Section IV.A.2 of this NOFA states, "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 by
the above website, the [Federal]{.underline} [Register]{.underline}
publication prevails. Please be sure to review your application
submission against the requirements in the [Federal
Register]{.underline} file of the NOFA." The above NOFA section also
applies to HUD's HOPE VI website.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

**\[Docket No. FR-4982-N-01\]**

####### Notice of Funding Availability for 

####### Revitalization of Severely Distressed Public Housing

####### HOPE VI Revitalization Grants

**Fiscal Year 2005**

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

**ACTION:** Notice of funding availability.

**OVERVIEW INFORMATION:**

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

**B. Funding Opportunity Title.** Revitalization of Severely Distressed
Public Housing HOPE VI Revitalization Grants Fiscal Year 2005.

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

**D. Funding Opportunity Number.** The [Federal]{.underline}
[Register]{.underline} number for this NOFA is: FR-4982-N-01. The OMB
approval number for this program is: 2577-0208.

**E. Catalog of Federal Domestic Assistance (CFDA) Number.** The CFDA
number for this NOFA is 14-866, "Demolition and Revitalization of
Severely Distressed Public Housing (HOPE VI)."

**F. Dates.**

1\. Application Submission Date: The application submission date shall
be June 29, 2005. See the General Section General Section for
application submission and timely receipt requirements.

2\. Estimated Grant Award Date: The estimated award date will be
approximately

September 27, 2005.

**G. Optional, Additional Overview Content Information.**

**1. Available Funds.** This NOFA announces the availability of
approximately \$110 million in FY2005 funds for HOPE VI Revitalization
Program grants, plus approximately \$25 million additional for grantees'
first-year, grant-related housing choice voucher (HCV) assistance.

**2. Proposed Rescission of Funds.** The public is hereby notified that
although this NOFA announces the availability of FY 2005 HOPE VI Funds,
the FY 2006 proposed budget includes the rescission of the FY 2005 HOPE
VI Appropriation. Therefore, this NOFA may be cancelled at a later date
and applications made under this NOFA may not be funded.

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

4\. Housing choice voucher assistance is available to successful
applicants that receive the revitalization grant awards. The dollar
amount of HCV assistance is in addition to the \$20 million maximum
award amount and will be based upon resident relocation needs.

5\. All non-troubled public housing authorities (PHAs) with severely
distressed public housing are eligible to apply. Troubled PHAs must have
received HUD approval to be considered eligible to apply. PHAs that
manage only a HCV program, tribal PHAs and tribally-designated housing
entities are not eligible.

6\. A match of at least five percent is required.

7\. Each applicant may submit only one HOPE VI revitalization
application.

8\. Application materials may be obtained from the [Federal]{.underline}
[Register]{.underline} or over the Internet from
<http://www.grants.gov/FIND>. Technical corrections will be published in
the [Federal]{.underline} [Register]{.underline}. Both technical
corrections and frequently asked questions will be posted on the
grants.gov website.

9\. HUD's general policy requirements apply to all HUD federal financial
assistance NOFAs for Fiscal Year (FY) 2005. These policies cover those
NOFAs issued under HUD's Super Notice of Funding Availability
(SuperNOFA) General Section (70 FR 13576), published in the [Federal
Registe]{.underline}r on March 21, 2005, as well as those issued after
the General Section is published in the [Federal]{.underline}
[Register]{.underline}.

**FULL TEXT OF ANNOUNCEMENT**

**I. Funding Opportunity Description**

**A. Program Description.** In accordance with Section 24(a) of the
United States Housing Act of 1937 (1937 Act) (42 U.S.C. 1437v), the
purpose of HOPE VI revitalization grants is to assist PHAs to:

1\. Improve the living environment for public housing residents of
severely distressed public housing projects through the demolition,
rehabilitation, reconfiguration, or replacement of obsolete public
housing projects (or portions thereof);

2\. Revitalize sites (including remaining public housing dwelling units)
on which such public housing projects are located and contribute to the
improvement of the surrounding neighborhood;

3\. Provide housing that will avoid or decrease the concentration of
very low-income families; and

4\. Build sustainable communities.

**B. Authority.**

1\. The funding authority for HOPE VI revitalization grants under this
HOPE VI NOFA is provided by the Consolidated Appropriations Act, 2005
(Pub. L. 108-447, approved December 8, 2004) under the heading
"Revitalization of Severely Distressed Public Housing (HOPE VI)."

2\. The program authority for the HOPE VI program is Section 24 of the
1937 Act, as amended by Section 402 of the HOPE VI Program
Reauthorization and Small Community Mainstreet Rejuvenation and Housing
Act of 2003 (Pub. L. 108-186, approved December 16, 2003).

**C. Definitions.**

**1. Developer.** A developer is an entity contracted to develop (and
possibly operate) a mixed finance development that includes public
housing units, pursuant to 24 CFR part 941, subpart F. A developer most
often has an ownership interest in the entity that is established to own
and operate the replacement units (e.g., as the general partner of a
limited partnership).

**2. Public Housing Project.** A public housing project is a group of
assisted housing units that has a single Project Number assigned by the
Director of Public Housing of a HUD Field Office and has, or had (in the
case of previously demolished units) housing units under an Annual
Contributions Contract.

**3. Replacement Housing.** Under this HOPE VI NOFA, a HOPE VI
replacement housing unit shall be deemed to be any combination of public
housing rental units, eligible homeownership units under Section
24(d)(1)(J) of the 1937 Act, and HCV assistance that does not exceed the
number of units demolished and disposed of at the targeted severely
distressed public housing project.

**4. Severely Distressed.**

a\. In accordance with Section 24(j)(2) of the 1937 Act, the term
"severely distressed public housing" means a public housing project (or
building in a project) that:

\(1\) Requires major redesign, reconstruction, or redevelopment \-- or
partial or total demolition \-- to correct serious deficiencies in the
original design (including inappropriately high population density),
deferred maintenance, physical deterioration or obsolescence of major
systems, and other deficiencies in the physical plan of the project;

\(2\) Is a significant contributing factor to the physical decline of,
and disinvestment by public and private entities in, the surrounding
neighborhood;

\(3\) (a) Is occupied predominantly by families who are very low-income
families with children, have unemployed members, and are dependent on
various forms of public assistance; (b) has high rates of vandalism and
criminal activity (including drug-related criminal activity) in
comparison to other housing in the area; or (c) is lacking in sufficient
appropriate transportation, supportive services, economic opportunity,
schools, civic and religious institutions, or public services, resulting
in severe social distress in the project;

\(4\) Cannot be revitalized through assistance under other programs,
such as the Capital Fund and Operating Fund programs for public housing
under the 1937 Act, or the programs under Sections 9 or 14 of the 1937
Act (as in effect before the effective date under Section 503(a) of the
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276,
approved October 21, 1998), because of cost constraints and inadequacy
of available amounts; and

\(5\) In the case of an individual building that currently forms a
portion of the public housing project targeted by the application to
this NOFA:

\(a\) Is sufficiently separable from the remainder of the project of
which the building is part, such that the revitalization of the building
is feasible; or

\(b\) Was part of the targeted public housing project that has been
legally vacated or demolished, but for which HUD has not yet provided
replacement housing assistance (other than tenant-based assistance).
"Replacement housing assistance" is defined as funds that have been
furnished by HUD to perform major rehabilitation on, or reconstruction
of, the public housing units that have been legally vacated or
demolished.

b\. A severely distressed project that has been legally vacated or
demolished (but for which HUD has not yet provided replacement housing
assistance, other than tenant-based assistance) must have met the
definition of physical distress not later than the day the demolition
application approval letter was dated by HUD.

**5. Targeted Project.** The targeted project is the current public
housing project that will be revitalized with funding from this NOFA.
The targeted project may include more than one public housing project or
be a part of a public housing project. See Section III.C.1. of this NOFA
for eligibility of multiple public housing projects and separability of
a part of a public housing project.

**6. Temporary Relocation.** There are no provisions for "temporary
relocation" under the Uniform Relocation Assistance and Real Property
Acquisition Policies Act Of 1970 (URA). See Notice CPD 04-2, "Guidance
on the Application of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act Of 1970 (URA), As Amended, in HOPE VI
Projects," paragraph IV.A.2. for the definition of "temporary
relocation" as it applies to HOPE VI projects. The Notice can be
obtained through HUDClips at <http://www.hudclips.org/>.

**D. Eligible Revitalization Activities.** HOPE VI Revitalization grants
may be used for activities to carry out revitalization programs for
severely distressed public housing in accordance with Section 24(d) of
the 1937 Act. Revitalization activities approved by HUD must be
conducted in accordance with the requirements of this NOFA. The
following is a list of eligible activities.

**1. Relocation.** Relocation, including reasonable moving expenses, for
residents displaced as a result of the revitalization of the project.
See Sections III.C.4. and V.A.6. of this NOFA for relocation
requirements.

**2. Demolition.** Demolition of dwelling units or non-dwelling
facilities, in whole or in part, although demolition is not a required
element of a HOPE VI Revitalization Plan.

**3. Disposition.** Disposition of a severely distressed public housing
site, by sale or lease, in whole or in part, in accordance with Section
18 of the 1937 Act and implementing regulations at 24 CFR part 970. A
lease of one year or more that is not incident to the normal operation
of a project is considered a disposition that is subject to Section 18
of the 1937 Act.

**4. Rehabilitation and Physical Improvement.** Rehabilitation and
physical improvement of:

a\. Public housing; and

b\. Community facilities, provided that the community facilities are
primarily intended to facilitate the delivery of community and
supportive services for residents of the public housing project and
residents of off-site replacement housing, in accordance with 24 CFR
968.112(b), (d), (e), and (g)-(o) and 24 CFR 968.130 and 968.135(b) and
(d) or successor regulations, as applicable.

**5. Development.** Development of:

a\. Public housing replacement units; and

b\. other units (e.g., market-rate units), provided a need exists for
such units and such development is performed with non-public housing
funds.

**6. Homeownership Activities.** Assistance involving the rehabilitation
and development of homeownership units. Assistance may include:

a\. Down payment or closing cost assistance;

b\. Hard or soft second mortgages; or

c\. Construction or permanent financing for new construction,
acquisition, or rehabilitation costs related to homeownership
replacement units.

**7. Acquisition.** Acquisition of:

a\. rental units and homeownership units;

b\. land for the development of off-site replacement units and community
facilities (provided that the community facilities are primarily
intended to facilitate the delivery of community and supportive services
for residents of the public housing project and residents of off-site
replacement housing);

c\. land for economic development-related activities, provided that such
acquisition is performed with non-public housing funds.

**8. Management Improvements.** Necessary management improvements,
including transitional security activities.

**9. Administration, Planning, Etc.** Administration, planning,
technical assistance, and other activities (including architectural and
engineering work, program management, and reasonable legal fees) that
are related to the implementation of the Revitalization Plan, as
approved by HUD. See Cost Control Standards in Section IV.E. of this
NOFA.

**10. Community and Supportive Services (CSS)**.

**a**. The CSS component of the HOPE VI program encompasses all
activities that are designed to promote upward mobility,
self-sufficiency, and improved quality of life for the residents of the
public housing project involved.

**b. CSS activities.** CSS activities may include, but are not limited
to:

(1) 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.

(2) Adult educational activities, including remedial education, literacy
    training, tutoring for completion of secondary or postsecondary
    education, assistance in the attainment of certificates of high
    school equivalency, and English as a Second Language courses, as
    needed.

(3) Readiness and retention activities, which frequently are key to
    securing private sector commitments to the provision of jobs.

(4) Employment training activities that include results-based job
    training, preparation, counseling, development, placement, and
    follow-up assistance after job placement.

(5) Programs that provide entry-level, registered apprenticeships in
    construction, construction-related, maintenance, or other related
    activities. A registered apprenticeship program is a program that
    has been registered with either a State Apprenticeship Agency
    recognized by the Department of Labor's (DOL) Office of
    Apprenticeship Training, Employer and Labor Services (OATELS) or, if
    there is no recognized state agency, by OATELS. See also DOL
    regulations at 29 CFR part 29.

(6) Training on topics such as parenting skills, consumer education,
    family budgeting, and credit management.

(7) 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.

(8) Coordinating with health care providers or providing on-site space
    for health clinics, doctors, wellness centers, dentists, etc. that
    will primarily serve the public housing residents. HOPE VI funds may
    not be used to provide direct medical care to residents.

(9) Substance and alcohol abuse treatment and counseling.

(10) Activities that address domestic violence treatment and prevention.

(11) 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.

(12) Transportation, as necessary, to enable all family members to
     participate in available CSS activities and to commute to their
     places of employment.

(13) Entrepreneurship training and mentoring, with the goal of
     establishing resident-owned businesses.

**11. Leveraging.** Leveraging other resources, including additional
housing resources, supportive services, job creation, and other economic
development uses on or near the project that will benefit future
residents of the site.

**12. General Section Reference.** Section I, "Funding Opportunity
Description," of the [Notice of HUD's Fiscal Year 2005 Notice of Funding
Availability (NOFA) Policy Requirements and **General Section** to the
Super NOFA for HUD's Discretionary Programs]{.underline} (General
Section), Docket No. FR-4950-N-01, published in the
[Federal]{.underline} [Register]{.underline} on March 21, 2005, is
hereby incorporated by reference.

#### II. Award Information

**A. Availability of HOPE VI Funds.**

**1. Proposed Rescission of Funds. The public is hereby notified that
although this NOFA announces the availability of FY 2005 HOPE VI Funds,
the FY 2006 proposed budget includes the rescission of the FY 2005 HOPE
VI Appropriation. Therefore, this NOFA may be cancelled at a later date
and applications made under this NOFA may not be funded.**

+-----------------------------+-----------------------------------------+
| Type of Assistance          | Funds Available for Award in this       |
|                             |                                         |
|                             | HOPE VI NOFA (Approximate)              |
+-----------------------------+-----------------------------------------+
| Revitalization Grants       | \$110,000,000                           |
+-----------------------------+-----------------------------------------+
| Housing Choice Voucher      | \$25,000,000                            |
| Assistance                  |                                         |
+-----------------------------+-----------------------------------------+
| TOTAL                       | \$135,000,000                           |
+-----------------------------+-----------------------------------------+

**2. Revitalization Grants.** Approximately \$110 million of the FY2005
HOPE VI appropriation has been allocated to fund HOPE VI Revitalization
grants and will be awarded in accordance with this NOFA. There will be
approximately six awards.

3\. The maximum amount you may request in your application for grant
award is limited to \$20 million or the sum of the amounts in Section
IV.E.5. below, whichever is lower. HCV assistance is in addition to this
amount.

**4. Housing Choice Voucher Assistance.** Approximately \$25 million of
the HOPE VI appropriation will be allocated for Housing Choice Voucher
(HCV) assistance. HCV assistance will be provided to HOPE VI
Revitalization NOFA awardees. If \$25 million is more than the amount
necessary to fund the HOPE VI grantee's HCV needs, the remaining funds
will be used for other eligible activities under Section 24 of the 1937
Act.

**5. Grant term.** The period for completion shall not exceed 54 months
from the date the NOFA award is executed by HUD.

**III. Eligibility Information**

**A.** **Eligible Applicants.**

1\. PHAs that have severely distressed housing in their inventory and
are otherwise in conformance with the threshold requirements provided in
Section III.C. of this NOFA. See Section IV.B.4. of this NOFA for
threshold documentation requirements.

**2. Housing Choice Voucher Programs Only and Tribal Housing Agencies.**
PHAs that only administer HCV programs, e.g., Section 8, HCV, and tribal
PHAs and tribally-designated housing entities, are not eligible to
apply.

**3. Troubled Status.** If HUD has designated your housing authority as
troubled pursuant to Section 6(j)(2) of the 1937 Act, HUD will use
documents and information available to it to determine whether you
qualify as an eligible applicant. In accordance with Section 24(j) of
the 1937 Act, the term \"applicant\" means:

a\. Any PHA that is not designated as \"troubled\" pursuant to Section
6(j)(2) of the 1937 Act;

b\. Any PHA for which a private housing management agent has been
selected, or a receiver has been appointed, pursuant to Section 6(j)(3)
of the 1937 Act; and

c\. Any PHA that is designated as \"troubled\" pursuant to Section
6(j)(2) of the 1937 Act and that:

\(1\) Is designated as troubled principally for reasons that will not
affect its capacity to carry out a revitalization program;

\(2\) Is making substantial progress toward eliminating the deficiencies
of the agency that resulted in its troubled status;

\(3\) Has not been found to be in non-compliance with fair housing or
other civil rights requirements; or

\(4\) Is otherwise determined by HUD to be capable of carrying out a
revitalization program.

**B.** **Cost Sharing or Matching.**

**1. Match Requirements.**

**a. Revitalization Grant Match.** HUD is required by the 1937 Act (42
U.S.C. 1437v(c)(1)(A)) to include the requirement for matching funds for
all HOPE VI-related grants. You are required to have in place a match in
the amount of five percent of the requested grant amount in cash or
in-kind donations. Applications that do not demonstrate the minimum 5
percent match will not be considered for funding.

**b. Additional Community and Supportive Services (CSS) Match.**

\(1\) In accordance with the 1937 Act (42 U.S.C. 1437v(c)(1)(B)), in
addition to the 5 percent revitalization grant match in Section a.
above, you may be required to have in place a CSS match. Funds used for
the Revitalization grant match cannot be used for the CSS match.

\(2\) If you are selected for funding through this NOFA, you may use up
to 15 percent of your grant for CSS activities. However, if you propose
to use more than 5 percent of your HOPE VI grant for CSS activities, you
must have in place funds from sources other than HOPE VI, that match the
amount between 5 and 15 percent of the grant that you will use for CSS
activities.

**c. No HOPE VI Funding in Match.** In accordance with Section 24(c) of
the Act, for purposes of calculating the amount of matching funds
required by Sections a. and b. above, you may not include amounts from
HOPE VI program funding, including HOPE VI Revitalization, HOPE VI
Demolition, HOPE VI Neighborhood Networks or HOPE VI Main Street grants.
You may include funding from other public housing sources (e.g., Capital
Funds), other federal sources, any state or local government source and
any private contributions. You may also include the value of donated
material or buildings, the value of any lease on a building, the value
of the time and services contributed by volunteers, and the value of any
other in-kind services or administrative costs provided.

**d. Firmly and Irrevocably Committed.**

(1)\_Match donations must be *firmly committed*. "Firmly committed"
means that the amount of match resources and their dedication to HOPE VI
Revitalization activities must be explicit, in writing, and signed by a
person authorized to make the commitment. See Section IV.F. of the
General Section for instructions on how to electronically submit third
party documents.

\(2\) Match donations must be irrevocably committed. See Section
VI.B.5.a. of this NOFA.

e\. Matching funds must be directly applicable to the revitalization of
the targeted project and the transformation of the lives of residents.

f\. The PHA's staff time is not an eligible cash or in-kind match.

g\. See Section IV.B.3 of this NOFA for match documentation
requirements.

#### C. Other

**1. Thresholds.**

If you have not met a threshold, or, when required by this NOFA, have
not included in the application the complete, correct, required
documentation that demonstrates the threshold has been met, the
application will not be considered for funding. Threshold insufficiency
cannot be cured after the application submission date. See Section IV.B.
of this NOFA for documentation requirements.

a\. One application. Each applicant may submit only one HOPE VI
Revitalization application as described in this NOFA. If a single
applicant submits more than one application, all applications will be
disqualified and no application will be eligible for funding.

**b. Appropriateness of Proposal.**

In accordance with Section 24(e)(1) of the 1937 Act, each application
must demonstrate the appropriateness of the proposal (revitalization
plan) in the context of the local housing market **relative to other
alternatives**. You must discuss other possible alternatives in the
local housing market and explain why the housing envisioned in the
application is more appropriate. This is a statutory requirement and an
application threshold. If you do not demonstrate the appropriateness of
the proposal (revitalization plan) in the context of the local housing
market relative to other alternatives, your application will not be
considered for funding. Examples of alternative proposals may include:

\(1\) Rebuilding or rehabilitating an existing project or units at an
off-site location that is in an isolated, non-residential, or otherwise
inappropriate area;

\(2\) Proposing a range of incomes, housing types (rental,
homeownership, market-rate, public housing, townhouse, detached house,
etc.), or costs which cannot be supported by a market analysis; or

\(3\) Proposing to use the land in a manner that is contrary to the
goals of your agency.

\(4\) See Section IV.B.4.a. of this NOFA for documentation
requirements..

**c. Contiguous, Single, and Scattered-Site Projects.**

Except as provided in sections (1) and (2) below, each application must
target one severely distressed public housing project.

\(1\) Contiguous Projects. Each application may request funds for more
than one project if those projects are immediately adjacent to one
another or within a quarter-mile of each other. If you include more than
one project in your application, you must provide a map that clearly
indicates that the projects are within a quarter-mile of each other. If
HUD determines that they are not, your application will not be
considered for funding.

\(2\) Scattered Site Projects. Your application may request funds to
revitalize a scattered site public housing project. The sites targeted
in an application proposing to revitalize scattered sites (regardless of
whether the scattered sites are under multiple project numbers) must
fall within an area with a one-mile radius. You may identify a larger
site if you can show that all of the targeted scattered site units are
located within the hard edges (e.g., major highways, railroad tracks,
lakeshore, etc.) of a neighborhood. If you propose to revitalize a
project that extends beyond a one-mile radius or is otherwise beyond the
hard edges of a neighborhood, your application will not be considered
for funding.

See Section IV.B.4.b. of this NOFA for documentation requirements.

**d. Desegregation Orders.** You must be in full compliance with any
desegregation or other court order, and voluntary compliance agreements
related to Fair Housing (e.g., Title VI of the Civil Rights Act of 1964,
the Fair Housing Act, and Section 504 of the Rehabilitation Act of 1973)
that affects your public housing program and that is in effect on the
date of application submission. If you are not in full compliance with
any desegregation or other court orders, your application will be
ineligible for funding.

