 million for
grants to encourage innovative homeownership opportunities through the
provision of self-help housing where the homeowner contributes a
significant amount of sweat equity toward construction of the
dwellings. The information collection is needed so that HUD staff may
determine the eligibility, qualifications and capability of applicants
to carry out self-help and volunteer labor homeownership programs. HUD
will review the information provided by the applicants against the
selection criteria contained in the NOFA in order to rate and rank the
applications and select the best and most qualified individual
applications for funding. The selection criteria are: (1) Operational
capability and experience; (2) financial capability and experience; (3)
quality of program design; (4) leveraging of public/private resources;
and (5) Empowerment Zone/Enterprise Community support.
The information is public information and is not subject to any
confidentiality requirements other than the prohibition against advance
information on funding decisions (see section III of this NOFA).
The estimates of the total number of hours needed to prepare the
information collection including number of respondents, frequency of
response, and hours of response are as follows:
----------------------------------------------------------------------------------------------------------------
Number of Frequency of Hours per
respondents responses response Burden hours
----------------------------------------------------------------------------------------------------------------
Application Development......................... 10 1 80 800
----------------------------------------------------------------------------------------------------------------
Total Estimated Burden Hours: 800
----------------------------------------------------------------------------------------------------------------
The public is requested to send any comments concerning the
accuracy of this burden estimate and any suggestions for reducing this
burden to: Kay Weaver, Departmental Reports Liaison Officer, Office of
Administration, Department of Housing & Urban Development, 451 7th
Street, SW, Room 4176, Washington, DC 20410.
I. Purpose and Substantive Description
A. Authority
The funding made available under this NOFA is authorized by Section
11 of the Housing Opportunity Program Extension Act of 1996 (Pub. L.
104-120, 110 Stat 834, approved March 28, 1996). No separate
implementing regulations will be issued. HUD may issue additional
guidance containing more detailed policy than provided in this NOFA
with respect to various aspects of the program, the management of
funds, the environmental clearance process and similar matters, as
necessary.
B. Purpose and Program Requirements
The Self-Help Homeownership Opportunity Program is intended to
facilitate and encourage innovative homeownership opportunities through
the provision of self-help housing where the homebuyer contributes a
significant amount of sweat-equity toward the construction of the new
dwelling. This
[[Page 36255]]
program will increase homeownership levels and is in furtherance of the
National Homeownership Strategy. The strategy is a five-year blueprint
for cooperative actions identified by 56 private and public
organizations that is intended to achieve an all-time high level of
homeownership by the year 2000. The National Homeownership Strategy,
``Partners in the American Dream'' was prepared by the Department and
its Partners in response to a request from President Clinton in 1995.
These decent, safe, and sanitary nonluxury dwellings must be made
available to eligible homebuyers at prices below the prevailing market
prices. Eligible homebuyers are low-income families (families whose
annual incomes do not exceed 80 percent of the median income for the
area, as determined by HUD) who are unable to otherwise afford to
purchase a dwelling. Activities to develop housing assisted under this
NOFA must involve community participation, by providing for the
utilization of volunteers in the construction of dwellings or by other
activities designed to involve the community in the project. The only
eligible expenses for program funds are land acquisition (including
financing and closing costs) and infrastructure improvement
(installing, extending, constructing, rehabilitating, or otherwise
improving utilities and other infrastructure). Administrative expenses
and costs associated with the rehabilitation, improvement, or
construction of dwellings are not eligible uses of program funds. Among
the program requirements contained in section 11 of the Extension Act
that the applicant's proposed program design must meet in order to be
considered as eligible are the following: (1) to provide for
development, through significant amounts of sweat-equity and volunteer
labor, of at least 30 dwellings at an average cost of no more than
$10,000 per unit in SHOP funds; (2) to use the grant in a manner that
leverages other sources of funding, including private or other public
funds; (3) to construct quality dwellings that comply with local
building and safety codes and standards and are available at prices
below the prevailing market price; and (4) to schedule activities so as
to substantially fulfill the obligations under the grant agreement
within 24 months after grant amounts are first made available to the
organization or consortia. HUD will recapture undisbursed amounts from
the grantees who fail to substantially fulfill these obligations within
24 months.
