[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19317]
[[Page Unknown]]
[Federal Register: August 9, 1994]
_______________________________________________________________________
Part IV
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Fair Housing and Equal
Opportunity
_______________________________________________________________________
Fair Housing Initiatives Program, Private Enforcement Initiative
Special Project; Fiscal Year 1994 Competitive Solicitation; Notice of
Funding Availability
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Fair Housing and Equal
Opportunity
[Docket No. N-94-3797; FR-3742-N-01]
NOFA for Fair Housing Initiatives Program, Private Enforcement
Initiative Special Project; FY 1994 Competitive Solicitation
AGENCY: Office of the Assistant Secretary for Fair Housing and Equal
Opportunity, HUD.
ACTION: Notice of Funding Availability (NOFA).
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SUMMARY: This NOFA announces the availability of up to $2 million of
1994 Fiscal Year (FY) funding for special projects to address property
insurance and mortgage lending discrimination under the Private
Enforcement Initiative of the Fair Housing Initiatives Program (FHIP).
FHIP assists projects and activities designed to enforce and enhance
compliance with the Fair Housing Act and substantially equivalent State
and local fair housing laws. In the body of this document is
information concerning the purpose of the NOFA, eligibility, available
amounts, selection criteria, how to apply for funding, and how
selections will be made.
DATES: An application kit for funding under this Notice will be
available following publication of the Notice. The actual application
due date will be specified in the application kit. However, applicants
will be given at least 45 days from today's date, until September 23,
1994, to submit their applications. Applications will be accepted if
they are received on or before the application due date, or are
received within 7 days after the application due date, but with a U.S.
postmark or receipt from a private commercial delivery service (such
as, Federal Express or DHL) that is dated on or before the application
due date.
ADDRESSES: To obtain a copy of the application kit, please write the
Fair Housing Information Clearinghouse, Post Office Box 6091,
Rockville, MD 20850 or call the toll free number 1-800-343-3442. Please
also contact this number if information concerning this NOFA is needed
in an accessible format.
FOR FURTHER INFORMATION CONTACT: Jacquelyn J. Shelton, Director, Office
of Fair Housing Initiatives and Voluntary Programs, Room 5234, 451
Seventh Street, SW., Washington, DC 20410-2000. Telephone number (202)
708-0800. A telecommunications device (TDD) for hearing and speech
impaired persons is available at (202) 708-0455. (These are not toll-
free numbers.)
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act Statement
Application requirements associated with this program have been
approved by the Office of Management and Budget, under section 3504(h)
of the Paperwork Reduction Act of 1980 (44 U.S.C. 3054(h)), and
assigned OMB control number 2529-0033.
I. Purpose and Substantive Description
(a) Authority
Title VIII of the Civil Rights Act of 1968, as amended, 42 U.S.C.
3601-19 (Fair Housing Act), charges the Secretary of Housing and Urban
Development with responsibility to accept and investigate complaints
alleging discrimination based on race, color, religion, sex, handicap,
familial status or national origin in the sale, rental, or financing of
most housing and in other real estate-related transactions. In
addition, the Fair Housing Act directs the Secretary to coordinate
action with State and local agencies administering fair housing laws
and to cooperate with, and render technical assistance to, public or
private entities carrying out programs to prevent and eliminate
discriminatory housing practices.
Section 561 of the Housing and Community Development Act of 1987,
42 U.S.C. 3616 note, established the Fair Housing Initiatives Program
(FHIP) to strengthen the Department's enforcement of the Fair Housing
Act and to further fair housing. This program assists projects and
activities designed to enforce and enhance compliance with the Fair
Housing Act and substantially equivalent State and local fair housing
laws. Implementing regulations are found at 24 CFR part 125.
Three general categories of activities were established at 24 CFR
part 125 for FHIP funding under section 561 of the Housing and
Community Development Act of 1987: the Administrative Enforcement
Initiative, the Education and Outreach Initiative, and the Private
Enforcement Initiative. Section 905 of the Housing and Community
Development Act of 1992 (HCDA 1992) (Pub. L. 102-550, approved October
28, 1992), amended section 561 by adding specific eligible applicants
and activities to the Education and Outreach and Private Enforcement
Initiatives, as well as an entirely new Fair Housing Organizations
Initiative.
