[Federal Register Volume 72, Number 146 (Tuesday, July 31, 2007)]
[Notices]
[Pages 41822-41858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-3713]



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Part II





Department of Housing and Urban Development





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

Federal Register / Vol. 72, No. 146 / Tuesday, July 31, 2007 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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


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

AGENCY: Office of the Secretary, HUD.

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

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

FOR FURTHER INFORMATION CONTACT: Questions regarding specific program 
requirements should be directed to the agency contact identified in 
this program NOFA. Questions regarding the General Section of January 
18, 2007 or the Introduction of March 13, 2007, should be directed to 
the Office of Departmental Grants Management and Oversight at (202) 
708-0667 (this is not a toll-free number) or the NOFA Information 
Center at (800) HUD-8929 (toll-free). Persons with hearing or speech 
impairments may access these numbers via TTY by calling the Federal 
Information Relay Service at (800) 877-8339. The NOFA Information 
Center is open between the hours of 10 a.m. and 6:30 p.m. eastern time, 
Monday through Friday, except federal holidays.

SUPPLEMENTARY INFORMATION: Through today's publication, HUD is making 
available approximately $94.52 million in assistance through the FY2007 
HOPE VI Revitalization Grants program. Today's publication is in 
addition to the $2 billion previously made available through the FY2007 
SuperNOFA.
    As is HUD's practice in publishing the SuperNOFA, the NOFA 
published today provides the statutory and regulatory requirements, 
threshold requirements, and rating factors applicable to funding being 
made available today (through the HOPE VI Revitalization NOFA). 
Applicants for the HOPE VI NOFA must also refer to the January 18, 
2007, General Section of the FY2007 SuperNOFA; the March 13, 2007, 
SuperNOFA; and the May 11, 2007, Supplementary Information and 
Technical Corrections for important application information and 
requirements, including submission requirements, which have changed 
this year.
    In FY2007, HUD intends to continue to require its applicants to 
submit their applications electronically through http://www.grants.gov. 
If applicants have questions concerning the registration process, 
registration renewal, assigning a new Authorized Organization 
Representative, or have a question about a NOFA requirement, please 
contact HUD staff identified in this program NOFA. HUD staff cannot 
help you write your application, but can clarify requirements that are 
contained in the General Section to the SuperNOFA, this Notice, and in 
HUD's registration materials.
    New applicants should note that they are required to complete a 
five-step registration process in order to submit their applications 
electronically. The General Section to the SuperNOFA included in the 
instructions download materials on Grants.gov provides a step-by-step 
explanation of the registration process, as well as where to find, on 
HUD's Web site, materials prepared by HUD to help guide applicants 
through the registration and application submission process.
    Applications and Instructions are posted to Grants.gov as soon as 
HUD finalizes them. HUD encourages applicants to subscribe to the 
Grants.gov free notification service. By doing so, applicants will 
receive an e-mail notification as soon as items are posted to the Web 
site. The address to subscribe to this service is http://www.grants.gov/search/email.do. By joining the notification service, if 
a modification is made to the NOFA, applicants will receive an e-mail 
notification that a change has been made.
    HUD encourages applicants to carefully read the General Section and 
program sections of the NOFA. Carefully following the directions 
provided can make the difference in a successful application 
submission.

    Dated: July 25, 2007.
Orlando J. Cabrera,
Assistant Secretary for Public and Indian Housing.

Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. Revitalization of Severely Distressed 
Public Housing HOPE VI Revitalization Grants Fiscal Year 2007.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is FR-5140-N-01. The OMB approval number for this program is: 
2577-0208.
    E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for this NOFA is 14-866, ``Demolition and Revitalization of 
Severely Distressed Public Housing (HOPE VI).''
    F. Dates.
    Application Deadline Date: The application deadline date is 
November 7, 2007. Electronic applications must be received and 
validated by Grants.gov by 11:59:59 p.m. eastern time on the deadline 
date. See HUD's General Section to the SuperNOFA (FR-5100-N-01), 
published in the Federal Register on January 18, 2007, and Supplemental 
Information and Technical Corrections published on May 11, 2007, for 
application submission, faxing instructions, and timely receipt 
requirements. HUD will not accept an entire application submitted by 
fax.
    G. Additional Overview Content Information.
    1. Available Funds. This NOFA announces the availability of 
approximately $94.52 million in FY 2007 funds for HOPE VI 
Revitalization Program grants.
    2. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of Fiscal Year (FY) 2007 
HOPE VI Funds, the FY 2008 budget proposes the rescission of the FY 
2007 HOPE VI Appropriation. Please note, therefore, that if Congress 
adopts this portion of the President's budget, this NOFA may be 
cancelled at a later date and awards made under this NOFA may not 
ultimately be funded.
    3. The maximum amount of each grant award is $20 million. It is 
anticipated that four or five grant awards will be made.
    4. All non-troubled public housing authorities (PHAs) with severely 
distressed public housing are eligible to apply, subject to the 
requirements under

[[Page 41823]]

Section III of this NOFA. PHAs that manage only a Housing Choice 
Voucher (HCV) program, tribal PHAs, and tribally designated housing 
entities are not eligible.
    5. A match of at least 5 percent is required.
    6. Application materials may be obtained from http://www.grants.gov/applicants/apply_for_grants.jsp. Any technical 
corrections will be published in the Federal Register and posted to 
Grants.gov. Frequently asked questions will be posted on HUD's Web site 
at http://www.hud.gov/offices/adm/grants/otherhud.cfm and http://www.hud.gov/offices/pih/programs/ph/hope6/.
    7. General Section Reference. Section I, ``Funding Opportunity 
Description,'' of the General Section to the SuperNOFA for HUD's 
Discretionary Programs (General Section), Docket No. FR-5100-N-01, 
published in the Federal Register on January 18, 2007, the Introduction 
to the SuperNOFA published in the Federal Register on March 13, 2007, 
and the Supplementary Information and Technical Corrections published 
in the Federal Register on May 11, 2007, are hereby incorporated by 
reference.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    In accordance with Section 24(a) of the United States Housing Act 
of 1937 (42 U.S.C. 1437v) (1937 Act), the purpose of HOPE VI 
Revitalization grants is to assist PHAs to:
    1. Improve the living environment for public housing residents of 
severely distressed public housing projects through the demolition, 
rehabilitation, reconfiguration, or replacement of obsolete public 
housing projects (or portions thereof);
    2. Revitalize sites (including remaining public housing dwelling 
units) on which such public housing projects are located and contribute 
to the improvement of the surrounding neighborhood;
    3. Provide housing that will avoid or decrease the concentration of 
very low-income families; and
    4. Build sustainable communities.

