FR Doc E7-12583

[Federal Register: June 29, 2007 (Volume 72, Number 125)]
[Notices]
[Page 35849-35868]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29jn07-107]

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Part IV

Department of Housing and Urban Development

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HOPE VI Main Street Grants; Notice

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5139-N-01]

HOPE VI Main Street Grants

AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.

ACTION: Notice of funding availability.

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Overview Information

A. Federal Agency Name. Department of Housing and Urban
Development, Office of Public and Indian Housing.
B. Funding Opportunity Title. HOPE VI Main Street Grants.
C. Announcement Type. Initial announcement.
D. Funding Opportunity Number. FR-5139-N-01; OMB approval number is
2577-0208.
E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA
number for this NOFA is 14.878, ``Affordable Housing Development in
Main Street Rejuvenation Projects.''
F. Dates.
1. Application Submission Date. The application deadline date is
August 29, 2007. Applications must be received and validated by
Grants.gov no later than 11:59:59 p.m. on the application deadline
date. Validation by Grants.gov may occur up to 72 hours after
electronic receipt of the application. See the General Section for
application submission and timely receipt requirements.
2. Estimated Grant Award Date. The estimated award date will be
September 24, 2007.
G. Electronic Application Submission. Applications for this NOFA
must be submitted electronically through http://www.grants.gov/applicants/apply_for_grants.jsp.
Registration or required annual re-

registration to submit an application electronically may take more than
a week because of the following: (1) The applicant's requirement to
register with the Central Contractor Registration (CCR), (2) the cross-
checking of applicant identification numbers between CCR and the
Internal Revenue Service (IRS), (3) applicant registration with the
Grants.gov Web site, and (4) the applicant's requirement to register
the official who will be submitting the application. HUD's Early
Registration Notice can be obtained through HUD's Web site at http://www.hud.gov/
grants/.

See ``Other Submission Requirements'' in Section IV.F of this NOFA
and the General Section for detailed information about application
submission.

Full Text of Announcement

I. Funding Opportunity Description

A. Available Funds. This NOFA announces the availability of
approximately $1.4 million in Fiscal Year (FY) 2006 funds and $1.1
million in FY 2007 funds, an approximate total funds availability of
$2.5 million.
B. Purpose of the Program. The purpose of the HOPE VI Main Street
program is to provide grants to small communities to assist in the
rejuvenation of an historic or traditional central business district or
``Main Street'' area by replacing unused commercial space in buildings
with affordable housing units.
1. The objectives of the program are to:
a. Redevelop Main Street areas;
b. Preserve historic or traditional architecture or design features
in Main Street areas;
c. Enhance economic development efforts in Main Street areas; and
d. Provide affordable housing in Main Street areas.
C. Statutory Authority.
1. The program authority for the HOPE VI Main Street program is
Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v),
as amended by Section 535 of the Quality Housing and Work
Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 2461, approved
October 21, 1998), as amended; the HOPE VI Program Reauthorization and
Small Community Mainstreet Rejuvenation and Housing Act of 2003 (Pub.
L. 108-186, 117 Stat. 2685, approved December 16, 2003); and the
Revised Continuing Appropriations Resolution, 2007 (Pub. L. 110-5,
approved February 15, 2007).
2. The funding authority for the HOPE VI Main Street program is
provided by the District of Columbia, and Independent Agencies
Appropriations Act, 2006 (Pub. L. 109-115, approved November 30, 2005),
under Revitalization of Severely Distressed Public Housing (HOPE VI)
and the Revised Continuing Appropriations Resolution, 2007 (Pub. L.
110-5, approved February 15, 2007).
3. The HOPE VI Program Reauthorization and Small Community
Mainstreet Rejuvenation and Housing Act of 2003 states that, of the
amount appropriated for the overall HOPE VI program for any fiscal
year, the Secretary shall provide up to 5 percent for use only for the
Main Street initiative. The statute amended Section 24(n) of the Act,
which now provides for grants to smaller communities, to provide
assistance to carry out eligible affordable housing activities.
D. Definition of Terms.
1. Affordable housing for this NOFA means rental or homeownership
dwelling units that, for INITIAL occupants:
a. Are made available to low-income families, with a subset of
units made available to very low-income families; and
b. Provide the same rules regarding occupant contribution toward
rent or purchase, and basic terms of rental or purchase, as are
provided to occupants of public housing units in a HOPE VI development.
Rights and responsibilities vary among HOPE VI developments. HOPE VI
public housing units use various mechanisms to set the resident portion
of rent, resident job training or employment requirements, resident
rights of return, and other occupancy issues. The Grantee, with HUD's
approval, determines how to implement these initial resident
safeguards. Strict application of public housing rules and regulations
is not required; e.g., the use of HUD forms and record-keeping
requirements for occupancy and income. Units developed, rehabilitated
or reconfigured through this NOFA are NOT and statutorily MUST NOT BE
public housing units.
2. Applicant Team (``Team'') means the group of entities that will
develop the Main Street affordable housing project (``project''). The
Team includes the unit of local government that submits the application
and, where applicable, the procured developer, the procured property
manager, architects (including architects who are knowledgeable about
universal design and Section 504 accessible design requirements),
construction contractors, attorneys, investment partners that comprise
an owner entity, and other parties that may be involved in the
development and management of the project.
3. Community and Supportive Services (``CSS'') means services
provided to residents of the project that may include, but are not
limited to:
a. Homeownership counseling that is scheduled to begin promptly
after grant award so that, to the maximum extent possible, qualified
residents will be ready to purchase new homeownership units when they
are completed;
b. Educational life skills, job readiness and retention, employment
training, and other activities as described on HUD's HOPE VI Web site
at http://www.hud.gov/offices/pih/programs/ph/hope6/css/; and

c. Coordination with fair housing groups to educate the Main Street

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affordable housing project's targeted population on its fair housing
rights.
4. Firmly committed means that the amount of match or of Leverage
resources and their dedication to HOPE VI Main Street activities, must
be explicit, in writing, and signed by a person authorized to make the
commitment.
5. General Section means the Notice of HUD's Fiscal Year (FY) 2007
Notice of Funding Availability (NOFA); Policy Requirements and General
Section to the FY 2007 SuperNOFA for HUD's Discretionary Programs;
Notice, Docket No. FR-5100-N-01, published in the Federal Register on
January 18, 2007. The General Section can be obtained through HUD's Web
site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

6. Homeownership unit means a housing unit that a local government
makes available through a grant from this NOFA for purchase by low-
income families for use as their principal residence.
7. Initial occupancy period means the period of time that a rental
unit is occupied by the initial low-income resident or the period of
time that a homeownership unit is owned by the initial third-party,
low-income purchaser. There is no set requirement for the length of
this occupancy period.
8. Jurisdiction means the physical area under the supervision of a
local government.
9. Leverage means non-HOPE VI-funded donations of cash and in-kind
services that are firmly committed to the rejuvenation of the Main
Street Area and are from non-HOPE VI sources.
a. Leverage may include funds/in-kind services that are already
expended, received but not expended, and firmly committed but not yet
received. See the definition of ``firmly committed'' in Section 4.,
above.
b. Types of resources that may be counted include:
(1) Private mortgage-secured loans, insured loans, and other debt;
(2) Housing trust funds;
(3) Net sales proceeds from a homeownership project that exceed the
amount of HOPE VI funds used to develop the homeownership unit;
(4) Tax Increment Financing (TIF);
(5) Proceeds from Low-Income Housing Tax Credits (LIHTC), Historic
Preservation Tax Credits, and Tax Exempt Bonds;
(6) Land Sale Proceeds. The value of land sale proceeds may be
included as leverage only if this value is a sales proceed. Absent a
sales transaction, the value of land will not be counted;
(7) Other Federal Funds. Other Federal sources may include non-
public housing funds provided by HUD;
(8) In-Kind Services, including donations of:
(9) Staff time of either the local government applicant or the
recognized developer entity;
(10) Property such as land (donations of land may be counted as
leverage only if the donating entity owns the land to be donated),
materials, supplies, a building, a lease on a building, and other
infrastructure;
(11) Services such as Homeownership Counseling, other CSS and
family self-sufficiency (FSS) resources, and time and services
contributed by volunteers.
(12) Leverage does NOT include, and HUD will not count, Wages
projected to be paid to residents through jobs that are provided
through Section 3, or by FSS/CSS partners.
10. Local government means any city, county/parish, town, township,
parish, village, or other general purpose political subdivision of a
State; Guam, the Northern Mariana Islands, the Virgin Islands, American
Samoa, the District of Columbia, and the Trust Territory of the Pacific
Islands, or a general purpose political subdivision thereof; or a
combination of such political subdivisions that is recognized by the
Secretary.
11. Low-income limits prescribed by HUD are stated on the internet
at http://www.huduser.org/datasets/il/il2007/select_Geography.odb.

Low-Income family means a family (resident) with an income equal to or
less than 80 percent of median income for the local area, adjusted for
family size, in accordance with Section 3(b)(2) of the United States
Housing Act of 1937, as amended. HUD may establish a level higher or
lower than 80 percent because of prevailing construction costs or
unusually high or low family incomes in the area. Local area is defined
as the nonmetropolitan county/parish or primary metropolitan
statistical area/metropolitan statistical area (PMSA/MSA) or county/
parish, as prescribed by HUD, in which the low-income family resides.
12. Main Street Area means an area determined and designated by the
applicant that fulfills the requirements stated in ``Program
Requirements,'' Section III.C of this NOFA, and:
a. Is within the jurisdiction of the applicant;
b. Has specific boundaries that are determined by the applicant;
c. Is or was:
(1) Traditionally the central business district and center for
socio-economic interaction;
(2) Characterized by a cohesive core of historic and/or older
commercial and mixed-use buildings, often interspersed with civic,
religious, and residential buildings, which represent the community's
architectural heritage;
d. Is the location of a downtown or ``Main Street'' rejuvenation
effort that:
(1) Has as its purpose the revitalization or redevelopment of the
historic or traditional commercial area;
(2) Involves investment, or other participation, by the applicant
local government and private entities in the community in which the
project is carried out; and
(3) Involves the development of affordable housing that is located
in the commercial area.
13. Main Street affordable housing project (``project'') means the
collection of affordable housing units that are developed in the Main
Street Area using funds obtained through this NOFA, and meet the
requirements as stated in ``Program Requirements,'' Section III.C of
this NOFA.
14. Match is cash or in-kind donations that will be expended on
allowable activities under the grant. The match must:
a. Total at least 5 percent of the requested HOPE VI Main Street
grant amount; and
b. Be from government or private-sector sources other than HOPE VI
funding, including Community Development Block Grant (CDBG) funds,
which by statute are considered local money.
15. Owner entity is the legal entity that holds title to the real
property that contains any affordable housing units developed through
this NOFA.
16. Person with disabilities means a person who:
a. Has a condition defined as a disability in Section 223 of the
Social Security Act;
b. Has a developmental disability as defined in Section 102 of the
Developmental Disabilities Assistance Bill of Rights Act; or
c. Is determined to have a physical, mental, or emotional
impairment that:
(1) Is expected to be of long-continued and indefinite duration;
(2) Substantially impedes his or her ability to live independently;
and
(3) Is of such a nature that such ability could be improved by more
suitable housing conditions.
d. The term ``person with disabilities'' may include persons who
have acquired immunodeficiency syndrome (AIDS) or any conditions
arising from the etiologic agent for AIDS. In addition, no individual
shall be considered a person with disabilities, for purposes of

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eligibility for low-income housing, based solely on any drug or alcohol
dependence.
e. The definition provided above for persons with disabilities is
the proper definition for determining program qualifications. However,
the definition of a person with disabilities contained in Section 504
of the Rehabilitation Act of 1973 and its implementing regulations must
be used for purposes of reasonable accommodations.
17. Program means the HOPE VI Main Street Program.
18. Recognized developer means the local government applicant or a
legal entity that has an agreement with the local government applicant
to seek financing for, rehabilitation and/or construction of housing
units, and the provision of Community and Supportive Services (if
required), for a HOPE VI Main Street grantee.
a. For a non-complex development, the applicant may choose not to
use a developer and instead directly procure a design/build
construction contractor and accountant.
19. Site Control means the local government applicant, or its
developer, has the legal authority to commit the owner of the property
to the rehabilitation to be performed with HOPE VI Main Street grant
funds. Some examples of site control are:
a. The local government owns the property outright;
b. The private owner of the property and the applicant have signed
a developer agreement and the private owner is the developer;
c. The government- or private-owner has signed a developer
agreement with a separate developer and the agreement gives the
developer site control;
d. The applicant or developer has an option to purchase the
property that covers a time period sufficient to obtain grant funds for
purchase (at least 180 days after award), and is contingent only upon:
(1) Receipt of a grant from this NOFA; and (2) satisfactory compliance
with this NOFA's environmental review requirements;
e. An owner-entity partnership was formed between the applicant,
original owner, and, possibly, the developer and other interested
parties.
20. Unit of local government: See ``local government'' under this
section.
21. Very low-income family means a family (resident) with an income
equal to or less than 50 percent of median income for the local area,
adjusted for family size, in accordance with Section 3(b)(2) of the
United States Housing Act of 1937, as amended. HUD may establish a
level higher or lower than 50 percent because of prevailing
construction costs or unusually high or low family incomes in the area.
HUD-prescribed income limits are stated at http://www.huduser.org/datasets/il/il2007/select_Geography.odb.
Local area is defined as the

PMSA/MSA or nonmetropolitan county/parish, as prescribed by HUD, in
which the low-income family resides.
22. General Section reference. The subsection entitled ``Funding
Opportunity Description'' in Section I of the General Section is hereby
incorporated by reference.

