**Billing Code 4210-33-P**

**DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT**

**\[Docket No. FR-4962-N-01 and**

**Docket No. FR-4962-C-02\]**

**Notice of Funding Availability for Fiscal Year (FY) 2004 HOPE VI Main
Street Grants**

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

**ACTION:** Notice of Funding Availability (NOFA).

**OVERVIEW INFORMATION:**

A.  **Federal Agency Name.** Department of Housing and Urban
    Development, Office of Public and Indian Housing.

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D.  **Funding Opportunity Title.** HOPE VI Main Street Grants.

E.  **Announcement Type.** Initial announcement.

F.  **Funding Opportunity Number.** The [Federal]{.underline}
    [Register]{.underline} number for this NOFA is: FR‑4962‑N‑01. The
    Office of Management and Budget (OMB) paperwork approval number for
    this program is 2577-0208.

G.  **Catalog of Federal Domestic Assistance (CFDA) Number.** The CFDA
    number for this NOFA is 14.866, "Demolition and Revitalization of
    Severely Distressed Affordable Housing (HOPE VI)."

H.  **Dates.**

    1.  **Application Submission Date.** The application submission date
        and time are **September 2, 2005** **at 5:15 p.m. Eastern
        time**. Applications will be considered late and ineligible to
        receive funding if not received on or before the application due
        date, regardless of the postmark date.

    2.  **Estimated Grant Award Date.** The estimated award date will be
        September 30, 2005.

I.  **Application Submission Requirements.** Applications for this NOFA
    will NOT be accepted electronically through www.grants.gov. Only
    paper applications will be accepted. See "Other Submission
    Requirements," in Section IV.F. of this NOFA.

    **FULL TEXT OF ANNOUNCEMENT**

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I.  **Funding Opportunity Description**

    A.  **Available Funds.** This NOFA announces the availability of
        approximately \$5 million in Fiscal Year (FY) 2004 funds to
        produce affordable housing in HUD-defined Main Street
        rejuvenations.

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    D.  **Purpose of the Program.** The purpose of the HOPE VI Main
        Street program is to provide grants to small communities to
        assist in the rehabilitation and new construction of affordable
        housing in conjunction with an existing program to revitalize an
        historic or traditional central business district or "Main
        Street Area." The objectives of the program are to:

        1.  Redevelop Main Street Areas;

        2.  Preserve historic or traditional architecture or design
            features in Main Street Areas;

        3.  Enhance economic development efforts in Main Street Areas;
            and

        4.  Provide affordable housing in Main Street Areas.

    E.  **Statutory Authority.**

        1.  The program authority for the HOPE VI Main Street program is
            Section 24 of the United States Housing Act of 1937 (42
            U.S.C. 1437v), as amended by Section 535 of the Quality
            Housing and Work Responsibility Act of 1998 (Pub. L.
            105-276, 112 Stat. 2461, approved October 21, 1998), as
            amended, and the HOPE VI Program Reauthorization and Small
            Community Mainstreet Rejuvenation and Housing Act of 2003
            (Pub. L. 108-186, 117 Stat. 2685, approved December 16,
            2003).

        2.  The funding authority for the HOPE VI Main Street program is
            provided by the Consolidated Appropriations Act, 2004 (Pub.
            L 108-199, approved January 23, 2004), under Division G,
            Title II, Public and Indian Housing.

        3.  The HOPE VI Program Reauthorization and Small Community
            Mainstreet Rejuvenation and Housing Act of 2003 states that,
            of the amount appropriated for the overall HOPE VI program
            for any fiscal year, the Secretary shall provide up to five
            percent for use only for the Main Street initiative. For FY
            2004, the Secretary has set aside approximately \$5 million
            for Main Street activities authorized in Section 24(n) of
            the Act, which provides for grant amounts that shall be used
            by smaller communities only to provide assistance to carry
            out eligible affordable housing activities.

    F.  **Definition of Terms**

        1.  **Affordable Housing** means rental or homeownership
            dwelling units that:

            a.  Are made available for initial occupancy to low-income
                families, with a subset of units made available to very
                low- and extremely low-income families; and

            b.  Are subject to the same rules regarding occupant
                contribution toward rent or purchase, and terms of
                rental or purchase, as are public housing units.

        2.  **Applicant Team ("Team")** means the group of entities that
            will develop the Project. The Team includes the unit of
            local government that submits the application and, where
            applicable, the procured developer, the procured property
            manager, architects, construction contractors, attorneys,
            partners that comprise the owner entity, and other parties
            that may be involved in the development and management of
            the Project.

        3.  **Community and Supportive Services ("CSS")** means services
            to residents of the Project that 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 post-secondary education, assistance in the
                attainment of certificates of high school equivalency,
                and courses in English as a Second Language, as needed;

            c.  Job readiness and job retention activities, which
                frequently are key to securing private sector
                commitments to the provision of 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 a program which 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.  Life skills training on topics such as parenting,
                consumer education, and family budgeting;

            g.  Creation and operation of credit unions to serve
                residents, including capitalization and technical
                assistance to foster new credit unions on-site and to
                encourage existing community credit unions to expand
                their coverage to include on-site coverage;

            h.  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;

            i.  Coordinating with health care services providers or
                providing on-site space for a health clinic, doctors, a
                wellness center, dentists, etc., that will primarily
                serve the affordable housing residents. HOPE VI funds
                may not be used to provide direct medical care to
                residents;

            j.  Substance/alcohol abuse treatment and counseling;

            k.  Activities that address domestic violence treatment and
                prevention;

            l.  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;

            m.  Transportation, as necessary, to enable all family
                members to participate in available CSS activities
                and/or to commute to their places of employment;

            n.  Entrepreneurship training and mentoring, with the goal
                of establishing resident-owned businesses; and

**o.** Coordinating with fair housing groups to educate the Main Street
Affordable Housing Project's targeted population on its fair housing
rights.

4.  **Firmly Committed** means that the amount of Match resources and
    their dedication to HOPE VI Main Street activities must be explicit,
    in writing, and signed by a person authorized to make the
    commitment.

5.  **General Section** means the **Notice of HUD's Fiscal Year 2005
    Notice of Funding Availability Policy Requirements and General
    Section to the SuperNOFA for HUD's Discretionary Programs; Notice**,
    Docket No. FR-4950-N-01, published in the [Federal]{.underline}
    [Register]{.underline} on March 21, 2005.

6.  **Homeownership Unit** means a housing unit that the Local
    Government makes available for purchase by low-income families for
    use as their principal residence;

7.  **Initial Occupancy Period** means the period of time that a rental
    unit is occupied by the initial low-income resident or the period of
    time that a homeownership unit is owned by the initial third-party,
    low-income purchaser.

8.  **Jurisdiction** means the physical area under the supervision of
    the Local Government.

9.  **Local Government** means any city, county/parish, town, township,
    parish, village, or other general purpose political subdivision of a
    state; Guam, the Northern Mariana Islands, the Virgin Islands,
    American Samoa, the District of Columbia and the Trust Territory of
    the Pacific Islands, or a general purpose political subdivision
    thereof; a combination of such political subdivisions that is
    recognized by the Secretary.

10. **Low-Income** means a family (resident) with an income equal to or
    less than 80 percent of median income for the local area, adjusted
    for family size, in accordance with Section 3(b)(2) of the United
    States Housing Act of 1937, as amended. HUD may establish a level
    higher or lower than 80 percent because of prevailing construction
    costs or unusually high or low family incomes in the area. HUD
    prescribed income limits are stated at
    [http://www.huduser.org/datasets/il/IL05/Section8_IncomeLimits_2005.doc](http://www.huduser.org/datasets/il/IL04/Section8_IncomeLimits_2004.doc).
    Local area is defined as the Primary Metropolitan Statistical
    Area/Metropolitan Statistical Area (PMSA/MSA) or county/parish, as
    prescribed by HUD, in which the low-income family resides.

11. **Main Street Area means** an area specifically designated by the
    applicant, within the jurisdiction of the applicant that is or was;

    a.  Traditionally the central business district and center for
        socio-economic interaction;

    b.  Characterized by a cohesive core of historic and/or older
        commercial and mixed-use buildings, often interspersed with
        civic, religious, and residential buildings, which represent the
        community's architectural heritage;

    c.  Typically arranged along a main street with intersecting side
        streets and public space; and

    d.  Pedestrian-oriented.

12. **Main Street Affordable Housing Project ("Project")** is defined in
    Section III.C.2.b. of this NOFA, "Program Requirements."

13. **Main Street Rejuvenation Master Plan ("Master Plan")** is a
    document, or group of documents, that:

    a.  Serves to guide the rejuvenation of a Main Street Area;

    b.  Is actively administered and implemented by the applicant, an
        agency of the local government, or a developer entity recognized
        by the applicant;

    c.  Addresses major components such as design, organization,
        promotion, and economic impact;

    d.  Has broad community support;

    e.  Involves investment by the public and private sectors;

    f.  Has a strong preservation element for historic or traditional
        architecture;

    g.  Shows long-term planning and commitment; and

    h.  Complies with the minimum requirements stated in the Program
        Requirements in Section III.C.2. of this NOFA.

14. **Match** is cash or in-kind donations that:

    a.  Total at least five percent of the requested HOPE VI Main Street
        grant amount; and

    b.  Are from government or private-sector sources other than HOPE VI
        funding.

15. **Owner entity** is the legal entity that holds title to the real
    property that contains any affordable housing units developed
    through this NOFA.

16. **Person with disabilities** means a person who:

    a.  Has a condition defined as a disability in Section 223 of the
        Social Security Act;

    b.  Has a developmental disability as defined in Section 102 of the
        Developmental Disabilities Assistance Bill of Rights Act; or

    c.  Is determined to have a physical, mental, or emotional
        impairment which:

        1.  Is expected to be of long-continued and indefinite duration;

#### Substantially impedes his or her ability to live independently; and 

#### Is of such a nature that such ability could be improved by more suitable housing conditions.

d.  The term \"person with disabilities\" may include persons who have
    acquired immunodeficiency syndrome (AIDS) or any conditions arising
    from the etiologic agent for AIDS. In addition, no individual shall
    be considered a person with disabilities, for purposes of
    eligibility for low‑income housing, solely on the basis of any drug
    or alcohol dependence.

e.  The definition provided above for persons with disabilities is the
    proper definition for determining program qualifications. However,
    the definition of a person with disabilities contained in Section
    504 of the Rehabilitation Act of 1973 and its implementing
    regulations must be used for purposes of reasonable accommodations.

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17. **Program** means the HOPE VI Main Street Program.

18. **Recognized Developer** is:

    a.  A procured developer that is a legal entity and that has a
        contract or "Developer Agreement" with a Local Government to
        finance, rehabilitate and/or construct housing units, and to
        provide Community and Supportive Services (if required), for a
        HOPE VI Main Street grantee; or

    b.  The Local Government applicant itself.

19. **Unit of Local Government:** See "Local Government" under this
    section.

20. **Very Low-Income Family** means a family (resident) with an income
    equal to or less than 50 percent of median income for the local
    area, adjusted for family size, in accordance with Section 3(b)(2)
    of the United States Housing Act of 1937, as amended. HUD may
    establish a level higher or lower than 50 percent because of
    prevailing construction costs or unusually high or low family
    incomes in the area. HUD prescribed income limits are stated at
    [http://www.huduser.org/datasets/il/IL05/Section8_IncomeLimits_2005.doc](http://www.huduser.org/datasets/il/IL04/Section8_IncomeLimits_2004.doc).
    Local area is defined as the PMSA/MSA or nonmetropolitan
    county/parish, as prescribed by HUD, in which the low-income family
    resides.

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G.  **Eligible Uses of Grant Funds**

    1.  Main Street grant funds may be expended on the following
        activities:

        a.  New construction and rehabilitation of Main Street-related
            affordable rental and homeownership housing;

        b.  Architectural and Engineering activities, surveys, permits,
            and other planning and implementation costs related to the
            construction and rehabilitation of Main Street-related
            affordable housing;

        c.  Tax credit syndication;

        d.  Funding of moving expenses for low-income residents
            displaced as a result of construction or rehabilitation of
            the Project, in accordance with the Uniform Relocation
            Assistance and Real Property Acquisition Policies Act of
            1970 (URA);

        e.  Economic development activities that promote the economic
            self-sufficiency of low-income residents of the Project;

        f.  Management improvements necessary for the proper development
            and management of Main Street-related affordable housing,
            including, but not limited to:

            1.  Staff training (including travel) related to affordable
                housing development and management and public housing
                property management;

            2.  Staff time and materials or contractor services to
                revise or develop:

                a.  Procedure manuals;

                b.  Accounting systems, excluding accounting services;

                c.  Lease documents;

                d.  Resident screening procedures; and

                e.  Data processing systems.

        g.  **Leveraging non-HOPE VI funds and in-kind services;**

        h.  **Community and Supportive Services.** See Funding
            Restrictions in Section IV.E. of this NOFA.

