40836 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4596–N–01]

Notice of Funding Availability for the

Economic Development Initiative (EDI)

Community Empowerment Fund (CEF)

Pilot

AGENCY: Office of the Assistant

Secretary for Community Planning and

Development, HUD.

ACTION: Notice of Funding Availability.

SUMMARY: Purpose of the Program. This

Notice of Funding Availability (NOFA)

announces the availability of $10

million in FY–1998 EDI funds to

stimulate economic development by

local governments and private sector

parties. HUD desires to see the EDI

funds made available under this NOFA

and the related Section 108 funds used

to finance loans to businesses for

eligible economic development projects

that will provide near-term results and

demonstrable economic benefits, such

as job creation, needed business services

and facilities in underserved areas, and

increases in the local tax base. Under

this NOFA (in contrast to previous EDI

NOFAs), the use of EDI funds is

specifically limited to the funding of a

common debt service/loan loss reserve

to enhance the security of the related

obligations guaranteed by HUD under

Section 108 of the Act (as defined in

Section III(A)(1) below). An EDI grant

under this NOFA must be used in

conjunction with a new Section 108-

guaranteed loan commitment, at a

minimum ratio of at least $1 of EDI

funds for every $7 of new section 108

proceeds used.

Available Funds. $10 million in funds

appropriated for FY–1998 is available

for EDI grants under this NOFA.

Eligible Applicants. Eligible

applicants are Community Development

Block Grant entitlement units of general

local government and non-entitlement

units of general local government

eligible to receive loan guarantees under

24 CFR part 570, subpart M. Urban

counties as defined in 24 CFR 570.3 and

570.307 may apply for funding, but

units of general local government which

participate in the Urban County may not

submit an application independent of

the Urban County.

Application Deadline. August 18,

2000.

Match. None.

ADDITIONAL INFORMATION: 

I. Application Due Date, Further

Information, and Technical Assistance

Application Due Date. Please submit

your completed applications (one

original and two copies) on or before

12:00 midnight, Eastern time, on August

18, 2000, to the address shown below.

Address for Submitting Applications.

To HUD Headquarters. Submit your

completed application (an original and

one copy) to: Processing and Control

Unit, Room 7251, Office of Community

Planning and Development, Department

of Housing and Urban Development,

451 Seventh Street, SW, Washington,

DC 20410, Attention: EDI Grant—CEF

Pilot, by mail or hand delivery. As

noted below, an additional copy of the

application is requested to be sent to the

appropriate HUD Field Office.

Timeliness of submission of and EDI

Grant-CEF Pilot application, however, is

determined by receipt of the original

application and one copy to HUD

Headquarters.

There is no application kit for this

NOFA. All information and material

required to submit an application for

funding under this NOFA are included

in the NOFA and the appendices to the

NOFA.

To the Appropriate CPD Field Office.

At the same time you submit your

application to HUD Headquarters, you

must submit an additional copy of your

application to the Community Planning

and Development Division of the

appropriate HUD Field Office for your

jurisdiction.

When submitting your application,

please refer to EDI–CEF Pilot, and

include your name, mailing address

(including zip code) and telephone

number (including area code).

For Further Information and

Technical Assistance. You may contact

Paul Webster of the Office of Economic

Development and Empowerment

Service, Department of Housing and

Urban Development, 451 Seventh Street,

SW, Room 7180, Washington, DC 20410;

telephone (202) 708–1871 (this is not a

toll-free number). Persons with speech

or hearing impairments may access this

number via TTY by calling the toll-free

Federal Information Relay Service at 1–

800–877–8339.

The Section 108 Loan Guarantee

program is not a competitive program

and therefore is not subject to the HUD

Reform Act. HUD staff will be available

to provide advice and assistance to

develop your Section 108 loan

applications.

Satellite Broadcast. HUD will hold an

information broadcast via satellite for

potential applicants to learn more about

the program and preparation of the

application. For more information about

the date and time of the broadcast, you

should consult the HUD web site at

http://www.hud.gov.

II. Amount Allocated

A maximum of $10 million is

available for the EDI grants under this

NOFA as appropriated in the

Department of Veterans Affairs and

Housing and Urban Development and

Independent Agencies Appropriations

Act, 1998 (Pub. L. 105’65, approved

October 27, 1997) (FY 1998 HUD

Appropriations Act) and set aside for

purposes of the development of the

CDBG Risk Reduction Pool (hereafter,

the CEF Pilot) as briefly described in the

FY 1998 NOFA for Economic

Development and Empowerment

Programs (see Economic Development

Initiative Section I(D) at 63 FR 23900).

III. Program Description; Eligible

Applicants; Eligible Activities

(A) Program Description. For

purposes of this NOFA, the EDI funds

awarded will be used solely to fund a

common debt service/loan loss reserve

account to enhance the security of

related obligations guaranteed by HUD

under Section 108 of the Act (as defined

in Section III(A)(1) below). An EDI grant

must be used in conjunction with a new

Section 108 guaranteed loan

commitment as more fully described

later in this document. Both Section 108

loan guarantee proceeds and EDI grant

funds are initially made available by

HUD to public entities approved for

assistance pursuant to this NOFA. Each

such public entity will use the Section

108 loan proceeds to make loans to

businesses to finance eligible economic

development projects and will assign its

rights under the related loan documents

to a pooling entity (described in this

NOFA as the ‘‘CEF Pilot’’).

Concurrently, the public entity will

provide EDI funds to the CEF Pilot to be

deposited into a common debt service/

loss reserve. Pursuant to 31 U.S.C. 1552,

all EDI funds awarded under this NOFA

must be expended by September 30,

2005. Consequently, all business loans

made with related section 108 proceeds

must be closed and taken into the pool

administered by the CEF Program

Manager by September 30, 2005. EDI

funds not so expended by September 30,

2005 may be recaptured by HUD. HUD

reserves the right to set an earlier date

for such expenditures in the EDI and/or

Section 108 loan guarantee documents.

(1) Definitions. Terms used in this

NOFA have the meanings given in 24

CFR part 570 unless otherwise

specified.

Act means Title I, Housing and

Community Development Act of 1974,

as amended, (42 U.S.C. 5301-et seq.).

Application means a single set of

documents submitted by an eligible

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40837

applicant for EDI grant funds

accompanied by a Section 108 loan

guarantee request in accordance with

the provisions of this NOFA to finance

a economic development projects.

Business loan means a loan made

with Section 108 proceeds by a

participating community selected under

this NOFA in accordance with the terms

of this NOFA for an eligible economic

development project.

CDBG funds means those funds

collectively defined at 24 CFR 570.3,

including grant funds received pursuant

to section 108(q) of the Act and this

NOFA.

CEF Pilot means a not-for-profit

limited liability company (‘‘LLC’’) that

is organized pursuant to Delaware law

to serve as the pooling entity to hold

and administer business loans made by

applicants selected under this NOFA.

CEF Program Manager means the

contractor selected by HUD to manage

the CEF Pilot. The contractor at this

time and its team of subcontractors are

described in Section III(A)(5)(h) of this

NOFA.

Economic Development Initiative

(EDI) means the competitive award of

economic development grant assistance

under section 108(q) of the Act, as

authorized by Section 232 of the

Multifamily Housing Property

Disposition Reform Act of 1994 (Pub.L.

103–233, approved April 11, 1994).

Economic development project means

a loan to a for-profit business to finance

a project that is eligible under the Act

and under 24 CFR 570.703(i)(1)–

570.203(b), and that increases economic

opportunity for persons of low-and

moderate-income or that stimulate or

retain businesses or jobs or that

otherwise lead to economic

revitalization.

Empowerment Zone or Enterprise

Community means an urban area so

designated by the Secretary of HUD

pursuant to 24 CFR part 597 or part 598,

or a rural area so designated by the

Secretary of Agriculture pursuant to 7

CFR part 25, subpart B.

Strategic Plan means a strategy

developed and agreed to by the

nominating local government(s) and

State(s) and submitted in partial

fulfillment of the application

requirements for an Empowerment Zone

or Enterprise Community designated

pursuant to 24 CFR part 597 or part 598.

(2) Background. (a) HUD has multiple

programs which are intended to

stimulate and promote economic and

community development. Primary

among HUD’s resources are the

Community Development Block Grant

(CDBG) program and the Section 108

loan guarantee program.

(b) The CDBG program provides grant

funds (approximately $4.240 billion in

FY 2000) by formula to eligible local

governments (either directly or through

States) to carry out community and

economic development activities. In

general, the Section 108 loan guarantee

program provides local governments

with a source of financing for economic

development, public facilities and other

eligible physical development projects.

More specifically, proceeds from loans

guaranteed under section 108 can be

used to make loans to third parties (e.g.,

for loans to for-profit businesses where

such assistance is appropriate to carry

out economic development projects), as

described in this NOFA.

HUD is authorized pursuant to

Section 108 to guarantee notes issued by

CDBG entitlement communities, and

non-entitlement units of general local

government eligible to receive funds

under the State CDBG program. The

Section 108 program is subject to the

regulations of 24 CFR part 570

applicable to the CDBG program, as

described in 24 CFR part 570, subpart

M. EDI grants must support Section 108

loan guarantees as generally described

in this NOFA.

(c) For FY 2000, the Section 108

program is authorized at $1.261 billion

in loan guarantee authority. The full

faith and credit of the United States will

be pledged to the payment of all

guarantees made under Section 108.

Under this program, communities (and

States, if applicable) are required by the

Act to pledge their continuing CDBG

allocations as security for loans

guaranteed by HUD. However, for

purposes of this NOFA, the CEF Pilot

will be responsible, to the extent of

reserve funds available, for making all

payments on the Section 108 loans from

amounts it collects on the business

loans and from the loss reserve created

from the EDI funds contributed by

participating communities. Only if such

reserves are exhausted will a

community (or State, if applicable) be

required to use CDBG funds to pay the

amount of any payment then due on its

related Section 108 obligation and not

paid by the LLC from reserves.

(3) EDI Program. The EDI program

was enacted in 1994 and is intended to

complement and enhance the Section

108 Loan Guarantee program. A purpose

of EDI grant funds is to reduce grantees’

potential loss of future CDBG

allocations:

(a) By strengthening the economic

feasibility of the projects financed with

Section 108 funds (and thereby

increasing the probability that the

project will generate enough cash to

repay the guaranteed loan);

(b) By directly enhancing the security

of the section 108-guaranteed

obligations; or

(c) Through a combination of these or

other risk mitigation techniques.

(4) Purpose of this EDI NOFA. For

purposes of this NOFA, HUD is

requiring EDI and related Section 108

funds to be used solely to finance

business loans meeting the criteria

described in Section III(A)(5) of this

NOFA. HUD expects such loans to

provide near-term results and

demonstrable economic benefits, such

as job creation, area benefit through

improved business services and

facilities in underserved areas, and

increases in the local tax base. The use

of EDI funds provided under this NOFA

is specifically limited to enhancing the

security of related section 108-

guaranteed obligations issued by eligible

applicants selected under this NOFA.

When a business loan eligible under this

NOFA is approved for inclusion in the

common security pool, the participating

community will be required to authorize

the requisite EDI contribution in

connection with that business loan to be

paid into a common debt service/loan

loss reserve interests in which will serve

as part of the security for the related

section 108-guaranteed obligations. The

process of underwriting and approval of

the business loans, the determination of

the amount of the related EDI

contributions, and how the business

loan pool and related debt service/loan

loss reserve will be set up and

administered is described in Section

III(A)(5) of this NOFA.

The CEF Pilot pooled business loan

and security structure described in this

NOFA for EDI-Section 108 financing is

intended to supplement, but not to

replace, the regular EDI and Section 108

loan guarantee programs. If funds are

appropriated for EDI in the future, HUD

would expect, subject to Congressional

direction, to continue both the CEF Pilot

financing structure and the regular EDI

and Section 108 programs.

(5) Description of the CEF Pilot. The

CEF Pilot is designed to mitigate the risk

of loss to a community’s CDBG program

inherent in making business loans

funded by Section 108 loans. The CEF

Pilot combines modern private sector

financial engineering with privatization

of much of the administration of

business loans.

(a) How the CEF Pilot will operate.

The CEF Pilot will hold and service the

Section 108 qualifying business loans

that are placed into the CEF Pilot by

participating communities. The key

components of the CEF Pilot are: the use

of EDI grant funds to provide a pooled

cash reserve to cushion against losses

40838 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

resulting from defaults on business

loans funded through the Section 108

program; and pooling of credit risk

associated with the business loans.

In return for the assignment of

business loan assets to the CEF Pilot, the

community receives an interest in the

CEF Pilot’s assets—the EDI cash reserve,

payments from the business borrowers,

and potential investment earnings on

the CEF Pilot’s available cash. The CEF

Pilot is designed to provide a flow of

cash payments that will effectively overcollateralize the community’s related

liabilities under its corresponding

Section 108 note or notes. To the extent

of available cash, the CEF Pilot will

make payments on the Section 108

note(s) for each participating

community and deposit any excess

payment received from the business

borrower into the cash reserve account.