II. Award Information

A. Available Funds. A total of approximately $1.4 million
appropriated for FY 2006 and $1.1 million appropriated for FY 2007,
totaling approximately $2.5 million, is available for funding under
this NOFA and must be obligated by September 30, 2007.
B. Number of Awards. This NOFA will result in approximately 3
awards.
C. Range of Amounts of Each Award. Each applicant may request up to
$1,000,000.
D. Start Date, Period of Performance. The term of the grants that
result from this NOFA will start on the date that the grant award
document is signed by HUD and will continue for 30 months thereafter.
E. Type of Instrument. Grant Agreement.
F. Supplementation. Grants resulting from this NOFA do not
supplement other HOPE VI grants.

III. Eligibility Information

A. Eligible Applicants. Eligible applicants include, and are
limited to, local governments, as defined in Section I.D of this NOFA
and Section 102 of the Housing and Community Development Act of 1974
(42 U.S.C. 5302). The local government must:
1. Have a population of 50,000 or less; and
2. Not be served by a local government, county/parish, or regional
or State public housing agency (PHA) that administers more than 100
public housing units within the local government's jurisdiction. Such
units exclude Section 8 Housing Voucher subsidized units and public
housing units in Mixed-Finance developments where the public housing
agency is not the General Partner in the for-profit ownership entity.
B. Cost Sharing or match.
1. Match. HUD is required by the Quality Housing and Work
Responsibility Act (42 U.S.C. 1437v(c)(1)(A)) to include the
requirement for matching funds for all HOPE VI-related grants.
Applicants must provide matching funds or in-kind services in the
amount of 5 percent of the requested grant amount from sources other
than HUD HOPE VI funds. Match sources may include other Federal
sources, CDBG funds (which are statutorily considered local funds), any
State or local government sources, any private contributions, the value
of any donated material or building, the value of any lease on a
building, the value of the time and services contributed by volunteers,
and the value of any other in-kind services provided. MATCH FUNDS MUST
BE USED ONLY FOR CARRYING OUT ELIGIBLE AFFORDABLE HOUSING ACTIVITIES
THAT RELATE TO THE MAIN STREET AFFORDABLE HOUSING PROJECT PRESENTED IN
THIS APPLICATION. The match may include funds that have already been
spent or funds that are for future use.
a. Match donations must be firmly committed to the Main Street
affordable housing project presented in the application. See the
definition of ``firmly committed'' in ``Definitions,'' Section I.D of
this NOFA.
b. The applicant may propose to use the applicant's own funds to
meet the match requirement, provided that the match funds do not
originate from HOPE VI funds.
c. See Section IV.B of this NOFA for the requirements for
documentation of match resources.
C. Other.
1. Eligible Uses of Grant Funds. Main Street grant funds may be
expended on the following activities:
a. New construction, reconfiguration, or rehabilitation of
affordable rental and homeownership housing located within the Main
Street Area. New construction and rehabilitation activities that are
intrinsic to the development of the affordable housing units may extend
to other portions of the Main Street affordable housing project; e.g.,
to the building envelope, to interior bearing walls of commercial space
located below the affordable housing units, and to systems installation
through commercial space located below or adjacent to the affordable
housing units.
b. Architectural and Engineering activities, surveys, permits, and
other planning and implementation costs related to the construction and
rehabilitation of the Main Street affordable housing project presented
in the application.
c. Tax credit syndication costs.
d. Funding of moving expenses for low-income residents displaced as
a result of construction or rehabilitation of the project, in
accordance with the

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Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA) and Handbook CPD 02-08, ``Guidance on the Application
of the Uniform Relocation Assurance and Real Property Acquisition
Policies Act of 1970 (URA), as amended in HOPE VI Projects.''
e. Management improvements necessary for the proper development and
management of the Main Street affordable housing project presented in
the application, similar to and including, but not limited to:
(1) Staff training (including travel) related to affordable housing
development and management.
(2) Staff time and materials or contractor services to revise or
develop:
(a) Procedure manuals;
(b) Accounting systems, excluding accounting services;
(c) Lease documents;
(d) Resident screening procedures; and
(e) Data processing systems.
f. Leveraging non-HOPE VI funds and in-kind services. See the
definition of ``Leverage'' in Section I.D of this NOFA.
g. Community and Supportive Services. See Funding Restrictions in
Section IV.E of this NOFA.
(1) Only 15 percent of the grant amount may be used for Community
and Supportive Services. See ``Funding Restrictions,'' Section IV.E of
this NOFA, for non-allowable costs and activities.
2. Thresholds.
a. Match. Applicants must provide matching funds in the amount of 5
percent of the requested grant amount from sources other than HUD HOPE
VI funds. See ``Cost Sharing or match,'' Section III.B of this NOFA.
(1) In order to demonstrate that the applicant meets this
threshold, for each match resource, the application must include a
letter stating the match amount and that the match is firmly committed
to be used for activities related to the particular Main Street
affordable housing project presented in the application. Each match
resource must also be listed on page 12 of the ``HOPE VI Main Street
Application Data Sheet,'' form HUD-52861, (under the Excel Worksheet
Tab, ``matching and Housing Resources'') which will be a part of the
application. Columns on that page provide space to include the
following required information for each source: Resource organization
name, name and telephone number of a contact at the resource
organization, the amount of the resource organization's contribution,
and whether the contribution is in cash or in-kind services. All
columns, except the last, ``Leverage Period More than 2 Years,'' must
be filled in.
(2) If the applicant does not demonstrate that there will be
matching funds of at least 5 percent of the requested grant amount, the
application will not be eligible for funding through this NOFA.
b. Main Street Area. The applicant must have within its
jurisdiction a Main Street Area. See Section I.D of this NOFA for the
definition of a Main Street Area.
(1) In order to demonstrate that the applicant meets this
threshold, the application must contain the attachment ``Map of the
Main Street Area.'' The attached map must clearly show the applicant-
determined Main Street Area boundaries. Boundaries may be streets, rail
lines, rivers, or other man-made or natural bounds. No other
documentation is necessary.
(2) If the applicant's jurisdiction does not have a Main Street
Area, the application will not be eligible for funding through this
NOFA.
c. Main Street Affordable Housing Project (``Project''). The
targeted affordable housing project must conform to this NOFA's
requirements for a Main Street affordable housing project, as defined
in ``Program Requirements,'' Section III.C of this NOFA.
(1) By applying for a grant through this NOFA, the applicant
certifies that the Main Street affordable housing project meets the
Program Requirements. No other documentation is necessary to meet this
threshold.
(2) If the targeted affordable housing project does not conform to
this NOFA's requirements, the application will not be eligible for
funding through this NOFA.
d. One Main Street Area. Under this NOFA, the applicant must apply
for assistance only in support of one Main Street Area. That is, if the
local government's jurisdiction includes two neighborhoods, each with a
traditional commercial/social center, the application must contain only
one of those traditional commercial/social centers. However, the
applicant's Main Street affordable housing project may consist of
several scattered sites within that one Main Street Area. If the
applicant applies for assistance for more than one Main Street Area
through this NOFA, the application will not be eligible for funding
through this NOFA.
e. Code of Conduct.
(1) The applicant must have developed and must maintain a written
code of conduct (see 24 CFR 84.42 and 85.36(b)(3)). The applicant must
provide, or have provided, documentation that demonstrates that it has
a written code of conduct.
(2) The applicant must submit a copy of its code of conduct as part
of the application if its code of conduct is not already on file with
HUD. See 24 CFR 84.42 and 85.36(b)(3).
(3) Unless the applicant is listed on HUD's Web site at http://www.hud.gov/offices/adm/grants/codeofconduct/cconduct.cfm
and the

information has not been revised, the applicant is required to submit:
(a) A copy of its code of conduct;
(b) A description of the methods it will use to ensure that all
officers, employees, and agents of its organization are aware of its
code of conduct; and
(c) The following information, as it is stated on the SF-424:
(i) Dun and Bradstreet Data Universal Numbering System (DUNS)
number;
(ii) Employer Identification Number (EIN);
(iii) Applicant's Legal Name (Note: Applicants must enter their
legal name in box 8.a. of the SF-424 as it appears in the Central
Contractor Register (CCR). See the General Section regarding CCR
registration);
(iv) Address (Street, PO Box, City, State, and ZIP Code); and
(d) Authorized Official's information (Name, Title, Telephone
Number, and E-mail Address).
(4) The code of conduct must prohibit real and apparent conflicts
of interest that may arise among officers, employees, or agents;
prohibit the solicitation and acceptance of gifts or gratuities by the
organization's officers, employees, or agents for their personal
benefit in excess of minimal value; and outline administrative and
disciplinary actions available to remedy violations of such standards.
(5) See Section III.C of the General Section for more detailed
information and instructions if the applicant needs to submit its code
of conduct to HUD via facsimile.
(6) If the applicant does not provide a copy of the code of
conduct, and its implementation methodology in its application, or is
not listed by HUD as having already submitted such documentation, the
application will not be eligible for funding through this NOFA.
f. The following sub-sections of Section III of the General Section
are hereby incorporated by reference. The applicant must comply with
each of the incorporated threshold requirements in order to be eligible
for funding, including:
(1) Ineligible Applicants;
(2) DUNS Number Requirement;