**e. Non-Public Housing Funding for Non-Public Housing or Replacement
Units.**

If the application demonstrates that you are planning to use public
housing funds, which include HOPE VI funds, to develop: retail or
commercial space; economic development space; or housing units that are
not Replacement Housing (See Section I.C. of this NOFA), your
application will not be considered for funding. See Section IV.B.4.c.
for documentation requirements regarding this threshold.

**f. Open Inspector General Audits.**

\(1\) If you have an open Inspector General (IG) audit finding that has
not been resolved to HUD's satisfaction before the submission date of
this NOFA, the application will not be considered for funding.

\(2\) HUD's decision regarding whether a charge, lawsuit, or a letter of
findings has been satisfactorily resolved will be based on whether
appropriate actions have been taken to address the findings.

**g. Performance of Existing HOPE VI Grantees.**

\(1\) The application will not be considered for funding if you have an
existing HOPE VI Revitalization grant, and

\(a\) The grant development is delinquent due to actions or inactions
that are not beyond the control of the grantee; and

\(b\) The grantee is not making substantial progress toward eliminating
the delinquency.

\(2\) "Delinquent" means that resident relocation, unit demolition, unit
construction, unit rehabilitation, unit occupancy, or unit re-occupancy
have not occurred in accordance with the grantee's current
Revitalization Plan.

\(3\) Reasons that are beyond the control of the grantee include, but
are not limited to, the following:

\(a\) Litigation;

(b) Court Orders;

(c) Unforeseen environmental conditions; and

(d) Emergency and natural disasters.

\(4\) HUD will use documents and information available to it to
determine whether the grant is delinquent due to reasons that are beyond
the control of the grantee and whether the grantee is making substantial
progress toward eliminating the delinquency.

**h. Previously Funded Sites.**

You may submit a Revitalization application that targets part of a
project that is being revitalized or replaced under an existing HOPE VI
Revitalization grant. You may not apply for new HOPE VI Revitalization
funds for units in that project that were funded by the existing HOPE VI
Revitalization grant or other HUD funds which are used to achieve
significant revitalization of units (as opposed to regular upkeep), even
if those funds are inadequate to pay the costs to revitalize or replace
all of the targeted units. However, [Replacement Housing Factor funds
will not be considered as funds which are used to achieve significant
revitalization of units]{.underline}. For example, if a project has 700
units and you were awarded a HOPE VI Revitalization grant or other HUD
public housing funds to address 300 of those units, you may submit an
FY-2005 HOPE VI Revitalization application to revitalize the remaining
400 units. You may **not** apply for funds to supplement work on the
original 300 units. If you request funds to revitalize units or
buildings that have been funded by an existing HOPE VI Revitalization
grant or other HUD funds, your application will not be considered for
funding.

**i. Program Schedule.** Your application must contain a program
schedule that provides a feasible plan to meet the schedule requirements
of Section VI.B.2. of this NOFA, with no impediments such as litigation
that would prevent timely startup. The program schedule must indicate
the date on which the development proposal for each phase of the
revitalization plan will be submitted to HUD. A development proposal may
by for a mixed-finance development, homeownership development, etc.,
will be submitted to HUD. If your application does not contain a program
schedule, as described above, the application will not be considered for
funding.

See Section IV.B.4.d. of this NOFA for documentation requirements.

**j. Separability.**

In accordance with Section 24(j)(2)(A)(v) of the 1937 Act, if you
propose to target only a portion of a project for revitalization, you
must:

\(1\) Demonstrate to HUD's satisfaction that the severely distressed
public housing is sufficiently separable from the remainder of the
project of which the building is part to make use of the building
feasible for revitalization. Separations may include a road, berm, catch
basin, or other recognized neighborhood distinction.

\(2\) Demonstrate that the site plan and building designs of the
revitalized portion will provide defensible space for the occupants of
the revitalized building(s) and that the properties that remain will not
have a negative influence on the revitalized buildings(s), either
physically or socially.

\(3\) If your application does not demonstrate separability, your
application will not be considered for funding.

**k. Severe Distress of Targeted Project.** The targeted public housing
project must be severely distressed. See Section I.C. of this NOFA for
the definition of "severely distressed." If the targeted project is not
severely distressed, your application will not be considered for
funding. See Section IV.B.5.a. of this NOFA for documentation
requirements.

**l. Site Control.**

\(1\) If you propose to develop off-site housing in any phase of your
proposed revitalization plan, you MUST provide evidence in your
application that you (not your developer) have site control of the
property(ies).

\(2\) Site control may only be contingent upon:

\(a\) The receipt of the HOPE VI grant;

\(b\) Satisfactory compliance with the environmental review requirements
of this NOFA; and

\(c\) The site and neighborhood standards in Section III.C.4.n.(1) of
this NOFA.

\(3\) If you demonstrate site control through an option to purchase, the
option must extend for at least 180 days after the application
submission date.

\(4\) If you propose to develop off-site housing and you do not provide
acceptable evidence of site control, your **entire** application will
not be considered for funding.

\(5\) See Section IV.B.4.e. of this NOFA for documentation requirements.

**m. Zoning Approval.**

\(1\) If you are proposing to use off-site parcels of land for housing
development or other uses that, until this point in time, have been
zoned for a purpose different than the one proposed in your
revitalization plan, your application must include the documentation
described in Section IV.B.4.f. of this NOFA:

\(2\) If zoning approval/certification is not properly included in your
application, the application will not be considered for funding.

**n. [Compliance with Fair Housing and Civil Rights Laws]{.underline}.**

\(1\) All applicants must comply with all applicable fair housing and
civil rights requirements in 24 CFR § 5.105(a), as applicable.

\(2\) If you, the applicant:

> \(a\) Have been charged with an on-going systemic violation of the
> Fair Housing Act; or

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

\(c\) Have received a letter of 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

\(d\) 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 the application will not be considered
for funding. See Section III.C.2.c. of the General Section.

**o. Requirements and Procedures Applicable to All Programs:**

\(1\) General Section References. The following subsections of Section
III.C. of the General Section are hereby incorporated by reference:

\(a\) Dun and Bradstreet Data Universal Numbering System (DUNS) Number
Requirement;

\(b\) Compliance with Fair Housing and Civil Rights Laws;

\(c\) Conducting Business In Accordance with Core Values and Ethical
Standards;

\(d\) Delinquent Federal Debts;

\(e\) Name Check Review;

\(f\) False Statements;

\(g\) Prohibition Against Lobbying Activities;

\(h\) Debarment and Suspension.

\(i\) Statutory and Regulatory Requirements; and

\(j\) Ineligible Applicants.

\(2\) Salary Limitation for Consultants. FY-2005 funds may not be used
to pay or to provide reimbursement for payment of the salary of a
consultant whether retained by the federal government or the grantee at
more than the daily equivalent of the rate paid for level IV of the
Executive Schedule, unless specifically authorized by law.

**2.** **Thresholds --Applicant Certifications.**

**a. Standard Form 424.** By signing and submitting the Application for
Federal Assistance, Standard Form 424, you are certifying to all of the
thresholds listed in this section. A false statement in an application
is grounds for denial or termination of an award and grounds for
possible punishment as provided in 18 U.S.C. 1001, 1010, and 1012, and
32 U.S.C. 3729 and 3802. See Section IV.B. of this NOFA for any
documentation requirements related to these certifications.

**b. Non-Curable Certifications.** If you have not met a threshold on or
before the application submission date, or have not included in the
application the complete, correct, required documentation that
demonstrates the threshold has been met, the application will not be
considered for funding. For these thresholds, insufficiency cannot be
cured after the application submission date. See Section IV.B. of this
NOFA for documentation requirements.

\(1\) Selection of Developer. You must certify that:

\(a\) You have initiated an RFQ by the application submission date for
the competitive procurement of a developer for your first phase of
construction, in accordance with 24 CFR 85.36 and 24 CFR 941.602(d) (as
applicable). If you change developers after you are selected for
funding, HUD reserves the right to rescind the grant; or

\(b\) You will act as your own developer for the proposed project. If
you change your plan and procure an outside developer after you are
selected for funding, HUD reserves the right to rescind the grant.

\(2\) See Section IV.B.5.g. of this NOFA for documentation requirements.

**c. Curable Certifications.** Omission of, or error in the signature
of, any of the mandatory documentation (as listed in Section IV.B. of
this NOFA) related to the items listed below is considered a Technical
Deficiency and must be cured (corrected) within the cure period stated
in Section V.B. of the General Section. Applications that remain
deficient after the cure period ends will not be considered for funding.

\(1\) Operation and Management Principles and Policies Certification.
You must certify that you will implement the Operation and Management
Principles and Policies stated in Section III.C.4. of this NOFA. See
Section IV.B.5.c. of this NOFA for documentation requirements.

\(2\) Relocation Plan Certification.

\(a\) You must certify that the HOPE VI Relocation Plan has been
completed and:

\(i\) That it conforms to the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (URA) requirements; and

\(ii\) That it implements HOPE VI relocation goals, as described in
Section V.A.6. of this NOFA.

\(b\) If relocation was completed (i.e., the targeted public housing
site is vacant) as of the application submission date, rather than
certifying that the HOPE VI Relocation Plan has been completed, you must
certify that the relocation was completed in accordance with URA
requirements.

\(c\) See Section IV.B.5.d. of this NOFA for documentation requirements.

\(3\) Resident Involvement in the Revitalization Program Certification.
You must certify that you have involved affected public housing
residents at the beginning and during the planning process for the
revitalization program, prior to submission of your application. If you
have not included affected residents in the planning process, your
application will not be considered for funding. See Section III.C.4. of
this NOFA for minimum training and meeting requirements and Section
IV.B.5.e. of this NOFA for documentation requirements.

\(4\) Standard Certifications. The last part of your application will be
comprised of standard certifications common to many HUD programs.
Required forms must be included in the HOPE VI application and will be
available over the Internet at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm. See Section
IV.B.5.i. of this NOFA for documentation requirements.

**3.** **Thresholds -- Third-Party Certifications.**

The following third-party certifications must be included in your
application.

**a. Non-Curable.** If you have not included in the application, on or
before the application submission date, the complete, correct, required
documentation that demonstrates the threshold has been met, the
application will not rated or ranked and will be either ineligible for
funding or have its funding limited, based upon the threshold. For these
thresholds, insufficiency regarding these thresholds cannot be cured
after the application submission date. See Section IV.B. of this NOFA
for any documentation requirements related to these certifications.

\(1\) Cost Control Standards.

Your cost estimates must be certified to meet the cost control standards
stated in Section IV.E. The certification must be made by an independent
cost estimator, architect, engineer, contractor, or other qualified
third party professional. If your costs are not certified, your
application will not be considered for funding. See Section IV.B.5.h. of
this NOFA for documentation requirements.

\(2\) Severely Distressed Certification. Your application must include a
certification that the targeted project is severely distressed. See
Section IV.B.5.g. for documentation requirements.

**b. Curable.** Omission of any of the mandatory documentation listed in
this section is considered a technical deficiency and must be cured
(corrected) within the cure period stated in Section V.B. of the General
Section. Applications that remain deficient after the cure period will
not be considered for funding. See Section IV.B. of this NOFA for any
documentation requirements related to these certifications.

\(1\) Market Assessment Certification for Market-Rate Housing. If you
include market-rate housing, economic development, or retail structures
in your Revitalization Plan, you must provide a certification by an
independent, third party, credentialed market research firm, or
professional that describes its assessment of the demand and associated
pricing structure for the proposed residential units, economic
development or retail structures, based on the market and economic
conditions of the project area. See Section IV.B.5.a. of this NOFA for
documentation requirements.

\(2\) HOPE VI Revitalization Applicant Certifications. You must include
in your application a certification from the Chairman of your Board of
Commissioners to the requirements listed in the HOPE VI Revitalization
Applicant Certifications. See Section IV.B.5.b. of this NOFA for
documentation requirements.

**4.** **Program Requirements.**

**a. Demolition.**

\(1\) You may not carry out nor permit others to carry out the
demolition of the targeted project or any portion of the project until
HUD approves, in writing, one of the following ((a) -- (c)), and until
HUD has also I) approved a Request for Release of Funds submitted in
accordance with 24 CFR part 58, or, II) if HUD performs an environmental
review under 24 CFR part 50, approved the property for demolition, in
writing, following its environmental review.

\(a\) Information regarding demolition in your HOPE VI Revitalization
Application, along with Supplemental Submissions requested by HUD after
the award of the grant. Section 24(g) of the 1937 Act provides that
severely distressed public housing that is demolished pursuant to a
Revitalization Plan is not required to be approved through a demolition
application under Section 18 of the 1937 Act or regulations at 24 CFR
part 970. If you do not receive a HOPE VI Revitalization grant, the
information in your application will not be used to process a request
for demolition;

\(b\) A demolition application under Section 18 of the 1937 Act. While a
Section 18 approval is not required for HOPE VI related demolition, you
will not have to wait for demolition approval through your supplemental
submissions, as described in Section (a) above; or

\(c\) A Section 202 Mandatory Conversion Plan, in compliance with
regulations at 24 CFR part 971 and other applicable HUD requirements, if
the project is subject to Mandatory Conversion (Section 202 of the
Omnibus Consolidated Rescissions and Appropriations Act of 1996 Pub. L.
104-134, approved on April 26, 1996). A Mandatory Conversion Plan
concerns the removal of a public housing project from a PHA's inventory.

**b. Development.**

\(1\) For any standard (non-mixed finance) public housing development
activity (whether on-site reconstruction or off-site development), you
must obtain HUD approval of a standard development proposal submitted
under 24 CFR part 941 (or successor part).

\(2\) For mixed-finance housing development, you must obtain HUD
approval of a mixed finance proposal, submitted under 24 CFR part 941,
subpart F (or successor part and subpart).

\(3\) For new construction of community facilities primarily intended to
facilitate the delivery of community and supportive services for
residents of the project and residents of off-site replacement housing,
you must comply with 24 CFR part 941 (or successor part). Information
required for this activity must be included in either a standard or
mixed finance development proposal, as applicable.

**c. Homeownership.**

\(1\) For homeownership replacement units developed under a
Revitalization Plan, you must obtain HUD approval of a homeownership
proposal. Your homeownership proposal must conform to either:

\(a\) Section 24(d)(1)(J) of the 1937 Act; or

\(b\) Section 32 of the 1937 Act (see 24 CFR part 906). Additional
information on this option may be found at
[www.hud.gov/offices/pih/centers/sac/homeownership](http://www.hud.gov/offices/pih/centers/sac/homeownership).

\(2\) The homeownership proposal must be consistent with the Section 8
Area Median Income (AMI) limitations (80 percent of AMI) and any other
applicable provisions under the 1937 Act. (HUD publishes AMI tables for
each family size in each locality annually. The income limit tables can
be found at
[http://www.huduser.org/datasets/il/il05/index.html.]{.underline})

**d. Acquisition.**

\(1\) Acquisition Proposal. Before you undertake any acquisition
activities with HOPE VI or other public housing funds, you must obtain
HUD approval of an acquisition proposal that meets the requirements of
24 CFR 941.303.

\(2\) Rental Units. For acquisition of rental units in existing or new
apartment buildings, single family subdivisions, etc., with or without
rehabilitation, for use as public housing replacement units, you must
obtain HUD approval of a Development Proposal in accordance with 24 CFR
941.304 (conventional development) or 24 CFR 941.606 (mixed finance
development).

\(2\) Land for Off-Site Replacement Units. For acquisition of land for
public housing or homeownership development, you must comply with 24 CFR
part 941 or successor part.

\(3\) Land for Economic Development-Related Activities.

\(a\) Acquisition of land for this purpose is eligible only if the
economic development-related activities specifically promote the
economic self-sufficiency of residents.

\(b\) Limited infrastructure and site improvements associated with
developing retail, commercial, or office facilities, such as rough
grading and bringing utilities to (but not on) the site are eligible
activities with prior HUD approval.

**e. Leverage.**

\(1\) You must actively enlist other stakeholders who are vested in and
can provide **significant financial assistance** to your revitalization
effort, both for physical development and CSS.

**(2) Types of Leverage Resources.** HUD seeks to fund mixed-finance
developments that use HOPE VI funds to leverage the maximum amount of
other funds, particularly from private sources, that will result in
revitalized public housing, other types of assisted and market-rate
housing, and private retail and economic development. There are four
types of Leverage: Development, CSS, Anticipatory, and Collateral.
Development and CSS leverage are program requirements and will be
described here. Anticipatory and Collateral leverage are included only
in the Leverage rating factor and are described in Section V.A.3. of
this NOFA.

\(3\) Development Leverage.

\(a\) Development resources include:

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

\(ii\) Insured loans.

\(iii\) Donations and contributions.

\(iv\) Housing trust funds.

\(v\) Net sales proceeds from a homeownership project. Down payments
from homebuyers will *not* be counted. Down payment assistance may be
counted as a physical development resource if it is provided by a third
party entity not related to the homebuyer.

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

\(vii\) Tax Increment Funding (TIF).

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

\(ix\) Other Public Housing Funds. Other public housing sources include
HOPE VI Revitalization funds from other grants, HOPE VI Demolition
funds, Capital Fund program funds, and proposals to use operating
subsidy for debt service. These HUD public housing funds will not be
counted for points under CSS, Development and Collateral leverage in
this NOFA. However, they can be used as part of your revitalization
plan. Other public housing sources, except for HOPE VI Revitalization
funds, will be counted toward your leverage rating for anticipatory
leverage and may be used toward your match requirement.

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

\(xi\) Sale of Land. The value of land may be included as a development
resource only if this value is a sales proceed. Absent a sales
transaction, the value of land may not be counted.

\(xii\) Donations of Land. Donations of land may be counted as a
development resource, only if the donating entity owns the land to be
donated. Donating entities may include a city, county/parish, church,
community organization, etc. The application must include documentation
of this ownership, signed by the appropriate authorizing official.

\(xiii\) Low-Income Housing Tax Credits (LIHTC). Low-Income Tax Credits
are authorized by Section 42 of the IRS Code which allows investors to
receive a credit against federal tax owed in return for providing funds
to developers to help build or renovate housing that will be rented only
to lower-income households for a minimum period of 15 years. There are
two types of credits, both of which are available over a 10-year period:
a nine percent credit on construction/rehab costs, and a four percent
credit on acquisition costs and all development costs financed partially
with below-market federal loans (e.g., tax exempt bonds). Tax credits
are generally reserved annually through State Housing Finance Agencies,
a directory of which can be found at
[http://www.ncsha.org/ncsha/public/statehfadirectory/index.htm]{.underline}**.**

\(b\) Sources of Development Leverage. Sources of Development Leverage
may include:

\(i\) Public, private, and nonprofit entities, including LIHTC
purchasers;

\(ii\) State and local housing finance agencies;

\(iii\) Local governments;

\(iv\) The city\'s housing and redevelopment agency or other comparable
agency. HUD will consider this to be a separate entity with which you
are partnering if your PHA is also a redevelopment agency or otherwise
has citywide responsibilities.

\(A\) You are strongly urged to seek a pledge of Community Development
Block Grant (CDBG) funds for improvements to public infrastructure such
as streets, water mains, etc. related to the revitalization effort. CDBG
funds are awarded by HUD by formula to units of general local government
and to states, which may then award a grant or loan to a PHA, a
partnership, a nonprofit organization, or other entity for
revitalization activities, including loans to a project's for-profit
partnership. More information about the CDBG Program can be found at
[www.hud.gov/offices/cpd/index.cfm]{.underline}.

\(B\) The city, county/parish, or state may provide HOME funds to be
used in conjunction with HOPE VI funds. The Home Investment Partnership
program provides housing funds that are distributed from HUD to units of
general local governments and states. Funds may be used for new
construction, rehabilitation, acquisition of standard housing,
assistance to homebuyers, and tenant-based rental assistance. Current
legislation allows HOME funds to be used in conjunction with HOPE VI
funds, but they may not be used in conjunction with public housing
capital funds under Section 9(d) of the 1937 Act. Information about the
HOME program can be found at:
[www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.]{.underline}

\(v\) Foundations;

\(vi\) Government Sponsored Enterprises such as the Federal Home Loan
Bank, Fannie Mae, and Freddie Mac;

\(vii\) HUD and other federal agencies;

\(viii\) Financial institutions, banks, or insurers; and

\(ix\) Other private funders.

\(4\) Community and Supportive Services Leverage.

\(a\) HUD seeks to fund mixed-finance developments that use HOPE VI
funds to leverage the maximum amount of other resources to support CSS
activities in order to ensure the successful transformation of the lives
of residents and the sustainability of the revitalized public housing
development. Leveraging HOPE VI CSS funds with other funds and services
is critical to the sustainability of CSS activities so that they will
continue after the HOPE VI funds have been expended. Commitments of
funding or in-kind services related to the provision of CSS activities
may be counted as CSS resources and toward the calculation of CSS
leverage. See Section V.A.3. of this NOFA.

\(b\) Types of CSS Leverage.

Types of resources include, but are not limited to:

\(i\) Materials;

\(ii\) A building;

\(iii\) A lease on a building;

\(iv\) Other infrastructure;

\(v\) Time and services contributed by volunteers;

\(vi\) Staff salaries and benefits;

\(vii\) Supplies; and

\(viii\) Other types of CSS resources as described in Section III.C.4.l.
of this NOFA.

\(c\) TANF cash benefits themselves will not be counted as leverage.

\(d\) ONLY funds and in-kind services that will be newly generated for
HOPE VI activities in this NOFA are considered CSS leverage.

