[Federal Register: March 26, 2008 (Volume 73, Number 59)]
[Notices]
[Page 16139-16177]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr08-148]
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Part III
Department of Housing and Urban Development
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HUD's Fiscal Year (FY) 2008 NOFA for the HOPE VI Revitalization Grants
Program; Notice
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5198-N-01]
HUD's Fiscal Year (FY) 2008 NOFA for the HOPE VI Revitalization
Grants Program
AGENCY: Office of the Secretary, HUD.
ACTION: Notice of HUD's Fiscal Year (FY) 2008 Notice of Funding
Availability for HUD's HOPE VI Revitalization Grants Program.
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SUMMARY: On March 10, 2008, HUD published its Notice of Fiscal Year
(FY) 2008 Opportunity to Register Early and Other Important Information
for Electronic Application Submission via Grants.gov. Today's
publication is governed by the information and instructions found in
the Notice of HUD's Fiscal Year 2008 Notice of Funding Availability
(NOFA) Policy Requirements and General Section (General Section) to the
SuperNOFA that HUD published on March 19, 2008 and the March 10, 2008
Notice of FY 2008 Opportunity to Register Early and Other Important
Information for Electronic Application Submission Via Grants.gov,
unless otherwise noted in this HOPE VI Revitalization NOFA.
FOR FURTHER INFORMATION CONTACT: Questions regarding specific program
requirements should be directed to the agency contact identified in
this program NOFA. Questions regarding the General Section of March 19,
2008, and the March 10, 2008 Notice of FY 2008 Opportunity to Register
Early and Other Important Information for Electronic Application
Submission Via Grants.gov, should be directed to the Office of
Departmental Grants Management and Oversight at (202) 708-0667 (this is
not a toll-free number) or the NOFA Information Center at (800) HUD-
8929 (toll-free). Persons with hearing or speech impairments may access
these numbers via TTY by calling the Federal Information Relay Service
at (800) 877-8339. The NOFA Information Center is open between the
hours of 10 a.m. and 6:30 p.m. eastern time, Monday through Friday,
except federal holidays.
SUPPLEMENTARY INFORMATION: Through today's publication, HUD is making
available approximately $97.6 million in assistance through the FY2008
HOPE VI Revitalization Grants program.
The NOFA published today provides the statutory and regulatory
requirements, threshold requirements, and rating factors applicable to
funding being made available today (through the HOPE VI Revitalization
NOFA). Applicants for the HOPE VI NOFA must also refer to the General
Section of March 19, 2008 (73 FR 14882) and the March 10, 2008 Notice
of FY 2008 Opportunity to Register Early and Other Important
Information for Electronic Application Submission Via Grants.gov (73 FR
12751) for important application information and requirements,
including submission requirements, which have changed this year.
In FY 2008, HUD is continuing its requirement that applicants
submit their applications electronically through http://www.grants.gov.
If applicants have questions concerning the registration process,
registration renewal, assigning a new Authorized Organization
Representative, or have a question about a NOFA requirement, please
contact HUD staff identified in this program NOFA. HUD staff cannot
help you write your application, but can clarify requirements that are
contained in the General Section, this Notice, and in HUD's
registration materials. New applicants should note that they are
required to complete a five-step registration process in order to
submit their applications electronically. The General Section included
in the instructions download materials on Grants.gov provides a step-
by-step explanation of the registration process, as well as where to
find, on HUD's Web site, materials prepared by HUD to help guide
applicants through the registration and application submission process.
Applications and Instructions are posted to Grants.gov as soon as
HUD finalizes them. HUD encourages applicants to subscribe to the
Grants.gov free notification service. By doing so, applicants will
receive an e-mail notification as soon as items are posted to the Web
site. The address to subscribe to this service is http://
www.grants.gov/search/email.do. By joining the notification service, if
a modification is made to the NOFA, applicants will receive an e-mail
notification that a change has been made.
HUD encourages applicants to carefully read the General Section and
all parts of this HOPE VI Revitalization NOFA. Carefully following the
directions provided can make the difference in a successful application
submission.
Dated: March 19, 2008.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
Overview Information
A. Federal Agency Name. Department of Housing and Urban
Development, Office of Public and Indian Housing.
B. Funding Opportunity Title. Revitalization of Severely Distressed
Public Housing HOPE VI Revitalization Grants Fiscal Year 2008.
C. Announcement Type. Initial announcement.
D. Funding Opportunity Number. The Federal Register number for this
NOFA is FR-5198-N-01. The OMB approval number for this program is:
2577-0208.
E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA
number for this NOFA is 14-866, ``Demolition and Revitalization of
Severely Distressed Public Housing (HOPE VI).''
F. Dates.
Application Deadline Date: The application deadline date is June
20, 2008. Electronic applications must be received and validated by
Grants.gov by 11:59:59 p.m. eastern time on the deadline date. See
HUD's General Section of March 19, 2008 and the March 10, 2008 Notice
of FY 2008 Opportunity to Register Early and Other Important
Information for Electronic Application Submission Via Grants.gov, for
application submission, faxing instructions, and timely receipt
requirements. HUD will not accept an entire application submitted by
fax.
G. Additional Overview Content Information.
1. Available Funds. This NOFA announces the availability of
approximately $97.6 million in FY 2008 funds for HOPE VI Revitalization
Program grants.
2. The maximum amount of each grant award is $20 million. It is
anticipated that four or five grant awards will be made.
3. All non-troubled public housing authorities (PHAs) with severely
distressed public housing are eligible to apply, subject to the
requirements under Section III of this NOFA. PHAs that manage only a
Housing Choice Voucher (HCV) program, tribal PHAs, and tribally
designated housing entities are not eligible.
4. A match of at least 5 percent is required.
5. Application materials may be obtained from http://
www.grants.gov/applicants/apply_for_grants.jsp. Any technical
corrections will be published in the Federal Register and posted to
Grants.gov. Frequently asked questions
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will be posted on HUD's Web site at http://www.hud.gov/offices/adm/
grants/otherhud.cfm and http://www.hud.gov/offices/pih/programs/ph/
hope6/.
6. General Section Reference. Section I, ``Funding Opportunity
Description,'' of the General Section of March 19, 2008 is hereby
incorporated by reference.
Full Text of Announcement
I. Funding Opportunity Description
A. Program Description
In accordance with Section 24(a) of the United States Housing Act
of 1937 (42 U.S.C. 1437v) (1937 Act), the purpose of HOPE VI
Revitalization grants is to assist PHAs to:
1. Improve the living environment for public housing residents of
severely distressed public housing projects through the demolition,
rehabilitation, reconfiguration, or replacement of obsolete public
housing projects (or portions thereof);
2. Revitalize sites (including remaining public housing dwelling
units) on which such public housing projects are located and contribute
to the improvement of the surrounding neighborhood;
3. Provide housing that will avoid or decrease the concentration of
very low-income families; and
4. Build sustainable communities.
B. Authority
1. The funding authority for HOPE VI Revitalization grants under
this HOPE VI NOFA is provided by the Consolidated Appropriations Act,
2008 (Pub. L. 110-161, approved December 26, 2007) under the heading
``Revitalization of Severely Distressed Public Housing (HOPE VI).''
2. The program authority for the HOPE VI program is Section 24 of
the 1937 Act, as amended by the Consolidated Appropriations Act, 2008
(Pub. L. 110-161, approved December 26, 2007).
C. Definitions
1. Public Housing Project
A public housing project is a group of assisted housing units that
has a single Project Number assigned by the Director of Public Housing
of a HUD Field Office and has, or had (in the case of previously
demolished units) housing units under an Annual Contributions Contract.
2. Replacement Housing
Under this HOPE VI NOFA, a HOPE VI replacement housing unit shall
be deemed to be any combination of public housing rental units,
eligible homeownership units under Section 24(d)(1)(J) of the 1937 Act,
and HCV assistance that does not exceed the number of units demolished
and disposed of at the targeted severely distressed public housing
project.
3. Severely Distressed
a. In accordance with Section 24(j)(2) of the 1937 Act, the term
``severely distressed public housing'' means a public housing project
(or building in a project) that:
(1) Requires major redesign, reconstruction, or redevelopment, or
partial or total demolition, to correct serious deficiencies in the
original design (including inappropriately high population density),
deferred maintenance, physical deterioration or obsolescence of major
systems, and other deficiencies in the physical plan of the project;
(2) Is a significant contributing factor to the physical decline
of, and disinvestment by public and private entities in, the
surrounding neighborhood;
(3) (a) Is occupied predominantly by families who are very low-
income families with children, have unemployed members, and are
dependent on various forms of public assistance; (b) has high rates of
vandalism and criminal activity (including drug-related criminal
activity) in comparison to other housing in the area; or (c) is lacking
in sufficient appropriate transportation, supportive services, economic
opportunity, schools, civic and religious institutions, and public
services, resulting in severe social distress in the project;
(4) Cannot be revitalized through assistance under other programs,
such as the Capital Fund and Operating Fund programs for public housing
under the 1937 Act, or the programs under sections 9 or 14 of the 1937
Act (as in effect before the effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276,
approved October 21, 1998)), because of cost constraints and inadequacy
of available amounts; and
(5) In the case of an individual building that currently forms a
portion of the public housing project targeted by the application to
this NOFA:
(a) Is sufficiently separable from the remainder of the project of
which the building is part, such that the revitalization of the
building is feasible; or
(b) Was part of the targeted public housing project that has been
legally vacated or demolished, but for which HUD has not yet provided
replacement housing assistance (other than tenant-based assistance).
``Replacement housing assistance'' is defined as funds that have been
furnished by HUD to perform major rehabilitation on, or reconstruction
of, the public housing units that have been legally vacated or
demolished.
b. A severely distressed project that has been legally vacated or
demolished (but for which HUD has not yet provided replacement housing
assistance, other than tenant-based assistance) must have met the
definition of physical distress not later than the day the demolition
application approval letter was dated by HUD.
4. Targeted Project
The targeted project is the current public housing project that
will be revitalized with funding from this NOFA. The targeted project
may include more than one public housing project or be a part of a
public housing project. See Section III.C.2 of this NOFA for thresholds
related to eligibility of multiple public housing projects and
separability of a part of a public housing project.
5. Temporary Relocation
There are no provisions for ``temporary relocation'' under the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA). See Handbook 1378, Chapter 2, Section 207 for
temporary relocation protections provided under the URA regulations and
HUD policy. The Handbook can be obtained through HUDClips at http://
www.hud.gov/offices/adm/hudclips/index.cfm.
II. Award Information
A. Availability of HOPE VI Funds
1. Revitalization Grants
Approximately $97.6 million of the FY 2008 HOPE VI appropriation
has been allocated to fund HOPE VI Revitalization grants and will be
awarded in accordance with this NOFA. There will be approximately four
or five awards.
2. Requested Amount
The maximum amount you may request in your application for grant
award is limited to $20 million or the sum of the amounts in Section
IV.E.3., whichever is lower. HCV assistance is in addition to this
amount.
3. Housing Choice Voucher (HCV) Assistance
Housing choice voucher (HCV) assistance is available from the
tenant protection voucher fund to successful applicants that receive
the
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Revitalization grant awards. The dollar amount of HCV assistance is in
addition to the $20 million maximum award amount and will be based upon
resident relocation needs. Applicants must prepare their HCV assistance
applications for the targeted project in accordance with the
requirements of Notice PIH 2007-10 (and any reinstatement of or
successor to that Notice) and submit it in its entirety with the HOPE
VI Revitalization Application. HUD will process the HCV assistance
applications for funded HOPE VI applicants. If you are not funded by
this NOFA, the HCV application will not be processed. The notice can be
found on the Internet at http://www.hud.gov/offices/adm/hudclips/
notices/pih/07-10PIH.doc
4. Grant Term
The period for completion of construction shall not exceed 54
months from the date the NOFA award is executed by HUD, as described in
the grant agreement. See Section IV.E.1. for statutory time limits
related to the grant and expenditure of funds.
