Billing Code 4210-67P

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

**\[Docket No. FR-5140-N-01\]**

**Supplement to the Fiscal Year (FY) 2007 SuperNOFA for HUD's
Discretionary Programs: NOFA for the HOPE VI Revitalization Grants
Program**

**AGENCY:** Office of the Secretary, HUD.

**ACTION:** Notice of HUD's Fiscal Year (FY) 2007 Notice of Funding
Availability for HUD's Discretionary Programs (SuperNOFA): HOPE VI
Revitalization Grants Program.

**SUMMARY:** On March 13, 2007, HUD published its FY2007 SuperNOFA for
HUD's Discretionary Programs, which contained 38 funding opportunities.
Today's publication supplements the SuperNOFA by adding funding
opportunities for the HOPE VI Revitalization program. Although this NOFA
was not included in the SuperNOFA announcement, this NOFA is governed by
the information and instructions found in the Notice of HUD's Fiscal
Year 2007 Notice of Funding Availability Policy Requirements and General
Section (General Section) to the SuperNOFA that HUD published on January
18, 2007, the Introduction to the SuperNOFA published on March 13, 2007;
and the Supplementary Information and Technical Corrections published on
May 11, 2007.

**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 January
18, 2007 or the Introduction of March 13, 2007, 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 10:00 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
\$94.52 million in assistance through the FY2007 HOPE VI Revitalization
Grants program. Today's publication is in addition to the \$2 billion
previously made available through the FY2007 SuperNOFA.

As is HUD's practice in publishing the SuperNOFA, 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 January 18, 2007, General
Section of the FY2007 SuperNOFA; the March 13, 2007, SuperNOFA; and the
May 11, 2007, Supplementary Information and Technical Corrections for
important application information and requirements, including submission
requirements, which have changed this year.

In FY2007, HUD intends to continue to require its applicants to submit
their applications electronically through
[http://www.grants.gov]{.underline}. 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 to the SuperNOFA,
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 to the SuperNOFA 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 website, 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 website. 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
program sections of the NOFA. Carefully following the directions
provided can make the difference in a successful application submission.

Dated: July 25, 2007.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Orlando J. Cabrera, Assistant Secretary for

> Public and Indian Housing

**\[FR-5140-N-01\]**

**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 2007.

**C. Announcement Type.** Initial announcement.

**D. Funding Opportunity Number.** The [Federal]{.underline}
[Register]{.underline} number for this NOFA is FR-5140-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]{.underline}: The application deadline date
is **November 7, 2007**. 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 to the SuperNOFA (FR-5100-N-01),
published in the [Federal]{.underline} [Register]{.underline} on January
18, 2007, and Supplemental Information and Technical Corrections
published on May 11, 2007, 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 \$94.52 million in FY 2007 funds for HOPE VI
Revitalization Program grants.

2\. **Proposed Rescission of Funds.** The public is hereby notified that
although this NOFA announces the availability of Fiscal Year (FY) 2007
HOPE VI Funds, the FY 2008 budget proposes the rescission of the FY 2007
HOPE VI Appropriation. Please note, therefore, that if Congress adopts
this portion of the President's budget, this NOFA may be cancelled at a
later date and awards made under this NOFA may not ultimately be funded.

3\. The maximum amount of each grant award is \$20 million. It is
anticipated that four or five grant awards will be made.

4\. 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.

5\. A match of at least 5 percent is required.

6\. Application materials may be obtained from
[http://www.grants.gov/applicants/apply_for_grants.jsp]{.underline}. Any
technical corrections will be published in the [Federal]{.underline}
[Register]{.underline} and posted to Grants.gov. Frequently asked
questions will be posted on HUD's website at
<http://www.hud.gov/offices/adm/grants/otherhud.cfm> and
[http://www.hud.gov/offices/pih/programs/ph/hope6]{.underline}/.

7\. General Section Reference. Section I, "Funding Opportunity
Description," of the General Section to the SuperNOFA for HUD's
Discretionary Programs (General Section), Docket No. FR-5100-N-01,
published in the [Federal]{.underline} [Register]{.underline} on January
18, 2007, the Introduction to the SuperNOFA published in the
[Federal]{.underline} [Register]{.underline} on March 13, 2007, and the
Supplementary Information and Technical Corrections published in the
[Federal]{.underline} [Register]{.underline} on May 11, 2007, are 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 Revised Continuing Appropriations
Resolution, 2007 (Pub. L. 110-5, approved February 15, 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 section 21045 of the Revised Continuing
Appropriations Resolution, 2007 (Pub. L. 110-5, approved February 15,
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 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.hudclips.org/>.

6\. **Universal Design.** 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]{.underline}, go to the publications and resource page of
the HOPE VI website at
<http://www.huduser.org/publications/pubasst/strategies.html>.

#### II. Award Information

**A. Availability of HOPE VI Funds**

1\. **Proposed Rescission of Funds**. The public is hereby notified that
although this NOFA announces the availability of FY 2007 HOPE VI Funds,
the FY 2008 budget proposes the rescission of the FY 2007 HOPE VI
Appropriation. Please note, therefore, that if Congress adopts this
portion of the President's budget, this NOFA may be cancelled at a later
date and awards made under this NOFA may not ultimately be funded.

2\. **Revitalization Grants.** Approximately \$94.52 million of the FY
2007 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.

3\. **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.

4\. **Housing Choice Voucher (HCV) Assistance**. Housing choice voucher
(HCV) assistance is available from the tenant protection voucher fund to
successful applicants that receive the 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. For applicants who are granted a waiver to the
electronic application process, the HCV request should be located with
the Standard Forms and Certifications at the back of the application.
The notice can be found on the Internet at
<http://www.hudclips.org/cgi/index.cgi>.

5\. **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.

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.

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.pp,
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) 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. 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. The thresholds listed below can be cured for technical
deficiencies, except for those indicated as non-curable. 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]{.underline}.

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.

\(2\) **Site Control.** If you propose to develop off-site housing in
ANY phase of your proposed revitalization plan, you **MUST** provide
evidence in your application that you (not your developer) have site
control of **EVERY** property. 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 an option to purchase the property, a sales
agreement, a land swap, or a deed. Evidence 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.

> (f ) You must include a cover sheet with your documented evidence of
> site control in

the Attachments section. This cover sheet must provide a table that
matches the off-site parcels proposed in your application for housing
development to the corresponding documented evidence of site control for
those parcels. Specifically, this table should provide in one column the
name of each parcel, as identified in your application. A second column
should contain the name of the documented evidence corresponding to each
parcel. A third column should provide the location of the documented
evidence in the attachment (page number, etc.) and any other necessary
detail about the evidence. If more than one unit will be built on a
parcel, this must be identified as well in the table. The purpose of
this table is to aid reviewers' ability to determine whether your
application complies with this threshold. Accordingly, applicants should
provide site control information as clearly and consistently as
possible.

\(3\) 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 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.

\(4\) **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.

\(5\) **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](http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=CPDN&s1=@docn&l=100&SECT1=TXTHLB&SECT5=HEHB&u=./nph-brs.cgi?d=CPDN&s1=02-8[no]&SECT1=TXTHLB&SECT5=CPDN&u=./hudclips.cgi&p=1&r=1&f=G),
Guidance on the Application of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (URA), as Amended, in
HOPE VI Projects;"

\(ii\) 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.

\(6\) **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.

\(7\) **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.

\(8\) **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.

\(9\) **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 2007 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, 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. 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, 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
two HOPE VI Revitalization applications, in accordance with the criteria
of this NOFA. If an applicant submits two applications, each application
must target a different severely distressed public housing project, in
accordance with the Contiguous, Single, and Scattered-Site Projects
threshold requirement below. If HUD receives multiple applications
electronically, HUD will rate and rank the last application for each
severely distressed public housing development **received and
validated** by Grants.gov by the application deadline. All other
applications will not be considered eligible. In submitting multiple
applications, applicants should provide the project name so that HUD's
system can distinguish one application from another submitted by the
same organization. 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.

\(a\) 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 but may not be
disposed of, 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.

\(a\) 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 2007 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 demonstrate compliance with this threshold in your narrative
(including as listed above, as relevant)**. 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, in accordance with the section IV(E),
Funding Restrictions. **You must demonstrate compliance with this
threshold in your narrative.**

\(5\) **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
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.

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 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](http://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
website 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 webpage 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]{.underline}.

\(3\) 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 [www.pathnet.org]{.underline}**.**

\(4\) Energy Efficiency.

\(a\) New construction must comply with the latest HUD-adopted Model
Energy Code (International Energy Conservation Code (IECC) 2003 or
successor codes) issued by the Council of American Building Officials.

\(b\) HUD encourages you to set higher standards, where cost effective,
for energy and water efficiency in HOPE VI new construction, which can
achieve 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.

\(6\) Energy Star. HUD has adopted a wide-ranging energy action plan for
improving energy efficiency in all program areas. As a first step in
implementing the energy plan, HUD, the Environmental Protection Agency,
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](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]{.underline}
[seq]{.underline}.). 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\. **Labor Standards.** The following standards must be implemented as
appropriate in regard to HOPE VI grants:

\(1\) Labor Standards.

\(a\) Davis-Bacon wage rates apply to development of any public housing
rental units or homeownership units developed with HOPE VI grant funds
and to demolition followed by construction on the site. Davis-Bacon
rates are \"prevailing\" minimum wage rates set by the Secretary of
Labor that all laborers and mechanics employed in the development,
including rehabilitation, of a public housing project must be paid, as
set forth in a wage determination that the PHA must obtain prior to
bidding on each construction contract. The wage determination and
provisions requiring payment of these wage rates must be included in the
construction contract;

\(b\) HUD-determined wage rates apply to:

\(i\) Operation (including nonroutine maintenance) of revitalized
housing, and

\(ii\) Demolition followed only by filling in the site and establishing
a lawn.

\(2\) Exclusions. Under section 12(b) of the 1937 Act, wage rate
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).

\(3\) If other federal programs are used in connection with your HOPE VI
activities, labor standards requirements apply to the extent required by
the other federal programs on portions of the project that are not
subject to Davis-Bacon rates under 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 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

\(viii\) Section 3 and employment opportunities to be created as a
result of redevelopment activities.

\(4\) 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]{.underline}
[Register]{.underline}; and

\(c\) A minimum of two more public meetings must have been held after
the publication date of this NOFA in the [Federal]{.underline}
[Register]{.underline}.

\(d\) 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 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 Self-Sufficiency. One of HUD's major
priorities is to assist public housing residents in their efforts to
become financially self-sufficient and less dependent 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 FY2007 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 website at
[www.hud.gov/nnw/nnwindex.html]{.underline}. There will not be a
separate FY2007-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 such as the Girl Scouts and the Urban
League (each of which has a Memorandum of Agreement (MOA) with HUD).
Copies of these MOAs can be found on the Community and Supportive
Services page of the HOPE VI website at
[www.hud.gov/hopevi]{.underline}.

\(11\) Civil rights and fair housing organizations.

\(12\) Local area agencies on aging.

\(13\) Local agencies and organizations serving persons with
disabilities.

\(14\) Nonprofit organizations such as 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 website at
[www.hud.gov/offices/fbci/index.cfm]{.underline}**.**

\(a\) HUD will consider an organization a \"grassroots\" organization if
it is headquartered in the local community to which it provides
services; and

\(i\) Has an annual social services budget of no more than \$300,000.
This cap includes only the portion of the organization's budget
allocated to providing social services. It does not include other
portions of the budget such as salaries and expenses; or

\(ii\) Has six or fewer full-time equivalent employees.

(b) Local affiliates of national organizations are not considered
    \"grassroots.\"

\(15\) 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
comply with the Fair Housing Act and Title VI of the Civil Rights Act of
1964, and regulations thereunder. 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 percentage of households in a particular racial or ethnic
minority group is at least 20 percentage points higher than the
percentage of that minority group for 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 2003-31,
available at
[http://www.hud.gov/offices/pih/publications/notices/]{.underline}, 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) website at [www.hud.gov/groups/fairhousing.cfm]{.underline}.

\(b\) Specific Fair Housing requirements are:

\(i\) 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]{.underline} [seq]{.underline}.) 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.

\(c\) 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 email 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 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 726 of the FY 2007 HUD
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]{.underline} \"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 website.

\(4\) 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
within a reasonable timeframe, as indicated below. In determining
reasonableness of such timeframe, HUD will take into consideration those
delays caused by factors beyond your control. These timeframes must be
reflected in the form of a program schedule, in accordance with the
timeframes below:

\(1\) Grantees must submit Supplemental Submissions within 90 days from
the date of HUD\'s written request.

\(2\) Grantees must submit CSS work plans within 90 days from the
execution of the grant agreement.

\(3\) Grantees must start construction within 12 months from the date of
HUD\'s approval of the Supplemental Submissions, as requested by HUD
after grant award. This time period may not exceed 18 months from the
date the grant agreement is executed.

\(4\) 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 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.

\(5\) 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.

\(6\) 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.

\(7\) 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 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 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 website 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.

**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 website at
<http://www.hud.gov/offices/fheo/section3/section3.cfm>.

**mm**. **General Section References**. The following subsections of
section III.C. of the General Section are hereby incorporated by
reference:

\(1\) The Americans with Disabilities Act of 1990;

\(2\) 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, the types of resources for which are discussed
below. 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. As noted above, resources
must be firmly committed.

\(c\) 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). Letters that do not include specific dollar amounts or terms
will not be counted.

\(d\) **Signature**. Resource commitments must be written and be signed
by the appropriate official.

\(e\) **Dating**. Match and leverage commitment letters must represent
valid and accurate commitments. Resource commitment letters dated prior
to 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 firmly
commit funds, MOU language that does so should be highlighted or
mentioned in the application. To ensure inclusion of funds, MOUs should
be accompanied by commitment letters or contracts.

\(h\) The PHA's staff time and benefits are not an eligible match or
leverage resource.

(4) **Development Resources.**

\(a\) **Types of Development Resources.** Types of Development Resources
may include:

\(i\) Private mortgage-secured loans, insured loans and other debt.

([a]{.underline}) 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]{.underline}) If you have obtained a construction loan but not a
permanent loan, the value of the acceptably documented construction loan
will be counted.

([c]{.underline}) Your application or commitment letters must include
each loan's interest rate, expected term maturity, and the frequency of
repayment.

> ([d]{.underline}) 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.

> \(iv\) Net sales proceeds from a completed homeownership project.
>
> 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.

\(v\) Funds committed to build private sector housing in direct
connection with the HOPE VI Revitalization plan.

\(vi\) 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.

\(vii\) Tax Exempt Bonds. Your application must include a description of
the use and term.

(viii) Other Public Housing Funds. Other public housing sources include
HOPE VI Revitalization funds from other grants, HOPE VI Demolition
funds, HOPE VI Neighborhood Networks funds, HOPE VI Main Street funds,
Capital Fund program funds, and proposals to use operating subsidy for
debt service. **These HUD public housing funds will NOT be counted for
points under CSS, Development, and Collateral leverage in this NOFA**.
(However, they can be used as part of your revitalization plan.) Other
public housing funds, except for HOPE VI Revitalization funds, will be
counted toward your leverage rating for Anticipatory leverage. 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, toward your match requirement. (Capital
Funds may be counted for match; see Section III.B.1 for information on
match).

\(ix\) Other Federal Funds. Other federal sources may include non-public
housing funds provided by HUD.

\(x\) 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.

\(xi\) 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.

> \(xii\) Low-Income Housing Tax Credits (LIHTC).

([a]{.underline}) 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]{.underline}) 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]{.underline}) 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]{.underline}) 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]{.underline}) 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]{.underline}) You may seek a pledge of Community Development Block
Grant (CDBG) funds for improvements to public infrastructure such as
streets, water mains, etc. related to the revitalization effort. CDBG
funds are awarded by HUD by formula to units of general local government
and to states, which may then award a grant or loan to certain other
entities for revitalization activities. As a general rule, CDBG funds
may not be used for the construction of new permanent housing. More
information about the CDBG program can be found at
[www.hud.gov/offices/cpd/index.cfm]{.underline}.

([vi]{.underline}) The city, county/parish, or state may provide HOME
funds to be used for the development of housing units assisted with HOPE
VI funds. The HOME Investment Partnership program provides funds for
affordable housing that are distributed from HUD to units of general
local governments and states. Funds may be used for new construction,
rehabilitation, acquisition of standard housing, assistance to
homebuyers, and tenant-based rental assistance. HOME-assisted rental
housing units are subject to HOME rent limits, income limits, property
standards, leases, tenant selection, and long-term affordability
requirements. 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
[www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm](http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm).

([vii]{.underline}) 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.