\(5\) Sources of CSS Leverage. In order to achieve quantifiable
self-sufficiency results, you must form partnerships with organizations
that are skilled in the delivery of services to residents of public
housing and that can provide commitments of resources to support those
services. You must actively enlist as partners other stakeholders who
are vested in and can provide commitments of funds and in-kind services
for the CSS portion of your revitalization effort. See Section
III.C.4.m. for a list of the kinds of organizations, agencies, and other
providers that may be used as sources of CSS leverage.

**f. Access to Services.** For both on-site and any off-site units, your
overall Revitalization Plan must result in increased access to municipal
services, jobs, mentoring opportunities, transportation, and educational
facilities; i.e., the physical plan and self-sufficiency strategy must
be well-integrated and strong linkages must be established with the
appropriate federal, state, and local agencies, nonprofit organizations,
and the private sector to achieve such access.

**g. Building Standards.**

\(1\) Building Codes. All activities that include construction,
rehabilitation, lead-based paint removal, and related activities must
meet or exceed local building codes. You are encouraged to 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
[www.hud.gov/fhe/modelcodes]{.underline}**.**

\(2\) Deconstruction. HUD encourages you to design programs that
incorporate sustainable construction and demolition practices, such as
the dismantling or \"deconstruction\" of public housing units, recycling
of demolition debris, and reusing of salvage materials in new
construction. \"A Guide to Deconstruction\" can be found at
[www.hud.gov/deconstr.pdf]{.underline}.

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

\(a\) PATH's goal is to achieve dramatic improvement in the quality of
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, the list of technologies, the latest PATH
Newsletter, results from field demonstrations, and PATH projects can be
found at [www.pathnet.org]{.underline}**.**

\(4\) Energy Efficiency.

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

\(b\) HUD encourages you to set higher standards for energy and water
efficiency in HOPE VI new construction, which can achieve utility
savings of 30 to 50 percent with minimal extra cost.

\(c\) You are encouraged to negotiate with your local utility company to
obtain a lower rate. Utility rates and tax laws vary widely throughout
the country. In some areas, PHAs are exempt or partially exempt from
utility rate taxes. Some PHAs have paid unnecessarily high utility rates
because they were billed at an incorrect rate classification.

\(d\) Local utility companies may be able to provide grant funds to
assist in energy efficiency activities. States may also have programs
that will assist in energy efficient building techniques.

\(e\) You must use new technologies that will conserve energy and
decrease operating costs where cost effective. Examples of such
technologies include:

\(i\) Geothermal heating and cooling;

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

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

\(iv\) Extra insulation;

\(v\) Smart windows; and

\(vi\) Energy Star appliances.

\(5\) Universal Design. HUD encourages you to incorporate the principles
of universal design in the construction or rehabilitation of housing,
retail establishments, and community facilities, or when communicating
with community residents at public meetings or events. 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>[.]{.underline}

\(6\) Energy Star. HUD has adopted a wide-ranging energy action plan for
improving energy efficiency in all program areas. As a first step in
implementing the energy plan, HUD, the Environmental Protection Agency
(EPA), and the Department of Energy (DoE) have signed a joint
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 by homebuyers and renters. Program activities can
include developing Energy Star promotional and information materials,
outreach to low- and moderate-income renters and buyers on the benefits
and savings when using Energy Star products and appliances, and
promoting the designation of community buildings and homes as Energy
Star compliant. For further information about Energy Star, see
[http://www.energystar.gov](http://www.energystar.gov/) or call
888-STAR-YES (888-782-7937), or for the hearing-impaired, call
888-588-9920 TTY. See also the energy efficiency requirements in Section
III.C.4.g.(4) above. See Section V.9.f. of this NOFA for the Energy Star
Rating Factor.

\(7\) Lead-Based Paint. You must comply with lead-based paint evaluation
and reduction requirements as provided for under the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821, [et]{.underline}
[seq]{.underline}.). You also must comply with regulations at 24 CFR
part 35, 24 CFR 965.701, and 24 CFR 968.110(k), as they may be amended
or revised from time to time. Unless otherwise provided, you will be
responsible for lead-based paint evaluation and reduction activities.
The National Lead Information Hotline is 800-424-5323.

**h.** **Labor Standards.** The following standards must be implemented
as appropriate in regard to HOPE VI grants.

\(1\) Labor Standards.

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

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

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

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

\(2\) Exclusions. Under Section 12(b) of the 1937 Act, wage rate
requirements do not apply to individuals who:

\(a\) Perform services for which they volunteered;

\(b\) Do not receive compensation for those services or are paid
expenses, reasonable benefits, or a nominal fee for the services; and

\(c\) Are not otherwise employed in the work involved (24 CFR part 70).

\(3\) If other federal programs are used in connection with your HOPE VI
activities, labor standards requirements apply to the extent required by
the other federal programs on portions of the project that are not
subject to Davis-Bacon rates under the 1937 Act.

**i. Operation and Management Principles and Policies.**

\(1\) You and your procured property manager, if applicable, must comply
(to the extent required) with the provisions of 24 CFR part 966 in
planning for the implementation of the operation and management
principles and policies described below.

\(a\) Rewarding work and promoting family stability by promoting
positive incentives such as income disregards and ceiling rents;

\(b\) Instituting a system of local preferences adopted in response to
local housing needs and priorities, e.g., preferences for victims of
domestic violence, residency preferences, and disaster victims. Note
that local preferences for public housing must comply with Fair Housing
requirements at 24 CFR 960.206;

\(c\) Encouraging self-sufficiency by including lease requirements that
promote involvement in the resident association, performance of
community service, participation in self-sufficiency activities, and
transitioning from public housing;

\(d\) Implementing site-based waiting lists that follow project-based
management principles for the redeveloped public housing. Note that
site-based waiting lists for public housing must comply with Fair
Housing requirements at 24 CFR § 903.7(b)(2);

\(e\) Instituting strict applicant screening requirements such as credit
checks, references, home visits, and criminal records checks;

\(f\) Strictly enforcing lease and eviction provisions;

\(g\) Improving the safety and security of residents through the
implementation of defensible space principles and the installation of
physical security systems such as surveillance equipment, control
engineering systems, etc;

\(h\) Enhancing ongoing efforts to eliminate drugs and crime from
neighborhoods through collaborative efforts with federal, state, and
local crime prevention programs and entities such as:

\(i\) Local law enforcement agencies;

\(ii\) Your local United States Attorney;

\(iii\) The Weed and Seed Program, if the targeted project is located in
a designated Weed and Seed area. Operation Weed and Seed is a
multi-agency strategy that \"weeds out\" violent crime, gang activity,
drug use, and drug trafficking in targeted neighborhoods and then
\"seeds\" the target area by restoring these neighborhoods through
social and economic revitalization. Law enforcement activities
constitute the \"weed\" portion of the program. Revitalization, which
includes prevention, intervention, and treatment services as well as
neighborhood restoration, constitutes the \"seed\" element. For more
information, see the Community and Safety and Conservation website at
[www.hud.gov/offices/pih/divisions/cscd/](http://www.hud.gov/offices/pih/divisions/cscd/)[.]{.underline}

**j. Non-Fungibility for Moving To Work (MTW) PHAs.** Funds awarded
under this NOFA are not fungible under MTW agreements and must be
accounted for separately, in accordance with the HOPE VI Revitalization
Grant Agreement, the requirements in OMB Circulars A-87, "Cost
Principles Applicable to Grants, Contracts and Other Agreements with
State and Local Governments," A-133, "Audits of States, Local
Governments, and Non-Profit Organizations" and the regulations 24 CFR
part 85, "Administrative Requirements for Grants and Cooperative
Agreements to State, Local, and Federally Recognized Indian Tribal
Governments,"[,]{.underline} and GAAP.

**k. Resident and Community Involvement.**

\(1\) General. You are required to involve the affected public housing
residents, state and local governments, private service providers,
financing agencies, and developers in the planning process, proposed
implementation, and management of your Revitalization Plan. This
involvement must be continuous from the beginning of the planning
process through the implementation and management of the grant, if
awarded.

\(2\) Resident Training Session. You must conduct at least one training
session for residents of the severely distressed project on the HOPE VI
development process. HUD does not prescribe the content of this meeting.

\(3\) Public Meetings.

\(a\) You must conduct at least three public meetings with residents and
the broader community, in order to involve them in a meaningful way in
the process of developing the Revitalization Plan and preparing the
application. One of these meetings must have taken place at the
beginning of the planning process.

\(b\) These three public meetings must take place on different days from
each other and from the resident training session.

\(c\) During the course of the three meetings, you must address the
issues listed below (i.e., all issues need not be addressed at each
meeting):

\(i\) The HOPE VI planning and implementation process;

\(ii\) The proposed physical plan, including site and unit design, and
whether the unit design is in compliance with Fair Housing Act and
Uniform Federal Accessibility Standards (UFAS) standards;

\(iii\) The extent of proposed demolition;

\(iv\) Planned community and supportive service activities;

\(v\) Other proposed revitalization activities;

\(vi\) Relocation issues, including relocation planning, mobility
counseling, and maintaining the HOPE VI community planning process
during the demolition and reconstruction phases where temporary
relocation, i.e., relocation for a reasonable period (less than one
year), is involved;

\(vii\) Reoccupancy plans and policies, including site-based waiting
lists; and

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

\(4\) Accessibility. All training sessions and meetings must be held in
facilities that are accessible to persons with disabilities, provide
services such as day care, transportation, and sign language
interpreters as appropriate, and as practical and applicable, be
conducted in English and the language(s) most appropriate for the
community.

\(5\) Allowable Time Period for Training and Meetings.

\(a\) At least one public meeting, which included representation from
both the involved public housing residents and the community, must have
been held at the beginning of the revitalization planning period;

\(b\) At least one training session must have been held after the
publication date of this NOFA in the [Federal]{.underline}
[Register]{.underline}; and

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

\(d\) The above minimum number of trainings and meetings are required to
meet the Resident Involvement threshold in Section III.C. of this NOFA.
Additional meetings and trainings will be counted toward demonstration
of continual inclusion of the residents and community in the rating
factors.

l\. CSS Program Requirements.

\(1\) Term Period. CSS programs and services must last for the life of
the grant and must be carefully planned so that they will be sustainable
after the HOPE VI grant period ends.

\(2\) Allowed Funding Mechanisms:

\(a\) Maximum CSS grant amount. Consistent with Sections 24(d)(1)(L) and
24(j)(3) of the 1937 Act, you may use up to 15 percent of the total HOPE
VI grant to pay the costs of CSS activities. See Section III.B.1. of
this NOFA for CSS grant matching requirements. You may spend additional
sums on CSS activities using donations, other HUD funds made available
for that purpose, other Federal, state, local, PHA, or private-sector
donations (leverage).

\(b\) CSS Endowment Trust. Consistent with Section 24(d)(2) of the 1937
Act, you may deposit up to 15 percent of your HOPE VI grant (the maximum
amount of the award allowable for CSS activities) into an endowment
trust to provide CSS activities. In order to establish an endowment
trust, you must first execute with HUD a HOPE VI Endowment Trust
Addendum to the grant agreement. When reviewing your request to set up
an endowment trust, HUD will take into consideration your ability to pay
for current CSS activities with HOPE VI or other funds and the projected
long-term sustainability of the endowment trust to carry out those
activities.

\(3\) CSS Team and Partners.

\(a\) The term \"CSS Team\" refers to PHA staff members and any
consultants who will have the responsibility to design, implement, and
manage your CSS program.

\(b\) The term \"CSS Partners\" refers to the agencies and organizations
that you will work with to provide supportive services for residents. A
partner could be a local service organization such as a Boys or Girls
Club that donates its building and staff to the program, or an agency
such as the local Temporary Assistance for Needy Families (TANF) agency
that works with you to ensure that their services are coordinated and
comprehensive.

\(c\) Partner Agreements. There are several relationships that you may
have with your partners:

\(i\) Subgrant Agreements. You may enter into subgrant agreements with
nonprofit organizations or state or local governments for the
performance of CSS activities in accordance with your approved CSS work
plan.

\(ii\) Contracts. You may enter into a contract with for-profit
businesses, nonprofit organizations, or state or local governments for
the performance of CSS activities in accordance with your approved CSS
work plan.

\(iii\) Memoranda of Understanding (MOU). You may enter into an MOU with
any entity that furnishes CSS services for the performance of activities
in accordance with your approved CSS work plan. However, if money is to
change hands, the MOU must be formalized with a contract or subgrant.

\(iv\) Informal Relationships. You may accept assistance from partners
without prior documentation of your partner relationship. However,
informal relationships do not lend themselves to planning and should
definitely be formalized and memorialized with a binding contract or
subgrant if money changes hands.

\(4\) Tracking and Case Management. If selected, the grantee is
responsible for tracking and providing CSS programs and services to
residents currently living on the targeted public housing site and
residents already relocated from the site. It is imperative that case
management services begin immediately upon award so that residents who
will be relocated have time to participate in and benefit from CSS
activities before leaving the site, and that residents who have already
been relocated are able to participate in and benefit from CSS
activities.

\(5\) CSS Strategy and Objectives Requirements

\(a\) Transition to Housing Self-Sufficiency. One of HUD's major
priorities is to assist public housing residents in their efforts to
become financially self-sufficient and less dependent upon direct
government housing assistance. Your CSS program must include a
well-defined, measurable endeavor that will enable public housing
residents to transition to other affordable housing programs and to
market housing. Family Self-Sufficiency (FSS) and CSS activities that
are designed to increase education and income levels are considered a
part of this endeavor, as is the establishment of reasonable limits on
the length of time any household that is not headed by an elderly or
disabled person can reside in a public housing unit within a HOPE VI
Revitalization Development.

\(b\) Neighborhood Networks. All FY2005 Revitalization grantees will be
required to establish Neighborhood Networks Centers (NNC) and to promote
the inclusion of infrastructure that permits unit-based access to
broadband internet connectivity in all new and replacement public
housing units. This program provides residents with on-site access to
computer and training resources that create knowledge and experience
with computers and the Internet as tools to increase access to CSS, job
training, and the job market. Grantees may use HOPE VI funds to
establish NNCs and to provide unit-based Internet connectivity. More
information on the requirements of the NNC program is available on the
Neighborhood Networks website at
[www.hud.gov/nnw/nnwindex.html]{.underline}. There will not be a
separate FY-2005 funded NOFA for HOPE VI Neighborhood Networks programs.

\(c\) Quantifiable Goals. The objectives of your CSS program must be
results-oriented, with quantifiable goals and outcomes that can be used
to measure progress and make changes in activities as necessary.

\(d\) Appropriate Scale and Type.

\(i\) CSS activities must be of an appropriate scale, type, and variety
to meet the needs of **all** residents (including adults, seniors, youth
ages 16 to 21, and children) of the severely distressed project,
including residents remaining on-site, residents who will relocate
permanently to other PHA units or Housing Choice Voucher-assisted
housing, residents who will relocate temporarily during the construction
phase, and new residents of the revitalized units.

\(ii\) Non-public housing residents may also participate in CSS
activities, as long as the primary participants in the activities are
residents as described in Section (i) above.

\(e\) Coordination.

\(i\) CSS activities must be consistent with state and local welfare
reform requirements and goals.

\(ii\) Your CSS activities must be coordinated with the efforts of other
service providers in your locality, including nonprofit organizations,
educational institutions, and state and local programs.

\(iii\) CSS activities must be well-integrated with the physical
development process, both in terms of timing and the provision of
facilities to house on-site service and educational activities.

\(f\) Your CSS program must provide appropriate community and supportive
services to residents prior to any relocation.

**m. CSS Partnerships and Resources.** The following are the kinds of
organizations and agencies that can provide you with resources necessary
to carry out and sustain your CSS activities.

\(1\) Local Boards of Education, public libraries, local community
colleges, institutions of higher learning, nonprofit or for-profit
educational institutions, and public/private mentoring programs that
will lead to new or improved educational facilities and improved
educational achievement of young people in the revitalized development,
from birth through higher education.

\(2\) TANF agencies/welfare departments for TANF and non-TANF in-kind
services, and non-TANF cash donations, e.g., donation of TANF agency
staff. (3) Job development organizations that link private sector or
nonprofit employers with low-income prospective employees.

\(4\) Workforce Development Agencies.

\(5\) Organizations that provide residents with job readiness and
retention training and support.

\(6\) Economic development agencies such as the Small Business
Administration, which provide entrepreneurial training and small
business development centers.

\(7\) National corporations, local businesses, and other large
institutions such as hospitals that can commit to provide entry-level
jobs. Employers may agree to train residents or commit to hire residents
after they complete jobs preparedness or training programs that are
provided by you, other partners, or the employer itself.

\(8\) Programs that integrate employment training, education, and
counseling, and where creative partnerships with local boards of
education, state charter schools, TANF agencies, foundations, and
private funding sources have been or could be established, such as:

\(a\) Youthbuild. HUD\'s Youthbuild program provides grants to
organizations that provide education and job training to young adults
ages 16 to 24 who have dropped out of school. Participants spend half
their time rehabilitating low-income housing and the other half in
educational programs. Youthbuild provides a vehicle for achieving
compliance with the objective of Section 3, as described in Section
III.C.4.c. of the General Section. More information on HUD's Youthbuild
program can be found at [www.hud.gov/progdesc/youthb.cfm.]{.underline}

\(b\) Step-Up, an apprenticeship-based employment and training program
that provides career potential for low-income persons by enabling them
to work on construction projects that have certain prevailing wage
requirements. Step-Up encourages work by offering apprenticeships
through which low-income participants earn wages while learning skills
on the job, supplemented by classroom-related instruction. Step-Up can
also contribute to a PHA's effort to meet the requirements of Section 3.
More information can be found at
[www.hud.gov/progdesc/stepup.cfm]{.underline}.

\(9\) Sources of capital such as foundations, banks, credit unions, and
charitable, fraternal, and business organizations.

\(10\) Nonprofit organizations such as the Girl Scouts and the Urban
League, each of which has a Memorandum of Agreement (MOA) with HUD.
Copies of these MOAs can be found on the Community and Supportive
Services page of the HOPE VI website at
[www.hud.gov/hopevi.]{.underline}

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

\(12\) Local area agencies on aging.

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

\(14\) Nonprofit organizations such as grassroots faith-based and other
community-based organizations. HUD encourages you to partner or subgrant
with nonprofit organizations, including grassroots faith-based and other
community-based organizations, to provide CSS activities. Such
organizations have a strong history of providing vital community
services such as job training, childcare, relocation supportive
services, youth programs, technology training, transportation, substance
abuse programs, crime prevention, health services, assistance to the
homeless and homelessness prevention, counseling individuals and
families on fair housing rights, providing elderly housing
opportunities, and homeownership and rental housing opportunities in the
neighborhood of their choice. HUD believes that grassroots
organizations, e.g., civic organizations, faith-communities, national
and local self-help homeownership organizations, faith-based, and other
community-based organizations should be more effectively used, and has
placed a high priority on expanding opportunities for grassroots
organizations to participate in developing solutions for their own
neighborhoods. See HUD's Center for Faith-Based and Community
Initiatives website at
[www.hud.gov/offices/fbci/index.cfm]{.underline}**.**

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

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

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

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

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

\(1\) Site and Neighborhood Standards for Replacement Housing. You must
comply with the Fair Housing Act and Title VI of the Civil Rights Act of
1964, and regulations thereunder. In determining the location of any
replacement housing, you must comply with either the site and
neighborhood standards regulations at 24 CFR § 941.202 (b)-(d) or with
the standards outlined in this NOFA. Because the objective of the HOPE
VI program is to alleviate distressed conditions at the development and
in the surrounding neighborhood, replacement housing under HOPE VI that
is located on the site of the existing development or in its surrounding
neighborhood will not require independent approval by HUD under Site and
Neighborhood Standards. The term \"surrounding neighborhood\" means the
neighborhood within a three-mile radius of the site of the existing
development.

\(a\) HOPE VI Goals Related to Site and Neighborhood Standards. You are
expected to ensure that your revitalization plan will expand assisted
housing opportunities outside low-income areas and areas of minority
concentration and will accomplish substantial revitalization in the
project and its surrounding neighborhood. You are also expected to
ensure that eligible households of all races and ethnic groups will have
equal and meaningful access to the housing.

\(b\) Objectives in Selecting HUD-Assisted Sites. The fundamental goal
of HUD's fair housing policy is to make full and free housing choice a
reality. Housing choice requires that households of all races and
ethnicity, or with disabilities, can freely decide the type of
neighborhood where they wish to reside, that minority neighborhoods are
no longer deprived of essential public and private resources, and that
stable, racially-mixed neighborhoods are available as a meaningful
choice for all. To make full and free housing choice a reality, sites
for HUD-assisted housing investment should be selected so as to advance
two complementary goals:

\(i\) Expand assisted housing opportunities in non-minority
neighborhoods, opening up choices throughout the metropolitan area for
all assisted households; and

\(ii\) Reinvest in minority neighborhoods, improving the quality and
affordability of housing there to represent a real choice for assisted
households.

\(c\) Compliance with Fair Housing Act, Title VI of the Civil Rights Act
of 1964, and Section 504 of the Rehabilitation Act of 1973. You must
comply with the Fair Housing Act, Title VI of the Civil Rights Act of
1964, Section 504 of the Rehabilitation Act of 1973, and implementing
regulations in determining the location of any replacement housing.

\(d\) Grantee Election of Requirements. You may, at your election,
separately with regard to each site you propose, comply with the
development regulations regarding Site and Neighborhood Standards (24
CFR 941.202 (b)-(d)), or with the Site and Neighborhood Standards
contained in this Section.

\(e\) Replacement housing located on site or in the surrounding
neighborhood. Replacement housing under HOPE VI that is located on the
site of the existing project or in its surrounding neighborhood will not
require independent approval under Site and Neighborhood Standards,
since HUD will consider the scope and impact of the proposed
revitalization to alleviate severely distressed conditions at the public
housing project and its surrounding neighborhood in assessing the
application to be funded under this NOFA.