III. Eligibility Information
A. Eligible Applicants
1. Only PHAs that have severely distressed housing in their
inventory and that are otherwise in conformance with the threshold
requirements provided in Section III.C. of this NOFA are eligible to
apply.
2. HCV Programs Only, Tribal Housing Agencies, and Others. PHAs
that administer only HCV/Section 8 programs, tribal housing agencies
and tribally designated housing entities, are not eligible to apply.
Nonprofit organizations, for-profit organizations, and private citizens
and entrepreneurs are not eligible to apply.
3. Troubled Status. If HUD has designated your PHA as troubled
pursuant to section 6(j)(2) of the 1937 Act, HUD will use documents and
information available to it to determine whether you qualify as an
eligible applicant. In accordance with section 24(j) of the 1937 Act,
the term ``applicant'' means:
a. Any PHA that is not designated as ``troubled'' pursuant to
section 6(j)(2) of the 1937 Act;
b. Any PHA for which a private housing management agent has been
selected, or a receiver has been appointed, pursuant to section 6(j)(3)
of the 1937 Act; and
c. Any PHA that is designated as ``troubled'' pursuant to section
6(j)(2) of the 1937 Act and that:
(1) Is designated as troubled principally for reasons that will not
affect its capacity to carry out a revitalization program;
(2) Is making substantial progress toward eliminating the
deficiencies of the agency that resulted in its troubled status;
(3) Has not been found to be in noncompliance with fair housing or
other civil rights requirements; or
(4) Is otherwise determined by HUD to be capable of carrying out a
revitalization program.
B. Cost Sharing or Matching
1. Match Requirements
a. Revitalization Grant Match. HUD is required by the 1937 Act (42
U.S.C. 1437v(c)(1)(A)) to include the requirement for matching funds
for all HOPE VI-related grants. You are required to have in place a
match in the amount of 5 percent of the requested grant amount in cash
or in-kind donations. Applications that do not demonstrate the minimum
5 percent match will not be considered for funding. This is considered
a threshold requirement under Section III.C.2 of this NOFA.
b. Additional Community and Supportive Services (CSS) Match. (1) In
accordance with the 1937 Act (42 U.S.C. 1437v(c)(1)(B)), in addition to
the 5 percent Revitalization grant match in section a above, you may be
required to have in place a CSS match. Funds used for the
Revitalization grant match cannot be used for the CSS match.
(2) If you are selected for funding through this NOFA, you may use
up to 15 percent of your grant for CSS activities. However, if you
propose to use more than 5 percent of your HOPE VI grant for CSS
activities, you must have in place funds (cash or in-kind donations)
from sources other than HOPE VI that match the amount between 5 and 15
percent of the grant that you will use for CSS activities. These
resources do not need to be new commitments in order to be counted for
match. This is considered a threshold requirement under Section III.C.2
of this NOFA.
c. No HOPE VI Funding in Match. In accordance with section 24(c) of
the Act, for purposes of calculating the amount of matching funds
required by Sections a and b above, you may NOT include amounts from
HOPE VI program funding, including HOPE VI Revitalization, HOPE VI
Demolition, HOPE VI Neighborhood Networks or HOPE VI Main Street
grants. You may include funding from other public housing sources
(e.g., Capital Funds, Resident Opportunities and Self-Sufficiency
(ROSS) funds), other federal sources any state or local government
source, and any private contributions. You may also include the value
of donated material or buildings, 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 or administrative costs provided.
d. For match documentation requirements, see section III.C.3.oo,
Program Requirements that Apply to Match and Leverage.
C. Other
1. Eligible Revitalization Activities
HOPE VI Revitalization grants may be used for activities to carry
out revitalization programs for severely distressed public housing in
accordance with Section 24(d) of the 1937 Act. Revitalization
activities approved by HUD must be conducted in accordance with the
requirements of this NOFA. The following is a list of eligible
activities.
a. Relocation
Relocation, including reasonable moving expenses, for residents
displaced as a result of the revitalization of the project. See
sections III.C.3. and V.A. of this NOFA for relocation requirements.
b. Demolition
Demolition of dwelling units or non-dwelling facilities, in whole
or in part, although demolition is not a required element of a HOPE VI
revitalization plan.
c. Disposition
Disposition of a severely distressed public housing site, by sale
or lease, in whole or in part, in accordance with section 18 of the
1937 Act and implementing regulations at 24 CFR part 970. A lease of
one year or longer that is not incident to the normal operation of a
project is considered a disposition that is subject to section 18 of
the 1937 Act.
d. Rehabilitation and Physical Improvement
Rehabilitation and physical improvement of:
(1) Public housing; and
(2) Community facilities, provided that the community facilities
are primarily intended to facilitate the delivery of community and
supportive services for residents of the public housing project and
residents of off-site replacement housing, in accordance with 24 CFR
968.112(b), (d), (e), and (g)-(o), and 24 CFR 968.130 and 968.135(b)
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and (d) or successor regulations, as applicable.
e. Development
Development of:
(1) Public housing replacement units; and
(2) Other units (e.g., market-rate units), provided a need exists
for such units and such development is performed with non-public
housing funds.
f. Homeownership Activities
Assistance involving the rehabilitation and development of
homeownership units. Assistance may include:
(1) Down payment or closing cost assistance;
(2) Hard or soft second mortgages; or
(3) Construction or permanent financing for new construction,
acquisition, or rehabilitation costs related to homeownership
replacement units.
g. Acquisition
Acquisition of:
(1) Rental units and homeownership units;
(2) Land for the development of off-site replacement units and
community facilities (provided that the community facilities are
primarily intended to facilitate the delivery of community and
supportive services for residents of the public housing project and
residents of off-site replacement housing);
(3) Land for economic development-related activities, provided that
such acquisition is performed with non-public housing funds.
h. Management Improvements
Necessary management improvements, including transitional security
activities.
i. Administration, Planning, Etc
Administration, planning, technical assistance, and other
activities (including architectural and engineering work, program
management, and reasonable legal fees) that are related to the
implementation of the revitalization plan, as approved by HUD. See Cost
Control Standards in Section III.C.3.v. of this NOFA.
j. Community and Supportive Services (CSS)
(1) The CSS component of the HOPE VI program encompasses all
activities that are designed to promote upward mobility, self-
sufficiency, and improved quality of life for the residents of the
public housing project involved.
(2) CSS activities. CSS activities may include, but are not limited
to:
(a) Educational activities that promote learning and serve as the
foundation for young people from infancy through high school
graduation, helping them to succeed in academia and the professional
world. Such activities, which include after-school programs, mentoring,
and tutoring, must be created with strong partnerships with public and
private educational institutions.
(b) Adult educational activities, including remedial education,
literacy training, tutoring for completion of secondary or
postsecondary education, assistance in the attainment of certificates
of high school equivalency, and English as a Second Language courses,
as needed.
(c) Readiness and retention activities, which frequently are key to
securing private sector commitments to provide jobs.
(d) Employment training activities that include results-based job
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
(e) Programs that provide entry-level, registered apprenticeships
in construction, construction-related, maintenance, or other related
activities. A registered apprenticeship program is one that has been
registered with either a State Apprenticeship Agency recognized by the
Department of Labor's (DOL) Office of Apprenticeship Training, Employer
and Labor Services (OATELS) or, if there is no recognized state agency,
by OATELS. See also DOL regulations at 29 CFR part 29.
(f) Training on topics such as parenting skills, consumer
education, family budgeting, and credit management.
(g) 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. The Family Self-Sufficiency program can also be used to
promote homeownership, providing assistance with escrow accounts and
counseling.
(h) Coordinating with health care providers or providing on-site
space for health clinics, doctors, wellness centers, dentists, etc.,
that will primarily serve the public housing residents. HOPE VI funds
may not be used to provide direct medical care to residents.
(i) Substance and alcohol abuse treatment and counseling.
(j) Activities that address domestic violence treatment and
prevention.
(k) Child care services that provide sufficient hours of operation
to facilitate parental access to education and job opportunities, serve
appropriate age groups, and stimulate children to learn.
(l) Transportation, as necessary, to enable all family members to
participate in available CSS activities and to commute to their places
of employment.
(m) Entrepreneurship training and mentoring, with the goal of
establishing resident-owned businesses.
k. Leveraging
Leveraging other resources, including additional housing resources,
supportive services, job creation, and other economic development uses
on or near the project that will benefit future residents of the site.
2. Threshold Requirements
Applications must meet all threshold requirements in order to be
rated and ranked, including the match requirements under Section III.B
of this NOFA. If an application does not meet all threshold
requirements, HUD will not consider the application as eligible for
funding and will not rate and rank it. HUD will screen for technical
deficiencies and administer a cure period. The subsection entitled,
``Corrections to Deficient Applications,'' in section V.B. of the
General Section is incorporated by reference and applies to this NOFA
unless otherwise stated. Clarifications or corrections of technical
deficiencies in accordance with the information provided by HUD must be
submitted within 7 calendar days of the date of receipt of the HUD
notification. (If the deadline date falls on a Saturday, Sunday, or
federal holiday, your correction must be received by HUD on the next
day that is not a Saturday, Sunday, or federal holiday.) If an
applicant does not cure all its technical deficiencies that relate to
threshold requirements within the cure period, HUD will consider the
threshold(s) in question to be failed, will not consider the
application as eligible for funding, and will not rate and rank it.
Applicants MUST review and follow documentation requirements provided
in this Thresholds Requirements Section and the Program Requirements of
Section III.C.3. A false statement (or certification) in an application
is grounds for denial or termination of an award and grounds for
possible prosecution as provided in 18 U.S.C. 1001, 1010, and 1012, and
32 U.S.C. 3729 and 3802. Required forms, certifications and assurances
must be included in the HOPE VI application and will be available on
the Internet at http://www.grants.gov/applicants/apply_for_
grants.jsp.
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a. Curable Thresholds
The following thresholds may be cured in accordance with the
criteria above. Examples of curable (correctable) technical
deficiencies include, but are not limited to, inconsistencies in the
funding request, failure to submit the proper certifications (e.g.,
form HUD-2880), and failure to submit a signature and/or date of
signature on a certification.
(1) Severe Distress of Targeted Project. The targeted public
housing project must be severely distressed. See section I.C. of this
NOFA for the definition of ``severely distressed.'' If the targeted
project is not severely distressed, your application will not be
considered for funding. Applicants must use the severe distress
certification form provided with this NOFA and place it in their
attachments. The certification must be signed by an engineer or
architect licensed by a state licensing board. The license does not
need to have been issued in the same state as the severely distressed
project. The engineer or architect must include his or her license
number and state of registration on the certification. The engineer or
architect may not be an employee of the housing authority or the city.
See Section IV.B.3.c. of the General Section for information on
submitting third party documents.
(2) Land Use. Your application must include a certification from
the appropriate local official (not the Executive Director) documenting
that all required land use approvals for developed and undeveloped land
have been secured for any off-site housing and other proposed off-site
uses, or that the request for such approval(s) is on the agenda for the
next meeting of the appropriate authority in charge of land use. In the
case of the latter, the certification must include the date of the
meeting. You must include this certification in your attachments.
(3) Selection of Developer. You must assure that:
(a) You have initiated a request for quotation (RFQ) by the
application deadline date for the competitive procurement of a
developer for your first phase of construction, in accordance with 24
CFR 85.36 and 24 CFR 941.602(d) (as applicable). If you change
developers after you are selected for funding, HUD reserves the right
to rescind the grant; or
(b) You will act as your own developer for the proposed project. If
you change your plan and procure an outside developer after you are
selected for funding, HUD reserves the right to rescind the grant.