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(3) Compliance with Fair Housing and Civil Rights Laws;
(4) Conducting Business In Accordance with Core Values and Ethical
Standards;
(5) Delinquent Federal Debts;
(6) Pre-Award Accounting System Surveys;
(7) Name Check Review;
(8) False Statements;
(9) Prohibition Against Lobbying Activities; and
(10) Debarment and Suspension.
3. Certification of Certain Thresholds.
a. Certification by Application. The SF-424, ``Application for
Federal Assistance,'' is the cover sheet to the application. By
manually or electronically signing the SF-424, the applicant certifies
that the following thresholds have been met:
(1) The Main Street Area rejuvenation effort:
(a) Is carried out within the jurisdiction of the applicant;
(b) Involves the development of affordable housing that is located
in the commercial area that is the subject of the rejuvenation effort;
and
(c) Has as its purpose the revitalization or redevelopment of a
historic or traditional commercial area.
(2) A portion of the Main Street affordable housing project units
will be reserved for very low-income initial occupants.
(3) Historic preservation requirements in Section 106 of the
National Historic Preservation Act of 1966 (NHPA) will be fulfilled,
where applicable.
(4) Environmental requirements stated in the NOFA will be
fulfilled.
(5) Building standards stated in the NOFA will be fulfilled.
(6) Relocation requirements under the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 (URA) will be
fulfilled.
(7) Fair Housing, Civil Rights, and Section 3 requirements will be
followed and fulfilled.
4. Program Requirements.
a. Main Street Area Recognition by HUD. The applicant must have,
within the applicant's jurisdiction, a HUD-recognized Main Street Area
rejuvenation effort that involves affordable housing. In order to be
recognized by HUD, a Main Street Area rejuvenation effort must:
(1) Be located within a definable Main Street Area (See Section I.D
of this NOFA);
(2) Have as its purpose the rejuvenation or redevelopment of a
historic or traditional commercial area;
(3) Involve investment or other participation by BOTH the local
government and locally located private entities;
(4) Comply with historic preservation requirements as directed by
the cognizant State Historic Preservation Officer (SHPO) or, if such
historic preservation requirements are not applicable, to preserve
significant traditional, architectural, and design features in the
project structures or Main Street Area; and
(5) Include the development of the Main Street affordable housing
project that is proposed and described in the application for a grant
under this NOFA.
b. Main Street Affordable Housing Project (Project). The ``Main
Street affordable housing project'' is the collection of affordable
housing units that are rejuvenated or developed in the Main Street Area
using funds obtained through this NOFA and related match funds. The
project must:
(1) Involve the construction or rehabilitation of affordable
housing units. The number of units that will be developed through this
NOFA must at least equal the number of units stated in form HUD-52861,
``HOPE VI Main Street Application Data Sheet,'' on the ``Unit Mix and
Accessibility Summary, Post-Revitalization'' page;
(2) Be located within the boundaries of the applicant's Main Street
Area; and
(3) NOT replace demolished or otherwise disposed of public housing
units.
c. Program Schedule. The application requires a Program Schedule
for the applicant's Project. The Program Schedule must reflect the
Reasonable Time-Frame and Development Proposal time requirements stated
in Section VI.B of this NOFA.
d. Requirements During the Initial Occupancy Period.
(1) Initial residents of affordable rental units and initial
resident purchasers of affordable homeownership units must be subject
to the same rules regarding occupant contribution toward rental or
purchase, and basic terms of rental or purchase, as residents of HOPE
VI development public housing units. Site-based waiting lists, resident
job or training requirements, and other occupancy requirements that are
allowed under Section 24 of the U.S. Housing Act of 1937 (1937 Act) may
be applied to the units.
(2) The project owner entity is not required to develop and
maintain mandatory PHA documentation; e.g., the PHA Plans as described
in 24 CFR part 903, etc. However, before the project is initially
rented, the ownership entity must determine, develop, and obtain HUD
approval of a written statement of its rent determination and occupancy
policies.
(3) Public housing, HUD HOME, or Low-Income Housing Tax Credit
rental requirements are not mandatory under the Main Street program,
but may be used as examples for such policies. Such examples are
located at 24 CFR 903.7(d) and 24 CFR 903.7(f). If other government
programs are used in connection with the applicant's Main Street grant
activities, such requirements apply to the extent required by the other
programs.
e. Main Street Homeownership. The initial sale of an affordable
homeownership unit to a third-party, low-income purchaser must take
place in accordance with Section 24 of the 1937 Act. Providing
homeownership counseling to residents is mandatory if the application
includes development of homeownership units.
f. Use Restrictions. PROJECT UNITS MUST BE MAINTAINED AS AFFORDABLE
HOUSING ONLY FOR THE PERIOD OF INITIAL RENTAL OCCUPANCY OR THE INITIAL
RESIDENT'S OWNERSHIP. The applicant may elect to apply use restrictions
for a longer period, or in excess, of this requirement.
g. Leveraging Other Resources.
(1) The Main Street Area rejuvenation effort must have community
support from government and the private sector. Leverage, or the
contribution of funds or in-kind services from sources other than a
grant that results from this NOFA, demonstrates this support. See
``Leverage'' in ``Definitions,'' Section I.D of this NOFA. To measure
the amount of support that the Main Street Area rejuvenation effort
has, this NOFA includes a Leverage rating factor. See Rating Factor
3(c) in Section V.A.3 of this NOFA.
(2) Unlike grant and match funds from this NOFA, Leverage is not
limited to the funding of affordable housing development. Leverage can
include contributions that have been made to, or are firmly committed
to, the Main Street Area rejuvenation effort as a whole. It can include
past or future funding for other affordable housing, retail supportive
services, jobs, and other economic development that is part of the Main
Street Area rejuvenation effort. Other examples of uses for Leverage
funds include, but are not limited to:
(a) The acquisition of existing housing units that will become
affordable housing, but do not require rehabilitation, including
associated costs, such as appraisals, surveys, tax settlements, broker
fees, and other closing costs;
(b) Off-site site improvements that are contiguous to the site;
(c) Demolition;

[[Page 35855]]

(d) Restoration of the Main Street affordable housing project
facade when facade rehabilitation is not an integral part of the
project's rehabilitation;
(e) Rehabilitation of retail space in the Main Street affordable
housing project, even if this rehabilitation is not an integral part of
the rehabilitation of the rental areas of the project;
(f) Rehabilitation of retail space elsewhere in the Main Street
Area;
(g) Funding of Reserves; e.g., the Initial Operating Reserve
necessary for financial viability during the initial affordable housing
occupancy period, Replacement Reserves, etc.;
(h) Homeownership financial assistance, e.g., write-down of
homeownership unit development costs and downpayment assistance;
(i) Other uses that relate directly to the Main Street affordable
housing project;
(j) Site improvements, e.g., repaving streets or upgrading streets
or sidewalks with brick or cobblestone, adding ``boulevard'' islands,
etc.;
(k) Legal and administrative fees and costs; and
(l) Other uses that do not relate directly to the Main Street
affordable housing project, but do relate to the Main Street Area
rejuvenation effort.
h. Transfer of Title for Tax Credits. The original owner entity of
Main Street affordable housing project properties may transfer title
to, or commit to a long-term lease with, an owner entity partnership
that includes the original owner, the applicant, an equity partner and,
when appropriate, other partners, for the purpose of obtaining Low-
Income or Historic Tax Credit equity as a leverage resource. Such a
transfer, excluding legal fees, is an allowable grant activity. See
Section IV.E of this NOFA for limits on the sale of real property.
i. Section 106 Historic Preservation Requirements. Grantees may not
commit HUD funds until HUD has completed the historic preservation
review and consultation process under Section 106 of the National
Historic Preservation Act of 1966 (16 U.S.C. 470f) and its implementing
regulation, 36 CFR part 800, as applicable, in accordance with
environmental review requirements under 24 CFR part 50. See http://www.achp.gov/
for details on the Section 106 review process.

j. Environmental Requirements.
(1) HUD's notification of award to a selected applicant constitutes
a preliminary approval by HUD, subject to HUD's completion of an
environmental review of proposed sites in accordance with 24 CFR part
50. Selection for participation (preliminary approval) does not
constitute approval of the proposed site(s).
(2) Your application constitutes a certification that you, the
applicant, will supply HUD with all available, relevant information
necessary for HUD to perform any environmental review required by 24
CFR part 50 for each property; will carry out mitigating measures
required by HUD or, if mitigation is not feasible, select alternate
eligible property; and will not acquire, rehabilitate, convert,
demolish, lease, repair, or construct property, nor commit or expend
HOPE VI, other HUD or other non-HUD funds, for these program activities
with respect to any eligible property, until you receive written HUD
approval of the property.
(3) Each proposal will be subject to a HUD environmental review, in
accordance with 24 CFR part 50, and the proposal may be modified or the
proposed sites rejected as a result of that review.
(4) Phase I and Phase II Environmental Site Assessments. If you are
selected for funding, you must have a Phase I environmental site
assessment completed in accordance with the ASTM Standards E 1527-05,
as amended (see http://www.astm.org). The results of the Phase I

assessment must be included in the documents that must be provided to
HUD for the environmental review. If the Phase I assessment recognizes
environmental concerns or if the results are inconclusive, a Phase II
environmental site assessment will be required.
(5) Mitigating and remedial measures. You must carry out any
mitigating/remedial measures required by HUD. If a remediation plan,
where required, is not approved by HUD and a fully funded contract with
a qualified contractor licensed to perform the required type of
remediation is not executed, HUD reserves the right to determine that
the grant is in default.
(6) Your application constitutes a certification that there are not
any environmental or public policy factors, such as sewer moratoriums,
that would preclude development in the requested Main Street Area.
(7) Note that environmental requirements for this NOFA are found in
24 CFR part 50, which requires HUD environmental approval. Please note
that 24 CFR part 58, which allows State and local governments to assume
Federal environmental responsibilities, is not applicable.
(8) HUD's environmental Web site is located at http://www.hud.gov/offices/cpd/environment/index.cfm
.

k. Building Standards.
(1) Building Codes. All activities that include construction,
rehabilitation, lead-based paint removal, and related activities must
meet or exceed local building codes. The applicant is encouraged to
read the policy statement and Final Report of the HUD Review of Model
Building Codes that identify the variances between the design and
construction requirements of the Fair Housing Act and several model
building codes. That report can be found on the HUD Web site at http://www.hud.gov/offices/fheo/disabilities/modelcodes/
.

(2) Deconstruction. HUD encourages the applicant to design programs
that incorporate sustainable construction and demolition practices,
such as the dismantling or ``deconstruction'' of housing units,
recycling of demolition debris, and reusing of salvage materials in new
construction. ``A Guide to Deconstruction'' can be found at http://www.huduser.org/publications/destech/decon.html
.

(3) Partnership for Advancing Technology in Housing (PATH). HUD
encourages the applicant to use PATH technologies in the construction
and delivery of affordable housing. PATH is a voluntary initiative that
seeks to accelerate the creation and widespread use of advanced
technologies to improve radically the quality, durability,
environmental performance, energy efficiency, and affordability of our
nation's housing.
(a) The goal of PATH is to achieve dramatic improvement in the
quality of U.S. housing by the year 2010. PATH encourages leaders from
the home building, product manufacturing, insurance, and financial
industries and representatives from Federal agencies dealing with
housing issues to work together to spur housing design and construction
innovations. PATH will provide technical support in design and cost
analysis of advanced technologies to be incorporated in project
construction.
(b) Applicants are encouraged to employ PATH technologies to exceed
prevailing national building practices by:
(i) Reducing costs;
(ii) Improving durability;
(iii) Increasing energy efficiency;
(iv) Improving disaster resistance; and
(v) Reducing environmental impact.
(c) More information, including a list of technologies, the latest
PATH Newsletter, results from field demonstrations, and descriptions of
PATH projects can be found at http://www.pathnet.org.

(4) Energy Efficiency.
(a) New construction and rehabilitation must comply with the

[[Page 35856]]

2003 International Energy Conservation Code (IECC 2003), which
incorporates American Society of Heating, Refrigeration and Air
Conditioning Engineers (ASHRAE) 90.1 2001 by reference for high-rise
multifamily housing.
(i) IECC 2003 Administrative Guidance. IECC 2003 applies to all
construction and rehabilitation of residential and commercial property.
The standard contains exceptions that allow for its reasonable
application to Main Street NOFA activities.
(A) IECC 2003 Section ``101.2.2.3 Historic buildings. The
provisions of this code * * * shall not be mandatory for existing
buildings or structures specifically identified and classified as
historically significant by the State or local jurisdiction, listed in
The National Register of Historic Places, or which have been determined
to be eligible for such listing.''
(B) IECC 2003 Section ``101.2.3 Mixed occupancy. [For mixed-use
buildings,] * * * each portion of the building shall conform to the
requirements for the occupancy housed therein. Buildings [with more
than two housing units] with a height of four or more stories above
grade shall be considered commercial buildings * * * regardless of the
number of floors that are classified as residential.'' That is, if
there is a store in the building, that part of the building is
considered commercial. The rest of the building would incorporate low-
rise residential requirements.
(C) IECC 2003 Section ``101.2.2.2 Additions, alterations or
repairs. Additions [and rehabilitation of a building or portion of a
building] * * * shall conform to the provisions of this code * * *
without requiring the unaltered portions(s) of the existing system to
comply with all of the requirements of this code. Additions [or
rehabilitation] shall not cause any one of the aforementioned and
existing systems to become unsafe, hazardous or overloaded.''
(b) Where local or State energy-related building codes exceed the
above standards, new construction and rehabilitation must comply with
those local or State standards.
(c) The applicant must use new technologies that will conserve
energy and decrease operating costs, where cost effective. Examples of
such technologies include:
(i) Geothermal heating and cooling;
(ii) Placement of buildings and size of eaves that take advantage
of the directions of the sun throughout the year;
(iii) Photovoltaics (technologies that convert light into
electrical power);
(iv) Extra insulation;
(v) Smart windows;
(vi) Energy Star appliances; and
(vii) Combined heat and power (cogeneration).
(5) Universal Design. HUD encourages the applicant to incorporate
the principles of universal design in the construction or
rehabilitation of housing, retail establishments, and community
facilities, and when communicating with community residents at public
meetings or events. Universal Design is the design of products and
environments to be usable by all people, to the greatest extent
possible, without the need for adaptation or specialized design. The
intent of Universal Design is to simplify life for everyone by making
products, communications, and the built environment more usable by as
many people as possible at little or no extra cost. Universal Design
benefits people of all ages and abilities. Examples include designing
wider doorways, installing levers instead of doorknobs, and putting
bathtub/shower grab bars in all units. Computers and telephones can
also be set up in ways that enable as many residents as possible to use
them. The Department has a publication that contains a number of ideas
about how the principles of Universal Design can benefit persons with
disabilities. To order a copy of ``Strategies for Providing
Accessibility and Visitability for HOPE VI and Mixed Finance
Homeownership,'' go to the publications and resource page of the HOPE
VI Web site at http://www.huduser.org/publications/pubasst/strategies.html
.