The cash reserve account will absorb

business loan losses, until exhausted. At

the end of the CEF Pilot, participating

communities will receive a distribution

of any remaining cash in the cash

reserve account. This distribution will

be adjusted in proportion to the losses

experienced by the pool on loans the

communities have placed in the pool.

In addition to the community

building achieved from strengthening

new and expanding businesses through

Section 108 financing, communities will

receive substantial benefits from

participating in the CEF Pilot. They

include:

• Professional private sector

underwriting and loan pricing

• Significantly reduced Section 108 loss

exposure due to:

• Professional assessment of loan-byloan credit risk

• EDI grant funded cash reserve to

absorb losses, until exhausted

• Modern servicing techniques

• Pooling of credit risk

• Simplified, streamlined Section 108

and EDI approvals

• Relief from the administrative

burden of servicing Section 108

Business Loans

• Potential cash distribution of any

excess cash reserve to participating

communities on dissolution of the

CEF Pilot, adjusted for losses on

loans the community placed into

the pool.

HUD will continue its full faith and

credit guarantee of timely payment of

principal and interest to the investors

that provide the Section 108 funding to

municipalities and their constituents

through the standard interim financing

and underwritten public offering

processes. Participating communities

will continue to be the borrowers from

the Section 108 program and they will

continue to secure that borrowing with

a pledge to HUD of CDBG grants. Thus,

communities should note that HUD

cannot assure that CDBG funds will

never have to be used for Section 108

debt service. However, the CEF Pilot’s

cash reserve and its modern pooling and

credit enhancement techniques should

virtually eliminate the possibility of

catastrophic losses to communities as a

result of borrowing under Section 108.

Moreover, as noted above, any excess

cash in the reserve account will be

distributed to the participating

communities when the CEF Pilot wraps

up its existence.

As discussed below, the use of

professional and centralized servicing

and administration of the Section 108

business loans accepted into the CEF

Pilot will address any payment

delinquencies efficiently and mitigate

the likelihood of a business loan default.

In addition, any default or workout

situation will be handled by the CEF

Program Manager directly with the

business borrower and not with the

participating community.

(b) Types of loans that the CEF Pilot

will accept. Business loans accepted by

the CEF Pilot must meet the specific

requirements of both HUD and the CEF

Program Manager. The streamlined

application and approval process is

summarized in the section titled ‘‘The

CEF Pilot Business Loan Underwriting

and Pricing Process’’ below. Each

business loan must comply with the

program requirements described in

Section IV of this NOFA. Each business

loan will also be documented and

secured using standard loan and

security instrument forms to be

supplied by the CEF Program Manager,

customized as necessary for settlement

of the business loan.

The separate CEF Pilot requirements

are stated in the CEF Pilot Business

Loan Underwriting and Pricing

Guidelines (the ‘‘underwriting

guidelines’’) that are summarized below

(see section III(C)(5)(c)(i) of this NOFA

for availability to applicants of the

underwriting guidelines). Most notable

among these underwriting requirements

is the type of collateral. The primary

security must be a recorded lien on real

estate owned or leased by the recipient

of the business loan. HUD expects that

most of the loans in the pool to be set

up pursuant to this NOFA will be

secured solely by liens on real estate.

However, liens on ‘‘hard’’ physical

assets such as machinery and

equipment will be considered as

supplemental security, which will be

closely scrutinized as to value, useful

life, and general suitability as security.

Only the collateral and not the

‘‘purpose’’ of the Section 108 business

loan will determine its acceptability.

Thus, for example, even if a business

borrower intends to use the loan

proceeds for expanding its inventory,

the business loan may be approved for

the CEF Pilot if the borrower provides

acceptable real property collateral.

Loans originated by communities in

connection with business borrowers’

development, construction and

rehabilitation projects can be preapproved. The Section 108 interim

lending facility can be utilized for the

construction stage financing. The CEF

Pilot, subject to the completion of the

construction work, will accept

permanent financing of such loans.

The minimum size for a single

business loan to be included in the pool

to be set up pursuant to this NOFA is

two hundred thousand dollars

($200,000). The maximum business loan

size is two million dollars ($2,000,000).

Without prior approval from both HUD

and the CEF Program Manager, no single

community can place business loans

into the CEF Pilot totaling more than ten

million dollars ($10,000,000). It is

anticipated that a participating

community will use Section 108

guaranteed loan funds to make multiple

business loans.

Loan terms may range from fifteen to

twenty years with loan amortization

schedules not to exceed thirty years.

Moreover, the cumulative scheduled

principal and interest payments on the

corresponding Section 108 note may not

exceed the cumulative scheduled

monthly amortization on the business

loan or loans for the same period.

The interest rate on each business

loan will exceed the interest rate on the

community’s corresponding Section 108

obligation. The amount of such

‘‘spread’’ depends upon the credit risk

presented by the particular loan as set

forth in the underwriting guidelines,

and will be established by the CEF

Program Manager.

To defray start-up expenses, the CEF

Pilot will assess an ‘‘acceptance fee’’ on

all business loans when the loan

proceeds are remitted to the business

borrower. (See Section III(A)(5)(g) which

addresses fees and expenses.) The

business borrower may pay the

acceptance fee at the closing of the

project loan, or the community may

elect to capitalize the amount of this fee

into the Section 108 note and the

principal amount of the business loan.

(c) The CEF Pilot Business Loan

Underwriting and Pricing Process. The

CEF Pilot will utilize the uniform

underwriting guidelines for all business

loans considered for contribution into

the CEF Pilot. The necessary steps to

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40839

take a project from its origination to

underwriting and then to acceptance by

the CEF Pilot involve three major

processes: qualification and application,

underwriting and due diligence, and

commitment and closing.

(i) Qualification and Application. The

first step in the qualification and

application process is the prequalification and training of local loan

originators/underwriters selected by the

CEF Program Manager. The training

process will also include training for the

participating communities with regard

to the CEF program and underwriting

guidelines. An integral component of

the underwriting guidelines is the CEF

pricing model (the ‘‘pricing model’’).

(Note: The CEF Pilot underwriting manual,

including underwriting guidelines, and

related documents will be available from

HUD Headquarters upon request, to the

extent they are completed by the CEF

Program Manager and approved by HUD.

Please contact the HUD office identified

under ‘‘For Further Information and

Technical Assistance under Section I of the

NOFA.)

The local loan originators/

underwriters will initiate the

application process and utilize the CEF

Pilot underwriting and pricing

guidelines to ‘‘size’’ and price the

business loans. The pricing model will

determine the optimal loan terms,

applicable risk tier of the business loan

and the corresponding amount of EDI or

other funds required for the cash

reserve.

If a business loan successfully passes

the initial review by the local originator/

underwriter, the CEF Pilot’s central

underwriter (identified below) will

conduct a preliminary review of the

efforts of the local originator/

underwriter and determine if the

business loan is congruent with the type

and quality of assets to be contributed

to the CEF Pilot. If necessary, the central

underwriter will revise the preliminary

pricing and initial required reserve

amount as appropriate and provide the

potential project with indicative loan

terms.

In parallel, the HUD Field Office will

review the proposed project (not the

CEF pricing) for compliance with

Section 108 program requirements. If

the local HUD office approves the

proposed project, Section 108 funds are

made available to the community to

fund the business loan. It is important

to highlight the separation of roles: the

community and HUD will continue to

review projects for compliance with the

various requirements of Section 108,

while the CEF Program Manager and its

team will review business loans for

compliance with the underwriting

criteria of the CEF Pilot.

The final step in this initial process is

for the community or the local

originator/underwriter to prepare and

issue the standard CEF Pilot Loan

Application to the business borrower. If

the business borrower elects to execute

the loan application, the business

borrower will be charged an application

fee. (See Section III(C)(5)(g) for a

discussion of fees.) The estimated

timeframe for the steps involved in

qualification and application process is

five to seven business days.

(ii) Underwriting and Due Diligence.

The next process is formal underwriting

and due diligence. Once the business

borrower executes the formal

application, the community engages the

pre-qualified and trained local

originator/underwriter to initiate formal

underwriting of the project under

consideration. The local originator/

underwriter processes the loan

application and underwrites the

proposed transaction using the CEF

Pilot Underwriting Manual. The local

originator/underwriter maintains close

contact with the CEF Pilot central

underwriter so that any underwriting

issues are identified and addressed as

early in the process as possible. The

local originator/underwriter will

document its conclusion in a Loan

Recommendation Memorandum. This

memorandum (a spreadsheet-based

template) will document the local

originator/underwriter’s compliance

with the underwriting guidelines, as

well as document the local originator/

underwriter’s assumptions and

argument for the conclusion that the

loan be either approved, approved

subject to specific conditions, or

rejected. The local originator/

underwriter will make every effort to

present the case subject to the least

possible number of closing conditions.

The central underwriter then reviews

the loan recommendation

memorandum, with all pertinent

supporting documentation and reports.

The central underwriter arranges for a

loan committee meeting via telephone

conference. The loan committee is

composed of experts from the CEF

Program Manager’s contractor team. In

this meeting, the local originator/underwriter will present and defend its

recommendation. The meeting will

culminate with one of the following

from the central underwriter:

concurrence; concurrence subject to

revisions; or rejection of the local

originator/underwriter’s

recommendation. The central

underwriter will have the right to reject

any proposed business loan based on its

determination that the loan presents an

undue risk to the overall pooled loan

portfolio. Concurrence or rejection by

the central underwriter will be

documented by a Loan Approval/Denial

Letter summarizing the loan terms as

approved or revised, along with any

conditions to its approval or advice of

its denial. In the case of an approved

business loan, this document obligates

the CEF Pilot to accept the funded

business loan if all conditions to

approval are satisfied. The estimated

timeframe for the formal underwriting

and due diligence process is twenty five

to thirty five business days.

(iii) Commitment and Closing. After

completion of formal underwriting, the

central underwriter prepares a

Commitment Letter and forwards it to

the local originator/underwriter. The

local originator/underwriter forwards

the commitment letter to the community

for execution (after completion of the

community’s environmental review and

HUD approval of a release of funds in

accordance with Section VIII(A) of this

NOFA) and delivery to the business

borrower. Assuming that the business

borrower signs and returns the

commitment letter to the community,

the community forwards copies of the

executed commitment letter to the local

originator/underwriter and the central

underwriter. The local originator/

underwriter works with the business

borrower to satisfy any conditions of

closing the loan. The satisfaction of

closing conditions is evidenced by

Closing Condition Memoranda to be

prepared by the local originator/

underwriter and forwarded to the

central underwriter who concurs that

specific conditions have been satisfied.

Also during this period, the settlement

attorney (in accordance with standard

business practice the business borrower

pays for legal closing documentation to

be collected under the direction of the

central underwriter) prepares the CEF

Pilot’s standard loan documents. The

business borrower is given a reasonable

opportunity to review the loan and

security documents for its loan prior to

execution. The CEF Program Manager

informs the community and the local

HUD office that the transaction should

be funded upon execution and delivery

of closing documentation, which will

satisfy all closing conditions, to the

central underwriter. Section 108 funds

are disbursed to the business borrower

via the CEF Transmittal Account with

simultaneous exchange of the loan and

related documents contributed to the

CEF Pilot (see more complete

description of this process at Section

III(C)(5)(f), below). The estimated

40840 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

timeframe for commitment and closing

is twenty to thirty business days after

completion of underwriting and due

diligence.

(d) Structure of the CEF Pilot. The

legal form of the ‘‘CEF Pilot’’ is a notfor-profit limited liability company

(‘‘LLC’’) that is organized pursuant to

Delaware law. The term ‘‘CEF Pilot’’ is

used herein to refer to the LLC.

Participating communities will place

qualifying business loans into the CEF

Pilot, and communities awarded EDI

grant funds under this NOFA will

commit to use these funds for the CEF

Pilot’s pooled cash reserve. Specific

reserve amounts per loan will be

determined by application of the

underwriting guidelines on a case-bycase basis as described above. In return

for such contributions the participating

communities will receive ‘‘member

interests’’ initially based upon the

principal amount of the business loans

that they place in the CEF Pilot.

Once a business loan is approved for

the CEF Program and assigned to the

CEF Pilot, participating communities

will have no further administrative

burden with respect to financial

servicing and collection of the business

loan. The CEF Pilot will hold the

business loan assets and will receive

and account for the business borrowers’

loan payments. However, the

community remains responsible for any

data collection, reporting and

compliance issues with respect to

‘‘programmatic’’ matters—Section 108/

EDI national objectives, public benefit

and other regulatory requirements.

The business borrowers will make

their loan payments directly to the CEF

Pilot’s central servicer. The CEF Pilot

will receive payments from the central

servicer periodically and will be

required to use the cash that it collects

to make the principal and interest

payments on the corresponding Section

108 notes and to pay its operating

expenses. Available cash in excess of

those requirements will be added to the

cash reserve and invested in accordance

with the approved investment

guidelines. The cash reserve will be

used as necessary to enable the CEF

Pilot to meet the payment obligations on

the Section 108 notes when there are

shortfalls caused by loan delinquencies,

defaults and collection losses. If the

cash reserve experiences a shortfall in

available cash at anytime, the shortfall

will be apportioned ratably to all

participating communities. Should any

community not have CDBG allocations

available to make a payment then due

on the related Section 108 note as a

result of the shortfall, HUD will be

required to honor its guarantee of the

community’s Section 108 note in the

amount of the shortfall when the

payment is due. Should the community

later have sufficient CDBG allocations

available, HUD will recoup its guarantee

payment from that source. However, as

in the regular Section 108 program, the

community will not be generally liable

for payment from non-CDBG sources

unless the community specifically

agrees to another source of repayment

(see 24 CFR 570.705(b)(3) and (d)).