H.  **General Section Reference.** The subsection entitled "Funding
    Opportunity Description" in Section I. of the General Section is
    hereby incorporated by reference.

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II. **Award Information**

    D.  **Available Funds.** A total of \$5 million is available for
        funding, which must be obligated on or before September 30,
        2005.

    E.  **Number of Awards.** This NOFA will result in approximately 10
        to 15 awards.

    F.  **Range of Amounts of Each Award.** Each applicant may request
        up to \$500,000.

    G.  **Start Date, Period of Performance.** The term of the grants
        that result from this NOFA will start on the date that the grant
        award document is signed by HUD and will continue for 30 months.

    H.  **Type of Instrument.** Grant Agreement.

    I.  **Supplementation.** Grants resulting from this NOFA do not
        supplement other HOPE VI grants.

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III. **Eligibility Information**

     D.  **Eligible Applicants.** Eligible applicants include, and are
         limited to, Local Governments, as defined in Section I.D. of
         this NOFA and Section 102 of the Housing and Community
         Development Act of 1974 (42 U.S.C. 5302). The Local Government
         must:

         1.  Have a Main Street rejuvenation effort within its
             jurisdiction;

         2.  Have a population of 50,000 or less; and

         3.  Not be served by a public housing agency that administers
             more than 100 public housing units. For this NOFA, HUD does
             not consider agencies of the State government to be public
             housing agencies.

     E.  **Cost Sharing or Match.**

         1.  **Match.** HUD is required by the Quality Housing and Work
             Responsibility Act (42 U.S.C. 1437v(c)(1)(A)) to include
             the requirement for matching funds for all HOPE VI-related
             grants. Applicants must provide matching funds in the
             amount of five percent of the requested grant amount from
             sources other than HUD HOPE VI funds. Match sources may
             include other federal sources, any state or local
             government sources, any private contributions, the value of
             any donated material or building, the value of any lease on
             a building, the value of the time and services contributed
             by volunteers, and the value of any other in-kind services
             provided. The match may include funds already spent on, or
             funds committed to, the project, provided that they were or
             shall be used only for carrying out eligible affordable
             housing activities.

             a.  Match donations must be *firmly committed*. "Firmly
                 committed" means that the amount of match resources and
                 their dedication to Main Street-related affordable
                 housing activities must be explicit, in writing, and
                 signed by a person authorized to make the commitment.
                 The commitment must be in place at the time of award.
                 See Section IV.F. of this NOFA for detailed
                 instructions on the procedures related to the
                 submission of third-party documents.

             b.  The applicant may propose to use the applicant's own
                 funds to meet the match requirement.

             c.  The applicant's staff time is not an eligible cash or
                 in-kind match.

             d.  See Section IV.B. of this NOFA for the requirements for
                 documentation of match resources.

     F.  **Other.**

         1.  **Thresholds.**

             a.  **Main Street Area.** The applicant must have within
                 its jurisdiction a Main Street Area. See Section I.D.
                 of this NOFA for the definition of a Main Street Area.
                 If the applicant's jurisdiction does not have a Main
                 Street Area, the application will not be eligible for
                 funding through this NOFA.

             b.  **Master Plan.** A Main Street Rejuvenation Master Plan
                 for the Main Street Area must have been in existence
                 for three years prior to the application submission
                 date, and, if one exists, be included in the
                 applicant's Consolidated Plan. See Section I.D. of this
                 NOFA for the definition of a Main Street Rejuvenation
                 Master Plan. If the applicant's Main Street
                 Rejuvenation Master Plan has not been in existence for
                 three years prior to the application submission date,
                 the application will not be eligible for funding
                 through this NOFA.

             c.  **Main Street Affordable Housing Project ("Project").**
                 The targeted affordable housing project must conform to
                 this NOFA's requirements for a Main Street Affordable
                 Housing Project, as defined in Section III.C.2.b. of
                 this NOFA. If the targeted affordable housing project
                 does not conform to this NOFA's requirements of a
                 project, the application will not be eligible for
                 funding through this NOFA.

             d.  **Inclusion of Affordable Housing.** The project must
                 have been included in the applicant's master plan on or
                 before the date of publication of this NOFA. If the
                 project was not included in the applicant's master plan
                 on or before the date of publication of this NOFA, the
                 application will not be eligible for funding through
                 this NOFA.

             e.  **Zoning.** Zoning for residential housing, or
                 mixed-use zoning that includes residential housing,
                 must be in place on all project sites on or before the
                 application submission date. If zoning for residential
                 housing, or mixed-use zoning that includes residential
                 housing, is not in place on all project sites on or
                 before the application submission date, the application
                 will not be eligible for funding through this NOFA.

             f.  **Site Control.** The applicant, or recognized
                 developer entity of the project, must have site control
                 of all properties where affordable housing will be
                 developed on or before the application submission date.
                 If the applicant, or recognized developer entity of the
                 Main Street project, does not have site control of all
                 properties where affordable housing will be developed
                 on or before the application submission date, the
                 application will not be eligible for funding through
                 this NOFA.

             g.  **Program Schedule.** The applicant must include a
                 program schedule, developed in accordance with Section
                 VI.B.4.c. of this NOFA, "Reasonable Timeframe," as part
                 of the application. If such a program schedule is not
                 included in the application, the application will not
                 be eligible for funding through this NOFA.

             h.  **Main Street Area Leverage.** The applicant must
                 provide leverage funds and/or in-kind services in
                 excess of 100 percent of the requested grant amount
                 from sources other than HUD HOPE VI funds. Note that
                 this threshold is for leverage that is related to the
                 entire Main Street Area effort. Leverage that is
                 specifically related to the Main Street Affordable
                 Housing Project is measured in Section V.A.4. of this
                 NOFA.

                 1.  Types of resources that may be counted include:

                     a.  Private mortgage-secured loans and other debt;

                         i.  The application must include each loan's
                             expected term of maturity;

                         ii. Where there is both a construction loan and
                             a permanent take-out loan, only the value
                             of the permanent loan amount will be
                             counted; and

                         iii. If the applicant has obtained a
                              construction loan but not a permanent
                              loan, the value of the construction loan
                              will be counted;

                     b.  Insured loans;

                     c.  Housing trust funds;

                     d.  Net sales proceeds from a homeownership project
                         that exceed the amount of HOPE VI funds used to
                         develop the homeownership unit;

                     e.  Tax Increment Funding (TIF);

                     f.  Tax Exempt Bonds;

                     g.  Low-Income Housing Tax Credits (LIHTC);

                     h.  Historic Preservation Tax Credits;

                     i.  Other Public Housing Funds. Capital Fund
                         Program funds may be included provided that
                         public housing exists in the Main Street Area.
                         HOPE VI funds may not be counted as leverage;

                     j.  Other Federal Funds. Other federal sources may
                         include non-public housing funds provided by
                         HUD;

                     k.  Land Sale Proceeds. 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;

                     l.  Donations of Land. Donations of land may be
                         counted as leverage only if the donating entity
                         owns the land to be donated;

                     m.  In-kind services, such as those pertaining to:

                         i.  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, such as by providing
                             assistance with escrow accounts and
                             counseling, including fair housing
                             counseling;

                         ii. Coordinating with health care services
                             providers or providing on-site space for a
                             health clinic, doctors, a wellness center,
                             dentists, etc., that will primarily serve
                             the affordable housing residents. HOPE VI
                             funds may not be used to provide direct
                             medical care to residents;

                         iii. Substance/alcohol abuse treatment and
                              counseling;

                         iv. Transportation, as necessary, to enable all
                             family members to participate in available
                             CSS activities and/or to commute to their
                             places of employment;

                         v.  Entrepreneurship training and mentoring,
                             with the goal of establishing
                             resident-owned businesses;

                         vi. Materials;

                         vii. A building;

                         viii. A lease on a building;

                         ix. Other infrastructure;

                         x.  Time and services contributed by
                             volunteers;

                         xi. Supplies; and

                         xii. Other CSS and FSS resources.

                 2.  Note that wages projected to be paid to residents
                     through jobs, or projected benefits (e.g., health,
                     insurance, and retirement benefits) related to
                     those projected jobs that are provided by CSS
                     Partners, will not be counted as leverage.

                 3.  Leverage funds may include cash or in-kind
                     services. However, in-kind services of staff time
                     of either the Local Government applicant or the
                     recognized developer entity will not be counted by
                     HUD as leverage.

                 4.  Leverage funds may include funds already spent, or
                     funds and/or in-kind services *firmly committed* to
                     the Main Street Area as a whole, not just the
                     targeted affordable housing project related to this
                     NOFA.

                 5.  Leverage funds/in-kind services may include match
                     funds.

                 6.  If the applicant provides leverage funds/in-kind
                     services of an amount less than 100 percent of the
                     requested grant amount, the application will not be
                     eligible for funding through this NOFA.

             i.  **One Main Street Area.** The applicant may only
                 include one Main Street Area in the application.
                 However, the applicant's project may consist of several
                 scattered sites within that one Main Street Area. If
                 the applicant includes more than one Main Street Area
                 in the application, the application will not be
                 eligible for funding through this NOFA.

             j.  **One application.** The applicant may submit only one
                 HOPE VI Main Street application as described in this
                 NOFA. If more than one application is submitted by a
                 single applicant, all applications will be disqualified
                 and no application will be eligible for funding.

             k.  **Appropriateness of the Application.** The application
                 demonstrates the appropriateness of the proposal in the
                 context of the local housing market relative to other
                 alternatives.

             l.  The following sub-sections of Section III of the
                 General Section are hereby incorporated by reference.
                 The applicant must comply with each of the incorporated
                 threshold requirements in order to be eligible for
                 funding, including:

                 1.  Ineligible Applicants;

                 2.  Dun and Bradstreet Data Universal Numbering System
                     (DUNS) Number Requirement;

                 3.  Compliance with Fair Housing and Civil Rights Laws;

                 4.  Conducting Business In Accordance with Core Values
                     and Ethical Standards;

                 5.  Delinquent Federal Debts;

                 6.  Pre-Award Accounting System Surveys;

                 7.  Name Check Review;

                 8.  False Statements;

                 9.  Prohibition Against Lobbying Activities; and

                 10. Debarment and Suspension.

         2.  **Program Requirements.**

             a.  **Main Street Project Requirements.** The applicant
                 must have, within the applicant's jurisdiction, a
                 HUD-recognized Main Street project that includes
                 affordable housing. In order to be recognized by HUD as
                 a Main Street project, the rejuvenation effort must:

                 1.  Be located within a definable Main Street Area (See
                     Section I.D. of this NOFA);

                 2.  Have as its purpose the rejuvenation or
                     redevelopment of a historic or traditional
                     commercial area;

                 3.  Involve investment or other participation by the
                     local government and locally located private
                     entities;

                 4.  Comply with historic preservation requirements as
                     directed by the cognizant State Historic
                     Preservation Officer ("SHPO") or, if such historic
                     preservation requirements are not applicable, to
                     preserve significant traditional, architectural,
                     and design features in the project structures or
                     Main Street area; and

                 5.  Have been described in a Main Street Rejuvenation
                     Master Plan that was acknowledged by the applicant
                     at least three years prior to the application
                     submission date.

             b.  **Main Street Affordable Housing Project.** HUD refers
                 to the rejuvenation or development of affordable
                 housing in the Main Street Area as a "Main Street
                 Affordable Housing Project" ("project"). The project
                 must:

                 1.  Include the construction or substantial
                     rehabilitation of affordable housing units. The
                     number of units that will be developed through this
                     NOFA must equal the number of units stated in form
                     HUD-52861, "HOPE VI Main Street Application Data
                     Sheet," on the "Unit Mix and Accessibility Summary,
                     Post-Revitalization" page.