\(a\) For CSS **leverage (not match)**, include **only** funds/in-kind
services that will be

**newly** generated for HOPE VI activities. If an existing service
provider significantly increases the level of services provided at the
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;

\(f\) PHA staff salaries and benefits;

\(g\) 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.

\(3\) **Sources of Community and Supportive Services Resources**. In
order to achieve quantifiable self-sufficiency results, you must form
partnerships with organizations that are skilled in the delivery of
services to residents of public housing and that can provide commitments
of resources to support those services. You must actively enlist as
partners other stakeholders who are vested in and can provide
commitments of funds and in-kind services for the CSS portion of your
revitalization effort. See Section III.C.3.m. above for examples of the
kinds of organizations and agencies that can provide you with resources
necessary to carry out and sustain your CSS activities.

#### IV. Application and Submission Information

**A. Addresses to Request Application Package**. This section describes
how applicants may obtain application packages and request technical
assistance. Copies of the published NOFA and application forms for HUD
programs are made available at Grants.gov at the following website:
[http://www.grants.gov/applicants/apply_for_grants.jsp](https://apply.grants.gov/forms_apps_idx.html).

1\. **Technical Assistance and Resources for Electronic Grant
Applications**

**a. Grants.gov Customer Support**. Applicants having difficulty
accessing the application and instructions or having technical problems
can receive customer support from Grants.gov by calling (800) 518-GRANTS
(this is a toll-free number) or by sending an email to
<support@grants.gov>. The customer support center is open from 7:00 a.m.
to 9:00 p.m. eastern time, Monday through Friday, except federal
holidays. The customer service representatives will assist applicants in
accessing the information and addressing technology issues.

**b. Desktop Users Guide for Submitting Electronic Grant Applications**.
HUD has published on its website a detailed Desktop Users Guide that
walks applicants through the application submission process, beginning
with finding a funding opportunity, completing the registration process,
and downloading and submitting the electronic application. The guide
includes helpful step-by-step instructions, screen shots, and
error-proof tips to assist applicants in becoming familiar with
submitting applications electronically. The guide is available online at
[http://www.hud.gov/offices/adm/grants/deskuserguide.pdf]{.underline}.

**c. HUD's Registration Brochure**. HUD has a registration brochure that
provides detailed information on the registration process. See
h[ttp://www.hud.gov/offices/adm/grants/regbrochure.pdf]{.underline}.

d\. **HUD's Finding and Applying for Grant Opportunities Brochure**. HUD
also has a brochure that will guide you through the process of finding
and applying for grants. See HUD's Finding and Applying for Grant
Opportunities brochure at
<http://www.hud.gov/offices/adm/grants/findapplybrochure.pdf>.

e\. **HUD's NOFA Information Center**. Applicants that do not have
Internet access and need to obtain a copy of a NOFA can contact HUD's
NOFA Information Center toll-free at (800) HUD-8929. Persons with
hearing or speech impairments may access this number via TTY by calling
the Federal Information Relay Service at (800) 877-8339. The NOFA
Information Center is open between 10:00 a.m. and 6:30 p.m. eastern
time, Monday through Friday, except federal holidays.

f\. **HUD Staff**. HUD staff will be available to provide you with
general guidance and technical assistance about this notice or about
individual program NOFAs. However, HUD staff is not permitted to help
prepare your application. Following selection of applicants, but before
announcement of awards are made, HUD staff is available to assist in
clarifying or confirming information that is a prerequisite to the offer
of an award or annual contributions contract (ACC) by HUD. If you have
program-related questions, contact the agency contact listed in this
NOFA.

**B. Content and Form of Application Submission.**

1\. **Instructions on How to Register for Electronic Application
Submission.** Applicants must submit their applications electronically
through Grants.gov. Before you can do so, you must complete several
important steps to register as a submitter. The registration process can
take approximately 2 to 4 weeks to complete. Therefore, registration
should be done in sufficient time before you submit your application.
See Section IV.B. of the General Section for detailed information
regarding the Grants.gov registration process.

2\. **Instructions on How to Download an Application Package and
Application Instructions.**

a\. **The Application Package and Application Instructions**. The
general process for downloading, completing, submitting, and tracking
grant application packages is described at
<http://www.grants.gov/applicants/apply_for_grants.jsp>. See Section
IV.B. of the General Section for additional information on this topic.

# 3. Instructions on How to Complete the Selected Grant Application Package. See Section IV.B. of the General Section for detailed information on this topic.

4\. **Application Submission.**

a\. **Paper Application Submissions.** HUD's regulations allow for a
waiver of the electronic submission requirement for cause. If your
organization is granted a waiver, you should follow the instructions
below regarding paper application submissions. Unless otherwise
indicated, the executive director of the applicant PHA, or his or her
designee, must sign each form or certification that is required to be
submitted with the application, whether part of an attachment or a
standard certification; signatures need not be original in the duplicate
Headquarters copy and the duplicate field office copy.

b\. **Application Layout.** These criteria apply to all applicants,
unless otherwise noted.

\(1\) Double-space your narrative pages. **Single-spaced pages will be
counted as two pages**;

\(2\) Use 8½ x 11-inch paper (one side only, if you receive a waiver of
the electronic submission). Only the city map may be submitted on an 8 ½
by 14-inch sheet of paper. **Larger pages will be counted as two
pages**;

\(3\) All margins should be approximately one inch. If any margin is
smaller than ½ inch, the page will be counted as two pages;

\(4\) Use 12-point, Times New Roman font;

\(5\) Any pages marked as sub-pages (e.g., with numbers and letters such
as 75A, 75B, 75C), will be treated as separate pages;

\(6\) If a section is not applicable, indicate n/a;

\(7\) Mark each Exhibit and Attachment with the appropriate tab/title
page, as listed below. No material on the tab/title page will be
considered for review purposes;

\(8\) No more than one page of text may be placed on one sheet of paper;
i.e., you may not shrink pages to get two or more on a page. Shrunken
pages, or pages where a minimized/reduced font are used, will be counted
as multiple pages;

\(9\) Do not format your narrative in columns. Pages with text in
columns will be counted as two pages;

\(10\) If you are granted a waiver from the electronic submission
requirement: The

applications (copy and original) should each be packaged in a three-ring
binder; and

\(11\) Narrative pages must be numbered. HUD recommends that applicants

consecutively number the pages of the Attachments section to ensure
proper assembly of their application if submitted electronically.

c\. **Application Page Count.** These criteria apply to all
applicants**.**

\(1\) Narrative Exhibits.

\(a\) The first part of your application will be comprised of narrative
exhibits. Your narratives will respond to each rating factor in the NOFA
and will also respond to threshold requirements. Among other things,
your narratives must describe your overall planning activities,
including, but not limited to, relocation, community, and supportive
services, and development issues.

\(b\) Each HOPE VI Revitalization application must contain no more than
100 pages of narrative exhibits. Any pages after the first 100 pages of
narrative exhibits **will not be reviewed**. Although submitting pages
in excess of the page limitations will not disqualify an application,
**HUD will not consider the information on any excess pages, which may
result in a lower score or failure of a threshold.** Text submitted at
the request of HUD to correct a technical deficiency will not be counted
in the 100-page limit.

\(2\) Attachments.

\(a\) The second part of your application will be comprised of
Attachments. These documents will also respond to the rating factors in
the NOFA, as well as threshold and mandatory documentation requirements.
They will include documents such as maps, photographs, letters of
commitment, application data forms, various certifications unique to
HOPE VI Revitalization, and other certifications.

\(b\) Each HOPE VI Revitalization application must contain no more than
125 pages of attachments. Any pages after the first 125 pages of
attachments **will not be considered**. Although submitting pages in
excess of the page limit will not disqualify an application, **HUD will
not consider the information on any excess pages, which may result in a
lower score or failure to meet a threshold.**

\(3\) Exceptions to page limits. The documents listed below constitute
the **only** exceptions and are not counted in the page limits listed in
Sections (1) and (2) above:

\(a\) Additional pages submitted at the request of HUD in response to a
technical deficiency.

\(b\) Attachments that provide documentation of commitments from
Development, CSS, Collateral, and Anticipatory resource providers
(Attachments 19-22).

\(c\) Attachments that provide documentation of site control and site
acquisition, in accordance with Section III of this NOFA (Attachment
18).

\(d\) Narratives and Attachments, as relevant, required to be submitted
only by existing HOPE VI Revitalization grantees, in accordance with
Sections V.A. of this NOFA (Capacity).

\(e\) Information required of MTW applicants only.

\(f\) Standard forms (Attachment 33).

> \(g\) Blank/extra pages generated as part of standard forms.
>
> \(h\) Tabs/title pages that are blank or display a title/header.

d\. **Electronic Submissions: Additional Format and Title Instructions**

\(1\) Exhibits. Exhibits are as listed below in Section IV.B.6. of this
NOFA. Each Exhibit should be contained in a separate file and section of
the application. Each file should contain one title page. Do not create
title pages separately from the document it goes with.

\(a\) Exhibit Title Pages. HUD will use title pages as tabs when it
downloads and prints the application. Provided the information on the
title page is limited to the list in Section (b) below, the title pages
will not be counted when HUD determines the length of each Exhibit, or
the overall length of the Exhibits.

\(i\) Each title page should only contain:

([A]{.underline}) The name of the Exhibit, as described below in section
IV.B.6. of this NOFA, e.g., "Narrative Exhibit A: Summary Information;"

([B]{.underline}) The name of the applicant; and

([C]{.underline}) The name of the file that contains the Exhibit.

\(b\) Exhibit File Names and Types.

\(i\) All Exhibit files in the application must be contained in one
Exhibit ZIP file.

\(ii\) Each file within the ZIP file must be formatted so it can be read
by Microsoft Word (.doc (version 9)).

\(iii\) Each file name must include the information below, in the order
stated:

([A]{.underline}) Short version of the applicant's name, e.g., town,
city, county/parish, etc., and state; and

([B]{.underline}) The word "Exhibit" and the Exhibit letter (A through
I), as listed in section IV.B.6. of this NOFA;

([C]{.underline}) An example of an Exhibit file name is, "Atlanta GA
Exhibit A."

\(2\) Attachments. Attachments are as listed below in section IV.B.6. of
this NOFA. Each Attachment should be contained in a separate file and
section of the application. Each Attachment that is not a HUD form
should contain one title page.

\(a\) Attachment Title Pages. HUD will use title pages as tabs if it
downloads and prints the application. Provided the information on the
title page is limited to the list in section (b) below, the title pages
will not be counted when HUD determines the length of each Attachment or
the overall length of the Attachments. HUD forms do not require title
pages.

\(i\) Each title page should only contain:

([A]{.underline}) The name of the Attachment, as described below in
section IV.B.6. of this NOFA,

e.g., "Attachment 10: Extraordinary Site Costs Certification;"

([B]{.underline}) The name of the applicant; and

([C]{.underline}) The name of the file that contains the Attachment.

\(b\) Attachment File Names and Types.

\(i\) All Attachments that are not listed separately on grants.gov and
are formatted as PureEdge forms, e.g., SF-424, must be contained in one
(or more as needed) Attachment ZIP file.

\(ii\) Each file within the ZIP file must be formatted so it can be read
by Microsoft Word (.doc (version 9)), Microsoft Excel 2000 (.xls), or
Acrobat (.pdf) format compatible with Adobe Reader 6.0 or later.
Grants.gov does not accept Vista or Microsoft Office 2007 formats.

\(A\) Attachments that are downloaded from grants.gov in MS Excel format
may be submitted in Excel format.

\(B\) Attachments that are downloaded from grants.gov in text format,
e.g., certifications, should be submitted in Adobe Acrobat (.pdf)
format.

\(C\) Third-party documents, e.g., leverage commitment letters,
pictures, etc., should be scanned and attached to your electronic
application in Adobe Acrobat (.pdf) format or may be submitted via
facsimile using **form** **HUD- 96011, Third Party Documentation
Facsimile Transmittal** (\"Facsimile Transmittal Form \" on Grants.gov).
Also:

\(iii\) Each file name must include the information below, in the
following order:

\(A\) A short version of the applicant's name, e.g., the town, city,
county/parish, etc., and state; and

\(B\) The word "Attachment" and the Attachment number, as listed in
section IV.B.6. of this NOFA;

\(C\) An example of an Exhibit file name is, "Atlanta GA Attachment 1."

5\. Documentation requirements are provided in the "Threshold
Requirements" section (Section III.C.2.), "Program Requirements" section
(Section III.C.3), and "Rating Factors" section (Section V.A) of this
NOFA. **Applicants must carefully review and follow documentation
requirements.**

6\. **Application Content.** The following is a list of narrative
exhibits, attachments, and instructions for each, that are required as
part of the application. Non-submission of these items may lower your
rating score or make you ineligible for award under this NOFA. Review
the threshold requirements in section III.C. and the Rating Factors of
section V.A. to ascertain the effects of non-submission. HUD forms
required by this NOFA are included in the electronic application at
[http://www.grants.gov/applicants/apply_for_grants.jsp]{.underline}.
Applicants that are granted a waiver to the electronic submission
requirement must include the narrative exhibits and attachments in the
application in the order listed below. Here is the order for the Table
of Contents and the order in which paper applications must be submitted,
if you are granted a waiver to the electronic application submission
requirement:

\(1\) Acknowledgment of Application Receipt, form HUD-2993 (applies only
if you are granted a waiver to the electronic submission requirement);

\(2\) Application for Federal Assistance, Standard Form SF-424; and

\(3\) HOPE VI Revitalization Application Table of Contents.

a\. Narrative Exhibits.

\(1\) Narrative Exhibit A: Summary Information

> \(2\) Narrative Exhibit B: Capacity
>
> \(3\) Narrative Exhibit C: Need
>
> \(4\) Narrative Exhibit D: Resident and Community Involvement
>
> \(5\) Narrative Exhibit E: Community and Supportive Services
>
> \(6\) Narrative Exhibit F: Relocation
>
> \(7\) Narrative Exhibit G: Fair Housing and Equal Opportunity
>
> \(8\) Narrative Exhibit H: Well-Functioning Communities
>
> \(9\) Narrative Exhibit I: Soundness of Approach

b\. **Attachments.**

\(1\) Attachments 1 through 7: HOPE VI Application Data Form, form
HUD‑52860-A

\(2\) Attachment 8: HOPE VI Budget, form HUD-52825-A

\(3\) Attachment 9: TDC-Grant Limitations Worksheet, form HUD-52799

\(4\) Attachment 10: Extraordinary Site Costs Certification, if
applicable

\(5\) Attachment 11: City Map

\(6\) Attachment 12: Assurances for a HOPE VI Application: for
Developer, HOPE VI Revitalization Resident Training & Public Meeting
Certification, Relocation Plan (whether relocation is completed or is
yet to be completed)

\(7\) Attachment 13: Program Schedule

> \(8\) Attachment 14: Certification of Severe Physical Distress
>
> \(9\) Attachment 15: Photographs of the Severely Distressed Housing

\(10\) Attachment 16: Neighborhood Conditions

\(11\) Attachment 17: Preliminary Market Assessment Letter, if relevant

\(12\) Attachment 18: Documentation of Site Control for Off-Site Public
Housing

\(13\) Attachments 19 through 22: HOPE VI Revitalization Leverage
Resources, form HUD-52797

\(14\) Attachment 23: Documentation of Environmental, and Neighborhood
Standards

> \(15\) Attachment 24: Land Use Certification or Documentation

\(16\) Attachment 25: Evaluation Commitment Letter(s)

> \(17\) Attachment 26: Current Site Plan

\(18\) Attachment 27: Photographs of Architecture in the Surrounding
Community

> \(19\) Attachment 28: Conceptual Site Plan
>
> \(20\) Attachment 29: Conceptual Building Elevations
>
> \(21\) Attachment 30: HOPE VI Revitalization Application
> Certifications

\(22\) Attachment 31: HOPE VI Revitalization Project Readiness
Certification, form HUD-52787

\(23\) Attachment 32: Capital Fund Financing Program Threshold: Legal
Counsel Opinion and Executive Director Certification, if applicable

> \(24\) Attachment 33: Standard Forms and Certifications
>
> \(a\) Application for Federal Assistance (SF-424);

\(b\) Acknowledgment of Application Receipt (form HUD-2993), applicable
ONLY if the applicant obtains a waiver from the electronic submission
requirement;

> \(c\) Disclosure of Lobbying Activities (SF-LLL), if applicable;

\(d\) Applicant/Recipient Disclosure/Update Report (form HUD-2880)
(\"HUD Applicant Recipient Disclosure Report\" on Grants.gov);

> \(e\) Program Outcome Logic Model (form HUD-96010);

\(f\) America's Affordable Communities Initiative (form HUD-27300) (and
supporting documentation);

\(g\) If applicable, Funding Application for Housing Choice Voucher
Assistance prepared in accordance with Notice PIH 2007-10 (and any
reinstatement of or successor to that Notice), including the Section 8
Tenant-Based Assistance Rental Certificate Program and the Rental
Voucher Program, form HUD-52515;

\(h\) form HUD-96011, "Third Party Documentation Facsimile Transmittal"
(\"Facsimile Transmittal Form\" on Grants.gov), if applicable.