The CEF Pilot is ‘‘self-liquidating’’ in

that its assets will naturally shrink over

time as business loans amortize or prepay, or as the Pilot collects on the

collateral for any business loans that

may have defaulted. Eventually,

therefore, the CEF Pilot will have no

more loan assets. This may be twenty

years after the formation of the CEF

Pilot (the maximum permissible term

for the business loans), but it may be

somewhat earlier due to prepayments.

Additional payments may occur some

time later due to prolonged servicing

and workouts of business loans. Thus,

the ‘‘lifetime’’ for the CEF Pilot cannot

be predicted with certainty.

The CEF Pilot is designed with the

intention that by the time that the CEF

Pilot has collected upon all of the

business loans, the CEF Pilot will have

fully paid the related Section 108 notes.

It is also anticipated that an excess cash

reserve will then remain in an amount

that may be distributed to the

participating communities in proportion

to their outstanding member interests,

adjusted as described below. It is likely

that the amount of the reserve will

fluctuate somewhat over time in a path

determined by the flow of payments

into and out of the CEF Pilot, the timing

and resolution of credit problems, and

the CEF Pilot’s return on investment for

the reserve. If actual losses experienced

are not substantially in excess of

expectations, however, there should be

an excess cash reserve available for

distribution to the participating

communities. The amount a

participating community is eligible to

receive from such distribution will be

reduced if a business loan it assigns to

the CEF Pilot defaults and the default

results in a loss. The amount of the

reduction will be proportionate to the

loss or losses incurred.

(e) Credit Enhancements for

Participating Communities. The CEF

Pilot takes advantage of several modern

techniques for minimizing credit risk:

• Professional, objective, and

independent underwriting judgment in

the pricing of loans is the principal

credit loss safeguard.

• The use of EDI grant funds to

establish the cash reserve that will be

the initial ‘‘cushion’’ to absorb loan

losses.

• There will be a credit ‘‘spread’’

between the interest rates charged

business borrowers on the qualifying

business loans contributed to the CEF

Pilot as compared to the (lower) interest

rate assessed on the community’s

Section 108 note obligation.

• The CEF Pilot will have both the

EDI grant funds and the cash generated

by the interest rate spread available in

the reserve to absorb credit losses. The

CEF Pilot will invest the reserve (in safe

and liquid obligations approved by

HUD) so that there are earnings on the

reserve to absorb further any credit

losses.

• The pooling of losses against the

pooled reserve minimizes the

probability that total losses will exceed

the total reserve.

The general principle underlying the

CEF Pilot’s credit enhancement is ‘‘overcollateralization.’’ This means that,

because of the initial EDI funding of the

reserve, plus the cash inflow from the

interest rate spread, recoveries on

collateral, and earnings on the reserve

over time, the CEF Pilot should always

have assets on hand that exceed the

amount of the corresponding Section

108 liabilities provided that loan losses

do not significantly exceed

expectations.

The Underwriting Guidelines, the

financial design of the CEF Pilot, and

the prospective amounts of EDI grants,

are such that HUD is reasonably

confident that the reserve will insulate

participating communities from credit

losses of a catastrophic nature.

(f) Administration and Servicing of

business loans. The CEF Pilot involves

communities early, as business loans are

approved by HUD and by the CEF Pilot

central underwriter at origination, but

the CEF Program Manager and the other

members of the CEF Program Manager’s

contractor team then relieve

communities of the ongoing

administrative burden of servicing and

collection of the loan, as described

above in this NOFA.

There will be a standardized CEF

Pilot document package that will be

used for the underwriting, approval and

origination of all business loans.

The CEF Program Manager has

established a transmittal account for all

Section 108 fundings. When a business

loan is approved (by HUD and by the

CEF Pilot) and ready to close, the

lending community will execute and

deliver the Section 108 note and will

cause the Section 108 funds to be

transferred into the CEF Pilot’s

transmittal account. When the

underlying business loan closes, the

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40841

participating community will direct the

transfer of proceeds to the business

borrower’s account against delivery of

the borrower’s note, collateral

documents and other loan documents.

The participating community will

authorize delivery of the business

borrower’s loan documents to the CEF

Pilot with documentation of the transfer

of ownership of the business borrower’s

note to the CEF Pilot. The CEF Pilot will

contemporaneously receive the

corresponding loss reserve contribution

(source: EDI grant or other funds). Other

than monitoring periodic reports from

the Pilot, the lending community is

relieved of any financial loan

management responsibilities after

closing the project loan. (The

community does retain responsibility

for ensuring compliance with all

program requirements, e.g., complying

with the CDBG national objectives and

public benefit requirements and

ensuring business borrower’s

compliance with any conditions

imposed as a result of the

environmental review.) (See Section

III(C)(2) of this NOFA.) The community

will be able to use the periodic reports

as a source of information that may

assist it in monitoring compliance with

program requirements (e.g., if a business

loan is in default, it may indicate a

problem in meeting minimum job

creation requirements) as well as

monitoring the financial status of the

CEF Pilot.

The business borrowers will send

their monthly loan payments directly to

the CEF Pilot’s central servicer for

processing. The CEF Pilot will also

directly remit the required Section 108

note payments of principal and interest

to the Section 108 Fiscal Agent and

Trustee.

The CEF Pilot will issue regular

financial reports to the participating

communities and to HUD that detail the

performance of the loan assets, account

for cash inflows and outflows, and

report changes in the amounts of the

cash reserve balance, the unpaid

principal of the still outstanding

business loans, and the outstanding

Section 108 note balance.

(g) Fees and Expenses. The CEF Pilot

will charge an application fee to each

business borrower for business loans

considered for acceptance. For business

loans accepted by the CEF Pilot, each

business borrower will be charged an

acceptance fee of up to sixty two and

one half basis points (.625%) of the

business loan amount. In addition, the

CEF Pilot will charge an annual

operating fee of not less than .75% and

not more than 1.25% of the then

outstanding balance of the loan assets,

payable monthly, depending on the size

of the loan pool. (The ability of the

business borrower to make all payments

on the business loan, including the

monthly fees, will be an underwriting

consideration.)

There may be certain additional

expenses that the CEF Pilot incurs, and

which the business loan documents will

require the business to pay. Examples of

these expenses are the costs of

collecting on collateral for defaulted

loans, such as legal fees, recording fees,

trustee’s fees and the like. In addition

there may be incentive fees paid to a

Special Servicer engaged to collect upon

seriously delinquent or defaulted loans.

However, these fees will not be assessed

against the participating communities.

(h) The CEF Team of Private Sector

Contractors. The Bank of New York

Company, Inc. (‘‘BNY’’) is the CEF

Program Manager. BNY is a leading

provider of investor and trust services

worldwide. BNY will also serve as the

Manager of the LLC that the CEF Pilot

program first establishes.

Altschuler, Melvoin and Glasser LLP

(‘‘AM&G’’) is responsible for

underwriting and pricing the business

loans originated by the participating

communities and together with certain

affiliates will serve as the Central

Servicer and Central Underwriter for the

CEF Pilot.

First Security Investor Reporting

(‘‘First Security’’) is responsible for the

CEF loan pricing model and portfolio

reporting. First Security will work

closely with AM&G and HTCNY

throughout the CEF Pilot.

Brown & Wood LLP (‘‘Brown &

Wood’’) is Counsel to the CEF Program

Manager. Brown & Wood is an

international law firm headquartered in

New York, and has approximately 400

attorneys worldwide. Brown & Wood

has substantial experience with

securitization, public finance and other

financial practice areas of particular

relevance to the CEF Program.

Kormendi/Gardner Partners (‘‘KGP’’)

is the Financial Advisor to the Program

Manager.

In addition to the above identified

contractors, the CEF Program Manager

will select the local underwriters.

(i) The Program Manager was selected

by HUD by competition under Federal

contracting procedures, and the

development of documentation such as

the Underwriting Manual, pricing

model, standard loan documents, and

other necessary documentation,

including documents for the creation of

the CEF Pilot LLC, was funded by

HUD’s Office of Policy Development

and Research under a Federal

procurement contract. The contract

provides for certain program evaluation

and reporting responsibilities for the

Program Manager. Public entities

selected for EDI assistance, and

receiving related Section 108 loan

guarantee assistance, as well as

businesses applying for or receiving

business loans through the CEF Pilot,

shall cooperate with the Program

Manager and HUD in providing

reasonable information deemed

necessary by HUD in connection with

such program evaluation.

(B) Eligible Applicants. Any public

entity eligible to apply for Section 108

loan guarantee assistance pursuant to 24

CFR 570.702 may apply for EDI grant

assistance under Section 108(q). Eligible

applicants are CDBG entitlement units

of general local government and nonentitlement units of general local

government eligible to receive loan

guarantees under 24 CFR part 570,

subpart M. Urban Counties, as defined

at 24 CFR 570.3 and 570.307, are

eligible applicants for EDI funds; units

of general local government which

participate in an Urban County program

are not independently eligible

applicants. For non-entitlement

applicants other than those subject to 24

CFR 570, subpart F, applicants will be

required to provide proof that the State

will support the related Section 108

loan with a pledge of its CDBG funds

pursuant to the requirements of 24 CFR

570.705(b)(2). Note that effective

January 25, 1995, non-entitlement

public entities in the states of New York

and Hawaii were authorized to apply to

HUD for Section 108 loans (see 59 FR

47510, December 27, 1994). Thus, nonentitlement public entities in all 50

states and Puerto Rico are eligible to

participate in the Section 108 and EDI

programs. (Please note, however, that

the State of New York has initiated the

process of electing to administer the

CDBG program in non-entitlement areas

of the state; consequently, New York

non-entitlement public entities may be

required to provide proof that the State

is willing to pledge its CDBG funds to

the repayment of the Section 108

obligations.)

(C) Eligible Activities and National

Objectives. (1) EDI grant funds awarded

under this NOFA shall be used solely

for the purpose of establishing debt

service/loan loss reserves, eligible under

24 CFR 570.703(k). Section 108 loan

guarantee funds may be used solely for

activities listed at 24 CFR 570.703(i)(1)

and 24 CFR 570.203(b). If your

application, including the section 108

request (see Section IV(I) of this NOFA),

fail to provide for these uses, HUD will

not give the application a rating.

40842 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

(2) Each activity assisted with Section

108 loan guarantee or EDI funds must

meet a national objective of the CDBG

program as described in 24 CFR

570.208. You must clearly identify in

your narrative statement (as described

in Section V.(D) below) the CDBG

national objective your proposed project

will achieve and provide the

appropriate CDBG national objectives

regulatory citation found at 24 CFR

570.208. Also, you must address how

your proposed activities will comply

with the public benefit standards of the

CDBG program as reflected in the

regulation at 24 CFR 570.209 for the

CDBG Entitlement and Small Cities

programs or 24 CFR 570.482 for the

State CDBG program.

In the aggregate, your use of CDBG

funds, including any Section 108 loan

guarantee proceeds and section 108(q)

(EDI) funds provided pursuant to this

program section of this NOFA, must

comply with the CDBG primary

objectives requirement as described in

section 101(c) of the Act and 24 CFR

570.200(c)(3), or 24 CFR 570.484 in the

case of State grantees.

You will be responsible for

determinations, record-keeping and

other documentation of compliance

with the eligibility, national objectives,

and public benefit requirements, and

other applicable statutory and

regulatory requirements applicable to

EDI and section 108 funds (as cited in

this Section 111(C), with HUD approval,

in a manner similar to other EDI/section

108 awards. However, since the

business loans and EDI funds

contributed to the common debt service/

loan loss reserve will be common

security for all of the related section 108

obligations issued by the participating

jurisdictions selected under this NOFA,

and all such loans must be closed on

standard loan documents provided by

the Program Manager as described in

Section III(A)(5) of this NOFA, you must

enter into any specific agreements with

participating businesses that you deem

necessary for purposes of compliance

with such requirements, such as job

creation goals, business location

requirements, etc, separately from the

standard loan documents provided by

the Program Manager.

IV. Program Requirements

This section provides requirements

that are applicable to applicants for

funding under this NOFA as well as

applicants that are awarded EDI grants

under this NOFA.

(A) CDBG Program Regulations. In

addition to 24 CFR 570.701

(Definitions), 570.702 (Eligible

applicants), and 570.703 (Eligible

activities), as explained elsewhere in

this NOFA, the CDBG regulatory

requirements in 24 CFR 570.707,

including subpart J (Grant

Administration), subpart K (Other

Program Requirements), and subpart O

(Performance Reviews) govern the use of

EDI funds, as applicable.

(B) Compliance with Applicable Laws.

An award of EDI funding does not in

any way relieve you or third party users

of EDI funds from compliance with all

applicable Federal, State and local laws.