\(f\) Off-Site Replacement Housing Located Outside of the Surrounding
Neighborhood. Unless you demonstrate that there are already significant
opportunities in the metropolitan area for assisted households to choose
non-minority neighborhoods (or these opportunities are under
development), HOPE VI replacement housing not covered by Section (e)
above may not be located in an area of minority concentration (as
defined in paragraph (g) below) without the prior approval of HUD. Such
approval may be granted if you demonstrate to the satisfaction of HUD
that:

\(i\) You have made determined and good faith efforts, and found it
impossible with the resources available, to acquire an appropriate
site(s) in an area not of minority concentration; or

\(ii\) The replacement housing, taking into consideration both the CSS
activities or other revitalizing activities included in the
Revitalization plan, and any other revitalization activities in
operation or firmly planned, will contribute to the stabilization or
improvement of the neighborhood in which it is located, by addressing
any serious deficiencies in services, safety, economic opportunity,
educational opportunity, and housing stock.

\(g\) Area of Minority Concentration. The term \"area of minority
concentration\" is any neighborhood in which:

\(i\) The percentage of households in a particular racial or ethnic
minority group is at least 20 percentage points higher than the
percentage of that minority group for the housing market area; i.e., the
Metropolitan Statistical Area (MSA) in which the proposed housing is to
be located; (ii) The neighborhood's total percentage of minority persons
is at least 20 percentage points higher than the total percentage of all
minorities for the MSA as a whole; or

\(iii\) In the case of a metropolitan area, the neighborhood's total
percentage of minority persons exceeds 50 percent of its population.

\(2\) Housing and Services for Persons with Disabilities.

\(a\) Accessibility Requirements. HOPE VI developments are subject to
the accessibility requirements contained in several federal laws. All
applicable laws must be read together and followed. PIH Notice 2003-31,
available at
[http://www.hud.gov/offices/pih/publications/notices/]{.underline}, and
subsequent updates, provides an overview of all pertinent laws and
implementing regulations pertaining to HOPE VI. All HOPE VI multifamily
housing projects, whether they involve new construction and
rehabilitation, are subject to the Section 504 accessibility
requirements described in 24 CFR Part 8. See in particular, 24 CFR
§§8.20-8.24. In addition, under the Fair Housing Act, all new
construction of covered multifamily buildings must contain certain
features of accessible and adaptable design. Units covered are all those
in elevator buildings with four or more units and all ground floor units
in buildings without elevators. The relevant accessibility requirements
are provided in HUD's FHEO website at
[www.hud.gov/groups/fairhousing.cfm]{.underline}.

\(b\) Specific Fair Housing requirements are:

\(i\) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 24 CFR
part 100.

\(ii\) The prohibitions against discrimination on the basis of
disability, including requirements that multifamily housing projects
comply with the Uniform Federal Accessibility Standards, and that you
make reasonable accommodations to individuals with disabilities under
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
regulations at 24 CFR part 8.

\(iii\) Title II of the Americans with Disabilities Act (42 U.S.C 12101
[et]{.underline} [seq]{.underline}.) and its implementing regulations at
28 CFR part 35.

\(iv\) The Architectural Barriers Act of 1968 (42 U.S.C. 4151) and the
regulations at 24 CFR part 40.

\(c\) Accessible Technology. The Rehabilitation Act Amendments of 1998
apply to all electronic information technology (EIT) used by a grantee
for transmitting, receiving, using, or storing information to carry out
the responsibilities of any federal grant awarded. It includes, but is
not limited to, computers (hardware, software, word processing, email,
and web pages) facsimile machines, copiers, and telephones. When
developing, procuring, maintaining, or using EIT, grantees must ensure
that the EIT allows:

\(i\) Employees with disabilities to have access to and use information
and data that is comparable to the access and use of data by employees
who do not have disabilities; and

\(ii\) Members of the public with disabilities seeking information or
service from a grantee must have access to and use of information and
data that is comparable to the access and use of data by members of the
public who do not have disabilities. If these standards impose an undue
burden on a grantee, they may provide an alternative means to allow the
individual to use the information and data. No grantee will be required
to provide information services to a person with disabilities at any
location other than the location at which the information services are
generally provided.

o\. Relocation Requirements.

\(1\) Requirements.

\(a\) You must carry out relocation activities in compliance with a
relocation plan that conforms to the following statutory and regulatory
requirements, as applicable:

\(i\) Relocation or temporary relocation carried out as a result of
**rehabilitation** under an approved Revitalization plan is subject to
the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA), the URA regulations at 49 CFR part 24, and
regulations at 24 CFR § 968.108 or successor part.

\(ii\) Relocation carried out as a result of **acquisition** under an
approved Revitalization plan is subject to the URA and regulations at 24
CFR 941.207 or successor part.

\(iii\) Relocation carried out as a result of **disposition** under an
approved Revitalization plan is subject to Section 18 of the 1937 Act,
as amended.

\(iv\) Relocation carried out as a result of demolition under an
approved Revitalization plan is subject to the URA regulations at 24 CFR
part 24.

\(b\) You must provide suitable, accessible, decent, safe, and sanitary
housing for each family required to relocate as a result of
revitalization activities under your Revitalization plan. Any person
(including individuals, partnerships, corporations, or associations) who
moves from real property or moves personal property from real property
directly (1) because of a written notice to acquire real property in
whole or in part, or (2) because of the acquisition of the real
property, in whole or in part, for a HUD-assisted activity, is covered
by federal relocation statute and regulations. Specifically, this type
of move is covered by the acquisition policies and procedures and the
relocation requirements of the URA, and the implementing government-wide
regulation at 49 CFR part 24, and Notice CPD 04‑02, "Revision to [Notice
CPD
02-8](http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=CPDN&s1=@docn&l=100&SECT1=TXTHLB&SECT5=HEHB&u=./nph-brs.cgi?d=CPDN&s1=02-8[no]&SECT1=TXTHLB&SECT5=CPDN&u=./hudclips.cgi&p=1&r=1&f=G)
, Guidance on the Application of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (URA), as Amended, in
HOPE VI Projects". The relocation requirements of the URA and the
government-wide regulations, as well as CPD Notice 02-08, cover any
person who moves permanently from real property or moves personal
property from real property directly because of acquisition,
rehabilitation, or demolition for an activity undertaken with HUD
assistance.

\(2\) Relocation Plan. Each applicant must complete a HOPE VI Relocation
plan in accordance with the requirements stated in Section IV.B. of this
NOFA.

\(a\) The HOPE VI Relocation plan is intended to ensure that PHAs adhere
to the URA and that all residents who have been or will be temporarily
or permanently relocated from the site are provided with CSS activities
such as mobility counseling and direct assistance in locating housing.
Your HOPE VI Relocation plan must serve to minimize permanent
displacement of current residents of the public housing site who **wish
to remain in or return to** the revitalized community. Your HOPE VI
Relocation plan must also furnish alternative permanent housing for
current residents of the public housing site who **do not** wish to
remain in or return to the revitalized community. Your CSS program must
provide for the delivery of community and supportive services to
residents prior to any relocation, temporary or permanent.

\(b\) You are encouraged to involve HUD-approved housing counseling
agencies, including faith-based, nonprofit and other organizations, and
individuals in the community to which relocatees choose to move, in
order to ease the transition and minimize the impact on the
neighborhood. HUD will view favorably innovative programs such as
community mentors, support groups, and the like.

\(c\) If applicable, you are encouraged to work with surrounding
jurisdictions to assure a smooth transition if residents choose to move
from your jurisdiction to the surrounding area.

**p. Well-Functioning Communities**. See Section V.A.8. of this NOFA for
requirements that the unit mix of on-site, off-site and homeownership
units create a well-functioning community.

**q. Soundness of Approach: Design.** HUD is seeking excellence in
design. You must carefully select your architects and planners, and
enlist local affiliates of national architectural and planning
organizations such as the American Institute of Architects, the American
Society of Landscape Architects, the American Planning Association, the
Congress for the New Urbanism, and the department of architecture at a
local college or university to assist you in assessing qualifications of
design professionals or participating on a selection panel that results
in the procurement of excellent design services.

You should select a design team that is committed to a process in which
residents, including young people and seniors, the broader community,
and other stakeholders participate in designing the new community.

Your proposed site plan, new units, and other buildings must be designed
to be compatible with and enrich the surrounding neighborhood. Local
architecture and design elements and amenities should be incorporated
into the new or rehabilitated homes so that the revitalized sites and
structures will blend into the broader community and appeal to the
market segments for which they are intended. Housing, community
facilities, and economic development space must be well integrated. You
must select members of your team who have the ability to meet these
requirements.

**r.** **Internet Access.** You must have access to the Internet and
provide HUD with email addresses of key staff and contact people.

**5. Number of Units.** The number of units that you plan to develop
should reflect your need for replacement units, the need for other
affordable units and the market demand for market units, along with
financial feasibility. The total number of units to be developed may be
less than, or more than, the original number of public housing units in
the targeted public housing project. HUD will review requests to
revitalize projects with small numbers of units on an equal basis with
those with large numbers of units.

**6. Environmental Requirements.**

a\. HUD Approval. HUD notification that you have been selected to
receive a HOPE VI grant constitutes only preliminary approval. Grant
funds may not be released under this NOFA (except for activities that
are excluded from environmental review under 24 CFR part 58 or 50) until
the responsible entity, as defined in 24 CFR 58.2(a)(7), completes an
environmental review and you submit and obtain HUD approval of a request
for release of funds and the responsible entity's environmental
certification in accordance with 24 CFR part 58 (or HUD has completed an
environmental review under 24 CFR part 50 where HUD has determined to do
the environmental review).

b\. Responsibility. If you are selected for funding and an environmental
review has not been conducted on the targeted site, the responsible
entity must assume the environmental review responsibilities for
projects being funded by HOPE VI. If you object to the responsible
entity conducting the environmental review, on the basis of performance,
timing, or compatibility of objectives, HUD will review the facts and
determine who will perform the environmental review. At any time, HUD
may reject the use of a responsible entity to conduct the environmental
review in a particular case on the basis of performance, timing, or
compatibility of objectives, or in accordance with 24 CFR 58.77(d)(1).
If a responsible entity objects to performing an environmental review,
or if HUD determines that the responsible entity should not perform the
environmental review, HUD may designate another responsible entity to
conduct the review or may itself conduct the environmental review in
accordance with the provisions of 24 CFR part 50. You must provide any
documentation to the responsible entity (or HUD, where applicable) that
is needed to perform the environmental review.

c\. 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. A Phase I assessment is required
whether the environmental review is completed under 24 CFR part 50 or 24
CFR part 58. The results of the Phase I assessment must be included in
the documents that must be provided to the responsible entity (or HUD)
for the environmental review. If the Phase I assessment recognizes
environmental concerns or if the results are inconclusive, a Phase II
environmental site assessment will be required.

d\. Request for Release of Funds. You, and any participant in the
development process, may not undertake any actions with respect to the
project that are choice-limiting or could have environmentally adverse
effects, including demolishing, acquiring, rehabilitating, converting,
leasing, repairing, or constructing property proposed to be assisted
under this NOFA, and you, and any participant in the development
process, may not commit or expend HUD or local funds for these
activities, until HUD has approved a Request for Release of Funds
following a responsible entity's environmental review under 24 CFR part
58, or until HUD has completed an environmental review and given
approval for the action under 24 CFR part 50. In addition, you must
carry out any mitigating/remedial measures required by the responsible
entity (or HUD). If a remediation plan, where required, is not approved
by HUD and a fully-funded contract with a qualified contractor licensed
to perform the required type of remediation is not executed, HUD
reserves the right to determine that the grant is in default.

e\. If the environmental review is completed before HUD approval of the
HOPE VI Supplemental Submissions and you have submitted your Request for
Release of Funds (RROF), the supplemental submissions approval letter
shall state any conditions, modifications, prohibitions, etc. as a
result of the environmental review, including the need for any further
environmental review. You must carry out any mitigating/remedial
measures required by HUD, or select an alternate eligible property, if
permitted by HUD. If HUD does not approve the remediation plan and a
fully funded contract with a qualified contractor licensed to perform
the required type of remediation is not executed, HUD reserves the right
to determine that the grant is in default.

f\. If the environmental review is not completed and you have not
submitted the RROF before HUD approval of the supplemental submissions,
the letter approving the supplemental submissions will instruct you and
any participant in the revitalization process to refrain from
undertaking, obligating, or expending funds on physical activities or
other choice-limiting actions until HUD approves your RROF and the
related certification of the responsible entity (or HUD has completed
the environmental review). The supplemental submissions approval letter
also will advise you that the approved supplemental submissions may be
modified on the basis of the results of the environmental review.

g\. There must not be any environmental or public policy factors such as
sewer moratoriums that would preclude development in the requested
locality. You will certify to this when signing the HOPE VI
Revitalization Grant Application Certifications.

h\. HUD's environmental website is located at
<http://www.hud.gov/offices/cpd/energyenviron/environment/index.cfm>

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

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

\(2\) Affirmatively Furthering Fair Housing;

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

\(4\) Executive Order 13166, Improving Access to Services for Persons
With Limited English Proficiency (LEP);

\(5\) Accessible Technology;

\(6\) Procurement of Recovered Materials;

\(7\) Participation in HUD-Sponsored Program Evaluation;

\(8\) Executive Order 13202, Preservation of Open Competition and
Government Neutrality Towards Government Contractors\' Labor Relations
on Federal and Federally Funded Construction Projects;

\(9\) OMB Circulars and Government-wide Regulations Applicable to
Financial Assistance Programs; and

\(10\) Drug-Free Workplace.

#### IV. Application and Submission Information: 

**A. Addresses to Request Application Package.**

**1. Obtaining the NOFA.** Copies of this published NOFA and application
forms for this program may be downloaded from the grants.gov website at
http://[www.grants.gov](http://www.grants.gov/). If you have difficulty
accessing the information you may call the grants.gov help line
toll-free at (800) 518-GRANTS or e-mailing \<<support@grants.gov>\>.
Help line customer representatives will assist you in accessing the
information. For general information, you can contact the NOFA
Information Center at (800) HUD-8929. If you are hearing impaired, you
may reach the NOFA Information Center through (800) HUD-2209 (TTY)
(these are toll-free numbers).

**2. Federal Register.** 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 by
the above website, the [Federal]{.underline} [Register]{.underline}
publication prevails. Please be sure to review your application
submission against the requirements in the [Federal
Register]{.underline} file of the NOFA.

**3. Application Kits.** There are no application kits for our programs
this year. All the information you need to apply will be in the NOFA and
available on the Internet.

**4. Corrections to the NOFA**. Corrections to the NOFA will be posted
to the grants.gov website, as described above. Any technical corrections
will also be published in the [Federal]{.underline}
[Registe]{.underline}r. As with the original NOFA, 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 by the above website, the [Federal]{.underline}
[Register]{.underline} publication prevails. Applicants are responsible
for monitoring these websites and the [Federal]{.underline}
[Register]{.underline} during the application preparation period.

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

**1.** **General**

**a.** [Electronic Signature]{.underline}. Applications submitted
through grants.gov constitute submission as electronically signed
applications. The registration and e-authentication process establishes
the Authorized Organization Representative AOR). When you submit the
application through Grants.gov, the name of your authorized organization
representative on file will be inserted into the signature line of the
application. **Applicants must register the individual who is able to
make legally binding commitments for the applicant organization as the
Authorized Organization Representative (AOR).**

**b. Manual Signatures.** If your organization is granted a waiver to
the electronic application submission requirement, you should follow the
following instructions regarding manual signatures. Unless otherwise
indicated, the Executive Director of the applicant PHA, or his or her
designee, must sign each form or certification that is required to be
submitted with the application, whether part of an attachment or a
standard certification. Signatures need not be original in the duplicate
Headquarters copy and the duplicate field office copy.

**c. Manual Page Layout.** If you are granted a waiver to the electronic
submission requirement:

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

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

(3). All margins should be approximately 1 inch. If any margin is
smaller than ½ inch the page will be counted as two pages;

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

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

\(6\) If a section is not applicable, omit it; do not insert a page
marked n/a;

\(7\) Mark each Exhibit and Attachment with the appropriate tab listed
in section IV.B.2. and in the Submission Instructions. 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 on a page. Shrunken
pages will be counted as multiple pages;

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

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

**d. Manual Page Count.** If you are granted a waiver to the electronic
submission requirement:

\(1\) Narrative Exhibits.

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

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

\(2\) Attachments.

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

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

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

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

\(b\) Attachments that provide documentation of commitments from
resource providers or CSS providers.

\(c\) Attachments that provide documentation of site control and site
acquisition in accordance with Section IV.B.4. of this NOFA.

\(d\) Narratives and Attachments, as relevant, required to be submitted
only by existing HOPE VI Revitalization grantees in accordance with
Sections V.A.1.of this NOFA (Capacity).

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

e.  **Electronic Format.**

    1.  Exhibits. Exhibits are as listed in Section IV.B.2.a. of this
        NOFA. Each Exhibit should be contained in a separate file and
        section of the application. Each file should contain one title
        page.

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

            i.  Each title page should only contain:

                A.  The name of the Exhibit, as described in Section
                    IV.B.2.a. of this NOFA, e.g., "Narrative Exhibit A:
                    Summary Information";

                B.  The name of the applicant; and

                C.  The name of the file that contains the Exhibit.

        b.  Exhibit File Names and Types.

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

            ii. Each file within the ZIP file must be formatted so it
                can be read by MS Word 2000 (.DOC).

            iii. Each file name must include the information below, in
                 the order stated:

                 A.  Short version of applicant's name, e.g., town,
                     city, county/parish, etc., and state; and

                 B.  The word "Exhibit" and the Exhibit letter (A
                     through I), as listed in Section IV.B.2.a. of this
                     NOFA;

                 C.  An example of an Exhibit file name is, "Atlanta GA
                     Exhibit A."

    2.  Attachments. Attachments are as listed in Section IV.B.2.b. of
        this NOFA. Each Attachment should be contained in a separate
        file and section of the application. Each Attachment that is not
        a HUD Form should contain one title page.

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

            i.  Each title page should only contain:

                A.  The name of the Attachment, as described in Section
                    IV.B.2.b. of this NOFA, e.g., "Attachment 10:
                    Extraordinary Site Costs Certification";

                B.  The name of the applicant; and

                C.  The name of the file that contains the Attachment.

        b.  Attachment File Names and Types.

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

            ii. Each file within the ZIP file must be formatted so it
                can be read by MS Excel (.XLS) or Adobe Acrobat (.PDF).

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

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

                C.  Third-party documents, e.g., leverage commitment
                    letters, pictures, etc., should be submitted in
                    Adobe Acrobat (PDF) format.

            iii. Each file name must include the information below, in
                 the order stated:

                 A.  Short version of applicant's name, e.g., town,
                     city, county/parish, etc., and state; and

                 B.  The word "Attachment" and the Attachment number (1
                     through 41), as listed in Section IV.B.2.b. of this
                     NOFA;

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

    3.  Maximum Length of Application.

        i.  Page Definition and Format.

            A.  For Exhibits, a "page" contains a maximum of 23
                double-spaced lines. The length of each line must be a
                maximum of 6 ½ inches. This is the equivalent of
                formatting to be printed on 8 ½" x 11" paper, with one
                inch top, bottom, left and right margins. The font must
                be 12-point Times New Roman. Each page must be numbered.

            B.  For Attachments, an applicant formatted text page is
                defined as in (A) above. Third-party documents converted
                into PDF format must not be shrunk to fit more than one
                original page on each application page. Pages of HUD
                Forms and certification formats furnished by HUD are as
                numbered by HUD.

            C.  The maximum total length of the Exhibits and of the
                Attachments is as stated in Section IV.B.1.d. above.

d\. See Section IV.F. of the General Section for instructions on how to
electronically submit third-party and large documents (i.e., documents
81/2 by 14-inch, etc.).

**2.** **Application Content.** The following is a list of narrative
exhibits and attachments that are required as part of the application.
Non-submission of these items may lower your rating score or make you
ineligible for award under this NOFA. Review the threshold requirements
in Section III.C. of this NOFA 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 [Grants.gov]{.underline}. Applicants that are granted a
waiver to the electronic submission requirement must include the
narrative exhibits and attachments in the application in the order
listed below.

a\. Narrative Exhibits.

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

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

(3) HOPE VI Revitalization Application Table of Contents

(4) Narrative Exhibit A: Summary Information

(5) Narrative Exhibit B: Capacity

(6) Narrative Exhibit C: Need

(7) Narrative Exhibit D: Resident and Community Involvement

(8) Narrative Exhibit E: Community and Supportive Services

(9) Narrative Exhibit F: Relocation

(10) Narrative Exhibit G: Fair Housing and Equal Opportunity

(11) Narrative Exhibit H: Well-Functioning Communities

(12) Narrative Exhibit I: Soundness of Approach

**b. Attachments.**

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

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

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

(4) Attachment 10: Extraordinary Site Costs Certification

(5) Attachment 11: Cost Control Standards Certification

(6) Attachment 12: City Map

(7) Attachment 13: Developer Certification

(8) Attachment 14: Property Management Policy Certification
    Documentation

(9) Attachment 15: Program Schedule

(10) Attachment 16: Certification of Severe Physical Distress

(11) Attachment 17: Photographs of the Severely Distressed Housing

(12) Attachment 18: Neighborhood Conditions

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

(14) Attachment 23: HOPE VI Revitalization Resident Training & Public
     Meeting Certification, form HUD-52785

(15) Attachment 24: Commitments with CSS Providers

(16) Attachment 25: Relocation Plan Certification Documentation

(17) Attachment 26: Completed Relocation Certification Documentation

(18) Attachment 27: Documentation of Site Control for Off-Site Public
     Housing

(19) Attachment 28: Documentation of Environmental, & Neighborhood
     Standards

(20) Attachment 29: Preliminary Market Assessment Letter

(21) Attachment 30: Zoning Approval Certification or Documentation

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

(23) Attachment 32: Current Site Plan

(24) Attachment 33: Photographs of Architecture in the Surrounding
     Community

(25) Attachment 34: Conceptual Site Plan

(26) Attachment 35: Conceptual Building Elevations

(27) Attachment 36: Evaluation Commitment Letter(s)

(28) Attachment 37: Portions of the PHA Plan

(29) Attachment 38: Logic Model, form HUD-96010

(30) Attachment 39: America's Affordable Communities Initiative,
     form HUD‑27300

(31) Attachment 40: HOPE VI Revitalization Application Certifications

(32) Attachment 41: Standard Forms and Certifications

\(a\) Disclosure of Lobbying Activities, Standard Form LLL, as
applicable

\(b\) Applicant/Recipient Disclosure/Update Report, form HUD-2880,

\(c\) Funding Application, Section 8 Tenant-Based Assistance Rental
Certificate Program, Rental Voucher Program, form HUD-52515, if
applicable.