**Further Documentation Guidance on Narrative Exhibits and Attachments.
Please be sure to carefully review sections III, IV, and V for program
and documentation requirements for all the elements below.**

a\. **Exhibit A.** Verify that you have included information relating to
the following exhibits.

\(1\) Executive Summary. Provide an Executive Summary, not to exceed
three pages. Describe your Revitalization plan, as clearly and
thoroughly as possible. Do not argue for the need for the HOPE VI grant,
but explain what you would do if you received such a grant. Briefly
describe why the targeted project is severely distressed, provide the
number of units, and indicate how many of the units are occupied.
Describe specific plans for the revitalization of the site. Include
income mix, basic features (such as restoration of streets), and any
mixed use or non-housing components. If you are proposing off-site
replacement housing, provide the number and type of units and describe
the off-site locations. Describe any homeownership components included
in your Plan, including the numbers of units. Briefly summarize your
plans for community and supportive services. State the amount of HOPE VI
funds you are requesting and list the other major funding sources you
will use for your mixed-finance development. Identify whether you have
procured a developer or whether you will act as your own developer.

\(2\) Physical Plan. Describe your planned physical revitalization
activities:

\(a\) Rehabilitation of severely distressed public housing units, in
accordance with sections I(C) and III(C) of the NOFA;

\(b\) Development of public housing replacement rental housing, both
on-site and off-site, in accordance with sections I(C) and III(C) of the
NOFA;

\(c\) Indicate whether you plan to use PATH technologies and Energy Star
in the construction of replacement housing, in accordance with section
III(C) of the NOFA;

\(d\) Market rate housing units (see sections III(C));

\(e\) Units to be financed with low-income housing tax credits;

\(f\) Replacement homeownership assistance for displaced public housing
residents or other public housing-eligible low-income families, in
accordance with sections I(C) and III(C) of the NOFA. Also describe any
market-rate homeownership units planned, sources, and uses of funds.
Describe the relationship between the HOPE VI activities and costs and
the development of homeownership units, both public housing and market
rate. If you are selected for funding, you will be required to submit a
Homeownership Proposal (homeownership term sheet);

\(g\) Rehabilitation or new construction of community facilities
primarily intended to facilitate the delivery of community and
supportive services for residents of the targeted development and
residents of off-site replacement housing, in accordance with sections
I(C) and III(C). Describe the type and amount of such space and how the
facilities will be used in CSS program delivery or other activities;

\(h\) Zoning, land acquisition, and infrastructure and site
improvements. Note that HOPE VI grant funds may not be used to pay hard
development costs or to buy equipment for retail or commercial
facilities;

\(3\) Hazard Reduction. Review sections I(C), III(C), and IV(E) of the
NOFA. For units

to be rehabilitated or demolished, describe the extent of any required
abatement of environmentally hazardous materials such as asbestos.

\(4\) Demolition. Review sections I(C) and III(C) of the NOFA. Describe
your plans for demolition, including the buildings (dwelling and
non-dwelling units) proposed to be demolished, the purpose of the
demolition, and the use of the site after demolition. If the proposed
demolition was previously approved as a section 18 demolition
application, state the date the section 18 demolition application was
submitted to HUD and the date it was approved by HUD. Indicate whether
you plan to implement the concept of Deconstruction, as described in
section III(C) of the NOFA.

\(5\) Disposition. Review sections I(C) and III(C) of the NOFA. Describe
the extent of any planned disposition of any portion of the site. Cite
the number of units or acreage to be disposed, the method of disposition
(sale, lease, trade), and the status of any disposition application made
to HUD.

\(6\) Site Improvements. Review sections I(C), III(C), and IV(E) of the
NOFA. Describe any proposed on-site improvements, including
infrastructure requirements, changes in streets, etc. Describe all
public improvements needed to ensure the viability of the proposed
project with a narrative description of the sources of funds available
to carry out such improvements.

\(7\) Site Conditions. Review sections I(C), III(C), and IV(E) of the
NOFA. Describe the conditions of the site to be used for replacement
housing. Listing all potential contamination or danger sources (e.g.,
smells, fire, heat, explosion, and noise) that might be hazardous or
cause discomfort to residents, PHA personnel, or construction workers.
List potential danger sources, including commercial and industrial
facilities, brownfields and other sites with potentially contaminated
soil, commercial airports, and military airfields. Note any facilities
and/or activities within one mile of the proposed site.

\(8\) Separability. See Section III(C) of the NOFA. If applicable,
address the separability of the revitalized building(s) within the
targeted project. This is a threshold.

\(9\) Proximity. If applicable, describe how two contiguous projects
meet the requirement of section III(C) of the NOFA, or how scattered
sites meet the requirements of section III(C) of the NOFA,

b\. **Exhibit B. Capacity.** Verify that you have included information
relating to the following exhibits:

\(1\) PHAS, Maintenance, and SEMAP. Respond to the Rating Factors at

V(A)(1)(g), V(A)(1)(h), and V(A)(1)(i) of the NOFA.

\(2\) Development Capacity of Developer. Respond to Rating Factor
V(A)(1)(a).

\(3\) Development Capacity of Applicant. Respond to Rating Factor
V(A)(1)(b).

\(4\) Capacity of Existing HOPE VI Revitalization grantees. Respond to
Rating Factor

V(A)(1)(c) of the NOFA. This rating factor applies only to PHAs with
existing HOPE VI Revitalization grants from FYs 1993 to 2003.
Expenditure information will be taken from Line of Credit Control System
(LOCCS) as of the application deadline date.

\(5\) CSS Program Capacity. Respond to Rating Factor V(A)(1)(d) of the
NOFA.

\(6\) Property Management Capacity. Respond to Rating Factor V(A)(1)(e)
of the NOFA.

\(7\) PHA or MTW Plan. Respond to Rating Factor V(A)(1)(f) of the NOFA.

c\. Exhibit C. Need. Verify that you have included information relating
to the following:

(1) Need for Revitalization: Severe Physical Distress of the Public
    Housing Site. Respond to Rating Factor V(A)(2)(a) of the NOFA.

(2) Need for Revitalization: Impact of the Severely Distressed Site on
    the Surrounding Neighborhood. Respond to Rating Factor V(A)(2)(b) of
    the NOFA.

(3) Need for HOPE VI Funding (Obligation of Capital Funds). Respond to
    Rating Factor V(A)(2)(c) of the NOFA.

(4) Previously Funded Sites. Respond to section III(C)(2) of the NOFA.
    This is a threshold requirement.

(5) Need for Affordable, Accessible Housing in the Community. Respond to
    Rating Factor V(A)(2)(d) of the NOFA.

(6) Need for Affordable Accessible Housing in the Nation. Respond to
    Rating Factor V(A)(2)(e) of the NOFA.

d\. **Exhibit D. Resident and Community Involvement**. Verify that you
have included

information relating to the following. Discuss your communications about
your development

plan and HUD communications with residents, community members, and other
interested

parties. Include the resident training attachment. Review program
requirements in section III

and respond to Rating Factor V(A)(4).

e\. **Exhibit E. Community and Supportive Services**. Respond to section
V(A)(5). Verify that you have included information relating to the
following: [Endowment Trust]{.underline}. If you plan to place CSS funds
in an Endowment Trust, review section III(C) and section V(A)(5), and
state the dollar amount and percentage of the entire grant that you plan
to place in the Trust.

f\. **Exhibit F. Relocation**. Verify that you have included information
relating to the following:

(1) [Housing Choice Voucher (HCV) Needs]{.underline}. Review section
    III(C) and V(A)(6) of the

NOFA. State the number of HCVs that will be required for relocation if
this HOPE VI application is approved, both in total and the number
needed for FY 2007. Indicate the number of units and the bedroom
breakout. 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
(not just form HUD 52515). This application should be placed at the back
of the application with the other Standard Forms and Certifications. HUD
will process the HCV assistance applications for funded HOPE VI
applicants.

(2) [Relocation Plan]{.underline}. Review sections III(C)(2) and
    III(C)(3) of the NOFA and respond to Rating Factor V(A)(6). For
    additional guidance, refer to Handbook 1378 and form HUD-52774.

g\. **Exhibit G. Fair Housing and Equal Opportunity**. Verify that you
have included information relating to the following:

(1) Accessibility. Respond to Rating Factor V(A)(7)(a)(1).

(2) Universal Design. Respond to Rating Factor V(A)(7)(a)(2).

(3) Fair Housing. Respond to Rating Factor V(A)(7)(b).

(4) Section 3. Respond to Rating Factor V(A)(7)(c).

h\. **Exhibit H**. Verify that you have included information relating to
the following:

\(1\) Unit Mix and Need for Affordable Housing. Respond to Rating Factor
V(A)(8)(a);

\(2\) Off-Site Housing. Respond to Rating Factor V(A)(8)(b); and

\(3\) Homeownership Housing. Respond to Rating Factor V(A)(8)(c).

i\. **Exhibit I**. Verify that you have included information relating to
the following:

\(1\) Appropriateness of Proposal. Respond to the threshold requirement
in section III(C)(2).

\(2\) Appropriateness and Feasibility of the Plan. Respond to Rating
Factor V(A)(9)(b);

\(3\) Neighborhood Impact and Sustainability of the Plan. Respond to
Rating Factor V(A)(9)(c);

\(4\) Project Readiness. Respond to Rating Factor V(A)(9)(d) by
completing the certification form provided;

\(5\) Program Schedule. Respond to Rating Factor V(A)(9)(e);

\(6\) Design. Describe the features of your proposed design and respond
to Rating Factor V(A)(9)(f);

\(7\) Energy Star. Respond to Rating Factor V(A)(9)(g); and

\(8\) Evaluation. Respond to Rating Factor V(A)(9)(h).

j\. **Attachments 1 through 7**. These attachments are required in all
applications. For instruction on how to fill out Attachments 1 through
7, see Appendix 1, Instructions for the HOPE VI Application Data Forms.

k\. **Attachment 8**. This attachment is required in all applications.
In addition to the instructions included in the HOPE VI Budget form,
general guidance on [preparing]{.underline} a HOPE VI budget can be
found on the Grant Administration page of the HOPE VI website,
<http://www.hud.gov/offices/pih/programs/ph/hope6/>.

l\. **Attachment 9. Form HUD-52799, "TDC/Grant Limitations Worksheet."**
This attachment is required in all applications. The Excel workbook will
assist you in determining your TDC limits required in section IV.E.

m\. **Attachment 10.** Extraordinary Site Costs Certification. This
attachment is applicable only if you request funds to pay for
extraordinary site costs, outside the TDC limits. See section IV.E.

n\. **Attachment 11.** City Map. This attachment is required in all
applications. Review section III(C). Provide a to-scale city map that
clearly identifies the following in the context of existing city
streets, the central business district, other key city sites, and census
tracts:

\(1\) the existing development;

\(2\) replacement neighborhoods, if available;

\(3\) off-site properties to be acquired, if any;

\(4\) the location of the federally designated Empowerment Zone or
Enterprise Community (if applicable); and

\(5\) other useful information to place the project in the context of
the city, county/parish, or municipality, and other revitalization
activity underway or planned.

If you request funds for more than one project or for scattered site
housing, the map must clearly show that the application meets the NOFA's
site and unit requirements. If you have received a waiver from the
electronic submission requirement, this map may be submitted on 8-1/2"
by 14" paper.

o\. **Attachment 12**. Assurances for a HOPE VI Application: for
Developer, HOPE VI Revitalization Resident Training and Public Meeting
Certification, and Relocation Plan (whether relocation is completed or
is yet to be completed). Please complete this assurance document. Do not
sign; a signature is not required.

p\. **Attachment 13**. Program Schedule. Review Rating Factor V.A.9.e.

q\. **Attachment 14**. Certification of Severe Physical Distress. This
attachment is required in all applications. In accordance with sections
I(C) and III(C)(2) and (3), an engineer or architect must complete
Attachment 14. No backup documentation is required for this
certification.

r\. **Attachment 15**. Photographs of the Severely Distressed Housing.
This attachment is required in all applications. Review Rating Factor
V(A)(2)(a). Submit photographs of the targeted severely distressed
public housing that illustrate the extent of physical distress.

s\. **Attachment 16**. Neighborhood Conditions. This attachment is
required in all applications. Submit documentation described in Rating
Factor V(A)(2)(b). Documentation may include crime statistics,
photographs or renderings, socio-economic data, trends in property
values, evidence of property deterioration and abandonment, evidence of
underutilization of surrounding properties, and other indications of
neighborhood distress and/or disinvestment.

t\. **Attachment 17**. Preliminary Market Assessment Letter, if
relevant. This is applicable if you include market rate housing in your
application, in accordance with section V.9., Soundness of Approach.

u\. **Attachment 18**. Documentation of Site Control for Off-Site Public
Housing. This is

applicable if your plan includes off-site housing or other development.
If applicable, provide evidence of site control for rental replacement
units or land, in accordance with section III(C)(2). See section IV(B)
for documentation requirements. You must include a cover sheet with your
documented evidence of site control in the Attachments section. This
cover sheet must provide a table that matches the off-site parcels
proposed in your application for housing development to the
corresponding documented evidence of site control for those parcels.
Specifically, this table should provide in one column the name of each
parcel, as identified in your application. A second column should
contain the name of the documented evidence corresponding to each
parcel. A third column should provide the location of the documented
evidence in the attachment (page number, etc.) and any other necessary
detail about the evidence. If more than one unit will be built on a
parcel, this must also be identified in the table. The purpose of this
table is to aid reviewers' ability to determine whether your application
complies with this threshold. Accordingly, applicants should provide
site control information as clearly and consistently as possible.

v\. **Attachments 19 through 22**. HOPE VI Revitalization Leverage
Resources, form HUD-52797. These attachments are included in form
HUD-52797, "HOPE VI Revitalization Leverage

Resources" and are required in all applications.

\(1\) Physical Development Resources. In accordance with Rating Factor
V(A)(3)(b),

complete Attachment 19, as provided in the application, by entering the
dollar value of each resource that will be used for physical
development. For each resource entered, you must submit backup
documentation in Attachment 19. See section III.C, "Program
Requirements" and "Program Requirements that Apply to Match and
Leverage" for resource and documentation requirements.

\(2\) CSS Resources. In accordance with Rating Factor V(A)(3)(c),
complete this

Attachment 20, as provided in the application, by entering the dollar
value of all resources that will be used for CSS activities. For each
resource entered, submit backup documentation in Attachment 20. See
section III.C, "Program Requirements" and "Program Requirements that
Apply to Match and Leverage" for resource and documentation
requirements.

\(3\) Anticipatory Resources. Complete Attachment 21, as provided in the
Application, by entering the dollar value of all anticipatory resources
as described in Rating Factor V(A)(3)(d). For each resource entered,
submit backup documentation in Attachment 21. See section III.C,
"Program Requirements" and "Program Requirements that Apply to Match and
Leverage" for resource and documentation requirements.

\(4\) Collateral Resources. Complete Attachment 22, as provided in the
Application, by entering the dollar value of all collateral resources as
described in Rating Factor V(A)(3)(e). For each resource entered, submit
backup documentation behind Attachment 22. See section III.C, "Program
Requirements" and "Program Requirements that Apply to Match and
Leverage" for resource and documentation requirements.

w\. **Attachment 23**. Documentation of Environmental, and Neighborhood
Standards. This is applicable if your plan includes off-site housing or
other off-site development. Provide a certification that the site(s)
acquired for off-site [public]{.underline} housing meet environmental
and site and neighborhood standards, as provided in section
V(A)(8)(b)(2). This certification may be in the form of a letter.

x\. **Attachment 24**. Land Use Certification or Documentation. Complete
this certification in accordance with the land use threshold in section
III(C)(2). This attachment may be a certification or copies of the
actual land use documentation. The certification may be in the form of a
letter.

y\. **Attachment 25**. Evaluation Commitment Letter(s). This attachment
is required in all applications. Review section V(A)(9)(h) and provide
the requested commitment letter(s) that addresses the indicated
evaluation areas.

z\. **Attachment 26**. Current Site Plan. This attachment is required in
all applications. The Site Plan shows the targeted public housing site's
various buildings and identifies which buildings are to be
rehabilitated, demolished, or disposed of. Demolished buildings should
be shown and labeled as such.

aa. **Attachment 27**. Photographs of Architecture in the Surrounding
Community. This attachment is required in all applications. Provide
photographs to demonstrate that your plan conforms to the Design
requirements of section III.C.3. and Rating Factor V(A)(9)(f).

bb. **Attachment 28**. Conceptual Site Plan. This attachment is required
in all applications. The Conceptual Site Plan indicates where your
plan's proposed construction [and]{.underline} rehabilitation activities
will take place and any planned acquisition of adjacent property and/or
buildings. Review the design requirements of section III.C.3. and Rating
Factor V(A)(9)(f).

cc\. **Attachment 29**. Conceptual Building Elevations. This attachment
is required in all

applications. Review the design requirements of section III.C.3. and
Rating Factor V(A)(9)(f).

