[Federal Register Volume 61, Number 180 (Monday, September 16, 1996)]
[Rules and Regulations]
[Pages 48796-48800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23574]
[[Page 48795]]
_______________________________________________________________________
Part V
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 572
Homeownership of Single Family Homes Program (HOPE 3); Streamlining
Final Rule
Federal Register / Vol. 61, No. 180 / Monday, September 16, 1996 /
Rules and Regulations
[[Page 48796]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 572
[Docket No. FR-3857-F-02]
RIN 2506-AB71
Office of the Assistant Secretary for Community Planning and
Development; Homeownership of Single Family Homes Program (HOPE 3);
Streamlining Final Rule
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Final rule.
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SUMMARY: This rule completes the rulemaking process for an interim rule
on HUD's regulations for the HOPE for Homeownership of Single Family
Homes Program (HOPE 3) Program and further amends the regulations to
comply with the President's regulatory reform initiatives. The rule
streamlines HOPE 3 program regulations by eliminating provisions that
are redundant of statutes or are otherwise unnecessary, and will make
the regulations clearer and more concise. Additional HOPE 3
streamlining proposals that require notice-and-comment rulemaking will
be included in a separate proposed rule that HUD expects to publish
soon in the Federal Register.
EFFECTIVE DATE: October 16, 1996.
FOR FURTHER INFORMATION CONTACT: Gordon McKay, Director, Office of
Affordable Housing Programs, Room 7168, Department of Housing and Urban
Development, 451 7th Street, SW, Washington, DC 20410, telephone number
(202) 708-2685 (this is not a toll-free number). For hearing- and
speech-impaired persons, this number may be accessed via TTY (text
telephone) by calling the Federal Information Relay Service at 1-800-
877-8339.
SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a
memorandum to all Federal departments and agencies regarding regulatory
reinvention. In response to this memorandum, the Department of Housing
and Urban Development conducted a page-by-page review of its
regulations to determine which can be eliminated, consolidated, or
otherwise improved. HUD determined that the regulations for the HOPE
for Homeownership of Single Family Homes Program (42 U.S.C. 12891-
12898a) (HOPE 3) Program could be improved and streamlined.
On July 12, 1995 (60 FR 36016), HUD published an interim rule that
streamlined program implementation, clarified inconsistencies in
previous regulatory provisions, and facilitated grantees' performance
of HOPE 3 programs. HUD received only one comment in response to the
interim rule, from a Housing Authority. The commenter agreed with the
changes made by the final rule, stating that the changes seem to remove
operational burdens and streamline program implementation.
Today's rule makes additional streamlining changes and makes final
changes that were implemented in the interim rule, including:
correcting an inconsistency involving grantee performance in
transferring HOPE 3 properties; lengthening the time grantees are
allowed to use sale and resale proceeds; eliminating a prohibition
against commingling grant or match funds with sale or resale proceeds;
clarifying that the cost of required rehabilitation must be counted,
whenever incurred, when determining whether a homebuyer can afford a
HOPE 3 unit; modifying the definition of income in order to establish a
consistent approach to determining a family's eligibility for the
program and its required monthly payment; updating the references to
the consolidated planning process under part 91 of this title; adding a
paragraph authorizing program closeout procedures; and reducing the
match requirement from 33 to 25 percent for grants awarded after April
11, 1994.
The additional amendments in this rule to Secs. 572.115(a)(2) and
572.210(f) will give HUD Field Offices greater authority to extend
deadlines for transferring homeownership interests and spending
implementation grant funds. This will allow the Field Offices to
provide greater flexibility to grantees when appropriate.
This final rule also removes several provisions in the regulations
that repeat statutory language from title IV, subtitle C, of the
National Affordable Housing Act, 42 U.S.C. 12891-12898) (NAHA), for
example, see Sec. 572.140, Third party rights, which is a grant of
jurisdiction in lawsuits.
It is unnecessary to maintain in the Code of Federal Regulations
(CFR) language that merely repeats statutory requirements, because
those requirements are otherwise fully accessible and binding.
Furthermore, if regulations contain statutory language, HUD must amend
the regulations whenever Congress amends the statute. Therefore, this
final rule removes repetitious statutory language.
In this rule HUD has also consolidated redundant provisions within
part 572. For example, provisions in Sec. 572.210(e) on matching
requirements will now only appear in Sec. 572.220, a separate section
on matching requirements.