(6) Energy Star. HUD has adopted a wide-ranging energy action plan
for improving energy efficiency in all program areas. As a first step
in implementing the energy plan, HUD, the Environmental Protection
Agency (EPA), and the Department of Energy have signed a partnership to
promote energy efficiency in HUD's affordable housing efforts and
programs. The purpose of the Energy Star partnership is to promote
energy efficiency of the affordable housing stock, but also to help
protect the environment. Applicants constructing, rehabilitating, or
maintaining housing or community facilities are encouraged to promote
energy efficiency in design and operations. They are urged especially
to build to Energy Star qualifications and to purchase and use Energy
Star-labeled products. Applicants providing housing assistance or
counseling services are encouraged to promote Energy Star building to
homebuyers and renters. Program activities can include developing
Energy Star promotional and informational materials, outreach to low-
and moderate-income renters and buyers on the benefits and savings when
using Energy Star products and appliances, and promoting the
designation of community buildings and homes as Energy Star compliant.
For further information about Energy Star, see http://www.energystar.gov
or call (888) STAR-YES ((888) 782-7937) or, for the

hearing-impaired, (888) 588-9920 (TTY).
l. Lead-Based Paint. The applicant must comply with lead-based
paint evaluation and reduction requirements as provided for under the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.),
the EPA's Pre-Renovation Education Rule (40 CFR 745, subpart E), HUD's
Lead Safe Housing Rule (24 CFR 35, subparts B-R), and the Lead
Disclosure Rule (24 CFR 35, subpart A), which addresses documents
provided to pre-1978 housing owners regarding lead paint or hazard
testing or lead hazard reduction activities, as they may be amended or
revised from time to time. The applicant will be responsible for lead-
based paint evaluation and reduction activities for housing constructed
prior to 1978. The National Lead Information Hotline is (800) 424-5323.
m. Labor Standards. Davis-Bacon wage rates do NOT apply to grants
from this NOFA, with the following exceptions:
(1) If other Federal programs are used in connection with the
applicant's HOPE VI Main Street activities, Davis-Bacon requirements
apply to the extent required by the other Federal programs.
(2) If any grant funds from an award through this NOFA are expended
by a PHA, acting as a developer, partnering with a developer, or as a
partner in an ownership entity partnership, Davis-Bacon wage rates will
apply to laborers and mechanics (other than volunteers under 24 CFR
part 70) employed in development of all housing units, and HUD-
determined wage rates will apply to laborers and mechanics (other than
volunteers) employed in the operation of all housing units, regardless
of whether such units are public housing or non-public housing.
n. Relocation Requirements. The Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1979 (42 U.S.C. 4601-4655),
implementing regulations at 49 CFR part 24, and ``Handbook CPD 02-08,
Guidance on the Application of the Uniform Relocation Assurance and
Real Property Acquisition Policies Act of 1970 (URA), as amended in
HOPE VI Projects'' apply to anyone who is displaced as a result of
acquisition,

[[Page 35857]]

rehabilitation, or demolition due to a HUD-assisted activity.
o. Fair Housing and Equal Opportunity Requirements. Fair Housing
and Equal Opportunity requirements stated in Section III.C of the
General Section apply as referenced in this NOFA. In addition, the
following requirement applies:
(1) Accessibility Requirements.
(a) All ``multifamily'' HOPE VI developments, defined as projects
with more than five units, are subject to the accessibility
requirements contained in several Federal laws, as implemented in 24
CFR part 8. PIH Notice 2003-31, available at http://www.hud.gov/offices/pih/publications/notices/
and subsequent updates, provide an

overview of all pertinent laws and implementing regulations pertaining
to HOPE VI.
(b) Generally, for substantial rehabilitation of projects with more
than 15 housing units, or new construction of a multifamily project, at
least 5 percent of the units, or one unit, whichever is greater, must
be accessible to persons with mobility impairments. An additional 2
percent, but not less than one unit, must be made accessible for
persons with hearing or vision impairment. See, in particular, 24 CFR
parts 8.20 through 8.32.
(c) In addition, under the Fair Housing Act, all new construction
of covered multifamily buildings must contain certain features of
accessible and adaptable design. The relevant accessibility
requirements are provided on HUD's FHEO Web site at http://www.hud.gov

/groups/fairhousing.cfm. Units covered are all those in elevator
buildings with four or more units and all ground floor units in
buildings without elevators. See also ``program accessibility'' at
http://www.hud.gov/offices/fheo/disabilities/sect504faq.cfm#anchor263905.
This section is in addition to, and does

not replace, other non-HUD accessibility requirements to which the
applicant local government may be subject.
p. Procurement. City governments are required to follow the
procurement regulations at 24 CFR 85.36. State and local procurement
requirements apply to the extent required by those governments.
5. General Section References. The following subsections of Section
III of the General Section are hereby incorporated by reference:
a. Additional Nondiscrimination and Other Requirements;
(1) Civil Rights Laws, including the Americans with Disabilities
Act of 1990 (42 U.S.C. 1201 et seq.);
(2) The Age Discrimination Act of 1974 (42 U.S.C. 6101 et seq.);
and
(3) Title IX of the Education Amendments Act of 1972 (20 U.S.C.
1681 et seq.)
b. Affirmatively Furthering Fair Housing;
c. Economic Opportunities for Low- and Very Low-Income Persons
(Section 3);
d. Ensuring the Participation of Small Businesses, Small
Disadvantaged Businesses, and Women-Owned Businesses;
e. Relocation;
f. Executive Order 13166, Improving Access to Services for Persons
With Limited English Proficiency (LEP);
g. Executive Order 13279, Equal Protection of the Laws for Faith-
Based and Community Organizations;
h. Accessible Technology;
i. Procurement of Recovered Materials;
j. Participation in HUD-Sponsored Program Evaluation;
k. Executive Order 13202, Preservation of Open Competition and
Government Neutrality Towards Government Contractors' Labor Relations
on Federal and Federally Funded Construction Projects;
l. Salary Limitation for Consultants;
m. OMB Circulars and Government-wide Regulations Applicable to
Financial Assistance Programs;
n. Environmental Requirements;
o. Conflict of Interest;
p. Drug-Free Workplace; and
q. Safeguarding Resident/Client Files.

IV. Application and Submission Information

A. Addresses to Request Application Package. This section describes
how you may obtain application forms, additional information about the
General Section of this NOFA, and technical assistance.
1. Copies of this published NOFA and related application forms may
be downloaded from the Grants.gov Web site at http://www.grants.gov/applicants/apply_for_grants.jsp.
If you have difficulty accessing the

information, you may receive customer support from Grants.gov by
calling the help line at (800) 518-GRANTS ((800) 518-4726) or by
sending an e-mail to support@grants.gov. The operators will assist you
in accessing the information. If you do not have Internet access and
need to obtain a copy of this NOFA, you can contact HUD's NOFA
Information Center toll-free at (800) HUD-8929. Persons with hearing or
speech impairments may call the Federal Information Relay Service at
(800) 877-8339.
2. The published Federal Register document is the official document
that HUD uses to evaluate applications. Therefore, if there is a
discrepancy between any materials published by HUD in its Federal
Register publications and other information provided in paper copy,
electronic copy, or at http://www.grants.gov, the Federal Register

publication prevails. Please be sure to review the application
submission against the requirements in this NOFA.
B. Content and Form of Application Submission.
1. Number of Applications Permitted. Each applicant may submit only
one application.
2. Joint Applications. Joint applications are not permitted.
However, the applicant may enter into subgrant agreements with procured
developers, other partners, nonprofit organizations, State governments,
or other local governments to perform the activities proposed under the
application.
3. General Format and Length of Application.
a. Applicant Name. The applicant's official name is the name that
is submitted to Grants.gov on the form SF-424. (Note: Applicants must
enter their legal name in box 8.a. of the SF-424 as it appears in the
Central Contractor Register (CCR). See the General Section regarding
CCR registration).
b. Electronic Format.
(1) General.
(a) Sections of the application are as listed below.
(b) In accordance with the General Section, applications are to be
submitted electronically via http://www.grants.gov/applicants/apply_for_grants.jsp.
See the General Section for additional instructions.

(2) File Names.
(a) The name of each submission file should include the information
below so that a HUD reviewer will be able to identify it as part of the
application:
(i) Short version of applicant's name, e.g., town, city, county/
parish, etc., and State; and
(ii) The word ``Narrative'' or ``Attachment,'' as applicable, and
the Section letter(s) (A through U) that are included in the file, as
listed below.
(b) Examples of file names are ``AtlantaGANarrative SectionD--
ABC.doc'' and ``NewYorkNYAttachment SectionM--KL.pdf.'' Do not include
spaces in the file names. Replace spaces with underscore marks.
(3) Summary and Rating Factor Narrative Files.
(a) In the Application Package, the form SF-424, ``Application for
Federal

[[Page 35858]]

Assistance,'' should be completed first. Other Exhibits are part of the
Application Instructions that you will download from Grants.gov, which
are described in Sections IV.B.5 through 6 and in the ``Rating
Factors,'' Section V.A of this NOFA. The following instructions apply
to those Narrative Exhibits.
(b) Each narrative submission file must be formatted so it can be
read by MS Word (version 9 or earlier).
(c) Each Narrative Exhibit, for each section of the application,
should be contained in a separate file, as listed in Section IV.A.3.d
of this NOFA, directly below.
(d) Narrative Exhibit Title Pages. HUD will use title pages to
identify each section of the application. Each Narrative Exhibit file
should contain one title page (the first page of the file. Do not
create title pages separately from the documents they go with).
Provided the information on the title page is limited to the list in
section (i) below, the title pages will not be counted when HUD
determines the length of each Narrative Exhibit, or the overall length
of the Narrative Exhibits.
(i) Each title page should contain only:
(A) The name of the Narrative Exhibit, as described in ``File
Names,'' Section IV.B.3.b.(2), above, e.g., ``Narrative Exhibit B:
Executive Summary'';
(B) The name of the applicant; and
(C) The name of the file that contains the Narrative Exhibit.
(4) Entering Narrative Files into the Application.
(a) Each narrative submission file must be formatted so it can be
read by MS Word (version 9 or earlier).
(b) To be included in the application, each file must be entered
into the Grants.gov ``Project Narrative Attachment Form'' located in
the Mandatory Documents area of the ``Grant Application Package.''
(i) After the form is open, enter your first file as the
``Mandatory Project Narrative File.'' Add subsequent files, if any, as
``Optional Project Narrative Files'' by clicking on ``Attach'' in the
Attachments window.
(5) Attachment Files.
(a) In the Grants.gov Grant Application Package, certain form
Attachments have been converted into documents for completion by the
applicant on the screen. The applicant must simply fill these forms in
and submit them. Other Attachments are part of Grants.gov Application
Instructions and are defined in this Section IV of this NOFA. The
following instructions apply to those Attachments.
(b) Each Attachment file must be formatted so it can be read by MS
Word (.doc), MS Excel (.xls) or Adobe Acrobat (.pdf). See the General
Section for format version specifications.
(c) Downloaded files, e.g., forms HUD-52861 and HUD-52825A, should
be submitted in their original format.
(d) Existing and third-party documents, e.g., Main Street Plan,
maps, and drawings, should be submitted in Adobe Acrobat (.pdf) format,
or faxed using the HUD Facsimile Transmittal (HUD-96011) form.
(e) You must complete these Attachments in stand-alone computer
applications, such as MS Excel. To include these downloaded Attachments
in the application, you must enter each Attachment's file into the
Grants.gov ``Other Attachments Form,'' which is located in the
Mandatory Documents area of the Grant Application Package.
(i) After the form is open, enter your first file as the
``Mandatory Other Attachment.'' Add subsequent files, if any, as
``Optional Other Attachments'' by clicking on ``Attach'' in the
Attachments window.
c. Maximum Length of Application.
(1) There is no overall maximum application length. However, there
are maximum page limits for specific parts of the application. Pages
beyond the below listed limits will not be reviewed. Page limits are as
follows:
(a) All of the Narrative Sections' responses together, including
the Rating Factor responses, are limited to a maximum of 20 pages;
(b) The Program Schedule is limited to a maximum of one page;
(c) The Main Street Area Map, including identification of all
project sites, is limited to a maximum of one page. The map may be
hand-drawn, but must be approximately to scale and must be of
sufficient quality to be legible at 11 x 17
printed size. Computer-Aided Design software is not necessary;
(d) The representative affordable housing unit layout is limited to
a maximum of one page; and
(e) Applicant Team Resumes are limited to a maximum of five pages.
More than one resume may be placed on each page.
(2) Page Definition and Layout.
(a) A page is the electronic equivalent of an 8\1/2\ x
11 paper page, with one-inch top, bottom, left, and right
margins.
(b) For .doc files, a ``page'' contains a maximum of 23 double-
spaced lines. The length of each line is limited to 6\1/2\ inches. The
font must be 12-point Times New Roman. Each page must be numbered. The
page numbers may be within the bottom one inch of the page, e.g., in
the footer area.
(c) Third-party and existing documents converted into PDF format
may retain their original page layout. They must not be shrunk to fit
more than one original page on each application page. To add page
numbers to PDF files using Adobe Acrobat 6, click on Document; Add
Headers & Footers; Footer; Align Right; and Insert Page Number. Page
numbers may also be added manually.
(d) Pages of HUD forms and certification formats furnished by HUD
must remain as numbered by HUD. These forms do not count toward any
page limits.
d. List of Application Sections and Related Documents.
(1) Summary Information:
(a) Section A: Application for Federal Assistance, form SF-424;
(b) Section B: Executive Summary;
(2) Rating Factor Responses:
(a) Section C: Rating Factor 1, Capacity, Narrative Response;
(b) Section D: Rating Factor 3, Readiness and Appropriateness of
the Main Street affordable housing project, Narrative Response;
(c) Section E: Rating Factor 4, Program Administration and Fiscal
Management, Narrative Response;
(d) Section F: Rating Factor 5, Incentive Criteria on Regulatory
Barrier Removal (HUD Community Initiative (information required by form
HUD-27300), Narrative Response;
(3) Attachments:
(a) Section G: Readiness Certifications and Documents;
(b) Section H: Program Schedule;
(c) Section I: HOPE VI Main Street Application Data Sheet, form
HUD-52861;
(d) Section J: HOPE VI Budget, form HUD-52825A;
(e) Section K: 5-Year Cash Flow Proforma;
(f) Section L: Map of Main Street Area;
(g) Section M: Site Plan and Typical Unit Layout;
(h) Section N: HUD Community Initiative, form HUD-27300 (Narrative
includes explanation and background);
(i) Section O: Certification of Consistency with the RC/EZ/EC-IIs
Strategic Plan, form HUD-2990, if applicable;
(j) Section P: Program Outcome Logic Model, form HUD-96010
(including indicators, outcomes and related items obtained in
accordance with Section VI.C of the General Section);
(k) Section Q: Code of Conduct (including distribution
methodology);
(l) Section R: Applicant/Recipient Disclosure Report, form HUD-
2880,