The program components of FHIP are described in the Catalog of
Federal Domestic Assistance at 14.408, Administrative Enforcement
Initiative; 14.409, Education and Outreach Initiative; 14.410, Private
Enforcement Initiative; and 14.413, Fair Housing Organizations
Initiative.
(b) Allocation Amounts
For FY 1994, the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1994
(approved October 28, 1993, Pub. L. 103-124), (94 App. Act)
appropriated $20,481,000 for the FHIP program. Of this amount,
$2,000,000 of Private Enforcement Initiative funds are being made
available for the special projects announced in this NOFA. The
remaining $18,481,000 was made available in a NOFA published on May 16,
1994 (59 FR 25532) (technical correction published June 7, 1994, 59 FR
29432). The amounts included in this NOFA are subject to change based
on fund availability.
Of the $2 million available under this NOFA, $1.5 million is
available for enforcement project applications that address any aspect
of property insurance discrimination cognizable under the Fair Housing
Act. Applications for property insurance projects should not exceed
$300,000. The remaining $500,000 is available for enforcement project
applications that address any aspect of mortgage lending discrimination
cognizable under the Fair Housing Act. Applications for mortgage
lending projects should not exceed $250,000.
If the entire $2 million available is not awarded under this NOFA,
it may be used to fund additional applications under the FY 1994 FHIP
NOFA published on May 16, or it may be added to funds made available in
any FY 1995 FHIP NOFA that will be published. In addition, should HUD
determine, based upon the availability of funds and the number and
quality of applications in response to this NOFA, to fund additional
projects under this NOFA, up to $500,000 of FY 1995 Private Enforcement
Initiative funds will be made available to continue to make awards.
(c) Eligibility. Eligible activities and applicants, and additional
requirements that apply to the Private Enforcement Initiative are
listed below. All activities and materials funded by FHIP must be
reasonably accessible to persons with disabilities.
(1) Eligible applicants. Organizations that are eligible to receive
FY 1994 funding assistance under the Private Enforcement Initiative
are:
(i) Qualified fair housing enforcement organizations. A qualified
fair housing organization is any organization, whether or not it is
solely engaged in fair housing enforcement activities, that:
(A) Is organized as a private, tax-exempt, nonprofit, charitable
organization;
(B) Has at least 2 years experience in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims; and
(C) Is engaged in complaint intake, complaint investigation,
testing for fair housing violations and enforcement of meritorious
claims at the time of application for FHIP assistance.
(ii) Fair housing enforcement organizations with at least 1 year of
experience in complaint intake, complaint investigation, testing for
fair housing violations and enforcement of meritorious claims. A fair
housing enforcement organization is an organization that:
(A) Is organized as a private, tax-exempt, nonprofit, charitable
organization;
(B) Is currently engaged in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims; and
(C) Upon the receipt of FHIP funds will continue to be engaged in
complaint intake, complaint investigation, testing for fair housing
violations and enforcement of meritorious claims.
(2) Eligible Activities.
(i) Property insurance discrimination. A total of $1.5 million is
available for enforcement project applications that address any aspect
of property insurance discrimination cognizable under the Fair Housing
Act. Project applications should not exceed $300,000. All testing
projects under this NOFA must include other investigative activities in
addition to testing. All projects must provide for administrative or
judicial enforcement activities to follow for any unlawful
discrimination that is disclosed. The following activities are provided
as examples of eligible activities:
(A) Applicants can propose testing and other investigative
activities to compare accepted and rejected property insurance
applications and determine whether race/ethnicity of the applicant and/
or the community where the property was located, or the age of the
property was a factor in the rejection. Project applications may
address the issuance, renewal, non-renewal or cancellation of policies
by insurance companies, independent agents, captive agents or any other
provider of property insurance. Activities may include comparisons of
terms and conditions, such as the extent of coverage, premiums charged,
terms of payment, property inspection requirements and discounts
offered to insurance applicants that result in unlawful discrimination.