(c) You must demonstrate compliance with this threshold through
completion and inclusion of the Assurances for HOPE VI Application
document.
(4) Relocation Plan Assurance.
(a) If you have not yet relocated residents, you must assure that:
(i) A HOPE VI Relocation Plan was completed as of the application
deadline date. To learn more about HOPE VI Relocation Plans, applicants
may review Handbook 1378 and Notice CPD 02-08, ``Guidance on the
Application of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI
Projects'' and Notice 04-02, ``Revision to Notice CPD 02-08, Guidance
on the Application of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI
Projects;'' These notices can be found at http://www.hud.gov/offices/
adm/hudclips/notices/cpd/04-2c.doc and http://www.hud.gov/offices/adm/
hudclips/notices/cpd/02-8c.doc.
(ii) That it conforms to the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (URA) requirements; and
(iii) That it implements HOPE VI relocation goals, as described in
section V.A.6. of this NOFA. This means your plan must describe how the
HOPE VI Relocation Plan incorporates the HOPE VI relocation goals
contained in section V.A.6.
(b) If relocation was completed (i.e., the targeted public housing
site is vacant) as of the application deadline date, rather than
certifying that the HOPE VI Relocation Plan has been completed, you
must assure that the relocation was completed in accordance with URA
and/or section 18 requirements (depending on which of these
requirements applied to the demolition in question).
(c) You must demonstrate compliance with this threshold through
completion and inclusion of the Assurances for HOPE VI Application
document.
(5) Resident Involvement in the Revitalization Program Assurance.
You must assure that you have involved affected public housing
residents at the beginning and during the planning process for the
revitalization program, prior to submission of your application. If you
have not included affected residents in the planning process, your
application will not be considered for funding. You must follow the
resident involvement requirements listed in the Program Requirements
section, section III.C.3. of this NOFA. You must demonstrate compliance
with this threshold through completion and inclusion of the Assurances
for HOPE VI Application document.
(6) Standard Forms and Certifications. The last part of your
application will be comprised of standard certifications common to many
HUD programs. For the HOPE VI application, the required standard forms
and certifications are located in Section IV.B. of this NOFA.
(7) HOPE VI Revitalization Applicant Certifications. You must
include in your application a certification from the Chairman of your
Board of Commissioners to the requirements listed in the HOPE VI
Revitalization Applicant Certifications. You must include this
certification in your attachments.
(8) Capital Fund Financing Program (CFFP). This threshold applies
to any PHA with an approved CFFP proposal or CFFP proposal submitted
and under review by HUD before the announcement of FY 2008 HOPE VI
Revitalization grant awards. As the pledges of Capital Funds are
general in nature and not project-specific, this threshold applies to
all CFFP proposals approved or submitted and under review by HUD for
the PHA's public housing portfolio, not just the public housing site
targeted by this HOPE VI application. HOPE VI Revitalization
applications may not be from PHAs that have CFFPs approved or in
process, unless:
(a) The PHA includes in the application an opinion from its legal
counsel that the activities proposed under the HOPE VI Revitalization
application are permitted under the financing documents (as approved
or, if under review, as currently drafted), or to the extent required,
any approvals required under the financing documents have been
obtained; and
(b) The PHA certifies that, to the extent HUD determines that the
Capital Fund projections in its CFFP Proposal did not accurately or
completely incorporate the reduction in public housing units that would
be caused by the HOPE VI activity, if it receives the HOPE VI
Revitalization grant, and prior to undertaking the HOPE VI activity, it
will use Capital Funds, or other eligible funds to defease, redeem, or
otherwise prepay the CFFP financing. The PHA must make this
certification even if the proposal has already been approved in the
event HUD makes such a determination at a later time. This prepayment
must be sufficient to maintain the same debt coverage ratio in the year
immediately following any reduction in annual contribution contract
(ACC) Units related to the HOPE VI grant (based on the then-current
year's capital fund allocation,
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but giving effect to the change in ACC Units in a manner acceptable to
HUD) as existed prior to any reductions occurring as a result of the
HOPE VI Revitalization grant. This certification may be provided in the
form of a letter from the Executive Director.
(c) HUD will consult internal CFFP records to verify which
applicants have pending or approved CFFP proposals.
b. Non-Curable Thresholds
The following thresholds may not be cured in accordance with the
criteria referenced in III.C.2. above.
(1) Number of Applications. Each applicant may submit a maximum of
one HOPE VI Revitalization application, in accordance with the criteria
of this NOFA. The application must target a severely distressed public
housing project, in accordance with the Contiguous, Single, and
Scattered-Site Projects threshold requirement below. If HUD receives
electronically multiple versions of the application, HUD will rate and
rank the last version of the application received and validated by
Grants.gov by the application deadline. All other applications (i.e.,
prior versions) will not be considered eligible. If applicants find
after submitting an application that they want to amend or adjust their
application and it is prior to the deadline date, applicants should be
aware that they must resubmit the entire application, including all fax
transmissions previously sent, to ensure that HUD gets a complete
application. HUD also recommends that fax transmissions associated to
resubmitted applications be sent following validation by Grants.gov
using the fax transmittal cover sheet (form HUD-96011) associated to
the application. Submitting the fax transmittal after validation will
ensure that your faxes will be associated to the most recent
application and not a previously submitted application. HUD's system
matches faxes as they come into the system and if a previous
application exists prior to the new application arriving, the fax will
be associated to the application already in HUD's system. HUD cannot
re-associate faxes once they have been attached to an application. See
Section IV.B for further instruction on submission requirements,
including incorporation of the General Section.
(a) HUD will not consider applications sent entirely by facsimile
(See the General Section).
(b) HUD will not accept for review or evaluation any videos
submitted as part of the application or appendices.
(c) HUD will not consider any application that does not meet the
timely submission requirements for electronic submission, in accordance
with the criteria of the General Section.
(2) Appropriateness of Proposal. In accordance with section
24(e)(1) of the 1937 Act, each application must demonstrate the
appropriateness of the proposal (revitalization plan) in the context of
the local housing market relative to other alternatives. You must
discuss other possible alternatives in the local housing market and
explain why the housing envisioned in the application is more
appropriate. This is a statutory requirement and an application
threshold. If you do not demonstrate the appropriateness of the
proposal (revitalization plan) in the context of the local housing
market relative to other alternatives, your application will not be
considered for funding. Applicants must demonstrate compliance with
this threshold in their narrative. Examples of alternative proposals
may include:
(a) Rebuilding or rehabilitating an existing project or units at an
off-site location that is in an isolated, non-residential, or otherwise
inappropriate area;
(b) Proposing a range of incomes, housing types (rental,
homeownership, market-rate, public housing, townhouse, detached house,
etc.), or costs that cannot be supported by a market analysis; or
(c) Proposing to use the land in a manner that is contrary to the
goals of your PHA.
(3) Contiguous, Single, and Scattered-Site Projects. Except as
provided in sections (a) and (b) below, each application must target
one severely distressed public housing project. The public housing
project(s) may already be vacated and/or demolished as of the
application deadline date. You must provide a city map at a scale
sufficient to illustrate the current targeted site(s), whether
contiguous, single, or scattered-site projects. In addition to the
information below, see the instructions for the city map in Section
IV.B.
(a) Contiguous Projects. Each application may request funds for
more than one project if those projects are immediately (i) adjacent to
one another or (ii) within a quarter-mile of each other. If you include
more than one project in your application, you must provide a map that
clearly indicates that the projects are either adjacent or within a
quarter-mile of each other. If HUD determines that they are not, your
application will not be considered for funding.
(b) Scattered Site Projects. Your application may request funds to
revitalize a scattered site public housing project. The sites targeted
in an application proposing to revitalize scattered sites (regardless
of whether the scattered sites are under multiple project numbers) must
fall within an area with a one-mile radius. You may identify a larger
site if you can show that all of the targeted scattered site units are
located within the hard edges (e.g., major highways, railroad tracks,
lakeshore, etc.) of a neighborhood. If you propose to revitalize a
project that extends beyond a one-mile radius or is otherwise beyond
the hard edges of a neighborhood, your application will not be
considered for funding. If you propose to revitalize a scattered site
public housing project, you must provide a map that clearly indicates
that the projects fall within an area with a one-mile radius or, if
larger, are located within the hard edges (e.g., major highways,
railroad tracks, lakeshore, etc.) of a neighborhood.
(4) Sites Previously Funded. (a) You may submit a Revitalization
application that targets part of a project that is being, or has been,
revitalized or replaced under a HOPE VI Revitalization grant awarded in
previous years. You may not apply for new HOPE VI Revitalization funds
for units in that project that were funded by the existing HOPE VI
Revitalization grant, even if those funds are inadequate to pay the
costs to revitalize or replace all of the targeted units. For example,
if a project has 700 units and you were awarded a HOPE VI
Revitalization grant or other HUD public housing funds to address 300
of those units, you may submit an FY 2008 HOPE VI Revitalization
application to revitalize the remaining 400 units. You may not apply
for funds to supplement work on the original 300 units. If you request
funds to revitalize/replace the units not funded by the previous HOPE
VI Revitalization grant, you must provide a listing of which units were
funded by the previous grant and which units are being proposed for
funding under the current grant application. You must discuss
compliance with this threshold in your narrative. If you need to
provide a listing of units as described above, this may be done in the
attachments section (see Section IV.B). If you request funds to
revitalize units or buildings that have been funded by an existing HOPE
VI Revitalization grant, your application will not be considered for
funding.
(b) You may not request HOPE VI Revitalization grant funds for
units currently under construction or already completed as of the
application deadline, in accordance with the section IV(E), Funding
Restrictions. You must demonstrate compliance with this threshold in
your narrative.
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(5) Separability. In accordance with section 24(j)(2)(A)(v) of the
1937 Act, if you propose to target only a portion of a project for
revitalization, in your narrative you must: (1) Demonstrate to HUD's
satisfaction that the severely distressed public housing is
sufficiently separable from the remainder of the project, of which the
building is a part, to make use of the building feasible for
revitalization. Separations may include a road, berm, catch basin, or
other recognized neighborhood distinction; and (2) Demonstrate that the
site plan and building designs of the revitalized portion will provide
defensible space for the occupants of the revitalized building(s) and
that the properties that remain will not have a negative influence on
the revitalized buildings(s), either physically or socially. You must
demonstrate compliance with this threshold in your narrative. If you do
not propose to target only a portion of a project for revitalization,
you may indicate, ``n/a,'' for not applicable, in your narrative.
(6) Desegregation Orders. You must be in full compliance with any
desegregation or other court order, and with any voluntary compliance
agreements related to Fair Housing (e.g., Title VI of the Civil Rights
Act of 1964, the Fair Housing Act, and section 504 of the
Rehabilitation Act of 1973) that affects your public housing program
and that is in effect on the date of application submission. If you are
not in full compliance, your application will be ineligible for
funding. HUD will evaluate your compliance with this threshold.
(7) Dun and Bradstreet Data Universal Numbering System (DUNS)
Number Requirement. This threshold is hereby incorporated from the
General Section (Section III.C.2.b.). All applicants seeking funding
directly from HUD must obtain a DUNS number and include the number in
its SF 424 Application for Federal Assistance submission. Failure to
provide a DUNS number will prevent you from obtaining an award,
regardless of whether it is a new award or renewal of an existing
award. Applicants should read the complete instructions in the General
Section for completing the Grants.gov registration process. See the
General Section for additional information regarding this requirement.
(8) Compliance with Fair Housing and Civil Rights Laws. This
threshold is hereby incorporated from the General Section (Section
III.C.2.c.).