[[Page 35859]]

(``HUD Applicant Recipient Disclosure Report'' on Grants.gov) if
applicable;
(m) Section S: Disclosure of Lobbying Activities, Standard Form
LLL, if applicable;
(n) Section T: HUD-96011 Third Party Documentation Facsimile
Transmittal (``Facsimile Transmittal Form'' on Grants.gov) (to be used
to transmit third-party documents as part of your electronic
application, if applicable); and
(o) Section U: HUD-2994, You Are Our Client Grant Applicant Survey
(optional)
4. Threshold Documentation. Threshold documentation requirements
are limited to those stated in ``Thresholds,'' Section III.C.2,
``Certification of Certain Thresholds,'' Section III.C.3, of this NOFA,
and ``Conducting Business in Accordance with Core Values and Ethical
Standards,'' in Section III.C of the General Section.
5. Summary and Attachment Documentation.
a. Executive Summary.
(1) Provide an Executive Summary. Describe your affordable housing
plan. State whether: (1) You have procured (or will procure) a
developer, (2) you will act as your own developer, or (3) you will not
use a developer because your housing project is not complex enough to
warrant one. Briefly describe:
(a) The type of housing, e.g., walk-up above retail space, detached
house, etc.;
(b) The number of units and buildings;
(c) The description of the Main Street Area that surrounds the Main
Street affordable housing project. Include income mix, basic features
(such as restoration of streets), and a general description of mixed-
use and non-housing Main Street rejuvenation components;
(d) The number of homeownership units in your proposal, if any;
(e) The amount of HOPE VI funds you are requesting. (See Section
IV.E of this NOFA for funding limits); and
(f) A list of major non-HOPE VI funding resources for the Main
Street affordable housing project and the Main Street Area rejuvenation
effort as a whole.
b. Readiness (Site Control, Zoning, and Developer/Construction
Agreement). See ``Rating Factor Documentation,'' Section 6, below.
c. Program Schedule. The application requires a Program Schedule
for the applicant's Project. The Program Schedule must reflect the
Reasonable Time-Frame and Development Proposal time requirements stated
in Section VI.B of this NOFA.
d. HOPE VI Main Street Application Data Sheet, form HUD-52861, in
MS Excel format (.xls).
(1) This form consists of several Excel worksheets. Each worksheet
requires information that is necessary for the applicant to meet
thresholds, obtain rating points, or determine the maximum grant
amount. Instructions for completing the data worksheets are located in
the left-hand worksheet, with the tab name, ``Instructions.'' The
worksheets should be completed from the left-most tab toward the right.
In this way, the information that the applicant provides will
automatically be inserted to the right into other worksheets, as
needed.
(2) Unit Mix. This worksheet will be HUD's primary source of
information on the Main Street affordable housing project's unit number
and type. This information also feeds into the calculations for maximum
grant amount.
(3) Construction Sources and Uses. This worksheet contains the
planned costs and funding resources that will exist during the
construction period. That is, if a construction loan will be obtained,
it would be included here along with other financing that will be
expended during the construction and rent-up period, including grant
funds used in construction. A permanent mortgage would not be included
here.
(4) Permanent Sources and Uses. This worksheet contains the planned
costs and long-term financing that will be used to develop the Main
Street affordable housing project. Tax credit equity, permanent
mortgages, grant funds that will be used in construction, rent-up,
developer fee, etc., would be included here.
(5) TDC (Total Development Cost).
(a) The maximum amount of the grant must be based on HUD's
published TDC per unit developed. See HUD's Notice PIH-2006-22 (HA),
``Public Housing Development Cost Limits.''
(b) HUD has developed TDCs for larger cities, metropolitan
statistical areas and primary metropolitan statistical areas (MSA/
PMSA), and some counties. HUD has not developed TDCs for all small,
nonmetropolitan cities and towns. Therefore, the applicant may have to
contact its closest HUD Field Office to find out of which county/parish
or MSA/PMSA it is considered a part.
(6) Match. In order to meet HOPE VI's statutory 5 percent match
threshold, the applicant must enter match resource information in this
worksheet. If a resource is not listed in this worksheet, the amount
will not be included in HUD's calculation of match, and the application
may be barred from rating, ranking, and award. (Note that the applicant
must also provide a commitment letter for each match resource. See
``match,'' Section III.B of this NOFA.)
(a) For each of the applicant's match resources, the applicant must
include in this form:
(i) The name of the entity providing the resource;
(ii) The name of a contact for the entity providing the resource
who is familiar with the contribution toward this application;
(iii) The telephone number of a contact for the resource who is
familiar with the contribution toward this application;
(iv) The match amount;
(v) Whether the match amount is cash or in-kind services; and
(vi) A letter from the entity that is furnishing the match,
including items (i) through (v) above and signed by an authorized
individual, stating that the match is firmly committed.
(vii) All columns, except the last, ``Leverage Period More than 2
Years,'' must be completed.
(b) Match may only include resources to fund the Main Street
affordable housing project. The applicant must enter all match resource
information in this worksheet. If a resource is not listed in this
worksheet, the amount will not be included in HUD's calculation of the
match amount. (Note that the applicant must also provide a commitment
letter for each match resource.)
(7) Leverage. Leverage is a HOPE VI program requirement of cash or
in-kind services that have been firmly committed to the Main Street
affordable housing project or the Main Street Area refurbishment.
(a) For each of the applicant's Leverage resources, the applicant
must include in this form:
(i) The name of the entity providing the resource;
(ii) The name of a contact for the entity providing the resource
who is familiar with the contribution toward this application;
(iii) The telephone number of a contact for the resource who is
familiar with the contribution toward this application;
(iv) The leverage amount;
(v) Whether the leverage amount is cash or in-kind services;
(vi) A letter from the entity that is furnishing the Leverage,
including items (i) through (v) above, signed by an authorized
individual, stating that the Leverage is firmly committed; and
(vii) All columns, except the last, ``Leverage Period More than 2
Years,'' must be filled in.

[[Page 35860]]

e. HOPE VI Budget. Enter the amount you are requesting through this
NOFA. Typically, HOPE VI assists PHAs. With the Main Street program,
HOPE VI is assisting local governments. Because of this, the HOPE VI
Budget form refers to PHAs instead of local governments. In ``Part I:
Summary,'' in the ``PHA'' space, enter the applicant's name as stated
on the form SF-424. Also complete the column entitled, ``Revised
Overall HOPE VI Budget for All Project Phases.'' It is not necessary to
fill in the other columns. In ``Part II: Supporting Pages,'' in the
``PHA'' space, enter the applicant's name as stated on the form SF-424
and complete only columns two and three.
f. Cash Flow Proforma. The applicant must include a 5-year estimate
of project income, expenses, and cash flow (``proforma'') that shows
that the project will be financially viable over the long term. The
proforma should show the affordable rents for the period of the INITIAL
occupancy and the affordable or market rents (set at the discretion of
the grantee) for subsequent occupants. Note that initial funding of
reserves with grant funds is NOT an allowable use of funds from this
NOFA, e.g., a rental reserve to support initial affordable income.
Reserves may be funded through leverage resources.
g. Map of Main Street Area. The drawing must denote the boundaries
of a Main Street Area and denote each housing site that is included in
the applicant's project. The map should be grayscale for printing on a
black-and-white printer. Boundaries and site(s) should be delineated
with black lines. The boundaries may include streets, highways,
railroad tracks, etc., and natural boundaries such as streams, hills,
and ravines, etc. The map may be hand-drawn and should be approximately
to scale. The purpose of this drawing is to define the area where
firmly committed leverage resources that are included in the
application have been, or will be, expended.
h. Site Plan and Typical Unit Layout. The applicant must include a
drawing of the Main Street affordable housing project site plan and a
typical unit layout. The drawings may be hand-drawn, should be
approximately to scale, and should be in grayscale, for printing on a
black-and-white printer. The purpose of these drawings is to determine
if the building and unit configuration look feasible and fulfill
generally acceptable housing standards.
i. America's Affordable Communities Initiative, form HUD-27300. See
``Reviews and Selection Process,'' Section V.B of the General Section.
j. Certification of Consistency with the RC/EZ/EC-IIs Strategic
Plan, form HUD-2990. See ``Rating Factor Documentation,'' below.
k. Logic Model. The applicant must complete the form HUD-96010,
``Logic Model,'' in accordance with the ``Logic Model Instructions'' in
the General Section.
6. Rating Factor Documentation.
a. Rating Factor 1--Capacity.
(1) Team Experience. This Rating Factor will be based upon the
applicant's narrative description of the various types and extent of
experience that each of its Team members has accumulated. Information
from other sections of the application that reflect on the Team's
capacity also will be weighed for this Rating Factor. The stated
experience will be reviewed to determine if the Team has successfully
completed similar projects. It will also be reviewed to determine how
similar those projects were to the activities that will be performed
under a grant from this NOFA. At a bare minimum, the following should
be included:
(a) A list and short description of affordable housing projects
that the members of the applicant's team have completed; and
(b) A list and short description of contracts or grants completed
by the members of the applicant's Team for similar housing development
or services.
(2) Key Personnel Knowledge. Key personnel are those Team members
that must remain part of the team in order for the Team to complete the
activities required by a grant under this NOFA. As examples, key
personnel may include the developer, if complex financing methods are
necessary to complete the grant activities; or the owner of the
property that is going to be rehabilitated, if it will remain in his
possession; or an affordable housing intermediary that is going to
manage the activities of other Team members. On the other hand, a
specific accountant would not be key to grant completion. Knowledge may
come from experience or from education. The quality and amount of
knowledge that key personnel have will be weighed by this Rating
Factor. As an example, short resumes would contain this type of
information.
b. Rating Factor 2--Need for Affordable Housing. NO DOCUMENTATION
IS NECESSARY FOR THIS RATING FACTOR.
(1) HUD reviewers will derive the need for affordable housing based
on a comparison of HUD's Fair Market Rent (FMR) for the applicant's
primary metropolitan statistical area/metropolitan statistical area
(PMSA/MSA) or nonmetropolitan county/parish and the maximum amount of
rent that a very low-income family living in that PMSA/MSA or
nonmetropolitan county/parish can afford to pay. In performing the
comparison, HUD will compare the FMR for a three-bedroom unit to the
rent that would be paid by a four-person, very low-income family.
(2) PMSA/MSAs and nonmetropolitan counties/parishes documentation
on the FMRs are listed at http://www.huduser.org/datasets/fmr.html (3) The FMRs are listed at http://www.huduser.org/.