Other investigative activities, in addition to testing, may include
obtaining for use in administrative or judicial enforcement activities:
(1) Evidence (testimony or documents of disparate treatment or
disparate impact) from current or former agents and other employees of
insurance companies;
(2) Evidence (testimony or documents of disparate treatment or
disparate impact) from current or former policyholders;
(3) Discovery made available in other lawsuits against insurance
companies;
(4) Insurance testing data gathered by other organizations;
(5) Industry expert testimony on property insurance discrimination;
(6) Market conduct examinations;
(7) Equal employment opportunity data on the number of minority
agents, supervisors, management officials, and officers;
(8) Information on the current and former locations of insurance
agencies, including main offices, branch offices and agents, compared
to racial/ethnic data at the time of establishment, movement or
closure;
(9) Data on sales and marketing practices;
(10) Data which indicate the discriminatory racial impact of
selected underwriting and other sales and marketing practices, e.g. age
and minimum coverage requirements; and
(11) Complaints filed with state insurance commissioners, public or
private civil rights agencies, and other fair housing groups.
(B) Applicants can propose to pursue litigation and litigation
support activities for cases in which evidence of discrimination in
property insurance has already been secured through previously
conducted testing and other investigative activities. Litigation
support activities may include, for example, obtaining and/or providing
a complainant, an enforcement agency, HUD, and/or the Department of
Justice with testimony and evidence relevant to a particular case being
heard before an Administrative Law Judge or in a Federal Court.
(C) Applicants can propose to analyze multi-year data on the
geographic distribution of policies, location of offices and agents and
marketing policies of insurance companies as they relate to the racial
composition of a particular metropolitan area to determine whether such
placement and marketing procedures result in a discriminatory impact on
minorities.
(ii) Mortgage lending discrimination. A total of $500,000 is
available for enforcement project applications that address any aspect
of mortgage lending discrimination cognizable under the Fair Housing
Act. Project applications should not exceed $250,000. All testing
projects under the NOFA must include other investigative activities in
addition to testing. All projects must provide for administrative or
judicial enforcement activities to follow for any unlawful
discrimination that is disclosed. The following are provided as
examples of eligible activities:
(A) Applicants can propose to conduct an in-depth examination of a
particular geographic area, identified in the application, with a
diverse population that is separated into discrete, racially
identifiable sections, to determine the presence and extent of
discriminatory mortgage lending practices in the area. The examination
must not be based solely on Home Mortgage Disclosure Act (HMDA) data.
Discriminatory mortgage lending practices may be those which are
subject to an impact analysis, such as the effect of a minimum loan
amount on the ability of protected classes to obtain financing or the
application of underwriting criteria which have the effect of
discriminating against minorities. Such criteria could include, for
example, the failure of the lender to accept cash on hand in lieu of a
bank statement; denial of a loan because the applicant has no credit
history, banking or checking account, credit accounts, credit cards,
etc.; tiered pricing of mortgage costs based on the amount of the loan,
the age or location of the property; and failure to gross up taxable
and non-taxable income in calculating debt to income ratios.
(B) Applicants can propose to examine the interrelationship of
various discriminatory mortgage lending practices and their role in
creating geographic areas that are separated into discrete, racially
identifiable sections. This includes, for example, discriminatory
marketing practices; discriminatory appraisals; discriminatory
underwriting criteria; overt differences in treatment; and the effects
of discriminatory practices of financial institutions, such as
discriminatory appraisals, on the ability of other institutions to
operate in a manner that does not have a discriminatory effect. Also
included as discriminatory practices for examination are secondary
market policies and practices; underwriting criteria which have a
disparate impact; and discriminatory lender practices, such as minimum
loan amounts, compensation practices, overages and other practices that
have a disparate impact upon a protected class.
(C) Applicants can propose to pursue litigation and litigation
support activities for cases in which documentation of discrimination
in mortgage lending has already been secured through previously
conducted testing and other investigative activities. Litigation
support activities may include, for example, obtaining and/or providing
a complainant, an enforcement agency, HUD, and/or the Department of
Justice with testimony and evidence relevant to a particular case being
heard before an Administrative Law Judge or in a Federal Court.