B. Authority

    1. The funding authority for HOPE VI Revitalization grants under 
this HOPE VI NOFA is provided by the Revised Continuing Appropriations 
Resolution, 2007 (Pub. L. 110-5, approved February 15, 2007) under the 
heading ``Revitalization of Severely Distressed Public Housing (HOPE 
VI).''
    2. The program authority for the HOPE VI program is Section 24 of 
the 1937 Act, as amended by section 21045 of the Revised Continuing 
Appropriations Resolution, 2007 (Pub. L. 110-5, approved February 15, 
2007).

C. Definitions

    1. Public Housing Project. A public housing project is a group of 
assisted housing units that has a single Project Number assigned by the 
Director of Public Housing of a HUD Field Office and has, or had (in 
the case of previously demolished units) housing units under an Annual 
Contributions Contract.
    2. Replacement Housing. Under this HOPE VI NOFA, a HOPE VI 
replacement housing unit shall be deemed to be any combination of 
public housing rental units, eligible homeownership units under Section 
24(d)(1)(J) of the 1937 Act, and HCV assistance that does not exceed 
the number of units demolished and disposed of at the targeted severely 
distressed public housing project.
    3. Severely Distressed.
    a. In accordance with Section 24(j)(2) of the 1937 Act, the term 
``severely distressed public housing'' means a public housing project 
(or building in a project) that:
    (1) Requires major redesign, reconstruction, or redevelopment, or 
partial or total demolition, to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plan of the project;
    (2) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (3)(a) Is occupied predominantly by families who are very low-
income families with children, have unemployed members, and are 
dependent on various forms of public assistance;
    (b) Has high rates of vandalism and criminal activity (including 
drug-related criminal activity) in comparison to other housing in the 
area; or (c) is lacking in sufficient appropriate transportation, 
supportive services, economic opportunity, schools, civic and religious 
institutions, and public services, resulting in severe social distress 
in the project;
    (4) Cannot be revitalized through assistance under other programs, 
such as the Capital Fund and Operating Fund programs for public housing 
under the 1937 Act, or the programs under sections 9 or 14 of the 1937 
Act (as in effect before the effective date under section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998)), because of cost constraints and inadequacy 
of available amounts; and
    (5) In the case of an individual building that currently forms a 
portion of the public housing project targeted by the application to 
this NOFA:
    (a) Is sufficiently separable from the remainder of the project of 
which the building is part, such that the revitalization of the 
building is feasible; or
    (b) Was part of the targeted public housing project that has been 
legally vacated or demolished, but for which HUD has not yet provided 
replacement housing assistance (other than tenant-based assistance). 
``Replacement housing assistance'' is defined as funds that have been 
furnished by HUD to perform major rehabilitation on, or reconstruction 
of, the public housing units that have been legally vacated or 
demolished.
    b. A severely distressed project that has been legally vacated or 
demolished (but for which HUD has not yet provided replacement housing 
assistance, other than tenant-based assistance) must have met the 
definition of physical distress not later than the day the demolition 
application approval letter was dated by HUD.
    4. Targeted Project. The targeted project is the current public 
housing project that will be revitalized with funding from this NOFA. 
The targeted project may include more than one public housing project 
or be a part of a public housing project. See Section III.C.2 of this 
NOFA for eligibility of multiple public housing projects and 
separability of a part of a public housing project.
    5. Temporary Relocation. There are no provisions for ``temporary 
relocation'' under the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA). See Handbook 1378, Chapter 2, 
Section 207 for temporary relocation protections provided under the URA 
regulations and HUD policy. The Handbook can be obtained through 
HUDClips at http://www.hudclips.org/.
    6. Universal Design. Universal design is the design of products and 
environments to be usable by all people, to the greatest extent 
possible, without the need for adaptation or specialized design. The 
intent of universal design is to simplify life for everyone by making 
products, communications, and the built environment more usable by as

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many people as possible at little or no extra cost. A universal design 
benefits people of all ages and abilities. Examples include designing 
wider doorways, installing levers instead of doorknobs, and putting 
bathtub/shower grab bars in all units. Computers and telephones can 
also be set up in ways that enable as many residents as possible to use 
them. The Department has a publication that contains a number of ideas 
about how the principles of Universal Design can benefit persons with 
disabilities. To order a copy of Strategies for Providing Accessibility 
and Visitability for HOPE VI and Mixed Finance Homeownership, go to the 
publications and resource page of the HOPE VI Web site at http://www.huduser.org/publications/pubasst/strategies.html.

II. Award Information

A. Availability of HOPE VI Funds

    1. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of FY 2007 HOPE VI Funds, 
the FY 2008 budget proposes the rescission of the FY 2007 HOPE VI 
Appropriation. Please note, therefore, that if Congress adopts this 
portion of the President's budget, this NOFA may be cancelled at a 
later date and awards made under this NOFA may not ultimately be 
funded.
    2. Revitalization Grants. Approximately $94.52 million of the FY 
2007 HOPE VI appropriation has been allocated to fund HOPE VI 
Revitalization grants and will be awarded in accordance with this NOFA. 
There will be approximately four or five awards.
    3. Requested Amount. The maximum amount you may request in your 
application for grant award is limited to $20 million or the sum of the 
amounts in Section IV.E.3., whichever is lower. HCV assistance is in 
addition to this amount.
    4. Housing Choice Voucher (HCV) Assistance. Housing choice voucher 
(HCV) assistance is available from the tenant protection voucher fund 
to successful applicants that receive the Revitalization grant awards. 
The dollar amount of HCV assistance is in addition to the $20 million 
maximum award amount and will be based upon resident relocation needs. 
Applicants must prepare their HCV assistance applications for the 
targeted project in accordance with the requirements of Notice PIH 
2007-10 (and any reinstatement of or successor to that Notice) and 
submit it in its entirety with the HOPE VI Revitalization Application. 
HUD will process the HCV assistance applications for funded HOPE VI 
applicants. If you are not funded by this NOFA, the HCV application 
will not be processed. For applicants who are granted a waiver to the 
electronic application process, the HCV request should be located with 
the Standard Forms and Certifications at the back of the application. 
The notice can be found on the Internet at http://www.hudclips.org/cgi/index.cgi.
    5. Grant term. The period for completion of construction shall not 
exceed 54 months from the date the NOFA award is executed by HUD, as 
described in the grant agreement. See Section IV.E.1. for statutory 
time limits related to the grant and expenditure of funds.