C. Other Federal Requirements
Grantees awarded funds under this NOFA are subject to the following
requirements: The administrative requirements of 24 CFR part 84, OMB
Circular A-122 and the audit requirements in 24 CFR part 45
(implementing OMB Circular A-133); the Equal Opportunity requirements
referred to in 24 CFR 5.105(a) (61 FR 5198, 5202, published February 9,
1996); the provisions contained in Section 305 of the Multifamily
Housing Property Disposition Reform Act of 1994, Environmental Review,
codified in the Environmental Review regulations at 24 CFR part 58, are
applicable to properties assisted with SHOP funds (see next paragraph);
the requirements of the Uniform Relocation Act, as implemented by 49
CFR part 24; the lead-based paint requirements set out in 24 CFR part
35; the requirements of section 3 of the Housing and Urban Development
Act of 1968 concerning infrastructure improvements funded with SHOP
funds; restrictions on participation by ineligible, debarred or
suspended persons or entities referred to in 24 CFR 5.105(c); and the
Drug-Free Workplace authorities referred to in 24 CFR part 24.
Use of SHOP funds is subject to the environmental review
requirements that apply to HUD Special Projects in accordance with
Section 305(c) of the Multifamily Housing Property Disposition Reform
Act of 1994, as implemented in 24 CFR part 58 (final rule published on
April 30, 1996, 61 FR 19120, effective May 30, 1996). Recipients are
cautioned that they may not commit either SHOP or non-HUD funds for
most activities until a Federal environmental review is performed by a
unit of general local government, tribe or State, and until HUD
approves a recipient's request for release of funds under part 58.
D. Allocation Amounts
This NOFA makes available $15 million in SHOP grants, in accordance
with sections 11(c)(2) and 12(b)(1) of the Housing Opportunity Program
Extension Act of 1996.
E. Unused Funds
If funds remain after HUD has approved all approvable grant
applications, the excess will be provided to Habitat for Humanity
International for use in accordance with the requirements of section 11
of the Extension Act.
F. Eligible Applicants
Except as noted below, eligible applicants are nonprofit national
or regional organizations or consortia that have experience in
providing or facilitating self-help housing homeownership
opportunities, and that have standards of financial accountability that
conform to 24 CFR 84.21, ``Standards for Financial Management
Systems''. Applicants receiving awards are required to have audits
conducted in accordance with the provisions of 24 CFR part 45 (OMB
Circular A-133) or a program-specific financial audit, as appropriate.
Where the applicant is a consortium, one organization must be chosen as
the lead applicant. The lead applicant will execute the application
documents and, if the application is selected for funding, will execute
the grant agreement and assume primary responsibility for carrying out
the grant activities in compliance with all program requirements. Other
participants in the consortium should be listed in the narrative
section of the application addressing rating criteria numbers (1)
(``Operational Capability and Experience of the Applicant''); and (2)
(``Financial Capability and Experience of the Applicant''). Affiliates
of Habitat for Humanity International are not eligible for funding
under this NOFA since SHOP funds are being made available to them
separately under section 11 of the Extension Act.
II. Grant Applications
A. Application Submission
Only timely applications received at HUD Headquarters will be
considered for funding (see ``Addresses'' at the beginning of this
NOFA). Applications (original and two copies) must be physically
received no later than 4:30 p.m. Eastern Daylight Time on the deadline
(see ``Dates'' at the beginning of this NOFA). It is not sufficient for
an application to bear a postmark within the deadline. Applications
sent by facsimile (FAX) will not be accepted.
B. Application Requirements
All applicants must submit applications on 8\1/2\'' by 11'' paper
which are bound in loose leaf binders for easy copying. All pages and
attachments must be numbered consecutively. Applications must contain
the following items: (1) OMB Standard Form 424, Request for Federal
Assistance, Standard Form 424B, Non-Construction Assurances,
Certification Concerning Use of Federal Funds for Lobbying, and
Certification Concerning Drug-Free Workplace signed by a person legally
authorized to enter into an agreement with HUD; and (2) a detailed
narrative statement and program
[[Page 36256]]
description which addresses each of the five Rating Criteria in Section
II.E of this NOFA. Requests for copies of the standard forms and
certifications can be made by calling Community Connections at 1-800-
998-9999 or by fax to HUD, ATTN: Cliff Taffet, at (202) 708-1744. (This
is not a toll-free number.) Please refer to the ``Self-Help Program''
in your request. The application will become part of the grant
agreement to be entered into by successful applicants.
C. Selection Process
The selection process for grants under SHOP consists of a screening
review, and then, for those applications meeting all screening
requirements, rating and ranking under substantive rating criteria.
However, rating and ranking will only occur if there are more funds
requested in applications that meet screening requirements than are
available under this NOFA.