In the separate proposed rule, HUD will streamline the competitive
funding provisions in part 572. In the exercise of its discretion with
respect to funding awards, and in view of extremely limited funds that
might become available through repayments, HUD also is clarifying in
this preamble that a previously approved grant amount will not be
amended to increase the grant amount.
Some provisions in the regulations do not have to be maintained in
the Code of Federal Regulations, because of the status of the HOPE 3
program. At this time, HUD does not have significant unobligated HOPE 3
funds, and does not anticipate requesting a new appropriation for HOPE
3 funds. Therefore, HUD is removing provisions on the selection process
and criteria applicable to planning grants. However, because authority
for the program has not been repealed, receipt of resale proceeds will
continue into the future, and the statute specifies a requirement for
certain regulations applicable to planning grants, HUD will maintain
current provisions on planning grants by means of savings clauses in
this final rule (see Secs. 572.200, 572.205, and 572.315). (Similar
provisions on the selection process and criteria relating to
implementation grants, which are not subject to a statutory requirement
for regulations, are proposed for removal in the separate proposed
rule)
HUD does not expect to make any planning grants under the program
in the future, and any current planning grants are already beyond the
original deadline for completion of activities. However, in the event
that planning grants are made in the future, HUD will recodify the
applicable provisions in full. Existing awards remain subject to grant
agreements and the regulatory provisions applicable to those
agreements.
Lastly, HUD is simplifying some language and removing some
provisions in the regulations that do not contain regulatory
requirements. For example, several sections in the regulations contain
nonbinding guidance or explanations (see Secs. 572.130(d) (3) and (4)
and 572.220(b)(2)(ii)). While this information is very helpful to
recipients, HUD will more appropriately provide this information
through other sources, rather than maintaining it in the CFR. For
immediate convenience, an
[[Page 48797]]
uncodified appendix to this rule includes such information that is
being removed from the CFR.
Justification for Final Rulemaking
HUD generally publishes a rule for public comment before issuing a
rule for effect, in accordance with its own regulations on rulemaking
in 24 CFR part 10. However, part 10 provides for exceptions to the
general rule if the agency finds good cause to omit advance notice and
public participation. The good cause requirement is satisfied when
prior public procedure is ``impracticable, unnecessary, or contrary to
the public interest'' (24 CFR 10.1). A number of the provisions in this
final rule were published for comment in an interim rule (60 FR 36016,
July 12, 1995); the one comment received agreed with the changes in
those provisions. HUD finds that good cause exists to publish other
changes included in this rule for effect without first soliciting
public comment. These additional changes merely remove unnecessary
regulatory provisions. Therefore, prior public comment on the
additional changes is unnecessary.
Other Matters
Paperwork Reduction Act Statement
The information collection requirements contained in Secs. 572.225,
572.300, and 572.425 of the HOPE 3 regulations have been submitted to
the Office of Management and Budget for an extension of the control
number, in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520), and assigned OMB control number 2506-0128. A notice
requesting public comment on this extension will be published in the
Federal Register. When assigned, the OMB control number will be
published by a separate notice 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.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this final rule, and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities. This rule merely
makes final program changes that are already in effect and streamlines
regulations by removing unnecessary provisions. The rule will have no
adverse or disproportionate economic impact on small businesses.
Environmental Impact
This rulemaking does not have an environmental impact. This
rulemaking simply makes final an existing regulation and consolidates
and streamlines provisions; it does not alter the environmental effect
of the regulations being amended. A Finding of No Significant Impact
with respect to the environment was made in accordance with HUD
regulations in 24 CFR part 50 that implement section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time
of the interim rule. That finding remains applicable to this rule, and
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 General
Counsel, Room 10276, Department of Housing and Urban Development, 451
Seventh Street, SW, Washington, DC.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this rule
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. No programmatic or policy changes
will result from this rule that would affect the relationship between
the Federal Government and State and local governments.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule will not have
the potential for significant impact on family formation, maintenance,
or general well-being, and thus is not subject to review under the
Order. No significant change in existing HUD policies or programs will
result from promulgation of this rule.
The Catalog of Federal Domestic Assistance number for this
program is 14.240.
List of Subjects in 24 CFR Part 572
Condominiums, Cooperatives, Fair housing, Government property,
Grant programs--housing and community development, Low and moderate
income housing, Nonprofit organizations, Reporting and recordkeeping
requirements.