(D) Applicants can propose testing and other investigatory
activities in connection with any of the above activities. Other
investigative activities, in addition to testing, may include obtaining
for use in administrative or judicial enforcement activities:
(1) Evidence (testimony or documents of disparate treatment or
disparate impact) from current or former agents and other employees of
mortgage lending companies;
(2) Discovery made available in other lawsuits against mortgage
lending companies;
(3) Mortgage lending testing data gathered by other organizations;
(4) Industry expert testimony on mortgage lending discrimination;
(5) Market conduct examinations;
(6) Equal employment opportunity data on the number of minority
loan officers, supervisors and management officials;
(7) Information of the current and former locations of mortgage
lending companies;
(8) Data on sales and marketing practices; and
(9) Demographic data which indicate the discriminatory racial/
ethnic impact of underwriting criteria.
(iii) Additional requirements.
(A) Applications are solicited for project proposals not to exceed
18 months in implementation. For projects more than 12 months in
duration, the proposal must include a verbal briefing to HUD officials
after nine months of project implementation.
(B) Applicants may propose to do an interrelated project that
includes discrimination in mortgage lending and discrimination in
property insurance. However, such applications cannot exceed maximum
amounts established under the individual categories. Further,
applicants must identify the category under which they wish such
proposals to be considered.
(C) Applications must include activities that will provide:
(1) Detailed documentation of the findings that support the
project's conclusions, and of the raw data that were used for analysis
and determination;
(2) Detailed characteristics of the targeted community and any
selected comparison site, showing the significant factors that were
used to determine comparability and the source of the information used
to identify these characteristics and factors;
(3) A detailed implementation guide for replication and use in
other areas, including an explanation of methodology (e.g., how to
compare accepted and rejected applications to determine whether race or
other prohibited basis was a factor in the rejection; what to look for
when doing on-site property visits; or how to establish discriminatory
impact, providing detailed characteristics of the specific practice and
showing the significant factors that were used to determine whether the
practice had a discriminatory impact, and the source of the information
used to identify these characteristics and factors) and detailed
guidance on how to analyze data obtained using the methodology.
(D) Testers in testing activities funded with Private Enforcement
Initiative funds must not have prior felony convictions or convictions
of crimes involving fraud or perjury, and they must receive training or
be experienced in testing procedures and techniques.
(E) Projects that appear to be aimed solely or primarily at
research or data-gathering unrelated to existing or planned fair
housing enforcement programs will not be approved. Data-gathering
activities will require OMB approval under the Paperwork Reduction Act
before commencement of the activity.
(F) In accordance with 24 CFR 125.404, no recipient of assistance
under the Private Enforcement Initiative may use any funds provided by
the Department for the payment of expenses in connection with
litigation against the United States.
(G) Recipients of funds under the Private Enforcement Initiative
shall be required to record, in a case tracking log (or Fair Housing
Enforcement Log) to be supplied by HUD, information appropriate to the
funded project relating to the number of complaints of discrimination
received; the basis of these complaints; the type and number of tests
utilized in the investigation of each allegation; the time for case
processing, including administrative or judicial proceedings; the cost
of testing activities and case processing; and case outcome or relief
provided. The recipient must agree to make this log available to HUD.
(d) Selection Criteria/Ranking Factors
(1) Selection Criteria for Ranking Applications for Assistance
All projects proposed in applications will be ranked on the basis
of the following criteria for selection:
(i) The anticipated impact of the project proposed on the concerns
identified in the application. (20 points) In determining the
anticipated impact of the proposed project, HUD will consider the
degree to which a proposed project addresses problems and issues that
are significant fair housing problems and issues, as explained in the
application, or based upon other information available to HUD. (The
clarity and thoroughness of the project description can be considered
in this determination.) This criterion will be judged on the basis of
the applicant's submissions in response to paragraph III.(a)(1) of this
NOFA under the heading ``Checklist of Application Submission
Requirements.''
(ii) The extent to which the project will provide benefits in
support of fair housing after funded activities have been completed.
(20 points) In determining the extent to which the project will provide
benefits after funded activities have been completed, HUD will consider
the degree to which the project will be of continuing use in dealing
with housing discrimination after funded activities have been
completed. This criterion will be judged on the basis of the
applicant's submissions in response to paragraph III. (a)(6) and
III.(a)(7) of this NOFA under the heading ``Checklist of Application
Submission Requirements.''