(C) Thresholds Requirements—

Compliance with Fair Housing and Civil

Rights Laws. All applicants and their

subrecipients must comply with all Fair

Housing and civil rights laws, statutes,

regulations and executive orders as

enumerated in 24 CFR 5.105(a). If you

are a Federally recognized Indian tribe,

you must comply with the

nondiscrimination provisions

enumerated at 24 CFR 1000.12. While

an Indian tribe is not an eligible direct

recipient of a section 108 loan

guarantee, an Indian tribe may be a

subrecipient of an eligible unit of

general local government.

If you, the applicant—

(1) Have been charged with a systemic

violation of the Fair Housing Act by the

Secretary alleging ongoing

discrimination;

(2) Are a defendant in a Fair Housing

Act lawsuit filed by the Department of

Justice alleging an ongoing pattern or

practice of discrimination; or

(3) Have received a letter of

noncompliance findings under Title VI,

Section 504, or Section 109—

HUD will not rate and rank your

application under this NOFA if the

charge, lawsuit, or letter of findings has

not been resolved to the satisfaction of

the Department before the application

deadline stated in this NOFA. HUD’s

decision regarding whether a charge,

lawsuit, or a letter of findings has been

satisfactorily resolved will be based

upon whether appropriate actions have

been taken to address allegations of

ongoing discrimination in the policies

or practices involved in the charge,

lawsuit, or letter of findings.

(D) Additional Nondiscrimination

Requirements. You, the applicant and

your subrecipients, must comply with

the Americans with Disabilities Act of

1990 (42 U.S.C. 1201 et seq.), and Title

IX of the Education Amendments Act of

1972 (20 U.S.C. 1681 et seq.).

(E) Affirmatively Furthering Fair

Housing. If you are a successful

applicant, you will have a duty to

affirmatively further fair housing. Again,

except as may be provided otherwise in

this NOFA, you, the applicant, should

include in your application or work

plan the specific steps that you will take

to:

(1) Address the elimination of

impediments to fair housing that were

identified in the jurisdiction’s Analysis

of Impediments (AI) to Fair Housing

Choice;

(2) Remedy discrimination in

housing; or

(3) Promote fair housing rights and

fair housing choice.

Further, you, the applicant, have a

duty to carry out the specific activities

provided in your responses to the NOFA

rating factors that address affirmatively

furthering fair housing. However, such

activities may not be funded from the

EDI funds awarded under this NOFA

since the funds must be used

exclusively for debt service/loan loss

reserves.

Since all eligible applicants will also

be CDBG grantees, or nonentitlement

CDBG recipients from States, the

applicant may satisfy its affirmatively

furthering fair housing obligation

hereunder by referring to satisfactory

provisions in its Consolidated Plan, as

applicable.

(F) Economic Opportunities for Low

and Very Low-Income Persons (Section

3). If you are awarded an EDI grant, you

will be required to 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

the HUD regulations at 24 CFR part 135,

including the reporting requirements in

subpart E of part 135. Section 3 requires

recipients to ensure that, to the greatest

extent feasible, training, employment

and other economic opportunities will

be directed to (1) low and very low

income persons, particularly those who

are recipients of government assistance

for housing and (2) business concerns

which provide economic opportunities

to low-and very low-income persons.

(G) Relocation. 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 HUDassisted 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 Uniform Relocation

Assistance and Real Property

Acquisition Policies Act of 1970, as

amended (URA), and the implementing

governmentwide regulation at 49 CFR

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40843

part 24. The relocation requirements of

the URA and the governmentwide

regulations cover any person who

moves permanently from real property

or moves personal property from real

property directly because of

rehabilitation or demolition for an

activity undertaken with HUD

assistance. In addition, pursuant to 24

CFR 570.704(e), you are required to

comply with additional requirements

referred to in 24 CFR 570.606, as well

as 24 CFR part 43.

(H) Conflicts of Interest. If you are a

consultant or expert who is assisting

HUD in rating and ranking applicants

for funding under this NOFA, you are

subject to 18 U.S.C. 208, the Federal

criminal conflict of interest statute, and

the Standards of Ethical Conduct for

Employees of the Executive Branch

regulation published at 5 CFR part 2635.

As a result, if you have assisted or plan

to assist applicants with preparing

applications for this NOFA, you may

not serve on a selection panel, and you

may not serve as a technical advisor to

HUD for this NOFA. All individuals

involved in rating and ranking this

NOFA, including experts and

consultants, must avoid conflicts of

interest or the appearance of conflicts.

Individuals involved in the rating and

ranking of applications must disclose to

HUD’s General Counsel or HUD’s Ethics

Law Division the following information

if applicable: How the selection or nonselection of any applicant under this

NOFA will affect the individual’s

financial interests, as provided in 18

U.S.C. 208; or how the application

process involves a party with whom the

individual has a covered relationship

under 5 CFR 2635.502. The individual

must disclose this information prior to

participating in any matter regarding

this NOFA. If you have questions

regarding these provisions or if you

have questions concerning a conflict of

interest, you may call the Office of

General Counsel, Ethics Law Division,

at 202–708–3815 and ask to speak to

one of HUD’s attorneys in this division.

(I) Related Section 108 Loan

Guarantee Application.

(1) Each EDI application must be

accompanied by a request for new

Section 108 loan guarantee assistance.

Notwithstanding the form of your

request for new section 108 loan

guarantee assistance under paragraphs

(a), (b), (c), or (d) of this section below,

you must include citations to the

specific regulatory subsections

supporting activity eligibility and

national objectives compliance for the

project described in your application.

For purposes of this NOFA, the only

acceptable activity eligibility citation for

use of EDI funds is 24 CFR 570.703(k)

and the only acceptable eligibility

citation for the related section 108 funds

is 24 CFR 570.703(i)(1)–570.203(b). Both

the EDI and Section 108 funds must be

used in conjunction with the same

business loans/economic development

projects. This request may take any of

several forms as defined below.

(a) A formal application for new

Section 108 loan guarantee(s), including

the documents listed at 24 CFR

570.704(b).

(b) A brief description (not to exceed

three pages) of the business loan

program to be applied for in a new

Section 108 loan guarantee

application(s). Such 108 application(s)

must be submitted within 60 days of a

notice of EDI selection, with HUD

reserving the right to extend such period

on a case-by-case basis where HUD

determines there is evidence of good

cause. EDI awards will be conditioned

on approval of actual Section 108 loan

commitments. This Section 108

application description must be

sufficient to support the basic eligibility

of the proposed business loan program

for Section 108 assistance. (See Section

III(C) of this NOFA.) In general, it

should also describe the location of the

lending area as well as the types of

businesses expected to participate and

the loan terms expected to be offered,

e.g., repayment period, lien priority, and

the purposes of the financing, such as

real estate acquisition, construction,

machinery and equipment, or working

capital.

(c) A copy of a pending, unapproved

Section 108 loan guarantee application,

and any proposed amendments to the

Section 108 application which are

related to the EDI application. The

applicant’s submission of such an EDI/

Section 108 application shall be deemed

by HUD to constitute a request to

suspend separate processing of the

Section 108 application. The Section

108 application will not be approved

until on or after the date of the related

EDI award.

(d) A request for a Section 108 loan

guarantee assistance (analogous to

Section IV.(I)(1)(a) or (b) of this NOFA

above) that proposes to increase the

amount of a previously approved

application. However, any amount of

Section 108 loan guarantee authority

approved before HUD’s award of an EDI

grant under this NOFA cannot be used

in conjunction with the EDI funds

awarded pursuant to this NOFA.

(2) Further, a Section 108 loan

guarantee amount that is required to be

used in conjunction with a prior EDI or

Brownfields Economic Development

Initiative (BEDI) grant award, whether

or not the Section 108 loan guarantee

has been approved as of the date of this

NOFA, is not eligible for use in

conjunction with an EDI award under

this NOFA. For example, if a public

entity has a previously approved

Section 108 loan guarantee commitment

of $12 million, even if none of the funds

have been utilized, or if the public

entity had previously been awarded an

EDI grant of $1 million and had certified

that it will submit a Section 108 loan

application for $10 million in support of

that EDI grant, the public entity’s EDI

application under this NOFA must

propose to increase the amount of its

total Section 108 loan guarantee

commitments beyond those amounts

(the $12 million or $10 million in this

example) to which it has previously

agreed.

(J) General Limitations on Use of EDI

and Section 108 Funds. Certain

restrictions shall apply to the use of EDI

and Section 108 funds:

(1) EDI grants must not be used as a

resource to immediately repay the

principal of a loan guaranteed under

Section 108. Repayment of principal is

only permissible with EDI grant funds

as a matter of security if other sources

projected for repayment of principal

prove to be unavailable.

(2) You may not use Section 108

funds to finance activities that also

include financing generated through the

issuance of federally tax exempt

obligations. Pursuant to Office of

Management and Budget (OMB)

Circular A–129 (Policies for Federal

Credit Programs and Non-Tax

Receivables), Section 108 guaranteed

loan funds may not directly or

indirectly support federally tax-exempt

obligations.

HUD will not consider for funding

any EDI proposal in which the related

Section 108 loan guarantee would be

used solely as security, and Section 108

funds are not drawn down until default

on the business loan. EDI funds are to

be used to support and enhance only

business loans financed with Section

108 loan guarantee proceeds from

HUD’s interim lending or public

offering mechanisms and thereby

leverage greater use of the Section 108

program. Awarding EDI funds to a

project which would use the Section

108 guarantee only as a security

guarantee for other financing can be

tantamount to making a simple grant to

the project and thereby fails to fulfill the

goals of the EDI program.

(K) Time-frames. EDI grant awards

will contain conditions requiring you to

adhere to your stated time-frames for

implementing your proposed projects

and drawing Section 108 and EDI funds.

40844 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

If you fail to adhere to these schedules,

HUD may recapture the EDI funds.

(L) Limitations on Grant Amounts. 

(1) HUD expects to approve EDI grant

amounts for approvable applications at

a range of ratios of EDI grant funds

awarded to new Section 108 loan

guarantee commitments, but the

minimum ratio will be $1 of EDI grant

funds for every $7 of Section 108 loan

guarantee commitments. In addition,

HUD expects on the average to achieve

even higher leverage ratios, e.g.,

approximately 1 to 10 under this NOFA.

For example, an applicant requesting

an EDI grant of $1 million will be

required to apply for a minimum of $7

million in new Section 108 loan

guarantee commitments. Of course, even

though the minimum EDI—Section 108

ratio is 1:7, applications with higher

ratios will receive more points under

Rating Factor 4, ‘‘Leveraging Resources/

Financial Need’’ and, all other things

being equal, will be more competitive.

However, applicants should bear in

mind that the leverage ratio is a function

of the risk level of the business loan

portfolio originated with Section 108

guaranteed loan funds. For example, if

the business loan portfolio of

Community A has a higher risk profile

than Community B’s portfolio, the

amount of EDI funds used to fund the

contribution to the CEF Pilot’s debt

service/loss reserve for Community A’s

business loans will be higher (as a

percentage of the aggregate loan

amount) than the required contribution

for Community B’s loans. The minimum

ratio of EDI grant funds to Section 108

commitments (i.e., 1:7) indicates loss

reserve contributions equal to

approximately 14% of the loan amount.

This further indicates that the business

loans originated by the community

whose application provided for the

minimum EDI—Section 108 ratio would

fall into a higher risk category than

would be the case with a higher EDI—

Section 108 ratio (e.g., 1:12).

An applicant community is therefore

encouraged to carefully consider the

risk profile of the business loan

portfolio it will originate with the

Section 108 guaranteed loan funds.

Applicants are also cautioned that very

high leverage ratios could be

determined by HUD to be unrealistic,

since even lower risk business loans

must be accompanied by contributions

to the CEF Pilot’s reserve. While the loss

reserve contribution for each business

loan would be determined on a case by

case basis, each loan will be classified

by the CEF Pilot underwriter as falling

in one of three risk tiers. Communities

may use the following guidelines in

developing proposed leveraging ratios:

(a) The minimum ratio of EDI grant

funds to Section 108 commitments of

1:7 indicates average EDI contributions

to the CEF Pilot’s reserves of

approximately 14% of the loan amount

and a relatively higher risk loan

portfolio;

(b) A ratio of EDI grant funds to

Section 108 commitments of 1:10

indicates average EDI contributions to

the CEF Pilot’s reserves of

approximately 10% of the loan amount

and a relatively moderate risk loan

portfolio; and

(c) A ratio of EDI grant funds to

Section 108 commitments of 1:13 (or

higher) indicates average EDI

contributions to the CEF Pilot’s reserves

of approximately 8% of the loan amount

and a lower risk portfolio.

Communities are also cautioned that

the CEF Program Manager will

continually evaluate the business loans

originated by a participating community

to ensure that the actual risk level of

that community’s portfolio is not

significantly higher than the risk level

indicated in the approved application.

The CEF Program Manager will have the

discretion to reject business loans for

acceptance into the CEF Pilot if the

loans fall within a higher risk tier than

indicated in the community’s

application and such acceptance would

have a material effect on the risk level

of the CEF Pilot’s portfolio. The

community should therefore ensure

when it originates loans that the actual

risk level of its business loan portfolio

is generally consistent with the risk

level described in its application.