**3. Match Documentation.** If the commitment document for any match
funds/in-kind services is not included in the application and provided
before the NOFA submission date, the related match will not be
considered. Depending upon the specific Memorandum of Understanding
(MOU), the MOU alone may not firmly and irrevocably commit Match funds,
e.g., the MOU states that a donation agreement may be discussed in the
future. If the MOU does firmly and irrevocably commit funds, the MOU
language that does so should be highlighted or mentioned in the
application. To ensure inclusion of Match funds, MOUs should be
accompanied by commitment letters or contracts. This is not a technical
deficiency and cannot be corrected during the deficiency period. If the
match is not met, the application will not be considered for funding.

**4.** **Threshold Documentation.**

**a. Appropriateness of Proposal.** In accordance with Section 24(e)(1)
of the 1937 Act, each application must demonstrate the appropriateness
of the proposal in the context of the local housing market **relative to
other alternatives**. You must briefly discuss other possible
alternatives to your proposal and explain why your plan is more
appropriate. This is a statutory requirement and an application
threshold. Any deficiencies in your narrative may not be corrected after
the application is submitted. For examples of alternative proposals, see
the Appropriateness of Proposal Threshold in Section III.C.

**b. Contiguous, Single, and Scattered-Site Projects.** If you include
more than one project in your application, you must provide a map that
clearly indicates that the projects are within a quarter-mile of each
other. See Section III.C.1.c of this NOFA for more information.

**c. Non-Public Housing Funding for Non-Public Housing or Replacement
Units.** Public Housing funds must only be used to develop Replacement
Housing Units. You must demonstrate that you have sufficient non-Public
Housing Leverage funds to develop all housing units that do not qualify
as Replacement Housing. See Section I.C.3. of this NOFA for the
definition of Replacement Housing.

**d. Program Schedule.** Your application must contain a program
schedule that provides a feasible plan to meet the schedule requirements
of Section VI.B.. of this NOFA, with no impediments such as litigation
that would prevent timely startup. The program schedule must indicate
the date when the development proposal, i.e., whether public housing
development, mixed-finance development, homeownership development, etc.,
for each phase of the revitalization plan will be submitted to HUD.
**For application evaluation only,** you should assume the following
award and post-award dates.

  ------------------------------------------------ ----------------------
  Milestone                                        Date

  Grant Award                                      April 1, 2006

  Grant Agreement Execution                        July 1, 2006

  HUD's written request for Supplemental           August 1, 2006
  Submissions                                      

  HUD's approval of Supplemental Submissions       September 1, 2006
  ------------------------------------------------ ----------------------

If grant award takes place after April 1, 2006, the grantee's program
schedule may be changed in the supplemental submissions to account for
the period of time between April 1, 2006, and the actual date of grant
award.

**e. Site Control.** If you propose to develop off-site housing in any
phase of your proposed revitalization plan, you MUST provide evidence in
your application that you (not your developer) have site control of the
property(ies). Evidence may include an option to purchase the property,
a sales agreement, a land swap, or a deed. Evidence may not include a
letter from the Mayor or other official, letters of support from members
of the appropriate municipal entities, or a resolution evidencing the
PHA's intent to exercise its power of eminent domain. Evidence of site
control may only be made contingent upon the receipt of the HOPE VI
grant, satisfactory compliance with the environmental review
requirements in accordance with this NOFA, and the site and neighborhood
standards in Section III.C.4.n.(1) of this NOFA.

**f. Zoning Approval.**

\(a\) If you are proposing to use off-site parcels of land for housing
development or other uses that, until this point in time, have been
zoned for a purpose different than the one proposed in your
revitalization plan, your application must include:

\(i\) a certification from the appropriate local official documenting
that all required zoning approvals have been secured for such parcels;
or,

\(ii\) the actual zoning approval document for the parcel(s).

\(b\) If you are proposing to use off-site parcels of land for housing
development or other uses and those parcels are already zoned for your
chosen use, your application must include a certification signed by the
Executive Director stating that all zoning is correct.

\(c\) For example, if you propose to develop housing on land that is
currently zoned as parkland, you must provide evidence in the
application that the zoning change has been secured to permit housing
development. If you propose to keep the land as parkland, you must
provide a certification in the application that the zoning is for
parkland.

**5.** **Certification Thresholds Documentation.**

Omission of, or incorrect/improper signature on, any of the following
documents is considered a technical deficiency and must be cured
(corrected) within the cure period stated in Section V.B. of the General
Section. Applications that remain deficient after the cure period will
not be considered for funding.

**a. Market-rate Housing: Market Assessment Letter.**

\(1\) If you include market-rate housing, community facilities (if
market-driven, a community facility that is primarily intended to
facilitate the delivery of community and supportive services for
residents of the targeted severely distressed public housing project and
of off-site replacement housing does not need to be addressed in the
market assessment letter, e.g., a YMCA), economic development and retail
structures in your Revitalization plan, you must demonstrate that there
is a demand for these market-rate housing units, community facilities,
economic development and retail structures of the type, number, and size
proposed in the location you have chosen.

\(2\) In your application you must provide a preliminary market
assessment letter prepared by an independent, third party, credentialed
market research firm, or professional that describes its assessment of
the demand and associated pricing structure for the proposed residential
units and any community facilities, economic development, and retail
structures, based on the market and economic conditions of the project
area.

\(3\) If, after the cure period, this letter is not included in your
application, the application will not be considered for funding.

**b. HOPE VI Revitalization Applicant Certifications.** The Chairman of
your Board of Commissioners must certify to the requirements listed in
the HOPE VI Revitalization Applicant Certifications. A suggested format
for this certification is provided on the Internet at
<http://www.hud.gov/offices/adm/grants/fundsavail.cfm>.

c\. Operation and Management Principles and Policies Certification. You
must certify that you will implement the Operation and Management
Principles and Policies stated in Section III.C. of this NOFA. The
certification should reference 24 CFR part 966 and should outline the
requirements in Section III.C.4.i. If, after the deficiency cure period,
this certification is not properly included in your application, the
application will not be considered for funding.

**d. Relocation Plan Certification.** You must certify that the HOPE VI
Relocation plan has been completed and that it conforms to the URA
requirements, and that it implements the goals stated in V.A.6. of this
NOFA.

\(a\) You must certify that the HOPE VI Relocation Plan has been
completed and:

\(i\) That it conforms to the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (URA) requirements as
described in Sections III.C.4. of this NOFA; and

\(ii\) That it implements HOPE VI relocation goals, as described in
Section V.A.6. of this NOFA.

\(b\) If relocation was completed (i.e., the targeted public housing
site is vacant) as of the application submission date, rather than
certifying that the HOPE VI Relocation Plan has been completed, you must
certify that the relocation was completed in accordance with URA
requirements.

\(c\) If, after the deficiency cure period, this certification is not
properly included in your application, the application will not be
considered for funding.

**e. Resident Involvement in the Revitalization Program Certification.**
You must submit a signed certification that resident training sessions
and public meetings were held and that you involved affected public
housing residents at the beginning and during the planning process for
the revitalization program, prior to submission of an application. The
certification must state that listed topics, as described in Section
III.C.4. of this NOFA, were covered, that one of the meetings took place
at the beginning of the revitalization planning process, and that two of
the meetings and one training session took place after the publication
date of this NOFA in the [Federal]{.underline} [Register]{.underline}.
The certification must include the dates of the training session and
meetings. The certification must show that each of the public meetings
and resident training took place on different days. If, after the
deficiency cure period, this certification is not properly included in
your application, the application will not be considered for funding.

**f. Severely Distressed Certification.** You must certify that the
target project is severely distressed. See Section I.C. of this NOFA for
the definition of "severely distressed." In order to certify to severe
physical distress, your application must include a certification that is
signed by an engineer or architect licensed by a state licensing board.
The license does not need to have been issued in the same state as the
severely distressed project. The engineer or architect must include his
or her license number and state of registration on the certification.
The engineer or architect may not be an employee of the housing
authority or the city. A format for a Certification of Severe Physical
Distress is provided on the Internet at
[http://www.grants.gov](http://www.grants.gov/).

**g. Selection of Developer.** In order to be eligible for funding, you
must provide a signed certification that:

\(1\) You have initiated an RFQ by the required application submission
date for the competitive procurement of a developer for your first phase
of construction. It is not necessary to have executed a Master
Development Agreement with the selected developer in order to meet the
threshold; or,

\(2\) You will act as your own developer for the proposed project.

**h. Cost Control Standards Certification.** You must include a
certification by an independent cost estimator, architect, engineer,
contractor, or other qualified third party professional that your cost
estimates meet the standards of Section IV.E. of this NOFA. The
certifier cannot work for you.

**i. Standard Forms and Certifications.**

\(1\) The last part of your application will be comprised of standard
certifications common to many HUD programs. Required forms are included
in the HOPE VI Application and will be available electronically on the
grants.gov website.

\(2\) For applicants who are granted a waiver to the electronic
application process, these forms must be placed at the back of the
application, except for the Application for Federal Assistance (SF-424)
and the Acknowledgment of Application Receipt (HUD-2993). These two
forms must be the first two pages of your application.

**j. TDC and Extraordinary Site Costs Certification.**

\(1\) An Extraordinary Site Costs Certification must be included in your
application if such costs are included in the calculations you used to
determine your requested award amount. If this certification is not
included in the application on or before the end of the deficient
application cure period, extraordinary site costs will not be allowed in
the award amount.

\(2\) The certification must be signed by a licensed engineer or
architect who is not an employee of the housing authority or the city.
The certification must include an engineer's or architect's license
number and state of registration.

**6. Rating Factor Documentation.** To receive points for certain rating
factors, you must include specific documentation that is stated in this
NOFA. When specific documentation is necessary, that documentation is
stated in this section of the NOFA or is cross-referenced here and is
included with the related rating factors in Section V.A. of this NOFA.

**a. Documentation for Capacity.** See Section V.A.1. of this NOFA for
documentation requirements. Include information on capacity in Exhibits
B and E. HUD will obtain information on Capital Fund Program
availability internally. However, you must include information from your
PHA Plan on Capital Fund Program funds that are planned for other uses.
HUD will also obtain information on you scores for the [Public Housing
Assessment
System](http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr;sid=cca89c2e26beb128f450e112b8d636c0;rgn=div5;view=text;node=24%3A4.0.3.1.2;idno=24;cc=ecfr)
(PHAS) and Section 8 Management Assessment Program (SEMAP) internally.

**b. Documentation for Need.**

\(1\) State the number of units that you currently have under ACC.

\(2\) See Sections V.A.2. and IV.B.7.c. of this NOFA for the subjects
and items that you should include in your Rating Factor narrative.

\(3\) In order to document that you need HOPE VI funding to complete
your proposed revitalization effort, you must include in your
application:

\(a\) The portion of your PHA plan that lists each year's planned uses
of your FY 2000-2005 Capital Funds (including CGP and CIAP funds). Funds
earmarked in the PHA plan for uses other than the revitalization
proposed in this application will not be considered available; and

\(b\) A table that states:

\(i\) The amount of your total FY 2000-2005 Capital Funds;

\(ii\) The amount of your total unobligated FY 2000-2005 Capital Funds;
and

\(iii\) The planned amounts and uses of unobligated funds earmarked in
your PHA plan for purposes other than your application's proposed HOPE
VI activities.

\(4\) Applicants **must** ensure that their obligation and expenditure
information was updated in LOCCS prior to the application deadline,
except in the case of some moving to work applicants, which are not
required to enter obligations into LOCCS in accordance with their MTW
agreements.

\(5\) **For MTW PHAs that do not record capital funds obligations in
LOCCS**, you must provide a certification of your obligation rate in
order to receive any points for the Need for HOPE VI Funding rating
factor.

**c. Documentation for Leverage Resources.** In your application, you
will enter basic information about each resource on the appropriate
resource summary form: name of the organization providing the resource,
the dollar value of the resource, and its proposed use.

\(1\) Basic Documentation Requirements.

\(a\) For each resource you list, you **must** provide a commitment
document that demonstrates firm and irrevocable commitments, such as a
letter, memorandum of understanding (See (i) below.), agreement to
participate, city council resolution, or other evidence of the resource
to be committed, which may be subject to the receipt of a HOPE VI
Revitalization grant. If the commitment document is not included in the
application and provided before the NOFA submission date, the related
leverage will not be considered. An official of the organization legally
authorized to make commitments on behalf of the organization must sign
the commitment document.

\(i\) Memoranda of Understanding (MOUs). Depending upon the specific
MOU, the MOU alone may not firmly and irrevocably commit Leverage funds,
e.g., the MOU states that a donation agreement may be discussed in the
future. If the MOU does firmly and irrevocably commit funds, the MOU
language that does so should be highlighted or mentioned in the
application. To ensure inclusion of Leverage funds, MOUs may be
accompanied by commitment letters or contracts. This is not a technical
deficiency and cannot be corrected during the deficiency period. See
Section VI.B.5.a. of this NOFA.

\(b\) Each commitment document must include the dollar value and time
duration of the commitment (e.g., \$10,000 will be provided each year
for four years for a total commitment of \$40,000). The dollar value
**must be consistent** with the amount entered on the resource summary
form. For electronic application submission, you will also need to
identify, in the documentation Attachment section of the application,
whether the document was submitted to HUD:

\(i\) As a scanned PDF document submitted through grants.gov
(preferred); or

\(ii\) as an electronic facsimile. See Section IV.F. of this NOFA.

\(c\) Endorsements or general letters of support from organizations or
vendors alone **will not** count as resources and should not be included
in the application or on a Resources Summary Form.

\(d\) For CSS leverage resources, include **only** funds/in-kind
services that will be **newly** generated for HOPE VI activities. If an
existing service provider significantly increases the level of services
provided at the site, the increased amount of funds may be counted,
except for TANF cash benefits. HUD will not count any funds that have
already been provided on a routine basis, such as TANF cash benefits and
in-kind services that have been supporting ongoing CSS-type activities.

\(e\) Even though an in-kind CSS contribution may count as a resource,
it may not be appropriate to include on the sources and uses attachment.
Each source on the sources and uses attachment must be matched by a
specific and appropriate use. For example, donations of staff time may
not be used to offset costs for infrastructure.

\(2\) LIHTC Documentation. If you propose to include LIHTC equity as a
development resource for **any** phase of development, your application
must include a LIHTC reservation letter from your state or local housing
finance agency in order to have the tax credit amounts counted as
development leveraging. This letter must constitute a firm commitment
and can only be conditioned on the receipt of the HOPE VI grant. HUD
acknowledges that, depending on the housing finance agency,
documentation for four percent tax credits may be represented in the
form of a tax-exempt bond award letter. Accordingly, it will be accepted
for leverage scoring purposes under Section V.A.3. of this NOFA, if you
demonstrate that this is the only available evidence of four percent tax
credits, and assuming that this documentation clearly indicates that
tax-exempt bonds have been committed to the project.

\(3\) Private mortgage-secured loans and other debt.

\(a\) Your application must include each loan's expected term maturity
and sources of repayment.

**d. Documentation for Resident Involvement.** See Sections IV.B.5.e.
and V.A.4. of this NOFA for documentation requirements.

**e. Documentation for CSS.** Include CSS capacity information in
Exhibit B, CSS Leverage in the Attachments and CSS program information
in Exhibit E. See Sections III.C.4.l. and m. for program requirements
and V.A.5. for CSS program Rating Factors. Note the importance of
Housing Self-Sufficiency.

**f. Documentation for Relocation.** There is a program requirement that
you must complete a HOPE VI Relocation plan. The Relocation Plan should
be in accordance with HUD Community Planning and Development's CPD
Notice 04-02, which is an extension of Notice 02-08.

\(1\) In your application, you must certify that the HOPE VI Relocation
plan has been completed and that it:

> \(a\) Conforms to the URA requirements as described in Section
> III.C.4.;

\(b\) Is designed to minimize permanent displacement of current
residents of the public housing site who wish to remain in or return to
the revitalized community, while furnishing alternative housing to
current residents of the public housing site who do not wish to remain
in or return to the revitalized community;

\(c\) Gives existing residents priority for occupancy in planned public
housing units, or for residents that can afford to live in other units,
priority for those planned units and

\(d\) In connection with your CSS program, provides for community and
supportive services to residents prior to any relocation.

\(2\) If relocation was completed as of the application submission date
(i.e., the targeted public housing site is vacant), rather than
providing a certification that the HOPE VI Relocation plan has been
completed, a certification that the relocation was completed must be
included in the application. This certification may be provided in the
form of a letter.

**g. Documentation for Fair Housing and Equal Opportunity.** See
Sections III.C.4., and V.A.7. for documentation requirements.

**h. Documentation for Well-Functioning Community.** See Sections
III.C.4., and V.A.8. of this NOFA for documentation requirements.
Include a summary of unit data that relates to need for affordable
housing. Include information relating the Rating Factors to your
Physical Plan, as described in Exhibit A.

**i. Documentation for Soundness of Approach.** See Section and V.A.9.
of this NOFA for documentation requirements.

**j. Documentation for Incentive Criteria on Regulatory Barrier
Removal.** You must include the completed form HUD-27300 in your
application. You must answer the questions in either Part A or Part B of
the form, but not both.

**6. Housing Choice Voucher (HCV) Assistance.**

\(1\) This NOFA will fund HCVs that are necessary to relocate HOPE VI
affected public housing residents. In accordance with HUD Notice PIH
2004-4 (HA), [Submission and Processing of Public Housing Agency (PHA)
Applications for Housing Choice Vouchers for Relocation or Replacement
Housing Related to Demolition or Disposition (Including HOPE VI), and
Plans for Removal (Required/Voluntary Conversion Under Section 33 of the
1937 Act, As Amended, and Mandatory Conversion Under Section 202 of the
Omnibus Consolidated Rescissions and Appropriations Act of 1996) of
Public Housing Units,]{.underline} you should determine the number of
vouchers that it is eligible for, that are related to this HOPE VI
Revitalization development.

\(2\) You should submit the HCV application, in accordance with HUD
Notice PIH 2004-4 (HA), for these HOPE VI related vouchers, as a part of
the application.

\(a\) If you are funded by this NOFA, the HCV application will be
processed.

\(b\) If you are not funded by this NOFA, the HCV application will not
be processed.

\(3\) For applicants who are granted a waiver to the electronic
application process, the HCV request should be located with the Standard
Forms and Certifications at the back of the application.

\(4\) The notice can be obtained through the Internet at
<http://www.hudclips.org/cgi/index.cgi>.

\(5\) To assist HUD in estimating the overall cost of HCV assistance,
you should include a copy of the Funding Application, Section 8
Tenant-Based Assistance Rental Certificate Program, Rental Voucher
Program, form HUD-52515, in your NOFA application.

**7.** **Further Documentation Guidance on Narrative Exhibits and
Specific Attachments.**

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

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

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

(a) Rehabilitation of severely distressed public housing units;

(b) Development of public housing replacement rental housing, both
    on-site and off-site;

(c) Indicate whether you plan to use PATH technologies and Energy Star
    in the construction of replacement housing;

(d) Market rate housing units;

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

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

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

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

\(3\) [Hazard Reduction]{.underline}. For units to be rehabilitated or
demolished, describe the extent of any required abatement of
environmentally hazardous materials such as asbestos.

\(4\) [Demolition]{.underline}. Describe your plans for demolition,
including the buildings (dwelling and non-dwelling units) proposed to be
demolished, the purpose of the demolition, and the use of the site after
demolition. If the proposed demolition was previously approved as a
Section 18 demolition application, state the date the Section 18
demolition application was submitted to HUD and the date it was approved
by HUD. Indicate whether you plan to implement the concept of
Deconstruction.

\(5\) [Disposition]{.underline}. Describe the extent of any planned
disposition of any portion of the site. Cite the number of units or
acreage to be disposed, the method of disposition (sale, lease, trade),
and the status of any disposition application made to HUD.

\(6\) [Site Improvements]{.underline}. Describe any proposed on-site
improvements, including infrastructure requirements, changes in streets,
etc. Describe all public improvements needed to ensure the viability of
the proposed project with a narrative description of the sources of
funds available to carry out such improvements.

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

\(8\) [Separability]{.underline}. If applicable, address the
separability of the revitalized building(s) within the targeted project.

\(9\) [Proximity]{.underline}. If applicable, describe how two
contiguous projects or scattered sites meet the NOFA requirements.

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

\(1\) [PHAS, Maintenance, and SEMAP]{.underline}.

\(2\) [Development Capacity of Developer]{.underline}.

\(3\) [Development Capacity of Applicant]{.underline}.