D. Screening Process/Corrections to Deficient Applications
(1) HUD will screen each application submitted on or before the
deadline to determine if it is complete, is internally consistent,
contains correct computations, and complies with all requirements of
section 11 of the Extension Act and this NOFA.
(2) Where HUD determines that an application as initially submitted
is fundamentally incomplete or would require substantial revisions, it
will not consider the application further.
(3) Where HUD determines an application is deficient in one or more
of the areas in paragraph D(1) of this section but is not fundamentally
incomplete and does not require substantial revisions, it will notify
the applicant in writing and give it an opportunity to correct the
technical deficiencies that do not pertain to the merits of its
submission. HUD will not notify the applicant of any deficiencies in
material that is to be evaluated under the rating criteria.
(4) The notification will require the applicant to submit
additional or corrected items so that they are received in HUD
Headquarters by no later than 4:30 p.m. Eastern Daylight Time on the
14th calendar day after the date of the written notification to the
applicant giving it an opportunity to correct the deficiency. HUD may
not extend this deadline for actual receipt of the material for any
reason. After review of all additional or corrected materials, HUD will
not consider further any applications that do not comply with the
requirements of the NOFA and section 11 of the Extension Act.
E. Rating Criteria
All applications meeting the screening requirements in section D
will be rated and ranked, using the following substantive rating
criteria:
(1) Operational Capability and Experience of the Applicant--(up to
30 points). The applicant will be rated on its ability to develop and
carry out the proposed program in a reasonable time and successful
manner. In assigning points for this criterion, HUD will consider
evidence demonstrating previous experience of the applicant, the
participating members of consortia, other co-applicants and the key
staff of these organizations in managing self-help housing and
volunteer labor projects involving acquisition, construction, real
estate financing, counseling and training or other relevant activities.
The applicant must identify in its application the key staff who will
be responsible for implementing the program and describe their
qualifications. In addition, the applicant must provide, as evidence of
its nonprofit status, a copy of a current Internal Revenue Service
ruling that the applicant is exempt from taxation under section
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986. Where an
IRS ruling is unavailable, an applicant may submit a certified copy of
its approved charter, articles of incorporation or bylaws,
demonstrating that the applicant is established as a nonprofit
organization under state law. Where the applicant is a consortium, each
participant in the consortium must be a nonprofit organization, but
only the lead applicant should submit evidence of its nonprofit status.
However, the lead applicant must maintain a copy of the above-described
documentation for each participant in the consortium.
(2) Financial Capability and Experience of the Applicant--(up to 20
points). The applicant will be rated on its capability to handle
financial resources and follow procedures for effective control. In
assigning points for this criterion, HUD will consider evidence
demonstrating previous experience of the applicant, the participating
members of consortia, other co-applicants, and the key staff of these
organizations, and the adequacy of existing financial control
procedures. Applicants must include in their narrative statement a
description of the financial control system, and provide supporting
documentation, including a copy of their most recent audit.
(3) Quality of Program Design--(up to 30 points). In assigning
points for this criterion, HUD will consider the extent to which the
proposed program is complete, feasible, innovative, geographically
diverse, and likely to substantially fulfill the obligations of the
applicant under the program within 24 months. Applicants must include
in their narrative a program schedule and performance benchmarks for
the initial 24 month period of the grant agreement (including the
number of units to be developed and occupied) that constitute
substantial fulfillment of programmatic obligations. The applicant must
also present a budget which includes the sources and uses of all funds,
including program income and accrued interest, and provide a
description of the applicant's cash management system and proposed
distribution of funds among participating organizations. The program
design narrative must be detailed and describe other aspects of the
program including, but not limited to: the administrative structure and
program monitoring; the procedures to be followed in selecting
properties, meeting environmental review requirements, and choosing
homebuyers; the sweat-equity and community participation volunteer
requirements; the size and design of the new dwellings, including
features to allow entrance and passage through the house by people who
use wheelchairs and to promote energy efficiency; the use of cost
reducing innovations in construction technologies and land planning;
the counseling and training components; the terms of sale to
homebuyers; and the identification of participating lenders. This
section of the application should contain sufficient information to
determine that the applicant understands and intends to comply with
other requirements of the Extension Act and the NOFA, such as the
requirements that the homes developed will be sold to eligible
homebuyers at prices below prevailing market prices, and that all local
building and safety codes and standards will be complied with.