III. Eligibility Information

A. Eligible Applicants

    1. Only PHAs that have severely distressed housing in their 
inventory and that are otherwise in conformance with the threshold 
requirements provided in Section III.C. of this NOFA are eligible to 
apply.
    2. HCV Programs Only, Tribal Housing Agencies, and Others. PHAs 
that administer only HCV/Section 8 programs, tribal housing agencies 
and tribally designated housing entities, are not eligible to apply. 
Nonprofit organizations, for-profit organizations, and private citizens 
and entrepreneurs are not eligible to apply.
    3. Troubled Status. If HUD has designated your PHA as troubled 
pursuant to section 6(j)(2) of the 1937 Act, HUD will use documents and 
information available to it to determine whether you qualify as an 
eligible applicant. In accordance with section 24(j) of the 1937 Act, 
the term ``applicant'' means:
    a. Any PHA that is not designated as ``troubled'' pursuant to 
section 6(j)(2) of the 1937 Act;
    b. Any PHA for which a private housing management agent has been 
selected, or a receiver has been appointed, pursuant to section 6(j)(3) 
of the 1937 Act; and
    c. Any PHA that is designated as ``troubled'' pursuant to section 
6(j)(2) of the 1937 Act and that:
    (1) Is designated as troubled principally for reasons that will not 
affect its capacity to carry out a revitalization program;
    (2) Is making substantial progress toward eliminating the 
deficiencies of the agency that resulted in its troubled status;
    (3) Has not been found to be in noncompliance with fair housing or 
other civil rights requirements; or
    (4) Is otherwise determined by HUD to be capable of carrying out a 
revitalization program.

B. Cost Sharing or Matching

1. Match Requirements
    a. Revitalization Grant Match. HUD is required by the 1937 Act (42 
U.S.C. 1437v(c)(1)(A)) to include the requirement for matching funds 
for all HOPE VI-related grants. You are required to have in place a 
match in the amount of 5 percent of the requested grant amount in cash 
or in-kind donations. Applications that do not demonstrate the minimum 
5 percent match will not be considered for funding.
    b. Additional Community and Supportive Services (CSS) Match.
    (1) In accordance with the 1937 Act (42 U.S.C. 1437v(c)(1)(B)), in 
addition to the 5 percent Revitalization grant match in section a 
above, you may be required to have in place a CSS match. Funds used for 
the Revitalization grant match cannot be used for the CSS match.
    (2) If you are selected for funding through this NOFA, you may use 
up to 15 percent of your grant for CSS activities. However, if you 
propose to use more than 5 percent of your HOPE VI grant for CSS 
activities, you must have in place funds (cash or in-kind donations) 
from sources other than HOPE VI that match the amount between 5 and 15 
percent of the grant that you will use for CSS activities. These 
resources do not need to be new commitments in order to be counted for 
match.
    c. No HOPE VI Funding in Match. In accordance with section 24(c) of 
the Act, for purposes of calculating the amount of matching funds 
required by Sections a and b above, you may NOT include amounts from 
HOPE VI program funding, including HOPE VI Revitalization, HOPE VI 
Demolition, HOPE VI Neighborhood Networks or HOPE VI Main Street 
grants. You may include funding from other public housing sources 
(e.g., Capital Funds, Resident Opportunities and Self-Sufficiency 
(ROSS) funds), other federal sources, any state or local government 
source, and any private contributions. You may also include the value 
of donated material or buildings, the value of any lease on a building, 
the value of the time and services contributed by volunteers, and the 
value of any other in-kind services or administrative costs provided.
    d. For match documentation requirements, see section III.C.3.pp, 
Program Requirements that Apply to Match and Leverage.

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C. Other

    1. Eligible Revitalization Activities. HOPE VI Revitalization 
grants may be used for activities to carry out revitalization programs 
for severely distressed public housing in accordance with Section 24(d) 
of the 1937 Act. Revitalization activities approved by HUD must be 
conducted in accordance with the requirements of this NOFA. The 
following is a list of eligible activities.
    a. Relocation. Relocation, including reasonable moving expenses, 
for residents displaced as a result of the revitalization of the 
project. See sections III.C.3. and V.A. of this NOFA for relocation 
requirements.
    b. Demolition. Demolition of dwelling units or non-dwelling 
facilities, in whole or in part, although demolition is not a required 
element of a HOPE VI revitalization plan.
    c. Disposition. Disposition of a severely distressed public housing 
site, by sale or lease, in whole or in part, in accordance with section 
18 of the 1937 Act and implementing regulations at 24 CFR part 970. A 
lease of one year or longer that is not incident to the normal 
operation of a project is considered a disposition that is subject to 
section 18 of the 1937 Act.
    d. Rehabilitation and Physical Improvement. Rehabilitation and 
physical improvement of:
    (1) Public housing; and
    (2) Community facilities, provided that the community facilities 
are primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing, in accordance with 24 CFR 
968.112(b), (d), (e), and (g)-(o), and 24 CFR 968.130 and 968.135(b) 
and (d) or successor regulations, as applicable.
    e. Development. Development of:
    (1) Public housing replacement units; and
    (2) Other units (e.g., market-rate units), provided a need exists 
for such units and such development is performed with non-public 
housing funds.
    f. Homeownership Activities. Assistance involving the 
rehabilitation and development of homeownership units. Assistance may 
include:
    (1) Down payment or closing cost assistance;
    (2) Hard or soft second mortgages; or
    (3) Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
    g. Acquisition. Acquisition of:
    (1) Rental units and homeownership units;
    (2) Land for the development of off-site replacement units and 
community facilities (provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing);
    (3) Land for economic development-related activities, provided that 
such acquisition is performed with non-public housing funds.
    h. Management Improvements. Necessary management improvements, 
including transitional security activities.
    i. Administration, Planning, Etc. Administration, planning, 
technical assistance, and other activities (including architectural and 
engineering work, program management, and reasonable legal fees) that 
are related to the implementation of the revitalization plan, as 
approved by HUD. See Cost Control Standards in Section III.C.3.v. of 
this NOFA.
    j. Community and Supportive Services (CSS).
    (1) The CSS component of the HOPE VI program encompasses all 
activities that are designed to promote upward mobility, self-
sufficiency, and improved quality of life for the residents of the 
public housing project involved.
    (2) CSS activities. CSS activities may include, but are not limited 
to:
    (a) Educational activities that promote learning and serve as the 
foundation for young people from infancy through high school 
graduation, helping them to succeed in academia and the professional 
world. Such activities, which include after-school programs, mentoring, 
and tutoring, must be created with strong partnerships with public and 
private educational institutions.
    (b) Adult educational activities, including remedial education, 
literacy training, tutoring for completion of secondary or 
postsecondary education, assistance in the attainment of certificates 
of high school equivalency, and English as a Second Language courses, 
as needed.
    (c) Readiness and retention activities, which frequently are key to 
securing private sector commitments to provide jobs.
    (d) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
    (e) Programs that provide entry-level, registered apprenticeships 
in construction, construction-related, maintenance, or other related 
activities. A registered apprenticeship program is one that has been 
registered with either a State Apprenticeship Agency recognized by the 
Department of Labor's (DOL) Office of Apprenticeship Training, Employer 
and Labor Services (OATELS) or, if there is no recognized state agency, 
by OATELS. See also DOL regulations at 29 CFR part 29.
    (f) Training on topics such as parenting skills, consumer 
education, family budgeting, and credit management.
    (g) Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed. The Family Self-Sufficiency program can also be used to 
promote homeownership, providing assistance with escrow accounts and 
counseling.
    (h) Coordinating with health care providers or providing on-site 
space for health clinics, doctors, wellness centers, dentists, etc., 
that will primarily serve the public housing residents. HOPE VI funds 
may not be used to provide direct medical care to residents.
    (i) Substance and alcohol abuse treatment and counseling.
    (j) Activities that address domestic violence treatment and 
prevention.
    (k) Child care services that provide sufficient hours of operation 
to facilitate parental access to education and job opportunities, serve 
appropriate age groups, and stimulate children to learn.
    (l) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and to commute to their places 
of employment.
    (m) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    k. Leveraging. Leveraging other resources, including additional 
housing resources, supportive services, job creation, and other 
economic development uses on or near the project that will benefit 
future residents of the site.
    2. Threshold Requirements. Applications must meet all threshold 
requirements in order to be rated and ranked. If an application does 
not meet all threshold requirements, HUD will not consider the 
application as eligible for funding and will not rate and rank it. HUD 
will screen for technical deficiencies and administer a cure period. 
The subsection entitled, ``Corrections to Deficient Applications,'' in 
section V.B. of the General Section is incorporated by reference and 
applies to this NOFA. The thresholds listed below can be cured for 
technical deficiencies,