(9) Delinquent Federal Debts. This threshold is hereby incorporated
from the General Section (Section III.C.2.e). Applicants that at the
time of award have federal debt or are in default of an agreement with
the Internal Revenue Service (IRS) will not be funded. Applicants
selected for funding have an obligation to report to HUD changes in
status of a current IRS agreement covering federal debt.
(10) Debarment and Suspension. This threshold is hereby
incorporated from the General Section (Section III.C.2.j).
(11) Default. Existing HOPE VI Revitalization Grantees that are in
default of the HOPE VI Revitalization grant agreement as of the
application deadline date are not eligible for funding under this NOFA.
A grantee is in default if it has received a letter from HUD indicating
its default status and has not resolved the issues to HUD's
satisfaction.
(12) Site Control. If you propose to develop off-site (off-site is
any land other than the original public housing project site targeted
by the application; see ``Targeted Project'' under Definitions) housing
in any phase of your proposed revitalization plan (regardless of
financing type), you must provide evidence in your application that you
as the PHA, your PHA's instrumentality, or your developer (including
when any of these three entities are part of a partnership that will
own the property(ies)), have site control of every property. For the
developer to count, the developer must be under a contract, or some
equivalent form of predevelopment agreement, with you that dedicates
the off-site property(ies) for the uses proposed in your revitalization
plan. If you propose to develop off-site housing and you do not provide
acceptable evidence of site control, your entire application will be
disqualified from further consideration for funding.
(a) Site control documentation may only be contingent upon:
(i) The receipt of the HOPE VI grant;
(ii) Satisfactory compliance with the environmental review
requirements of this NOFA;
(iii) The site and neighborhood standards in section III.C.3. of
this NOFA; and
(iv) Standard underwriting procedures.
(b) If you demonstrate site control through an option to purchase,
the option must extend for at least 180 days after the application
deadline date.
(c) Evidence may include, but is not limited to, an option to
purchase the property, a sales agreement, a land swap, a deed, or a
ground lease. Evidence, however, may NOT include a letter from the
mayor or other official, letters of support from members of the
relevant municipal entities, or a resolution evidencing the PHA's
intent to exercise its power of eminent domain.
(d) If one or more of your off-site parcels are a public housing
property, you still must provide evidence of site control for those
properties.
(e) You must include documented evidence of site control in your
attachments.
3. Program Requirements
a. Demolition
(1) You may not carry out nor permit others to carry out the
demolition of the targeted project or any portion of the project until
HUD approves, in writing, one of the following ((a)-(c)), and until HUD
has also: (i) Approved a Request for Release of Funds submitted in
accordance with 24 CFR part 58, or (ii) if HUD performs an
environmental review under 24 CFR part 50, has approved the property
for demolition, in writing, following its environmental review:
(a) Information regarding demolition in your HOPE VI Revitalization
Application, along with Supplemental Submissions requested by HUD after
the award of the grant. Section 24(g) of the 1937 Act provides that
severely distressed public housing that is demolished pursuant to a
revitalization plan is not required to be approved through a demolition
application under section 18 of the 1937 Act or regulations at 24 CFR
part 970. If you do not receive a HOPE VI Revitalization grant, the
information in your application will not be used to process a request
for demolition;
(b) A demolition application under section 18 of the 1937 Act.
While a section 18 approval is not required for HOPE VI related
demolition, you will not have to wait for demolition approval through
your supplemental submissions, as described in section (a) above; or
(c) A section 202 Mandatory Conversion Plan, in compliance with
regulations at 24 CFR part 971 and other applicable HUD requirements,
if the project is subject to Mandatory Conversion (section 202 of the
Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub.
L. 104-134, approved April 26, 1996). A Mandatory Conversion Plan
concerns the removal of a public housing project from a PHA's
inventory.
b. Development
(1) For any standard (non-mixed finance) public housing development
activity (whether on-site reconstruction or off-site development), you
must
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obtain HUD approval of a standard development proposal submitted under
24 CFR part 941 (or successor part).
(2) For mixed-finance housing development, you must obtain HUD
approval of a mixed-finance proposal, submitted under 24 CFR part 941,
subpart F (or successor part and subpart).
(3) For new construction of community facilities primarily intended
to facilitate the delivery of community and supportive services for
residents of the project and residents of off-site replacement housing,
you must comply with 24 CFR part 941 (or successor part). Information
required for this activity must be included in either a standard or
mixed-finance development proposal, as applicable.
c. Disposition
(1) Disposition of a severely distressed public housing site, by
sale or lease, in whole or in part, may be done in accordance with
section 18 of the 1937 Act and implementing regulations at 24 CFR part
970.
(2) The Grantee will comply with the provisions of section 18 of
the 1937 Act, 24 CFR part 970, as may be modified or amended from time
to time, and the provisions of its approved disposition application
(the approved ``Disposition Application''), unless otherwise modified
in writing by HUD. The Grantee will also comply with procedures for
processing dispositions associated with mixed-finance projects as set
forth by HUD.
(3) A lease of one year or more that is not incident to the normal
operation of a development is considered to be a disposition that is
subject to section 18 of the 1937 Act.
d. Homeownership
(1) For homeownership replacement units developed under a
revitalization plan, you must obtain HUD approval of a homeownership
proposal. Your homeownership proposal must conform to either:
(a) Section 24(d)(1)(J) of the 1937 Act; or
(b) Section 32 of the 1937 Act (see 24 CFR part 906). Additional
information on this option may be found at www.hud.gov/offices/pih/
centers/sac/homeownership.
(2) The homeownership proposal must be consistent with the Section
8 Area Median Income (AMI) limitations (80 percent of AMI) and any
other applicable provisions under the 1937 Act. (HUD publishes AMI
tables for each family size in each locality annually. The income limit
tables can be found at http://www.huduser.org/datasets/il/il06/
index.html.)
e. Acquisition
(1) Acquisition Proposal. Before you undertake any acquisition
activities with HOPE VI or other public housing funds, you must obtain
HUD approval of an acquisition proposal that meets the requirements of
24 CFR 941.303.
(2) Rental Units. For acquisition of rental units in existing or
new apartment buildings, single family subdivisions, etc., with or
without rehabilitation, for use as public housing replacement units,
you must obtain HUD approval of a Development Proposal in accordance
with 24 CFR 941.304 (conventional development) or 24 CFR 941.606
(mixed-finance development).
(3) Land for Off-Site Replacement Units. For acquisition of land
for public housing or homeownership development, you must comply with
24 CFR part 941 or successor part.
(4) Land for Economic Development-Related Activities.
(a) Acquisition of land for this purpose is eligible only if the
economic development-related activities specifically promote the
economic self-sufficiency of residents.
(b) Limited infrastructure and site improvements associated with
developing retail, commercial, or office facilities, such as rough
grading and bringing utilities to (but not on) the site, are eligible
activities with prior HUD approval.
f. Access to Services
For both on-site and any off-site units, your overall
Revitalization plan must result in increased access to municipal
services, jobs, mentoring opportunities, transportation, and
educational facilities; i.e., the physical plan and self-sufficiency
strategy must be well-integrated and strong linkages must be
established with the appropriate federal, state, and local agencies,
nonprofit organizations, and the private sector to achieve such access.
g. 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. You are encouraged to visit HUD's
Web site on Accessibility Analysis of Model Building Codes at http://
www.hud.gov/offices/fheo/disabilities/modelcodes/. You are encouraged
to read the ``Final Report of HUD Review of the Fair Housing
Accessibility Requirements in the 2003 International Building Code,''
which can be accessed from the Web page above, along with other
valuable information on model codes and fair housing accessibility
guidelines.
(2) Deconstruction. HUD encourages you to design programs that
incorporate sustainable construction and demolition practices, such as
the dismantling or ``deconstruction'' of public housing units,
recycling of demolition debris, and reusing of salvage materials in new
construction. ``A Guide to Deconstruction: An Overview of Destruction
with a Focus on Community Development Opportunities'' can be found at
http://www.huduser.org/publications/destech/decon.html.
(3) Partnership for Advancing Technology in Housing (PATH). HUD
encourages you to use PATH technologies in the construction and
delivery of replacement housing. PATH is a voluntary initiative that
seeks to accelerate the creation and widespread use of advanced
technologies to radically improve the quality, durability,
environmental performance, energy efficiency, and affordability of our
nation's housing.
(a) PATH's goal 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, the list of technologies, the latest PATH
Newsletter, results from field demonstrations, and PATH projects can be
found at http://www.pathnet.org.
(4) Energy Efficiency.
(a) New construction or rehabilitation must comply with the
International Energy Conservation Code (IECC) 2006, or in the case of
multifamily high-rises, ASHRAE Standard 90.1-2004, or applicable
successor codes.
(b) HUD encourages you to set higher standards, where cost
effective, for energy and water efficiency in HOPE VI new construction,
which can achieve
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utility savings of 30 to 50 percent with minimal extra cost.
(c) You are encouraged to negotiate with your local utility company
to obtain a lower rate. Utility rates and tax laws vary widely
throughout the country. In some areas, PHAs are exempt or partially
exempt from utility rate taxes. Some PHAs have paid unnecessarily high
utility rates because they were billed at an incorrect rate
classification.
(d) Local utility companies may be able to provide grant funds to
assist in energy efficiency activities. States may also have programs
that will assist in energy efficient building techniques.
(e) You 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; and
(vi) Energy Star appliances.
(5) Universal Design. HUD encourages you to incorporate the
principles of universal design in the construction or rehabilitation of
housing, retail establishments, and community facilities, or 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. A 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, which can be
found at http://www.hud.gov/energy/energyactionplan.pdf. As a first
step in implementing the energy plan, HUD, the Environmental Protection
Agency, and the Department of Energy have signed a joint partnership to
promote energy efficiency in HUD's affordable housing efforts and
programs. The purposes of the Energy Star partnership are to promote
energy efficiency in affordable housing stock and to help protect the
environment. Applicants constructing, rehabilitating, or maintaining
housing or community facilities are encouraged to promote and adopt
energy efficiency in design and operations. They are urged especially
to purchase and use Energy Star-labeled products. Applicants providing
housing assistance or counseling services are encouraged to promote and
adopt Energy Star building by homebuyers and renters. Program
activities can include developing Energy Star promotional and
information 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, call 888-588-9920 TTY. See also
the energy efficiency requirements in section III.C.3. above. See
section V.A.9.g. of this NOFA for the Energy Star sub-rating factor.
(7) Lead-Based Paint. You 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.). You
also must comply with regulations at 24 CFR part 35, 24 CFR 965.701,
and 24 CFR 968.110(k), as they may be amended or revised from time to
time. Unless otherwise provided, you will be responsible for lead-based
paint evaluation and reduction activities. The National Lead
Information Hotline is (800) 424-5323.
h. Federal Labor Standards
Federal labor standards are applicable to HOPE VI grants. These
labor standards involve the payment of not less than prevailing wage
rates, and may include overtime requirements (premium pay for hours
worked over 40 in a workweek), and recordkeeping and reporting
requirements.
(1) Davis-Bacon wage requirements apply to the development of any
public housing rental units or homeownership units developed with HOPE
VI grant funds. The PHA must obtain the appropriate Davis-Bacon wage
decision, which sets forth the minimum wage rates that may be paid to
construction laborers and mechanics. This wage decision and provisions
requiring compliance with federal labor standards must be included in
any bid specifications and construction contracts. Development work
undertaken directly by the PHA, with its own employees, is also subject
to Davis-Bacon wage requirements.
(2) HUD-determined wage rates are applicable to all maintenance
laborers and mechanics engaged in the operation of revitalized housing.