Because a fundable application is

competitive in part because of the

applicant’s proposed ratio of EDI funds

to Section 108 guaranteed loan funds,

HUD will condition the EDI grant award

on the grantee’s achievement of that

specific ratio. Your failure to meet that

condition by obtaining timely HUD

approval of a commitment for, and

issuance of, the required Section 108

guaranteed obligations ratio may result

in the cancellation and recapture of all

or a proportionate share of the EDI grant

award.

Further, failure to give adequate

consideration to the issues discussed

above concerning the risk level of the

business loan portfolio during the

application development stage could

result in the following problems

following grant award. EDI grant

recipients whose applications provided

for the minimum EDI—Section 108

leverage ratio (i.e., $1 of EDI grant funds

for every $7 of Section 108 loan

guarantee funds) will be unable to use

all of their EDI funds if the actual risk

level is not as high as contemplated in

the EDI applications. In such case, HUD

may recapture the unused funds. On the

other hand, EDI grant recipients whose

applications included relatively high

leverage ratios will have insufficient EDI

grant funds to meet their minimum

Section 108 borrowing requirements if

their business loans are classified by the

CEF underwriter as falling in a higher

risk tier than originally contemplated.

(2) HUD will cap EDI awards at a

maximum of $1 million under this

NOFA.

(3) In the event you are awarded an

EDI grant that has been reduced below

the original request (e.g., insufficient

funds were available to fund the last

competitive application at the full

amount requested or there were

technical deficiencies that could not be

resolved), you will be required to

modify your project plans and

application to conform to the terms of

HUD’s approval before HUD will

execute a grant agreement. HUD also

may proportionately reduce or

deobligate the EDI award if you do not

submit approvable Section 108 loan

guarantee applications on a timely basis

(including any extension authorized by

HUD) in the amount required by the

EDI/108 leveraging ratio which will be

approved by HUD as a special condition

of the EDI grant award, or if insufficient

business loans are approved during the

term of your business loan program to

use the EDI funds awarded in the

required ratio. Any modifications or

amendments to your application

approved pursuant to this NOFA,

whether requested by you or by HUD,

must be within the scope of the

approved original EDI application in all

respects material to rating the

application, unless HUD determines

that the revised application remains

within the competitive range and is

otherwise approvable under this

competition.

(4) In the case of a requested increase

in guarantee assistance for a project

with a previously approved Section 108

loan guarantee commitment (as further

discussed in Section IV.(I)(1)(d) of this

NOFA, above), the EDI assistance

approved will be based on the increased

amount of Section 108 loan guarantee

assistance.

(M) Timing of Grant Awards. (1) To

the extent you submit a full Section 108

application with your EDI grant

application, HUD will evaluate the

Section 108 application concurrently

with the request for EDI grant funds.

Note that EDI grant assistance cannot be

used to leverage a Section 108 loan

guarantee approved prior to the date of

HUD’s announcement of an EDI grant

pursuant to this NOFA. However, the

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40845

1On December 21, 1994, President Clinton and

Vice President Gore designated 72 urban areas and

33 rural communities as Empowerment Zones or

Enterprise Communities. These designated areas

receive more than $1.0 billion in performance

grants and more than $2.5 billion in tax incentives.

On August 5, 1997, President Clinton signed the

Taxpayers Relief Act of 1997 which established a

second round of designations for 15 new urban

areas and 25 rural areas as Empowerment Zones or

Enterprise Communities. Round II designees were

announced in January 1999.

EDI grant may be awarded before HUD

approval of the Section 108

commitment if HUD determines that

such award will further the purposes of

the Act.

(2) HUD notice to you of the amount

and conditions of EDI funds awarded,

based upon review of the EDI

application, constitutes an obligation of

grant funds, subject to compliance with

the conditions of award and execution

of a grant agreement. EDI funds must

not be disbursed to the public entity

before the issuance of the related

Section 108-guaranteed obligations.

V. The Application Selection Process

(A) Rating Panels. To review and rate

your applications, HUD may establish

panels. These panels may include

persons not currently employed by

HUD. HUD may include these non-HUD

employees to obtain certain expertise

and outside points of view, including

views from other Federal agencies.

(B) Rating. HUD will evaluate and rate

all applications for funding that meet

applicable requirements and rating

factors for award described in this

NOFA. The rating of you, as the

‘‘applicant,’’ or of your organization,

‘‘the applicant’s organization and staff,’’

for technical merit or compliance will

include any sub-contractors,

consultants, and sub-recipients which

are firmly committed to the project.

(C) Factors for Award Used to

Evaluate and Rate Applications. (1)

Each rating factor and the maximum

number of points is provided below.

The maximum number of points to be

awarded is 102. All EDI applications

must obtain a score of at least 70 points

to be fundable. Depending upon the

program for which you the applicant

seek funding, the program may provide

for up to four bonus points as provided

in paragraphs (3)(a) and (3)(b) of this

Section V(C).

(2) All technically acceptable

applications will be scored under the

selection criteria below.

All acceptable EDI grant applications

will be separately ranked in order of

points assigned with the applications

receiving more points ranking above

those receiving fewer points. Acceptable

applications must be complete as

required by the submission

requirements of this NOFA.

Applications will be funded in rank

order until the total aggregate amount of

the applications funded is equal to up

to $10 million (subject to the

Department’s discretion described in

this NOFA).

(3) Bonus Points. (a) The NOFA

provides for the award of up to two

bonus points for eligible activities/

projects that the applicant proposes to

be located in federally designated

Empowerment Zones (EZs), Enterprise

Communities (ECs), or Urban Enhanced

Enterprise Communities (EECs) and

serve the residents of these federally

designated areas, and are certified to be

consistent with the strategic plan of

these federally designated areas. (For

ease of reference in the NOFA, these

federally designated areas are

collectively referred to as ‘‘EZs/ECs’’

and residents of these federally

designated areas as EZ/EC residents.) 1

This NOFA contains a certification

which must be completed for the

applicant to be considered for EZ/EC

bonus points. A list of the EZs, ECs and

EECs (as well as more information about

these designated areas) is available

through the HUD web site at http://

www.hud.gov. The list is also attached

to this NOFA as Appendix A.

(b) Court-Ordered Consideration. For

any application submitted by the City of

Dallas, Texas, for funds under this

NOFA for which the City of Dallas is

eligible to apply, HUD will consider,

under Rating Factor 3 below, the extent

to which the strategies or plans in the

city’s application or applications will be

used to eradicate the vestiges of racial

segregation in the Dallas Housing

Authority’s low income housing

programs. The City of Dallas should

address the effect, if any, that vestiges

of racial segregation in the Dallas

Housing Authority’s low income

housing programs have on potential

participants in the program covered by

this NOFA, and identify proposed

actions for remedying those vestiges.

HUD may add up to 2 points to the

score based on this consideration. This

special consideration results from an

order of the U.S. District Court for the

Northern District of Texas, Dallas,

Division.

(D) Narrative Statement. (1) Provide

narrative statements describing the

activities that you will carry out with

the EDI grant funds. Your narrative

statement must not exceed three (3) 8.5’’

by 11’’ pages.

(2) Describe how your proposed uses

of EDI funds will meet the national

objectives under 24 CFR 570.208 for the

CDBG program and qualify as eligible

activities under 24 CFR 570.703. You

must include citations to the specific

regulatory subsections supporting

activity eligibility and national

objectives compliance. (See Section

III(C) of this NOFA ).

(3) You must respond to the rating

factors below. Each of the listed rating

factors (or, where applicable, each

subfactor) below has a separate page

limitation specified.

(4) Print your narrative statements in

12 point type/font, and use sequentially

numbered pages.

(E) The Five Rating Factors. HUD will

consider your application for selection

based on the following factors that

demonstrate the quality of your

proposed project or activities, and your

capacity and commitment to obtain

maximum benefit from the EDI funds, in

accordance with the purposes of the

Act.

Rating Factor 1: Capacity of the

Applicant and Relevant Organizational

Experience (25 Points)

[Your response to this factor is limited

to three (3) pages.]

This factor addresses the extent to

which you have the organizational

resources necessary to successfully

implement your proposed activities in a

timely manner. The rating of the

‘‘applicant’’ or the ‘‘applicant’s

organization and staff’’ for will include

any subcontractors, consultants, and

subrecipients that are firmly committed

(i.e., has a written agreement or a signed

letter of understanding with the

applicant agreeing in principle to its

participation and role in the project). In

rating this factor, HUD will consider the

following:

(1) With regard to the EDI/Section 108

business loan program you propose, you

should demonstrate that you (or other

program participants) have the capacity

to implement the specific steps required

to successfully carry out your proposed

EDI/Section 108 program. This includes

factors such as your:

(a) Previous performance in the

administration of your CDBG, HOME or

other programs;

(b) Performance and capacity in

carrying out economic development

programs that involve third party

lending;

(c) Capacity to carry out your projects

and programs in a timely manner

(submission of a complete Section 108

application pursuant to Section

IV.(I)(1)(a) or (c) of this NOFA will be

deemed by HUD as one indicator of an

applicant’s ability to carry out the

proposed project in a timely manner);

and,

40846 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

(d) If you are so designated, your

capacity to manage projects under this

NOFA along with any federal funds

awarded as a result of a federal urban

Empowerment Zone/Enterprise

Community designation (including

Enhanced Enterprise Community (EEC)

designation).

(2) If you have previously received an

EDI or BEDI grant award(s), you must

describe the status of the

implementation of those project(s)

assisted with EDI or BEDI funds, any

delays that have been encountered and

the actions you are taking to overcome

any such delays to carry out the project

in a timely manner. For such previously

funded EDI or BEDI grant projects, HUD

will consider the extent to which you

have used the awarded EDI or BEDI

grant funds and the associated Section

108 guaranteed loan funds, and the

accomplishments achieved.

(3) The capacity of subrecipients,

nonprofit organizations and other

entities that have a role in implementing

your proposed business loan program

will be included in this review.

In addition to the application, HUD

also may rely on information from

performance reports, financial status

information, monitoring reports, audit

reports and other information available

to HUD in making its determination

under this factor.

Rating Factor 2: Distress/Extent of the

Problem (15 Points)

[Your response to this factor is limited

to three (3) pages.]

This factor addresses the extent to

which there is need for funding your

proposed business loan program based

on levels of distress, and an indication

of the urgency of meeting the need/

distress in your target area.

(1) In applying this factor, HUD will

consider current levels of distress in the

immediate community to be served by

your business loan program and the

jurisdiction applying for assistance. If

you are able to indicate a level of

distress in the immediate program area

that is greater than the level of distress

in your jurisdiction as a whole, HUD

will give your application a higher score

for this factor. HUD requires you to use

sound and reliable data that is verifiable

to support the level of distress you

claim in your application. You must

provide a source for all information you

cite and indicate the publication date or

origination date of the data.

(2) In previous EDI competitions, the

poverty rate was often considered the

best indicator of distress. Therefore, at

a minimum, your response must

provide the poverty rate for your

jurisdiction as a whole and for the areas

to be served and/or where the EDI/

Section 108 funded business loan

program is located; however, in

addition, you may demonstrate the level

of distress with other factors such as

income levels and unemployment rates.

(3) To the extent that your

Consolidated Plan and your Analysis of

Impediments to Fair Housing choice

(AI) identifies the level of distress in the

community and the neighborhood in

which your business loan program is

being carried out, you should include

references to such documents in

preparing your response to this factor.

Also, you should discuss the extent to

which the analysis of impediments

identifies unhealthy environmental

conditions in your program area, and

how such conditions negatively impact

your target neighborhood.

Rating Factor 3: Soundness of Approach

(30 Points)

[Your response to this factor is limited

to three (3) pages.]

This factor addresses the quality and

cost-effectiveness of your proposed

plan. There must be a relationship

between the proposed business loans,

community needs and purposes of the

program funding for you to receive

points for this factor. In rating this

factor, HUD will consider the following:

(1) The quality of your plan/proposal

for the use of EDI funds and Section 108

loan funds, including the extent to

which your proposed plan for effective

use of EDI grant/Section 108-guaranteed

loan funds will address the needs you

described in Rating Factor 2 above

regarding the distress and extent of the

problem in your immediate community

and/or jurisdiction. As part of the

response to this factor, you should fully

describe how your business loan

program will achieve a national

objective. Inasmuch as most programs

are expected to involve loans to be made

to businesses not yet identified, it may

not be possible to determine which of

the specific national objectives and

public benefit criteria would be met by

the individual business loans.

Consequently, it may be necessary to

condition the EDI grant award and the

Section 108 loan guarantee commitment

on a determination by the appropriate

HUD Field Office of compliance with

the national objectives and public

benefit requirements. Such condition

would be imposed with respect to each

business loan to be made with Section

108 guaranteed loan funds. You should

demonstrate how your proposed project

would mitigate or otherwise address the

distress identified in Rating Factor 2

above.