[[Page 41826]]

except for those indicated as non-curable. If an applicant does not 
cure all its technical deficiencies that relate to threshold 
requirements within the cure period, HUD will consider the threshold(s) 
in question to be failed, will not consider the application as eligible 
for funding, and will not rate and rank it. Applicants MUST review and 
follow documentation requirements provided in this Thresholds 
Requirements Section and the Program Requirements of Section III.C.3. A 
false statement (or certification) in an application is grounds for 
denial or termination of an award and grounds for possible prosecution 
as provided in 18 U.S.C. 1001, 1010, and 1012, and 32 U.S.C. 3729 and 
3802. Required forms, certifications and assurances must be included in 
the HOPE VI application and will be available on the Internet at http://www.grants.gov/applicants/apply_for_grants.jsp.
    a. Curable Thresholds. The following thresholds may be cured in 
accordance with the criteria above. Examples of curable (correctable) 
technical deficiencies include, but are not limited to, inconsistencies 
in the funding request, failure to submit the proper certifications 
(e.g., form HUD-2880), and failure to submit a signature and/or date of 
signature on a certification.
    (1) Severe Distress of Targeted Project. The targeted public 
housing project must be severely distressed. See section I.C. of this 
NOFA for the definition of ``severely distressed.'' If the targeted 
project is not severely distressed, your application will not be 
considered for funding. Applicants must use the severe distress 
certification form provided with this NOFA and place it in their 
attachments. The certification must be signed by an engineer or 
architect licensed by a state licensing board. The license does not 
need to have been issued in the same state as the severely distressed 
project. The engineer or architect must include his or her license 
number and state of registration on the certification. The engineer or 
architect may not be an employee of the housing authority or the city. 
See Section IV.B.3.c. of the General Section for information on 
submitting third party documents.
    (2) Site Control. If you propose to develop off-site housing in ANY 
phase of your proposed revitalization plan, you MUST provide evidence 
in your application that you (not your developer) have site control of 
EVERY property. If you propose to develop off-site housing and you do 
not provide acceptable evidence of site control, your ENTIRE 
application will be disqualified from further consideration for 
funding.
    (a) Site control documentation may only be contingent upon:
    (i) The receipt of the HOPE VI grant;
    (ii) Satisfactory compliance with the environmental review 
requirements of this NOFA;
    (iii) The site and neighborhood standards in section III.C.3. of 
this NOFA; and
    (iv) Standard underwriting procedures.
    (b) If you demonstrate site control through an option to purchase, 
the option must extend for at least 180 days after the application 
deadline date.
    (c) Evidence may include an option to purchase the property, a 
sales agreement, a land swap, or a deed. Evidence may NOT include a 
letter from the mayor or other official, letters of support from 
members of the relevant municipal entities, or a resolution evidencing 
the PHA's intent to exercise its power of eminent domain.
    (d) If one or more of your off-site parcels is a public housing 
property, you still must provide evidence of site control for those 
properties.
    (e) You must include documented evidence of site control in your 
attachments.
    (f) You must include a cover sheet with your documented evidence of 
site control in the Attachments section. This cover sheet must provide 
a table that matches the off-site parcels proposed in your application 
for housing development to the corresponding documented evidence of 
site control for those parcels. Specifically, this table should provide 
in one column the name of each parcel, as identified in your 
application. A second column should contain the name of the documented 
evidence corresponding to each parcel. A third column should provide 
the location of the documented evidence in the attachment (page number, 
etc.) and any other necessary detail about the evidence. If more than 
one unit will be built on a parcel, this must be identified as well in 
the table. The purpose of this table is to aid reviewers' ability to 
determine whether your application complies with this threshold. 
Accordingly, applicants should provide site control information as 
clearly and consistently as possible.
    (3) Land Use. Your application must include a certification from 
the appropriate local official (not the Executive Director) documenting 
that all required land use approvals for developed and undeveloped land 
have been secured for any off-site housing and other proposed uses, or 
that the request for such approval(s) is on the agenda for the next 
meeting of the appropriate authority in charge of land use. In the case 
of the latter, the certification must include the date of the meeting. 
You must include this certification in your attachments.
    (4) Selection of Developer. You must assure that:
    (a) You have initiated a request for quotation (RFQ) by the 
application deadline date for the competitive procurement of a 
developer for your first phase of construction, in accordance with 24 
CFR 85.36 and 24 CFR 941.602(d) (as applicable). If you change 
developers after you are selected for funding, HUD reserves the right 
to rescind the grant; or
    (b) You will act as your own developer for the proposed project. If 
you change your plan and procure an outside developer after you are 
selected for funding, HUD reserves the right to rescind the grant.
    (c) You must demonstrate compliance with this threshold through 
completion and inclusion of the Assurances for HOPE VI Application 
document.
    (5) Relocation Plan Assurance.
    (a) If you have not yet relocated residents, you must assure that:
    (i) A HOPE VI Relocation Plan was completed as of the application 
deadline date. To learn more about HOPE VI Relocation Plans, applicants 
may review Handbook 1378 and Notice CPD 02-08, ``Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI 
Projects'' and Notice 04-02, ``Revision to Notice CPD 02-08, Guidance 
on the Application of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI 
Projects;''
    (ii) That it conforms to the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) requirements; and
    (iii) That it implements HOPE VI relocation goals, as described in 
section V.A.6. of this NOFA. This means your plan must describe how the 
HOPE VI Relocation Plan incorporates the HOPE VI relocation goals 
contained in section V.A.6.
    (b) If relocation was completed (i.e., the targeted public housing 
site is vacant) as of the application deadline date, rather than 
certifying that the HOPE VI Relocation Plan has been completed, you 
must assure that the relocation was completed in accordance with URA 
and/or section 18 requirements (depending on which of these 
requirements applied to the demolition in question).
    (c) You must demonstrate compliance with this threshold through 
completion