(3) Exclusions. Under Section 12(b) of the 1937 Act, prevailing
wage requirements do not apply to individuals who:
a. Perform services for which they volunteered;
b. Do not receive compensation for those services or are paid
expenses, reasonable benefits, or a nominal fee for the services; and
c. Are not otherwise employed in the work involved (24 CFR part
70).
(4) If other federal programs are used in connection with HOPE VI
activities, federal labor standards requirements apply to the extent
required by the other federal programs on portion of the project that
are not subject to Section 12 of the 1937 Act.
i. Operation and Management Principles and Policies, and Management
Agreement
HOPE VI Revitalization grantees will be required to develop
Management Agreements that describe their operation and management
principles and policies for their public housing units. You and your
procured property manager, if applicable, must comply (to the extent
required) with the provisions of 24 CFR part 966 in planning for the
implementation of the operation and management principles and policies
described below.
(a) Rewarding work and promoting family stability by promoting
positive incentives such as income disregards and ceiling rents;
(b) Instituting a system of local preferences adopted in response
to local housing needs and priorities, e.g., preferences for victims of
domestic violence, residency preferences, working families, and
disaster victims. Note that local preferences for public housing must
comply with Fair Housing requirements at 24 CFR 960.206;
(c) Encouraging self-sufficiency by including lease requirements
that promote involvement in the resident
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association, performance of community service, participation in self-
sufficiency activities, and transitioning from public housing;
(d) Implementing site-based waiting lists that follow project-based
management principles for the redeveloped public housing. Note that
site-based waiting lists for public housing must comply with Fair
Housing requirements at 24 CFR 903.7(b)(2);
(e) Instituting strict applicant screening requirements such as
credit checks, references, home visits, and criminal records checks;
(f) Strictly enforcing lease and eviction provisions;
(g) Improving the safety and security of residents through the
implementation of defensible space principles and the installation of
physical security systems such as surveillance equipment, control
engineering systems, etc.;
(h) Enhancing ongoing efforts to eliminate drugs and crime from
neighborhoods through collaborative efforts with federal, state, and
local crime prevention programs and entities.
j. Non-Fungibility for Moving To Work (MTW) PHAs
Funds awarded under this NOFA are not fungible under MTW agreements
and must be accounted for separately, in accordance with the HOPE VI
Revitalization grant Agreement, the requirements in OMB Circulars A-87,
``Cost Principles Applicable to Grants, Contracts and Other Agreements
with State and Local Governments''; A-133, ``Audits of States, Local
Governments, and Non-Profit Organizations;'' the regulations 24 CFR
part 85, ``Administrative Requirements for Grants and Cooperative
Agreements to State, Local, and Federally Recognized Indian Tribal
Government'' and generally accepted accounting principles (GAAP).
k. Resident and Community Involvement
(1) General. You are required to involve the affected public
housing residents, state and local governments, private service
providers, financing agencies, and developers in the planning process,
proposed implementation, and management of your revitalization plan.
This involvement must be continuous from the beginning of the planning
process through the implementation and management of the grant, if
awarded.
(2) Resident Training Session. You must conduct at least one
training session for residents of the severely distressed project on
the HOPE VI development process. HUD does not prescribe the content of
this meeting.
(3) Public Meetings.
(a) You must conduct at least three public meetings with residents
and the broader community, in order to involve them in a meaningful way
in the process of developing the revitalization plan and preparing the
application. One of these meetings must have taken place at the
beginning of the planning process.
(b) These three public meetings must take place on different days
from each other and from the resident training session.
(c) During these three meetings, you must address the issues listed
below (i.e., all issues need not be addressed at each meeting):
(i) The HOPE VI planning and implementation process;
(ii) The proposed physical plan, including site and unit design,
and whether the unit design is in compliance with Fair Housing Act and
Uniform Federal Accessibility Standards (UFAS) standards;
(iii) The extent of proposed demolition;
(iv) Planned community and supportive service activities;
(v) Other proposed revitalization activities;
(vi) Relocation issues, including relocation planning, mobility
counseling, and maintaining the HOPE VI community planning process
during the demolition and reconstruction phases, where temporary
relocation, i.e., relocation for a reasonable period (less than one
year), is involved;
(vii) Reoccupancy plans and policies, including site-based waiting
lists; and
(viii) Economic Opportunities for Low- and Very Low-Income Persons,
including efforts to direct all employment, training, and contracting
opportunities created as a result of project activities to low- and
very low-income persons and the business concerns that employ these
persons.
(4) Accessibility. All training sessions and meetings must be held
in facilities that are accessible to persons with disabilities; provide
services such as day care, transportation, and sign language
interpreters, as needed; and, as practical and applicable, be conducted
in English and the language(s) most appropriate for the community.
(5) Allowable Time Period for Training and Meetings.
(a) At least one public meeting, which included representation from
both the affected public housing residents and the community, must have
been held at the beginning of the revitalization planning period;
(b) At least one training session must have been held after the
publication date of this NOFA in the Federal Register; and
(c) A minimum of two more public meetings must have been held after
the publication date of this NOFA in the Federal Register.
(d) The above minimum number of training sessions and meetings is
required to meet the Resident Involvement threshold in section III.C.2.
of this NOFA. Additional meetings and training sessions will be counted
in the rating factors toward demonstration of continual inclusion of
the residents and community.
l. CSS Program Requirements
(1) Term Period. CSS programs and services must last for the life
of the grant and must be carefully planned so that they will be
sustainable after the HOPE VI grant period ends.
(2) Allowed Funding Mechanisms.
(a) Maximum CSS grant amount. Consistent with sections 24(d)(1)(L)
and 24(j)(3) of the 1937 Act, you may use up to 15 percent of the total
HOPE VI grant to pay the costs of CSS activities. See section III.B.1.
of this NOFA for CSS grant matching requirements. You may spend
additional sums on CSS activities using donations; other HUD funds made
available for that purpose; and other federal, state, local, PHA, or
private-sector donations (leverage).
(b) CSS Endowment Trust. Consistent with section 24(d)(2) of the
1937 Act, you may deposit up to 15 percent of your HOPE VI grant (the
maximum amount of the award allowable for CSS activities) into an
endowment trust to provide CSS activities. In order to establish an
endowment trust, you must first execute with HUD a HOPE VI Endowment
Trust Addendum to the grant agreement. When reviewing your request to
set up an endowment trust, HUD will take into consideration your
ability to pay for current CSS activities with HOPE VI or other funds
and the projected long-term sustainability of the endowment trust to
carry out those activities.
(3) CSS Team and Partners.
(a) The term ``CSS Team'' refers to PHA staff members and any
consultants who will have the responsibility to design, implement, and
manage your CSS program.
(b) The term ``CSS Partners'' refers to the agencies and
organizations that you will work with to provide supportive services
for residents. A partner could be a local service organization such as
a Boys or Girls Club that donates its building and staff to the
program, or an agency such as the local Temporary Assistance for Needy
Families (TANF) agency that works with you to ensure
[[Page 16150]]
that their services are coordinated and comprehensive.
(c) Partner Agreements. There are several relationships that you
may have with your partners including subgrant agreements, contracts,
memoranda of understanding (MOUs), memoranda of agreement (MOAs), and/
or informal relationships.
(4) Tracking and Case Management. If selected, the grantee is
responsible for tracking and providing CSS programs and services to
residents currently living on the targeted public housing site and
residents already relocated from the site. It is imperative that case
management services begin immediately upon award so that residents who
will be relocated have time to participate in and benefit from CSS
activities before leaving the site, and that residents who have already
been relocated are able to participate in and benefit from CSS
activities.
(5) CSS Strategy and Objectives Requirements.
(a) Transition to Housing SelfSufficiency. One of HUD's major
priorities is to assist public housing residents in their efforts to
become financially self-sufficient and less dependent on direct
government housing assistance. Your CSS program must include a well-
defined, measurable endeavor that will enable public housing residents
to transition to other affordable housing programs and to regular
market housing. Family Self-Sufficiency (FSS) and CSS activities that
are designed to increase education and income levels are considered a
part of this endeavor, as is the establishment of reasonable limits on
the length of time any household that is not headed by an elderly or
disabled person can reside in a public housing unit within a HOPE VI
Revitalization Development.
(b) Neighborhood Networks. All FY2008 Revitalization grantees will
be required to establish Neighborhood Networks Centers (NNC) and to
promote the inclusion of infrastructure that permits unit-based access
to broadband Internet connectivity in all new and replacement public
housing units. This program provides residents with on-site access to
computer and training resources that create knowledge and experience
with computers and the Internet as tools to increase access to CSS, job
training, and the job market. Grantees may use HOPE VI funds to
establish NNCs and to provide unit-based Internet connectivity. More
information on the requirements of the NNC program is available on the
Neighborhood Networks Web site at http://www.hud.gov/nnw/nnwindex.html.
There will not be a separate FY2008-funded NOFA for HOPE VI
Neighborhood Networks programs.
(c) Quantifiable Goals. The objectives of your CSS program must be
results-oriented, with quantifiable goals and outcomes that can be used
to measure progress and make changes in activities as necessary.
(d) Appropriate Scale and Type.
(i) CSS activities must be of an appropriate scale, type, and
variety to meet the needs of all residents (including adults, seniors,
youth ages 16 to 21, and children) of the severely distressed project,
including residents remaining on-site, residents who will relocate
permanently to other PHA units or HCV-assisted housing, residents who
will relocate temporarily during the construction phase, and new
residents of the revitalized units.
(ii) Non-public housing residents may also participate in CSS
activities, as long as the primary participants in the activities are
residents as described in section (i) above.
(e) Coordination.
(i) CSS activities must be consistent with state and local welfare
reform requirements and goals.
(ii) Your CSS activities must be coordinated with the efforts of
other service providers in your locality, including nonprofit
organizations, educational institutions, and state and local programs.
(iii) CSS activities must be well-integrated with the physical
development process, both in terms of timing and the provision of
facilities to house on-site service and educational activities.
(f) Your CSS program must provide appropriate community and
supportive services to residents prior to any relocation.
m. CSS Partnerships and Resources
The following are examples of the kinds of organizations and
agencies (local, state, and federal) that can provide you with
resources necessary to carry out and sustain your CSS activities.
(1) Local boards of education, public libraries, local community
colleges, institutions of higher learning, nonprofit or for-profit
educational institutions, and public/private mentoring programs that
will lead to new or improved educational facilities and improved
educational achievement of young people in the revitalized development,
from birth through higher education.
(2) Temporary Assistance for Needy Families (TANF) agencies/welfare
departments for TANF and non-TANF in-kind services, and non-TANF cash
donations, e.g., donation of TANF agency staff time.
(3) Job development organizations that link private sector or
nonprofit employers with low-income prospective employees.
(4) Workforce development agencies.
(5) Organizations that provide residents with job readiness and
retention training and support.
(6) Economic development agencies such as the Small Business
Administration, which provide entrepreneurial training and small
business development centers.
(7) National corporations, local businesses, and other large
institutions such as hospitals that can commit to provide entry-level
jobs. Employers may agree to train residents or commit to hire
residents after they complete jobs preparedness or training programs
that are provided by you, other partners, or the employer itself.
(8) Programs that integrate employment training, education, and
counseling, and where creative partnerships with local boards of
education, state charter schools, TANF agencies, foundations, and
private funding sources have been or could be established.
(9) Sources of capital such as foundations, banks, credit unions,
and charitable, fraternal, and business organizations.
(10) Nonprofit organizations.
(11) Civil rights and fair housing organizations.
(12) Local area agencies on aging.
(13) Local agencies and organizations serving persons with
disabilities.
(14) Grassroots faith-based and other community-based
organizations. HUD encourages you to partner or subgrant with nonprofit
organizations, including grassroots faith-based and other community-
based organizations, to provide CSS activities. See HUD's Center for
Faith-Based and Community Initiatives Web site at http://www.hud.gov/
offices/fbci/index.cfm.