Include building elevation drawings for the various types of your
proposed housing.

dd. **Attachment 30**. HOPE VI Revitalization Application
Certifications. This attachment is required in all applications. This
form is contained in the electronic application at
[http://www.grants.gov/applicants/apply_for_grants.jsp]{.underline}.
Note that these certifications (four page document) must be signed by
the chairman of the board of the PHA, NOT the executive director.

ee. **Attachment 31.** HOPE VI Revitalization Project Readiness
Certification, form HUD-52787. This attachment is required in all
applications. Complete Attachment 31 by indicating which of the items in
Rating Factor V(A)(9)(d) of the NOFA have been completed.

ff. **Attachment 32**. Capital Fund Financing Program Threshold: Legal
Counsel Opinion and Executive Director Certification, if applicable.
Review the CFFP threshold requirement in section III.C. and provide an
opinion from your legal counsel and certification from the executive
director, if applicable.

gg. **Attachment 33**. Standard Forms and Certifications.

\(a\) Application for Federal Assistance (SF-424). Note:  Applicants
must enter their legal name in box 8.a. of the SF-424 as it appears in
the Central Contractor Register (CCR).  See the General Section
regarding CCR registration. This form will be placed at the front of
your application;

\(b\) Acknowledgment of Application Receipt (form HUD-2993), which is
applicable ONLY if the applicant obtains a waiver from the electronic
submission requirement; this will be placed at the front of your
application;

> \(c\) Disclosure of Lobbying Activities (SF-LLL), if applicable;

\(d\) Applicant/Recipient Disclosure/Update Report (form HUD-2880)
(\"HUD Applicant Recipient Disclosure Report\" on Grants.gov);

> \(e\) Program Outcome Logic Model (form HUD-96010);

\(f\) America's Affordable Communities Initiative (form HUD-27300) and
supporting documentation;

\(g\) If applicable, Funding Application for Housing Choice Voucher
Assistance prepared in accordance with Notice PIH 2007-10 (and any
reinstatement of or successor to that Notice), including Section 8
Tenant-Based Assistance Rental Certificate Program, Rental Voucher
Program, and form HUD-52515. It is applicable only if you are requesting
HCVs that are related to your proposed plan. In preparing the request
for vouchers, applicants must follow PIH Notice 2007-10 and any
successor notices;

\(h\) Form HUD-96011, "Third Party Documentation Facsimile Transmittal"
(\"Facsimile Transmittal Form\" on Grants.gov), if applicable.

**C. Submission Dates and Times.**

1\. Applications submitted through Grants.gov must be received and
validated by Grants.gov no later than 11:59:59 p.m. eastern time on the
application deadline date. Because there are several steps in the upload
and receipt process, so applicants are advised to submit their
applications at least 48 to 72 hours in advance of the deadline date and
when the Grants.gov help desk is open, so that any issues can be
addressed prior to the deadline date and time. HUD recommends uploading
your application using Internet Explorer or Netscape.

2\. See the General Section for detailed information regarding the
following topics:

a\. **Confirmation of Submission to Grants.gov**.

b\. **Application Submission Validation Check**.

c\. **Application Validation and Rejection Notification**.

d\. **Late applications**.

**D. Intergovernmental Review/State Points of Contact (SPOC).**
Executive Order 12372, "Intergovernmental Review of Federal Programs,"
was issued to foster intergovernmental partnership and strengthen
federalism by relying on state and local processes for the coordination
and review of federal financial assistance and direct federal
development. HUD's implementing regulations are published at 24 CFR part
52. The executive order allows each state to designate an entity to
perform a state review function. Applicants can find the official
listing of State Points of Contact (SPOCs) for this review process at
<http://www.whitehouse.gov/omb/grants/spoc.html>. States not listed at
that web address have chosen not to participate in the intergovernmental
review process and, therefore, do not have a SPOC. If your state has a
SPOC, you should contact the SPOC to see if it is interested in
reviewing your application before submission to HUD.

Please make sure that you allow ample time for SPOC review when
developing and submitting your applications. If your state does not have
a SPOC, you can submit your application directly to HUD using
Grants.gov.

**E. Funding Restrictions.**

1\. **Statutory Time Limits.**

a\. Required Obligation Date. Funds appropriated for the HOPE VI program
for FY 2007 must be obligated on or before September 30, 2008. Any funds
that are not obligated by that date will be recaptured by the Treasury,
and thereafter will not be available for obligation for any purpose.

b\. **Required Expenditure Date.** In accordance with **31 U.S.C. §
1552**, **all FY 2007 HOPE VI funds must be expended by September 30,
2013.** Any funds that are not expended by that date will be cancelled
and recaptured by the Treasury, and thereafter will not be available for
obligation or expenditure for any purpose.

2\. **Ineligible Activities.**

a\. You may not use HOPE VI Revitalization grant funds to pay for any
revitalization activities carried out on or before the date of the
letter announcing the award of the HOPE VI Grant.

b\. **Market-Rate Units**. HOPE VI funds **may not** be used to develop
market-rate units or affordable housing units that do not qualify as
public housing or homeownership replacement units.

c\. **Retail or Commercial Development**. HOPE VI funds may not be used
for hard construction costs related to, or for the purchase of equipment
for, retail, commercial, or non-public housing office facilities.

3\. **Total Development Cost (TDC)**.

a\. The \"TDC Limit\" (24 CFR 941.306, Notice PIH 2007-19 (HA), or
extending Notice) refers to the maximum amount of HUD funding that HUD
will approve for development of specific public housing and other
eligible replacement housing units to be developed under a HOPE VI
Revitalization grant and/or under an Annual Contributions Contract for
public housing development and modernization of public housing under the
Capital Fund. The TDC limit applies only to the costs of development of
public housing that are paid directly with HUD public housing funds,
including HOPE VI funds; a PHA may exceed the TDC limit using non-public
housing funds such as CDBG, HOME, low-income housing tax credit equity,
etc.

b\. The HUD TDC Cost Tables are issued for each calendar year for the
building type and bedroom distribution for the public housing
replacement units. When making your TDC calculations, use the TDC limits
in effect at the time this HOPE VI NOFA is published. TDC definitions
and limits in the final rule are summarized as follows:

\(1\) The total cost of development, which includes relocation costs, is
limited to the sum of:

\(a\) Up to 100 percent of HUD's published TDC limits for the costs of
demolition and new construction, multiplied by the number of HOPE VI
public housing replacement units; and

\(b\) Ninety percent of the TDC limits, multiplied by the number of
public housing units after substantial rehabilitation and
reconfiguration.

\(2\) The TDC limit for a project is made up of the following
components:

\(a\) Housing Cost Cap (HCC): HUD's published limit on the use of public
housing funds for the cost of constructing the public housing units,
which includes unit hard costs, builder's overhead and profit, utilities
from the street, finish landscaping, and a hard cost contingency.
Estimates should take into consideration the Davis-Bacon minimum wage
rate and other requirements as described in "Labor Standards," section
III.C. of this NOFA. **You may not request HOPE VI Revitalization grant
funds for units currently under construction.**

\(b\) Community Renewal (CR): The balance of funds remaining within the
project's TDC limit after the housing construction costs described in
(a) above are subtracted from the TDC limit. This is the amount of
public housing funds available to pay for PHA administration, planning,
infrastructure and other site improvements, community and economic
development facilities, acquisition, relocation, demolition, and
remediation of units to be replaced on-site, and all other development
costs.

\(3\) CSS. You may request an amount not to exceed 15 percent of the
total HOPE VI grant to pay the costs of CSS activities, as described in
section III.C. of this NOFA. These costs are in addition to, i.e.,
excluded from, the TDC calculation above.

\(4\) Demolition and Site Remediation Costs of Unreplaced On-site Units.
You may request an amount necessary for demolition and site remediation
costs of units that will not be replaced on-site. This cost is in
addition to (i.e., excluded from) the TDC calculation above.

\(5\) Extraordinary Site Costs.

\(a\) You may request a reasonable amount to pay extraordinary site
costs, which are construction costs related to unusual pre-existing site
conditions that are incurred, or anticipated to be incurred. If such
costs are significantly greater than those typically required for
similar construction, are verified by an independent, certified engineer
or architect (see section IV.B. for documentation requirements), and are
approved by HUD, they may be excluded from the TDC calculation above.
Extraordinary site costs may be incurred in the remediation and
demolition of existing property, as well as in the development of new
and rehabilitated units. Examples of such costs include, but are not
limited to: abatement of extraordinary environmental site hazards;
removal or replacement of extensive underground utility systems;
extensive rock and soil removal and replacement; removal of hazardous
underground tanks; work to address unusual site conditions such as
slopes, terraces, water catchments, lakes, etc.; and work to address
flood plain and other environmental remediation issues. Costs to abate
asbestos and lead-based paint from structures are normal demolition
costs. Extraordinary measures to remove lead-based paint that has
leached into the soil would constitute an extraordinary site cost.

\(b\) Extraordinary site costs must be justified and verified by a
licensed engineer or architect who is not an employee of the PHA or the
city. The engineer or architect must provide his or her license number
and state of registration. If this certification is not included in the
application after the cure period described in section IV.B.4. of the
General Section, extraordinary site costs will not be allowed in the
award amount. In that case, the amount of the extraordinary site costs
included in the application will be subtracted from the grant amount.

**4. Cost Control Standards.**

See the Cost Control Standards in Section III.C.3.u.

**5.** **Withdrawal of Grant Amounts**. In accordance with section 24(i)
of the 1937 Act, if a grantee does not proceed within a reasonable
timeframe, as described in section III.C.3.w. (Timeliness of Development
Activities) of this NOFA, HUD shall withdraw any unobligated grant
amounts. HUD shall redistribute any withdrawn amounts to one or more
other applicants eligible for HOPE VI assistance or to one or more other
entities capable of proceeding expeditiously in the same locality in
carrying out the Revitalization plan of the original grantee.

**F. Other Submission Requirements.**

1\. **Waiver of Electronic Submission Requirement**. Applicants
interested in applying for funding under this NOFA must submit their
applications electronically or request a waiver from the electronic
submission process. Waiver requests must be submitted in writing and
sent via fax (followed in the mail by the original signed request).
Waiver requests must be submitted (received via fax) no later than 15
days prior to the application deadline date and should be addressed to
Ms. Dominique Blom, Deputy Assistant Secretary for Public Housing
Investments, Department of Housing and Urban Development, 451 Seventh
Street, SW, Room 4130, Washington, DC 20410, and faxed to the attention
of Ms. Leigh van Rij at (202) 401-2370. The original version of the
request must follow in the mail, sent to the above address. If you are
granted a waiver from the electronic submission process, your
application must be received by HUD no later than 11:59:59 p.m. eastern
time on the application deadline date. See the General Section for
additional information.

If you are granted a waiver from the electronic application submission
requirement, your waiver approval will provide the information on the
number of copies of the application you are required to submit and where
to submit the application. Paper applications must be received in the
designated HUD office by the application deadline date.

2\. **Proof of Timely Submission**. All applicants must submit their
applications via grants.gov
[http://www.grants.gov/applicants/apply_for_grants.jsp](http://www.grants.gov/)
in time for receipt and validation by 11:59:59 p.m. eastern time on the
application deadline date. Because validation can take up to 72 hours,
applicants should submit with ample time for the process to be
completed. Applicants are also advised to submit with sufficient time to
correct any deficiencies that would prevent the acceptance of their
application by Grants.gov. (Refer to the **General Section** for
specific procedures regarding proof of timely submission of
applications.)

# V. Application Review Information.

**A. Criteria.**

1\. **RATING FACTOR: Capacity - 23 Points Total.**

a\. **Capacity of the Development Team --** 5 points. Address this
Rating Factor through your narrative. This rating factor looks at the
capacity of the development team as a whole. The term \"your Team\"
includes PHA staff who will be involved in HOPE VI grant administration,
and any alternative management entity that will manage the
revitalization process and be responsible for meeting construction time
tables and obligating amounts in a timely manner. This includes any
developer partners, program managers, property managers, subcontractors,
consultants, attorneys, financial consultants, and other entities or
individuals identified and proposed to carry out program activities.

\(1\) You will receive up to 5 points if your application demonstrates
that:

\(a\) Your developer or other team members have extensive, recent
(within the last 5 years), and successful experience in the
redevelopment of public housing, including planning, implementing, and
managing physical development, financing, leveraging, and partnership
activities;

\(b\) Your developer or other team members have extensive, recent
(within the last five years), and successful experience in mixed-finance
and mixed-income development, including planning, implementing, and
managing physical development, financing, leveraging, and partnership
activities;

\(c\) You propose development using low-income tax credits, and your
developer or other team members have relevant tax credit experience; and

\(d\) If homeownership, rent-to-own, cooperative ownership, or other
major development components are proposed, your developer or other team
member has relevant, successful experience in development, sales, or
conversion activities.

\(2\) You will receive up to 3 points if your developer or other team
members have some but not extensive experience in the factors described
above.

\(3\) You will receive zero points if your developer or other team
members do not have the experience described above and the application
does not demonstrate that it has the capacity to carry out your
Revitalization plan. You will also receive zero points if your
application does not address this factor to an extent that makes HUD's
rating of this factor possible.

b\. **Development Capacity of Applicant** - 5 points. Address this
Rating Factor through your narrative. This rating factor looks at the
development capacity of ONLY the applicant (not other members of the
development team).

\(1\) You will receive up to 5 points if your application demonstrates
that:

\(a\) Separate from your team, you have extensive, recent (within the
last 5 years), and successful experience in the redevelopment of public
housing, including planning, implementing, and managing physical
development, financing, leveraging, and partnership activities;

\(b\) Separate from your team, you have extensive, recent (within the
last 5 years), and successful experience in mixed-finance and
mixed-income development, including planning, implementing, and managing
physical development, financing, leveraging, and partnership activities;

\(c\) As relevant, you have identified potential gaps in your current
staffing in relation to development activities, and you have plans to
fill such gaps, internally or externally, in a timely manner in order to
implement successfully your Revitalization plan;

\(d\) You have demonstrated that physical development activities will
proceed as promptly as possible following grant award, and you will be
able to begin significant construction within 18 months of the award of
the grant. Applicants must provide a program schedule, developed in
accordance with the timeframes in section III.C. (Timeliness of
Development) and V.A.9.e., in order to demonstrate this criterion.

\(1\) You will receive up to 3 points if you have some but not extensive
experience in the factors described above.

\(2\) You will receive zero points if you do not have the experience
described and the application does not demonstrate that it has the
capacity to carry out your Revitalization plan. You will also receive
zero points if your application does not address this factor to an
extent that makes HUD's rating of this factor possible.

c\. **Capacity of Existing HOPE VI Revitalization grantees.** HUD will
use data from the Quarterly Reports to evaluate this Rating Factor.

\(1\) This section applies only to applicants that have received HOPE VI
Revitalization grants for FYs 1993 to 2003. If an applicant has more
than one HOPE VI Revitalization grant, each will be rated separately,
not averaged, and the highest deduction will be made. Applicants with
HOPE VI Revitalization grants only from FY 2004, 2005 or FY 2006, or no
existing HOPE VI Revitalization grants are not subject to this section.

\(2\) As indicated in the following tables, up to 5 points will be
deducted if a grantee has failed to achieve adequate progress in
relation to expenditure of HOPE VI Revitalization grant funds.
Expenditure data will be taken from LOCCS as of the application deadline
date.