[[Page 41827]]

and inclusion of the Assurances for HOPE VI Application document.
    (6) Resident Involvement in the Revitalization Program Assurance. 
You must assure that you have involved affected public housing 
residents at the beginning and during the planning process for the 
revitalization program, prior to submission of your application. If you 
have not included affected residents in the planning process, your 
application will not be considered for funding. You MUST follow the 
resident involvement requirements listed in the Program Requirements 
section, section III.C.3. of this NOFA. You must demonstrate compliance 
with this threshold through completion and inclusion of the Assurances 
for HOPE VI Application document.
    (7) Standard Forms and Certifications. The last part of your 
application will be comprised of standard certifications common to many 
HUD programs. For the HOPE VI application, the required standard forms 
and certifications are located in Section IV.B. of this NOFA.
    (8) HOPE VI Revitalization Applicant Certifications. You must 
include in your application a certification from the Chairman of your 
Board of Commissioners to the requirements listed in the HOPE VI 
Revitalization Applicant Certifications. You must include this 
certification in your attachments.
    (9) Capital Fund Financing Program (CFFP). This threshold applies 
to any PHA with an approved CFFP proposal or CFFP proposal submitted 
and under review by HUD before the announcement of FY 2007 HOPE VI 
Revitalization grant awards. As the pledges of Capital Funds are 
general in nature and not project-specific, this threshold applies to 
all CFFP proposals approved or submitted and under review by HUD for 
the PHA's public housing portfolio, not just the public housing site 
targeted by this HOPE VI application. HOPE VI Revitalization 
applications may not be from PHAs that have CFFPs approved or in 
process, unless:
    (a) The PHA includes in the application an opinion from its legal 
counsel that the activities proposed under the HOPE VI Revitalization 
application are permitted under the financing documents, or to the 
extent required, any approvals required under the financing documents 
have been obtained; and
    (b) The PHA certifies that, to the extent HUD determines that the 
Capital Fund projections in its CFFP Proposal did not accurately or 
completely incorporate the reduction in public housing units that would 
be caused by the HOPE VI activity, if it receives the HOPE VI 
Revitalization grant, and prior to undertaking the HOPE VI activity, it 
will use Capital Funds, or other eligible funds to defease, redeem, or 
otherwise prepay the CFFP financing. This prepayment must be sufficient 
to maintain the same debt coverage ratio in the year immediately 
following any reduction in annual contribution contract (ACC) Units 
related to the HOPE VI grant (based on the then-current year's capital 
fund allocation, but giving effect to the change in ACC Units in a 
manner acceptable to HUD) as existed prior to any reductions occurring 
as a result of the HOPE VI Revitalization grant. This certification may 
be provided in the form of a letter from the Executive Director.
    (c) HUD will consult internal CFFP records to verify which 
applicants have pending or approved CFFP proposals.
    b. Non-Curable Thresholds. The following thresholds may NOT be 
cured in accordance with the criteria referenced in III.C.2. above.
    (1) Number of Applications. Each applicant may submit a maximum of 
two HOPE VI Revitalization applications, in accordance with the 
criteria of this NOFA. If an applicant submits two applications, each 
application must target a different severely distressed public housing 
project, in accordance with the Contiguous, Single, and Scattered-Site 
Projects threshold requirement below. If HUD receives multiple 
applications electronically, HUD will rate and rank the last 
application for each severely distressed public housing development 
received and validated by Grants.gov by the application deadline. All 
other applications will not be considered eligible. In submitting 
multiple applications, applicants should provide the project name so 
that HUD's system can distinguish one application from another 
submitted by the same organization. If applicants find after submitting 
an application that they want to amend or adjust their application and 
it is prior to the deadline date, applicants should be aware that they 
must resubmit the entire application, including all fax transmissions 
previously sent, to ensure that HUD gets a complete application. HUD 
also recommends that fax transmissions associated to resubmitted 
applications be sent following validation by Grants.gov using the fax 
transmittal cover sheet (form HUD-96011) associated to the application. 
Submitting the fax transmittal after validation will ensure that your 
faxes will be associated to the most recent application and not a 
previously submitted application. HUD's system matches faxes as they 
come into the system and if a previous application exists prior to the 
new application arriving, the fax will be associated to the application 
already in HUD's system. HUD cannot re-associate faxes once they have 
been attached to an application.
    (a) HUD will not consider applications sent entirely by facsimile 
(See the General Section).
    (b) HUD will not accept for review or evaluation any videos 
submitted as part of the application or appendices.
    (c) HUD will not consider any application that does not meet the 
timely submission requirements for electronic submission, in accordance 
with the criteria of the General Section.
    (2) Appropriateness of Proposal. In accordance with section 
24(e)(1) of the 1937 Act, each application must demonstrate the 
appropriateness of the proposal (revitalization plan) in the context of 
the local housing market relative to other alternatives. You must 
discuss other possible alternatives in the local housing market and 
explain why the housing envisioned in the application is more 
appropriate. This is a statutory requirement and an application 
threshold. If you do not demonstrate the appropriateness of the 
proposal (revitalization plan) in the context of the local housing 
market relative to other alternatives, your application will not be 
considered for funding. Applicants must demonstrate compliance with 
this threshold in their narrative. Examples of alternative proposals 
may include:
    (a) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (b) Proposing a range of incomes, housing types (rental, 
homeownership, market-rate, public housing, townhouse, detached house, 
etc.), or costs that cannot be supported by a market analysis; or
    (c) Proposing to use the land in a manner that is contrary to the 
goals of your PHA.
    (3) Contiguous, Single, and Scattered-Site Projects. Except as 
provided in sections (a) and (b) below, each application must target 
one severely distressed public housing project. The public housing 
project(s) may already be vacated and/or demolished but may not be 
disposed of, as of the application deadline date. You must provide a 
city map at a scale sufficient to illustrate the current targeted 
site(s), whether contiguous, single, or scattered-site projects.