(iii) The extent to which the project will provide the maximum
impact on the concerns identified in a cost-effective manner. (20
points) In determining the extent to which the project will provide the
maximum impact on the concerns identified in a cost effective manner,
HUD will consider the quality and reasonableness of the proposed
activities, timeline and budget for implementation and completion of
the project. HUD will consider as well the adequacy and clarity of
proposed procedures to be used by the agency for measuring the actual
results against the intended results of the project and ensuring its
timely completion. These procedures may consist of a system for
checking whether or not the milestones established by the project's
timeline are being met. The applicant's capability in handling
financial resources (e.g., adequate financial control procedures,
accounting procedures) will be taken into account as part of the
assessment. This may be evidenced by the applicant's financial
management of previous FHIP or other civil rights project management, a
certification from cognizant auditor, and other documentation. This
criterion will be judged on the basis of the applicant's submissions in
response to paragraphs III.(a)(2), and III.(a)(5) of this NOFA under
the heading ``Checklist of Application Submission Requirements.''
(iv) The extent to which the applicant's professional and
organizational experience will further the achievement of project
goals. (30 points) In determining the extent to which the applicant's
professional and organizational experience will further the achievement
of the project's goals, HUD will consider the applicant's experience in
formulating and carrying out programs to prevent or eliminate
discriminatory practices (especially programs addressing discrimination
in financing, insurance, or other real-estate related transactions),
including the applicant's management of past and current FHIP or other
civil rights projects, the experience and qualifications of existing
personnel identified for key positions, or a description of the
qualifications of new staff that will be hired, including
subcontractors/consultants. This criterion will be judged on the basis
of the applicant's submissions in response to paragraph III.(a)(3) of
this NOFA under the heading ``Checklist of Application Submission
Requirements.''
(v) The extent to which the project utilizes other public or
private resources that may be available. (10 points). Both monetary and
in-kind resources identified in the application are eligible for
determining the extent to which other public or private resources are
available. The resources that will be considered must be targeted
specifically for the proposed project, and must be over and above the
resources available to the applicant as a part of its usual, non-
project operations for such expenses as salaries, equipment, supplies,
and rent. This criterion will be judged on the basis of the applicant's
submissions in response to paragraph III.(a)(4) of this NOFA under the
heading ``Checklist of Application Submission Requirements.''
(2) Selection Process
Each application for funding will be evaluated competitively, and
awarded points based on the Selection Criteria for Ranking Applications
for Assistance identified in section I.(d)(1) of this NOFA. The final
decision rests with the Assistant Secretary or designee. After eligible
applications are evaluated against the factors for award and assigned a
score, they will be organized by rank order. Applications will be
funded in rank order until all available funds have been obligated, or
until there are no acceptable applications.
(3) Cost Factors
The Department expects to fund multiple applications as a result of
this NOFA. At some point, however, two or more complete and eligible
applications, after evaluation against the Selection Criteria, may be
considered equal in technical merit. At that point, the project's cost
will become the deciding factor. Furthermore, an applicant's proposal
will not be funded when costs are determined to be unrealistically low
or unreasonably high.
(e) Applicant Notification and Award Procedures
(1) Notification
No information will be available to applicants during the period of
HUD evaluation, except for notification in writing to those applicants
that are determined to be ineligible or that have technical
deficiencies in their applications that may be corrected. Selectees
will be announced by HUD upon completion of the evaluation process,
subject to final negotiations and award.
(2) Negotiations
After HUD has ranked the applications and made an initial
determination of applicants whose scores are within the funding range
(but before the actual award), HUD may require that applicants in this
group participate in negotiations to determine the specific terms of
the cooperative or grant agreement. In cases where it is not possible
to conclude the necessary negotiations successfully, awards will not be
made.
If an award is not made to an applicant whose application is in the
initial funding threshold because of an inability to complete
successful negotiations, and if funds are available to fund any
applications that may have fallen outside the initial funding
threshold, HUD will select the next highest ranking applicant and
proceed as described in the preceding paragraph.
(3) Funding Instrument
HUD expects to award a cost reimbursable or fixed-price cooperative
or grant agreement to each successful applicant. HUD reserves the
right, however, to use the form of assistance agreement determined to
be most appropriate after negotiation with the applicant.
