Browse: Departments   Dates   Agencies  

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Veterans Affairs Department

Docket ID: [Docket No. FR-5198-N-01]

NOTICE: Part III

DOCUMENT ACTION: Notice of HUD's Fiscal Year (FY) 2008 Notice of Funding Availability for HUD's HOPE VI Revitalization Grants Program.

SUBJECT CATEGORY: HUD's Fiscal Year (FY) 2008 NOFA for the HOPE VI Revitalization Grants Program

DOCUMENT 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.

SUMMARY: Housing and Urban Development Department,

SUPPLEMENTAL 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 fivestep registration process in order to submit their applications electronically. The General Section included in the instructions download materials on Grants.gov provides a step bystep 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 email 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 email 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 FR5198N01. The OMB approval number for this program is: 25770208.

E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA number for this NOFA is 14866, ``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 nontroubled 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
[[Page 16141]]
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 lowincome 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. 110161, 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. 110161, 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 drugrelated 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. 105276, 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 tenantbased 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 tenantbased 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
[[Page 16142]]
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 200710 (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/0710PIH.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, forprofit 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 VIrelated grants. You are required to have in place a match in the amount of 5 percent of the requested grant amount in cash or inkind 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 inkind 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 SelfSufficiency (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 inkind 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 nondwelling 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 offsite replacement housing, in accordance with 24 CFR 968.112(b), (d), (e), and (g)(o), and 24 CFR 968.130 and 968.135(b) [[Page 16143]]
and (d) or successor regulations, as applicable.
e. Development

Development of:
(1) Public housing replacement units; and
(2) Other units (e.g., marketrate units), provided a need exists for such units and such development is performed with nonpublic 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 offsite 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 offsite replacement housing);
(3) Land for economic developmentrelated activities, provided that such acquisition is performed with nonpublic 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 afterschool 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 resultsbased job training, preparation, counseling, development, placement, and follow up assistance after job placement.
(e) Programs that provide entrylevel, registered apprenticeships in construction, constructionrelated, 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 SelfSufficiency program can also be used to promote homeownership, providing assistance with escrow accounts and counseling.
(h) Coordinating with health care providers or providing onsite 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 residentowned 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.
[[Page 16144]]

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 HUD2880), 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 offsite housing and other proposed offsite 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 0208, ``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 0402, ``Revision to Notice CPD 0208, 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/042c.doc and http://www.hud.gov/offices/adm/ hudclips/notices/cpd/028c.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 projectspecific, 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 thencurrent year's capital fund allocation,
[[Page 16145]]
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. NonCurable 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 ScatteredSite 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 HUD96011) 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 reassociate 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 offsite location that is in an isolated, nonresidential, or otherwise inappropriate area;
(b) Proposing a range of incomes, housing types (rental, homeownership, marketrate, 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 ScatteredSite 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 scatteredsite 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 quartermile 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 quartermile 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 onemile 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 onemile 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 onemile 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.
[[Page 16146]]
(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 offsite (offsite 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 offsite property(ies) for the uses proposed in your revitalization plan. If you propose to develop offsite 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 offsite 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. 104134, 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 (nonmixed finance) public housing development activity (whether onsite reconstruction or offsite development), you must
[[Page 16147]]
obtain HUD approval of a standard development proposal submitted under 24 CFR part 941 (or successor part).
(2) For mixedfinance housing development, you must obtain HUD approval of a mixedfinance 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 offsite 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 mixedfinance 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 mixedfinance 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 (mixedfinance development).
(3) Land for OffSite 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 DevelopmentRelated Activities.
(a) Acquisition of land for this purpose is eligible only if the economic developmentrelated activities specifically promote the economic selfsufficiency 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 onsite and any offsite 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 selfsufficiency strategy must be wellintegrated 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, leadbased 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 highrises, ASHRAE Standard 90.12004, 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
[[Page 16148]]
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 wideranging 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 Starlabeled 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 moderateincome 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 Starcompliant. For further information about Energy Star, see http://www.energystar.gov or call 888STARYES (888782 7937), or, for the hearingimpaired, call 8885889920 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 subrating factor. (7) LeadBased Paint. You must comply with leadbased 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 leadbased paint evaluation and reduction activities. The National Lead Information Hotline is (800) 4245323.

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) DavisBacon 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 DavisBacon 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 DavisBacon wage requirements.
(2) HUDdetermined 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 selfsufficiency by including lease requirements that promote involvement in the resident
[[Page 16149]]
association, performance of community service, participation in self sufficiency activities, and transitioning from public housing; (d) Implementing sitebased waiting lists that follow projectbased management principles for the redeveloped public housing. Note that sitebased 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

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) 7080667 (this is not a tollfree number) or the NOFA Information Center at (800) HUD 8929 (tollfree). Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Information Relay Service at (800) 8778339. 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.