(2) The extent to which your plan is

feasible and likely to achieve its stated

purpose. HUD’s desire is to fund

business loan programs which will

quickly produce demonstrable results

and advance the purposes of the EDI

program, including the number of jobs

to be created by the program and the

impact of the program on job creation

that will benefit individuals on welfare

or low to very low income persons. You

should demonstrate your knowledge of

the steps required to implement your

business loan program and the actions

that you and others responsible for

implementing your project must

complete. You must include a time

schedule for carrying out your program.

(3) The extent to which your proposed

business loan program addresses your

Analysis of Impediments and the needs

identified in Rating Factor 2; the extent

to which such business loan program

will result in physical and economic

improvement for the residents in the

neighborhood in which your program

will be carried out; the extent to which

you will offer residents an opportunity

to relocate to environmentally healthy

housing or neighborhoods; or the extent

to which current residents will benefit

from the funded loans to enable them to

work and continue to live in a

redeveloped or revitalized

neighborhood and thus share in the

anticipated economic benefits your

program is expected to generate.

(4) The extent to which your business

loan program incorporates one or more

elements that facilitate a successful

transition of welfare recipients from

welfare to work. Such an element could

include, for example, linking your

proposed business loan program to

social and/or other services needed to

enable welfare recipients to successfully

secure and carry out full-time jobs in the

private sector; provision of job training

to welfare recipients who might be hired

by businesses financed through the

proposal; and/or incentives for

businesses financed with EDI/section

108 funds to hire and train welfare

recipients.

(5) Due to an order of the U.S. District

Court for the Northern District of Texas,

Dallas Division, with respect to any

application submitted by the City of

Dallas, Texas, HUD’s consideration of

the response to this factor, ‘‘Soundness

of Approach,’’ will include the extent to

which Dallas’ plan for the use of EDI

funds and Section 108 loans will be

used to eradicate the vestiges of racial

segregation in the Dallas Housing

Authority’s programs consistent with

the Court’s order. Up to two (2)

additional points will be awarded to any

application submitted by the City of

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40847

Dallas, Texas, to the extent this

subfactor is addressed.

Rating Factor 4: Leveraging Resources/

Financial Need (20 Points)

[Page limits for the response to this

factor are listed separately for each

subfactor under this factor.]

In evaluating this factor, HUD will

consider the extent to which your

response demonstrates the financial

need of your business loan program and

the leverage ratio of Section 108 loan

proceeds to EDI grant funds. This factor

has two subfactors, each with its own

maximum point total:

(1) Leverage of Section 108 funds (5

points).

[Your response to this subfactor is

limited to one (1) page.]

The minimum ratio of EDI grant funds

to Section 108 guaranteed loan funds in

any business loan program may not be

less than 1:7. The extent to which your

proposed program leverages an amount

of Section 108 funds beyond the 1:7

ratio will result in your receiving a

higher number of points. If you use your

EDI grant to leverage more new Section

108 commitments, your application will

receive more points under this

subfactor. However, for the reasons

discussed in Section IV(L)(1), the extent

to which Section 108 funds can be

leveraged is limited by practical

considerations of risk. Therefore, an

application will not receive more points

under this factor if the leverage ratio is

higher than $1 of EDI grant funds to $13

dollars of Section 108 loan guarantee

commitments.

(2) Leverage of other financial

resources (15 points). Your response to

this subfactor is limited to one (1) page

plus supporting documentation

evidencing third party commitment

(written and signed) of funds. HUD will

evaluate the extent to which you

leverage other funds (public or private)

with EDI grant funds and Section 108

guaranteed loan funds and the extent to

which such other funds are firmly

pledged to the business loan program.

This could include the use of CDBG

funds, other Federal or state grants or

loans, your general funds, project equity

or commercial financing provided by

private sources or funds from nonprofits or other sources. Funds will be

considered pledged to the project if

there is evidence of the third party’s

written commitment to make the funds

available for an EDI/108 project, subject

to approval of the EDI and Section 108

assistance and satisfactory completion

of any environmental review required

under 24 CFR part 58 for the project. For

purposes of this subfactor, funds

committed to the business loan program

for purposes other than the funding of

business loans and cash reserves may be

counted. For example, other funds

committed for training programs for

persons employed or to be employed by

businesses receiving loans under the

program may be counted for this

subfactor. Note, that with respect to

commitment of CDBG funds, your

proposed use of CDBG funds must be

included in your Consolidated Plan (or,

an application approved by the State),

subject to approval of the EDI and

Section 108 assistance.

Rating Factor 5: Comprehensiveness

and Coordination (10 Points)

[Your response to this factor is limited

to two (2) pages.]

This factor addresses the extent to

which you have coordinated your

activities with other known

organizations; you participate or

promote participation in your or a

State’s Consolidated Planning and

Analysis of Fair Housing Impediments

processes; and you are working towards

addressing a need in a comprehensive

manner through linkages with other

activities in the community.

In evaluating this factor, HUD will

consider the extent to which you

demonstrate you have:

(1) Coordinated your proposed

business loan program with those of

other groups or organizations before

submission, in order to best

complement, support and coordinate all

known activities; and developed

specific steps to share information on

solutions and outcomes with others.

Describe any written agreements or

memoranda of understanding in place,

or that will be in place after award.

(2) Developed linkages, or specific

steps to develop linkages with other

activities, programs or projects (through

meetings, information networks,

planning processes or other mechanisms

to coordinate activities), so that

solutions are holistic and

comprehensive. Describe any linkages

with other HUD-funded projects/

activities outside the scope of those

covered by the Consolidated Plan, as

well as established linkages and

outreach with residents of your business

loan program area. Particular emphasis

should be placed on outreach efforts

that ensure that, to the greatest extent

feasible, training, employment and other

economic opportunities have or will be

directed to low and very low income

residents within the area of the

community where the business loan

will be invested in order to meet the

national objective of increasing access to

jobs for residents of low-income

communities.

(F) Adjustments to Funding.

(1) HUD reserves the right to fund less

than the full amount requested in your

application to ensure the fair

distribution of the funds and to ensure

that the purposes of the EDI program are

met.

(2) HUD will not fund any portion of

your application that is not eligible for

funding under specific program

statutory or regulatory requirements;

which does not meet the requirements

of this NOFA or which may be

duplicative of other funded programs or

activities from previous years’ awards or

other selected applicants. Only the

eligible portions of your application

(including non-duplicative portions)

may be funded.

(3) If funds remain after funding the

highest ranking applications, HUD may

fund part of the next highest ranking

application. If you, the applicant, turn

down the award offer, HUD will make

the same determination for the next

highest ranking application. If funds

remain after all selections have been

made, remaining funds may be available

for other competitions.

(4) In the event HUD commits an error

that, when corrected, would result in

selection of an otherwise eligible

applicant during the funding round of

this NOFA, HUD may select that

applicant when sufficient funds become

available.

(5) After selection, but prior to award,

if HUD determines that your application

could be funded at a lesser EDI grant

amount than requested consistent with

feasibility of the funded business loan

program and the purposes of the Act,

HUD reserves the right to reduce the

amount of the EDI award and/or

increase the required Section 108 loan

guarantee commitment, if necessary.

VI. Application Submission

Requirements

If you are submitting an application

for funding under this NOFA you must

submit the items listed in this Section

VI to have a complete application.

(A) Transmittal Letter signed by the

authorized representative of your

organization indicating that you are

submitting your application for funding

under the Economic Development

Initiative Program and you are

requesting funding consideration for an

EDI project.

(B) Request for Loan Guarantee

Assistance. A request for loan guarantee

assistance under Section 108, as further

described in Section IV(I) of this NOFA.

Full application guidelines for the

Section 108 program are found at 24

CFR 570.704.

40848 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

(C) Narrative Response to Factors for

Award:

(1) Rating Factor 1: Capacity and

Relevant Organizational Experience.

Provide a narrative indicating your

capacity and the relevant capacity of

your organization and staff to perform

the work for which you are requesting

funding.

(2) Rating Factor 2: Need Statement

Identifying the level of Distress/Extent

of the Problem. Provide a narrative

statement including any documentation

supporting your statement of need.

(3) Rating Factor 3: Soundness of

Approach. Include your activities,

budget and time frame for conducting

activities in your response.

(4) Rating Factor 4: Leveraging

Resources/Financial Need. Provide a

narrative response to this factor.

(5) Rating Factor 5:

Comprehensiveness and Coordination.

Provide a narrative response to this

factor.

(D) Additional Application Forms and

Certifications. You must also submit the

following forms and certifications:

(1) Application for Federal Assistance

(Standard Form (SF) 424);

(2) Standard Form for Assurances—

Non-Construction Programs (SF 424B);

(3) Drug-Free Workplace Certification,

HUD–50070;

(4) Certification of Payments to

Influence Federal Transactions, HUD

50071, and if engaged in Lobbying, the

Disclosure Form Regarding Lobbying,

SF–LLL;

(5) Applicant/Recipient Disclosure/

Update Report, HUD–2880;

(6) Certification Regarding Debarment

and Suspension, HUD–2992; and

(7) If applicable, the Certification of

Consistency With EZ/EC Strategic Plan,

HUD–2990.

These forms are found in the

Appendix B to this NOFA. You are not

required to submit Budget Information

on Standard Form 424A.

If you wish to receive an

acknowledgment of HUD’s receipt of

your application, please submit a

completed Acknowledgment of Receipt

of Application form.

VII. Corrections to Deficient

Applications

After the application due date, HUD

may not, consistent with its regulations

in 24 CFR part 4, subpart B, consider

any unsolicited information you, the

applicant, may want to provide. HUD

may contact you, however, to clarify an

item in your application or to correct

technical deficiencies. You should note,

however, that HUD may not seek

clarification of items or responses that

improve the substantive quality of your

response to any selection factors. In

order not to unreasonably exclude

applications from being rated and

ranked, HUD may, however, contact

applicants to ensure proper completion

of the application and will do so on a

uniform basis for all applicants.

Examples of curable (correctable)

technical deficiencies include your

failure to submit the proper

certifications or your failure to submit

an application that contains an original

signature by an authorized official. In

each case, HUD will notify you in

writing by describing the clarification or

technical deficiency. HUD will notify

applicants by facsimile or by mail or

other delivery service with return

receipt requested. You must submit

clarifications or corrections of technical

deficiencies in accordance with the

information provided by HUD within 7

calendar days of the date of receipt of

the HUD notification. (If the due date

falls on a Saturday, Sunday, or Federal

holiday, your correction must be

received by HUD on the next day that

is not a Saturday, Sunday, or Federal

holiday.) If your deficiency is not

corrected within this time period, HUD

will reject your application as

incomplete, and it will not be

considered for funding.

VIII. Environmental Requirements

(A) Environmental Review. After the

completion of this competition and after

HUD’s award of EDI grant funds,

pursuant to 24 CFR 570.604, each

project or activity (as such terms are

defined in 24 CFR part 58) assisted

under this program is subject to the

provisions of 24 CFR part 58, including

limitations on the EDI grant and Section

108 public entity’s commitment of HUD

and non-HUD funds prior to the

completion of environmental review,

notification and release of funds. No

such assistance will be released by HUD

until a request for release of funds is

submitted and the requirements of 24

CFR part 58 have been met. All public

entities, including nonentitlement

public entities, shall submit the request

for release of funds and related

certification, required pursuant to 24

CFR part 58, to the appropriate HUD

field office for each project or activity

(as such terms are defined in 24 CFR

part 58) to be assisted.

(B) Environmental Justice. Executive

Order 12898 (Federal Actions to

Address Environmental Justice in

Minority Populations and Low-Income

Populations) directs Federal agencies to

develop strategies to address

environmental justice. Environmental

justice seeks to rectify the

disproportionately high burden of

environmental pollution that is often

borne by low-income, minority, and

other disadvantaged communities, and

to ensure community involvement in

policies and programs addressing this

issue.

IX. Findings and Certifications

(A) Environmental Impact. A Finding

of No Significant Impact with respect to

the environment has been made 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 during

regular business hours in the Office of

the General Counsel, Regulations

Division, Room 10276, U.S. Department

of Housing and Urban Development,

451 Seventh Street, SW, Washington,

DC 20410–0500.

(B) Executive Order 13132,

Federalism. Executive Order 13132

(entitled ‘‘Federalism’’) prohibits, to the

extent practicable and permitted by law,

an agency from promulgating policies

that have federalism implications and

either impose substantial direct

compliance costs on State and local

governments and are not required by

statute, or preempt State law, unless the

relevant requirements of section 6 of the

Executive Order are met. This NOFA

does not have federalism implications

and does not impose substantial direct

compliance costs on State and local

governments or preempt State law

within the meaning of the Executive

Order.

(C) Prohibition Against Lobbying

Activities. You, the applicant, are

subject to the provisions of section 319

of the Department of Interior and

Related Agencies Appropriation Act for

Fiscal Year 1991, 31 U.S.C. 1352 (the

Byrd Amendment), which prohibits

recipients of Federal contracts, grants,

or loans from using appropriated funds

for lobbying the executive or legislative

branches of the Federal Government in

connection with a specific contract,

grant, or loan. You are required to

certify, using the certification found at

Appendix A to 24 CFR part 87, that you

will not, and have not, used

appropriated funds for any prohibited

lobbying activities. In addition, you

must disclose, using Standard Form

LLL, ‘‘Disclosure of Lobbying

Activities,’’ any funds, other than

Federally appropriated funds, that will

be or have been used to influence

Federal employees, members of

Congress, and congressional staff

regarding specific grants or contracts.