                 2.  Involve the rehabilitation or development of
                     affordable housing;

                 3.  Be located within the boundaries of the applicant's
                     Main Street Area;

                 4.  Be located within the jurisdiction of the
                     applicant; and

                 5.  Have been included as part of a Main Street
                     Rejuvenation Master Plan before the publication
                     date of this NOFA.

             c.  **Master Plan.** The Main Street Rejuvenation Master
                 Plan must, at a minimum:

                 1.  Have been prepared, in whole or in part, by an
                     architect, land planner, or qualified planning
                     professional for the applicant or the developer
                     entity recognized by the applicant;

                 2.  Describe the proposed Main Street project
                     redevelopment strategies;

                 3.  Include a map indicating the Main Street Area;

                 4.  Include a narrative that refers to the map and
                     describes the various planned redevelopment
                     actions;

                 5.  Include the development of affordable housing; and

                 6.  Include a list of properties where affordable
                     housing will be rehabilitated or developed. The
                     list of properties must have been included in the
                     master plan on or before the application submission
                     date.

             d.  **Applicable Initial Resident Rental Contribution and
                 Protections.** The initial resident of a project unit
                 is subject to the same rules regarding occupant
                 contribution toward rent or purchase, and terms of
                 rental or purchase, as residents in HOPE VI
                 Revitalization development public housing units.

             e.  **Requirements During the Initial Occupancy Period for
                 Rentals.**

                 1.  Initial residents of affordable rental units and
                     initial resident purchasers of affordable
                     homeownership units must be subject to the same
                     rules regarding occupant contribution toward rent
                     or purchase, and terms of rental or purchase, as
                     residents of public housing units in a HOPE VI
                     development.

                 2.  The project owner entity is not required to develop
                     most mandatory PHA documentation, e.g., the PHA
                     Plans as described in 24 CFR Part 903, etc.
                     However, before the project is initially rented,
                     the ownership entity must develop a written
                     statement of its rent determination and resident
                     grievance policies.

                 3.  Public housing rental and grievance requirements
                     that are contained in 24 CFR 903.7(d) and 24 CFR
                     903.7(f) may be used as examples for (1) and (2)
                     above.

             f.  **Requirements for Initial Homeownership Sale.** The
                 initial sale of an affordable homeownership unit must
                 take place in accordance with Section 24 of the U.S.
                 Housing Act of 1937 (1937 Act), as amended.

             g.  **Use Restrictions.** Project units must be maintained
                 as affordable housing for only the period of initial
                 occupancy or the initial resident's ownership. Use
                 restrictions beyond the initial occupancy period may or
                 may not be applied to the unit at the discretion of the
                 applicant.

             h.   **Leveraging Other Resources.** This NOFA states that
                 each applicant must obtain non-HOPE VI leverage
                 resources for use in the Main Street Affordable Housing
                 Project (see Sections III.B. and V.A.4.a. of this NOFA)
                 and, separately, for use in the general Main Street
                 Area effort (see also Section III.C.1.h. of this NOFA).

Main Street grant funds may be used to maximize the amount of leverage,
i.e., leveraged funds and in-kind services, that the applicant can
obtain from sources other than the HOPE VI program. In this capacity,
grant funds may be used: 1) To collateralize municipal bonds or
private-sector loans for affordable housing uses; and 2) As affordable
housing "key money" to attract Main Street Affordable Housing Project or
Main Street Area leverage.

1.  Uses of Leverage. Leverage funds and in-kind services may be used
    for eligible activities listed in Section I.E. of this NOFA and for
    related activities, including, but not limited to:

    a.  For Main Street Affordable Housing Project Leverage:

        i.  The acquisition of Main Street Affordable Housing
            Project-related affordable housing, including associated
            costs, such as appraisals, surveys, tax settlements, broker
            fees, and other closing costs;

        ii. Site improvements related to the construction and
            rehabilitation of Main Street Affordable Housing
            Project-related affordable housing;

        iii. Clearing of interior space that is necessary to facilitate
             rehabilitation of affordable housing units within a
             building;

        iv. Funding of Reserves, e.g., Initial Operating Reserve
            necessary for financial viability during the initial
            affordable housing occupancy period, Replacement Reserves,
            etc.;

        v.  Homeownership financial assistance, e.g., write-down of
            homeownership unit development costs and down payment
            assistance;

        vi. Other uses that relate directly to the Main Street
            Affordable Housing Project;

    b.  For Main Street Area Leverage:

        i.  Rehabilitation of retail space;

        ii. Site improvements, e.g., repaving streets or upgrading
            streets or sidewalks with brick or cobblestone, adding
            "boulevard" islands, etc.;

        iii. Legal and administrative fees and costs; and

        iv. Other uses that do not relate directly to the Main Street
            Affordable Housing Project, but do relate to the general
            Main Street Area effort.

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i.  **Transfer of Title for Tax Credits.** The original owner entity of
    Main Street Affordable Housing Project properties may transfer title
    to, or commit to a long-term lease with, an owner entity partnership
    that includes the original owner, the applicant, an equity partner
    and, when appropriate, other partners, for the purpose of obtaining
    Low Income or Historic Tax Credit equity as a leverage resource. See
    Section IV.E. of this NOFA for limits on sale of real property.

j.  **Section 106 Historic Preservation Requirements.** Grantees may not
    commit HUD funds until HUD has completed the historic preservation
    review and consultation process under Section 106 of the National
    Historic Preservation Act of 1966 (16 U.S.C. 470f) and its
    implementing regulation, 36 CFR part 800, as applicable, in
    accordance with environmental review requirements under 24 CFR
    part 50. See <http://www.achp.gov/> for details on the Section 106
    review process.

k.  **Environmental Requirements.**

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(1) HUD's notification of award to a selected applicant constitutes a
    preliminary approval by HUD, subject to HUD's completion of an
    environmental review, of proposed sites in accordance with 24 CFR
    part 50. Selection for participation (preliminary approval) does not
    constitute approval of the proposed site(s).

(2) Your application constitutes a certification that you, the
    applicant, will supply HUD with all available, relevant information
    necessary for HUD to perform any environmental review required by 24
    CFR part 50 for each property; will carry out mitigating measures
    required by HUD or, if mitigation is not feasible, select alternate
    eligible property; and will not acquire, rehabilitate, convert,
    demolish, lease, repair, or construct property, nor commit or expend
    HOPE VI, other HUD or other non-HUD funds for these program
    activities with respect to any eligible property, until you receive
    written HUD approval of the property.

(3) Each proposal will be subject to a HUD environmental review, in
    accordance with 24 CFR part 50, and the proposal may be modified or
    the proposed sites rejected as a result of that review.

(4) Phase I and Phase II Environmental Site Assessments. If you are
    selected for funding, you must have a Phase I environmental site
    assessment completed in accordance with the ASTM Standards E
    1527-00, as amended, for each affected site. The results of the
    Phase I assessment must be included in the documents that must be
    provided to HUD for the environmental review. If the Phase I
    assessment recognizes environmental concerns or if the results are
    inconclusive, a Phase II environmental site assessment will be
    required.

(5) Mitigating and remedial measures. You must carry out any
    mitigating/remedial measures required by HUD. If a remediation plan,
    where required, is not approved by HUD and a fully-funded contract
    with a qualified contractor licensed to perform the required type of
    remediation is not executed, HUD reserves the right to determine
    that the grant is in default.

(6) Your application constitutes a certification that there are not any
    environmental or public policy factors such as sewer moratoriums
    that would preclude development in the requested Main Street Area.

(7) Note that environmental requirements for this NOFA are found in 24
    CFR part 50, which requires HUD environmental approval. Please note
    that 24 CFR part 58, which allows State and local governments to
    assume Federal environmental responsibilities, is not applicable.

(8) HUD's Environmental website is located at
    <http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm>.

    a.  **Building Standards.**

        1.  Building Codes. All activities that include construction,
            rehabilitation, lead-based paint removal, and related
            activities must meet or exceed local building codes. The
            applicant is encouraged to read the policy statement and
            Final Report of the HUD Review of Model Building Codes that
            identifies the variances between the design and construction
            requirements of the Fair Housing Act and several model
            building codes. That report can be found on the HUD website
            at <http://www.hud.gov/fhe/modelcodes>**.**

        2.  Deconstruction. HUD encourages the applicant to design
            programs that incorporate sustainable construction and
            demolition practices, such as the dismantling or
            \"deconstruction\" of housing units, recycling of demolition
            debris, and reusing salvage materials in new construction.
            \"A Guide to Deconstruction\" can be found at
            <http://www.hud.gov/deconstr.pdf>.

        3.  Partnership for Advancing Technology in Housing ("PATH").
            HUD encourages the applicant to use PATH technologies in the
            construction and delivery of affordable housing. PATH is a
            voluntary initiative that seeks to accelerate the creation
            and widespread use of advanced technologies to radically
            improve the quality, durability, environmental performance,
            energy efficiency, and affordability of our nation\'s
            housing.

            a.  The goal of PATH is to achieve dramatic improvement in
                the quality of American housing by the year 2010. PATH
                encourages leaders from the home building, product
                manufacturing, insurance, and financial industries, and
                representatives from federal agencies dealing with
                housing issues to work together to spur housing design
                and construction innovations. PATH will provide
                technical support in design and cost analysis of
                advanced technologies to be incorporated in project
                construction.

            b.  Applicants are encouraged to employ PATH technologies to
                exceed prevailing national building practices by:

                i.  Reducing costs;

                ii. Improving durability;

                iii. Increasing energy efficiency;

                iv. Improving disaster resistance; and

                v.  Reducing environmental impact.

            c.  More information, including a list of technologies, the
                latest PATH Newsletter, results from field
                demonstrations, and descriptions of PATH projects can be
                found at [www.pathnet.org]{.underline}**.**

        4.  Energy Efficiency.

            a.  New construction must comply with the latest HUD-adopted
                Model Energy Code issued by the Council of American
                Building Officials.

            b.  In HOPE VI new construction, HUD encourages the
                applicant to set higher energy and water efficiency
                standards than the Model Energy Code contains. Such
                higher standards can achieve utility savings of 30 to 50
                percent with minimal extra cost.

            c.  The applicant is encouraged to negotiate with its local
                utility company to obtain lower utility rates. Utility
                rates and tax laws vary widely throughout the country.
                In some areas, local governments are exempt or partially
                exempt from utility rate taxes. Some local governments
                have paid unnecessarily high utility rates because they
                were billed using 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.  The applicant must use new technologies that will
                conserve energy and decrease operating costs where cost
                effective. Examples of such technologies include:

                i.  Geothermal heating and cooling;

                ii. Placement of buildings and size of eaves that take
                    advantage of the directions of the sun throughout
                    the year;

                iii. Photovoltaics (technologies that convert light into
                     electrical power);

                iv. Extra insulation;

                v.  Smart windows; and

                vi. Energy Star appliances.

        5.  Universal Design. HUD encourages the applicant to
            incorporate the principles of universal design in the
            construction or rehabilitation of housing, retail
            establishments, and community facilities, and when
            communicating with community residents at public meetings or
            events. Universal Design is the design of products and
            environments to be usable by all people, to the greatest
            extent possible, without the need for adaptation or
            specialized design. The intent of Universal Design is to
            simplify life for everyone by making products,
            communications, and the built environment more usable by as
            many people as possible at little or no extra cost.
            Universal Design benefits people of all ages and abilities.
            Examples include designing wider doorways, installing levers
            instead of doorknobs, and putting bathtub/shower grab bars
            in all units. Computers and telephones can also be set up in
            ways that enable as many residents as possible to use them.
            The Department has a publication that contains a number of
            ideas about how the principles of Universal Design can
            benefit persons with disabilities. To order a copy of
            [Strategies for Providing Accessibility and Visitability for
            HOPE VI and Mixed Finance Homeownership]{.underline}, go to
            the publications and resource page of the HOPE VI website at
            <http://www.huduser.org/publications/pubasst/strategies.html>.

        6.  Energy Star. The Department of Housing and Urban Development
            has adopted a wide-ranging energy action plan for improving
            energy efficiency in all program areas. As a first step in
            implementing the energy plan, HUD, the Environmental
            Protection Agency (EPA) and the Department of Energy (DoE)
            have signed a partnership to promote energy efficiency in
            HUD's affordable housing efforts and programs. The purpose
            of the Energy Star partnership is to promote energy
            efficiency of the affordable housing stock, but also to help
            protect the environment. Applicants constructing,
            rehabilitating, or maintaining housing or community
            facilities are encouraged to promote energy efficiency in
            design and operations. They are urged especially to purchase
            and use Energy Star-labeled products. Applicants providing
            housing assistance or counseling services are encouraged to
            promote Energy Star building to homebuyers and renters.
            Program activities can include developing Energy Star
            promotional and 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 1-888-STAR-YES (1-888-782-7937) or for the
            hearing-impaired, 1-888-588-9920 TTY.