(4) Reduction of Requested Grant Amounts and Special Conditions
HUD may approve an application for an amount lower than the amount
requested, fund only portions of an application, withhold funds after
approval, and/or require the grantee to comply with special conditions
added to the grant agreement, in accordance with 24 CFR part 85.12, the
requirements of this NOFA, or where:
(i) HUD determines the amount requested for one or more eligible
activities is unreasonable or unnecessary;
(ii) The application does not otherwise meet applicable cost
limitations established for the program;
(iii) The applicant has requested an ineligible activity;
(iv) Insufficient amounts remain in that funding round to fund the
full amount requested in the application and HUD determines that
partial funding is a viable option;
(v) The applicant has demonstrated an inability to manage HUD
grants, particularly Fair Housing Initiatives Program grants; or
(vi) For any other reason where good cause exists.
(5) Performance Sanctions
A recipient failing to comply with the procedures set forth in its
grant agreement will be liable for such sanctions as may be authorized
by law, including repayment of improperly used funds, termination of
further participation in the FHIP, reduction or limitation of further
funding for administrative enforcement activities, and denial of
further participation in programs of the Department or of any Federal
agency.
II. Application Process
An application kit is required as the formal submission to apply
for funding. The kit includes information on the Management Work Plan
and Budget for activities proposed by the applicant. An application may
be obtained by writing the Fair Housing Information Clearinghouse, Post
Office Box 6091, Rockville, MD 20850, or by calling the toll free
number 1-800-343-3442. To ensure a prompt response, it is suggested
that requests for application kits be made by telephone.
Completed applications are to be submitted to Aztec Jacobs, Funded
Programs Division, Office of Fair Housing and Equal Opportunity,
Department of Housing and Urban Development, Room 5234, 451 Seventh
Street, S.W., Washington, DC 20410.
The application due date will be specified in the application kit.
However, applicants will be given at least 45 days from today's date,
until September 23, 1994, to submit their applications. Applications
will be accepted if they are received on or before the application due
date, or are received within 7 days after the application due date, but
with a U.S. postmark or receipt from a private commercial delivery
service (such as, Federal Express or DHL) that is dated on or before
the application due date.
The application deadline is firm as to date. In the interest of
fairness to all competing applicants, the Department will treat as
ineligible for consideration any application that is received after the
deadline. Applicants should take this practice into account and make
early submission of their materials to avoid any risk of loss of
eligibility brought about by unanticipated delays or other delivery-
related problems. A transmission by facsimile machine (``FAX'') will
not constitute delivery.
An applicant may apply for funding for more than one project or
activity. Applicants must submit all information required in the
application kit and must include sufficient information to establish
that the application meets the selection criteria set forth in section
I.(d), above, of this NOFA.
III. Checklist of Application Submission Requirements
(a) General requirements. The application kit will contain a
checklist of application submission requirements to complete the
application process. Each application for FHIP funding must contain the
following items:
(1) A description of the activities proposed for funding, and the
practice or practices at the community, local, regional or national
level that have adversely affected the achievement of the goal of fair
housing, and that will be addressed by the proposed activities. This
description must include a discussion and analysis of the housing
practices identified, including available information and studies
relating to discriminatory housing practices and their historical
background, and relevant demographic data indicating the nature and
extent of the impact of the described practices on persons seeking
dwellings or services related to the sale, rental or financing of
dwellings, in the general location where the applicant proposes to
undertake activities;
(2) A budget--which must include $3,000 to be used for travel costs
for training sponsored by the Department--and a timeline for the
implementation of the proposed activities, consisting of a description
of the specific activities to be conducted with FHIP funds, the
geographic areas to be served by the activities, any reports to be
produced in connection with the activities, the cost of each proposed
activity and a schedule for the implementation and completion of the
activities;
(3) A description of the applicant's experience in formulating or
carrying out programs to prevent or eliminate discriminatory housing
practices or in implementing other civil rights programs, the
experience and qualifications of existing personnel identified for key
positions, or a description of the qualifications of new staff to be
hired, including subcontractors/consultants;
(4) A statement indicating the need for FHIP funding in support of
the proposed project and an estimate of other public or private
resources that may be available to assist the proposed activities;
(5) A description of the procedures to be used by the applicant for
monitoring the progress of the proposed activities and the applicant's
planned or implemented financial control procedures that will
demonstrate the applicant's capability in managing financial resources;
(6) A description of the fair housing benefits that successful
completion of the project will produce, and the indicators by which
these benefits are to be measured, and;
(7) A description of how the project will be of continuing use in
dealing with housing discrimination after funded activities have been
completed;
(8) HUD Form 2880, Applicant Disclosures;
(9) A listing of any current or pending grants or contracts, or
other business or financial relationships or agreements, to provide
training, education, and/or self-testing services between the applicant
and any entity or organization of entities involved in the sale,
rental, advertising or provision of brokerage or lending services for
housing. The listing must include the name and address of the entity or
organization; a brief description of the services being performed or
for which negotiations are pending; the dates for performance of the
services; and the amount of the contract or grant. This listing must be
updated during the grant negotiation period, at the end of the grant
term, and for grants that will run for more than twelve months, at the
end of the twelfth month.