intercept.asp?loc=/datasets/fmr/fmr2007P/FY2007P--ScheduleB.pdf.
(4) The maximum, affordable very low-income rent is based on HUD's
Income Limits, which can be obtained at http://www.huduser.org/datasets/il/il2007_docsys.html
for very low-income families. The

initial occupant must not pay more in rent than a public housing
resident at a HOPE VI development, which is 30 percent of one-twelfth
of the listed income limit for a very low-income family.
c. Rating Factor 3--Readiness and Appropriateness of the Main
Street Affordable Housing Project.
(1) Site Control, Zoning, and Developer/Construction Agreement.
(a) Evidence of Site Control should be included in the
application's Readiness Attachment Exhibit:
(i) For site(s) that WILL NOT be conveyed to perform under a grant
from this NOFA:
(A) A copy of the site's deed that shows ownership by the applicant
or a Team member; or
(B) A certification signed by the applicant's Mayor, City
Registrar, or other authorized city employee, stating that the
applicant has the legal authority to perform the proposed and the
required activities of a grant from this NOFA on the site(s).
(ii) For sites that WILL be conveyed in order to perform under a
grant from this NOFA, the first page and execution page of the
agreement, contract, sales contract, sales option, or other document
that gives the applicant the legal authority to perform the proposed
and required activities of a grant from this NOFA on the site(s).
(2) For Zoning, the application's Readiness Attachment Exhibit
should include a certification from the appropriate local official,
e.g., local government engineer, zoning/land-use official (not
necessarily the Mayor), documenting that either:
(a) All required land-use approvals for developed and undeveloped
land have been secured; or

[[Page 35861]]

(b) The request for such approval(s) is on the agenda for the next
meeting of the appropriate authority in charge of land use, e.g.,
zoning board, city council. This document must include the date of the
meeting.
(3) For Developer/Construction Agreement, the application's
Readiness Attachment Exhibit should include one of the following:
(i) A description in the Rating Factor Narrative of activities that
the applicant Team has performed in order to obtain a developer,
construction manager, or construction contractor. These may include
discussions, procurement processing, etc., that the applicant has
completed. The description should also contain a description of the
activities that have not been, and must be, completed to sign an
agreement with such a Team member or contractor to perform the proposed
and required grant activities. Note that under 24 CFR 50.3, the grantee
must not enter into a binding agreement for choice-limiting actions
until HUD completes an environmental review.
(ii) If the applicant has entered into a binding contract before
submitting an application for activities that may be partially funded
by a grant from this NOFA, the applicant must state so in the
application. Note that, prior to HUD's completion of its environmental
review, funds from this NOFA must not be committed or used to fund
construction activities that started under a binding contract that was
executed before application submission.
(4) Leverage. The applicant must provide leverage funds/in-kind
services that are firmly committed to the Main Street rejuvenation
effort. This leverage may include leverage specifically committed to
development of the Main Street affordable housing project. This
leverage demonstrates statutorily required government and private-
sector community support. Leverage does NOT need to be expended on
affordable housing uses. Leverage may include infrastructure and other
government expenditures that have occurred since the Main Street
rejuvenation effort began. See ``Definitions,'' Section I.D and
``Program Requirements,'' Section III.C of this NOFA for more
information about Leverage.
(a) To be counted as Leverage, the application must contain a
letter from the leverage resource. The letter must be in writing and
signed by a person authorized to make the commitment, and must
explicitly state:
(i) The amount of the leverage; and
(ii) That the leverage has been or will be expended on the Main
Street Area rejuvenation effort.
(b) To be counted as Leverage, the resource must also be included
on pages 12 and 13 of the ``HOPE VI Main Street Application Data
Sheet,'' form HUD-52861. All columns, except the last, ``Leverage
Period More than 2 Years,'' must be filled in. No narrative discussion
of Leverage is necessary.
(c) Funds/in-kind services that are included as match resources
CANNOT be included in Leverage and should not be duplicated in Leverage
documentation.
(5) Retention of Historic or Traditional Architecture. The Rating
Factor Narrative Exhibit should include the age of, and restoration
work being done to, fa[ccedil]ades that are part of the Main Street
affordable housing project, along with other significant preservation
or restoration that has taken place or is planned as part of the rest
of the Main Street Area rejuvenation effort.
(6) Section 3. The Rating Factor Narrative Exhibit should contain a
Section 3 plan that must include at least the general methods that the
applicant will use to comply with implementing regulations at 24 CFR
part 135 and give job training, employment, contracting, and other
economic opportunities to Section 3 residents and Section 3 business
concerns. A Section 3 plan that exceeds this may contain more specific
information, e.g., goals by age group, types of jobs, and other
opportunities to be provided by the applicant, and plans for tracking
and evaluation of goals. To include Logic Model Section 3 information
in the Section 3 plan, the applicant should make reference to such
information in the Section 3 Narrative.
(7) Energy Star. The Rating Factor Narrative Exhibit should include
examples of any of the following Energy Star activities that will be
performed under a grant from this NOFA:
(a) It will use Energy Star-labeled products;
(b) It will promote Energy Star design of affordable units; and
(c) If the application includes the development of homeownership
units, it will include Energy Star in required homeownership
counseling.
d. Rating Factor 4--Program Administration and Fiscal Management.
(1) Documentation that demonstrates program administration and
fiscal management MUST include a list of any findings issued or
material weaknesses found by HUD or other Federal or State agencies. If
any of these exist, documentation must also include a description of
how the applicant addressed the findings and/or weaknesses. If no
findings or material weaknesses were exposed or existed on or before
the publication date of this NOFA, include a statement to that effect
in the narrative. HUD will consider this statement an applicant's
certification of fact.
(2) Program Schedule. The Program Schedule should contain all of
the milestones stated in ``Administrative Requirements,'' Section VI.B
of this NOFA. The Narrative Exhibit for this Rating Factor should
describe the methodology used in developing the schedule, including the
parties that were contacted and contributed information to the
applicant.
(3) Development, Financial, and Fiscal Management. The Rating
Factor narrative should include identification of the Team members,
their positions in the team, and the methods they will use to manage:
(a) General administration of the grant activities and reporting;
(b) Construction activities, including inspections;
(c) Leverage and match resources to guarantee fulfillment of
commitments;
(d) Accounting and distribution of grant funds; and
(e) Local, State, and Federal procurement requirements of the
applicant government.
(4) Tracking and Reporting. The grantee will be required to submit
quarterly reports to HUD using a HUD-developed, on-line data input
system. The application's Rating Factor Narrative Exhibit should
describe the method that the applicant will use to collect production
information and the type of computers and Internet access that the
applicant Team possesses.
e. Rating Factor 5--Incentive Criteria on Regulatory Barrier
Removal.
(1) The applicant must include the completed form HUD-27300 in the
application, along with background documentation where required by the
form, in order to receive up to 2 policy priority points for removal of
barriers to affordable housing. See Section V.B of the General Section.
f. Rating Factor 6--RC/EZ/EC-IIs.
(1) To receive up to two bonus points for performing the NOFA
activities in a RC/EZ/EC-II area, the applicant must complete, sign,
and submit the ``Certification of Consistency with RC/EZ/EC Strategic
Plan'' (form HUD-2990) as part of the application and meet the
requirements of the General Section.
C. Submission Dates and Times.
1. Application deadline date. Electronic applications must be
received and validated by Grants.gov by 11:59:59 p.m. eastern time on
the application deadline date. If a waiver to the electronic submission
is granted, paper copy applications must be received by

[[Page 35862]]

the application deadline date. See the General Section and Section IV.F
below.
2. No Facsimiles or Videos. HUD will not accept for review,
evaluation, or funding any entire application sent by facsimile (fax).
However, third-party documents or other materials sent by facsimile in
compliance with the instructions under Section IV of the General
Section, and that are received by the application deadline date will be
accepted. Also, videos submitted as part of an application will not be
viewed.
D. Intergovernmental Review.
1. Executive Order 12372, Intergovernmental Review of Federal
Programs. Executive Order 12372 was issued to foster intergovernmental
partnership and strengthen federalism by relying on State and local
processes for the coordination and review of Federal financial
assistance and direct Federal development. HUD implementing regulations
are published in 24 CFR part 52. The executive order allows each State
to designate an entity to perform a State review function. The official
listing of State Points of Contact (SPOCs) for this review process can
be found at http://www.whitehouse.gov/omb/grants/spoc.html. States not

listed on the Web site have chosen not to participate in the
intergovernmental review process and, therefore, do not have a SPOC. If
the applicant's State has a SPOC, the applicant should contact it to
see if it is interested in reviewing the application prior to
submission to HUD. The applicant should allow ample time for this
review process when developing and submitting the applications. If the
applicant's State does not have a SPOC, the applicant may send
applications directly to HUD.
E. Funding Restrictions.
1. Grant funds must only be used to provide assistance to carry out
eligible affordable housing activities, as stated in Section III.C of
this NOFA.
2. HOPE VI funds may not be used to meet the match requirement.
3. Non-allowable Costs and Activities. Grant funds awarded through
this NOFA must not be expended on:
a. Total demolition of a building (including where a building
foundation is retained);
b. Sale or lease of the Main Street affordable housing project
site, excluding:
(1) Long-term lease or transfer of title for the purposes of
obtaining tax credits or implementation of extended use restrictions,
provided that the recipient owner entity of the title or lease includes
the applicant;
(2) Transfer of title from a private owner to the applicant for
deminimus consideration, e.g., $1;
(3) Acquisition of land or property for the purpose of developing,
reconfiguring, or rehabilitating affordable housing units;
c. Funding of project reserves of any type;
d. Payment of the applicant's administrative costs;
e. Payment of any and all legal fees;
f. Development of public housing replacement units (defined as
units that replace disposed of or demolished public housing);
g. Housing Choice Vouchers;
h. Transitional security activities;
i. Main Street technical assistance consultants or contracts; and
j. Costs incurred prior to grant award, including the cost of
application preparation.
4. Cost Controls.
a. The total amount of HOPE VI funds expended shall not exceed the
TDC, as published by HUD in Notice PIH 2006-22 (HA), ``Public Housing
Development Cost Limits,'' for the number of affordable housing units
that will be developed through this NOFA. The TDC limits can be found
through HUD's HUDClips Web site at http://www.hudclips.org/sub_nonhud/cgi/
nph-brs.cgi?d=PIHN&s1=(06-22)[no]&op1 =AND& l=100&SECT1=TXT--HITS&