  ----------------------------------- -----------------------------------
  Grants Awarded in FY 1993-1999      

  Percent of HOPE VI Revitalization   Points Deducted
  Grant Funds Expended                

  Less than 100 Percent               5 Points

  Grants Awarded in FY2000            

  Percent of HOPE VI Revitalization   Points Deducted
  Grant Funds Expended                

  90-100 Percent                      0 Points

  80-89 Percent                       1 Point

  75-79 Percent                       2 Points

  70-74 Percent                       3 Points

  65-69 Percent                       4 Points

  Less than 65 Percent                5 Points

  Grants Awarded in FY2001            

  Percent of HOPE VI Revitalization   Points Deducted
  Grant Funds Expended                

  80-100 Percent                      0 Points

  70-79 Percent                       1 Point

  60-69 Percent                       2 Points

  50-59 Percent                       3 Points

  40-49 Percent                       4 Points

  Less than 40 Percent                5 Points

  Grants Awarded in FY2002            

  Percent of HOPE VI Revitalization   Points Deducted
  Grant Funds Expended                

  60-100 Percent                      0 Points

  50-59 Percent                       1 Point

  40-49 Percent                       2 Points

  30-39 Percent                       3 Points

  20-29 Percent                       4 Points

  Less than 20 Percent                5 Points

  Grants Awarded in FY2003            

  Percent of HOPE VI Revitalization   Points Deducted
  Grant Funds Expended                

  25-100 Percent                      0 Points

  20-24 Percent                       1 Point

  15-19 Percent                       2 Points

  10-14 Percent                       3 Points

  5-9 Percent                         4 Points

  Less than 5 Percent                 5 Points
  ----------------------------------- -----------------------------------

d\. **CSS Program Capacity** \-- 3 points.

See sections I. and III. of this NOFA for detailed information on CSS
activities. Address this Rating Factor through your narrative.

\(1\) You will receive 2 points if your application demonstrates one of
the following. If you fail to demonstrate one of the following, you will
receive zero points:

\(a\) If you propose to carry out your CSS plan in-house and you have
recent, quantifiable, successful experience in planning, implementing,
and managing the types of CSS activities proposed in your application,
or

\(b\) If you propose that a member(s) of your team will carry out your
CSS plan; that this procured team member(s) has the qualifications and
demonstrated experience to plan, implement, manage, and coordinate the
types of activities proposed; and that you have the capacity to manage
that team member, including a plan for promptly hiring staff or
procuring this team member.

\(2\) You will receive 1 point if your application demonstrates that:

\(a\) You have an existing HOPE VI grant and your current CSS team will
be adequate to implement a new program, including new or changing
programs, without weakening your existing team.

\(b\) You do not have an existing HOPE VI Revitalization grant and you
demonstrate how your proposed CSS team will be adequate to implement a
new program, including new or changing services, without weakening your
existing staffing structure.

e\. **Property Management Capacity** \-- 3 points. Address this Rating
Factor through your narrative.

\(1\) Property management activities may be the responsibility of the
PHA or another member of the team, which may include a separate entity
that you have procured or will procure to carry out property management
activities. In your application you will describe the number of units
and the condition of the units currently managed by you or your property
manager, your annual budget for those activities, and any awards or
recognition that you or your property manager have received.

\(2\) Past Property Management Experience \-- 2 points.

\(a\) You will receive 2 points if your application demonstrates that
you or your property manager currently have extensive knowledge and
recent (within the last 5 years), successful experience in property
management of the housing types included in your revitalization plan.
This may include market-rate rental housing, public housing, and other
affordable housing, including rental units developed with low-income
housing tax credit assistance. If your Revitalization plan includes
cooperatively owned housing, rent-to-own units, or other types of
managed housing, in order to receive the points for this factor, you
must demonstrate recent, successful experience in the management of such
housing by the relevant member(s) of your team.

\(b\) You will receive one point if your application demonstrates that
you or your property manager has some but not extensive experience of
the kind required for your Revitalization plan.

\(c\) You will receive zero points if your application does not
demonstrate that you or your property manager have the experience to
manage your proposed plan, or if your application does not address this
factor to an extent that makes HUD's rating of this factor possible.

\(3\) Property Management Plan \-- 1 point.

\(a\) You will receive one point if your application describes how you
or your property manager will administer the following elements of a
property management plan:

\(i\) Property maintenance

\(ii\) Rent collection

\(iii\) Public and Indian Housing Information Center (PIC) 50058
reporting

\(iv\) Site-based management experience

\(v\) Tenant grievances

\(vi\) Evictions

\(vii\) Occupancy rate

\(viii\) Unit turnaround

\(ix\) Preventive maintenance

\(x\) Work order completion

\(xi\) Project-based budgeting

\(xii\) Management of homeownership and rent-to-own programs

\(xiii\) Energy Audits

\(xiv\) Utility/Energy Incentives

\(b\) You will receive zero points if your application does not describe
how you or your property manager will administer all the elements of a
property management plan as listed above, or if there is not sufficient
information provided to evaluate this factor.

f\. **PHA or MTW Plan** \-- 1 point.

\(1\) You will receive one point if your application demonstrates that
you have incorporated the revitalization plan described in your
application into your most recent PHA plan or MTW Annual plan (whether
approved by HUD or pending approval). In order to qualify as
"incorporated" under this factor, your PHA or MTW plan must indicate the
intent to pursue a HOPE VI Revitalization grant and the public housing
development for which it is targeted.

\(2\) You will receive zero points if you have not incorporated the
revitalization plan described in your application into your PHA or MTW
plan, or if your application does not address this factor to an extent
that makes HUD's rating of this factor possible.

g\. **[Public Housing Assessment
System](http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr;sid=cca89c2e26beb128f450e112b8d636c0;rgn=div5;view=text;node=24%3A4.0.3.1.2;idno=24;cc=ecfr)
(PHAS)** -- 2 points.

\(1\) If you have been rated as an Overall High Performer for your most
recent PHAS review as of the application deadline date, you will receive
2 points.

\(2\) If you have been rated as an Overall Standard Performer for your
most recent PHAS review as of the application deadline date, you will
receive one point.

\(3\) If you have been rated as a Troubled Performer that is either
Troubled in One Area or Overall Troubled as of the application deadline
date, you will receive zero points.

\(4\) For this rating factor, MTW PHA applicants will be rated on their
compliance with their MTW Agreements.

\(a\) If you are in compliance with your MTW Agreement, you will receive
2 points.

\(b\) If you are not in compliance with your MTW Agreement, you will
receive zero points.

h\. **Regular Maintenance** -- 2 points.

\(1\) Through PHAS, HUD measures the prevalence of items that need to be
fixed (defects) in PHAs\' public housing developments. PHAs receive a
report entitled "Comparison of the Top 20 Observed Defects (Projected)."
HUD conducts analyses related to this report. In these analyses, HUD
separates the regular maintenance projected defects from the total
projected defects (other categories of defects include capital and life
threatening/exigent health and safety), applies them across all units in
the PHA\'s inventory and develops a rate of defects per unit. HUD will
compare the PHA's most recent PHAS-projected number of regular
maintenance defects per unit to the previous projected number of regular
maintenance defects per unit.

\(a\) You will receive 2 points if your projected number of regular
maintenance defects per unit has improved.

\(b\) You will receive zero points if your projected number of regular
maintenance defects per unit have not improved.

\(2\) MTW PHA. For this rating factor, MTW PHA applicants will be rated
on their compliance with their MTW Agreements.

\(a\) If you are in compliance with your MTW Agreement, you will receive
2 points.

\(b\) If you are not in compliance with your MTW Agreement, you will
receive zero points.

i\. **Section 8 Management Assessment Program (SEMAP)** -- 2 points.

\(1\) If you have been rated as a High Performer for your most recent
SEMAP rating as of the application deadline date, you will receive 2
points.

\(2\) If you have been rated as Standard for your most recent SEMAP
rating as of the application deadline date, you will receive one point.

\(3\) If you have been rated as Troubled for your most recent SEMAP
rating as of the application deadline date, you will receive zero
points.

\(4\) For this rating factor, MTW PHA applicants will be rated on their
compliance with their MTW Agreements.

\(a\) If you are in compliance with your MTW Agreement, you will receive
2 points.

\(b\) If you are not in compliance with your MTW Agreement, you will
receive zero points.

2\. **RATING FACTOR: Need \-- 20 Points Total.**

a\. Severe Physical Distress of the Public Housing Development \-- 6
Points

\(1\) HUD will evaluate the extent of the severe physical distress of
the targeted public housing development. If the targeted units have
already been demolished, HUD will evaluate your description of the
extent of the severe physical distress of the site as of the day the
demolition application was approved by HUD. You will receive points for
the following separate subfactors, as indicated.

\(a\) You will receive up to 2 points if your application demonstrates
that there are major deficiencies in the project\'s infrastructure,
including roofs, electrical, plumbing, heating and cooling, mechanical
systems, settlement, and other deficiencies in Housing Quality
Standards.

\(b\) You will receive up to 2 points if your application demonstrates
that there are major deficiencies in the project site, including poor
soil conditions, inadequate drainage, deteriorated laterals and sewers,
and inappropriate topography.

\(c\) You will receive up to 2 points if your application demonstrates
that there are major design deficiencies, including inappropriately high
population density, room, and unit size and configurations; isolation;
indefensible space; significant utility expenses caused by energy
conservation deficiencies that may be documented by an energy audit; and
inaccessibility for persons with disabilities with regard to individual
units (less than 5 percent of the units are accessible), entranceways,
and common areas.

b\. Severe Distress of the Surrounding Neighborhood \-- 3 Points

\(1\) HUD recognizes that public housing developments that meet the
criteria of severe distress (as defined in the Definitions section) have
a negative impact on their surrounding neighborhood. HUD will evaluate
the extent of the distress existing in the surrounding neighborhood, as
of the NOFA publication date, in order to identify those public housing
development neighborhoods in greatest need. HUD will evaluate this by
looking at physical decline of, and disinvestment by, public and private
entities in the surrounding neighborhood; crime statistics; poverty
levels; socio-economic data; trends in property values; evidence of
property deterioration and abandonment; evidence of underutilization of
surrounding properties; indications of neighborhood disinvestment; and
photographs of the surrounding neighborhood. This information must be
provided by the applicant in their narrative and attachments.

\(2\) You will receive 3 points if your application demonstrates that
the surrounding neighborhood has a severe level of distress, based on
the items above. Every item above must be addressed in order to earn
full points.

\(3\) You will receive 2 points if your application demonstrates the
surrounding neighborhood has a moderate level of distress, based on the
items above.

\(4\) You will receive zero points if your application does not
demonstrate that the

surrounding neighborhood is distressed, or if your application does not
address this factor to an extent that makes HUD's rating of this factor
possible.

c\. **Need for HOPE VI Funding \--** 3 Points

\(1\) HUD will evaluate the extent to which you could undertake the
proposed revitalization activities without a HOPE VI grant. Large
amounts of available FY 2002 to 2006 Capital Funds (but not Replacement
Housing Factor funds (RHF)) for purposes of this NOFA indicate that the
revitalization could be carried out without a HOPE VI grant. Available
Capital Funds are defined as non-obligated funds that have not been
earmarked for other purposes in your PHA Plan. Funds earmarked in the
PHA Plan for uses other than the revitalization proposed in this
application will not be considered as available. Based on the above
definition, to determine the amount of available FY 2002 to 2006 Capital
Funds, applicants must indicate in their application the amount in the
narrative of their application. See section IV.B. of this NOFA for
documentation requirements.

\(2\) You will receive 3 points if your available Capital Funds balance
is up to 20 percent of the amount of HOPE VI funds requested.

\(3\) You will receive 2 points if your available balance is 21 to 45
percent of the amount of HOPE VI funds requested.

\(4\) You will receive 1 point if your available balance is 46 to 80
percent of the amount of HOPE VI funds requested.

\(5\) You will receive zero points if your available balance is more
than 80 percent of the amount of HOPE VI funds requested.

d\. **Need for Affordable Accessible Housing in the Community** \-- 3
Points

\(1\) Your application must demonstrate the need for other housing
available and affordable to families receiving tenant-based assistance
under Section 8 (HCV), as described below and must be the most recent
information available at the time of the application deadline.

\(2\) For purposes of this factor, the need for affordable housing in
the community will be measured by HCV program utilization rates or
public housing occupancy rates, whichever of the two reflects the most
need. In figuring the HCV utilization rate, determine and provide the
percentage of HCV units out of the total number authorized or the
percentage of HCV funds expended out of the total amount authorized,
whichever percentage is higher. In figuring the public housing occupancy
rate, provide the percentage of units occupied out of the total in your
federal public housing inventory, excluding the targeted public housing
site. You should base your calculation only on the federal public
housing units you manage. You may not exclude units in your public
housing inventory that are being reserved for relocation needs related
to other HOPE VI Revitalization grant(s); or units in your public
housing inventory that are being held vacant for uses related to a
section 504 voluntary compliance agreement. If you are a non-MTW site,
you must use information consistent with the Section Eight Management
Assessment Program (SEMAP) and/or the Public Housing Assessment System
(PHAS) submissions. If you are an MTW site, and do not report into SEMAP
and/or PHAS, you must demonstrate your utilization and/or occupancy rate
using similar methods and information sources in order to earn points
under this rating factor.

\(3\) You will receive 3 points if your application demonstrates that
the higher of:

\(a\) The utilization rate of your HCV program is 97 percent or higher;
or

\(b\) The occupancy rate of your public housing inventory is 97 percent
or higher.

\(c\) HUD will use the higher of the two rates to determine your score.

> \(4\) You will receive 2 points if your application demonstrates that
> the higher of:

\(a\) The utilization rate of your HCV program is between 95 and 96
percent; or,

\(b\) The occupancy rate of your public housing inventory is between 95
and 96 percent.

\(c\) HUD will use the higher of the two rates to determine your score.

\(5\) You will receive one point if your application demonstrates that
the higher of:

\(a\) The utilization rate of your HCV program is between 93 and 94
percent; or

\(b\) The occupancy rate of your public housing inventory is between 93
and 94 percent.

\(c\) HUD will use the higher of the two rates to determine your score.

\(6\) You will receive zero points if both the utilization rate of your
Housing Choice Voucher program and the occupancy rate of your public
housing inventory are less than 93 percent.

e\. **Need for Affordable Housing in the Nation -- 5 Points Total**

\(1\) HUD will award 5 points to each application for which the targeted
public housing development(s) is located in a Gulf Opportunity (GO) Zone
(either Katrina only, Rita only, or Rita and Katrina). The applicant
must demonstrate this in their narrative, as certified to via the
SF-424. This information will be verified by HUD. For more information
on GO Zones, see
[http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/index.cfm]{.underline}.

\(2\) If the targeted public housing development(s) is not located in a
Gulf Opportunity Zone, the application will earn zero points for this
rating factor.

3\. RATING FACTOR: Leveraging -- 16 Points Total

a\. **Leverage.** Although related to match, leverage is strictly a
rating factor. Leverage consists of firm commitments of funds and other
resources. HUD will rate your application based on the amount of funds
and other resources that will be leveraged by the HOPE VI grant as a
percentage of the amount of HOPE VI funds requested. There are four
types of Leverage: Development and CSS, as described in the "Program
Requirements" in section III.C.3. of this NOFA; Anticipatory and
Collateral, as described in this rating factor. Each resource may be
used for only one leverage category. Any resource listed in more than
one category will be disqualified from all categories. In determining
Leverage ratios, HUD will include as Leverage the match amounts that are
required by section III.C.2. of this NOFA. **Applicants must follow the
Program Requirements for Match and Leverage section of section III.C.3.
of this NOFA when preparing their leverage documentation.** If leverage
sources and amounts are not documented in accordance with sections
III.C.3., they will not be counted toward your leverage amounts.

b\. **Development Leveraging** \-- 7 Points

For each commitment document, HUD will evaluate the strength of
commitment and add the amounts that are acceptably documented. HUD will
then calculate the ratio of the amount of HUD funds requested to the
amount of funds that HUD deems acceptably documented. HUD will round
figures to two decimal points, using standard rounding rules. See
section III.C.3, Program Requirements, and Program Requirements for
Match and Leverage for resource and documentation requirements. These
requirements MUST be followed in order to earn points under the leverage
rating factor.

\(1\) You will receive 7 points if the ratio of the amount of HOPE VI
funds requested for physical development activities (not including CSS,
administration, or relocation) to the dollar value of documented,
committed development resources from other sources is 1:3 or higher.

\(2\) You will receive 6 points if the ratio is between 1:2.50 and
1:2.99

\(3\) You will receive 5 points if the ratio is between 1:2.0 and
1:2.49.

\(4\) You will receive 4 Points if the ratio is between 1:1.50 and
1:1.99.

\(5\) You will receive 3 points if the ratio is between 1:1.0 and
1:1.49.

\(6\) You will receive 2 points if the ratio is between 1:0.50 and
1:0.99.

\(7\) You will receive one point if the ratio is between 1:0.25 and
1:0.49.

\(8\) You will receive zero points if the ratio is less than 1:0.25, or
if your application does not address this factor to an extent that makes
HUD's rating of this factor possible. You will receive 0 Points if your
application does not request HOPE VI funds for CSS purposes.

c\. **CSS Leveraging** -- 5 Points. See section III.C.3., Program
Requirements, Program Requirements for Match and Leverage for resource
and documentation requirements. These requirements MUST be followed in
order to earn points under the leverage rating factor.