        7.  All buildings must be in compliance with design and
            construction requirements of the Civil Rights Act of 1964,
            Section 504 of the Rehabilitation Act of 1973, and Section
            109 of the Housing and Community Development Act of 1974.

    b.  **Lead-Based Paint.** The applicant must comply with lead-based
        paint evaluation and reduction requirements as provided for
        under the Lead-Based Paint Poisoning Prevention Act (42 U.S.C.
        4821, [et]{.underline} [seq]{.underline}.). The applicant must
        also comply with regulations at 24 CFR part 35, as they may be
        amended or revised from time to time. Unless otherwise provided,
        the applicant will be responsible for lead-based paint
        evaluation and reduction activities for housing constructed
        prior to 1978. The National Lead Information Hotline is
        1-800-424-5323.

    c.  **Labor Standards.**

        1.  If other federal programs are used in connection with the
            applicant's HOPE VI Main Street activities, Davis-Bacon
            requirements apply to the extent required by the other
            federal programs.

        2.  If an applicant provides Main Street grant funds to a PHA to
            construct, rehabilitate, or otherwise assist affordable
            housing under this NOFA, Davis-Bacon wage rates will apply
            to laborers and mechanics (other than volunteers under 24
            CFR part 70) employed in the development of such units, and
            HUD-determined wage rates will apply to laborers and
            mechanics (other than volunteers) employed in the operation
            of such units.

    d.  **Relocation Requirements.** The Uniform Relocation Assistance
        and Real Property Acquisition Policies Act of 1979 (42 U.S.C.
        4601-4655) and implementing regulations at 49 CFR part 24 apply
        to anyone who is displaced as a result of acquisition,
        rehabilitation, or demolition due to a HUD-assisted activity.

    e.  **Fair Housing and Equal Opportunity Requirements**.

Fair Housing and Equal Opportunity requirements stated in Section
III.c.2.(c) of the General Section apply as referenced in this NOFA. In
addition, the following requirement applies:

1.  Accessibility Requirements.

    a.  All "multifamily" HOPE VI developments, defined as projects with
        more than five units, are subject to the accessibility
        requirements contained in several federal laws, as implemented
        in 24 CFR part 8. PIH Notice 2003-31, available at
        [http://www.hud.gov/offices/pih/publications/notices/]{.underline},
        and subsequent updates, provides an overview of all pertinent
        laws and implementing regulations pertaining to HOPE VI.

    b.  Generally, for substantial rehabilitation of projects with more
        than 15 housing units, or new construction of a multifamily
        project, at least 5 percent of the units, or one unit, whichever
        is greater, must be accessible to persons with mobility
        impairments. An additional 2 percent, but not less than one
        unit, must be made accessible for persons with hearing or vision
        impairment. See, in particular, 24 CFR parts 8.20 through 8.32.

    c.  In addition, under the Fair Housing Act, all new construction of
        covered multifamily buildings must contain certain features of
        accessible and adaptable design. The relevant accessibility
        requirements are provided in HUD's FHEO website at
        [http://www.hud.gov/groups/fairhousing.cfm]{.underline}. Units
        covered are all those in elevator buildings with four or more
        units and all ground floor units in buildings without elevators.
        See also "program accessibility" at
        <http://www.hud.gov/offices/fheo/disabilities/sect504faq.cfm#anchor263905>.
        This section is in addition to, and does not replace, other
        non-HUD accessibility requirements that the applicant local
        government may be subject to.

\(2\) Compliance with Fair Housing and Civil Rights Laws.

\(a\) Applicants must comply with all applicable fair housing and civil
rights requirements in 24 CFR 5.105(a).

\(b\) If you, the applicant:

\(i\) Have been charged with an ongoing systemic violation of the Fair
Housing Act; or

\(ii\) Are a defendant in a Fair Housing Act lawsuit filed by the
Department of Justice alleging an ongoing pattern or practice of
discrimination; or

\(iii\) Have received a letter of noncompliance findings, identifying
ongoing systemic noncompliance, under Title VI of the Civil Rights Act
of 1964, Section 504 of the Rehabilitation Act of 1973, or Section 109
of the Housing and Community Development Act of 1974; and

\(iv\) The charge, lawsuit or letter of findings referenced in subpart
(a), (b), or (c) above has not been resolved to HUD's satisfaction
before the application deadline, then you are ineligible and HUD will
not rate and rank your application. HUD will determine if actions to
resolve the charge, lawsuit, or letter of findings taken prior to the
application deadline are sufficient to resolve the matter.

Examples of actions that would normally be considered sufficient to
resolve the matter include, but are not limited to:

\(A\) A voluntary compliance agreement signed by all parties in response
to a letter of findings;

\(B\) A HUD-approved conciliation agreement signed by all parties;

\(C\) A consent order or consent decree; or

\(D\) An issuance of a judicial ruling or a HUD Administrative Law
Judge's decision.

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

    a.  Additional Nondiscrimination and Other Requirements;

        1.  Civil Rights Laws, including the Americans with Disabilities
            Act of 1990 (42 U.S.C. 1201 et seq.);

        2.  The Age Discrimination Act of 1974 (42 U.S.C. 6101
            [et]{.underline} [seq]{.underline}.); and

        3.  Title IX of the Education Amendments Act of 1972 (20 U.S.C.
            1681 [et]{.underline} [seq]{.underline}.)

    b.  Affirmatively Furthering Fair Housing;

    c.  Economic Opportunities for Low- and Very Low-Income Persons
        (Section 3);

    d.  Ensuring the Participation of Small Businesses, Small
        Disadvantaged Businesses, and Women-Owned Businesses;

    e.  Relocation;

    f.  Executive Order 13166, Improving Access to Services for Persons
        With Limited English Proficiency (LEP);

    g.  Executive Order 13279, Equal Protection of the Laws for
        Faith-Based and Community Organizations;

    h.  Accessible Technology;

    i.  Procurement of Recovered Materials;

    j.  Participation in HUD-Sponsored Program Evaluation;

    k.  Executive Order 13202, Preservation of Open Competition and
        Government Neutrality Towards Government Contractors\' Labor
        Relations on Federal and Federally Funded Construction Projects;

    l.  Salary Limitation for Consultants;

    m.  OMB Circulars and Government-wide Regulations Applicable to
        Financial Assistance Programs;

    n.  Drug-Free Workplace; and

    o.  Safeguarding Resident/Client Files.

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I.  **Application and Submission Information**

    A.  **Addresses to Request Application Package.** This section
        describes how you may obtain application forms, additional
        information about the General Section of this NOFA, and
        technical assistance.

        1.  Copies of this published NOFA and related application forms
            may be downloaded from the grants.gov website at
            <http://www.grants.gov/FIND>, HUD's Grants Administration
            website at
            <http://www.hud.gov/offices/adm/grants/otherhud.cfm>, or
            HUD's HOPE VI website at
            <http://www.hud.gov/offices/pih/programs/ph/hope6/grants/mainstreet/>,
            If you do not have Internet access and need to obtain a copy
            of this NOFA, you can contact HUD's NOFA Information Center
            toll-free at (800) HUD-8929. Persons with hearing or speech
            impairments may call toll-free at (800) HUD-2209.

        2.  [Application Kits]{.underline}. There are no application
            kits for HUD programs. All the information you need to apply
            will be in the NOFA and available at the above locations.

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        1.  The published [Federal]{.underline} [Register]{.underline}
            document is the official document that HUD uses to evaluate
            applications. Therefore, if there is a discrepancy between
            any materials published by HUD in its [Federal]{.underline}
            [Register]{.underline} publications and other information
            provided in paper copy, electronic copy, or at
            [www.grants.gov]{.underline}, the [Federal]{.underline}
            [Register]{.underline} publication prevails. Please be sure
            to review the application submission against the
            requirements in the [Federal]{.underline}
            [Register]{.underline} file of this NOFA.

# **Content and Form of Application Submission**

## Number of Applications Permitted. Each applicant may submit only one application. 

2.  [Joint Applications]{.underline}. Joint applications are not
    permitted. However, the applicant may enter into subgrant agreements
    with procured developers, other partners, nonprofit organizations,
    state governments, or other local governments to perform the
    activities proposed under the application.

3.  [General Format and Length of Application.]{.underline}

    a.  [General]{.underline}

        1.  Signatures. Where applicant execution is required, the head
            of the Local Government, or his or her designee, must sign
            each form or certification that is required as part of the
            application, whether part of an attachment or a standard
            certification.

        2.  The application should be packaged in a three-ring binder.

    b.  [Page Layout]{.underline}.

        1.  Narrative pages must be double-spaced. **Single-spaced pages
            will be counted as two pages.**

        2.  Narrative information furnished in columns must be double
            spaced. Pages that include single spaced columns will be
            counted as two pages.

        3.  Use 8½ x 11-inch paper, one side only. Only the Main Street
            area map may be submitted on an 11 by 17-inch sheet of
            paper. **Larger pages will be counted as two pages.**

        4.  All four page margins should be a minimum of ½ inch. If any
            margin is smaller than ½ inch the page will be counted as
            two pages.

        5.  The font must be Times New Roman 12-point.

        6.  If a narrative section is not applicable, omit it; do not
            insert a page marked n/a.

        7.  Mark each application Section with the appropriate tab
            listed in section IV.B.4.a. No material on the tab will be
            considered for review purposes, although pictures are
            allowed.

        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
            pages of text on one piece of paper. Shrunken pages will be
            counted as multiple pages.

    c.  [Page Count]{.underline}.

        1.  The maximum total length of all narrative sections,
            including the Executive Summary and the Rating Factor
            responses, is 15 pages.

        2.  The maximum length of attachments is as follows:

            a.  For the Program Schedule, a maximum of one page;

            b.  For the Map of the Main Street Area, one page. The map
                must be scalable.

            c.  Main Street Rejuvenation Master Plan (Master Plan), a
                maximum of 20 pages. In order to meet the size
                limitation, the applicant may submit only the portions
                of the Master Plan that pertain to subjects that are
                listed in Section III of this NOFA, under "Thresholds"
                and "Program Requirements," and Section V of this NOFA.
                If those portions of the Master Plan exceed 20 pages,
                the applicant may summarize information that is included
                in those portions of the Master Plan. [By applying for
                this NOFA, the applicant is certifying that submitted
                summaries of the Master Plan accurately represent the
                original Master Plan;]{.underline}

        3.  HUD forms will not be counted toward the attachment page
            total;

        4.  Text submitted at the request of HUD to correct technical
            deficiencies will not be counted in the page limit.

        5.  Any pages in excess of the above limitations will not be
            reviewed. 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.**

4.  [Application Content]{.underline}. The following is a list of
    narrative exhibits and forms that are required as part of the
    application. Narrative exhibits and forms should be included in the
    application in the order listed below. 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
    mandatory documentation requirements in Section IV.B. of this NOFA
    to ascertain the affects of non-submission. HUD forms required by
    this NOFA can be obtained on the Internet at
    [http://www.grants.gov](http://www.grants.gov/),
    <http://www.hud.gov/offices/adm/grants/otherhud.cfm>[,
    or]{.underline}
    <http://www.hud.gov/offices/pih/programs/ph/hope6/grants/mainstreet/>.

    a.  [List of Mandatory Application Sections and Related
        Documents]{.underline}.

        1.  Summary Information:

            a.  Section A: Application for Federal Assistance, form
                SF-424;

            b.  Section B: Application Table of Contents;

            c.  Section C: Executive Summary;

        2.  Rating Factor Responses:

            a.  Section D: Rating Factor 1, Capacity, Narrative
                Response;

            b.  Section E: Rating Factor 2, Need for Affordable Housing,
                Narrative Response;

            c.  Section F: Rating Factor 3, Appropriateness of Main
                Street Master Plan;

            d.  Section G: Rating Factor 4, Appropriateness of the Main
                Street Affordable Housing Project;

            e.  Section H: Rating Factor 5, Program Administration and
                Fiscal Management;

            f.  Section I: Rating Factor 6, Incentive Criteria on
                Regulatory Barrier Removal; and

            g.  Section J: Rating Factor 7, RC/EZ/EC-IIs.