SECT5=HEHB&u=./hudclips.cgi& p=1&r=1&f=G. This information is also
included as background data in form HUD-52861, ``HOPE VI Main Street
Application Data Sheet.''
b. Cost Control Safe Harbors apply. Grantees must comply with HOPE
VI Main Street Cost Control and Safe Harbor Standards, as follows:
(1) Developer Fee Safe Harbor. The HOPE VI Main Street Safe Harbor
for the developer fee is 9 percent or less of total Main Street
affordable housing project costs that are funded by grant funds or
leverage funds included in the NOFA application (less the total amount
of all reserve accounts and less the developer fee, itself.) The
maximum developer fee is 12 percent of total Main Street affordable
housing project costs that are funded by grant funds or leverage funds
included in the NOFA application. Any fee above the 9 percent safe
harbor must be justified and approved by HUD in advance. Possible
justifications for exceeding the 9 percent safe harbor include:
(a) Developer independently obtains project financing, including
tax credits. The more sources of financing, the greater the
justification for a higher developer fee;
(b) Developer obtains site control from an entity other than the
Grantee. The more sites acquired the greater the justification for a
higher developer fee;
(c) The project is complex (e.g., in financial, legal,
environmental, and/or political terms.)
(d) The developer bears more than 25 percent of the predevelopment
costs;
(e) The developer fee is deferred or paid out of positive cash flow
from the project;
(f) The developer guarantee(s) is for a large dollar amount in
proportion to the project size and/or the guarantee(s) is for a long
term.
(2) General Contractor Fee Safe Harbor. The HOPE VI Main Street
Safe Harbor for the general contractor fee is as follows:
(a) General Requirements: 6 percent of hard-costs (including
contingency and bond premium);
(b) Overhead: 2 percent of hard-costs plus general requirements;
(c) Profit: 6 percent of hard-costs, general requirements, and
overhead;
(d) The maximum Safe Harbor for these combined costs is 14 percent,
unless adequate justification is provided to HUD.
5. Community and Supportive Services (``CSS''). Furnishing CSS to
residents is voluntary, except for homeownership counseling when the
application includes development of homeownership units. If the
applicant chooses to furnish CSS, expenditures are limited to 15
percent of the grant amount.
6. Statutory time limit for award, obligation, and expenditure.
a. The estimated award date will be 21 days after the application
deadline date for this NOFA.
b. Funds available through this NOFA must be obligated (awarded) on
or before September 30, 2007.
c. In accordance with 31 U.S.C. 1552 (Pub. L. 97-258, Sept. 13,
1982, 96 Stat. 935; Pub. L. 101-510, div. A, title XIV, Sec.
1405(a)(1), Nov. 5, 1990, 104 Stat. 1676), all HOPE VI funds that were
appropriated in FY 2006 must be expended by September 30, 2012, and
funds appropriated in FY 2007 must be expended by September 30, 2013.
Any funds that are not expended by these dates will be cancelled and
recaptured by the United States Treasury, and thereafter will not be
available for obligation or expenditure for any purpose.
7. Withdrawal of Funding. If a grantee under this NOFA does not
proceed within a reasonable time frame (in accordance with Section VI
of this NOFA), HUD retains the right to unilaterally withdraw any grant
amounts that have not been obligated by the grantee. HUD shall
redistribute any

[[Page 35863]]

withdrawn amounts to one or more other applicants eligible for
assistance under the HOPE VI program.
8. Transfer of Funds. HUD has the discretion to transfer to any
other HOPE VI program funds available through this NOFA.
9. Limitation on Eligible Expenditures. Expenditures on services,
equipment, and physical improvements must directly relate to project
activities allowed under this NOFA.
10. Pre-Award Activities. Award funds shall not be used to
reimburse pre-award expenses.
F. Other Submission Requirements.
1. Application Submission and Receipt Procedures. See Sections IV.B
and F of the General Section.
2. Timely Receipt Requirements and Proof of Timely Submission.
a. Electronic Submission. All electronic applications must be
received and validated by http://www.grants.gov by 11:59:59 p.m.

eastern time on or before the deadline date established for this NOFA.
See Sections IV. B and F of the General Section. Applicants are advised
to submit their applications at least 48 to 72 hours in advance of the
deadline date and when the Grants.gov help desk is open so that any
issues can be addressed prior to the deadline date and time. Please
note that validation may take up to 72 hours.
b. Applications Receiving Waivers to Submit a Paper Copy
Application.
(1) Requests for HUD to waive the requirement that NOFA
applications be submitted electronically must be made in writing to:
Department of Housing and Urban Development, Office of Public Housing
Investments, Attention: Susan Wilson, Director, 451 Seventh Street,
SW., Washington, DC 20410-5000.
(2) Waiver requests must include justification explaining why the
application cannot be submitted electronically, and must be submitted
no later than 15 days prior to the application deadline date.
(3) See Section IV of the General Section for additional
information about waivers.
(4) Applicants granted a waiver of the electronic submission
requirement must submit their applications, in their entirety, to the
applicable HUD office by the application deadline date. Written
notification of waiver approval will include information on mailing
instructions and timely receipt of the application by HUD. HUD will not
accept a paper application without a waiver being granted.
c. No Facsimiles of Entire Application. HUD will not accept fax
transmissions from applicants who receive a waiver to submit a paper
copy application. Paper applications must be complete and submitted, in
their entirety, on or before the application deadline date.
3. General Section References. Section IV of the General Section is
hereby incorporated by reference.

V. Application Review Information

A. Selection Criteria (Rating Factors).
1. Rating Factor 1--Capacity (up to 25 points). This factor
addresses whether the applicant Team has the capacity and
organizational resources necessary to implement successfully the
proposed activities within the grant period. Please do not include the
Social Security Number of any Team member.
a. Past Experience (up to 15 points).
(1) The applicant will earn a maximum of 15 points if the applicant
demonstrates that the applicant's Team has extensive experience of
affordable housing development and historic preservation requirements;
that is, that the applicant's Team has developed or rehabilitated
housing projects, including BOTH affordable housing projects and
National Register for Historic Preservation (NRHP) or traditional
architecture projects over the past 3 years.
(2) The applicant will earn a maximum of 10 points if the applicant
demonstrates that the applicant's Team has superior experience of
affordable housing development and historic preservation requirements;
that is, that the applicant's Team has developed or rehabilitated
housing projects, including EITHER affordable housing projects OR NRHP
or traditional architecture projects over the past 3 years.
(3) The applicant will earn a maximum of 5 points if the applicant
demonstrates that the applicant team has adequate experience in housing
development; that is, that the applicant's Team has developed or
rehabilitated more than one housing project over the past 3 years.
(4) The applicant will earn a maximum of 0 points if the applicant
cannot demonstrate that its team has at least adequate experience in
housing development.
b. Knowledge of Key Personnel (up to 10 points).
(1) The applicant will earn a maximum of 10 points if the applicant
demonstrates that its key personnel have extensive knowledge in the
development or rehabilitation of housing projects, including BOTH
affordable housing projects AND NRHP or traditional architecture
projects.
(2) The applicant will earn a maximum of 5 points if the applicant
demonstrates that the applicant Team's key personnel have adequate
knowledge in the development or rehabilitation of housing projects,
including EITHER affordable housing projects OR NRHP or traditional
architecture projects.
(3) The applicant will earn a maximum of 0 points if the applicant
cannot demonstrate that its key personnel have adequate knowledge in
the development or rehabilitation of housing projects, including EITHER
affordable housing projects OR NRHP or traditional architecture
projects.
2. Rating Factor 2--Need for Affordable Housing (up to 10 points).
a. For the applicant's PMSA/MSA or nonmetropolitan county/parish,
if the ratio of the maximum affordable rent for a three-person very
low-income family to the FMR of a two-bedroom size unit (affordable
rent divided by FMR) is equal to or less than 0.9, the applicant will
receive 10 points. Affordable rent is 30 percent of the Income Limit
for a very low-income family, divided by 12 (months per year).
b. For the applicant's PMSA/MSA or nonmetropolitan county/parish,
if the ratio of the maximum affordable rent for a three-person, very
low-income family to the FMR of a two-bedroom size unit (affordable
rent divided by FMR) is greater than 0.9, but less than or equal to
1.2, the applicant will receive 5 points. Affordable rent is 30 percent
of the Income Limit for a very low-income family, divided by 12 (months
per year).
c. For the applicant's PMSA/MSA or nonmetropolitan county/parish,
if the ratio of the maximum affordable rent for a 3-person very low-
income family to the FMR of a two-bedroom size unit (affordable rent
divided by FMR) is greater than 1.2, the applicant will receive 0
points. Affordable rent is 30 percent of the Income Limit for a very
low-income family, divided by 12 (months per year).
3. Rating Factor 3--Readiness and Appropriateness of the Main
Street affordable housing project (up to 48 points).
a. Appropriateness and Feasibility of the Main Street Affordable
Housing Project (up to 10 points).
(1) You will receive 10 points if your application demonstrates the
following about your Main Street affordable housing project:
(a) It is appropriate and suitable, in the context of the community
and other affordable housing options, e.g., rehabilitation versus new
construction;
(b) Fulfills the needs of the Main Street Area rejuvenation effort;
(c) Is marketable, in the context of local conditions;

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(d) If the affordable housing units that will be developed under a
grant from this NOFA are not a separable part of a larger development
effort, and you include market-rate housing or retail structures in
that larger development, you must provide a signed letter from an
independent, third-party, market research firm real estate professional
that describes its assessment of the demand and associated pricing
structure for the proposed residential units and retail structures,
based on the market and economic conditions of the Main Street Area;
(e) Is financially feasible, as demonstrated in the proforma and
financial exhibits proposed in the application;
(f) Describes the cost controls that will be used in implementing
the project, in accordance with the Funding Restrictions and Program
Requirements sections of this NOFA; and
(g) Includes a completed TDC/Grant Limitations Worksheet in the
application and follows the Funding Restrictions and Program
Requirements sections of this NOFA.
(2) You will receive 5 points if your application demonstrates at
least 3 of the criteria above.
(3) You will receive 0 points if your application does not
demonstrate the criteria above or your application does not provide
sufficient information to evaluate this factor.
b. Promotion and Marketing (2 Points).
(1) The applicant will receive 2 points if the application sets
forth a plan to promote and market the Main Street Area rejuvenation
effort to financiers, to other parties that may be involved in the
rejuvenation effort, and to possible future residents of the Main
Street affordable housing project, including (in accordance with
affirmative fair housing marketing requirements) the population that is
least likely to apply.
(2) The applicant will receive 0 points if the application does not
include a discussion of promotion or marketing of the Main Street Area
rejuvenation effort.
c. Readiness (Site Control, Zoning, and Developer/Construction
Agreement) (up to 12 points).
(1) In order to perform the activities required under a grant from
this NOFA, the applicant must:
(a) Have obtained site control of the Main Street affordable
housing project site(s). (Note that an applicant that does not have
site control prior to HUD's receipt of the application must not acquire
title to any sites until completion of the HUD environmental review. In
addition, any purchase option entered into after HUD receipt of the
application must be contingent upon notification from HUD that the
property is acceptable, following a HUD environmental review, and the
cost of the option must be no more than a nominal portion of the
purchase price);
(b) Have received local zoning approval that allows residential use
of the Main Street affordable housing project site(s); and
(c) Have either:
(i) Begun discussions toward execution of an agreement or contract
with a developer, construction manager, or construction company to
develop the Main Street affordable housing project. (Note that under 24
CFR 50.3, the grantee must not enter into a binding agreement for
choice-limiting actions until HUD completes an environmental review);
or
(ii) Had such a contract in place, before application submission,
to develop affordable housing that may be partially funded by this
NOFA. (Note that, prior to HUD's completion of its environmental
review, funds from this NOFA must not be committed or used to fund
construction activities that started under a binding contract that was
executed before application submission).
(2) Scoring:
(a) The applicant will receive 12 points if the application
includes documentation demonstrating that (a), (b), and (c), above, has
occurred.
(b) The applicant will receive 8 points if the application includes
documentation demonstrating that any two of (a), (b), and (c), above,
have occurred.
(c) The applicant will receive 4 points if the application includes
documentation demonstrating that only one of (a), (b), and (c), above,
has occurred.
(d) The applicant will receive 0 points if the application does not
include documentation demonstrating that either (a), (b), and (c),
above, has occurred.
d. Main Street Area Rejuvenation Leverage (up to 15 points). Main
Street Area Leverage includes leverage used for activities related to
the Main Street Area rejuvenation effort as a whole, along with
leverage that will be used directly for allowable activities in the
development of the Main Street affordable housing project.
(1) The applicant must provide leverage funds/in-kind services that
are firmly committed to the Main Street rejuvenation effort as a whole,
including leverage specifically committed to development of the Main
Street affordable housing project. This Leverage must demonstrate
government and private-sector community support for the Main Street
Area rejuvenation effort.
(2) Match is NOT included in Leverage. Match is a separate,
statutorily required contribution of funds. If a resource is listed as
match in the ``HOPE VI Main Street Application Data Sheet,'' form HUD-
52861, that is included in the application, HUD will not count that
resource as Leverage.
(3) This Rating Factor measures the community support that the Main
Street Area rejuvenation project has.
(4) Points are assigned based on the following scale, as a percent
of the requested grant amount:

------------------------------------------------------------------------
Points
Leverage as percent of grant amount awarded
------------------------------------------------------------------------
Less than 75 percent of the requested grant amount........... 0 points
Greater than or equal to 75 percent but less than 150 percent 5 points
Greater than or equal to 150 percent but less than 225 10 points
percent.....................................................
225 percent or more.......................................... 15 points
------------------------------------------------------------------------

e. Retention of Historic or Traditional Architecture (up to 6
points).
(1) The applicant will receive 6 points if the application
demonstrates that the buildings in the project will maintain all of the
historic or traditional architecture and design features on all floors
of the buildings.
(2) The applicant will receive 3 points if the application
demonstrates that the buildings in the project will retain some of the
historic or traditional architecture and design features on some or all
of the floors of the buildings.
(3) The applicant will receive 0 points if the application does not
demonstrate that the buildings in the project will retain historic or
traditional architecture and design features.
f. Economic Opportunities for Low- and Very-Low-Income Persons
(Provision of Section 3) (up to 2 points).
(1) HOPE VI grantees must comply with Section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities
for Low- and Very-Low-Income Persons in Connection with Assisted
Projects) and its implementing regulations at 24 CFR 135.32,
``Responsibilities of the recipient,'' which can be found through
http://www.gpoaccess.gov/cfr/index.html. One of the purposes of the

assistance is to give, to the greatest extent feasible, and consistent
with existing Federal, State, and local laws and regulations, job
training, employment, contracting, and other economic opportunities to
Section 3 residents and Section 3 business concerns.