(15) Federal agencies and their community and supportive service-
related programs, including youth-related programs. For example, many
federal agencies have youth-related programs such as the Department of
Justice's Weed and Seed program; the Department of Agriculture's 4-H
program; the Department of Labor's Youthbuild program; and programs
within the Department of Health and Human Services.
n. Fair Housing and Equal Opportunity Requirements
(1) Site and Neighborhood Standards for Replacement Housing. You
must
[[Page 16151]]
comply with the Fair Housing Act and Title VI of the Civil Rights Act
of 1964, and implementing regulations thereunder (including 24 CFR
1.4(b)(3) and 24 CFR 941.202). In determining the location of any
replacement housing, you must comply with either the site and
neighborhood standards regulations at 24 CFR 941.202 (b)-(d) or with
the standards outlined in this NOFA. Because the objective of the HOPE
VI program is to alleviate distressed conditions at the development and
in the surrounding neighborhood, replacement housing under HOPE VI that
is located on the site of the existing development or in its
surrounding neighborhood will not require independent approval by HUD
under Site and Neighborhood Standards. The term ``surrounding
neighborhood'' means the neighborhood within a 3-mile radius of the
site of the existing development.
(a) HOPE VI Goals Related to Site and Neighborhood Standards. You
are expected to ensure that your revitalization plan will expand
assisted housing opportunities outside low-income areas and areas of
minority concentration and will accomplish substantial revitalization
in the project and its surrounding neighborhood. You are also expected
to ensure that eligible households of all races and ethnic groups will
have equal and meaningful access to the housing.
(b) Objectives in Selecting HUD-Assisted Sites. The fundamental
goal of HUD's fair housing policy is to make full and free housing
choice a reality. Housing choice requires that all households may
choose the type of neighborhood where they wish to reside; that
minority neighborhoods are no longer deprived of essential public and
private resources; and that stable, racially mixed neighborhoods are
available as a meaningful choice for all. To make full and free housing
choice a reality, sites for HUD-assisted housing investment should be
selected so as to advance two complementary goals:
(i) Expand assisted housing opportunities in non-minority
neighborhoods, opening up choices throughout the metropolitan area for
all assisted households; and
(ii) Reinvest in minority neighborhoods, improving the quality and
affordability of housing there to represent a real choice for assisted
households.
(c) Nondiscrimination and Equal Opportunity Requirements. In
determining the location of any replacement housing, you must comply
with the Fair Housing Act, Title VI of the Civil Rights Act of 1964,
section 504 of the Rehabilitation Act of 1973, and implementing
regulations.
(d) Grantee Election of Requirements. You may, at your election,
separately with regard to each site you propose, comply with the
development regulations regarding Site and Neighborhood Standards (24
CFR 941.202 (b)-(d)), or with the Site and Neighborhood Standards
contained in this section.
(e) Replacement housing located on-site or in the surrounding
neighborhood. Replacement housing under HOPE VI that is located on the
site of the existing project or in its surrounding neighborhood will
not require independent approval under Site and Neighborhood Standards,
since HUD will consider the scope and impact of the proposed
revitalization to alleviate severely distressed conditions at the
public housing project and its surrounding neighborhood, in assessing
the application to be funded under this NOFA.
(f) Off-Site Replacement Housing Located Outside the Surrounding
Neighborhood. Unless you demonstrate that there are already significant
opportunities in the metropolitan area for assisted households to
choose non-minority neighborhoods (or that these opportunities are
under development), HOPE VI replacement housing not covered by section
(e) above may not be located in an area of minority concentration (as
defined in paragraph (g) below) without the prior approval of HUD. Such
approval may be granted if you demonstrate to the satisfaction of HUD
that:
(i) You have made determined and good faith efforts, and found it
impossible with the resources available, to acquire an appropriate
site(s) in an area not of minority concentration; or
(ii) The replacement housing, taking into consideration both the
CSS activities or other revitalizing activities included in the
revitalization plan, and any other revitalization activities in
operation or firmly planned, will contribute to the stabilization or
improvement of the neighborhood in which it is located, by addressing
any serious deficiencies in services, safety, economic opportunity,
educational opportunity, and housing stock.
(g) Area of Minority Concentration. The term ``area of minority
concentration'' is any neighborhood in which:
(i) The neighborhood's percentage of persons in a particular racial
or ethnic minority is at least 20 percentage points higher than the
percentage of that particular racial or ethnic group in the housing
market area; i.e., the Metropolitan Statistical Area (MSA) in which the
proposed housing is to be located;
(ii) The neighborhood's total percentage of minority persons is at
least 20 percentage points higher than the total percentage of all
minorities for the MSA as a whole; or
(iii) In the case of a metropolitan area, the neighborhood's total
percentage of minority persons exceeds 50 percent of its population.
(2) Housing and Services for Persons with Disabilities.
(a) Accessibility Requirements. HOPE VI developments are subject to
the accessibility requirements contained in several federal laws. All
applicable laws must be read together and followed. PIH Notice 2006-13,
available at http://www.hud.gov/offices/adm/hudclips/notices/pih/06-
13PIH.doc, and subsequent updates or successor notices, provide an
overview of all pertinent laws and implementing regulations pertaining
to HOPE VI. All HOPE VI multifamily housing projects, whether they
involve new construction or rehabilitation, are subject to the section
504 accessibility requirements described in 24 CFR part 8. See, in
particular, 24 CFR 8.20-8.24. In addition, under the Fair Housing Act,
all new construction of covered multifamily buildings must contain
certain features of accessible and adaptable design. Units covered are
all those in elevator buildings with four or more units and all ground
floor units in buildings without elevators. The relevant accessibility
requirements are provided on HUD's Fair Housing and Equal Opportunity
(FHEO) Web site at http://www.hud.gov/groups/fairhousing.cfm.
(b) Fair housing and other civil rights authorities include:
(i) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 24
CFR part 100.
(ii) The prohibitions against discrimination on the basis of
disability, including requirements that multifamily housing projects
comply with the Uniform Federal Accessibility Standards, and that you
make reasonable accommodations to individuals with disabilities under
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
regulations at 24 CFR part 8.
(iii) Title II of the Americans with Disabilities Act (42 U.S.C.
12101 et seq.) and its implementing regulations at 28 CFR part 35.
(iv) The Architectural Barriers Act of 1968 (42 U.S.C. 4151) and
the regulations at 24 CFR part 40.
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(c) Accessible Technology. The Rehabilitation Act Amendments of
1998 apply to all electronic information technology (EIT) used by a
grantee for transmitting, receiving, using, or storing information to
carry out the responsibilities of any federal grant awarded. It
includes, but is not limited to, computers (hardware, software, word
processing, email, and Web pages), facsimile machines, copiers, and
telephones. When developing, procuring, maintaining, or using EIT,
grantees must ensure that the EIT allows:
(i) Employees with disabilities to have access to and use
information and data that are comparable to the access and use of data
by employees who do not have disabilities; and
(ii) Members of the public with disabilities seeking information or
service from a grantee must have access to and use of information and
data that are comparable to the access and use of data by members of
the public who do not have disabilities. If these standards impose an
undue burden on a grantee, they may provide an alternative means to
allow the individual to use the information and data. No grantee will
be required to provide information services to a person with
disabilities at any location other than the location at which the
information services are generally provided.
o. Relocation Requirements
(1) Requirements.
(a) You must carry out relocation activities in compliance with a
relocation plan that conforms to the following statutory and regulatory
requirements, as applicable:
(i) Relocation or temporary relocation carried out as a result of
rehabilitation under an approved revitalization plan is subject to the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA), the URA regulations at 49 CFR part 24, and
regulations at 24 CFR 968.108 or successor part.
(ii) Relocation carried out as a result of acquisition under an
approved revitalization plan is subject to the URA and regulations at
24 CFR 941.207 or successor part.
(iii) Relocation carried out as a result of disposition under an
approved revitalization plan is subject to section 18 of the 1937 Act,
as amended.
(iv) Relocation carried out as a result of demolition under an
approved revitalization plan is subject to the URA regulations at 49
CFR part 24.
(b) You must provide suitable, accessible, decent, safe, and
sanitary housing for each family required to relocate as a result of
revitalization activities under your revitalization plan. Any person
(including individuals, partnerships, corporations, or associations)
who moves from real property or moves personal property from real
property directly (1) because of a written notice to acquire real
property in whole or in part, or (2) because of the acquisition of the
real property, in whole or in part, for a HUD-assisted activity, is
covered by federal relocation statute and regulations. Specifically,
this type of move is covered by the acquisition policies and procedures
and the relocation requirements of the URA, and the implementing
government-wide regulation at 49 CFR part 24 and Handbook 1378. These
relocation requirements cover any person who moves permanently from
real property or moves personal property from real property directly
because of acquisition, rehabilitation, or demolition for an activity
undertaken with HUD assistance.
(2) Relocation Plan. Each applicant must complete a HOPE VI
Relocation plan, in accordance with the requirements stated in section
III.C.2. of this NOFA.
(a) The HOPE VI Relocation plan is intended to ensure that PHAs
adhere to the URA and that all residents who have been or will be
temporarily or permanently relocated from the site are provided with
CSS activities such as mobility counseling and direct assistance in
locating housing. Your HOPE VI Relocation plan must serve to minimize
permanent displacement of current residents of the public housing site
who wish to remain in or return to the revitalized community. Your HOPE
VI Relocation plan must also furnish alternative permanent housing for
current residents of the public housing site who do not wish to remain
in or return to the revitalized community. Your CSS program must
provide for the delivery of community and supportive services to
residents prior to any relocation, temporary or permanent.
(b) You are encouraged to involve HUD-approved housing counseling
agencies, including faith-based, nonprofit, and other organizations,
and individuals in the community to which relocatees choose to move, in
order to ease the transition and minimize the impact on the
neighborhood. HUD will view favorably innovative programs such as
community mentors, support groups, and the like.
(c) If applicable, you are encouraged to work with surrounding
jurisdictions to assure a smooth transition if residents choose to move
from your jurisdiction to the surrounding area.
p. Design
HUD is seeking excellence in design. You must carefully select your
architects and planners, and enlist local affiliates of national
architectural and planning organizations such as the American Institute
of Architects, the American Society of Landscape Architects, the
American Planning Association, the Congress for the New Urbanism, and
the department of architecture at a local college or university to
assist you in assessing qualifications of design professionals or in
participating on a selection panel that results in the procurement of
excellent design services. You should select a design team that is
committed to a process in which residents, including young people and
seniors, the broader community, and other stakeholders participate in
designing the new community.
Your proposed site plan, new units, and other buildings must be
designed to be compatible with and enrich the surrounding neighborhood.
Local architecture and design elements and amenities should be
incorporated into the new or rehabilitated homes so that the
revitalized sites and structures will blend into the broader community
and appeal to the market segments for which they are intended. Housing,
community facilities, and economic development space must be well
integrated. You must select members of your team who have the ability
to meet these requirements.
q. Internet Access
You must have access to the Internet and provide HUD with e-mail
addresses of key staff and contact people.
r. Non-Public Housing Funding for Non-Public Housing or Replacement
Units
Public housing funds may only be used to develop Replacement
Housing. You may not use public housing funds, which include HOPE VI
funds, to develop retail or commercial space, economic development
space, or housing units that are not Replacement Housing, as defined in
this NOFA.
s. Market-Rate Housing and Economic Development
If you include market-rate housing, economic development, or retail
structures in your revitalization plan, such proposals must be
supported by a market assessment from an independent third party,
credentialed market research firm, or professional. This assessment
should describe its assessment of the demand and
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associated pricing structure for the proposed residential units,
economic development or retail structures, based on the market and
economic conditions of the project area.
t. Eminent Domain and Public Use
Section 411 of the FY 2008 Consolidated Appropriations Act, under
which this NOFA is funded, prohibits any use of these funds ``to
support any Federal, State, or local projects that seek to use the
power of eminent domain, unless eminent domain is used only for a
public use.'' The term ``public use'' is expressly stated not ``to
include economic development that primarily benefits private
entities.'' Accordingly, applications under this NOFA may not propose
mixed-use projects in which housing is complemented appreciably with
commercial facilities (i.e., economic development), if eminent domain
is used for the site.
u. Cost Control Standards.