        3.  Attachments:

            a.  Section K: HOPE VI Main Street Application Data Sheet,
                form HUD-52861;

            b.  Section L: Program Schedule;

            c.  Section M: Map of Main Street Area;

            d.  Section N: Main Street Rejuvenation Master Plan;

            e.  Section O: HOPE VI Budget, form HUD-52825A;

            f.  Section P: 5-Year Cash Flow Proforma;

            g.  Section Q: America's Affordable Communities Initiative,
                form HUD-27300, and related documentation;

            h.  Section R: Logic Model, form HUD-96010;

            i.  Section S: Race and Ethnic Data Reporting, form
                HUD-27061;

            j.  Section T: Applicant/Recipient Disclosure/Update Report,
                form HUD-2880, if applicable;

            k.  Section U: Certification of Consistency with the
                RC/EZ/EC-IIs Strategic Plan, form HUD-2990, if
                applicable; and

            l.  Section V: Disclosure of Lobbying Activities, Standard
                Form LLL, if applicable.

5.  [Documentation Information]{.underline}.

    a.  [Executive Summary]{.underline}.

        1.  Provide an Executive Summary, not to exceed two pages.
            Describe your affordable housing plan. State whether you
            have procured a developer or whether you will act as your
            own developer. Briefly describe:

            a.  The type of housing, e.g., walk-up above retail space,
                detached house, etc.;

            b.  The number of units and buildings;

            c.  The specific plans for the Main Street Area that
                surrounds the Main Street Affordable Housing Project.
                Include income mix, basic features (such as restoration
                of streets), and a general description of mixed-use and
                non-housing Main Street rejuvenation components.

            d.  The number of homeownership units in your proposal, if
                any;

            e.  The amount of HOPE VI funds you are requesting. See
                Section IV.E. of this NOFA for funding limits; and

            f.  A list of major non-HOPE VI funding sources for the Main
                Street Affordable Housing Project, if any.

    b.  [HOPE VI Main Street Application Data Sheet, form
        HUD-52861]{.underline}.

        1.  This form consists of several Excel worksheets. Instructions
            for filling in the data worksheets are located on the
            left-hand worksheet, with the tab name, "Instructions." The
            worksheets should be filled out from the left-most tab
            toward the right. In this way, the information that the
            applicant provides will automatically be inserted to the
            right into other worksheets as needed.

        2.  List of Match and Leverage Resources. To meet the leverage
            resources threshold stated in Section III.C.1 of this NOFA,
            the applicant must provide a leverage amount equal to or
            greater than the applicant's requested grant amount.
            Allowable resources may be cash contributions or
            contributions of in-kind services. For each of the
            applicant's leverage resources, the applicant's list of
            leverage resources must include:

            a.  The name of the entity providing the resource;

            b.  The name of a contact for the entity providing the
                resource that is familiar with the contribution toward
                this application;

            c.  The telephone number of a contact for the resource who
                is familiar with the contribution toward this
                application;

            d.  The leverage amount;

            e.  Whether the leverage amount is cash or in-kind services;
                and

            f.  The period in which the leverage resource was expended
                or will be received, e.g., expended during 2003, or, for
                a future leverage resource, the period in which it will
                be furnished, e.g., over the next two years.

    c.  [Program Schedule]{.underline}. The application must include a
        program schedule for the applicant's Project.

        1.  The schedule must include, at a minimum:

            a.  Grant Agreement Execution Date. Assume that the Grant
                Agreement Execution Date will be within 90 days after
                the grant award notification date;

            b.  Date of closing of financing of the first phase, in
                months after the grant award date;

            c.  Date of the start of construction of the first housing
                unit, in months after the grant award date; and

            d.  Date of the completion of construction of the last
                housing unit, in months after the grant award date.

        2.  The Program Schedule must reflect the Reasonable Time-Frame
            and Development Proposal time requirements stated in Section
            VI.B.1. of this NOFA. The Program Schedule must also state
            that grant activities will be completed within the 30-month
            term of the grant.

    d.  [Map of Main Street Area]{.underline}. The drawing must:

        1.  show the boundaries of a Main Street Area. The boundaries
            may include streets, highways, railroad tracks, etc., and
            natural boundaries such as streams, hills, and ravines, etc.
            and

        2.  denote each housing site that is included in the applicant's
            Main Street Affordable Housing Project.

    e.  [Main Street Rejuvenation Master Plan]{.underline}. The
        applicant's Main Street Rejuvenation Master Plan must address,
        at a minimum, the eight subjects listed in "Main Street
        Rejuvenation Master Plan," in Section I.D.13. of this NOFA. The
        Master Plan must be as it existed on or before the application
        submission date of this NOFA. It is not necessary to include a
        market analysis for affordable housing that is needed in the
        Main Street Area or applications to the Historic Registry or
        list of Historic Districts. The applicant may submit only the
        portions of the Master Plan that pertain to subjects that are
        listed in Section III of this NOFA, under "Thresholds," "Program
        Requirements," and Section V of this NOFA. If those portions of
        the Master Plan exceed 20 pages, the applicant may summarize
        information that is included in those portions of the Master
        Plan. By applying for this NOFA, the applicant is certifying
        that submitted summaries of the Master Plan accurately represent
        the original Master Plan. See Section IV.B.6. of this NOFA for
        certifications that the applicant is making when the applicant
        applies for funds from this NOFA.

    f.  [Cash Flow Proforma.]{.underline} The applicant must include a
        five-year estimate of project income, expenses, and cash flow
        ("proforma") that shows that the project will be financially
        viable over the long term. In the proforma, the applicant should
        assume that the initial occupancy period is a minimum of two
        years. Note that initial funding of reserves with grant funds is
        NOT an allowable use of funds from this NOFA. Reserves may be
        funded through leverage resources. Viability must be shown for
        the entire project, i.e., all buildings that include affordable
        housing units that are partially or wholly funded with HOPE VI
        funds. The applicant may include one proforma for the entire
        project, or several proformas, broken out for the various
        portions of the project, as fits the circumstances best. For
        example, separate proformas may include viability documentation
        for:

        1.  All buildings together;

        2.  Separately for each building in the project; or

        3.  Separately for each owner entity in the project.

    g.  [HOPE VI Budget.]{.underline} Enter the amount you are
        requesting through this NOFA. In "Part I: Summary," it is not
        necessary to fill in the columns entitled, "Previous Authorized
        Amounts of Funds in LOCCS," "Changes Requested in this
        Revision," and "HUD-Approved Total Authorized Amount of Funds in
        LOCCS." In "Part II: Supporting Pages," it is necessary only to
        fill in columns 2 and 3.

    h.  [Logic Model.]{.underline} It is not necessary to fill in
        columns 6, 7, 8 and 9. This information will be collected at the
        end of the grant term. See Section VI.C.3. of this NOFA.

    i.  [Appropriateness of Application.]{.underline} Section 24(e)(1)
        of the 1937 Act requires that the application demonstrate the
        appropriateness of the proposal in the context of the local
        housing market relative to other alternatives. An example of an
        alternative proposal would be proposing a range of resident
        incomes, housing types (rental, homeownership, market-rate,
        townhouse, detached house, etc.), or costs which cannot be
        supported by the existing neighborhood demographics. Briefly,
        contrast your proposal and an alternative, and include the
        discussion in the executive summary.

6.  [Certifications.]{.underline} By signing the SF-424, the applicant
    certifies to the following:

    a.  The Main Street Rejuvenation Master Plan that is included as
        part of this application existed for three years prior to the
        application submission date, and is mentioned in the applicant's
        Consolidated Plan, if one exists;

    b.  Prior to the publication date of this NOFA, the Main Street
        Affordable Housing Project was, and continues to be, included in
        the Main Street Rejuvenation Master Plan;

    c.  Submitted summaries of the Master Plan accurately represent the
        original Master Plan;

    d.  The applicant or its developer entity recognized by the
        applicant has site control of all properties where affordable
        housing will be developed;

    e.  All project sites have zoning that allows for residential
        development;

    f.  All Match resources included in the application are "firmly
        committed." See the definition of "firmly committed" in Section
        I.D. of this NOFA;

    g.  All leverage resources included in the application are "firmly
        committed." See the definition of "firmly committed" in Section
        I.D. of this NOFA;

    h.  Historic preservation requirements in Section 106 of the
        [National Historic Preservation Act of 1966
        (NHPA)](http://www.achp.gov/nhpa.html) will be fulfilled, where
        applicable.

    i.  Environmental requirements stated in the NOFA will be fulfilled;

    j.  Building standards stated in the NOFA will be fulfilled;

    k.  Relocation requirements under the Uniform Relocation Assistance
        and Real Property Acquisition Policies Act of 1970 (URA) will be
        fulfilled;

    l.  Fair Housing requirements will be followed and fulfilled; and

    m.  The "Certification of Consistency with RC/EZ/EC Strategic Plan"
        (form HUD-2990), if included in the application, applies.

## Rating Factor Format. The narrative portion of the application is the executive summary and the applicant's response to the rating factors. To ensure proper credit for information applicable to each rating factor, the applicant should include application Section references, as listed in Section IV.B.4.a. of this NOFA, to supporting documentation and language, as appropriate for rating factor responses. The applicant's rating factor responses should be as descriptive as possible, ensuring that every requested item is addressed. The applicant should make sure to include all information requested in the instructions of this NOFA. Although information from all parts of the application will be taken into account in rating the various factors, if supporting information cannot be found by the reviewer, it cannot be used to support a factor's rating. 

7.  [Rating Factor Documentation]{.underline}

    a.  [References to the Main Street Rejuvenation Master
        Plan]{.underline}**.**

        1.  The purpose of referencing the Main Street Rejuvenation
            Master Plan is to decrease the amount of rating factor
            narrative that the applicant finds necessary to achieve its
            maximum rating. It is NOT necessary to repeat in the rating
            factor narratives the information that the applicant
            included in its Master Plan.

        2.  Each reference to the Master Plan should be specific,
            including the page number of the Master Plan where the
            information can be found and a reference to identify its
            location on the page. More than one specific reference to
            the Master Plan may be included for any one subject or
            rating factor narrative.

    b.  [Team Experience and Key Personnel Knowledge.]{.underline}
        Documentation that demonstrates knowledge and experience may
        include, but is not limited to:

        1.  A list and short description of affordable housing projects
            that the members of the applicant's team have completed;

        2.  A list and short description of contracts or grants
            completed by the members of the applicant's team for similar
            housing development or services;

        3.  Third-party evaluation reports;

        4.  Résumés of key personnel; and

        5.  Other documentation showing knowledge and experience of
            affordable housing development or construction.

    c.  [Need for Affordable Housing]{.underline}**.** Documentation of
        need for affordable housing is based on a comparison of HUD's
        Fair Market Rent (FMR) for the applicant's Primary Metropolitan
        Statistical Area/Metropolitan Statistical Area ("PMSA/MSA\") or
        nonmetropolitan county/parish and the maximum amount of rent
        that a low-income family living in that PMSA/MSA or
        nonmetropolitan county/parish can afford to pay.

        1.  PMSA/MSAs and nonmetropolitan counties are as listed in
            HUD's document titled "FY 2004 State List of Counties (and
            New England Towns) Identified by Metropolitan and
            Nonmetropolitan Status" at
            <http://www.huduser.org/datasets/il/IL04/Definitions04.doc>.

        2.  The FMRs are listed at
            <http://www.huduser.org/intercept.asp?loc=/Datasets/FMR/FMR2005F/Final_FY2005_SCHEDULEB1.pdf>

        3.  The maximum, affordable low-income rent is based on HUD's
            Income Limits, as listed at
            <http://www.huduser.org/datasets/il/IL04/Section8_IncomeLimits_2004.doc>
            for low-income families. The maximum, affordable low-income
            rent is equal to the Median Family Income for low-income
            families, divided by 12, divided further by 0.3 (30
            percent).

        4.  In performing the comparison, the applicant must use the
            4-person family size and the 3-bedroom unit size. The
            application must include the income limit and maximum,
            affordable low-income rent for a 4-person family, and the
            Fair Market Rent for a 3-bedroom unit.

    d.  [Program Administration and Fiscal Management]{.underline}**.**
        Documentation that demonstrates program administration and
        fiscal management MUST include:

        1.  A description of the procurement system structure that the
            applicant has in place, including internal controls;

        2.  A description of the fiscal management structure that the
            applicant has in place, including fiscal controls and
            internal controls;

        3.  A summary of the results of the last available annual
            external, independent audit, including findings, if any;

        4.  A list of any findings issued or material weaknesses found
            by HUD or other federal or state agencies. A description of
            how the applicant addressed the findings and/or weaknesses.
            If no findings or material weaknesses were exposed or
            existed on or before the publication date of this NOFA,
            include a statement to that effect in the narrative; and

        5.  A description of the applicant's management control
            structure, including management roles and responsibilities
            and evidence that the applicant's management is
            results-oriented, e.g., existing production, rental, and
            maintenance goals.

    e.  [Incentive Criteria on Regulatory Barrier Removal.]{.underline}

        1.  The applicant must include the completed form HUD-27300 in
            the application, along with background documentation where
            required by the form.

    f.  [RC/EZ/EC-IIs.]{.underline}

        1.  To receive the two bonus points for performing the NOFA
            activities in a RC/EZ/EC-II area, the applicant must include
            the "Certification of Consistency with RC/EZ/EC Strategic
            Plan" (form HUD-2990) in the application, signed by the
            authorized official of the RC/EZ/EC.