\(1\) You will receive 5 points if the ratio of the amount of HOPE VI
funds requested for CSS activities to the dollar value of documented,
committed CSS resources leveraged from other sources is 1:2 or higher.

\(2\) You will receive 4 points if the ratio is between 1:1.75 and
1:1.99.

\(3\) You will receive 3 points if the ratio is between 1:1.5 and
1:1.749.

\(4\) You will receive 2 points if the ratio is between 1:1.25 and
1:1.49.

\(5\) You will receive one point if the ratio is between 1:1 and
1:1.249.

\(6\) You will receive zero points if the ratio is less than 1:1, or if
your application does not address this factor to an extent that makes
HUD's rating of this factor possible. You will receive zero points if
your application does not request HOPE VI funds for CSS purposes.

d\. **Anticipatory Resources Leveraging** \-- 2 Points.

Anticipatory Resources relate to activities that have taken place in the
past and that were conducted in direct relation to a HOPE VI
Revitalization grant. In many cases, PHAs, cities, or other entities may
have carried out revitalization activities (including demolition) in
previous years in anticipation of your receipt of a HOPE VI
Revitalization grant. These expenditures, if documented, may be counted
as leveraged anticipatory resources. They cannot duplicate any other
type of resource and cannot be counted towards match. Public Housing
funds other than HOPE VI Revitalization, e.g., HOPE VI Demolition grant
funds, HOPE VI Neighborhood Networks grant funds, HOPE VI Main Street
grant funds, and Capital Fund Program, may be included, and will be
counted, toward your Anticipatory Resources rating below. For
Anticipatory Resources ratios, "HOPE VI funds requested for physical
development activities" is defined as your total requested amount of
funds minus your requested CSS, administration amounts, and relocation.
HUD will presume that your combined CSS, administration, and relocation
amounts are the total of Budget Line Items 1408 (excluding non-CSS
Management Improvements), 1410, and 1495 on the form HUD-52825-A, "HOPE
VI Budget," that is included in your application. See section III.C.3,
Program Requirements, Program Requirements for Match and Leverage for
resource and documentation requirements. These requirements MUST be
followed as relevant in order to earn points under the leverage rating
factor.

\(1\) You will receive 2 points if the ratio of the amount of HOPE VI
funds requested for physical development activities to the amount of
your documented anticipatory resources is 1:0.1 or higher.

\(2\) You will receive zero points if the ratio of the amount of HOPE VI
funds requested for physical development activities to the amount of
your documented anticipatory resources is less than 1:0.1.

e\. **Collateral Investment Leveraging** \-- 2 Points

Collateral investment includes physical redevelopment activities that
are currently underway, or have yet to begin but are projected to be
completed before October 1, 2010. The expected completion time must be
addressed in your application. In order for a leverage source to be
counted as collateral investment, your application must demonstrate that
the related activities will directly enhance the new HOPE VI community,
but will occur whether or not a Revitalization grant is awarded to you
and the public housing project is revitalized. This includes economic or
other kinds of development activities that would have occurred with or
without the anticipation of HOPE VI funds. These resources cannot
duplicate any other type of resource and cannot be counted as match.
Examples of collateral investments include local schools, libraries,
subways, light rail stations, improved roads, day care facilities, and
medical facilities. See section III.C.3, Program Requirements, and
Program Requirements for Match and Leverage for resource and
documentation requirements.. These requirements MUST be followed as
relevant in order to earn points under the leverage rating factor.

\(1\) You will receive 2 points if the ratio of the amount of HOPE VI
funds requested for physical development activities (not including CSS
or administration) to the amount of your documented collateral resources
is 1:1.0 or higher.

\(2\) You will receive zero points if the ratio of the amount of HOPE VI
funds requested for physical development activities (not including CSS
or administration) to the amount of your documented collateral resources
is less than 1:1.0.

4\. **RATING FACTOR: Resident and Community Involvement -- 3 Points
Total**

a\. HUD will evaluate the nature, extent, and quality of the resident
and community outreach and involvement you have achieved by the time
your application is submitted, as well as your plans for continued and
additional outreach and involvement beyond the minimum threshold
requirements. See section III.C. of this NOFA for Resident and Community
Involvement requirements.

b\. **Resident and Community Involvement** \-- 3 Points

You will receive one point for each of the following criteria met in
your application, which are **[over and above]{.underline}** the
threshold requirements listed in section III.C. of this NOFA.

\(1\) Your application demonstrates that you have communicated regularly
and significantly with affected residents, state and local governments,
private service providers, financing entities, developers, and other
members of the surrounding community about the development of your
revitalization plan by giving residents and community members
information about your actions regarding the revitalization plan and
providing a forum where residents and community members can contribute
recommendations and opinions with regard to the development and
implementation of the revitalization plan.

\(2\) Your application demonstrates your efforts, past and proposed, to
make appropriate HUD communications about HOPE VI available to affected
residents and other interested parties, e.g., a copy of the NOFA,
computer access to the HUD website, etc.

\(3\) Your application demonstrates your plans to provide affected
residents with reasonable training on the general principles of
development, technical assistance, and capacity building so that they
may participate meaningfully in the development and implementation
process.

5\. **RATING FACTOR: Community and Supportive Services -- 12 Points
Total**

a\. **CSS Program Requirements.** See section III.C.3. for CSS program
requirements. In your application, you will describe your CSS plan,
including any plans to implement a CSS Endowment Trust. Each of the
following subfactors will be rated separately.

b\. **Case Management** -- 2 points

\(1\) You will receive 2 points if your application (including the Logic
Model) demonstrates that you are already providing case management
services to the targeted residents by this proposal as of the
application deadline;

\(2\) You will receive one point if your application (including the
Logic Model) demonstrates that you will be able to provide case
management within 30 days from the date of the grant award letter so
that residents who will be relocated have time to participate and
benefit from CSS activities before leaving the site.

\(3\) You will receive zero points if your application (including the
Logic Model) does not demonstrate either of the above criteria, or if
your application does not include sufficient information to be able to
evaluate this factor.

c\. **Needs Assessment and Results --** 3 points

\(1\) You will receive 3 points if your application (including the Logic
Model) demonstrates that a comprehensive resident needs assessment has
been completed as of the application deadline date and that this needs
assessment is the basis for the CSS program proposed in the application.
You must describe and quantify the results of the needs assessment.

\(2\) You will receive up to 2 points if your application (including the
Logic Model) demonstrates that a resident needs assessment has been
completed as of the application deadline date, but does not show that
the needs assessment was comprehensive and clearly linked to the
proposed CSS program, and/or does not describe and quantify the results
of the needs assessment.

\(3\) You will receive zero points if your application (including the
Logic Model) does not demonstrate any of the above criteria, or if your
application does not include sufficient information to be able to
evaluate this factor.

d\. **Transition to Housing Self-Sufficiency** -- 5 points.

You will receive up to 5 points if you address the methods you will use
to assist public housing residents in their efforts to transition to
other affordable and market-rate housing, i.e., to gain "housing
self-sufficiency." Please see section III(C)(3)(l) for information on
transition to housing self-sufficiency.

\(1\) You will receive up to 5 points if your application (including the
Logic Model) demonstrates that your CSS program includes and addresses
all three of the below items. Your CSS Program:

\(a\) Provides measurable outcomes for this endeavor;

\(b\) Describes in detail how your other CSS and FSS activities relate
to the transition of public housing residents to housing
self-sufficiency; and

\(c\) Specifically addresses the grassroots, community-based and
faith-based organizations, etc. that will join you in the endeavor.

\(2\) You will receive up to 2 points if your application (including the
Logic Model) demonstrates that your CSS program includes and addresses
at least two of the above three items (a) through (c) above.

\(3\) You will receive zero points if your application (including the
Logic Model) demonstrates that your CSS Program includes and addresses
less than two of the above items in (a) through (c) above.

e\. **Quality and Results Orientation in CSS Program** -- 2 points

\(1\) You will receive 2 points if you have proposed in your application
(including the Logic Model) a comprehensive, high quality,
results-oriented CSS program that is based on a case management system
and that provides services/programs to meet the needs of all residents
groups (e.g., youth, adult, elderly, disabled) targeted by the
application. These services/programs may be provided directly or by
partners. They must be designed to assist residents affected by the
revitalization in transforming their lives and becoming self-sufficient,
as relevant.

\(2\) You will receive up to 1 point if you have proposed in your
application (including the Logic Model) a CSS program that meets some
but not all of the criteria in the paragraph above;

(1) You will receive zero points if your application (including the
    Logic Model) does not demonstrate any of the above criteria, or if
    your application does not include sufficient information to be able
    to evaluate this factor.

6\. **RATING FACTOR: Relocation -- 5 Points Total**

See sections III.C. of this NOFA for Relocation and Relocation Plan
requirements. For all applicants, whether you have completed, or have
yet to complete, relocation of all residents of the targeted project,
your HOPE VI Relocation Plan must include the three goals set out in
section 24 of the 1937 Act, as described in sections a.(1), a.(2), and
a.(3) below.

a\. You will receive up to 5 points for this Factor if you describe
thoroughly how your Relocation Plan:

\(1\) Includes a description of specific activities that have minimized,
or will minimize, permanent displacement of residents of the units that
will be rehabilitated or demolished in the targeted public housing site,
provided that those residents wish to remain in or return to the
revitalized community;

\(2\) Includes a description of specific activities that will give
existing residents priority over other families for future occupancy of
public housing units in completed HOPE VI Revitalization Development
projects, or, for existing residents that can afford to live in
non-public housing HOPE VI units, priority for future occupancy of those
planned units; and

\(3\) Includes a description of specific CSS activities that will be
provided to residents prior to any relocation;

b\. You will receive up to 3 points for this Factor if your Relocation
Plan complies with some but not all of the criteria above.

c\. You will receive zero points for this Factor if: (1) Your Relocation
Plan does not comply with any of the requirements above; or (2) Your
application does not provide sufficient information to evaluate this
rating factor.

7\. **RATING FACTOR: Fair Housing and Equal Opportunity -- 6 Points
Total**

a\. **FHEO Disability Issues** \-- 3 Points Total

\(1\) Accessibility \-- 2 Points.

\(a\) Over and above the accessibility requirements listed in section
III.C.3. of this NOFA, you will receive 2 points if your application
demonstrates that you have a [detailed]{.underline} plan to:

\(i\) Provide accessibility in homeownership units (e.g., setting a goal
of constructing a percentage of the homeownership units as accessible
units for persons with mobility impairments; promising to work with
prospective disabled buyers on modifications to be carried out at a
buyer's request; exploring design alternatives that result in townhouses
that are accessible to persons with disabilities);

\(ii\) Provide accessible units for all eligible populations ranging
from one-bedroom units for non-elderly single persons with disabilities
through units in all bedroom sizes to be provided;

\(iii\) Provide for accessibility modifications, where necessary, to
HCV-assisted units of residents who relocate from the targeted project
to private or other public housing due to revitalization activities. The
Department has determined that the costs of such modifications are
eligible costs under the HOPE VI program;

\(iv\) Where playgrounds are planned, propose ways to make them
accessible to children with disabilities, over and above statutory and
regulatory requirements; and

\(v\) Where possible, design units with accessible front entrances.

\(b\) You will receive one point if your application demonstrates that
you have a detailed plan to implement from one to four of the
accessibility priorities stated above, explaining why and how you will
implement the identified accessibility priorities.

\(c\) You will receive zero points if your application does not
demonstrate that you have a detailed plan that meets the specifications
above, or if your application does not address this factor to an extent
that makes HUD's rating of this factor possible.

\(2\) Universal Design \-- 1 Point

\(a\) You will receive one point if your application demonstrates that
you have a specific plan to meet:

\(i\) The adaptability standards adopted by HUD at 24 CFR 8.3 that apply
to those units not otherwise covered by the accessibility requirements.
Adaptability is the ability of certain elements of a dwelling unit, such
as kitchen counters, sinks, and grab bars, to be added to, raised,
lowered, or otherwise altered, to accommodate the needs of persons with
or without disabilities, or to accommodate the needs of persons with
different types or degrees of disability. For example, the wiring for
visible emergency alarms may be installed so that a unit can be made
ready for occupancy by a hearing-impaired person (For information on
adaptability, see
[www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf](http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf));
and

\(ii\) The visitability standards recommended by HUD that apply to units
not otherwise covered by the accessibility requirements. Visitability
standards allow a person with mobility impairments access into the home,
but do not require that all features be made accessible. A visitable
home also serves persons without disabilities, such as a mother pushing
a stroller or a person delivering a large appliance. See
www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf for
information on visitability. The two standards of visitability are:

\(A\) At least one entrance at grade (no steps), approached by a
sidewalk; and

\(B\) The entrance door and all interior passage doors are at least 2
feet, 10 inches wide, allowing 32 inches of clear passage space.

\(b\) You will receive zero points if your application does not
demonstrate that you have specific plans to implement both (i) and (ii)
as specified above, or if your application does not address this factor
to an extent that makes HUD's rating of this factor possible.

b\. **Fair Housing and Affirmative Marketing** -- 1 Point Total.

\(1\) Fair Housing - one point

\(a\) You will receive one Point if your application demonstrates that:

\(i\) You have made and will make specific efforts to attract families
from all segments of the population on a nondiscriminatory basis and
with a broad spectrum of incomes to the revitalized site through
intensive affirmative marketing efforts and how these efforts contribute
to the deconcentration of low-income neighborhoods;

\(ii\) You have made and will make specific efforts to target your
marketing and outreach activities to those persons and groups least
likely to know about these housing opportunities, in order to promote
housing choice and opportunity throughout your jurisdiction and
contribute to the deconcentration of both minority and low-income
neighborhoods. In your application, you must describe how your outreach
and marketing efforts will reach out to persons of different races and
ethnic groups, families with or without children, persons with
disabilities and able-bodied persons, and the elderly; and

\(iii\) The specific steps you plan to take through your proposed
activities to affirmatively further fair housing. These steps can
include, but are not limited to:

\(A\) Addressing impediments to fair housing choice relating to your
operations;

\(B\) Working with local jurisdictions to implement their initiatives to
affirmatively further fair housing;

\(C\) Implementing, in accordance with Departmental guidance, relocation
plans that result in increased housing choice and opportunity for
residents affected by HOPE VI revitalization activities funded under
this NOFA;

\(D\) Implementing admissions and occupancy policies that are
nondiscriminatory and help reduce racial and national origin
concentrations; and

\(E\) Initiating other steps to remedy discrimination in housing and
promote fair housing rights and fair housing choice.

\(b\) You will receive zero points if you do not address all of the
above issues, or if your application does not address this factor to an
extent that makes HUD's rating of this factor possible.

c\. **Economic Opportunities for Low- and Very Low-Income Persons
(Section 3)** \-- 2 Points

\(1\) HOPE VI grantees must comply with section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities
for Low- and Very-Low-Income Persons in Connection with Assisted
Projects) and its implementing regulations at 24 CFR part 135.
Information about section 3 can be found at HUD\'s section 3 website at
<http://www.hud.gov/offices/fheo/section3/section3.cfm>.

\(2\) You will receive 2 points if your application demonstrates that
you have a feasible plan to implement section 3 that not only meets the
minimum requirements described in section (1) above but also exceeds
those requirements. Your plan must include your goals by age group,
types of jobs, and other opportunities to be provided, and plans for
tracking and evaluation. Section 3 firms must be in place quickly so
that residents are trained in time to take advantage of employment
opportunities such as jobs and other contractual opportunities in the
pre-development, demolition, and construction phases of the
revitalization. Your section 3 plan must demonstrate that you will, to
the greatest extent feasible, direct training, employment, and other
economic opportunities to:

\(a\) Low- and very low-income persons, particularly those who are
recipients of government assistance for housing; and

\(b\) Business concerns which provide economic opportunities to low- and
very low-income persons.

\(3\) You will receive zero points if your plan to implement section 3
does not meet the standards listed in section (1) and (2) above, or if
your application does not address this factor to an extent that makes
HUD's rating of this factor possible.

8\. **RATING FACTOR: Well-Functioning Communities -- 8 Points Total**

a\. **Affordable Housing** -- Up to 3 Points

\(1\) Housing Definitions. For the purposes of this rating section,
housing units are defined differently than in PIH housing programs, as
follows:

\(a\) "Project-based affordable housing units" are defined as on-site
and off-site housing units where there are affordable-housing use
restrictions on the unit, e.g., public housing, project-based HCV
(Section 8) units, LIHTC units, HOME units, affordable homeownership
units, etc.

\(b\) "Public housing" is defined as rental units that will be subject
to the ACC.