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(2) The applicant will receive 2 points if the application includes
a feasible plan to implement Section 3 that not only meets the minimum
requirements, but also exceeds those requirements.
(3) The applicant will receive 0 points if the application does not
include a feasible plan to implement Section 3 that not only meets the
minimum requirements, but also exceeds those requirements.
g. Energy Star (up to 1 point).
(1) Promotion of Energy Star compliance is a HOPE VI Main Street
program goal. See ``Program Requirements,'' Section III.C of this NOFA.
(2) You will receive 1 point if your application demonstrates that
you will:
(a) Use Energy Star-labeled products;
(b) Promote Energy Star design of affordable units; and
(c) If your application includes the development of homeownership
units, include Energy Star in required homeownership counseling.
(3) You will receive 0 points if your application does not
demonstrate that you will perform (a) and (b) above, and, if
applicable, (c) above.
4. Rating Factor 4-Program Administration and Fiscal Management (up
to 15 points).
a. Program Schedule (up to 5 points).
(1) The applicant may receive a maximum of 5 points if the
applicant demonstrates that the milestones in the Program Schedule are
realistic and achievable; that is, that the application demonstrates
that the applicant has performed the following actions and, where
applicable, has obtained information that was used in developing the
Program Schedule:
(a) Contacted the State Historic Preservation Officer, the local
HUD Field Office, architects, materials suppliers, and other parties
that milestones depend upon, to ensure that the milestones can
reasonably be met;
(b) Checked to see if any litigation or court orders exist that
will affect the milestones; and
(c) Prepared a chart that states the estimated production
milestones, their relative time frames, and each milestone's time to
completion, e.g., in a Gantt Chart.
(2) The applicant may receive a maximum of 3 points if the
applicant has performed two of the three actions in (a) through (c)
above and, where applicable, has obtained information that was used in
developing the Program Schedule.
(3) The applicant will receive 0 points if the applicant has not
performed at least two of the three actions in (a) through (c) above.
b. Tracking and Reporting System for Production Milestones (up to 2
points).
(1) The applicant will earn a maximum of 2 points if the applicant
demonstrates that a tracking and reporting system for key production
milestones has existed and has been in use continuously for the Main
Street Area rejuvenation effort, and the applicant demonstrates how the
tracking and reporting system will be used to implement a grant awarded
through this NOFA.
(2) The applicant will earn a maximum of 1 points if a tracking and
reporting system exists as of the application deadline date (i.e., was
developed as a result of this NOFA), but has not been used on the Main
Street Area rejuvenation effort, provided that the applicant
demonstrates how it will be used to implement a grant awarded through
this NOFA.
(3) The applicant will receive 0 points if:
(a) A tracking and reporting system does not exist; or
(b) The applicant does not demonstrate how one will be used to
implement a grant awarded through this NOFA.
c. Development and Fiscal Management (up to 8 points).
(1) Development and fiscal management includes management of the
grant in general (administration and reporting), the construction
activities, receipt of financial commitments, accounting and
distribution of grant funds, and government procurement activities.
(2) If the applicant demonstrates management controls that are
adequate to manage a grant from this NOFA for all of the above areas,
the applicant will receive 8 points.
(3) If the applicant demonstrates management controls that are
adequate to manage a grant from this NOFA for some of the above areas,
the applicant will receive 4 points.
(4) If the applicant does not demonstrate management controls that
are adequate to manage a grant from this NOFA, the applicant will
receive 0 points.
5. Rating Factor 5--Incentive Criteria on Regulatory Barrier
Removal--(up to 2 points).
a. Description.
(1) HUD's Notice, ``America's Affordable Communities Initiative,
HUD's Initiative on Removal of Regulatory Barriers: Announcement of
Incentive Criteria on Barrier Removal in HUD's FY 2004 Competitive
Funding Allocations,'' Federal Register Docket Number FR-4882-N-03,
published on March 22, 2004, provides that most HUD competitive NOFAs
will include an incentive for local and State governments to decrease
their regulatory barriers to the development of affordable housing.
(2) Form HUD-27300 contains questions that explore the applicant's
efforts to decrease regulatory barriers.
b. Scoring.
(1) If the applicant is considered a local unit of government with
land use and building regulatory authority, an agency or department of
a local unit of government, a nonprofit organization, or other
qualified applicant applying for funding for a project located in the
jurisdiction of the local unit of government, the applicant is invited
to answer the 20 questions in Part A of form HUD-27300. For those
applications in which regulatory authority is split between
jurisdictions (e.g., county/parish and town), the applicant should
answer the question for the jurisdiction that has regulatory authority
over the issue at question.
(a) If the applicant checked Column 2 for five to ten questions
from Part A, the applicant will receive 1 point in the NOFA evaluation.
(b) If the applicant checked Column 2 for 11 or more questions from
Part A, the applicant will receive 2 points in the NOFA evaluation.
(2) Part B of the form is for an applicant that is a State
government or an agency or department of a State government. State
governments are not eligible to apply for this NOFA and, as such, Part
B of the form is not applicable.
(3) In no case will an applicant receive more than two points for
barrier removal activities.
(4) To receive the points for this policy priority, an applicant
must submit the documentation requested in the questionnaire or provide
a Web site address (URL) where the documentation can be readily found.
See Section IV of the General Section for documentation requirements.
6. Bonus Points: RC/EZ/EC-II (up to 2 points).
a. RC/EZ/EC-IIs. This NOFA provides for the award of two bonus
points for eligible activities/projects that the applicant proposes to
locate in federally designated Empowerment Zones (EZs), Renewal
Communities (RCs), or Enterprise Communities, designated by the U.S.
Department of Agriculture in round II (EC-IIs), that are intended to
serve the residents of these areas, and that are certified to be
consistent with the area's strategic plan or RC Tax Incentive
Utilization Plan (TIUP). (For ease of reference in this notice, all of
the federally designated areas are

[[Page 35866]]

collectively referred to as ``RC/EZ/EC-IIs'' and residents of any of
these federally designated areas as ``RC/EZ/EC-II residents.'') This
NOFA contains a certification, ``Certification of Consistency with RC/
EZ/EC Strategic Plan'' (form HUD-2990), that must be completed for the
applicant to be considered for RC/EZ/EC-II bonus points. A list of RC/
EZ/EC-IIs can be obtained from HUD's Web page at http://www.hud.gov/cr.

Applicants can determine if their program/project activities are
located in one of these designated areas by using the locator on HUD's
Web site at http://www.hud.gov/crlocator.

B. Review and Selection Process.
1. HUD's selection process is designed to ensure that grants are
awarded to eligible local governments with the most meritorious
applications.
2. Application Screening.
a. HUD will screen each application to determine if:
(1) It meets the threshold criteria listed in Section III.C of this
NOFA; and
(2) It is deficient, i.e., contains any technical deficiencies.
b. Corrections to Deficient Applications. The subsection entitled
``Corrections to Deficient Applications'' in Section V.B of the General
Section applies. Clarifications or corrections of technical
deficiencies in accordance with the information provided by HUD must be
submitted within 14 calendar days of the date of receipt of the HUD
notification.
c. Applications that will not be rated or ranked.
(1) HUD will not rate or rank applications that are deficient at
the end of a 14-calendar day cure period, as described in Section
V.B.2.b above and the General Section.
(2) HUD will not rate or rank applications that have not met the
thresholds described in Section III.C of this NOFA. Such applications
will not be eligible for funding.
3. Preliminary Rating and Ranking.
a. Rating.
(1) HUD staff will preliminarily rate each eligible application,
SOLELY on the basis of the Rating Factors described in Section V.A of
this NOFA.
(2) When rating applications, HUD reviewers will not use any
information included in any application submitted for another NOFA.
(3) HUD will assign a preliminary score for each Rating Factor and
a preliminary total score for each eligible application.
(4) The maximum number of points for each application is 100, plus
a possible 2 RC/EZ/EC-II bonus points.
(5) Minimum Score. Applications that do not have a preliminary
score of at least 50 points will not be eligible for funding.
b. Ranking.
(1) After preliminary review, applications with a minimum score of
50 or above will be ranked in score order.
4. Final Panel Review.
a. A Final Review Panel made up of HUD staff will:
(1) Review the Preliminary Rating and Ranking documentation to:
(a) Ensure that any inconsistencies between preliminary reviewers
have been identified and rectified; and
(b) Ensure that the Preliminary Rating and Ranking documentation
accurately reflects the contents of the application.
(2) Assign a final score to each application; and
(3) Recommend for selection the most highly rated applications,
subject to the amount of available funding, described in Section II of
this NOFA.
5. HUD reserves the right to make reductions in funding for any
ineligible items included in an applicant's proposed HOPE VI column of
the application's Sources and Uses, or HOPE VI budget.
6. In accordance with the FY 2007 HOPE VI appropriation, HUD may
not use HOPE VI funds, including HOPE VI Main Street funds, to grant
competitive advantage in awards to settle litigation or pay judgments.
7. Tie Scores. If two or more applications have the same score and
there are insufficient funds to select all of them, HUD will select for
funding the application(s) with the highest score for the Capacity
Rating Factor. If a tie remains, HUD will select for funding the
application(s) with the highest score for the Capacity Rating Factor.
HUD will select further tied applications with the highest score for
the Need Rating Factor.
8. Remaining Funds.
a. HUD reserves the right to reallocate remaining funds from this
NOFA to other eligible activities under Section 24 of the Act.
(1) If the total amount of funds requested by all applications
found eligible for funding under Section V.B of this NOFA is less than
the amount of funds available from this NOFA, all eligible applications
will be funded and those funds in excess of the total requested amount
will be considered remaining funds.
(2) If the total amount of funds requested by all applications
found eligible for funding under Section V.B of this NOFA is greater
than the amount of funds available from this NOFA, eligible
applications will be funded until the amount of non-awarded funds is
less than the amount required to fund feasibly the next eligible
application. In this case, the funds that have not been awarded will be
considered remaining funds.
9. The following subsections of Section V of the General Section
are hereby incorporated by reference:
a. HUD's Strategic Goals;
b. Policy Priorities;
c. Threshold Compliance;
d. Corrections to Deficient Applications;
e. Rating; and
f. Ranking.

VI. Award Administration Information

A. Award Notices.
1. Initial Announcement. The HUD Reform Act prohibits HUD from
notifying the applicant as to whether or not the applicant has been
selected to receive a grant until HUD has announced all grant
recipients. If the application has been found to be ineligible or if it
did not receive enough points to be funded, the applicant will not be
notified until the successful applicants have been notified. HUD will
provide written notification to all eligible applicants, whether or not
they have been selected for funding.
2. Authorizing Document. The ``Assistance Award/Amendment,'' form
HUD-1044, signed by the Assistant Secretary for Public and Indian
Housing (grants officer) is the authorizing document. This executed
form will be delivered via the United States Postal Service to the
applicant's authorized signatory at the applicant's address, as stated
on the form SF-424.
3. General Section References. Section VI of the General Section is
hereby incorporated by reference.
B. Administrative and National Policy Requirements.
1. Administrative Requirements.
a. Grant Agreement Execution. The grantee must execute the Grant
Agreement within 90 days after HUD mails the Grant Agreement to the
grantee.
b. Grant term. The time period for completion shall not exceed 30
months from the date the ``Assistance Award/Amendment,'' form HUD-1044,
is executed by HUD.
c. Sub-Grants and Contracts. Grant funds may be expended directly
by the applicant or they may be granted or loaned by the applicant to a
third-party procured developer or Construction Manager who is
undertaking the development of the Project