[[Page 41828]]

    (a) Contiguous Projects. Each application may request funds for 
more than one project if those projects are immediately (i) adjacent to 
one another or (ii) within a quarter-mile of each other. If you include 
more than one project in your application, you must provide a map that 
clearly indicates that the projects are either adjacent or within a 
quarter-mile of each other. If HUD determines that they are not, your 
application will not be considered for funding.
    (b) Scattered Site Projects. Your application may request funds to 
revitalize a scattered site public housing project. The sites targeted 
in an application proposing to revitalize scattered sites (regardless 
of whether the scattered sites are under multiple project numbers) must 
fall within an area with a one-mile radius. You may identify a larger 
site if you can show that all of the targeted scattered site units are 
located within the hard edges (e.g., major highways, railroad tracks, 
lakeshore, etc.) of a neighborhood. If you propose to revitalize a 
project that extends beyond a one-mile radius or is otherwise beyond 
the hard edges of a neighborhood, your application will not be 
considered for funding. If you propose to revitalize a scattered site 
public housing project, you must provide a map that clearly indicates 
that the projects fall within an area with a one-mile radius or, if 
larger, are located within the hard edges (e.g., major highways, 
railroad tracks, lakeshore, etc.) of a neighborhood.
    (4) Sites Previously Funded.
    (a) You may submit a Revitalization application that targets part 
of a project that is being, or has been, revitalized or replaced under 
a HOPE VI Revitalization grant awarded in previous years. You may not 
apply for new HOPE VI Revitalization funds for units in that project 
that were funded by the existing HOPE VI Revitalization grant, even if 
those funds are inadequate to pay the costs to revitalize or replace 
all of the targeted units. For example, if a project has 700 units and 
you were awarded a HOPE VI Revitalization grant or other HUD public 
housing funds to address 300 of those units, you may submit an FY 2007 
HOPE VI Revitalization application to revitalize the remaining 400 
units. You may not apply for funds to supplement work on the original 
300 units. If you request funds to revitalize/replace the units not 
funded by the previous HOPE VI Revitalization grant, you must provide a 
listing of which units were funded by the previous grant and which 
units are being proposed for funding under the current grant 
application. You must demonstrate compliance with this threshold in 
your narrative (including as listed above, as relevant). If you request 
funds to revitalize units or buildings that have been funded by an 
existing HOPE VI Revitalization grant, your application will not be 
considered for funding.
    (b) You may not request HOPE VI Revitalization grant funds for 
units currently under construction, in accordance with the section 
IV(E), Funding Restrictions. You must demonstrate compliance with this 
threshold in your narrative.
    (5) Separability. In accordance with section 24(j)(2)(A)(v) of the 
1937 Act, if you propose to target only a portion of a project for 
revitalization, in your narrative you must: (1) Demonstrate to HUD's 
satisfaction that the severely distressed public housing is 
sufficiently separable from the remainder of the project, of which the 
building is a part, to make use of the building feasible for 
revitalization. Separations may include a road, berm, catch basin, or 
other recognized neighborhood distinction; and (2) Demonstrate that the 
site plan and building designs of the revitalized portion will provide 
defensible space for the occupants of the revitalized building(s) and 
that the properties that remain will not have a negative influence on 
the revitalized buildings(s), either physically or socially. You must 
demonstrate compliance with this threshold in your narrative. If you do 
not propose to target only a portion of a project for revitalization, 
you may indicate, ``n/a,'' for not applicable, in your narrative.
    (6) Desegregation Orders. You must be in full compliance with any 
desegregation or other court order, and with any voluntary compliance 
agreements related to Fair Housing (e.g., Title VI of the Civil Rights 
Act of 1964, the Fair Housing Act, and section 504 of the 
Rehabilitation Act of 1973) that affects your public housing program 
and that is in effect on the date of application submission. If you are 
not in full compliance, your application will be ineligible for 
funding. HUD will evaluate your compliance with this threshold.
    (7) Dun and Bradstreet Data Universal Numbering System (DUNS) 
Number Requirement. This threshold is hereby incorporated from the 
General Section (Section III.C.2.b.). All applicants seeking funding 
directly from HUD must obtain a DUNS number and include the number in 
its Application for Federal Assistance submission. Failure to provide a 
DUNS number will prevent you from obtaining an award, regardless of 
whether it is a new award or renewal of an existing award. Applicants 
should read the complete instructions in the General Section for 
completing the Grants.gov registration process. See the General Section 
for additional information regarding this requirement.
    (8) Compliance with Fair Housing and Civil Rights Laws. This 
threshold is hereby incorporated from the General Section (Section 
III.C.2.c.).
    (9) Delinquent Federal Debts. This threshold is hereby incorporated 
from the General Section (Section III.C.2.e). Applicants that at the 
time of award have federal debt or are in default of an agreement with 
the Internal Revenue Service (IRS) will not be funded. Applicants 
selected for funding have an obligation to report to HUD changes in 
status of a current IRS agreement covering federal debt.
    (10) Debarment and Suspension. This threshold is hereby 
incorporated from the General Section (Section III.C.2.j).
    (11) Default. Existing HOPE VI Revitalization Grantees that are in 
default of the HOPE VI Revitalization grant agreement as of the 
application deadline date are not eligible for funding under this NOFA. 
A grantee is in default if it has received a letter from HUD indicating 
its default status and has not resolved the issues to HUD's 
satisfaction.
    3. Program Requirements.
    a. Demolition.
    (1) You may not carry out nor permit others to carry out the 
demolition of the targeted project or any portion of the project until 
HUD approves, in writing, one of the following ((a)-(c)), and until HUD 
has also: (i) Approved a Request for Release of Funds submitted in 
accordance with 24 CFR part 58, or (ii) if HUD performs an 
environmental review under 24 CFR part 50, has approved the property 
for demolition, in writing, following its environmental review:
    (a) Information regarding demolition in your HOPE VI Revitalization 
Application, along with Supplemental Submissions requested by HUD after 
the award of the grant. Section 24(g) of the 1937 Act provides that 
severely distressed public housing that is demolished pursuant to a 
revitalization plan is not required to be approved through a demolition 
application under section 18 of the 1937 Act or regulations at 24 CFR 
part 970. If you do not receive a HOPE VI Revitalization grant, the 
information in your application will not be used to process a request 
for demolition;
    (b) A demolition application under section 18 of the 1937 Act. 
While a section 18 approval is not required for

[[Page 41829]]