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D.  **Submission Dates and Times**

    1.  [Application submission date and time.]{.underline} The
        application submission date is **September 2, 2005 at 5:15 pm.**
        See Section IV.F. of this NOFA for the submission address.

    2.  [Acknowledgement of Application Receipt.]{.underline} If you
        wish to receive written acknowledgement of HUD's receipt of the
        application, the Acknowledgment of Application Receipt, form
        HUD-2993, should be included in the front of the application.
        After receipt, HUD will return the form to you.

# **Intergovernmental Review**

3.  [Executive Order 12372, Intergovernmental Review of Federal
    Programs.]{.underline} Executive Order 12372 was issued to foster
    intergovernmental partnership and strengthen federalism by relying
    on state and local processes for the coordination and review of
    federal financial assistance and direct federal development. HUD
    implementing regulations are published in 24 CFR part 52. The
    executive order allows each state to designate an entity to perform
    a state review function. The official listing of State Points of
    Contact (SPOCs) for this review process can be found at
    [http://www.whitehouse.gov/omb/grants/spoc.html]{.underline}. States
    not listed on the website have chosen not to participate in the
    intergovernmental review process and, therefore, do not have a SPOC.
    If the applicant's state has a SPOC, the applicant should contact it
    to see if it is interested in reviewing the application prior to
    submission to HUD. The applicant should allow ample time for this
    review process when developing and submitting the applications. If
    the applicant's state does not have a SPOC, the applicant may send
    applications directly to HUD.

# **Funding Restrictions**

4.  Grant funds shall be used only to provide assistance to carry out
    eligible affordable housing activities, as stated in Section I.E. of
    this NOFA.

5.  [Non-allowable Costs and Activities.]{.underline} Although leverage
    resources may be used to fund the following activities or expenses,
    grant funds from this NOFA CANNOT be used for:

    a.  Total demolition of a building (including where a building
        foundation is retained);

    b.  Sale or lease of the Main Street Affordable Housing Project site
        (excluding lease or transfer of title for the purposes of
        obtaining tax credits, provided that the recipient owner entity
        of the title or lease includes the applicant);

    c.  Funding of reserves;

    d.  Payment of administrative costs of the applicant;

    e.  Payment of legal fees;

    f.  Development of public housing replacement units (defined as
        units that replace disposed of or demolished public housing) or
        use as Housing Choice Vouchers;

    g.  Transitional security activities;

    h.  Main Street technical assistance consultants or contracts; and

    i.  Costs incurred prior to grant award, including the cost of
        application preparation.

6.  [Cost Controls]{.underline}

    a.  The total amount of HOPE VI funds expended shall not exceed the
        Total Development Cost ("TDC"), as published by HUD in NOTICE
        PIH 2003-8 (HA), "Public Housing Development Cost Limits," for
        the number of affordable housing units that will be developed
        through this NOFA. The TDC limits can be found at
        <http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=PIHN&s1=2003-8&op1=AND&l=100&SECT1=TXT_HITS&SECT5=HEHB&u=./hudclips.cgi&p=1&r=2&f=G>.

    b.  Cost Control Safe Harbors apply. Safe Harbors may be found at
        <http://www.hud.gov/utilities/intercept.cfm?/offices/pih/programs/ph/hope6/grants/admin/safe_harbor.pdf>.

7.  [Community and Supportive Services ("CSS").]{.underline} Furnishing
    CSS to residents is voluntary, except for homeownership counseling
    when the application includes development of homeownership units. If
    the applicant chooses to furnish CSS, expenditures are limited to 15
    percent of the grant amount.

8.  [Statutory time limit for award, obligation, and
    expenditure.]{.underline}

    a.  The estimated award date will be September 30, 2005.

    b.  Funds available through this NOFA must be obligated on or before
        September 30, 2005.

    c.  In accordance with 31 U.S.C. 1552 (Pub. L. 97-258, Sept. 13,
        1982, 96 Stat. 935; Pub. L. 101-510, div. A, title XIV, Sec.
        1405(a)(1), Nov. 5, 1990, 104 Stat. 1676.), all HOPE VI funds
        that were appropriated in FY 2004 must be expended by
        **September 30, 2010.** 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.

9.  [Withdrawal of Funding.]{.underline} If a grantee under this NOFA
    does not proceed within a reasonable time frame, HUD shall withdraw
    any grant amounts that have not been obligated. HUD shall
    redistribute any withdrawn amounts to one or more other applicants
    eligible for assistance.

10. [Transfer of Funds.]{.underline} HUD has the discretion to transfer
    funds available through this NOFA to any other HOPE VI program.

11. [Limitation on Eligible Expenditures.]{.underline} Expenditures on
    services, equipment, and physical improvements must directly relate
    to project activities allowed under this NOFA.

12. [Pre-Award Activities.]{.underline} Award funds may not be used to
    reimburse pre-award expenses.

# **Other Submission Requirements.**

# Address for Submitting Applications. Send the completed application to: 

Ms. Dominique Blom

Acting Deputy Assistant Secretary for Public Housing Investments

Department of Housing and Urban Development

451 Seventh Street, SW, Room 4130

Washington, DC 20410-5000.

Please make sure that you note the room number. The correct room number
is very important in ensuring that your application is properly accepted
and not misdirected.

# Wrong Address. Applications mailed to the wrong location or office designated for receipt of the application, which result in the designated office not receiving your application in accordance with the requirements for timely submission, will result in your application being considered late and will not receive funding consideration. HUD will not be responsible for directing packages to the appropriate office(s).

# Submission via Overnight Mail. Paper applications must be submitted, in their entirety, via FedEx, United Postal Service (UPS) or United States Postal Service (USPS) Express Mail. No other mail carriers or delivery services are allowed into HUD Headquarters and no applications will be accepted from other mail carriers or delivery services HUD will not accept hand delivery of applications. 

# **Timely Receipt of Applications. Applications must be received on or before 5:15 p.m. on September 2, 2005 at the address stated in Section IV.F.1. of this NOFA. Regardless of the date the application was posted to the USPS or other mail carrier, applications received after 5:15 p.m. on September 2, 2005 at the address in IV.F.1. will be considered late and will not be eligible for funding. There is no grace period for mail delivery time. Note that this requirement differs from, and takes precedence over, the General Section. The applicant should post the application early enough to allow sufficient time for delivery before the submission date and time. Note that USPS Express Mail does not always deliver within the committed time. It has been HUD's experience that Express Mail delivery may take up to five days.** 

# Late applications. Late applications will not receive funding consideration. Applications sent to HUD through FedEx, United Parcel Service (UPS) or the United States Postal Service (USPS) Express Mail will be considered late and ineligible to receive funding if not received on or before the application due date, regardless of the postmark date. HUD will not be responsible for directing or forwarding applications to the appropriate location. Applicants should pay close attention to these submission and timely receipt instructions as they can make a difference in whether HUD will accept your application for funding consideration.

# Proof of Timely Submission. Proof of timely submission for all applications, regardless of delivery method, shall be the date and time recorded by HUD's Grant Administrator in his or her application receipt log. 

13. [No Facsimiles or Videos]{.underline}. HUD will not accept for
    review, evaluation, or funding, any entire application sent by
    facsimile (fax). Minor changes or corrections, or other materials
    received on or before the application submission date will be
    accepted and made part of the application. Facsimile corrections to
    technical deficiencies will be accepted. Also, videos submitted as
    part of an application will not be viewed.

# DUNS Requirement*.* All applicants applying for funding, including renewal funding, must have a Dun and Bradstreet Universal Data Numbering System (DUNS) number. The DUNS number must be included in the data entry field labeled "Organizational Duns" on the form SF-424. Instructions for obtaining a DUNS number can be found at either of the following websites: [www.hud.gov/offices/adm/grants/duns.cfm](http://www.hud.gov/offices/adm/grants/duns.cfm) or [www.grants.gov/GetStarted](http://www.Grants.gov/GetStarted).

# General Section References. The following sub-sections of Section IV of the General Section are hereby incorporated by reference:

a.  Addresses to Request Application Package;

b.  Application Kits;

c.  Guidebook and Further Information

d.  Forms. The following HUD standard forms are not required as part of
    the application for this NOFA:

    1.  Grant Application Detailed Budget (HUD-424-CB);

    2.  Grant Application Detailed Budget Worksheet (HUD-424-CBW);

        Certifications and Assurances.

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II. **Application Review Information**

    A.  **Selection Criteria (Rating Factors)**

        1.  **Rating Factor 1: Capacity (up to 30 points).**

            This factor addresses whether the Applicant Team has the
            capacity and organizational resources necessary to
            successfully implement the proposed activities within the
            grant period.

            a.  **Past Experience (up to 15 points).**

                1.  The applicant will earn a maximum of 15 points if
                    the applicant demonstrates that the applicant's team
                    has extensive experience of affordable housing
                    development and historic preservation requirements,
                    and is on schedule in implementing the Main Street
                    Master Plan. That is, the applicant's team has
                    developed or rehabilitated more than 5 affordable
                    housing projects and 3 Historic Register or
                    traditional architecture projects over the past
                    three years.

                2.  The applicant will earn a maximum of 10 points if
                    the applicant demonstrates that the applicant's team
                    has adequate experience of affordable housing
                    development and historic preservation requirements,
                    and is on schedule in implementing the Main Street
                    Master Plan. That is, the applicant's team has
                    developed or rehabilitated more than 2 affordable
                    housing projects and 1 Historic Register or
                    traditional architecture projects over the past
                    three years.

                3.  The applicant will earn a maximum of 6 points if the
                    applicant demonstrates that the applicant team has
                    extensive experience, gained over the past three
                    years, of affordable housing development and
                    historic preservation requirements, but is behind
                    schedule in implementing the Main Street Master
                    Plan.

                4.  The applicant will earn a maximum of 3 points if the
                    applicant demonstrates that the applicant team has
                    adequate experience, gained over the past three
                    years, of housing development and historic
                    preservation requirements, but is behind schedule in
                    implementing the Main Street Master Plan.

                5.  The applicant will earn a maximum of 0 points if the
                    applicant cannot demonstrate that its team has at
                    least adequate experience of housing development and
                    historic preservation requirements, whether
                    implementation of the Main Street Master Plan is on
                    schedule or not.

            b.  **Knowledge of Key Personnel (up to 10 points).**

                1.  The applicant will earn a maximum of 10 points if
                    the applicant demonstrates that its key personnel
                    have extensive knowledge, gained over the past three
                    years, of affordable housing development and
                    historic preservation requirements.

                2.  The applicant will earn a maximum of 5 points if the
                    applicant demonstrates that the applicant team's key
                    personnel have adequate knowledge, gained over the
                    past three years, of affordable housing development
                    and historic preservation requirements.

                3.  The applicant will earn a maximum of 0 points if the
                    applicant cannot demonstrate that its key personnel
                    have at least adequate knowledge, gained over the
                    past three years, of housing development and
                    historic preservation requirements.

            c.  **Tracking and Reporting System for Production
                Milestones (up to 5 points).**

                1.  The applicant will earn a maximum of 5 points if the
                    applicant demonstrates that a tracking and reporting
                    system for key production milestones has existed and
                    has been in use continuously for the Main Street
                    Area rejuvenation effort, and the applicant
                    demonstrates how the tracking and reporting system
                    will be used to implement a grant awarded through
                    this NOFA.

                2.  The applicant will earn a maximum of 3 points if a
                    tracking and reporting system exists as of the
                    application submission date (i.e., was developed as
                    a result of this NOFA), but has not been used on the
                    Main Street Area rejuvenation effort, provided that
                    the applicant demonstrates how it will be used to
                    implement a grant awarded through this NOFA.

                3.  The applicant will earn a maximum of 1 point if a
                    tracking and reporting system does not exist, and
                    has not existed in the past, as of the application
                    submission date, but the applicant demonstrates how
                    such a system will be used to implement a grant
                    awarded through this NOFA.