Accordingly, for the reasons set out in the preamble, the
amendments included in the interim rule at 60 FR 36016 (July 12, 1995)
are adopted as final and part 572 of title 24 of the Code of Federal
Regulations is further amended as follows:
PART 572--HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM
(HOPE 3)
1. The authority citation for part 572 continues to read as
follows:
Authority: 42 U.S.C. 3535(d) and 12891.
Sec. 572.1 [Amended]
2. Section 572.1 is amended by removing paragraph (b) and by
removing the paragraph designation and heading ``Purpose'' of paragraph
(a).
3. Section 572.5 is amended by revising the definitions of
``Displaced homemaker'', ``First-time homebuyer'', and ``Single
parent'', to read as follows:
Sec. 572.5 Definitions.
* * * * *
Displaced homemaker means as the term is defined in 42 U.S.C.
12704. The individual must not have worked full-time, full-year in the
labor force for at least 2 years.
* * * * *
First-time homebuyer means as the term is defined in 42 U.S.C.
12704.
* * * * *
Single parent means as the term is defined in 42 U.S.C. 12896.
4. Section 572.110 is amended by revising the first sentence of
paragraph (b)(1), to read as follows:
Sec. 572.110 Identifying and selecting eligible families for
homeownership.
* * * * *
(b) * * * (1) In making selections for the program, each recipient
must give first preference to qualified residents who legally occupied
units on the date the recipient's application for the implementation
grant was submitted to HUD and to persons residing in the units at the
time the properties are selected. * * *
* * * * *
5. Section 572.115 is amended by revising paragraph (a)(2) to read
as follows:
Sec. 572.115 Transfer of homeownership interests.
(a) * * *
(2) The HUD Field Office may approve a request for an extension of
the deadline in paragraph (a)(1) of this section on a per-program or
per-unit basis if the Field Office determines that all program
activities will be completed in accordance with the timing requirements
of Sec. 572.210(f) (including
[[Page 48798]]
any extension granted under Sec. 572.210(f)).
* * * * *
Sec. 572.130 [Amended]
6. Section 572.130 is amended by removing the examples at the end
of paragraphs (d)(3) and (4).
7. Section 572.140 is revised to read as follows:
Sec. 572.140 Third party rights.
The rights of third parties are governed by 42 U.S.C. 12895(d) and
apply to the requirements of this part.
8. Section 572.200 is revised to read as follows:
Sec. 572.200 Planning grants.
Any planning grants made by HUD under the HOPE 3 program will
continue to be governed by the provisions in this section in effect
immediately before October 16, 1996. When or before HUD announces the
availability of funds for planning grants under this part, these
provisions will be recodified.
9. Section 572.205 is revised to read as follows:
Sec. 572.205 Planning grants--eligible activities.
Any planning grants made by HUD under the HOPE 3 program will
continue to be governed by the provisions in this section in effect
immediately before October 16, 1996. When or before HUD announces the
availability of funds for planning grants under this part, these
provisions will be recodified.
10. Section 572.210 is amended by revising paragraphs (a) and (f)
and by removing and reserving paragraph (e) to read as follows:
Sec. 572.210 Implementation grants.
(a) General authority. HUD will make implementation grants to HOPE
3 applicants for the purpose of carrying out homeownership programs
approved under this part. Applications will be selected in accordance
with selection criteria to be published in a NOFA.
* * * * *
(e) [Reserved]
(f) Deadline for completion. A recipient must spend all
implementation grant amounts within 4 years from the effective date of
the grant agreement. The appropriate HUD Field Office may approve a
request to extend the deadline when it determines that an extension is
warranted.
* * * * *
11. Section 572.220 is amended by:
a. Revising paragraph (a)(1);
b. Adding a new paragraph (a)(3);
c. Revising paragraph (b)(1)(ii)(C);
d. Revising the second sentence in paragraph (b)(2)(i); and
e. Removing the example at the end of paragraph (b)(2)(ii), to read
as follows:
Sec. 572.220 Implementation grants--matching requirements.
(a) * * *
(1) Except as provided in paragraph (a)(3) of this section, each
recipient must assure that matching contributions equal to not less
than 33 percent (or 25 percent for grants awarded after April 11, 1994)
of the amount of the implementation grant shall be provided from non-
Federal sources to carry out the homeownership program. Amounts
contributed to the match must be used for eligible activities or in
accordance with the requirements of this section.