HOPE VI related demolition, you will not have to wait for demolition 
approval through your supplemental submissions, as described in section 
(a) above; or
    (c) A section 202 Mandatory Conversion Plan, in compliance with 
regulations at 24 CFR part 971 and other applicable HUD requirements, 
if the project is subject to Mandatory Conversion (section 202 of the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. 
L. 104-134, approved April 26, 1996). A Mandatory Conversion Plan 
concerns the removal of a public housing project from a PHA's 
inventory.
    b. Development.
    (1) For any standard (non-mixed finance) public housing development 
activity (whether on-site reconstruction or off-site development), you 
must obtain HUD approval of a standard development proposal submitted 
under 24 CFR part 941 (or successor part).
    (2) For mixed-finance housing development, you must obtain HUD 
approval of a mixed finance proposal, submitted under 24 CFR part 941, 
subpart F (or successor part and subpart).
    (3) For new construction of community facilities primarily intended 
to facilitate the delivery of community and supportive services for 
residents of the project and residents of off-site replacement housing, 
you must comply with 24 CFR part 941 (or successor part). Information 
required for this activity must be included in either a standard or 
mixed finance development proposal, as applicable.
    c. Disposition.
    (1) Disposition of a severely distressed public housing site, by 
sale or lease, in whole or in part, may be done in accordance with 
section 18 of the 1937 Act and implementing regulations at 24 CFR part 
970.
    (2) The Grantee will comply with the provisions of section 18 of 
the 1937 Act, 24 CFR part 970, as may be modified or amended from time 
to time, and the provisions of its approved disposition application 
(the approved ``Disposition Application''), unless otherwise modified 
in writing by HUD. The Grantee will also comply with procedures for 
processing dispositions associated with mixed-finance projects as set 
forth by HUD.
    (3) A lease of one year or more that is not incident to the normal 
operation of a development is considered to be a disposition that is 
subject to section 18 of the 1937 Act.
    d. Homeownership.
    (1) For homeownership replacement units developed under a 
revitalization plan, you must obtain HUD approval of a homeownership 
proposal. Your homeownership proposal must conform to either:
    (a) Section 24(d)(1)(J) of the 1937 Act; or
    (b) Section 32 of the 1937 Act (see 24 CFR part 906). Additional 
information on this option may be found at http://www.hud.gov/offices/pih/centers/sac/homeownership.
    (2) The homeownership proposal must be consistent with the Section 
8 Area Median Income (AMI) limitations (80 percent of AMI) and any 
other applicable provisions under the 1937 Act. (HUD publishes AMI 
tables for each family size in each locality annually. The income limit 
tables can be found at http://www.huduser.org/datasets/il/il06/index.html.)
    e. Acquisition.
    (1) Acquisition Proposal. Before you undertake any acquisition 
activities with HOPE VI or other public housing funds, you must obtain 
HUD approval of an acquisition proposal that meets the requirements of 
24 CFR 941.303.
    (2) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must obtain HUD approval of a Development Proposal in accordance 
with 24 CFR 941.304 (conventional development) or 24 CFR 941.606 
(mixed-finance development).
    (3) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (4) Land for Economic Development-Related Activities.
    (a) Acquisition of land for this purpose is eligible only if the 
economic development-related activities specifically promote the 
economic self-sufficiency of residents.
    (b) Limited infrastructure and site improvements associated with 
developing retail, commercial, or office facilities, such as rough 
grading and bringing utilities to (but not on) the site, are eligible 
activities with prior HUD approval.
    f. Access to Services. For both on-site and any off-site units, 
your overall Revitalization plan must result in increased access to 
municipal services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well-integrated and strong linkages must be 
established with the appropriate federal, state, and local agencies, 
nonprofit organizations, and the private sector to achieve such access.
    g. Building Standards.
    (1) Building Codes. All activities that include construction, 
rehabilitation, lead-based paint removal, and related activities must 
meet or exceed local building codes. You are encouraged to visit HUD's 
Web site on Accessibility Analysis of Model Building Codes at http://www.hud.gov/offices/fheo/disabilities/modelcodes/. You are encouraged 
to read the ``Final Report of HUD Review of the Fair Housing 
Accessibility Requirements in the 2003 International Building Code,'' 
which can be accessed from the webpage above, along with other valuable 
information on model codes and fair housing accessibility guidelines.
    (2) Deconstruction. HUD encourages you to design programs that 
incorporate sustainable construction and demolition practices, such as 
the dismantling or ``deconstruction'' of public housing units, 
recycling of demolition debris, and reusing of salvage materials in new 
construction. ``A Guide to Deconstruction: An Overview of Destruction 
with a Focus on Community Development Opportunities'' can be found at 
http://www.huduser.org/publications/destech/decon.html.
    (3) Partnership for Advancing Technology in Housing (PATH). HUD 
encourages you to use PATH technologies in the construction and 
delivery of replacement housing. PATH is a voluntary initiative that 
seeks to accelerate the creation and widespread use of advanced 
technologies to radically improve the quality, durability, 
environmental performance, energy efficiency, and affordability of our 
nation's housing.
    (a) PATH's goal is to achieve dramatic improvement in the quality 
of U.S. housing by the year 2010. PATH encourages leaders from the home 
building, product manufacturing, insurance, and financial industries, 
and representatives from federal agencies dealing with housing issues 
to work together to spur housing design and construction innovations. 
PATH will provide technical support in design and cost analysis of 
advanced technologies to be incorporated in project construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.

[[Page 41830]]