(D) Section 102 of the HUD Reform

Act; Documentation and Public Access

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40849

Requirements. Section 102 of the

Department of Housing and Urban

Development Reform Act of 1989 (42

U.S.C. 3545) (HUD Reform Act) and the

regulations codified in 24 CFR part 4,

subpart A, contain a number of

provisions that are designed to ensure

greater accountability and integrity in

the provision of certain types of

assistance administered by HUD. On

January 14, 1992 (57 FR 1942), HUD

published a notice that also provides

information on the implementation of

section 102. The documentation, public

access, and disclosure requirements of

section 102 apply to assistance awarded

under this NOFA as follows:

(1) Documentation and public access

requirements. HUD will ensure that

documentation and other information

regarding each application submitted

pursuant to this NOFA are sufficient to

indicate the basis upon which

assistance was provided or denied. This

material, including any letters of

support, will be made available for

public inspection for a 5-year period

beginning not less than 30 days after the

award of the assistance. Material will be

made available in accordance with the

Freedom of Information Act (5 U.S.C.

552) and HUD’s implementing

regulations in 24 CFR part 15.

(2) Disclosures. HUD will make

available to the public for 5 years all

applicant disclosure reports (HUD Form

2880) submitted in connection with this

NOFA. Update reports (update

information also reported on Form

2880) will be made available along with

the applicant disclosure reports, but in

no case for a period less than 3 years.

All reports—both applicant disclosures

and updates—will be made available in

accordance with the Freedom of

Information Act (5 U.S.C. 552) and

HUD’s implementing regulations at 24

CFR part 5.

(3) Publication of Recipients of HUD

Funding. HUD’s regulations at 24 CFR

4.7 provide that HUD will publish a

notice in the Federal Register on at least

a quarterly basis to notify the public of

all decisions made by the Department to

provide:

(i) Assistance subject to section 102(a)

of the HUD Reform Act; or

(ii) Assistance that is provided

through grants or cooperative

agreements on a discretionary (nonformula, non-demand) basis, but that is

not provided on the basis of a

competition.

(E) Section 103 HUD Reform Act.

HUD’s regulations implementing section

103 of the Department of Housing and

Urban Development Reform Act of 1989

(42 U.S.C. 3537a), codified in 24 CFR

part 4, subpart B, apply to this funding

competition. The regulations continue

to apply until the announcement of the

selection of successful applicants. HUD

employees involved in the review of

applications and in the making of

funding decisions are limited by the

regulations from providing advance

information to any person (other than an

authorized employee of HUD)

concerning funding decisions, or from

otherwise giving any applicant an unfair

competitive advantage. Persons who

apply for assistance in this competition

should confine their inquiries to the

subject areas permitted under 24 CFR

part 4.

Applicants or employees who have

ethics related questions should contact

the HUD Ethics Law Division at (202)

708–3815. (This is not a toll-free

number.) For HUD employees who have

specific program questions, the

employee should contact the

appropriate field office counsel, or

Headquarters counsel for the program to

which the question pertains.

(F) Paperwork Reduction Act

Statement. The information collection

requirements for applying for funding

under the Economic Development

Initiative have been approved by OMB

under the Paperwork Reduction Act of

1995 (44 U.S.C. 3501–3520) and

assigned OMB control number 2506–

0153.

(G) Catalog of Federal Domestic

Assistance. The CFDA number for this

program is 14.246.

X. Authority

Section 108(q), Title I, Housing and

Community Development Act of 1974,

as amended, (42 U.S.C. 5301–5320); 24

CFR part 570.

Dated: June 26, 2000.

Cardell Cooper,

Assistant Secretary for Community Planning

and Development.

APPENDIX A.—LIST OF EZS, ECS, AND URBAN ENHANCED ENTERPRISE COMMUNITIES

Name & City Phone & fax numbers

URBAN EMPOWERMENT ZONES (23)

CA, Los Angeles (EZ)

David Eder, EZ Program Coordinator, City of Los Angeles EZ/EC Programs, Los Angeles Community Development Department, 215 West 6th Street, Third Floor, Los Angeles, CA 90014.213–485–0783 (Phone)

213–847–0890 (Fax)

CA, Santa Ana (EZ)

Aldo Schindler, EZ Manager, Community Development Agency M21, PO Box 1988, Santa Ana, CA 92702 ..... 714–647–6507 (Phone)

714–647–6580 (Fax)

CT, New Haven (EZ–EC)

Sherri Killins, President/CEO, Empower New Haven, Inc., 59 Elm St., 4th Floor, Suite 410, New Haven, CT

06510.

203–776–2777 (Phone)

203–776–0537 (Fax)

FL, Miami/Dade County (EZ–EC)

Bryan K. Finnie, President/CEO, Miami-Dade Empowerment Trust, Inc., 140 West Flagler Street, Suite 1107,

Miami, FL 33130.

305–372–7620 (Phone)

305–372–7629 (Fax)

GA, Atlanta (EZ)

Charisse Richardson, Interim Executive Director, Atlanta EZ Corporation, City Hall East, 675 Ponce de Leon

Avenue, Second Floor, Atlanta, GA 30308.

404–853–7610 (Phone)

404–853–7315 (Fax)

IL, Chicago (EZ)

Wallace Goode, Executive Director, City of Chicago 20 North Clark Street, 28th Floor, Chicago, IL 60602 ....... 312–744–9623 (Phone)

312–744–9696 (Fax)

IN, Gary, E. Chicago, Hammond (EZ)

IN, Gary

Taghi Arshami, Office of Planning & Community Development, 475 Broadway, Suite 318, Gary, IN 46402 ....... 219–881–5075 (Phone)

219–881–5085 (Fax)

IN, E. Chicago

John Artis, Executive Director, City of East Chicago, Dept. of Redevelopment and Housing Authority, 4920

Larkspur Drive, East Chicago, IN 46312.

219–397–9974 (Phone)

219–397–4249 (Fax)

40850 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

APPENDIX A.—LIST OF EZS, ECS, AND URBAN ENHANCED ENTERPRISE COMMUNITIES—Continued

Name & City Phone & fax numbers

IN, Hammond

MA, Boston (EZ–EEC)

Reginald Nunnally, Executive Director of Enhanced EC/Interim Director of EZ, Boston Empowerment Center,

20 Hampdon St., Roxbury, MA 02119.

617–445–3413 (Phone)

617–445–5675 (Fax)

MD, Baltimore (EZ)

Diane Bell, President & CEO, Empower Baltimore Management Corporation, 34 Market Pl., Suite 800, Baltimore, MD 21202.410–783–4400 (Phone)

410–783–0526 (Fax)

MI, Detroit (EZ)

Denise Gray, Executive Director, Empowerment Zone Development Corporation, 1 Ford Place, Suite 1F, Detroit, MI 48202.313–872–8050 ext. 17

(Phone)

313–872–8002 (Fax)

MN, Minneapolis (EZ–EC)

Kim W. Havey, Director, Minneapolis Empowerment Zone, 350 South Fifth Street, Room 200, Minneapolis,

MN 55415.

612–673–5415 (Phone)

612–673–3724 (Fax)

MO, St. Louis/E. St. Louis, IL (EZ–EC)

A. Danine Lard, Executive Director, The Greater St. Louis Regional Empowerment Zone, Management Corporation, Inc., Suite 1030, 1015 Locust St., St. Louis, MO 63101.314–622–3400 ext. 709

(Phone)

314–436–7983 (Fax)

NJ, Camden (EZ) See also Philadelphia, PA

Liz Janota, Acting Managing Director, Camden Empowerment Zone Corporation, Hudson Square Complex,

817 Carpenter St., Camden, NJ 08102.

856–365–0300 (Phone)

856–365–1058 (Fax)

NJ, Cumberland County (EZ)

Jerry Velazquez, Executive Director, Cumberland Empowerment Zone Corporation 50 E. Broad Street, Bridgeton, NJ 08302.856–459–1700 (Phone)

856–459–4099 (Fax)

NY, New York (EZ) (Main Contact)

Marion Phillips, III, Chief Administrative Officer, New York Empowerment Zone Corporation, 633 3rd Avenue,

New York, NY 10017.

212–803–3239 (Phone)

212–803–3294 (Fax)

James Ilako, Director, Empowerment Zone, Empire State Development Corporation, 633 Third Avenue, 32nd

Floor, New York, New York 10017.

212–803–3237 (Phone)

212–803–3294 (Fax)

June Van Brackle, Director, Mayor’s Office of the New York City EZ, 100 Gold Street, 2nd Floor, New York,

New York 10038.

212–788–6777 (Phone)

212–788–2718 (Fax)

NY, New York (Bronx)

Maria Canales, Director, Bronx Empowerment Zone, Bronx Overall Economic Development Corporation, 198

East 161st Street, Suite 201, Bronx, NY 10451.

718–590–6201 (Phone)

718–590–3499 (Fax)

NY, New York (Upper Manhattan)

Fernando Fernandez, Director of Community Affairs, Upper Manhattan Empowerment Zone, Development

Corporation 290 Lenox Avenue, 3rd Floor, New York, NY 10027.

212–410–0030 ext. 244

(Phone)

212–410–9616 (Fax)

OH, Cincinnati (EZ)

Susan Paddock, Special Assistant to the City Manager, City of Cincinnati, 801 Plum Street, Room 104, Cincinnati, OH 45202.513–352–4648 (Phone)

513–352–2458 (Fax)

OH, Cleveland (EZ)

Valarie McCall, Director, Cleveland Empowerment Zone, 601 Lakeside Avenue, City Hall, Room 335, Cleveland, OH 44114.216–664–2804 (Phone)

216–420–8522 (Fax)

216–664–3083 (Direct)

OH, Columbus (EZ–EC)

Jon Beard, Columbus Compact Corporation, 1000 East Main St., Columbus, OH 43205 .................................... 614–251–0926 (Phone)

614–251–2243 (Fax)

PA, Philadelphia/NJ, Camden (EZ) See also NJ, Camden

Eva Gladstein, Executive Director, City of Philadelphia, 1515 Arch Street, l Parkway, 9th Fl., Philadelphia, PA

19103.

215–683–0462 (Phone)

215–683–0493 (Fax)

SC, Sumter/Columbia (EZ)

Milton Smalls, Executive Director, Sumter/Columbia EZ, Dept. of Community Service, 1225 Laurel Street, Columbia, SC 29201.803–733–8314 (Phone)

803–733–8312 (Fax)

Talmadge Tobias,.

City Manager, City of Sumter, P.O. Box 1449, Sumter, SC 29151 ........................................................................ 803–436–2577 (Phone)

803–436–2615 (Fax)

TN, Knoxville (EZ)

Jeanette Kelleher, Community Development Administrator, City of Knoxville, Department of Development, P.O.

Box 1631, Knoxville, TN 37901.

865–215–2116 (Phone)

865–215–2962 (Fax)

Sherry Kelley Marshall, Executive Director, Partnership for Neighborhood Improvement, P.O. Box 2464, Knoxville, TN 37901.865–215–4146 (Phone)

865–215–2962 (Fax)

TX, El Paso (EZ–EC)

Carlos Yerena, Executive Director, El Paso Empowerment Zone, Greater El Paso Chamber of Commerce 10

Civic Center Plaza, El Paso, TX 79901.

915–534–0571 (Phone)

915–534–0513 (Fax)

VA, Norfolk/Portsmouth (EZ–EC)

Landis Faulcon, Empowerment 2010, 201 Granby Street, Suite 100A, Norfolk, VA 23510 .................................. 757–624–8650 (Phone)

757–622–4623 (Fax)

WV, Huntington/Ironton, OH (EZ–EC)

Cathy Burns, Executive Director, Huntington WV-Ironton OH Empowerment Zone, Inc., P.O. Box 1659, Huntington, WV 25717.304–696–5533 (Phone)

304–696–4465 (Fax)

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40851

APPENDIX A.—LIST OF EZS, ECS, AND URBAN ENHANCED ENTERPRISE COMMUNITIES—Continued

Name & City Phone & fax numbers

URBAN ENHANCED ENTERPRISE COMMUNITIES (4)

CA, Oakland (EEC)

Mahlon Harmon, EEC Coordinator, One Stop Capital Shop, 519 17th St., Sixth Floor, Oakland, CA 94612 ...... 510–238–2353 (Phone)

510–238–7999 (Fax)

KS, Kansas City and MO, Kansas City (EEC)

Marlene Nagel, MARC, 600 Broadway 300 Rivergate Center, Kansas City, MO 64105 ...................................... 816–474–4240 (Phone)

816–421–7758 (Fax)

MA, BOSTON (EEC) (SEE EZ)

TX, Houston (EEC)

Judith Butler, Mayor’s Office, 901 Bagby Street, City Hall, 4th Floor, Houston, TX 77002 ................................... 713–247–2666 (Phone)

713–247–3985 (Fax)

URBAN ENTERPRISE COMMUNITIES

AL, Birmingham

Keith Strother, City of Birmingham, 710 N. 20th Street, City Hall, 3rd Floor, Birmingham, AL 35203 .................. 205–254–2870 (Phone)

205–254–7741 (Fax)

AR, Pulaski County

Henry McHenry, Pulaski County Enterprise Community Alliance, Inc., 400 W. Markham, Suite 705, Little Rock,

AR 72201–2424.