(1) Your hard development costs must be realistically developed
through the use of technically competent methodologies, including cost
estimating services, and should be comparable to industry standards for
the kind of construction to be performed in the proposed geographic
area.
(2) Your cost estimates must represent an economically viable
preliminary plan for designing, planning, and carrying out your
proposed activities, in accordance with local costs of labor,
materials, and services.
(3) Your projected soft costs must be reasonable and comparable to
industry standards. Upon award, soft costs will be subject to HUD's
``Safe Harbor'' cost control standards. For rental units, these safe
harbors provide specific limitations on such costs as developer's fees
(between 9 and 12 percent), PHA administration/consultant cost (no more
than 3 to 6 percent of the total project budget), contractor's fee (6
percent), overhead (2 percent), and general conditions (6 percent).
HUD's Cost Control and Safe Harbor Standards can be found on HUD's HOPE
VI Web site.
(4) If you are eligible for funding, HUD will delete any
unallowable items from your budget and may reduce your grant
accordingly.
v. Timeliness of Development Activity
Grantees must proceed in a timely manner, as indicated by the
timeframes below. Grantees should also refer to section IV.E, Funding
Restrictions, for the required expenditure date for FY 2008 HOPE VI
grant funds, which is September 30, 2013. The timeframes must be
reflected in the form of a program schedule, in accordance with the
criteria below. The program schedule and timeframes apply to
applicant's overall revitalization plan, including activities not
funded by HOPE VI grant dollars. For purposes of the application,
applicants may (but are not required to) assume a grant award date of
September 30, 2008, a grant agreement execution date of October 31,
2008, a date for HUD's written request for supplemental submissions of
November 30, 2008, and a date for HUD's approval of supplemental
submissions of January 31, 2009.
(1) Grantees must submit Supplemental Submissions within 90
calendar days (weekends and holidays are not excluded) from the date of
HUD's written request.
(2) Grantees must submit CSS work plans within 90 calendar days
(weekends and holidays are not excluded) from grant agreement
execution.
(3) Grantees must submit the development proposal (i.e., whether
mixed-finance development, homeownership development, etc.) for the
first phase of construction within 12 months of grant agreement
execution (not the date of grant award). The program schedule must
indicate the date on which the development proposal for each phase of
the revitalization plan will be submitted to HUD.
(4) The closing of the first phase must take place within 15 months
of grant award. For this purpose, ``closing'' means all financial and
legal arrangements have been executed and actual activities
(construction, etc.) are ready to commence.
(5) Grantees must start construction within 12 months from the date
of HUD's approval of the Supplemental Submissions, as requested by HUD.
This time period may not exceed 18 months from the date the grant
agreement is executed.
(6) Grantees must complete construction within 48 months from the
date of HUD's approval of your Supplemental Submissions. This time
period for completion may not exceed 54 months from the date the grant
agreement is executed.
(7) If awarded grant funds, all other required components of the
revitalization plan and any other submissions not mentioned above must
be submitted in accordance with the Quarterly Report Administrative and
Compliance Checkpoints Report, as approved by HUD.
w. HOPE VI Endowment Trust Addendum to the Grant Agreement
This document must be executed between the grantee and HUD in order
for the grantee to use CSS funds in accordance with this NOFA.
x. Revitalization Plan
After HUD conducts a post-award review of your application and
makes a visit to the site, you will be required to submit components of
your revitalization plan to HUD, as provided in the HOPE VI
Revitalization Grant Agreement. These components include, but are not
limited to:
(a) Supplemental Submissions, including a HOPE VI Program Budget;
(b) A Community and Supportive Services work plan, in accordance
with guidance provided by HUD;
(c) A standard or mixed-finance development proposal, as
applicable;
(d) A demolition and disposition application, as applicable; and
(e) A homeownership proposal, as applicable.
y. Pre-Award Accounting System Surveys
This requirement is hereby incorporated from Section III.C. of the
General Section.
z. Name Check Review
This requirement is hereby incorporated from Section III.C. of the
General Section.
aa. False Statements
A false statement in an application is grounds for denial or
termination of an award and possible punishment as provided in 18
U.S.C. 1001.
bb. Prohibition Against Lobbying Activities
This requirement is hereby incorporated from Section III.C. of the
General Section.
cc. Conducting Business in Accordance With Core Values and Ethical
Standards
This requirement is hereby incorporated from Section III.C. of the
General Section.
dd. Providing Full and Equal Access to Grassroots Faith-Based and Other
Community-Based Organizations in HUD Program Implementation
This requirement is hereby incorporated from Section III.C. of the
General Section.
ee. Number of Units
The number of units that you plan to develop should reflect your
need for replacement units, the need for other
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affordable units, and the market demand for market units, along with
financial feasibility. The number of planned new construction public
housing units may not result in a net increase from the number of
public housing units owned, assisted, or operated by the PHA on October
1, 1999, including any public housing units demolished as part of any
revitalization effort. The total number of units to be developed may be
less than, or more than, the original number of public housing units in
the targeted public housing project. HUD will review requests to
revitalize projects with small numbers of units on an equal basis with
those with large numbers of units.
ff. Environmental Requirements
(1) HUD Approval. HUD notification that you have been selected to
receive a HOPE VI grant constitutes only preliminary approval. Grant
funds may not be released under this NOFA (except for activities that
are excluded from environmental review under 24 CFR part 58 or part 50)
until the responsible entity, as defined in 24 CFR 58.2(a)(7),
completes an environmental review and you submit and obtain both HUD
approval of a request for release of funds and the responsible entity's
environmental certification, in accordance with 24 CFR part 58 (or HUD
has completed an environmental review under 24 CFR part 50, where HUD
has determined to conduct the environmental review).
(2) Responsibility. If you are selected for funding and an
environmental review has not been conducted on the targeted site, the
responsible entity must assume the environmental review
responsibilities for projects being funded by HOPE VI. If you object to
the responsible entity conducting the environmental review, on the
basis of performance, timing, or compatibility of objectives, HUD will
review the facts and determine who will perform the environmental
review. At any time, HUD may reject the use of a responsible entity to
conduct the environmental review in a particular case on the basis of
performance, timing, or compatibility of objectives, or in accordance
with 24 CFR 58.77(d)(1). If a responsible entity objects to performing
an environmental review, or if HUD determines that the responsible
entity should not perform the environmental review, HUD may designate
another responsible entity to conduct the review or may itself conduct
the environmental review in accordance with the provisions of 24 CFR
part 50. You must provide any documentation to the responsible entity
(or HUD, where applicable) that is needed to perform the environmental
review.
(3) 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, for each affected site. A Phase I assessment is required
whether the environmental review is completed under 24 CFR part 50 or
24 CFR part 58. The results of the Phase I assessment must be included
in the documents that must be provided to the responsible entity (or
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.
(4) Request for Release of Funds. You, and any participant in the
development process, may not undertake any actions with respect to the
project that are choice-limiting or could have environmentally adverse
effects, including demolishing, acquiring, rehabilitating, converting,
leasing, repairing, or constructing property proposed to be assisted
under this NOFA, and you, and any participant in the development
process, may not commit or expend HUD or local funds for these
activities, until HUD has approved a Request for Release of Funds
following a responsible entity's environmental review under 24 CFR part
58, or until HUD has completed an environmental review and given
approval for the action under 24 CFR part 50. In addition, you must
carry out any mitigating/remedial measures required by the responsible
entity (or 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.
(5) If the environmental review is completed before HUD approval of
the HOPE VI Supplemental Submissions and you have submitted your
Request for Release of Funds (RROF), the supplemental submissions
approval letter shall state any conditions, modifications,
prohibitions, etc., required as a result of the environmental review,
including the need for any further environmental review. You must carry
out any mitigating/remedial measures required by HUD, or select an
alternate eligible property, if permitted by HUD. If HUD does not
approve the remediation plan 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) If the environmental review is not completed and you have not
submitted the RROF before HUD approval of the supplemental submissions,
the letter approving the supplemental submissions will instruct you and
any participant in the revitalization process to refrain from
undertaking, obligating, or expending HUD or non-HUD funds on physical
activities or other choice-limiting actions until HUD approves your
RROF and the related certification of the responsible entity (or HUD
has completed the environmental review). The supplemental submissions
approval letter also will advise you that the approved supplemental
submissions may be modified on the basis of the results of the
environmental review.
(7) There must not be any open issues or uncertainties related to
environmental issues, public policy factors (such as sewer
moratoriums), proper zoning, availability of all necessary utilities,
or clouds on title that would preclude development in the requested
locality. You will certify to these facts when signing the HOPE VI
Revitalization Grant Application Certifications.
(8) HUD's environmental Web site is located at http://www.hud.gov/
offices/cpd/environment/index.cfm.
gg. Match Donations and Leverage Resources--Post Award
After award, during review of grantee mixed-finance, development,
or homeownership proposals, HUD will evaluate the nature of Match and
Leverage resources to assess the conditions precedent to the
availability of the funds to the grantee. HUD will assess the
availability of the participating party(ies)'s financing, the amount
and source of financing committed to the proposal by the participating
party(ies), and the firm commitment of those funds. HUD may require an
opinion of the PHA's and the owner entity's counsel (or other party
designated by HUD) attesting that counsel has examined the availability
of the participating party's financing, and the amount and source of
financing committed to the proposal by the participating party(ies),
and has determined that such financing has been firmly committed by the
participating party(ies) for use in carrying out the proposal, and that
such commitment is in the amount required under the terms of the
proposal.
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hh. Evidence of Use
Grantees will be required to show evidence that matching resources
were actually received and used for their intended purposes through
quarterly reports as the project proceeds. Sources of matching funds
may be substituted after grant award, as long as the dollar requirement
is met.
ii. Grantee Enforcement
Grantees must pursue and enforce any commitment (including
commitments for services) obtained from any public or private entity
for any contribution or commitment to the project or surrounding area
that was part of the match amount.
jj. LOCCS Requirements
The grantee must record all obligations and expenditures in LOCCS.
kk. Final Audit
Grantees are required to obtain a complete final closeout audit of
the grant's financial statements by a certified public accountant, in
accordance with generally accepted government audit standards. A
written report of the audit must be forwarded to HUD within 60 days of
issuance. Grant recipients must comply with the requirements of 24 CFR
part 84 or 24 CFR part 85, as stated in OMB Circulars A-110, A-87, and
A-122, as applicable.
ll. Section 3
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 part 135.
Information about section 3 can be found at HUD's section 3 Web site at
http://www.hud.gov/offices/fheo/section3/section3.cfm.
mm. General Section References
The following subsections of section III.C.4 of the General Section
are hereby incorporated by reference:
(1) Civil Rights Laws;
(2) Affirmatively Furthering Fair Housing;
(3) Economic Opportunities for Low- and Very Low-Income Persons
(section 3);
(4) Executive Order 13166, Improving Access to Services for Persons
With Limited English Proficiency (LEP);
(5) Accessible Technology;
(6) Procurement of Recovered Materials;
(7) Participation in HUD-Sponsored Program Evaluation;
(8) Executive Order 13202, Preservation of Open Competition and
Government Neutrality Towards Government Contractors' Labor Relations
on Federal and Federally Funded Construction Projects;
(9) OMB Circulars and Government-wide Regulations Applicable to
Financial Assistance Programs; and
(10) Drug-Free Workplace.
nn. Program Requirements that Apply to Match
See Section III.B.1.
oo. Program Requirements That Apply to Match and Leverage
Applicants must follow these requirements in compiling and
documenting their match and leverage resources for purposes of the
NOFA.