(2) * * *
(3) When the recipient is an IHA, and the IHA (acting in that
capacity) has not received, and will not receive, amounts under title I
of the Housing and Community Development Act of 1974 for the fiscal
year in which HUD obligates HOPE grant funds, the match requirements
under this section will not apply.
(b) * * *
(1) * * *
(ii) * * *
(C) Income from a Federal grant earned after the end of the award
period, if no Federal programmatic requirements govern the disposition
of the program income.
(2) * * *
(i) * * * This limitation is in addition to the 15 percent
limitation on administrative costs (see Sec. 572.215(o)).
* * * * *
12. Section 572.315 is revised to read as follows:
Sec. 572.315 Rating criteria for planning grants.
Any planning grants made by HUD under the HOPE 3 program will
continue to be governed by the provisions in this section in effect
immediately before October 16, 1996. When or before HUD announces the
availability of funds for planning grants under this part, these
provisions will be recodified.
13. Section 572.420 is amended by revising paragraphs (b) and (h)
and by removing and reserving paragraphs (c) and (d), to read as
follows:
Sec. 572.420 Miscellaneous requirements.
* * * * *
(b) Requirements in 24 CFR part 5. The Disclosure requirements;
provisions on Debarred, suspended or ineligible contractors; and Drug-
Free Workplace requirements, as identified in Sec. 5.105 (b), (c), and
(d) of this title, apply to this program.
(c) [Reserved]
(d) [Reserved]
* * * * *
(h) Lead-based paint. Residential property assisted under this
program constitutes HUD-associated housing for purposes of the
requirements of part 35 of this title. Unless otherwise provided,
recipients are responsible for testing and abatement activities.
Dated: September 3, 1996.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
Note: The following Appendix will not be codified in the Code of
Federal Regulation.
Appendix
The material contained in this appendix to the HOPE 3 final rule
published on September 16, 1996 is provided for the convenience of
users of the HOPE 3 regulations. The appendix contains material
removed from codification in 24 CFR part 572 (title 24 of the Code
of Federal Regulations, part 572).
Examples
Calculation under Sec. 572.130(d)(3): The following example
illustrates a calculation under paragraph (3) of Sec. 572.130(d),
which addresses the amount payable under a promissory note with
respect to a sale by an initial homeowner after the first 6 years
and through the 20th year after acquisition.
Example: If the family sells at the end of the 13th year of
homeownership (at the halfway point between the end of the 6th year
and the end of the 20th year of ownership), 84/168 (or one-half) of
the note would be forgiven, and only half of the principal amount of
the note would be payable from sales proceeds. The family could
retain all remaining proceeds, including proceeds due to normal
market value increases in the value of the property. If the initial
homeowner retains ownership for 20 or more years, the entire amount
of the note would be forgiven.
Calculation under Sec. 572.130(d)(4): The following example
illustrates a calculation under paragraph (4) of Sec. 572.130(d),
which addresses the amount payable on a promissory note that is
required to be executed by a subsequent purchaser who purchases the
property for less than the fair market value during the 20-year
period, as measured by the term of the initial promissory note.
Example: If the subsequent homeowner acquires the property from
an initial homeowner at the end of year 4, there are 192 months (16
years x 12 months/year) remaining in the 20-year period. The term
of the promissory note is 16 years. If the subsequent homeowner
sells at the end of year 10, having owned the property for 72 months
(6 years x 12 months/year), 72/192 (37.5 percent) of the note
would be forgiven,
[[Page 48799]]
and 62.5 percent of the principal amount of the note would be
payable from sales proceeds. The family could retain all remaining
proceeds, including proceeds due to normal market value increases in
the value of the property. If the subsequent homeowner retains
ownership until the end of the initial 20-year period (for 16 years,
in the example), the entire amount of the note would be forgiven.
Examples of non-Federal resources that may apply toward matching
requirements as cash contributions, under Sec. 570.220(b)(1)(ii)(C)
(income from a Federal grant earned after the end of the award
period, if no programmatic requirements govern the disposition of
the program income): Repayments from closed out grants under the
Urban Development Action Grant Program (24 CFR part 570, subpart G),
the Housing Development Grant Program (24 CFR part 850), and the
Rental Rehabilitation Program (RRP) when all RRP grant years of
participation by an RRP recipient have been closed out by HUD.
Calculation under Sec. 572.220(b)(2)(ii): The following example
illustrates a calculation under Sec. 572.220(b)(2)(ii), which
addresses the valuation of administrative services contributed
toward the matching requirement applicable to implementation grants.