(10) The applicant must submit a certification and disclosure in
accordance with the requirements of section 319 of the Department of
the Interior Appropriations Act (Pub. L. 101-121, approved October 23,
1989), as implemented in HUD's interim final rule at 24 CFR part 87,
published in the Federal Register on February 26, 1990 (55 FR 6736).
This statute generally prohibits recipients and subrecipients of
Federal contracts, grants, cooperative agreements and 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. If warranted, the applicant should include the
Disclosure of Lobbying Activities form (SF-LLL).
(11) Prior to award execution, a successful applicant must submit a
certification that it will comply with:
(i) Section 3 of the Housing and Urban Development Act of 1968,
Employment Opportunities for Lower Income Persons in Connection with
Assisted Projects (12 U.S.C. 1701u), and with implementing regulations
at 24 CFR part 135.
(ii) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-
2000d-4) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR part 1; and
(iii) The prohibitions against discrimination on the basis of age
under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and
implementing regulations at 24 CFR part 146, and the prohibitions
against discrimination against persons with disabilities under section
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24 CFR part 8.
(b) Additional Private Enforcement Initiative Requirements. In
addition to meeting the application requirements contained in section
III.(a), above, all proposals for testing under the Private Enforcement
Initiative must include:
(1) Documentation that the applicant has at least one year of
experience in carrying out a program to prevent or eliminate
discriminatory housing practices, and has sufficient knowledge of fair
housing testing to enable the applicant to implement a testing program
successfully;
(2) A certification providing that the applicant will not solicit
funds from or seek to provide fair housing educational or other
services or products for compensation, directly or indirectly, to any
person or organization which has been the subject of testing by the
applicant during a 12 month period following the test.
IV. Corrections to Deficient Applications
Applicants will not be disqualified from being considered for
funding because of technical deficiencies in their application
submission, e.g., an omission of information such as regulatory/program
certifications, or incomplete signatory requirements for application
submission.
HUD will notify an applicant in writing of any technical
deficiencies in the application. The applicant must submit corrections
within 14 calendar days from the date of HUD's letter notifying the
applicant of any technical deficiency.
The 14-day correction period pertains only to non-substantive,
technical deficiencies or errors. Technical deficiencies relate to
items that:
1. Are not necessary for HUD review under selection criteria/
ranking factors; and
2. Would not improve the substantive quality of the proposal.
V. Other Matters
Prohibition Against Lobbying Activities
The use of funds awarded under this NOFA is subject to the
disclosure requirements and prohibitions of Section 319 of the
Department of Interior and Related Agencies Appropriations Act for
Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the
implementing regulations at 24 CFR part 87. These authorities prohibit
recipients of Federal contracts, grants, or loans from using
appropriated funds for lobbying the Executive or Legislative branches
of the Federal government in connection with a specific contract,
grant, or loan. The prohibition also covers the awarding of contracts,
grants, cooperative agreements, or loans unless the recipient has made
an acceptable certification regarding lobbying. Under 24 CFR part 87,
applicants, recipients and sub-recipients 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.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with the Department's regulations at 24 CFR
Part 50 which implement 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 between 7:30 a.m. and 5:30
p.m. weekdays at the Office of the Rules Docket Clerk, Room 10276,
Department of Housing and Urban Development, 451 Seventh Street, S.W.,
Washington, DC 20410.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that the policies announced in
this Notice would not have a significant impact on the formation,
maintenance, and general well-being of families except indirectly to
the extent of the social and other benefits expected from this program
of assistance.