\(2\) Unit Mix and Need for Affordable Housing.

\(a\) Your proposed unit mix should sustain or create more project-based
affordable housing units that will be available to persons eligible for
public housing in markets where the plan shows there is demand for the
maintenance or creation of such units. While it is up to you to
determine the unit mix that is appropriate for your site, it is
essential that this unit mix include a sufficient amount of public
housing rental units and other project-based affordable units. To the
extent that the local market shows there is a demand for it, applicants
are encouraged to create additional project-based affordable housing
units to be made available for persons eligible for public housing.

\(b\) For purposes of this factor, HUD will determine whether you need
project-based affordable housing by using your HCV program utilization
rate or public housing occupancy rate, whichever of the two reflects the
least need. In figuring the HCV utilization rate, determine and provide
the percentage of HCV units out of the total number authorized or the
percentage of HCV funds expended out of the total amount authorized,
whichever percentage is higher. In figuring the public housing occupancy
rate, provide the percentage of units occupied out of the total in your
federal public housing inventory, excluding the units in the targeted
project. You should base your calculation only on the federal public
housing units you manage. You may not exclude units in your public
housing inventory that are being reserved for relocation needs related
to other HOPE VI Revitalization grant(s); or units in your public
housing inventory that are being held vacant for uses related to a
section 504 voluntary compliance agreement. If you are a non-MTW site,
you must use information consistent with the Section Eight Management
Assessment Program (SEMAP) and/or the Public Housing Assessment System
(PHAS) submissions. If you are an MTW site, and do not report into SEMAP
and/or PHAS, you must demonstrate your utilization and/or occupancy rate
using similar methods and information sources in order to earn points
under this rating factor.

\(3\) Scoring when there will be [No Need]{.underline} for More
Affordable Housing after the Targeted Project is Demolished -- One
Point.

\(a\) You will receive one Point for this factor if your application
demonstrates that either:

\(i\) The utilization rate of your HCV program is less than 95 percent;
or

\(ii\) The occupancy rate of your public housing inventory is less than
95 percent.

\(iii\) If either (i) or (ii) above is less than 95 percent, the other
percentage will be disregarded.

\(4\) Scoring when there [Will be Need]{.underline} for More Affordable
Housing after the Targeted Project is Demolished -- up to 3 Points.

\(a\) For this factor, HUD considers you in need of project-based
affordable housing if both:

\(i\) The utilization rate of your HCV program is 95 percent or more;
and

\(ii\) The occupancy rate of your public housing inventory is 95 percent
or more.

\(iii\) If either (i) or (ii) above are less than 95 percent, you do not
need affordable housing. You qualify for (3) above, not this section
(4).

\(b\) The percentages below are defined as the number of planned
project-based affordable units divided by the number of public housing
units that the targeted project contains or contained;

\(c\) You will receive 3 points if your application demonstrates that
the number of project-based affordable units in your plan is 125 percent
or more of the number of public housing units that the targeted project
contains or contained;

\(d\) You will receive 2 points if your application demonstrates that
the number of project-based affordable units in your plan is 110 to 124
percent of the number of public housing units that the targeted project
contains or contained;

\(e\) You will receive one point if your application demonstrates that
the number of project-based affordable units in your plan is 100 to 109
percent of the number of public housing units that the targeted project
contains or contained.

\(f\) You will receive zero points if your application demonstrates that
the number of project-based affordable units in your plan is less than
the number of public housing units that the targeted project contains or
contained or if your application does not address this factor to an
extent that makes HUD's rating of this factor possible.

b\. **Off-Site Housing --** 1 Point

\(1\) Factor Background

\(a\) Although not required, you are encouraged to consider development
of replacement housing in locations other than the original severely
distressed site (i.e., off-site housing). Locating off-site housing in
neighborhoods with low levels of poverty and low concentrations of
minorities will provide maximized housing alternatives for low-income
residents who are currently on-site and advance the goal of creating
desegregated, mixed-income communities. The effect on-site will be to
assist in the deconcentration of low-income residents and increase the
number of replacement units.

\(b\) Although it is acknowledged that off-site housing is not
appropriate in some communities, if you do not propose to include
off-site housing in your Revitalization plan, you are not eligible to
receive this point.

\(c\) If you propose an off-site housing component in your application,
you must be sure to include that component when you discuss other
components (e.g., on-site housing, homeownership housing, etc.).
Throughout your application, your unit counts and other numerical data
must take into account the off-site component.

\(2\) Scoring. You will receive one point if you propose to develop an
off-site housing component(s) and document that: (a) you have site
control of the property(ies) in accordance with Section III.C.2; (b) the
site(s) does not suffer from any known or suspected environmental
hazards or have any open issues or uncertainties related to 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; and (c) the site(s) meets site
and neighborhood standards, in accordance with Section III.C.3 of this
NOFA.

**c. Homeownership Housing** -- 4 Points

The Department has placed the highest priority on increasing
homeownership opportunities for low- and moderate-income persons,
persons with disabilities, the elderly, minorities, and families where
English may be a second language. Too often these individuals and
families are shut out of the housing market through no fault of their
own. HUD encourages applicants to work aggressively to open up the realm
of homeownership.

\(1\) Your application will receive 4 points if it demonstrates that
your revitalization plan includes homeownership and that you have a
feasible, well-defined plan for homeownership. In order to demonstrate
this, your application should include descriptions of the following:

\(a\) The purpose of your homeownership program;

\(b\) The number of units planned and their location(s);

\(c\) A description and justification of the families that will be
targeted for the program;

\(d\) The proposed source of your construction and permanent financing
of the units; and

\(e\) A description of the homeownership counseling you or a
HUD-approved housing counseling agency will provide to prospective
families, including such subjects as the homeownership process, housing
in non-impacted areas, credit repair, budgeting, home maintenance, home
financing, and mortgage lending.

\(2\) You will receive 2 points for this factor if you address in your
description one to four of the items listed under (1) above.

\(3\) You will receive zero points for this factor if you do not propose
to include homeownership units in your Revitalization plan, if your
proposed program is not feasible and well defined, or if your
application does not address this factor to an extent that makes HUD's
rating of this factor possible.

9\. **RATING FACTOR: Soundness of Approach -- 30 Points Total**

a\. **Quality and Consistency of the Application** -- 2 Points

\(1\) The information and strategies described in your application must
be well organized, coherent, and internally consistent. Numbers and
statistics in your narratives must be consistent with the information
provided in the attachments. Also, the physical and CSS aspects of the
application must be compatible and coordinated with each other. Pay
particular attention to the data provided for:

\(a\) Types and numbers of units;

\(b\) Budgets;

\(c\) Other financial estimates, including sources and uses; and

\(d\) Numbers of residents affected.

\(2\) You will receive 2 points if your application demonstrates a high
level of quality and consistency;

\(3\) You will receive one point if your application has a high level of
quality, but contains minor internal discrepancies;

\(4\) You will receive zero points if your application fails to
demonstrate an acceptable level of quality and consistency;

b\. **Appropriateness and Feasibility of the Plan** -- 5 Points

\(1\) You will receive 5 points if your application demonstrates the
following about your revitalization plan:

\(a\) It is appropriate and suitable, in the context of the community
and other revitalization options, in accordance with the Appropriateness
of Proposal threshold in section III.C. of this NOFA;

\(b\) Fulfills the needs that your application demonstrated for Rating
Factor 2;

> \(c\) Is marketable, in the context of local conditions;

\(d\) If you include market-rate housing, economic development, or
retail structures in your revitalization plan, you must provide a signed
letter from an independent, third party, credentialed market research
firm, or professional that describes its assessment of the demand and
associated pricing structure for the proposed residential units,
economic development, or retail structures, based on the market and
economic conditions of the project area.

\(e\) Is financially feasible, as demonstrated in the financial
structure(s) proposed in the application;

\(f\) Does not propose to use public housing funds for non-public
housing uses;

\(g\) If extraordinary site costs have been identified, a certification
of these costs has been provided in the application;

\(h\) Describes the cost controls that will be used in implementing the
project, in accordance with the Funding Restrictions and Program
Requirements sections of this NOFA;

\(i\) Includes a completed TDC/Grant Limitations Worksheet in the
application and follows the Funding Restrictions and Program
Requirements sections of this NOFA.

\(2\) You will receive 3 points if your application demonstrates some
but not all of the criteria above.

\(3\) You will receive zero points if your application does not
demonstrate the criteria above or your application does not provide
sufficient information to evaluate this factor.

c\. **Neighborhood Impact and Sustainability of the Plan** -- 5 Points

\(1\) You will receive up to 5 points if your application demonstrates
your revitalization plan, including plans for retail or office space, or
other economic development activities, as appropriate, will:

\(a\) Result in a revitalized site that will enhance the neighborhood in
which the project is located;

\(b\) Spur outside investment into the surrounding community;

\(c\) Enhance economic opportunities for residents; and

\(d\) Remove an impediment to continued redevelopment or start a
community-wide revitalization process.

\(2\) You will receive up to 3 points if your application demonstrates
that your revitalization plan will have only a moderate effect on
activities in the surrounding community, as described in (1)(a) through
(d) above.

\(3\) You will receive zero Points if your application does not
demonstrate that your revitalization plan will have an effect on the
surrounding community, as described in (a) through (d) above, or if your
application does not address this factor to an extent that makes HUD's
rating of this factor possible.

d\. **Project Readiness** -- 7 Points

HUD places top priority on projects that will be able to commence
immediately after grant award. You will receive the following points for
each applicable subfactor certified in your application.

\(1\) You will receive 2 points if the targeted severely distressed
public housing site is completely vacant, i.e., all residents have been
relocated.

\(2\) You will receive 2 points if the targeted severely distressed
public housing site is cleared, i.e., all buildings are demolished, or
your revitalization plan only includes rehabilitation and no demolition
of public housing units**.**

\(3\) You will receive one point if a Master Development Agreement (MDA)
has been developed and is ready to be submitted to HUD. However, in
cases where the PHA (not an affiliate/subsidiary/instrumentality) will
act as its own developer for all components of the revitalization plan,
an MDA is not needed and the one point will be awarded automatically.

\(4\) You will receive one point if your preliminary site design is
complete.

\(5\) You will receive one point if you have held five or more public
planning sessions leading to resident acceptance of the plan.

e\. **Program Schedule** -- 5 points. You will receive 5 points if the
program schedule provided in your application incorporates all the
timelines/milestones required in Section III.C.3.v., "Timeliness of
Development Activity," paragraphs (1)-(6). If your schedule does not
incorporate all the timelines/milestones, you will earn zero points.

f\. **Design** -- 3 Points

\(1\) You will receive up to 3 points if your proposed site plan, new
dwelling units, and buildings demonstrate that:

\(a\) You have proposed a site plan that is compact,
pedestrian-friendly, with an interconnected network of streets and
public open space;

\(b\) Your proposed housing, community facilities, and economic
development facilities are thoroughly integrated into the community
through the use of local architectural tradition, building scale,
grouping of buildings, and design elements; and

\(c\) Your plan proposes appropriate enhancements of the natural
environment that are appropriate to the site's soils and microclimate.

\(2\) You will receive one point if your proposed site plan, new
dwelling units, and buildings demonstrate design that adequately
addresses one or two, but not all three of the elements in (1) above.

\(3\) You will receive zero points if your proposed design is
perfunctory or otherwise does not address the elements in (1) above. You
will also receive zero points if your application does not address this
factor to an extent that makes HUD's rating of this factor possible.

g\. **Energy Star** -- 1 Point

\(1\) Promotion of Energy Star compliance is a HOPE VI Revitalization
program requirement. See section III.C.3. of this NOFA.

\(2\) You will receive one point if your application demonstrates that
you will:

\(a\) Use Energy Star-labeled products;

\(b\) Promote Energy Star design of replacement units; and

\(c\) Include Energy Star in homeownership counseling.

\(3\) You will receive zero points if your application does not
demonstrate that you will perform (2)(a) through (c) above.

h\. **Evaluation** -- 2 Points

You are encouraged to work with your local university(ies), other
institutions of learning, foundations, or others to evaluate the
performance and impact of their HOPE VI revitalization plan over the
life of the grant. The proposed methodology must measure success against
goals you set at the outset of your revitalization activities.
Evaluators must establish baselines and provide ongoing interim reports
that will allow you to make changes as necessary as your project
proceeds. Where possible, you are encouraged to form partnerships with
Historically Black Colleges and Universities (HBCUs); Hispanic-Serving
Institutions (HSIs); Community Outreach Partnership Centers (COPCs); the
Alaskan Native/Native Hawaiian Institution Assisting Communities Program
(as appropriate); and others in HUD\'s University Partnerships Program.

\(1\) You will receive 2 points if your application includes a letter(s)
from an institution(s) of higher learning, foundations, or other
organization that specializes in research and evaluation that provides a
commitment to work with you to evaluate your program and describes its
proposed approach to carry out the evaluation if your application is
selected for funding. The letter must provide the extent of the
commitment and involvement, the extent to which you and the local
institution of higher learning will cooperate, and the proposed
approach. The commitment letter must address all of the following areas
for evaluation in order to earn full points:

\(a\) The impact of your HOPE VI effort on the lives of the residents;

\(b\) The nature and extent of economic development generated in the
community;

\(c\) The effect of the revitalization effort on the surrounding
community, including spillover revitalization activities, property
values, etc.; and

\(d\) Your success at integrating the physical and CSS aspects of your
strategy.

\(2\) You will receive zero points if your application does not include
a commitment letter that addresses each of the areas above
(paragraphs(1) (a)-(d)).

10\. **RATING FACTOR:** **Incentive Criteria on Regulatory Barrier
Removal -- 2 Points Total**

a\. **Description.**

Applicants must follow the guidance provided in the General Section
under section V.B. concerning the Removal of Regulatory Barriers to
Affordable Housing in order to earn points under this rating factor.
Information from the General Section V.B. is provided below, in part. In
FY 2007, HUD continues to make removal of regulatory barriers a policy
priority. Through the Department's America's Affordable Communities
Initiative, HUD is seeking input into how it can work more effectively
with the public and private sectors to remove regulatory barriers to
affordable housing. Increasing the affordability of rental and
homeownership housing continues to be a high priority of the Department.
Addressing these barriers to housing affordability is a necessary
component of any overall national housing policy. Under this policy
priority, higher rating points are available to (1) governmental
applicants that are able to demonstrate successful efforts in removing
regulatory barriers to affordable housing and (2) nongovernmental
applicants that are associated with jurisdictions that have undertaken
successful efforts in removing barriers. To obtain the policy priority
points for efforts to successfully remove regulatory barriers,
applicants must complete form HUD-27300, "Questionnaire for HUD's
Initiative on Removal of Regulatory Barriers." Copies of HUD's notices
published on this issue can be found on HUD's website at
[www.hud.gov/offices/adm/grants/fundsavail.cfm]{.underline}. Form
HUD-27300 is included in the electronic application for this program
available at
[http://www.grants.gov/applicants/apply_for_grants.jsp](../%20http://www.grants.gov/applicants/apply_for_grants.jsp).

b\. **Scoring.**

\(1\) Local jurisdictions and counties/parishes with land use and
building regulatory authority applying for funding, as well as PHAs,
nonprofit organizations, and other qualified applicants applying for
funds for projects located in these jurisdictions, are invited to answer
the 20 questions under Part A.

\(2\) State agencies or departments applying for funding, as well as
PHAs, nonprofit organizations, and other qualified applicants applying
for funds for projects located in unincorporated areas or areas not
otherwise covered in Part A are invited to answer the 15 questions under
Part B.

\(3\) Applicants that will be providing services in multiple
jurisdictions may choose to address the questions in either Part A or
Part B for that jurisdiction in which the preponderance of services will
be performed if an award is made.

\(4\) In no case will an applicant receive more than 2 points for
barrier removal activities under this policy priority.

\(5\) Under Part A, an applicant that scores at least five in column 2
will receive one point in the NOFA evaluation. An applicant that scores
10 or more in column 2 will receive 2 points in the NOFA evaluation.

\(6\) Under Part B, an applicant that scores at least four in Column 2
will receive one point in the NOFA evaluation. An applicant that scores
eight or greater will receive a total of 2 points in the respective
evaluation.

\(7\) A limited number of questions on form HUD-27300 expressly request
the applicant to provide brief documentation with its response. Other
questions require that, for each [affirmative]{.underline} statement
made, the applicant supply a reference, Internet address, or brief
statement indicating where the back-up information may be found and a
point of contact, including a telephone number or email address. To
obtain an understanding of this policy priority and how it can affect
their score, applicants are encouraged to read HUD's three notices,
which are available at
[http://www.hud.gov/initiatives/affordablecom.cfm]{.underline}.
**Applicants that do not provide the Internet addresses, references, or
documentation will not get the policy priority points.**

**B. Reviews and Selection Process.**

HUD\'s selection process is designed to ensure that grants are awarded
to eligible PHAs that submit the most meritorious applications. HUD will
consider the information you submit by the application deadline date.
After the application deadline date, HUD may not, consistent with its
regulations in 24 CFR part 4, subpart B, consider any unsolicited
information that you or any third party may want to provide.