501–340–5675 (Phone)

501–340–5680 (Fax)

AZ, Phoenix

Jennifer Harper, Neighborhood Services Department, City of Phoenix 200 West Washington Street, 4th Floor,

Phoenix, AZ 85003–1611.

602–262–4730 (Phone)

602–534–1555 (Fax)

CA, Los Angeles—Huntington Park

Robert Perez, Manager, Operations Section, Industrial & Commercial, Development Division, Los Angeles

Community Development Department, 215 W. 6th St., Third Floor, Los Angeles, CA 90014.

213–485–8161 (Phone)

213–847–0890 (Fax)

CA, San Diego

Bonnie Contreras, Enterprise Community Coordinator, City of San Diego, 202 C Street, Third Floor, Mail Station 3A, San Diego, CA 92101.619–236–6846 (Phone)

619–236–6512 (Fax)

CA, San Francisco

Anna Yee, City of San Francisco, San Francisco Enterprise Community Program, 25 Van Ness Avenue, Suite

700, San Francisco, CA 94102.

415–252–3130 (Phone)

415–252–3110 (Fax)

CO, Denver

Ernest Hughes, Denver Enterprise Community Coordinator, Denver Community Development Agency, 216

16th Street, Suite 1400, Denver, CO 80202.

720–913–1547 (Phone)

720–913–1800 (Fax)

CT, Bridgeport

Janice Willis, Director, City of Bridgeport Central Grants Office, 999 Broad St., Bridgeport, CT 06604 ............... 203–332–5662 (Phone)

203–332–5657 (Fax)

CT, New Haven

Diana E. Edmonds, New Haven Enterprise Community Interim Coordinator, 200 Orange Street ........................ 203–946–7727 (Phone)

203–946–8049 (Fax)

DE, Wilmington

Edwina Bell-Mitchell, Wilmington Enterprise Community, Louis L. Redding City/County Building, 800 French

Street, 9th Floor, Wilmington, DE 19801.

302–571–4472 (Phone)

302–571–4326 (Fax)

District of Columbia

Kimmarie Jamison, DCECP Coordinator, 801 N. Capitol St., 6th Floor, Washington, DC 20002 ......................... 202–442–7203 (Phone)

202–442–7089 (Fax)

FL, Tampa

Jeanette LaRussa Fenton, Manager, Urban Development, Ybor Service Center 2105 N. Nebraska Avenue,

Tampa, FL 33602–2529,.

email: hs5j@ci.tampa.fl.us .......................................................................................................................................

813–274–7959 (Phone)

813–274–7927 (Fax)

GA, Albany

Julie Duke, city Manager’s Office, P.O. Box 447, Albany, GA 31702 .................................................................... 912–431–3234 (Phone)

912–431–3223 (Fax)

IA, Des Moines

Carol Gathright, City of Des Moines, 602 East First Street, Des Moines, IA 50309 ............................................. 515–283–4151 (Phone)

515–237–1713 (Fax)

IL, East St. Louis

Diane Bonner, Executive Director, CDBG Operations Corporation, 301 River Park Drive, East St. Louis, IL

62201.

618–482–6635 ext. 15

(Phone)

618–271–8194 (Fax)

IL, Springfield

Cletia Bowen, Director, Office of Economic Development, 231 South Sixth St., Springfield, IL 62701 ................ 217–789–2377 (Phone)

217–789–2380 (Fax)

IN, Indianapolis

Renia Colbert, Project Liaison, Div. of Comm. Development & Financial Services, 200 East Washington, Suite

1841, Indianapolis, IN 46204.

317–327–5869 (Phone)

317–327–5908 (Fax)

KY, Louisville

Carolyn Gatz, Louisville Empowerment Zone, NIA Center, 2900 West Broadway, Louisville, KY 40211 ............. 502–458–6813 (Phone)

502–456–9780 (Fax)

LA, New Orleans

40852 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

APPENDIX A.—LIST OF EZS, ECS, AND URBAN ENHANCED ENTERPRISE COMMUNITIES—Continued

Name & City Phone & fax numbers

Thelma H. French, Executive Assistant to Mayor, Office of Federal and State Programs, 1300 Perdido Street,

Room 2E04, New Orleans, LA 70112.

504–565–6445 (Phone)

504–565–6423 (Fax)

LA, Ouachita Parish

Eric Loewe, Executive Director, Ouachita Enterprise Community, P.O. Box 4268, Monroe, LA 71211 ............... 318–329–4031 (Phone)

318–329–4034 (Fax)

MA, Lowell

Shirley Alejandro, Enterprise Community Organizer, Department of Planning and Development, City Hall—JFK

Civic Center, 50 Arcand Drive, Lowell, MA 01852.

978–446–7160 (Phone)

978–970–4262 (Fax)

MA, Springfield

Miguel Rivas, Director of Neighborhood Programs, Community Development Department, 36 Court Street,

Springfield, MA 01103.

413–750–2240 (Phone)

413–787–6027 (Fax)

MI, Flint

Nancy Jurkiewicz, Corporate Resident Agent, Flint Area Enterprise Community, 805 Welch Blvd., Flint, Michigan 48504.810–766–7436 ext. 3014

(Phone)

810–766–7351 (Fax)

MI, Muskegon/Muskegon Heights (EC)

Cathy Brubaker-Clarke, Director, Department of Community and Economic Development, P.O. Box 536, 933

Terrace St., Muskegon, MI 49443–0536.

231–724–6702 (Phone)

231–724–6790 (Fax)

MN, St. Paul

Jeremy Lenz, Project Manager, City of Saint Paul, Department of Planning and Economic Development, 1200

City Hall Annex, 25 West Fourth Street, Saint Paul, MN 55102.

651–266–6603 (Phone)

651–228–3341 (Fax)

MS, Jackson

Roosevelt T. Sanders, Executive Director, Jackson Urban Enterprise Community Council, Inc., P.O. Box

10353, Jackson, MS 39289.

601–949–7879 (Phone)

601–981–2407 (Fax)

NC, Charlotte

Deborah Hazzard, Neighborhood Development Department, 600 East Trade Street, Charlotte, NC 28202 ........ 704–336–2106 (Phone)

704–336–2527 (Fax)

NE, Omaha

Herb Patten, Enterprise Zone Coordinator, Omaha Enterprise Community/Enterprise Zone, Blue LionCentre,

2421 North 24th St., Omaha, NE 68110–2282.

402–444–3514 (Phone)

402–444–3755 (Fax)

NH, Manchester

William J. Jabjiniak, Planning Department, Enterprise Community Program, One City Hall Plaza, Manchester,

NH 03101.

603–624–6450 ext. 5713

(Phone)

603–624–6529 (Fax)

NJ, Newark

Angela Corbo, EC Coordinator, Department of Administration, City Hall, Room B–16, 920 Broad Street, Newark, NJ 07102.973–733–4331 (Phone)

973–733–3769 (Fax)

NM, Albuquerque

Sylvia Fettes, Department of Family & Community Services, P.O. Box 1293, Albuquerque, NM 87103 ............. 505–768–2932 (Phone)

505–768–3204 (Fax)

NV, Las Vegas

Jennifer Padre, EC Coordinator, Community Resources Management, 500 South Grand Central Parkway,

P.O. Box 551212, Las Vegas, NV 89155–1212.

702–455–5025 (Phone)

702–455–5038 (Fax)

NY, Albany/Troy/Schenectady

Anthony Tozzi, Enterprise Community Director, City of Schenectady, Department of Development, Jay Street,

Schenectady, NY 12305.

518–382–5054 (Phone)

518–382–5275 (Fax)

NY, Buffalo

Paula Alcala Rosner, Executive Director, Federal Enterprise Community of Buffalo, Inc., 911 City Hall, Buffalo,

NY 14202.

716–851–5032 (Phone)

716–851–4388 (Fax)

NY, Newburgh/Kingston

Sharon Hyder, The Kingston-Newburgh Enterprise Corp., 62 Grand Street, Newburgh, NY 12550 .................... 914–569–1680 ext. 102

(Phone)

914–569–1630 (Fax)

NY, Rochester

Philip J. Banks, Manager of Business Development, Department of Economic Development, City of Rochester,

Room 005A, 30 Church Street, Rochester, NY 14614.

716–428–6965 (Phone)

716–428–6042 (Fax)

OH, Akron

Jerry Egan, Department of Planning & Urban Development, 166 South High Street, Akron, OH 44308–1628 ... 330–375–2090 (Phone)

330–375–2387 (Fax)

OK, Oklahoma City

Carl Friend, Oklahoma City Planning Department, 420 West Main Street, Suite 920, Oklahoma City, OK

73102.

405–297–2574 (Phone)

405–297–3796 (Fax)

OR, Portland

Regena S. Warren, Multnomah County, 421 SW Sixth Avenue, Suite 200, Portland, OR 97204 ........................ 503–248–3691 ext. 28134

(Phone)

503–248–3379 (Fax)

PA, Harrisburg

Terri Martini, Director, Department of Building and Housing Development, City of Harrisburg, Suite 206, 10

North Second Street, Harrisburg, PA 17101.

717–255–6408 (Phone)

717–255–6421 (Fax)

PA, Pittsburgh

Joan Blaustein, Manager, Special Projects, City Planning Dept., City of Pittsburgh, 200 Ross Street, 4th Floor,

Pittsburgh, PA 15219.

412–255–2206 (Phone)

412–255–2838 (Fax)

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40853

APPENDIX A.—LIST OF EZS, ECS, AND URBAN ENHANCED ENTERPRISE COMMUNITIES—Continued

Name & City Phone & fax numbers

RI, Providence

Kim Rose, Enterprise Community Project Director, The Providence Plan, 56 Pine Street, Suite 3B, Providence,

RI 02903.

401–455–8880 (Phone)

401–331–6840 (Fax)

SC, Charleston/N. Charleston

Geona Shaw Johnson, Coordinator, Enterprise Community Program, Department of Housing and Community

Development, City of Charleston 75 Calhoun Street, 3rd Floor, Charleston, SC 29401.

843–973–7285 (Phone)

843–720–3836 (Fax)

TN, Memphis

Joseph C. Gibbs, Economic Development Coordinator, City of Memphis, Business Development Center

(BDC), 555 Beale Street, Memphis, TN 38103–3297.

901–526–9300 ext.105

(Phone)

901–525–2357 (Fax)

TN, Nashville

Paul Johnson, Metropolitan Development and Housing Agency, 701 South Sixth Street, Nashville, TN 37206 .. 615–252–8543 (Phone)

615–252–8559 (Fax)

TX, Dallas

Mark Obeso, Assistant Director, Housing Department, City of Dallas, 1500 Marilla, 6D North, Dallas, TX 75201 214–670–3601 (Phone)

214–670–0156 (Fax)

TX, San Antonio

Curley Spears, San Antonio EZ/EC Coordinator, 419 South Main St., Suite 200, San Antonio, TX 78204 ......... 210–207–6605 (Phone)

210–886–0006 (Fax)

TX, Waco

George Johnson, Jr., Assistant City Manager, City of Waco, 300 Austin Avenue, Waco, TX 76701–2570 ......... 254–750–5640 (Phone)

254–750–5696 (Direct),

254–750–5880 (Fax)

UT, Ogden

Karen Thurber, Ogden City Neighborhood Development, 2484 Washington Boulevard, Suite 211, Ogden, UT

84401.

801–629–8943 (Phone)

801–629–8902 (Fax)

VT, Burlington

Maria Vaivao, EC Coordinator, Office of Community & Economic Development, City Hall, Room 32, Burlington, VT 05401.802–865–7182 (Phone)

802–865–7024 (Fax)

WA, Seattle

Ben Wolters, Senior Community Development Specialist, City of Seattle, Office of Economic Development,

Seattle Municipal Building, Room 205, Seattle, WA 98104–1826.

206–684–8591 (Phone)

206–684–0379 (Fax)

WA, Tacoma

Cynthia Spry, Tacoma Pierce Co Chamber of Commerce, 950 Pacific Avenue, Suite 300, P.O. Box 1933, Tacoma, WA 98401–1933.253–627–2175 (Phone)

253–597–7305 (Fax)

WI, Milwaukee

Glen Mattison, Enterprise Community Program Officer, City of Milwaukee, Community Block Grant Administration, 200 East Wells Street, City Hall, Room 606, Milwaukee, WI 53202.414–286–3760 (Phone)

414–286–5003 (Fax)

BILLING CODE 4210–29–P

40854 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

Appendix B

The forms, which follow, are required for EDI Grant—CEF Pilot application.

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40855

40856 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40857

40858 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40859

40860 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40861

40862 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40863

40864 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Notices 40865

[FR Doc. 00–16544 Filed 6–27–00; 11:16 am]

BILLING CODE 4210–29–C