Executive Order 12612, Federalism
The General Counsel has determined, as the Designated Official for
HUD under section 6(a) of Executive Order 12612, Federalism, that the
policies contained in this Notice will not have federalism implications
and, thus, are not subject to review under the Order. The promotion of
fair housing policies is a recognized goal of general benefit without
direct implications on the relationship between the national government
and the states or on the distribution of power and responsibilities
among various levels of government.
Drug-Free Workplace Certification
The Drug-Free Workplace Act of 1988 requires grantees of Federal
agencies to certify that they will provide drug-free workplaces. Thus,
each applicant must certify that it will comply with drug-free
workplace requirements in accordance with 24 CFR part 24, subpart F.
Accountability in the Provision of HUD Assistance
HUD has promulgated a final rule to implement section 102 of the
Department of Housing and Urban Development Reform Act of 1989 (HUD
Reform Act). The final rule is codified at 24 CFR part 12. Section 102
contains a number of provisions that are designed to ensure greater
accountability and integrity in the provision of certain types of
assistance administered by HUD. On January 14, 1992, HUD published at
57 FR 1942 additional information that gave the public (including
applicants for, and recipients of, HUD assistance) further information
on the implementation of section 102. The documentation, public access,
and disclosure requirements of section 102 are applicable to assistance
awarded under this NOFA as follows:
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 five-year period beginning not less than 30 days after the award
of the assistance. Material will be made available in accordance with
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. In addition, HUD will include the
recipients of assistance pursuant to this NOFA in its quarterly Federal
Register notice of all recipients of HUD assistance awarded on a
competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice
published in the Federal Register on January 16, 1992 (57 FR 1942), for
further information on these documentation and public access
requirements.)
Disclosures HUD will make available to the public for five years
all applicant disclosure reports (HUD Form 2880) submitted in
connection with this NOFA. Update reports (also Form 2880) will be made
available along with the applicant disclosure reports, but in no case
for a period less than three years. All reports--both applicant
disclosures and updates--will be made available in accordance with the
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing
regulations at 24 CFR part 15. (See 24 CFR subpart C, and the notice
published in the Federal Register on January 16, 1992 (57 FR 1942), for
further information on these disclosure requirements.)
Section 103 HUD Reform Act
HUD's regulation implementing section 103 of the Department of
Housing and Urban Development Reform Act of 1989 was published May 13,
1991 (56 FR 22088) and became effective on June 12, 1991. That
regulation, 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 who have questions should contact the HUD Office of
Ethics (202) 708-3815 (TDD/Voice). (This is not a toll-free number.)
The Office of Ethics can provide information of a general nature to HUD
employees, as well. However, a HUD employee who has specific program
questions, such as whether particular subject matter can be discussed
with persons outside the Department, should contact his or her Regional
or Field Office Counsel, or Headquarters counsel for the program to
which the question pertains.
Section 112 HUD Reform Act
Section 13 of the Department of Housing and Urban Development Act
contains two provisions dealing with efforts to influence HUD's
decisions with respect to financial assistance. The first imposes
disclosure requirements on those who are typically involved in these
efforts--those who pay others to influence the award of assistance or
the taking of a management action by the Department and those who are
paid to provide the influence. The second restricts the payment of fees
to those who are paid to influence the award of HUD assistance, if the
fees are tied to the number of housing units received or are based on
the amount of assistance received, or if they are contingent upon the
receipt of assistance.
Section 13 was implemented by final rule published in the Federal
Register on May 17, 1991 (56 FR 22912) as 24 CFR part 86. If readers
are involved in any efforts to influence the Department in these ways,
they are urged to read the final rule, particularly the examples
contained in Appendix A of the rule.
Authority: Section 561 of the Housing and Community Development
Act of 1987 (42 U.S.C. 3616 note); Title VIII, Civil Rights Act of
1968, as amended (42 U.S.C. 3601-3619); Sec. 7(d), Department of
Housing and Urban Development Act (42 U.S.C. 3535(d)).
Dated: July 27, 1994.
Paul Williams,
General Deputy Assistant Secretary for Fair Housing and Equal
Opportunity.
[FR Doc. 94-19317 Filed 8-8-94; 8:45 am]
BILLING CODE 4210-28-P