(1) You must actively enlist other stakeholders who are vested in
and can provide significant financial assistance to your revitalization
effort, both for match and leverage, and for physical development and
CSS.
(2) Types of Resources. HUD seeks to fund mixed-finance
developments that use HOPE VI funds to match funds requested and
leverage the maximum amount of other funds, particularly from private
sources, that will result in revitalized public housing, other types of
assisted and market-rate housing, and private retail and economic
development. There are four types of resources: Development, CSS,
Anticipatory, and Collateral. Development and CSS match and leverage
are program requirements. Anticipatory and Collateral leverage are
included only in the Leverage rating factor, but follow the
requirements below for purposes of scoring.
(3) General Requirements. These general requirements apply to all
match and leverage resource commitments.
(a) Firmly Committed. All resources for match and leverage must be
firmly committed. ``Firmly committed'' means that the amount of the
resource and its dedication to HOPE VI Revitalization activities must
be explicit, in writing, and signed by a person authorized to make the
commitment.
(b) Endorsements or general letters of support from organizations
or vendors alone will not count as resources and should not be included
in the application or on a Resources Summary Form.
(c) Commitment letters must detail the dollar amount and term of
the commitment (e.g., Agency X has committed to the residents of the
public housing development $100,000 for each of 5 years, for a total of
$500,000).
(d) Signature. Resource commitments must be written and be signed a
person authorized to make the commitment.
(e) Dating. Match and leverage commitment letters must represent
valid and accurate commitments. By including them in the application,
the applicant is certifying that they are valid and accurate. Resource
commitments from 5 years before the NOFA publication date will not be
accepted.
(f) If the commitment document for any match or leverage funds/in-
kind services is not included in the application and provided before
the NOFA deadline date, the related match or leverage will not be
considered.
(g) Depending upon the specific Memorandum of Understanding (MOU),
an MOU alone may not firmly commit funds, e.g., when an MOU states that
a donation agreement may be discussed in the future. If an MOU does not
firmly commit funds, the MOU should be accompanied by commitment
letters or contracts.
(h) The PHA's staff time and benefits are not an eligible match or
leverage resource.
(i) Resource commitments may only be counted once.
(4) Development Resources.
(a) Types of Development Resources. Types of Development Resources
may include but are not limited to:
(i) Private mortgage-secured loans, insured loans and other debt.
(a) Where there is both a construction loan and a permanent take-
out loan that will replace that construction loan, you must provide
documentation of both, but only the value of the permanent loan will be
counted.
(b) If you have obtained a construction loan but not a permanent
loan, the value of the acceptably documented construction loan will be
counted.
(c) Your application or commitment letters must include each loan's
interest rate, expected term maturity, and the frequency of repayment.
(d) For privately financed homeownership, acceptable documentation
of construction loans only will be considered. Permanent financing will
not be counted as a development resource.
(ii) Donations and contributions.
(iii) Housing trust funds.
(iv) Program income from previous HOPE VI or other public housing
projects.
(v) Homeownership down payments from homebuyers will not be
counted. Down payment assistance may be counted as a physical
development resource if it is provided by a third-party entity not
related to the homebuyer.
[[Page 16156]]
(vi) Funds committed to build private sector housing in direct
connection with the HOPE VI Revitalization plan.
(vii) Tax Increment Financing (TIF). A TIF will only be considered
for match/leverage scoring under this NOFA if, as documented in a
letter from the unit of local government responsible for approving the
TIF: The TIF district has been formally created; the unit of local
government responsible for approving the TIF has issued an approval (as
of the application deadline) allowing the TIF to benefit the HOPE VI
project; and the letter includes an estimate of the amount of resources
anticipated to be generated by the TIF in relation to the HOPE VI.
(viii) Bonds. This includes tax-exempt bonds and private activity
revenue bonds. Your application must include the dollar amount, a
description of the use and term. If you have documentation of funding
that will repay the bond, this will be counted instead of the bond.
(ix) Other Public Housing Funds. Other Public Housing sources may
be used in your proposal subject to the following criteria. Other
Public Housing Funds include HOPE VI Demolition funds, HOPE VI
Neighborhood Networks funds, HOPE VI Main Street funds, HOPE VI
Mentoring grants, Resident Opportunity and Self-Sufficiency (ROSS)
grants, Family Self-Sufficiency (FSS) grants, Capital Fund program
funds, and proposals to use operating subsidy for debt service. For
Match: Other Public Housing Funds may be counted for match except for
the HOPE VI program funds (HOPE VI Demolition, HOPE VI Neighborhood
Networks, HOPE VI Main Street, and HOPE VI Mentoring funds), which may
not be used for match. For Leverage: Other Public Housing Funds listed
above, including the HOPE VI program funds, will be considered under
the Anticipatory leverage rating factor, in accordance with the
criteria in the Anticipatory leverage rating factor; they will NOT be
counted for points under CSS, Development, and Collateral leverage.
(x) Other Federal Funds. Other federal sources may include non-
public housing funds provided by HUD.
(xi) Sale of Land. The value of land may be included as a
development resource only if this value is a sales proceed. Absent a
sales transaction, the value of land may not be counted.
(xii) Donations of Land. Donations of land may be counted as a
development resource, only if the donating entity owns the land to be
donated. Donating entities may include a city, county/parish, church,
community organization, etc. The application must include documentation
of this ownership, signed by the appropriate authorizing official.
(xiii) Low-Income Housing Tax Credits (LIHTC).
(a) Low-Income Tax Credits are authorized by section 42 of the IRS
Code, which allows investors to receive a credit against federal tax
owed in return for providing funds to developers to help build or
renovate housing that will be rented only to lower-income households,
for a minimum period of 15 years.
(b) There are two types of credits, both of which are available
over a 10-year period: A 9 percent credit on construction/rehab costs,
and a 4 percent credit on acquisition costs and all development costs
financed partially with below-market federal loans (e.g., tax-exempt
bonds). Tax credits are generally reserved annually through State
Housing Finance Agencies, a directory of which can be found at http://
www.ncsha.org/section.cfm/4/39/187.
(c) Only LIHTC commitments that have been secured as of the
application deadline date will be considered for match/leverage scoring
under this NOFA. LIHTC commitments that are not secured (i.e.,
documentation in the application does not demonstrate they have been
reserved by the state or local housing finance agency) will not be
counted for match/leverage scoring. Only tax credits that have been
reserved specifically for revitalization performed through this NOFA
will be counted.
(d) Endorsements or general letters of support from organizations
or vendors alone will not count as resources and should not be included
in the application or on a Resources Summary Form.
(e) If you propose to include LIHTC equity as a development
resource for any phase of development, your application must include a
LIHTC reservation letter from your state or local housing finance
agency in order to have the tax credit amounts counted in match/
leverage scoring. This letter must constitute a firm commitment and can
only be conditioned on the receipt of the HOPE VI grant. HUD
acknowledges that, depending on the housing finance agency,
documentation for 4 percent tax credits may be represented in the form
of a tax-exempt bond award letter. Accordingly, it will be accepted for
match/leverage scoring purposes under this NOFA if you demonstrate that
this is the only available evidence of 4 percent tax credits, and
assuming that this documentation clearly indicates that tax-exempt
bonds have been committed to the project.
(b) Sources of Development Resources. Sources of Development
Resources may include:
(i) Public, private, and nonprofit entities, including LIHTC
purchasers;
(ii) State and local housing finance agencies;
(iii) Local governments;
(iv) The city's housing and redevelopment agency or other
comparable agency. HUD will consider this to be a separate entity with
which you are partnering if your PHA is also a redevelopment agency or
otherwise has citywide responsibilities.
(v) Community Development Block Grant (CDBG) funds. More
information about the CDBG program can be found at http://www.hud.gov/
offices/cpd/index.cfm.
(vi) HOME Investment Partnership program. HOME funds may be used
for the development of units assisted with HOPE VI funds, but they may
not be used for housing assisted with public housing capital funds
under section 9(d) of the 1937 Act. Information about the HOME program
can be found at http://www.hud.gov/offices/cpd/affordablehousing/
programs/home/index.cfm.
(vii) Foundations;
(viii) Government Sponsored Enterprises such as the Federal Home
Loan Bank, Fannie Mae, and Freddie Mac;
(ix) HUD and other federal agencies;
(x) Financial institutions, banks, or insurers; and
(xi) Other private funders.
(5) Community and Supportive Services Resources
a. General
(1) HUD seeks to fund mixed-finance developments that use HOPE VI
funds to leverage the maximum amount of other resources to support CSS
activities in order to ensure the successful transformation of the
lives of residents and the sustainability of the revitalized public
housing development. Match and leveraging of HOPE VI CSS funds with
other funds and services is critical to the sustainability of CSS
activities so that they will continue after the HOPE VI funds have been
expended. Commitments of funding or in-kind services related to the
provision of CSS activities may be counted as CSS resources and toward
match and the calculation of CSS leverage, in accordance with the
requirements below.
(a) CSS leverage and match, include only funds/in-kind services
that will be NEWLY GENERATED for HOPE VI
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activities and residents. Commitments by service providers to continue
services they already provide will not be counted. However, if an
existing service provider significantly increases the level of services
provided at the targeted site, the increased amount of funds may be
counted, except for TANF cash benefits. HUD will not count any funds
for leverage points that have already been provided on a routine basis,
such as TANF cash benefits and in-kind services that have been
supporting ongoing CSS-type activities.
(b) Existing and newly generated TANF cash benefits will not count
as leverage. Newly generated non-cash services provided by TANF
agencies will count as leverage.
(c) Even though an in-kind CSS contribution may count as a
resource, it may not be appropriate to include on the sources and uses
attachment. Each source on the sources and uses attachment must be
matched by a specific and appropriate use. For example, donations of
staff time may not be used to offset costs for infrastructure.
(d) Note that wages projected to be paid to residents through jobs
or projected benefits (e.g., health/insurance/retirement benefits)
related to projected resources to be provided by CSS partners may not
be counted.
(e) Resources must be directly applicable to the revitalization of
the targeted public housing project and the transformation of the lives
of residents of the targeted public housing project. Resources that are
committed to individuals other than the residents of the targeted
public housing development cannot be counted.
(2) Types of Community and Supportive Services Resources. Types of
Community and Supportive Services resources may include, but are not
limited to:
(a) Materials;
(b) A building;
(c) A lease on a building;
(d) Other infrastructure;
(e) Time and services contributed by volunteers;
(f) Staff salaries and benefits of service providers (PHA staff
time may not be counted);
(g) Supplies;
(h) The value of supportive services provided by a partner agency,
in accordance with the eligible CSS activities described in section
III.C.1.
(i) Other Public Housing Funds. Other Public Housing sources may be
used in your proposal subject to the following criteria. Other Public
Housing Funds include HOPE VI Demolition funds, HOPE VI Neighborhood
Networks funds, HOPE VI Main Street funds, HOPE VI Mentoring grants,
Resident Opportunity and Self-Sufficiency (ROSS) grants, Family Self-
Sufficiency (FSS) grants, Capital Fund program funds, and proposals to
use operating subsidy for debt service. For Match: Other Public Housing
Funds may be counted for match except for the HOPE VI program funds
(HOPE VI Demolition, HOPE VI Neighbo