                4.  The applicant will receive 0 points if:

                    a.  A tracking and reporting system does not exist;
                        or

                    b.  The applicant does not demonstrate how one will
                        be used to implement a grant awarded through
                        this NOFA.

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        1.  **Rating Factor 2: Need for Affordable Housing (up to 10
            points).**

            a.  For the applicant's PMSA/MSA or nonmetropolitan
                county/parish, if the ratio of the maximum affordable
                rent for a 4-person family to the FMR of a 3-bedroom
                size unit (affordable rent divided by FMR) is equal to
                or less than 0.4, the applicant will receive 10 points.

            b.  For the applicant's PMSA/MSA or nonmetropolitan
                county/parish, if the ratio of the maximum affordable
                rent for a 4-person family to the FMR of a 3-bedroom
                unit (affordable rent divided by FMR) is greater than
                0.4, and is equal to or less than 0.6, the applicant
                will receive 7 points.

            c.  For the applicant's PMSA/MSA or nonmetropolitan
                county/parish, if the ratio of the maximum affordable
                rent for a 4-person family to the FMR of a 3-bedroom
                size unit (affordable rent divided by FMR) is greater
                than 0.6, but is equal to or less than 0.8, the
                applicant will receive 4 points.

            d.  For the applicant's PMSA/MSA or nonmetropolitan
                county/parish, if the ratio of the maximum affordable
                rent for a 4-person family to the FMR of a 3-bedroom
                size unit (affordable rent divided by FMR) is greater
                than 0.8, the applicant will receive 0 points.

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        3.  **Rating Factor 3: Appropriateness of the Main Street Master
            Plan (up to 20 points).**

            a.  **Master Plan Requirements (up to 6 points).**

                1.  The applicant will receive 6 points if the
                    application demonstrates that the Master Plan
                    includes all 6 elements required, as listed below.
                    One point will be deducted from the maximum of 6
                    points for each element that is not included in the
                    Master Plan. The applicant should evidence this by
                    making specific references to pages in the Master
                    Plan. The Master Plan must at a minimum:

                    a.  Have been prepared by an architect, land
                        planner, or qualified planning professional for
                        the applicant or its recognized developer
                        entity.

                    b.  Describe the proposed Main Street Rejuvenation
                        redevelopment strategies;

                    c.  Include a map indicating the Main Street Area;

                    d.  Include a narrative that refers to the map and
                        describes the various planned redevelopment
                        actions;

                    e.  Include the development of affordable housing;
                        and

                    f.  Include a list of properties where affordable
                        housing will be rehabilitated or developed. The
                        list of properties must have been included in
                        the Main Street Master Plan on or before the
                        application submission date. The properties must
                        be described by lot/block number, street
                        address, legal description, or other exact
                        description.

            b.  **Master Plan Qualities (up to 14 points).**

                1.  Commitment to Historic or Traditional Architecture.

                    a.  The applicant will receive 5 points if the
                        applicant's Master Plan demonstrates a strong
                        commitment to the preservation of historic or
                        traditional architecture.

                    b.  The applicant will receive 3 points if the
                        applicant's Master Plan addresses the
                        preservation of historic or traditional
                        architecture but does not convey a strong
                        commitment to it.

                    c.  The applicant will receive 0 points if the
                        applicant Master Plan does not address the
                        preservation of historic or traditional
                        architecture.

                2.  Design Guidelines.

                    a.  The applicant will receive 2 points if the
                        applicant's Master Plan contains specific design
                        guidelines that relate to historic or
                        traditional architecture, and that promote
                        universal design, as described in Section
                        III.C.2. of this NOFA.

                    b.  The applicant will receive 1 point if the Master
                        Plan contains general design guidelines.

                    c.  The applicant will receive 0 points if the
                        Master Plan does not contain design guidelines.

                3.  Mission Statement.

                    a.  The applicant will receive up to 1 point if the
                        applicant's Master Plan contains a well-defined
                        mission statement that addresses the needs of
                        the Main Street Area and includes, and is
                        relevant to, local community conditions. The
                        applicant should evidence this by making
                        specific references to pages in the Master Plan.

                    b.  The applicant will receive 0 points if the
                        applicant's Master Plan does not include a
                        well-defined mission statement.

                4.  Public and Private Support.

                    a.  The applicant will receive 3 points if the
                        applicant's Master Plan has received strong
                        local public and private sector support
                        demonstrated by long-term (at least two years
                        of) financial and in-kind service leverage
                        commitments to the Main Street Area equal to or
                        greater than 200 percent of the applicant's
                        requested grant amount.

                    b.  The applicant will receive 2 points if the
                        applicant's Master Plan has received strong
                        local public and private sector support
                        demonstrated by long-term (at least two years
                        of) financial and in-kind service leverage
                        commitments to the Main Street Area equal to or
                        greater than 150 percent, but less than 200
                        percent of the applicant's requested grant
                        amount.

                    c.  The applicant will receive 1 point if the
                        applicant's Master Plan has received strong
                        local public and private sector support
                        demonstrated by long-term (at least two years
                        of) financial and in-kind service leverage
                        commitments to the Main Street Area equal to or
                        greater than 100 percent, but less than 150
                        percent of the applicant's requested grant
                        amount.

                5.  Promotion and Marketing.

                    a.  The applicant will receive 3 points if the
                        applicant's Master Plan sets forth a plan to
                        promote and market the Main Street Area
                        rejuvenation effort to parties that may be
                        involved in the rejuvenation effort and to
                        possible future residents of the Main Street
                        Affordable Housing Project, including (in
                        accordance with affirmative fair housing
                        marketing requirements) the population that is
                        least likely to apply.

                    b.  The applicant will receive 2 points if the
                        applicant's Master Plan includes a discussion of
                        both promotion and marketing of the Main Street
                        Area rejuvenation effort to parties that may be
                        involved in the rejuvenation effort and to
                        possible future residents of the Main Street
                        Affordable Housing Project, including (in
                        accordance with affirmative fair housing
                        marketing requirements) the population that is
                        least likely to apply.

                    c.  The applicant will receive 1 point if the
                        applicant's Master Plan includes a discussion of
                        either promotion or marketing of the Main Street
                        Area rejuvenation effort to parties that may be
                        involved in the rejuvenation effort and to
                        possible future residents of the Main Street
                        Affordable Housing Project, including (in
                        accordance with affirmative fair housing
                        marketing requirements) the population that is
                        least likely to apply.

                    d.  The applicant will receive 0 points if the
                        applicant's Master Plan does not includes a
                        discussion of promotion or marketing of the Main
                        Street Area rejuvenation effort.

        4.  **Rating Factor 4: Appropriateness of the Main Street
            Affordable Housing Project (up to 20 points).**

            a.  **Main Street Affordable Housing Project Leverage (up to
                10 points).**

                1.  In this NOFA, there are three categories of cash and
                    in-kind contributions ("leverage"), Main Street Area
                    Leverage, Main Street Housing Project Leverage, and
                    match:

                    a.  Main Street Area Leverage includes all types of
                        leverage as described in Section III.C. of this
                        NOFA, entitled, "Main Street Area Leverage," and
                        is used for activities related to the Main
                        Street Area rejuvenation effort. Note that
                        long-term Main Street Area Leverage is rated
                        above in Section V.A.3.b.4. of this NOFA,
                        entitled "Public and Private Support."

                    b.  Main Street Affordable Housing Project Leverage
                        includes all types of leverage as described in
                        Section III.C. of this NOFA, but is specifically
                        used only for development of the Main Street
                        Affordable Housing Project.

                    c.  Match is a separate, statutorily required
                        sub-group of Main Street Affordable Housing
                        Project Leverage. Match requirements are
                        described in Section III.B. of this NOFA.

                2.  This rating factor measures Main Street Affordable
                    Housing Project Leverage only. The amount of Main
                    Street Affordable Housing Project Leverage includes
                    the match amount.

Points will be assigned based on the following scale:

#  **Leverage as Percent of Grant Amount Points Awarded** {#leverage-as-percent-of-grant-amount-points-awarded .unnumbered}

Less than 20 percent zero points

Greater than or equal to 20 percent but less than 40 percent 2 points

Greater than or equal to 40 percent but less than 60 percent 4 points

Greater than or equal to 60 percent but less than 80 percent 6 points

Greater than or equal to 80 percent but less than 100 percent 8 points

100 percent or more 10 points

b.  **Retention of historic or traditional architecture (up to 5
    points)**

    1.  The applicant will receive 5 points if the application
        demonstrates that the buildings in the project will maintain all
        of the historic or traditional architecture and design features
        on all floors of the buildings.

    2.  The applicant will receive 2 points if the application
        demonstrates that the buildings in the project will retain some
        of the historic or traditional architecture and design features
        on some or all of the floors of the buildings.

    3.  The applicant will receive 0 points if the application does not
        demonstrate that the buildings in the project will retain
        historic or traditional architecture and design features.

c.  **Reservation for Very Low-Income Families (up to 4 points).**

    1.  The applicant will receive 5 points if the number of units
        reserved for very low-income initial residents is greater than
        20 percent of the total affordable housing units in the project.

    2.  The applicant will receive 3 points if the number of units
        reserved for very low-income initial residents is greater than
        10 percent, but less than or equal to 20 percent of the total
        affordable housing units in the project.

    3.  The applicant will receive 0 points if the number of units
        reserved for very low-income initial residents is 10 percent or
        less of the total affordable housing units in the project.

d.  **Energy Star (up to 1 point).**

\(1\) Promotion of Energy Star compliance is a HOPE VI Main Street
program requirement. See Section III.C.4.g. of this NOFA.

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

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

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

\(c\) If you elect to include Community and Supportive Services in your
grant activities, include Energy Star in homeownership counseling.

\(2\) You will receive 0 points if your application does not demonstrate
that you will perform (a) and (b) above, and, if applicable, (c) above.

5.  **Rating Factor 5: Program Administration and Fiscal Management (up
    to 18 points).**

    a.  **Program Schedule (up to 5 points).**

        1.  The applicant may receive a maximum of 5 points if the
            program schedule reflects that each of the milestone
            activities will take place within the stipulated time frames
            required under Section VI.B.1. of this NOFA and the
            applicant demonstrates that the planned time frames are
            realistic and achievable, i.e., there are no known
            impediments to unit development, e.g., litigation, and the
            applicant's team has prepared a chart that states estimated
            production milestones, their relative time frames, and each
            milestone's time to completion, e.g., Gantt Chart. One point
            will be deducted from the 5 points for each milestone
            activity listed in Section VI.B.1. and IV.B.4.c. that is:

            a.  Omitted from the program schedule;

            b.  Not indicated to occur within the time frame required in
                this NOFA, or

            c.  Is not demonstrated to be realistic and achievable.

    b.  **Fiscal Management (up to 13 Points).**

        1.  If the applicant shows fiscal management controls, a
            procurement system, and a results-oriented management
            structure that are adequate to manage a grant from this
            NOFA, and the applicant demonstrates that their management
            structure and controls are results-oriented, the applicant
            will receive 13 points;

        2.  If the applicant shows fiscal management controls, a
            procurement system, and management structure and controls
            that are adequate to manage a grant from this NOFA, but the
            applicant does not demonstrate that the applicant's
            management structure and controls are results-oriented, the
            applicant will receive 8 points;

        3.  If the applicant shows fiscal management controls, but the
            applicant does not demonstrate that the applicant has a
            procurement system and it does not demonstrate that its
            management structure and controls are results-oriented, the
            applicant will receive 4 points;

        4.  If the applicant does not describe its program management
            structure and fiscal management controls and does not show
            that they are adequate, the applicant will receive 0 points.

6.  **Rating Factor 6: Incentive Criteria on Regulatory Barrier Removal
    -- (up to 2 points).**

**a. Description.**

\(1\) HUD's Notice, "America's Affordable Communities Initiative, HUD's
Initiative on Removal of Regulatory Barriers: Announcement of Incentive
Criteria on Barrier Removal in HUD's FY 2004 Competitive Funding
Allocations," [Federal]{.underline} [Register]{.underline} Docket Number
FR-4882-N-03, published on March 22, 2004, provides that most HUD
competitive NOFAs will include an incentive for local and state
governments to decrease their regulatory barriers to the development of
affordable housing.

\(2\) Form HUD-27300 contains questions that explore the applicant's
efforts to decrease regulatory barriers.