**1. Application Screening**.

a\. HUD will screen each application to determine if:

\(1\) It meets the threshold criteria listed in section III.C. of this
NOFA; and

\(2\) It is deficient, i.e., contains any Technical Deficiencies.

b\. See section III.C. of this NOFA for case-by-case information
regarding thresholds and technical deficiencies. See section IV.B. of
this NOFA for documentation requirements that will support threshold
compliance and will avoid technical deficiencies.

c\. **Corrections to Deficient Applications -- 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, except that clarifications or corrections of technical
deficiencies in accordance with the information provided by HUD must be
submitted within 14 calendar days of the date of receipt of the HUD
notification. (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.)

d\. **Applications that will not be rated or ranked.** HUD will not rate
or rank applications that are deficient at the end of the cure period
stated in section V.B. of the General Section or that have not met the
thresholds described in section III.C. of this NOFA. Such applications
will not be eligible for funding.

2\. **Preliminary Rating and Ranking.**

a\. **Rating.**

\(1\) HUD staff will preliminarily rate each eligible application,
SOLELY on the basis of the rating factors described in section V.A. of
this NOFA.

\(2\) When rating applications, HUD reviewers will not use any
information included in any HOPE VI application submitted in a prior
year.

\(3\) HUD will assign a preliminary score for each rating factor and a
preliminary total score for each eligible application.

\(4\) The maximum number of points for each application is 125.

b\. **Ranking.**

\(1\) After preliminary review, applications will be ranked in score
order.

3\. Final Panel Review.

a\. A Final Review Panel made up of HUD staff will:

\(1\) Review the Preliminary Rating and Ranking documentation to:

\(a\) Ensure that any inconsistencies between preliminary reviewers have
been identified and rectified; and

\(b\) Ensure that the Preliminary Rating and Ranking documentation
accurately reflects the contents of the application.

\(2\) Assign a final score to each application; and

\(3\) Recommend for selection **the most highly rated applications**,
subject to the amount of available funding, in accordance with the
allocation of funds described in section II of this NOFA.

4\. HUD reserves the right to make reductions in funding for any
ineligible items included in an applicant's proposed budget.

5\. In accordance with the FY 2007 HOPE VI appropriation, HUD may not
use HOPE VI funds to grant competitive advantage in awards to settle
litigation or pay judgments.

6\. **Tie Scores.** If two or more applications have the same score and
there are insufficient funds to select all of them, HUD will select for
funding the application(s) with the highest score for the Soundness of
Approach Rating Factor. If a tie remains, HUD will select for funding
the application(s) with the highest score for the Capacity Rating
Factor. HUD will select further tied applications with the highest score
for the Need Rating Factor.

7\. **Remaining Funds.**

a\. HUD reserves the right to reallocate remaining funds from this NOFA
to other eligible activities under section 24 of the 1937 Act.

\(1\) If the total amount of funds requested by all applications found
eligible for funding under section V.B. of this NOFA is less than the
amount of funds available from this NOFA, all eligible applications will
be funded and those funds in excess of the total requested amount will
be considered remaining funds.

\(2\) If the total amount of funds requested by all applications found
eligible for funding under this NOFA is greater than the amount of funds
available from this NOFA, eligible applications will be funded until the
amount of non-awarded funds is less than the amount required to feasibly
fund the next eligible application. In this case, the funds that have
not been awarded will be considered remaining funds.

8\. The following sub-sections of section V. of the General Section are
hereby incorporated by reference:

a\. HUD's Strategic Goals;

b\. Policy Priorities;

c\. Threshold Compliance;

d\. Corrections to Deficient Applications;

e\. Rating; and

f\. Ranking.

## VI. Award Administration Information.

**A. Award Notices.**

1\. **Initial Announcement.** The HUD Reform Act prohibits HUD from
notifying you as to whether or not you have been selected to receive a
grant until it has announced all grant recipients. If your application
has been found to be ineligible or if it did not receive enough points
to be funded, you will not be notified until the successful applicants
have been notified. HUD will provide written notification to all
applicants, whether or not they have been selected for funding.

2\. **Award Letter.** The notice of award letter is signed by the
Assistant Secretary for Public and Indian Housing (grants officer) and
will be delivered by fax and the U.S. Postal Service.

3\. **Revitalization Grant Agreement.** When you are selected to receive
a Revitalization grant, HUD will send you a HOPE VI Revitalization grant
agreement, which constitutes the contract between you and HUD to carry
out and fund public housing revitalization activities. Both you and HUD
will sign the cover sheet of the grant agreement, form HUD-1044. It is
effective on the date of HUD\'s signature, which is the second
signature. The grant agreement differs from year to year. Past
Revitalization grant agreements can be found on the HOPE VI website at
[www.hud.gov/hopevi]{.underline}.

4\. **Applicant Debriefing.** Upon request, HUD will provide an
applicant a copy of the total score received by their application and
the score received for each rating factor.

5\. **General Section References.** The following sub-section of section
VI.A. of the General Section is hereby incorporated by reference:
Adjustments to Funding.

**B.** **Administrative and National Policy Requirements.**

1\. **Program Requirements.** See the Program Requirements in section
III.C.3. of this NOFA for information on HOPE VI program requirements
that grantees must follow.

2\. Conflict of Interest in Grant Activities

a\. [Prohibition]{.underline}. In addition to the conflict-of-interest
requirements in 24 CFR part 85, no person who is an employee, agent,
consultant, officer, or elected or appointed official of a grantee and
who exercises or has exercised any functions or responsibilities with
respect to activities assisted under a HOPE VI grant, or who is in a
position to participate in a decision-making process or gain inside
information with regard to such activities, may obtain a financial
interest or benefit from the activity, or have an interest in any
contract, subcontract, or agreement with respect thereto, or the
proceeds thereunder, either for himself or herself or for those with
whom he or she has family or business ties, during his or her tenure or
for one year thereafter.

b\. [HUD-Approved Exception]{.underline}.

\(1\) Standard. HUD may grant an exception to the prohibition above on a
case-by-case basis when it determines that such an exception will serve
to further the purposes of HOPE VI and its effective and efficient
administration.

\(2\) Procedure. HUD will consider granting an exception only after the
grantee has provided a disclosure of the nature of the conflict,
accompanied by:

\(a\) An assurance that there has been public disclosure of the
conflict;

\(b\) A description of how the public disclosure was made; and

\(c\) An opinion of the grantee's attorney that the interest for which
the exception is sought does not violate state or local laws.

\(d\) Consideration of Relevant Factors. In determining whether to grant
a requested exception as discussed, HUD will consider the cumulative
effect of the following factors, where applicable:

\(i\) Whether the exception would provide a significant cost benefit or
an essential degree of expertise to the Revitalization plan and
demolition activities that would otherwise not be available;

> \(ii\) Whether an opportunity was provided for open competitive
> bidding or negotiation;

\(iii\) Whether the person affected is a member of a group or class
intended to be the beneficiaries of the Revitalization plan and
Demolition plan, and the exception will permit such person to receive
generally the same interests or benefits as are being made available or
provided to the group or class;

\(iv\) Whether the affected person has withdrawn from his or her
functions or responsibilities, or from the decision-making process, with
respect to the specific activity in question;

\(v\) Whether the interest or benefit was present before the affected
person was in a position as described in section (iii) above;

\(vi\) Whether undue hardship will result either to the grantee or the
person affected when weighed against the public interest served by
avoiding the prohibited conflict; and

\(vii\) Any other relevant considerations.

3\. **Salary Limitation for Consultants.** Unless specifically
authorized by law, FY 2007 funds may not be used to pay or to provide
reimbursement for payment of the salary of a consultant, whether
retained by the federal government or the grantee, at a rate more than
the equivalent of the high pay for members of the Senior Executive
Service (SES). For information on the Executive Pay Band levels, please
see the Office Personnel Management (OPM) Web site band paid for level
IV of the Executive Schedule, at
<http://www.opm.gov/oca/06tables/html/es.asp>. .

4\. **Flood Insurance.** In accordance with the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4001-4128), your application may not
propose to provide financial assistance for acquisition or construction
(including rehabilitation) of properties located in an area identified
by the Federal Emergency Management Agency (FEMA) as having special
flood hazards, unless:

a\. The community in which the area is situated is participating in the
National Flood Insurance program (see 44 CFR parts 59 through 79), or
less than one year has passed since FEMA notification regarding such
hazards; and

b\. Where the community is participating in the National Flood Insurance
Program, flood insurance is obtained as a condition of execution of a
grant agreement.

5\. **Coastal Barrier Resources Act.** In accordance with the Coastal
Barrier Resources Act (16 U.S.C. 3501), your application may not target
properties in the Coastal Barrier Resources System.

6\. **Policy Requirements.**

a\. **OMB Circulars and Administrative Requirements**. You must comply
with the following administrative requirements related to the
expenditure of federal funds. OMB circulars can be found at
[www.whitehouse.gov/omb/circulars/index.html]{.underline}. Copies of the
OMB circulars may be obtained from EOP Publications, Room 2200, New
Executive Office Building, Washington, DC 20503; telephone (202)
395-7332 (this is not a toll-free number). The Code of Federal
Regulations can be found at
[www.gpoaccess.gov/cfr/index.html](http://www.gpoaccess.gov/cfr/index.html).

\(1\) Administrative requirements applicable to PHAs are:

\(a\) 24 CFR part 85 (Administrative Requirements for Grants and
Cooperative Agreements to State, Local, and Federally Recognized Indian
Tribal Governments), as modified by 24 CFR 941 or successor part,
subpart F, relating to the procurement of partners in mixed-finance
developments.

\(b\) OMB Circular A-87 (Cost Principles for State, Local, and Indian
Tribal Governments); and

\(c\) 24 CFR 85.26 (audit requirements).

\(2\) Administrative requirements applicable to nonprofit organizations
are:

\(a\) 24 CFR part 84 (Grants and Agreements with Institutions of Higher
Education, Hospitals, and other Nonprofit Organizations);

\(b\) OMB Circular A-122 (Cost Principles for Nonprofit Organizations);
and

\(c\) 24 CFR 84.26 (audit requirements).

\(3\) Administrative requirements applicable to for profit organizations
are:

\(a\) 24 CFR part 84 (Grants and Agreements with Institutions of Higher
Education, Hospitals, and other Nonprofit Organizations);

\(b\) 48 CFR part 31 (contract cost principles and procedures); and

\(c\) 24 CFR 84.26 (audit requirements).

## C. Reporting.

1\. **Quarterly Report.**

a\. If you are selected for funding, you must submit a quarterly report
to HUD.

\(1\) HUD will provide training and technical assistance on the filing
and submitting of quarterly reports.

\(2\) Filing of quarterly reports is mandatory for all grantees, and
failure to do so within the required timeframe will result in suspension
of grant funds until the report is filed and approved by HUD.

\(3\) Grantees will be held to the milestones that are reported on the
Quarterly Report Administrative and Compliance Checkpoints Report, as
approved by HUD.

\(4\) Grantees must also report obligations and expenditures in LOCCS,
or its successor system, on a quarterly basis.

2\. **Logic Model Reporting.**

a\. The reporting shall include submission of a completed Logic Model
indicating results achieved against the proposed output goal(s) and
proposed outcome(s), which you stated in your approved application and
agreed upon with HUD. The submission of the Logic Model and required
information should be in accord with the reporting timeframes as
identified in your grant agreement.

b\. The goals and outcomes that you include in the Logic Model should
reflect your major activities and accomplishments under the grant. For
example, you would include unit construction, demolition, etc., from the
"bricks-and-mortar" portion of the grant. As another example, for the
CSS portion of the grant, you may include the number of jobs created or
the number of families that have reached self-sufficiency, but you would
not include information on specific job training and self-sufficiency
courses.

c\. As a condition of the receipt of financial assistance under this
NOFA, all successful applicants will be required to cooperate with all
HUD staff or contractors performing HUD-funded research and evaluation
studies.

3\. **Final Report.**

a\. The grantees shall submit a final report, which will include a
financial report and a narrative evaluating overall performance against
its HOPE VI Revitalization plan. Grantees shall use quantifiable data to
measure performance against goals and objectives outlined in its
application, as well as against the responses to the Management
Questions contained in the Logic Model. The financial report shall
contain a summary of all expenditures made from the beginning of the
grant agreement to the end of the grant agreement and shall include any
unexpended balances.

b\. Racial and Ethnic Data. HUD requires that funded recipients collect
racial and ethnic beneficiary data. It has adopted the OMB's Standards
for the Collection of Racial and Ethnic Data. In view of these
requirements, you should use form HUD-27061, Racial and Ethnic Data
Reporting Form (instructions for its use), included in the electronic
application for this program available at
[http://www.grants.gov/applicants/apply_for_grants.jsp](http://www.hudclips.org/sub/nonhud/cgi/pdfforms/27300.pdf),
a comparable program form, or a comparable electronic data system for
this purpose.

c\. The final narrative and financial report shall be due to HUD 90 days
after either the full expenditure of funds, or when the grant term
expires, whichever comes first.

**VII. Agency Contacts.**

## A. Technical Assistance.

1\. Before the application deadline date, HUD staff will be available to
provide you with general guidance and technical assistance. However, HUD
staff is not permitted to assist in preparing your application. If you
have a question or need a clarification, you may call or send an email
message to the Office of Public Housing Investments, Attention: Leigh
van Rij, at (202) 402-5788 (this is not a toll-free number),
<leigh_e._van_rij@hud.gov>. The mailing address is: Office of Public
Housing Investments, Department of Housing and Urban Development, 451
Seventh Street, SW, Room 4130, Washington, DC 20410-5000; telephone
numbers (202) 401-8812; fax (202) 4012370 (these are not toll-free
numbers). Persons with hearing or speech impairments may access these
telephone numbers through a text telephone (TTY) by calling the
toll-free Federal Information Relay Service at (800) 877--8339.

2\. **Frequently Asked Questions and General HOPE VI Information.**
Before the application deadline date, frequently asked questions (FAQs)
on the NOFA will be posted to HUD's grants website at
<http://www.hud.gov/offices/adm/grants/otherhud.cfm>.

3\. You may obtain general information about HUD's HOPE VI programs from
HUD's HOPE VI website at
<http://www.hud.gov/offices/pih/programs/ph/hope6/>.

### **B. Technical Corrections to the NOFA.** 

### 1. Technical corrections to this NOFA will be posted on the Grants.gov website. 

### 2. Any technical corrections will also be published in the Federal Register. 

### 3. You are responsible for monitoring these sites during the application preparation period.

# VIII. Other Information.

**A. Waivers.** Any HOPE VI-funded activities at public housing projects
are subject to statutory requirements applicable to public housing
projects under the 1937 Act, other statutes, and the annual
contributions contract (ACC). Within such restrictions, HUD seeks
innovative solutions to the long-standing problems of severely
distressed public housing projects. You may request, for the revitalized
project, a waiver of HUD regulations, subject to statutory limitations
and a finding of good cause under 24 CFR 5.110, if the waiver will
permit you to undertake measures that enhance the long-term viability of
a project revitalized under this program. HUD will assess each request
to determine whether good cause is established to grant the waiver.

# B. Environmental Impact. A Finding of No Significant Impact with respect to the environment has been made for this notice, in accordance with HUD regulations at 24 CFR part 50 that implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is available for public inspection between 8 a.m. and 5 p.m. in the Office of General Counsel, Regulations Division, Department of Housing and Urban Development, 451 Seventh Street, SW, Room 10276, Washington, DC 20410-0500.

**C. General Section References.** The following sub-sections of section
VIII. of the General Section are hereby incorporated by reference:

1\. Executive Order 13132, Federalism;

2\. Public Access, Documentation, and Disclosure;

3\. Section 103 of the HUD Reform Act;

**D. Paperwork Reduction Act Statement.** The information collection
requirements contained in this document have been approved by the OMB
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and
assigned OMB Control Number 2577-0208. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information, unless the
collection displays a currently valid OMB control number. The public
reporting burden for the collection of information is estimated to
average 190 hours per annum per respondent for the application and grant
administration. This includes the time for collecting, reviewing, and
reporting the data for the application, quarterly reports, and final
report. The information will be used for grantee selection and
monitoring the administration of funds. Response to this request for
information is required in order to receive the benefits to be derived.