Example: If the grant amount is $600,000, the recipient must
assure the provision of at least $198,000 (33 percent of grant) or
$150,000 (25 percent of the grant, if awarded after April 11, 1994))
from non-Federal sources, as applicable. Contributions for
administrative costs that may be counted toward the match may not
exceed $42,000 (7 percent of the grant amount of $600,000). Although
a recipient can spend more than this on administrative costs, it may
not be counted towards the match. In addition, the recipient must
provide contributions covering the remaining $156,000 ($198,000-
$42,000) or the remaining $108,000 ($150,000-$42,000 for grants
awarded after April 11, 1994) required for the match from non-
Federal sources.
Planning Grants--Provisions in Effect Immediately Before September 16,
1996:
The following provisions relating to planning grants under the
HOPE 3 program were moved from the CFR by the final rule published
on September 16, 1996. In the event that planning grants are made in
the future, HUD will recodify the applicable provisions in full.
Existing projects remain subject to grant agreements and the
regulatory provisions contained therein:
Former Sec. 572.200--Planning Grants
(a) General authority. HUD will make HOPE 3 planning grants to
applicants for the purpose of developing HOPE 3 homeownership
programs under this part. Applications will be selected in a
national competition in accordance with the selection and NOFA
process described in subpart D of this part. The maximum amount of a
planning grant will be specified in the NOFA.
(b) Overall limitations. (1) If two or more fundable
applications for planning grants propose substantially the same
general locations, the highest ranking application will be selected.
However, HUD may reduce the scope of an application if the size of
the jurisdiction is sufficiently large to justify approval of more
than one grantee. HUD may also approve a planning grant in an area
where an implementation grant already exists or is being approved in
the current funding round as long as the program that could result
from the planning grant will not lead to substantial competition
among grant recipients for eligible properties. However, if a
determination is made that the approval of both a planning grant and
implementation grant will lead to substantial competition for
eligible properties, only the implementation grant will be approved.
(2) A single applicant may apply for more than one planning in
response to any NOFA, but HUD will not approve more than one
planning grant for any one applicant.
(3) An applicant who has previously received a HOPE 3 planning
grant or implementation grant is not eligible for an additional HOPE
3 planning grant.
(4) No amendments to increase previously approved grant amounts
are allowed.
(c) Scope of program. (1) Applications that identify a public
body as the entity to execute the grant agreement may only propose a
program to be carried out within the jurisdiction of that entity.
Applications that identify a private nonprofit organization as the
entity to execute the grant agreement may propose a program to be
carried out within two or more jurisdictions. No application may
propose a program to be carried out in more than one State, except
for Indian tribes or IHAs whose jurisdiction covers more than one
State.
(2) An applicant must demonstrate that at least 10 units in
eligible properties will be available for use in the area proposed
for the program through evidence of current availability or evidence
of availability during the 12-month period prior to submission of
the application.
(d) Deadline for completion of activities.
(1) Activities under a planning grant, including the
requirements outlined in paragraph (d)(2) of this section, must be
carried out within 12 months of the effective date of the planning
grant agreement. HUD Field Offices may extend the period up to 60
days. HUD may deobligate amounts not drawn down by the approved
completion date. HUD Headquarters may approve a request for an
additional extension for costs related to the preparation of an
implementation grant application where it determines an extension is
necessary.
(2) Each recipient must submit either:
(i) An implementation grant application by the deadline date
stated in a HOPE 3 NOFA issued within 12 months of the effective
date of the planning grant agreement; or
(ii) A report on activities undertaken under the planning grant
agreement, including the recipient's determination whether it is
feasible for it to undertake a homeownership program and an
assessment of the factors used to make the determination.
Former Sec. 572.205 Planning Grants--Eligible Activities
Planning grants may be used for the reasonable costs of eligible
activities necessary to develop homeownership programs under this
part. No additional activities may be approved. Applicants are not
required to request funding for each type of eligible activity. Only
costs incurred on or after the effective date of the grant agreement
qualify for funding under this part. Activities eligible under a
planning grant are:
(a) Assessing stock of eligible properties. Assessing the
availability on an ongoing basis of eligible properties of the
appropriate condition, type, and price in specific neighborhoods or
areas to implement a homeownership program. For example, planning
grants may be used to fund the costs of obtaining and analyzing
lists of potentially eligible properties from appropriate Federal,
State, and local agencies and inspecting representative properties,
including inspection for the purpose of evaluating potential lead-
based paint hazards. Technical studies to evaluate environmental
problems and to determine whether mitigation is feasible are
eligible.