**b. Scoring.**

\(1\) If the applicant is considered a local unit of government with
land use and building regulatory authority, an agency or department of a
local unit of government, a nonprofit organization, or other qualified
applicant applying for funding for a project located in the jurisdiction
of the local unit of government, the applicant is invited to answer the
20 questions in Part A of form HUD-27300. For those applications in
which regulatory authority is split between jurisdictions (e.g.,
county/parish and town), the applicant should answer the question for
that jurisdiction that has regulatory authority over the issue at
question.

\(a\) If the applicant checked Column 2 for five to ten questions from
Part A, the applicant will receive 1 point in the NOFA evaluation.

\(b\) If the applicant checked Column 2 for 11 or more questions from
Part A , the applicant will receive 2 points in the NOFA evaluation.

\(2\) Part B of the form is for an applicant that is considered to be a
state government or an agency or department of a state government. State
governments are not eligible to apply for this NOFA and, as such, Part B
of the form is not applicable.

\(3\) In no case will an applicant receive greater than two points for
barrier removal activities. An applicant must submit the documentation
requested in the questionnaire or provide a website address (URL) where
the documentation can be readily found, to receive the bonus points for
this policy priority.

7.  **Rating Factor 7: RC/EZ/EC-IIs-- (up to 2 points)**

    a.  **RC/EZ/EC-IIs**. This NOFA provides for the award of two bonus
        points for eligible activities/projects that the applicant
        proposes to locate in federally designated Empowerment Zones
        (EZs), Renewal Communities (RCs), or Enterprise Communities,
        designated by the United States Department of Agriculture in
        round II (EC-IIs), that are intended to serve the residents of
        these areas, and that are certified to be consistent with the
        area\'s strategic plan or RC Tax Incentive Utilization Plan
        (TIUP). (For ease of reference in this notice, all of the
        federally designated areas are collectively referred to as
        "RC/EZ/EC-IIs" and residents of any of these federally
        designated areas as "RC/EZ/EC-II residents.") This NOFA contains
        a certification, "Certification of Consistency with RC/EZ/EC
        Strategic Plan" (form HUD-2990), that must be completed for the
        applicant to be considered for RC/EZ/EC-II bonus points. A list
        of RC/EZ/EC-IIs can be obtained from HUD's webpage at
        [www.hud.gov/cr]{.underline}. Applicants can determine if their
        program/project activities are located in one of these
        designated areas by using the locator on HUD's website at
        [www.hud.gov/crlocator]{.underline}.

# **Review and Selection Process**

1.  HUD\'s selection process is designed to ensure that grants are
    awarded to eligible local governments with the most meritorious
    applications.

2.  **Application Screening**.

    a.  HUD will screen each application to determine if:

        1.  It meets the threshold criteria listed in Section III.C of
            this NOFA; and

        2.  It is deficient, i.e., contains any technical deficiencies.

    b.  **Corrections to Deficient Applications.** The subsection
        entitled, "Corrections to Deficient Applications," in Section
        V.B of the General Section applies, except that clarifications
        or corrections of technical deficiencies in accordance with the
        information provided by HUD must be submitted within 5 calendar
        days of the date of receipt of the HUD notification, not 14
        days.

    c.  **Applications that will not be rated or ranked.**

        1.  HUD will not rate or rank applications that are deficient at
            the end of a 5 calendar day cure period, as described in
            Section V.B.2.b. of this NOFA.

        2.  HUD will not rate or rank applications that have not met the
            thresholds described in Section III.C. of this NOFA. Such
            applications will not be eligible for funding.

3.  **Preliminary Rating and Ranking.**

    a.  **Rating.**

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

        2.  When rating applications, HUD reviewers will not use any
            information included in any application submitted for
            another NOFA.

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

        4.  The maximum number of points for each application is 102.

        5.  **Minimum Score.** Applications that do not have a
            preliminary score of at least 50 will not be eligible for
            funding.

    b.  Ranking.

        1.  After preliminary review, applications with a minimum score
            of 50 or above will be ranked in score order.

4.  Final Panel Review.

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

        1.  Review the Preliminary Rating and Ranking documentation to:

            a.  Ensure that any inconsistencies between preliminary
                reviewers have been identified and rectified; and

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

        2.  Assign a final score to each application; and

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

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

6.  In accordance with the FY 2004 HOPE VI appropriation, HUD may not
    use HOPE VI funds to grant competitive advantage in awards to settle
    litigation or pay judgments.

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

8.  **Remaining Funds.**

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

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

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

9.  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.

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VI. **Award Administration Information**

    A.  **Award Notices**

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

        2.  **Authorizing Document.** The notice of award signed by the
            Assistant Secretary for Public and Indian Housing (grants
            officer) is the authorizing document. This notice will be
            delivered via the United States Postal Service.

        3.  **Applicant Debriefing.** For a period of at least 120 days,
            beginning 30 days after the awards for assistance are
            publicly announced, HUD will provide a debriefing to an
            application that requests one. All debriefing requests must
            be made in writing by the authorized official whose
            signature appears on the SF-424 or his/her successor in
            office, and submitted to the person or organization
            identified for "Technical Assistance" in Section VII.B. of
            this NOFA. Information provided during a debriefing will
            include, at a minimum, the final score you received for each
            rating factor.

        4.  **General Section References.** The following sub-sections
            of Section VI.A. of the General Section are hereby
            incorporated by reference:

            a.  Adjustments to Funding.

# **Administrative and National Policy Requirements**

5.  **Administrative Requirements:**

    a.  **Grant Agreement Execution.** The grantee must execute the
        Grant Agreement within 90 days after HUD mails the Grant
        Agreement to the grantee.

    b.  **Grant term.** The time period for completion shall not exceed
        30 months from the date the NOFA award is executed.

    c.  **Sub-Grants and Contracts.** Grant funds may be expended
        directly by the applicant or they may be granted or loaned by
        the applicant to a third party who is undertaking the
        development of the project. Loans may be amortized or forgiven.

    d.  **Reasonable Time Frame.** Grantees must proceed within a
        reasonable time frame to complete several milestone activities,
        as indicated below. In determining reasonableness of such time
        frame, HUD will take into consideration those delays caused by
        factors beyond the applicant's control. These time frames must
        be stated in a program schedule, in accordance with the
        threshold requirement documentation at Section IV.B.4.c. of this
        NOFA.

    e.  **Development Proposal.** Grantees must submit a development
        proposal for the project within 6 months after the grant award
        date or, if State Historic Preservation Officer approval is
        necessary, 9 months after the grant award date.

        1.  Development proposals must include the following
            information:

            a.  Identification of parties to the project development;

            b.  Activities and relationships of parties, e.g., Party A
                will loan \$50,000 to Party C via a hard loan with an
                interest rate of 6 percent, with a 30-year amortization
                and a 15-year term.

            c.  Financing, i.e., Sources and Uses in the form HUD-52861
                format;

            d.  Unit description, i.e., unit number and sizes.

            e.  Site locations, i.e., lot and block, street address, or
                legal description;

            f.  Development construction cost estimate; and

            g.  Certification that open competition will be used by the
                grantee to select a development partner and/or owner
                entity, if applicable.

    f.  **Preliminary Environmental Approval Only.** HUD's notification
        of award to a selected applicant constitutes a preliminary
        approval by HUD subject to the completion of an environmental
        review of the proposed sites in accordance with 24 CFR part 50.
        See Section III.C.2.k. of this NOFA for information about
        environmental requirements.

    g.  **First Construction Start.** Grantees must start housing unit
        construction within 12 months after the grant award date or, if
        SHPO approval is necessary, 15 months after grant award date.

    h.  **Last Construction Completion**. Grantees must complete
        construction within 30 months from the grant award date.

    i.  **Flood Insurance.** In accordance with the Flood Disaster
        Protection Act of 1973 (42 U.S.C. 4001-4128), the 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:

        1.  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

        2.  Where the community is participating in the National Flood
            Insurance Program, flood insurance is obtained as a
            condition of execution of a Grant Agreement.

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

6.  **National Policy Requirements**

    a.  See references to the General Section in Section III of this
        NOFA.

7.  **Reporting**

    a.  **Quarterly Administrative and Compliance Checkpoints Report
        (Quarterly Report).**

        1.  If the applicant is selected for funding, the applicant must
            submit a Main Street Quarterly Report to HUD. The report
            will be filled out on-line and will consist of
            administrative and production milestones, called "Locked
            Checkpoints," and a short status narrative.

        2.  HUD will provide training and technical assistance on the
            filing and submitting of Main Street Quarterly Reports.

        3.  Filing of Quarterly Reports is mandatory for all grantees,
            and failure to do so within the required quarterly time
            frame will result in suspension of grant funds until the
            report is filed and approved by HUD.

        4.  Grantees will be held to the milestones that are reported on
            the Quarterly Report, as approved by HUD.

8.  **LOCCS.** Grantees must report all obligations and expenditures in
    HUD's Line of Credit Control System (LOCCS), or its successor
    system, on a quarterly basis.

9.  **Logic Model Reporting.**

    a.  The reporting shall include submission of a completed logic
        model indicating results achieved against the proposed output
        goal(s) for output and proposed outcome(s) which the applicant
        stated in the applicant's approved application and agreed upon
        with HUD. The submission of the logic model and required
        information should be in accordance with the Program Schedule
        time frames as identified in the application and Grant
        Agreement.

10. **Information for Research and Evaluation Studies.** As a condition
    of the receipt of financial assistance under a HUD Program NOFA, all
    successful applicants will be required to cooperate with all HUD
    staff or contractors performing HUD-funded research and evaluation
    studies.

11. **Final Audit.** Grantees are required to obtain a complete final
    closeout audit of the grantee financial statements for the grant
    funds. The audit must be completed by a certified public accountant
    (CPA) in accordance with generally accepted government audit
    standards, and 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.

12. **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 Main Street application and Main Street
        Quarterly Progress Report. Grantees shall use quantifiable data
        to measure performance against goals and objectives outlined in
        its application. 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
        Office of Management and Budget'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), found on
        [www.HUDclips.org]{.underline}; a comparable program form; or a
        comparable electronic data system.

    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.

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VI. **Agency Contacts**

### Technical Corrections to the NOFA. 

### Technical corrections to this NOFA will be posted to the grants.gov website. 

### Any technical corrections will also be published in the [Federal]{.underline} [Register]{.underline}. 

### The applicant is responsible for monitoring these sites during the application preparation period.

### Technical Assistance. Before the application submission date, HUD staff will be available to provide the applicant with general guidance and technical assistance on this NOFA. However, HUD staff is not permitted to assist in preparing the application. If the applicant has a question or needs clarification, the applicant may call Lar Gnessin at (202) 708-0614, ext. 2676, send an email to [**lawrence_gnessin@hud.gov**](mailto:lawrence_gnessin@hud.gov), or the applicant may contact Ms. Dominique Blom, Acting Deputy Assistant Secretary for Public Housing Investments, Department of Housing and Urban Development, 451 Seventh Street, SW, Room 4130, Washington, DC, 20410-5000; telephone (202) 401-8812; fax (202) 401-2370 (these are not toll-free numbers). Persons with hearing and/or speech impairments may access these telephone numbers via text telephone (TTY) by calling the toll-free Federal Information Relay Service at (800) 877--8339. For technical support for downloading an application or submitting an application, please call grants.gov Customer Support at 800-518-GRANTS (This is a toll-free number).

### General Information. General information about HUD's HOPE VI programs can be found on the Internet at [**http://www.hud.gov/offices/pih/programs/ph/hope6/**](http://www.hud.gov/offices/pih/programs/ph/hope6/).

VII. **Other Information**

     A.  **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; and

         4.  The FY 2005 HUD NOFA Process and Future HUD Funding
             Processes.

# **Environmental Impact.** A "Finding of No Significant Impact" (FONSI) 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 FONSI is available for public inspection between 8:00 a.m. and 5:00 p.m. in the Office of the General Counsel, Regulations Division, U.S. Department of Housing and Urban Development, 451 Seventh Street, SW, Room 10276, Washington, DC 20410-0500.

B.  **Paperwork Reduction Act Statement.** The information collection
    requirements contained in this document have been approved by the
    Office of Management and Budget (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. Public reporting burden for the
    collection of information is estimated to average 68 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.

C.  **Sense of Congress.** It is the sense of Congress, as published in
    Section 410 of the Consolidated Appropriations Act of 2004, that, to
    the greatest extent practicable, all equipment and products
    purchased with funds made available in this NOFA should be
    American-made.

    [Dated:]{.underline}

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Paula O. Blunt
>
> General Deputy Assistant Secretary for
>
> Public and Indian Housing

**\[F-4962-N-01\]**