\(4\) [Capacity of Existing HOPE VI Revitalization
Grantees.]{.underline} This rating factor applies only to PHAs with
existing HOPE VI Revitalization grants from fiscal years 1993-2002.
Production achievement numbers will be taken from the HOPE VI Quarterly
Progress Reports for the quarter ending December 31, 2004.

\(5\) [CSS Program Capacity]{.underline}.

\(6\) Property Management Capacity.

\(7\) [PHA Plan]{.underline}.

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

(1) [Need for Revitalization: Severe Physical Distress of the Public
    Housing Site]{.underline}.

(2) [Need for Revitalization: Impact of the Severely Distressed Site on
    the Surrounding Neighborhood]{.underline}.

(3) [Need for HOPE VI Funding (Obligation of Capital
    Funds)]{.underline}. If you are a Moving to Work participant and are
    not required to enter obligations into LOCCS, provide a
    certification of your obligation rate of your FY 2000-2005 Capital
    Funds. If you are not a participant in MTW, you must provide
    information on your Capital Funds. The portion of the PHA Plan that
    lists the planned uses of your FY 2000-2005 Capital Funds should
    included in the application.

(4) [Previously-Funded Sites]{.underline}.

(5) [Need for Affordable, Accessible Housing in the
    Community]{.underline}.

**d. Exhibit D.** Verify that you have included information relating to
the following:

\(1\) Re[sident and Community Involvement]{.underline}. Discuss your
communications about your development plan and HUD communications with
residents, community members, and other interested parties. Include the
resident training attachment.

**e. Exhibit E.** Verify that you have included information relating to
the following: [Endowment Trust]{.underline}. If you plan to place CSS
funds in an Endowment Trust, state the dollar amount and percentage of
the entire grant that you plan to place in the Trust.

(1) Case Management and Needs Identification;

(2) Transition to Housing Self-Sufficiency and Housing Self-Sufficiency
    Time Frame

(3) Partner Commitments

(4) Quality and Results Orientation.

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

(1) [Housing Choice Voucher Needs]{.underline}. State the number of
    Housing Choice Vouchers that will be required for relocation if this
    HOPE VI application is approved, both in total and the number needed
    for FY 2005. Indicate the number of units and the bedroom breakout.
    As applicable, include a Housing Choice Voucher application to the
    application.

(2) [Relocation Plan]{.underline}. For additional guidance on developing
    a relocation plan, refer to CPD Notice 04-02 ("Guidance on the
    Application of the Uniform Relocation Assistance and Real Property
    Acquisition Policies Act of 1970 (URA), as amended, in HOPE VI
    Projects").

**g. Exhibit G.** Verify that you have included information relating to
the following:

(1) [Accessibility]{.underline};

(2) [Universal Design]{.underline};

(3) [Fair Housing; and]{.underline}

(4) [Section 3]{.underline}.

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

(1) Unit Mix and Need for Affordable Housing;

(2) [Off-Site Housing]{.underline}; and

(3) [Homeownership Housing]{.underline}.

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

(1) [Appropriateness of Proposal]{.underline};

(2) [Appropriateness and Feasibility of the Plan]{.underline};

(3) [Neighborhood Impact and Sustainability of the Plan]{.underline};

(4) [Design]{.underline};

(5) Energy Star; and

(6) [Evaluation]{.underline}.

**j. Attachments 1 through 7.**

\(1\) These attachments are required in all applications. See the
instructions for filling out the HOPE VI Application Data Forms,
Appendix 1, at the end of this NOFA.

**k. Attachment 8.**

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

**l. Attachment 9.**

(1) [Form HUD-52799, "TDC/Grant Limitations Worksheet"]{.underline}.
    This attachment is required in all applications. The Excel workbook
    will assist you in [determining]{.underline} [your]{.underline} TDC
    limits required in Section IV.B.5.j.

**m. Attachment 10.**

(1) [Extraordinary Site Costs Certification]{.underline}. This
    attachment is applicable only if you request funds to pay for
    extraordinary site costs, outside the TDC limits.

**n. Attachment 11.**

(1) [Cost Certification]{.underline}. This attachment is required in all
    applications.

**o. Attachment 12.**

(1) [City Map]{.underline}. This attachment is required in all
    applications. Provide a to-scale city map that clearly identifies
    the following in the context of existing city streets, the central
    business district, other key city sites, and census tracts:

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(a) the existing development;

(b) replacement neighborhoods, if available;

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

(d) the location of the Federally-designated Empowerment Zone or
    Enterprise Community (if applicable); and

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

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

**p. Attachment 13.**

(1) This attachment is required in all applications. [The Developer
    Certification]{.underline} may be in the form of a letter.

**q. Attachment 14**

(1) This attachment is required in all applications. [The Property
    Management Certification]{.underline} may be in the form of a
    letter.

**r. Attachment 15.**

(1) [Program Schedule]{.underline}. This attachment is required in all
    applications. Your program schedule MUST contain all timeframe
    requirements listed in the NOFA. [Further]{.underline}, the program
    schedule MUST indicate the date on which the development proposal
    for EACH phase of the revitalization plan will be submitted to HUD.

**s. Attachment 16**

(1) [Certification of Severe Physical Distress]{.underline}. This
    attachment is required in all applications. In accordance with the
    NOFA, an engineer or architect must complete this certification. No
    backup documentation is required for this certification.

**t. Attachment 17**

(1) [Photographs of the Severely Distressed Housing]{.underline}. This
    attachment is required in all applications. Submit photographs of
    the targeted severely distressed [public]{.underline} housing that
    illustrate the extent of physical distress.

**u. Attachment 18**

(1) [Neighborhood Conditions]{.underline}. This attachment is required
    in all applications. Documentation may include crime statistics,
    photographs or renderings, socio-economic data, trends in property
    values, evidence of property deterioration and abandonment, evidence
    of underutilization of surrounding properties, and other indications
    of neighborhood distress and/or disinvestment.

**v. Attachments 19 through 22**

(1) [These attachments are included in form HUD 52797, "HOPE VI
    Revitalization Leverage Resources." and are required in all
    applications.]{.underline}

(2) [Physical Development Resources.]{.underline} For each resource
    entered, you must submit backup documentation in Attachment 19.

(3) [CSS Resources.]{.underline} For each [resource]{.underline}
    entered, submit backup documentation in Attachment 20.

(4) Anticipatory Resources. For each resource entered, submit backup
    documentation in Attachment 21.

(5) [Collateral Resources.]{.underline} For each resource entered,
    submit backup documentation in Attachment 22.

**w. Attachment 23.**

(1) [Form HUD-52785, "Resident Training and Public Meeting
    Certification."]{.underline} This attachment is required in all
    applications. [This form is available from Grants.gov.]{.underline}

**x. Attachment 24.**

(1) [Commitments with CSS Providers.]{.underline} This attachment is
    required in all applications. Provide letters from CSS providers
    that have made commitments to participate in your CSS activities if
    you are awarded a HOPE VI Revitalization grant under the NOFA.

**y. Attachment 25.**

(1) [HOPE VI Revitalization Relocation Plan Certification]{.underline}.
    Submit a certification that you have completed a HOPE VI Relocation
    Plan in conformance with the URA. This certification
    [may]{.underline} be in the form of a letter. Refer to CPD Notice
    04-02 for additional guidance, including a template.

**z. Attachment 26.**

(1) [Completed Relocation Certification. If you have completed your
    relocation on or before the application submission date, include
    this attachment.]{.underline} This certification may be in the form
    of a letter.

**aa. Attachment 27.**

1.  [Documentation of Site Control for Off-Site Public
    Housing]{.underline}. This is applicable if your plan includes
    off-site housing or other development. Provide evidence of site
    control for off-site rental replacement [units]{.underline} and
    acquired, or to be acquired, land.

**bb. Attachment 28.**

1.  [Documentation of Environmental, and Site & Neighborhood
    Standards.]{.underline} This is applicable if your plan includes
    off-site housing or other off-site development. Provide a
    certification that the site(s) acquired for off-site
    [public]{.underline} housing meet environmental and site and
    neighborhood standards, as provided in the NOFA. This certification
    may be in the form of a letter.

**cc. Attachment 29.**

(1) [Preliminary Market Assessment Letter]{.underline}. This is
    applicable if you include market rate housing in your application.

**dd. Attachment 30.**

(1) [Certification of Zoning Approval]{.underline} or Documentation.
    This is applicable if your application includes off-site housing or
    other development. This attachment may be a certification or backup
    documentation.

**ee. Attachment 31.**

(1) [Form HUD-52787, "]{.underline}HOPE VI Revitalization Project
    Readiness Certification". This attachment is required in all
    applications. [This form is available from grants.gov and allows you
    to certify to several thresholds.]{.underline}

**ff. Attachment 32.**

(1) [Current Site Plan.]{.underline} This attachment is required in all
    applications. The Site Plan shows the targeted public housing site's
    various buildings and identifies [which]{.underline} buildings are
    to be rehabilitated, demolished, or disposed of. Demolished
    buildings should be shown and labeled as such.

**gg. Attachment 33.**

(1) [Photographs of Architecture in the Surrounding
    Community]{.underline}. This attachment is required in all
    applications. Provide photographs to demonstrate [that]{.underline}
    your plan conforms to the Design requirements of the NOFA.

**hh. Attachment 34.**

(1) [Conceptual Site Plan.]{.underline} This attachment is required in
    all applications. [The Conceptual Site Plan]{.underline} indicates
    where your plan's proposed construction [and]{.underline}
    rehabilitation activities will take place and any planned
    acquisition of adjacent property and/or buildings.

**ii. Attachment 35.**

(1) [Conceptual Building Elevations]{.underline}. This attachment is
    required in all applications. Include building elevation drawings
    for the various types of your proposed housing.

**jj. Attachment 36.**

(1) [Evaluation Commitment Letter(s)]{.underline}. This attachment is
    required in all applications. Provide the commitment letter(s) for
    your CSS program evaluation. The letter should contain enough
    information for HUD to compare the commitment to the evaluation
    described in Exhibit I.

**kk. Attachment 37.**

(1) [Portions of the PHA or MTW Plan.]{.underline} This attachment is
    required, and should be included in all applications. The portion of
    the PHA Plan that you include should support your narrative in
    Exhibit B and cover planned uses of Capital Fund Program funding and
    inclusion of the targeted project's revitalization.

**ll. Attachment 38.**

(1) [Form HUD-96010, "Logic Model,"]{.underline} This attachment is
    required in all applications. [This form is available from
    Grants.gov. Fill in the planning information requested, Columns 1
    -- 5. Columns 6 -- 9 will be filled out during and at the end of the
    grant term. (See Section VI.C.2. for post award reporting
    instructions.)]{.underline}

**mm. Attachment 39.**

(1) [Form HUD-27300, "America's Affordable Communities
    Initiative."]{.underline} This attachment is required in all
    applications. [This form is available from Grants.gov.]{.underline}

**nn. Attachment 40.**

(1) [HOPE VI Revitalization Applicant Certification.]{.underline} This
    attachment is required in all applications. [This form is available
    from Grants.gov.]{.underline}

(2) Note that these certifications (4 page document) must be signed by
    the Chairman of the Board of the PHA, NOT the Executive Director.

**oo. Attachment 41.**

(1) [Standard Forms and Certifications.]{.underline} These documents
    include:

    a.  Disclosure of Lobbying Activities (SF-LLL), as applicable

    b.  Form HUD-2880, "Applicant/Recipient Disclosure/Update Report."
        [This form is available from Grants.gov.]{.underline}

    c.  Form HUD-52515, "Funding Application, Section 8 Tenant-Based
        Assistance, Rental Certificate Program, Rental Voucher Program."
        [This form is available from Grants.gov. It]{.underline} is
        applicable only if you are requesting Housing Choice Vouchers
        that are related to your proposed plan.

**C. Submission Dates and Times.**

**1. Application Submission Timeframes.**

**a. Application Submission Date.** Revitalization grant applications
are to be submitted to HUD on June 29, 2005, through Grants.gov or, in
the case of applicants that have been granted a wavier to the electronic
submission requirement, through the United States Postal Service (USPS)
or an overnight mail service. See Sections IV.F. of this NOFA and the
General Section for application, submission and timely receipt
requirements.

**2. Electronic Required Submission Date and Form of Acceptance.** All
applications must be received by Grants.gov **by 11:59:59 p.m. Eastern
time** on June 29, 2005.

Proof of timely submission is automatically recorded by Grants.gov. An
electronic time stamp is generated within the system when the
application has been successfully received. The applicant will receive
an acknowledgement of receipt and a tracking number from Grants.gov with
the successful transmission of their application. Applicants should
print this receipt and save it, along with facsimile receipts for
information provided by facsimile, as proof of timely submission. When
HUD successfully retrieves the application from Grants.gov, HUD will
provide an electronic acknowledgment of receipt to the e-mail address
provided on the SF-424. Proof of Timely submission shall be the date and
time that Grants.gov receives your application submittal and the date
HUD receives those portions of your application submitted by facsimile.
All facsimile transmissions must be received by the application
submission date and time.

Applications received by Grants.gov, after the established submission
deadline for the program will be considered late and will not be
considered for funding by HUD. Similarly, applications will be
considered late if information submitted by facsimile as part of the
application has not received by HUD by the established submission
deadline. Please take into account the transmission time required for
submitting your application via the Internet and the time required to
electronically fax any related documents. HUD suggests that applicants
submit their applications during the operating hours of the Grants.gov
Support Desk, so that if there are questions concerning transmission,
operators will be available to walk you through the process. Submitting
your application during the Support Desk hours will also ensure that you
have sufficient time for the application to complete its transmission
prior to the application deadline.

Applicants using dial-up connections should be aware that transmission
should take some time before Grants.gov receives it. Grants.gov will
provide either an error or a successfully received transmission message.
The Grants.gov Support desk reports that some applicants abort the
transmission because they think that nothing is occurring during the
transmission process. Please be patient and give the system time to
process the application. Uploading and transmitting many files
particularly electronic forms with associated XML schemas will take some
time to be processed.

**3. Submission Date, Address, Delivery Requirements and Acceptance for
[Applicants that have Received Waivers that Allow Submission of a Paper
Copy Application. ]{.underline}**

The following applies **[ONLY]{.underline}** if you are granted a waiver
to the electronic application submission requirements.

[**a. Method of Delivery.**]{.underline} Applicants granted a wavier to
the electronic submission requirement must use the United States Postal
Service (USPS) or overnight mail service (which provide written receipt
of delivery date) to submit their applications to HUD. Hand-carried and
courier delivered applications will not be accepted.

[**b. Submission Date and Time.**]{.underline} Applications must be
received by 4:00 pm on June 29, 2005. Applications will be considered
late and ineligible to receive funding if not received on or before the
application submission date and time, regardless of the postmark date.

**c. Address for Submitting Applications.** Send the original and one
copy of your completed application to Mr. Milan Ozdinec, 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.

**d. Form of Acceptance.** HUD will consider an application as being
accepted when it is delivered to the Office of Public Housing
Investments, Room 4130, HUD Headquarters, 451 Seventh Street, SW,
Washington, DC 20410-5000. Upon delivery and acceptance, the Grant
Administrator will manually add the application's PHA name, development
name, time of receipt, and date of receipt to an application receipt
log.

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

**f. Field Office Copy.** You must send one duplicate copy of your
application to your HUD field office. The HUD field office copy of the
application is due before 4:00 p.m. on the application submission date.
If the HUD field office receives an application on time, but the
application is not received on time at Headquarters, it will not be
considered.

**g. No Facsimiles or Videos.** With the exception of third party
documents submitted via electronic facsimile (See Section IV.F. of the
General Section), HUD will not accept for review and evaluation, or
fund, any applications sent by facsimile (fax). However, facsimile
corrections to technical deficiencies will be accepted, as described in
Section V.B.4. of the General Section. Also, videos submitted as part of
an application will not be viewed.

**h. Proof of timely submission .** Proof of timely submission for all
applications, regardless of whether they are delivered through USPS or
overnight mail services shall be the date and time recorded by the Grant
Administrator in the application receipt log. See Section IV.C.2. of
this NOFA for information on the application receipt log.

**i. Acknowledgement of Application Receipt.** If you wish to receive
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.

**D. Intergovernmental Review.** 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. The order
allows each state to designate an entity to perform a state review
function. The official listing of state points of contact (SPOC) for
this review process can be found at:
[www.whitehouse.gov/omb/grants/spoc.html]{.underline}. States that are
not listed on the website have chosen not to participate in the
intergovernmental review process, and therefore do not have a SPOC. If
you are located within one of those states, you may send applications
directly to HUD. If your state has a SPOC, you should contact it to see
if it is interested in reviewing your application prior to submission to
HUD. Please make sure that you allow ample time for this review process
when developing and submitting your application.

**E. Funding Restrictions.**

**1. Statutory Time Limits**

a\. Required Obligation Date. Funds appropriated for the HOPE VI program
for FY-2005 must be obligated on or before September 30, 2006. Any funds
that are not obligated by that date will be recaptured by the Treasury,
and thereafter will not be available for obligation for any purpose

**b. Required Expenditure Date.** In accordance with **31 U.S.C. §
1552**, **all FY-2005 HOPE VI funds must be expended by S**eptember 30,
2011. Any funds that are not expended by that date will be placed in an
expired account, and will be available only for the purposes of
liquidating obligations properly chargeable to that account prior to its
expiration and of making legitimate obligation adjustments.

**2. Funding for Applications to this NOFA Only.** HUD will not use any
funds from this NOFA to fund any non-selected HOPE VI related
applications submitted in previous years. Only applications submitted
under this FY-2005 NOFA will be considered for funding.

3\. Grant Amount Limitations.

**a. Requested Amount.** See Section II of this NOFA for details.

**4. Ineligible Activities.**

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

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

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

**5. Total Development Cost (TDC).**

a\. The \"TDC Limit\" (24 CFR 941.306, Notice PIH 2004-6 (HA), or
extending Notice) refers to the maximum amount of HUD funding that HUD
will approve for development of specific public housing units in a given
location. The TDC limit applies only to the costs of development of
public housing that are paid directly with HUD public housing funds,
including HOPE VI funds; a PHA may exceed the TDC limit using non-public
housing funds such as CDBG, HOME, low-income housing tax credit equity,
etc.

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

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

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

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

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

\(a\) Housing Cost Cap (HCC): HUD's published limit on the use of public
housing funds for the cost of constructing the public housing units,
which includes unit hard costs, builder's overhead and profit, utilities
from the street, finish landscaping, and a hard cost contingency.
Estimates should take into consideration the Davis-Bacon wage rate and
other requirements as described in "Labor Standards", Section III.C.4.h.
of this NOFA.

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

\(3\) CSS. You may request an amount not to exceed 15 percent of the
total HOPE VI grant to pay the costs of CSS activities, as described in
Section III.C.4.l. of this NOFA. These costs are in addition to, i.e.,
excluded from, the TDC calculation above.

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

\(5\) Extraordinary Site Costs.

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

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

**6. Cost Control Standards.**

a\. Your projected hard development costs must be realistic, developed
through the use of technically competent methodologies, including cost
estimating services, and comparable to industry standards for the kind
of construction to be performed in the proposed geographic area.

b\. Your cost estimates must represent an economically viable
preliminary plan for designing, planning, and carrying out your proposed
activities in accordance with local costs of labor, materials, and
services.

c\. Your projected soft costs must be reasonable and comparable to
industry standards. Upon award, soft costs will be subject to HUD\'s
\"Safe Harbor\" cost control standards. For rental units, these safe
harbors provide specific limitations on such costs as developer\'s fees
(between 9 and 12 percent), PHA administration/consultant cost (no more
than 3 to 6 percent of the total project budget), contractor\'s fee (6
percent), overhead (2 percent), and general conditions (6 percent).
HUD\'s Cost Control and Safe Harbor Standards can be found on HUD's
HOPE VI website.

d\. If you are eligible for funding, HUD will delete any unallowable
items from your budget and may reduce your grant accordingly.

**7.** **Withdrawal of Grant Amounts**. In accordance with Section 24(i)
of the 1937 Act, if a grantee does not proceed within a reasonable
timeframe, as described in Section VI.B.2. of this NOFA, HUD shall
withdraw any unobligated grant amounts. HUD shall redistribute any
withdrawn amounts to one or more other applicants eligible for HOPE VI
assistance or to one or more other entities capable of proceeding
expeditiously in the same locality in carrying out the Revitalization
plan of the original grantee.

**F. Other Submission Requirements.**

# This section provides the application submission and receipt instructions for HUD program applications. Please read the following instructions carefully and completely, as failure to comply with these procedures may disqualify your application. 

**1. [Electronic Delivery]{.underline}.** HUD requires applicants to
submit their applications electronically through **www.grants.gov.** HUD
will not accept or consider any applications that have been submitted
through any other method, unless a waiver is granted.

**2. [Electronic Signature]{.underline}.** Applications submitted
through grants.gov constitute submission as electronically signed
applications. The registration and e-authentication process establishes
the Authorized Organization Representative. When you submit the
application through Grants.gov, the name of your authorized organization
representative on file will be inserted into the signature line of the
application. **Applicants must register the individual who is able to
make legally binding commitments for the applicant organization as the
Authorized Organization Representative.**

**3. [Instructions]{.underline}.** Instructions on how to submit an
electronic application to HUD via Grants.gov:

**[a. Applying using Grants.gov.]{.underline}** Grants.gov has a full
set of instructions on how to apply for funds on its website at
<http://www.grants.gov/CompleteApplication>. The following provides
simple guidance on what you will find on the [www.grants.gov/Apply
site]{.underline}. Applicants are encouraged to read through the page
entitled, "Complete Application Package" before getting started.
grants.gov allows applicants to download the application package,
instructions and forms that are incorporated in the instructions, and
work off line. In addition to forms that are part of the application
instructions, there will be a series of electronic forms that are
provided utilizing a PureEdge reader. The PureEdge Reader is available
free for download from the Grants.gov/Get Started site. The PureEdge
Reader allows applicants to read the electronic files in a form format
so that they will look like any other Standard or HUD form. The PureEdge
forms have content sensitive help. To use this feature you will need to
click on the icon at the top of the page that features an arrow with a
question mark. This engages the content sensitive help for each field
you will need to complete on the electronic form. The PureEdge forms can
be downloaded and saved on your hard drive, network drive(s), or CDs.
Because of the size of the application, HUD recommends downloading the
application to your computer hard drive.