(4) Leveraging of Public/Private Resources--(up to 20 points). In
assigning points for this criterion, HUD will consider the extent and
firmness of commitments by the public and private sector in support of
the program, such as the donation of labor or materials, interest rate
reductions or other financing subsidies, volunteer assistance, tax
abatements, public works improvements, waivers of fees or taxes,
expedited processing of permits and applications, removal of regulatory
barriers to affordable housing, and supportive services (including
counseling and training). Applicants should provide letters or other
[[Page 36257]]
documentation evidencing the extent and firmness of these commitments.
(5) Empowerment Zone/Enterprise Community Support--(up to 5
points). In assigning points for this criterion, HUD will consider the
extent to which the applicant's program design provides for the
selection of sites for development located in Federally designated
urban or rural Empowerment Zones, Enterprise Communities or
Supplemental Empowerment Zones, as selected by the Secretaries of HUD
and USDA.
Rating of the ``applicant'' or the ``applicant's organization and
staff'' will include any members of the national and regional
organization or consortium participating in the application.
Irrespective of final scores, HUD may make selections out of rank order
to achieve a national geographic diversity. Additionally, HUD reserves
the right to reduce the amount of funding for an application below that
which was requested.
F. Ranking and Selection
After assigning points under the selection criteria, HUD shall
examine the rankings and, where it determines that applications falling
below a certain point total are not suitable or not feasible for
funding, it may establish a minimum number of points for applications
to qualify to be selected for funding. HUD shall select for funding in
rank order all fundable applications, if any. Once these selections
have been made (within 6 months of the publication of this NOFA), HUD
will provide excess funds remaining from the $15 million allocation to
Habitat for Humanity International to be used as provided for under
section 11 of the Extension Act.
III. Other Matters
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made for the program in accordance with HUD regulations at 24
CFR part 50, which implements section 102(2)(C) of the National
Environmental Policy Act of 1969. The Finding is available for public
inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of
the Rules Docket Clerk, Office of the General Counsel, Department of
Housing and Urban Development, room 10276, 451 Seventh Street, SW,
Washington, DC 20410.
Federalism Executive Order
The General Counsel, as the Designated Official for HUD under
section 6(a) of Executive Order 12612, Federalism, has determined that
the provisions in this NOFA are closely based on statutory requirements
and impose no significant additional burdens on States or other public
bodies. This NOFA does not affect the relationship between the Federal
Government and the States and other public bodies or the distribution
of power and responsibilities among various levels of government.
Therefore, the policy is not subject to review under Executive Order
12612.
Family Executive Order
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has also determined that some of the policies
in this NOFA will have a potential significant impact on the formation,
maintenance, and general well-being of the family. Achievement of
homeownership by low-income families in the program can be expected to
support family values, by helping families achieve security and
independence; by enabling them to live in decent, safe and sanitary
housing; and by giving them the skills and means to live independently
in mainstream American society. Since the impact on the family is
beneficial, no further review is necessary.
Section 102 of the HUD Reform Act--Accountability in the Provision of
HUD Assistance
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) in
HUD's implementing regulations at 24 CFR part 15. In addition, HUD will
publish a Federal Register notice of all recipients awarded assistance
under this NOFA. (See 24 CFR part 4, subpart A (61 FR 14448, 14449
published April 1, 1996).)
Section 103 of the HUD Reform Act--Prohibition against Advance
Information on Funding Decisions.
HUD's regulation implementing section 103 of the Department of
Housing and Urban Development's 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, subpart B (61 FR 14448, 14451, published April 1, 1996).
Applicants or employees who have ethics related questions should
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions,
such as whether particular subject matter can be discussed with persons
outside HUD, the employee should contact the appropriate Field Office
Counsel or Headquarters Counsel for the program to which the question
pertains.
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) (``Byrd Amendment'') and the
implementing regulations at 24 CFR part 87. These authorities prohibit
recipients of federal contracts, grants, or loans from using
appropriated funds for lobbying the Executive or Legislative branches
of the federal government in connection with a specific contract,
grant, or loan. The prohibition also covers the awarding of contracts,
grants, cooperative agreements, or loans unless the recipient has made
an acceptable certification regarding lobbying. Under 24 CFR part 87,
applicants, recipients, and subrecipients of assistance exceeding
$100,000 must certify that no federal funds have been or will be spent
on lobbying activities in connection with the assistance.
Dated: June 27, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-17373 Filed 7-8-96; 8:45 am]
BILLING CODE 4210-29-P