(b) Training and technical assistance for grant recipients.
Training of and technical assistance to grant recipients related to
development of a specific homeownership program. This may include,
for example, courses in real estate financing and examining
alternative approaches for carrying out a homeownership program.
Training and technical assistance may only be provided by qualified
entities other than the recipient and may not be provided to any
individual or group other than the grant recipient and any
cooperating entity named in the approved application.
(c) Feasibility studies. Studies of the feasibility of a
specific homeownership program, including whether the program can be
designed to meet the affordability standards under Sec. 572.120 and
achieve financial feasibility.
(d) Preliminary architectural and engineering work. Preliminary
architectural and engineering work, including developing estimates
of the amount of work necessary to support rehabilitation of a
typical unit that may be acquired by an eligible family under the
program and other cost estimates to be included in a HOPE 3
implementation grant application.
(e) Identification of counseling and training curricula and
sources. Identification of course curricula and sources that can
provide homebuyer and homeowner counseling and training, including
such subjects as personal financial management, home maintenance,
home repair, construction skills (to the extent appropriate,
especially where eligible families will do some of the
rehabilitation (``sweat equity''), and general rights and
responsibilities of a homeowner. Development of new curricula is not
an eligible cost.
(f) Economic development planning. Planning for economic
development activities that are eligible implementation grant
activities under Sec. 572.215. The aggregate amount of planning and
implementation grants that may be used for economic development
activities related to any one HOPE 3 program may not exceed
$250,000.
(g) Security plans. Development of security plans. This activity
may cover, where
[[Page 48800]]
necessary, such costs as assessing the need for negotiating
agreements with local law enforcement agencies and for planning
security systems.
(h) Application for an implementation grant. Preparation of an
application for an implementation grant to carry out a homeownership
program under this part.
(i) Administrative costs. Administrative costs necessary to
carry out the eligible activities specified in the approved
application.
Former Sec. 572.315--Rating Criteria for Planning Grants
HUD will review each application for a planning grant that
qualifies for additional consideration under the screening
procedures described in Sec. 572.300(c), in accordance with the
following rating criteria:
(a) Capability. The ability of the applicant to develop a HOPE 3
homeownership program in a reasonable time and in a successful
manner. In assigning points for this criterion, HUD will consider
evidence in the application that demonstrates:
(1) The capability of the applicant to develop a HOPE 3
homeownership program, demonstrated through previous experience of
the applicant or key staff in managing acquisition, rehabilitation,
construction, real estate financing, counseling and training, or
other relevant activities, or by an explanation of how such
capability will be obtained.
(2) The ability of the applicant to handle financial resources,
demonstrated through such evidence as previous experience of the
applicant or key staff and existing financial control procedures, or
an explanation of how such capability will be obtained.
(b) Public/private support. In assigning points for this
criterion, HUD shall consider:
(1) The extent of interest of the unit of general local
government (or Indian tribe, where applicable), or State or
territorial government, and other public agencies, in support of a
homeownership program, demonstrated through evidence of intent to
provide assistance, such as supportive services (including
counseling and training), rehabilitation loans or grants, interest
rate subsidies, water and sewer improvements, street and sidewalk
improvements, and tax abatements.
(2) The extent of interest of the private sector and nonprofit
organizations (including places of worship, banks, neighborhood or
community organizations, the business community, or other community
groups) in support of a home ownership program, demonstrated through
evidence of intent to provide assistance such as the donation of
labor or materials, interest rate reductions or other financing
subsidies, and volunteer assistance in some aspect of the program
(activities of the applicant will not be considered under this
subcriterion).
(c) Need for homeownership program. In assigning points for this
criterion, HUD will consider the relative percentage of the total
number of rental households consisting of persons with incomes at or
below the poverty level, as determined by the Bureau of Census, in
the applicable jurisdiction or jurisdictions.
(d) Planning approach. HUD will consider the extent to which the
proposal represents a sound approach to planning, demonstrates an
understanding of the nature and scope of activities required to
successfully implement a homeownership program, and is likely to
result in a successful homeownership program.
[FR Doc. 96-23574 Filed 9-13-96; 8:45 am]
BILLING CODE 4210-29-P