The instructions include this NOFA and any required forms that have not
been converted into PureEdge forms. The instructions will also include a
checklist to ensure that you are provided all the required information
for submitting your application. Please review the checklist in the
program section to ensure that your application contains all the
required materials.

4\. **[Submission of Third Party Letters, Certifications or Narrative
Statements.]{.underline}** In addition to forms, many of the NOFAs
require the submission of other documentation such as third party
letters, certifications, or program narrative statements. This section
discusses how you should submit this additional information
electronically as part of your application:

\(1\) [Narrative Statements to the Factors for Award.]{.underline} If
you are required to submit narrative statements, you should submit them
as an electronic file in ASCII text format. Each response to a Factor
for Award should be developed as a separate file labeled with the
appropriate factor name, e.g. Factor 1 Capacity **and submitted as part
of your electronic application.**

\(2\) [Third Party Letters, Certifications Requiring Signatures, and
Other Documentation.]{.underline} Applicants required to submit
documentation from organizations providing matching or leveraging funds;
documentation of 501(c)(3) status or incorporation papers; documents
that support the need for the program or Memoranda of Understanding
(MOUs) have the following two options:

\(a\) [Scanning Documents to Create Electronic Files]{.underline}. Third
party documentation can be scanned and saved as separate electronic
files. Electronic files must be labeled so the reader will know what the
file contains. Match or leveraging letters can be scanned into a single
folder or the applicant can create a separate file for each scanned
letter and label them accordingly. All scanned files should be placed
together in a zipped folder and then attached to the application package
submitted to grants.gov as part of the application submission; or

\(b\) [Electronic Facsimile Required Documentation.]{.underline}
Applicants that do not have scanning equipment available, may submit the
required documentation to HUD via facsimile (fax). The electronic
facsimile method may only be used to submit attachments that are part of
your electronic application. **HUD will not accept entire applications
via fax. Applications submitted entirely via fax will be disqualified.**

To submit documents using the electronic facsimile method, applicants
must use form HUD-96011, Facsimile Transmittal, which is a cover *page*
for the faxed materials. The form HUD-96011 is an electronic form and is
part of the applicant's downloaded electronic application obtained from
www.grants.gov. Applicants must fax their information to the following
fax number: 800-HUD-1010. Each document must be faxed as a separate
submission to avoid fax transmission problems. When faxing several
documents, applicants must use the Form HUD-96011 as the cover for each
document (e.g. Letter of Matching or Leveraging funds, Memorandum of
Understanding, Certification of Consistency with the Consolidated Plan,
etc.).

Your facsimile machine should provide you with a record of whether your
transmission was received by HUD. If you get a negative response or a
transmission error, you should resubmit the document until you confirm
that HUD has received your transmission. HUD will not acknowledge that a
facsimile was received successfully. HUD will electronically receive the
facsimile, read it with an optical character reader and attach it to the
application submitted via Grants.gov electronic facsimile transmissions
may be sent at any time before the application submission date. HUD will
store the information and attach it to the electronic application when
HUD receives it from Grants.gov.

\(c\) [Submissions using other File Formats.]{.underline} If you are
required to submit files in formats such as CAD (Computer Aided Design)
files of architectural drawings and blueprints, or pictures, you should
attach these as electronic files as part of the zipped folder and submit
them with your application transmission.

## 5. Customer Support. The grants.gov website provides customer support via (800) 518-GRANTS (this is a toll-free number) or through e-mail at [**support@grants.gov**](mailto:support@grants.gov). The customer support center is open from 7:00 a.m. to 9:00 p.m. Eastern time, Monday through Friday, except federal holidays, to address grants.gov technology issues. For technical assistance to program related questions, contact the number listed in Section VII of this NOFA. 

## 6. Waiver of Electronic Submission Requirement. HUD will only accept electronic applications submitted through [**www.grants.gov**](http://www.grants.gov/) unless the applicant has received a waiver from the Department. HUD regulations at 24 CFR 5.110, permit waivers of regulatory requirements to be granted for cause. If you are unable to submit your application electronically, you may, in writing, request a waiver from this requirement. Your waiver request must state the basis for the request and explain why electronic submission is not possible. The basis for waivers for cause may include but are not limited to: (a) lack of available internet access in the geographic location in which the applicant is located or, (b) the physical disability of the applicant prevents the applicant from accessing or responding to the electronic application.

## The waiver request should also include an e-mail and/or name and mailing address where responses can be directed. Applicants must submit waiver requests to the Assistant Secretary for Public and Indian Housing, who is responsible for the program under which you are seeking funding. To ensure time for processing, the waiver request must be submitted to HUD in writing at least thirty days prior to the application submission date. 

## To avoid a delay in the process, waiver requests should be sent by United States Postal Service Express Mail. You, the applicant should retain a receipt for the mailing showing the date submitted to the Postal Service. HUD will acknowledge receipt of the waiver request by email, if an email address is provided, or by United States Postal Service Express Mail or other means available. HUD will not make determinations or respond to waiver requests via the telephone. Each waiver request will be reviewed and a determination made to the applicant, indicating whether or not the waiver has been granted. In the event a waiver is granted, the submission date for the mailed application delivery shall not be later than the submission date for electronic applications. Applicants receiving a waiver will be expected to follow the submission instructions immediately below. 

## a. Submission Instructions for Applicants Receiving A Waiver to Electronic Submission. Applicants receiving a waiver of the electronic submission requirements must submit their complete applications in paper copy as follows:

**(1) [Submission Using the United States Postal Service.]{.underline}**
**HUD [will no longer accept hand deliveries of
applications]{.underline}. Applicants who receive a waiver and are
therefore allowed to submit paper applications** must submit them via
the United States Postal Service using Express Mail or an overnight mail
service (which provides a written record of delivery date).

**7. [Timely Receipt Requirements and Proof of Timely
Submission]{.underline}.**

**a. [Electronic Submission.]{.underline}** All applications must be
received by [www.grants.gov](http://www.Grants.gov/) **by 11:59:59 p.m.
Eastern time** on the established submission date for this NOFA.

Proof of timely submission is automatically recorded by Grants.gov. An
electronic time stamp is generated within the system when the
application is successfully received by Grants.gov. The applicant will
receive an acknowledgement of receipt and a tracking number from
grants.gov with the successful transmission of their application.
Applicants should print this receipt and save it, along with facsimile
receipts for information provided by facsimile, as proof of timely
submission. When HUD successfully retrieves the application from
Grants.gov, HUD will provide an electronic acknowledgment of receipt to
the e-mail address provided on the SF 424. Proof of Timely submission
shall be the date and time that grants.gov receives your application
submittal and the date HUD receives those portions of your application
submitted by facsimile. All facsimile transmissions must be received by
the application submission date and time.

Applications received by Grants.gov, after the established submission
date for the program will be considered late and will not be considered
for funding by HUD. Similarly, applications will be considered late if
information submitted by facsimile as part of the application is not
received by HUD by the established submission date. Please take into
account the transmission time required for submitting your application
via the Internet and the time required to submit any related documents
via electronic facsimile. HUD suggests that applicants submit their
applications during the operating hours of the grants.gov Support Desk,
so that if there are questions concerning transmission, operators will
be available to walk you through the process. Submitting your
application during the Support Desk hours will also ensure that you have
sufficient time for the application to complete its transmission prior
to the application deadline.

Applicants using dial-up connections should be aware that transmission
should take some time before grants.gov receives it. Grants.gov will
provide either an error or a successfully received transmission message.
The grants.gov Support desk reports that some applicants abort the
transmission because they think that nothing is occurring during the
transmission process. Please be patient and give the system time to
process the application. Uploading and transmitting many files,
particularly electronic forms with associated XML schemas, will take
some time to be processed.

**b. Late applications.** Late applications, whether received
electronically or in hard copy will not receive funding consideration.
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.

**c. No Facsimiles of Entire Application.** HUD will not accept fax
transmissions from applicants who receive a waiver to submit a paper
copy application. Paper applications must be complete and submitted in
their entirety, via the USPS Express Mail.

a\. **5. General Section References.** The following sub-sections of
Section IV. of the General Section are hereby incorporated by reference:

\(1\) Addresses to Request Application Package;

\(2\) Application Kits;

\(3\) Guidebook and Further Information; and

\(5\) Addresses[.]{.underline}

# V. Application Review Information

**A. Criteria.**

**1. RATING FACTOR: Capacity - 27 Points Total.**

**a. Your Team.** The term \"your Team\" includes PHA staff who will be
involved in HOPE VI grant administration, and any alternative management
entity that will manage the revitalization process, be responsible for
meeting construction time tables, and obligating amounts in a timely
manner. This includes any developer partners, program managers, property
managers, subcontractors, consultants, attorneys, financial consultants,
and other entities or individuals identified and proposed to carry out
program activities.

**b. [Development Team Capacity]{.underline} --** 6 points

\(1\) You will receive up to 6 points if your application demonstrates
that:

\(a\) Your developer or other team members have extensive, recent
(within the last five years), and successful experience in planning,
implementing, and managing physical development, financing, leveraging,
and partnership activities that are comparable in character, scale, and
complexity to your proposed revitalization activities;

\(b\) Your developer or other team members have extensive, recent
(within the last five years), and successful experience in planning,
implementing, and managing Capital Fund program projects.

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

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

\(2\) You will receive up to 4 points if your developer or other team
members have some but not extensive experience in the factors described
above.

\(3\) You will receive zero points if your developer or other team
members do not have the experience described and the application does
not demonstrate that it has the capacity to carry out your
Revitalization plan. You will also receive 0 points if your application
does not address this factor to an extent that makes HUD's rating of
this factor possible.

**c. Development Capacity of Applicant** - 6 points.

\(1\) You will receive up to 6 points if your application demonstrates
that:

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

\(ii\) You have demonstrated that physical development activities will
proceed as promptly as possible following grant award, and you will be
able to begin significant construction within 18 months of the award of
the grant.

\(iii\) Your program schedule indicates the date on which the
development proposal, i.e., whether mixed-finance development,
homeownership development, etc., for each phase of the revitalization
plan will be submitted to HUD. **For application evaluation only,** you
should assume the award and post-award dates in Section IV.B.4.d. of
this NOFA; and

\(iv\) Your management experience and previous experience with
development activities, including the dollar amount and timeframe for
completion of the project(s), is sufficient to show that you have
experience in overseeing affordable housing development, whether it be
in-house or implemented by a private entity.

\(2\) You will receive up to 4 points if your application demonstrates
that you have had experience in managing affordable housing development
in accordance with the factors above, but your experience has not been
extensive, and your project(s) were completed within the timeframe
originally established for the project.

\(3\) You will receive up to 1 point if your application demonstrates
that you have had experience in managing affordable housing development
in accordance with the factors above, but your experience has not been
extensive, and your project(s) were not completed within the timeframe
originally established for the project.

\(4\) You will receive 0 points if your application does not demonstrate
any experience in managing development activities, or if your
application does not address this factor to an extent that makes HUD's
rating of this factor possible.

**d. [Capacity of Existing HOPE VI Revitalization
Grantees]{.underline}.**

\(1\) This Section applies only to applicants that have received HOPE VI
Revitalization grants for fiscal years 1993-2002. If an applicant has
more than one HOPE VI Revitalization grant, each will be rated
separately, not averaged, and the highest deduction will be made.
Applicants with HOPE VI Revitalization grants only from FY2003 or
FY2004, or no existing HOPE VI Revitalization grants are not subject to
this section.

\(2\) As indicated in the following tables, up to 5 points will be
deducted if a grantee has failed to achieve adequate progress in
relation to cumulative public housing rental unit production. Production
achievement numbers will be taken from the quarterly reporting system
for the quarter most recently completed at the time the NOFA is
published in the [Federal]{.underline} [Register]{.underline}.

  ----------------------------------- -----------------------------------
  Grants Awarded in FY1993-1998       

  Percent of Public Housing Unit      Points Deducted
  Production Completed                

  Less than 100 Percent               5 Points

  Grants Awarded in FY1999            

  Percent of Public Housing Unit      Points Deducted
  Production Completed                

  90-100 Percent                      0 Points

  80-89 Percent                       1 Point

  75-79 Percent                       2 Points

  70-74 Percent                       3 Points

  65-69 Percent                       4 Points

  Less than 65 Percent                5 Points

  Grants Awarded in FY2000            

  Percent of Public Housing Unit      Points Deducted
  Production Completed                

  80-100 Percent                      0 Points

  70-79 Percent                       1 Point

  60-69 Percent                       2 Points

  50-59 Percent                       3 Points

  40-49 Percent                       4 Points

  Less than 40 Percent                5 Points

  Grants Awarded in FY2001            

  Percent of Public Housing Unit      Points Deducted
  Production Completed                

  60-100 Percent                      0 Points

  50-59 Percent                       1 Point

  40-49 Percent                       2 Points

  30-39 Percent                       3 Points

  20-29 Percent                       4 Points

  Less than 20 Percent                5 Points

  Grants Awarded in FY2002            

  Percent of Public Housing Unit      Points Deducted
  Production Completed                

  25-100 Percent                      0 Points

  20-24 Percent                       1 Point

  15-19 Percent                       2 Points

  10-14 Percent                       3 Points

  5-9 Percent                         4 Points

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

**e. CSS Program Capacity** - 3 points.

See Sections I.D.10., and III.C.4.l. and m., of this NOFA for detailed
information on CSS activities.

\(1\) You will receive 2 points if your application demonstrates one of
the following. If you fail to demonstrate one of the following, you will
receive 0 points:

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

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

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

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

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

**f. Property Management Capacity** - 5 points.

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

\(2\) Past Property Management Experience - 3 points.

\(a\) You will receive up to 3 points if your application demonstrates
that you or your property manager currently have extensive knowledge and
recent (within the last five years), successful experience in property
management of the housing types included in your revitalization plan.
This may include market-rate rental housing, public housing, and other
affordable housing, including rental units developed with low-income
housing tax credit assistance. If your Revitalization plan includes
cooperatively-owned housing, rent-to-own units, or other types of
managed housing, in order to receive the points for this factor, you
must demonstrate recent, successful experience in the management of such
housing by the relevant member(s) of your team.

\(b\) You will receive 1 point if your application demonstrates that you
or your property manager has some but not extensive experience of the
kind required for your Revitalization plan.

\(c\) You will receive 0 points if your application does not demonstrate
that you or your property manager have the experience to manage your
proposed plan, or if your application does not address this factor to an
extent that makes HUD's rating of this factor possible.

\(3\) Property Management Plan - 2 points.

\(a\) You will receive up to 2 points if your application demonstrates
that you or your property manager have the goals and plans necessary to
administer the following elements of a property management plan:

\(i\) Property maintenance

\(ii\) Rent collection

\(iii\) PIC 50058 reporting

\(iv\) Site-based management experience

\(v\) Tenant grievances

\(vi\) Evictions

\(vii\) Occupancy rate

\(viii\) Unit turnaround

\(ix\) Preventive maintenance

\(x\) Work order completion

\(xi\) Project-based budgeting

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

\(xiii\) Energy Audits

\(xiv\) Utility/Energy Incentives

\(b\) You will receive 0 points if your application does not demonstrate
that you or your property manager have the goals and plans necessary to
administer the above elements of a property management plan.

**g. PHA or MTW Plan** - 1 point.

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

\(2\) You will receive 0 points if you have not incorporated the
revitalization plan described in your application into your PHA or MTW
plan, or if your application does not address this factor to an extent
that makes HUD's rating of this factor possible.

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

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

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

\(3\) If you have been rated as a Troubled Performer that is either
Troubled in One Area or Overall Troubled as of the application
submission date, you will receive 0 points.

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

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

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

**i.** **Regular Maintenance** -- 2 points.

\(1\) Unless the targeted project is vacant, your normal practice should
be to continue regular maintenance. HUD will measure your most recent
PHAS physical inspection Prevalence Report scores for the maintenance
defects that are included in the "TOP 20" and compare it to your
previous Prevalence Report scores for the same maintenance defects.

\(2\) Vacant Targeted Project. You will receive 2 points if your
application demonstrates that, on the application submission date, the
targeted project was vacant.

\(3\) Occupied Targeted Project.

\(a\) You will receive 2 points if your Prevalence Report score for the
above "TOP 20" maintenance defects has improved.

\(b\) You will receive 0 points if your Prevalence Report score for the
above "TOP 20" maintenance defects has not improved.

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

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

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

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

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

\(2\) If you have been rated as Standard for your most recent SEMAP
rating as of the application submission date, you will receive 1 point.

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

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

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

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

**2. RATING FACTOR: Need - 24 Points Total.**

a\. Severe Physical Distress of the Public Housing Development - 10
Points

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

\(a\) You will receive up to 3 points if your application demonstrates
that there are major deficiencies in the project\'s infrastructure,
roofs, electrical, plumbing, heating and cooling, mechanical systems,
settlement, and other deficiencies in Housing Quality Standards.

\(b\) You will receive up to 3 points if your application demonstrates
that there are poor soil conditions, inadequate drainage, deteriorated
laterals and sewers, and inappropriate topography.

\(c\) You will receive up to 4 points if your application demonstrates
that the project has at least three of the following major design
deficiencies, including:

\(i\) Inappropriately high population density, room, and unit size and
configurations;

\(ii\) Isolation;

\(iii\) Indefensible space;

\(iv\) Significant utility expenses caused by energy conservation
deficiencies that may be documented by an energy audit; and

\(v\) Inaccessibility for persons with disabilities with regard to
individual units (less than 5 percent of the units are accessible),
entranceways, and common areas.

b\. Impact of the Severely Distressed Site on the Surrounding
Neighborhood - 3 Points

\(1\) HUD will evaluate the extent to which the severely distressed
public housing project is a significant contributing factor to the
physical decline of, and disinvestment by, public and private entities
in the surrounding neighborhood. In making this determination, HUD will
evaluate your narrative, crime statistics, photographs or renderings,
socio-economic data, trends in property values, evidence of property
deterioration and abandonment, evidence of underutilization of
surrounding properties, and indications of neighborhood disinvestment.

\(2\) You will receive up to 3 Points if your application demonstrates
that the project has a significant impact on the surrounding
neighborhood, as documented by each item listed above.

\(3\) You will receive up to 2 Points if your application demonstrates
that the project has a moderate impact on the neighborhood, and only
some of the items listed above are adequately documented.

\(4\) You will receive 0 Points if your application does not demonstrate
that the project has an impact on the surrounding neighborhood, or if
your application does not address this factor to an extent that makes
HUD's rating of this factor possible.

**c. Need for HOPE VI Funding -** 8 Points

(1) HUD will evaluate the extent to which you could undertake the
    proposed revitalization activities without a HOPE VI grant. Large
    amounts of available Capital Funds indicate that the revitalization
    could be carried out without a HOPE VI grant. Available Capital
    Funds are defined as non-obligated funds that have not been
    earmarked for other purposes in your PHA Plan. To determine the
    amount of FY 2000-2005 Capital Fund Program (including CIAP and CGP)
    funds currently available that could be used to carry out the
    proposed revitalization activities, HUD will employ data from LOCCS
    available at the time of the grant application submission date and
    information from the portions of the PHA Plan that you have
    submitted as part of your application. Funds earmarked in the PHA
    Plan for uses other than the revitalization proposed in this
    application will not be considered available. See Section IV.B. of
    this NOFA for documentation requirements.

> \(2\) You will receive 8 Points if your available Capital Funds
> balance is up to 20 percent of the amount of HOPE VI funds requested.
>
> \(3\) You will receive 6 Points if your available balance is 21 - 45
> percent of the amount of HOPE VI funds requested.
>
> \(4\) You will receive 4 Points if your available balance is 46 - 70
> percent of the amount of HOPE VI funds requested.
>
> \(5\) You will receive 2 Points if your available balance is 71 to 90
> percent of the amount of HOPE VI funds requested.
>
> \(6\) You will receive zero Points if your available balance is more
> than 90 percent of the amount of HOPE VI funds requested.

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

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

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

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

\(a\) the utilization rate of your Housing Choice Voucher program is 97
percent or higher; or

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

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

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

\(a\) the utilization rate of your Housing Choice Voucher program is
between 95 and 96 percent; or,

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

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

\(5\) You will receive 1 Point if your application demonstrates that the
higher of:

\(a\) the utilization rate of your Housing Choice Voucher program is
between 93 and 94 percent; or

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

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

\(6\) You will receive 0 Points if both the utilization rate of your
Housing Choice Voucher program and the occupancy rate of your public
housing inventory are less than 93 percent.

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

**a. Leverage.** Although related to match, leverage is strictly a
rating factor. Leverage consists of firm commitments of funds and other
resources. HUD will rate your application based on the amount of funds
and other resources that will be leveraged by the HOPE VI grant as a
percentage of the amount of HOPE VI funds requested. There are four
types of Leverage: Development and CSS, as described in "Program
Requirements," Section III.C.4.e. of this NOFA, and Anticipatory, and
Collateral as described in this rating factor. Each resource may be used
for only one leverage category. Any resource listed in more than one
category will be disqualified from all categories. If leverage sources
and amounts are not documented in accordance with Sections III.C.4. and
IV.B.6.c. of this NOFA, they will not be counted toward your leverage
amounts. In determining Leverage ratios, HUD will include as Leverage
the match amounts that are required by Section III.B. of this NOFA.

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

For each commitment document, HUD will evaluate the strength of
commitment and add the amounts that are acceptably documented. HUD will
then calculate the ratio of the amount of HUD funds requested to the
amount of funds that HUD deems acceptably documented. HUD will round
figures to two decimal points, using standard rounding rules. See
Section IV.B.6. of this NOFA for documentation requirements.

\(1\) LIHTC. Only LIHTC commitments that have been secured as of the
application submission date will be considered for the scoring under
this section. LIHTC commitments that are not secured (i.e.,
documentation in the application does not demonstrate they have been
reserved by the state or local housing finance agency) will not be
counted as leverage for scoring under this section. Only tax credits
that have been reserved specifically for revitalization performed
through this NOFA will be counted as development leverage.

\(2\) Private mortgage-secured loans and other debt.

\(a\) Where there is both a construction loan and a permanent take-out
loan that will replace that construction loan, you must provide
documentation of both, but only the value of the permanent loan will be
counted as leverage.

\(b\) For privately financed homeownership construction loans,
acceptable documentation of construction loans will be considered as
leverage. Documentation of permanent financing is not required.

\(c\) If you have obtained a construction loan but not a permanent loan,
the value of the acceptably documented construction loan will be counted
as leverage.

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

\(4\) You will receive 6 Points if the ratio is between 1:2.50 and
1:2.99

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

\(6\) You will receive 4 Points if the ratio is between 1:1.50 and
1:1.99.

\(7\) You will receive 3 Points if the ratio is between 1:1.0 and
1:1.49.

\(8\) You will receive 2 Points if the ratio is between 1:0.50 and
1:0.99.

\(9\) You will receive one Point if the ratio is between 1:0.25 to
1:0.49.

\(10\) You will receive 0 Points if the ratio is less than 1:0.25, or if
your application does not address this factor to an extent that makes
HUD's rating of this factor possible.

**c. CSS Leveraging** -- 5 Points.

\(1\) Note that in order to count as leverage, CSS contributions must be
newly generated. Existing and newly generated TANF cash benefits will
not count as leverage. Newly generated non-cash services provided by
TANF agencies will count as leverage.

\(2\) You will receive 5 Points if the ratio of the amount of HOPE VI
funds requested for CSS activities to the dollar value of documented,
committed CSS resources leveraged from other sources is 1:2 or higher.
Note that wages projected to be paid to residents through jobs, or
projected benefits (e.g., health/insurance/retirement benefits) related
to projected resources to be provided by CSS partners are not sources of
leverage. If no HOPE VI funds are requested for CSS activities because
all CSS funds will come from outside sources, all adequately-documented
funds from such outside sources will be counted and you will receive 5
Points.

\(3\) You will receive 4 Points if the ratio is between 1:1.75 and
1:1.99.

\(4\) You will receive 3 Points if the ratio is between 1:1.5 and
1:1.749.

\(5\) You will receive 2 Points if the ratio is between 1:1.25 and
1:1.49.

\(6\) You will receive one Point if the ratio is between 1:1 and
1:1.249.

\(7\) You will receive 0 Points if the ratio is less than 1:1, or if
your application does not address this factor to an extent that makes
HUD's rating of this factor possible.

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

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

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

\(2\) You will receive 0 Points if the ratio of the amount of HOPE VI
funds requested for physical development activities, to the amount of
your documented anticipatory resources is less than 1:0.1.

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

Collateral investment includes physical redevelopment activities that
are currently underway, or that have yet to begin but are projected to
be completed before October 1, 2010. In order for a leverage source to
be counted as collateral investment, your application must demonstrate
that the related activities will directly enhance the new HOPE VI
community, but will occur whether or not a Revitalization grant is
awarded to you and the public housing project is revitalized. This
includes economic or other kinds of development activities that would
have occurred with or without the anticipation of HOPE VI funds. These
resources cannot duplicate any other type of resource and cannot be
counted as match. Examples of collateral investments include local
schools, libraries, subways, light rail stations, improved roads, day
care facilities, and medical facilities.

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

\(2\) You will receive 0 Points if the ratio of the amount of HOPE VI
funds requested for physical development activities (not including CSS
or administration) to the amount of your documented collateral resources
is less than 1:1.0.

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

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

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

You will receive one Point for each of the following criteria met in
your application, which are over and above the threshold requirements
listed in Section III.C.4. of this NOFA.

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

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

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

**5. RATING FACTOR: Community and Supportive Services -- 13 Points
Total**

**a. CSS Program Requirements.** See Section III.C.4.l. and m. for CSS
program requirements. In your application, you will describe your CSS
plan, including any plans to implement a CSS Endowment Trust. Each of
the following subfactors will be rated separately.

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

You will receive 2 Points if your application demonstrates that you will
be able to provide case management within 30 days from the date of grant
award execution so that residents who will be relocated have time to
participate and benefit from CSS activities before leaving the site.

**c. Needs Identification --** 1 point.

You will receive one Point if your CSS Program has been developed in
response to a rigorous resident needs identification process and
directly responds to the identified needs.

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

You will receive up to 5 Points if you address the methods you will use
to assist public housing residents in their efforts to transition to
other affordable and market-rate housing, i.e., to gain "housing
self-sufficiency."

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

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

\(b\) Relates your other CSS and FSS activities and efforts to the
transition of public housing residents to housing self-sufficiency; and

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

\(2\) You will receive up to 2 Points if your CSS Program includes and
addresses at least two of the above three items (a) through (c) above.

\(3\) You will receive 0 Points if your CSS Program includes and
addresses less than two of the above items (a) through (c) above.

**e. Housing Self-Sufficiency Time Frame --** 2 points.

\(1\) You will receive 2 points if you demonstrate that you plan to move
HOPE VI public housing families not headed by an elderly or disabled
person to other public housing if they have not attained housing
self-sufficiency, i.e., do not have the ability to transition out of
public housing, within five (5) years after the date that they occupied
their units.

\(2\) You will receive 1 point if you demonstrate that you plan to move
HOPE VI public housing families not headed by an elderly or disabled
person to other public housing if they have not attained housing
self-sufficiency, i.e., do not have the ability to transition out of
public housing, within ten (10) years after the date that they occupied
their units.

\(3\) You will receive 0 points if you do not demonstrate that you plan
to move HOPE VI public housing families not headed by an elderly or
disabled person to other public housing if they have not attained
housing self-sufficiency, i.e., do not have the ability to transition
out of public housing, within at least ten (10) years after they have
occupied their units.

**f. Partner Commitments** -- 1 point. You will receive one Point if you
provide letters from a variety of experienced organizations and service
providers that represent strong relationships and commitments to
participate in your CSS activities and accomplish your CSS goals of the
program.

**g. Quality and Results Orientation** -- 2 points. You will receive 2
Points if you have proposed a high quality, results-oriented CSS program
that is based on a comprehensive case management system and enables
residents affected by the revitalization plan to access, at a minimum,
basic elements of education, job training, and other services that will
assist them in transforming their lives and becoming self-sufficient.

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

See Sections III.C.4. of this NOFA for Relocation and Relocation Plan
requirements. For all applicants, whether you have completed, or have
yet to complete, relocation of all residents of the targeted project,
your HOPE VI Relocation Plan must include the three goals set out in
Section 24 of the 1937 Act, as described in Sections a.(1)(a), (b) and
(c) below.

a\. You will receive up to 5 Points for this Factor if:

\(1\) Your Relocation plan:

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

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

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

b\. You will receive up to 4 Points for this Factor if: Your Relocation
Plan complies with only two of the goals in (a) through (c) above.

c\. You will receive up to 2 Points for this Factor if: Your Relocation
Plan complies with only one of the requirements in (a) through (c)
above.

d\. You will receive 0 Points for this Factor if: (1) Your Relocation
Plan does not comply with any of the requirements in (a) through (c)
above; or (2) Your application does not address this factor to an extent
that makes HUD's rating of this factor possible.

**7. RATING FACTOR: Fair Housing and Equal Opportunity -- 5 Points
Total**

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

\(1\) Accessibility - 2 Points.

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

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

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

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

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

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

\(b\) You will receive 1 Point if your application demonstrates that you
have a detailed plan to implement from one to four of the accessibility
priorities stated above, explaining why and how you will implement the
identified accessibility priorities.

\(c\) You will receive 0 Points if your application does not demonstrate
that you have a detailed plan that meets the specifications above, or if
your application does not address this factor to an extent that makes
HUD's rating of this factor possible.

\(2\) Universal Design - 1 Point.

(a) You will receive 1 Point if your application demonstrates that you
    have a specific plan to meet:

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

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

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

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

\(b\) You will receive 0 Points if your application does not demonstrate
that you have specific plans to implement both (i) and (ii) as specified
above, or if your application does not address this factor to an extent
that makes HUD's rating of this factor possible.

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

\(1\) Fair Housing - 1 Point.

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

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

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

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

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

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

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

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

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

\(b\) You will receive 0 Points if you do not address all of the above
issues, or if your application does not address this factor to an extent
that makes HUD's rating of this factor possible.

**c. Economic Opportunities for Low- and Very Low-Income Persons
(Section 3)** - 1 Point.

\(1\) HOPE VI grantees must comply with Section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities
for Low-and Very Low-Income Persons in Connection with assisted
Projects) and its implementing regulations at 24 CFR part 135.
Information about Section 3 can be found at HUD\'s Section 3 website at
[www.hud.gov/fhe/sec3over.html]{.underline}.

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

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

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

> \(3\) You will receive 0 Points if your plan to implement Section 3
> does not meet the standards listed in Section (1) above, or if your
> application does not address this factor to an extent that makes HUD's
> rating of this factor possible.

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

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

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

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

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

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

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

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

\(3\) Scoring when there will be [No Need]{.underline} for More
Affordable Housing after the Targeted Project is Demolished -- 1 Point.

\(a\) You will receive 1 Point for this factor if your application
demonstrates that either:

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

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

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

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

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

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

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

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

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

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

\(iv\) You will receive 2 Points if your application demonstrates that
the number of project-based affordable units in your plan is 110 to 124
percent of the number of public housing units that the targeted project
contained on the application submission date

\(v\) You will receive 1 Point if your application demonstrates that the
number of project-based affordable units in your plan is 100 to 109
percent of the number of public housing units that the targeted project
contained on the application submission date.

\(vi\) You will receive 0 Points if your application demonstrates that
the number of project-based affordable units in your plan is less than
the number of public housing units that the targeted project contained
on the application submission date or if your application does not
address this factor to an extent that makes HUD's rating of this factor
possible.

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

\(1\) Factor Background

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

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

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

\(2\) Scoring.

You will receive 1 Point if you propose to develop an off-site housing
component(s) and document that: you have site control of the
property(ies), that the site(s) meets all environmental review
requirements, and that the site(s) meets site and neighborhood
standards, in accordance with Section III.C.4.n.(1) of this NOFA.

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

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

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

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

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

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

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

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

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

\(3\) You will receive 0 Points for this factor if you do not propose to
include homeownership units in your Revitalization plan, your proposed
program is not feasible and well defined, or if your application does
not address this factor to an extent that makes HUD's rating of this
factor possible.

**9. RATING FACTOR: Soundness of Approach -- 26 Points Total**

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

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

\(a\) Types and numbers of units;

\(b\) Budgets;

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

\(d\) Numbers of residents affected.

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

\(3\) You will receive 1 point if your application has a high level of
quality, but contains minor internal discrepancies;

\(4\) You will receive 0 points if your application fails to demonstrate
an acceptable level of quality and consistency;

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

\(1\) You will receive 5 points if your application demonstrates that
your Revitalization plan:

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

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

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

\(d\) Fulfills the needs that your application demonstrated for Rating
Factor 2.

\(2\) You will receive 3 points if your application only moderately
demonstrates the criteria of (1)(a)-(d) above.

\(3\) You will receive zero Points if your application does not
demonstrate the criteria of (1)(a)-(d) above.

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

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

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

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

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

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

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

\(3\) You will receive 0 Points if your application does not demonstrate
that your Revitalization plan will have an effect on the surrounding
community, as described in (a) through (d) above, or if your application
does not address this factor to an extent that makes HUD's rating of
this factor possible.

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

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

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

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

\(3\) You will receive 1 Point if a Master Development Agreement (MDA)
has been developed and is ready to submit to HUD. However, in cases
where the PHA (not an affiliate/subsidiary/instrumentality) will act as
its own developer for all components of the Revitalization plan, then an
MDA is not needed and the one point will be awarded automatically.

\(4\) You will receive 1 Point if your preliminary site design is
complete.

\(5\) You will receive 1 Point if you have held five (5) or more public
planning sessions leading to resident acceptance of the plan.

**e. Design** - 3 Points.

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

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

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

\(c\) Your plan proposes appropriate enhancements of the natural
environment.

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

\(3\) You will receive 0 Points if your proposed design is perfunctory
or otherwise does not address the elements in (1) above. You will also
receive 0 Points if your application does not address this factor to an
extent that makes HUD's rating of this factor possible.

**f. Energy Star** -- 1 Point

\(1\) Promotion of Energy Star compliance is a HOPE VI Revitalization
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 replacement units; and

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

\(2\) You will receive 0 Points if your application does not demonstrate
that you will perform (a) through (c) above.

**g. Evaluation** - 3 Points.

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

\(1\) You will receive 3 Points if your application includes a letter(s)
from an institution(s) of higher learning, foundations, or other
organization that specializes in research and evaluation that provides a
commitment to work with you to evaluate your program and describes its
proposed approach to carry out the evaluation if your application is
selected for funding. The letter must provide the extent of the
commitment and involvement, the extent to which you and the local
institution of higher learning will cooperate, and the proposed
approach. The commitment letter must address all of the following areas
for evaluation:

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

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

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

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

\(2\) You will receive zero Points if your application does not include
a commitment letter that conforms to the specifications in paragraph (b)
above.

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

**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]{.underline}, [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 describe your local and
state governments' efforts to decrease regulatory barriers.

**b. Scoring.**

\(1\) If you are 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 local unit of
government's jurisdiction, you are 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 you check Column 2 for five to ten questions from PART A, you
will receive 1 point in the NOFA evaluation.

\(b\) If you check Column 2 for eleven or more questions from PART A ,
you will receive 2 points in the NOFA evaluation.

\(2\) If you are considered a state government, or an agency or
department of a state government, applying for funding for a project
located in the state government's jurisdiction, or areas otherwise not
covered in Part A, you are invited to answer the 15 questions in PART B.

\(a\) If you check Column 2 for four to seven questions from PART B, you
will receive one point in the NOFA evaluation.

\(b\) If you check Column 2 for eight or more questions from PART B ,
you will receive two points in the NOFA evaluation.

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

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

\(5\) Applicants must submit the required documentation to receive
points for this policy priority.

**B. Reviews and Selection Process.**

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

**1. Application Screening**.

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

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

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

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

**c. Corrections to Deficient Applications -- Cure Period.** The
subsection entitled, "Corrections to Deficient Applications," in Section
V.B.4. of the General Section is incorporated by reference and applies
to this NOFA. This sub-section describes the Technical Deficiencies cure
period.

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

**2. Preliminary Rating and Ranking.**

**a. Rating.**

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

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

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

\(4\) The maximum number of points for each application is 129.

**b. Ranking.**

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

3\. Final Panel Review.

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

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

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

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

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

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

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

5\. In accordance with the FY2005 HOPE VI appropriation, HUD may not use
HOPE VI funds to grant competitive advantage in awards to settle
litigation or pay judgments.

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

**7. Remaining Funds.**

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

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

\(2\) If the total amount of funds requested by all applications found
eligible for funding under 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.

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

a\. HUD's Strategic Goals;

b\. Policy Priorities;

c\. Threshold Compliance;

d\. Corrections to Deficient Applications;

e\. Rating; and

f\. Ranking.

## VI. Award Administration Information

**A. Award Notices**

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

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

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

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

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

a\. Adjustments to Funding.

# B. Administrative and National Policy Requirements

**1. Timeliness of Development Activity.** Grantees must proceed within
a reasonable timeframe, as indicated below. In determining
reasonableness of such timeframe, HUD will take into consideration those
delays caused by factors beyond your control. These timeframes must be
reflected in the form of a program schedule, in accordance with the
threshold requirement at Section III.C.1.i. of this NOFA and the Rating
Factor requirement at Section V.A.1.c. of this NOFA.

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

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

c\. All other required components of the Revitalization plan and any
other submissions not mentioned above must be submitted in accordance
with the Quarterly Report Administrative and Compliance Checkpoints
Report, as approved by HUD.

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

e Grantees must submit the development proposal (i.e., whether
mixed-finance development, homeownership development, etc.) for the
first phase of construction within 12 months of grant award. The program
schedule must indicate the date on which the development proposal for
each phase of the revitalization plan will be submitted to HUD.

f The closing of the first phase must take place within 15 months of
grant award. For this purpose, "closing" means all financial and legal
arrangements have been executed and actual activities (construction,
etc.) are ready to commence.

g Grantees must complete construction within 48 months from the date of
HUD\'s approval of your Supplemental Submissions. This time period for
completion may not exceed 54 months from the date the grant agreement is
executed.

**2. HOPE VI Endowment Trust Addendum to the Grant Agreement.** This
document must be executed between the grantee and HUD in order for the
grantee to use CSS funds in accordance with Section III.C.4.l. of this
NOFA.

**3. Revitalization Plan.** After HUD conducts a post-award review of
your application and makes a visit to the site, you will be required to
submit components of your Revitalization plan to HUD, as provided in the
HOPE VI Revitalization Grant Agreement. These components include, but
are not limited to:

a\. Supplemental Submissions, including a HOPE VI Program Budget;

b\. A Community and Supportive Services work plan, in accordance with
guidance provided by HUD;

c\. A standard or mixed-finance development proposal, as applicable;

d\. A demolition and disposition application, as applicable; and

e\. A homeownership proposal, as applicable.

**4. Management Agreement.** HOPE VI Revitalization grantees will be
required to develop Management Agreements that describe their operation
and management principles and policies for their public housing units.

**5.** **Match**

**a. Irrevocably Committed Match Donations and Leverage Resources.**
After award, during review of grantee mixed-finance, development or
homeownership proposals, HUD will evaluate the irrevocable nature of
Match and Leverage resources. During its evaluation, HUD will assess the
conditions precedent to the availability of the funds to the grantee.
HUD will assess the availability of the participating party(ies)\'s
financing, the amount and source of financing committed to the proposal
by the participating party(ies), and the irrevocability of those funds.
HUD may require an opinion of the PHA\'s and the owner entity\'s counsel
(or other party designated by HUD) attesting that counsel has examined
the availability of the participating party(ies)\'s financing, and the
amount and source of financing committed to the proposal by the
participating party(ies), and has determined that such financing has
been irrevocably committed by the participating party(ies) for use in
carrying out the proposal, and that such commitment is in the amount
required under the terms of the proposal.

**b. Evidence of Use.** Grantees will be required to show evidence that
matching resources were actually received and used for their intended
purposes through quarterly reports as the project proceeds. Sources of
matching funds may be substituted after grant award, as long as the
dollar requirement is met.

**c. Grantee Enforcement.** Grantees must pursue and enforce any
commitment (including commitments for services) obtained from any public
or private entity for any contribution or commitment to the project or
surrounding area that was part of the match amount.

**6. LOCCS Requirements.** The grantee must record all obligations and
expenditures in LOCCS.

7\. Conflict of Interest in Grant Activities.

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

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

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

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

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

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

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

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

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

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

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

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

\(E\) Whether the interest or benefit was present before the affected
person was in a position as described in Section (C) above;

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

\(G\) Any other relevant considerations.

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

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

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

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

**10. Final Audit.** Grantees are required to obtain a complete final
closeout audit of the grant's financial statements by a certified public
accountant (CPA), in accordance with generally accepted government audit
standards. A written report of the audit must be forwarded to HUD within
60 days of issuance. Grant recipients must comply with the requirements
of 24 CFR part 84 or 24 CFR part 85 as stated in OMB Circulars A-110,
A-87, and A-122, as applicable.

**11.** **Policy Requirements**

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

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

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

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

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

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

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

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

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

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

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

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

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

## C. Reporting

**1. Quarterly Report.**

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

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

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

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

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

**2. Logic Model Reporting.**

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

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

c\. 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.

**3. Final Report.**

a\. The grantees shall submit a final report, which will include a
financial report and a narrative evaluating overall performance against
its HOPE VI Revitalization plan. Grantees shall use quantifiable data to
measure performance against goals and objectives outlined in its
application. 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 for this purpose.

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

**VII. Agency Contacts**

## A. Technical Assistance.

1\. Before the application submission date, HUD staff will be available
to provide you with general guidance and technical assistance. However,
HUD staff is not permitted to assist in preparing your application. If
you have a question or need a clarification, you may call or send an
email message the Office of Public Housing Investments, attention:
Lawrence Gnessin, at 202-401-8812, extension 2676,
\<<lawrence_gnessin@hud.gov>\> or attention: Leigh van Rij, at
202-401-8812, extension 5788, \<<leigh_e._van_rij@hud.gov>\> (these are
not toll-free numbers). You may also call, fax, or write Mr. Milan
Ozdinec, 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
or speech challenges may access these telephone numbers through a text
telephone (TTY) by calling the toll-free Federal Information Relay
Service at (800) 877--8339.

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

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

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

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

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

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

# VIII. Other Information

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

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

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

1\. Executive Order 13132, Federalism;

2\. Public Access, Documentation and Disclosure**;**

4\. Section 103 of the HUD Reform Act;

5\. The FY 2004 HUD NOFA Process and Future HUD Funding Processes; and

6\. Sense of Congress.

**D. 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 an 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.

## 

Dated: [March 24, 2005.]{.underline}

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

Michael Liu, Assistant Secretary for

Public and Indian Housing