    (c) More information, the list of technologies, the latest PATH 
Newsletter, results from field demonstrations, and PATH projects can be 
found at www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction must comply with the latest HUD-adopted Model 
Energy Code (International Energy Conservation Code (IECC) 2003 or 
successor codes) issued by the Council of American Building Officials.
    (b) HUD encourages you to set higher standards, where cost 
effective, for energy and water efficiency in HOPE VI new construction, 
which can achieve utility savings of 30 to 50 percent with minimal 
extra cost.
    (c) You are encouraged to negotiate with your local utility company 
to obtain a lower rate. Utility rates and tax laws vary widely 
throughout the country. In some areas, PHAs are exempt or partially 
exempt from utility rate taxes. Some PHAs have paid unnecessarily high 
utility rates because they were billed at an incorrect rate 
classification.
    (d) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (e) You must use new technologies that will conserve energy and 
decrease operating costs, where cost effective. Examples of such 
technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (5) Universal Design. HUD encourages you to incorporate the 
principles of universal design in the construction or rehabilitation of 
housing, retail establishments, and community facilities, or when 
communicating with community residents at public meetings or events.
    (6) Energy Star. HUD has adopted a wide-ranging energy action plan 
for improving energy efficiency in all program areas. As a first step 
in implementing the energy plan, HUD, the Environmental Protection 
Agency, and the Department of Energy have signed a joint partnership to 
promote energy efficiency in HUD's affordable housing efforts and 
programs. The purposes of the Energy Star partnership are to promote 
energy efficiency in affordable housing stock and to help protect the 
environment. Applicants constructing, rehabilitating, or maintaining 
housing or community facilities are encouraged to promote and adopt 
energy efficiency in design and operations. They are urged especially 
to purchase and use Energy Star-labeled products. Applicants providing 
housing assistance or counseling services are encouraged to promote and 
adopt Energy Star building by homebuyers and renters. Program 
activities can include developing Energy Star promotional and 
information materials, outreach to low- and moderate-income renters and 
buyers on the benefits and savings when using Energy Star products and 
appliances, and promoting the designation of community buildings and 
homes as Energy Star-compliant. For further information about Energy 
Star, see http://www.energystar.gov or call 888-STAR-YES (888-782-
7937), or, for the hearing-impaired, call 888-588-9920 TTY. See also 
the energy efficiency requirements in section III.C.3. above. See 
section V.A.9.g. of this NOFA for the Energy Star sub-rating factor.
    (7) Lead-Based Paint. You must comply with lead-based paint 
evaluation and reduction requirements as provided for under the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.). You 
also must comply with regulations at 24 CFR part 35, 24 CFR 965.701, 
and 24 CFR 968.110(k), as they may be amended or revised from time to 
time. Unless otherwise provided, you will be responsible for lead-based 
paint evaluation and reduction activities. The National Lead 
Information Hotline is (800) 424-5323.
    h. Labor Standards. The following standards must be implemented as 
appropriate in regard to HOPE VI grants:
    (1) Labor Standards.
    (a) Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation, of a public housing project must 
be paid, as set forth in a wage determination that the PHA must obtain 
prior to bidding on each construction contract. The wage determination 
and provisions requiring payment of these wage rates must be included 
in the construction contract;
    (b) HUD-determined wage rates apply to:
    (i) Operation (including nonroutine maintenance) of revitalized 
housing, and
    (ii) Demolition followed only by filling in the site and 
establishing a lawn.
    (2) Exclusions. Under section 12(b) of the 1937 Act, wage rate 
requirements do not apply to individuals who:
    (a) Perform services for which they volunteered;
    (b) Do not receive compensation for those services or are paid 
expenses, reasonable benefits, or a nominal fee for the services; and
    (c) Are not otherwise employed in the work involved (24 CFR part 
70).
    (3) If other federal programs are used in connection with your HOPE 
VI activities, labor standards requirements apply to the extent 
required by the other federal programs on portions of the project that 
are not subject to Davis-Bacon rates under the 1937 Act.
    i. Operation and Management Principles and Policies, and Management 
Agreement. HOPE VI Revitalization grantees will be required to develop 
Management Agreements that describe their operation and management 
principles and policies for their public housing units. You and your 
procured property manager, if applicable, must comply (to the extent 
required) with the provisions of 24 CFR part 966 in planning for the 
implementation of the operation and management principles and policies 
described below.
    (a) Rewarding work and promoting family stability by promoting 
positive incentives such as income disregards and ceiling rents;
    (b) Instituting a system of local preferences adopted in response 
to local housing needs and priorities, e. g., preferences for victims 
of domestic violence, residency preferences, working families, and 
disaster victims. Note that local preferences for public housing must 
comply with Fair Housing requirements at 24 CFR 960.206;
    (c) Encouraging self-sufficiency by including lease requirements 
that promote involvement in the resident association, performance of 
community service, participation in self-sufficiency activities, and 
transitioning from public housing;
    (d) Implementing site-based waiting lists that follow project-based 
management principles for the redeveloped public housing. Note that 
site-based waiting lists for public housing must comply with Fair 
Housing requirements at 24 CFR 903.7(b)(2);
    (e) Instituting strict applicant screening requirements such as 
credit checks, references, home visits, and criminal records checks;
    (f) Strictly enforcing lease and eviction provisions;

[[Page 41831]]

    (g) Improving the safety and security of residents through the 
implementation of defensible space principles and the installation of 
physical security systems such as surveillance equipment, control 
engineering systems, etc.;
    (h) Enhancing ongoing efforts to eliminate drugs and crime from 
neighborhoods through collaborative efforts with federal, state, and 
local crime prevention programs and entities.
    j. Non-Fungibility for Moving To Work (MTW) PHAs. Funds awarded 
under this NOFA are not fungible under MTW agreements and must be 
accounted for separately, in accordance with the HOPE VI Revitalization 
grant Agreement, the requirements in OMB Circulars A-87, ``Cost 
Principles Applicable to Grants, Contracts and Other Agreements with 
State and Local Governments;'' A-133, ``Audits of States, Local 
Governments, and Non-Profit Organizations;'' the regulations 24 CFR 
part 85, ``Administrative Requirements for Grants and Cooperative 
Agreements to State, Local, and Federally Recognized Indian Tribal 
Government'' and generally accepted accounting principles (GAAP).
    k. Resident and Community Involvement.
    (1) General. You are required to involve the affected public 
housing residents, state and local governments, private service 
providers, financing agencies, and developers in the planning process, 
proposed implementation, and management of your revitalization plan. 
This involvement must be continuous from the beginning of the planning 
process through the implementation and management of the grant, if 
awarded.
    (2) Resident Training Session. You must conduct at least one 
training session for residents of the severely distressed project on 
the HOPE VI development process. HUD does not prescribe the content of 
this meeting.
    (3) Public Meetings.
    (a) You must conduct at least three public meetings with residents 
and the broader community, in order to involve them in a meaningful way 
in the process of developing the revitalization plan and preparing the 
application. One of these meetings must have taken place at the 
beginning of the planning process.
    (b) These three public meetings must take place on different days 
from each other and from the resident training session.
    (c) During these three meetings, you must address the issues listed 
below (i.e., all issues need not be addressed at each meeting):
    (i) The HOPE VI planning and implementation process;
    (ii) The proposed physical plan, including site and unit design, 
and whether the unit design is in compliance with Fair Housing Act and 
Uniform Federal Accessibility Standards (UFAS) standards;
    (iii) The extent of proposed demolition;
    (iv) Planned community and supportive service activities;
    (v) Other proposed revitalization activities;
    (vi) Relocation issues, including relocation planning, mobility 
counseling, and maintaining the HOPE VI community planning process 
during the demolition and reconstruction phases, where temporary 
relocation, i.e., relocation for a reasonable period (less than one 
year), is involved;
    (vii) Reoccupancy plans and policies, including site-based waiting 
lists; and
    (viii) Section 3 and employment opportunities to be created as a 
result of redevelopment activities.
    (4) Accessibility. All training sessions and meetings must be held 
in facilities that are accessible to persons with disabilities; provide 
services such as day care, transportation, and sign language 
interpreters, as needed; and, as practical and applicable, be conducted 
in English and the language(s) most appropriate for the community.
    (5) Allowable Time Period for Training and Meetings.
    (a) At least one public meeting, which included representation from 
both the affected public housing residents and the community, must have 
been held at the beginning of the revitalization planning period;
    (b) At least one training session must have been held after the 
publication date of this NOFA in the Federal Register; and
    (c) A minimum of two more public meetings must have been held after 
the publication date of this NOFA in the Federal Register.
    (d) The above minimum number of training sessions and meetings is 
required to meet the Resident Involvement threshold in section III.C.2. 
of this NOFA. Additional meetings and training sessions will be counted 
in the rating factors toward demonstration of continual inclusion of 
the residents and community.
    l. CSS Program Requirements.
    (1) Term Period. CSS programs and services must last for the life 
of the grant and must be carefully planned so that they will be 
sustainable after the HOPE VI grant period ends.
    (2) Allowed Funding Mechanisms:
    (a) Maximum CSS grant amount. Consistent with sections 24(d)(1)(L) 
and 24(j)(3) of the 1937 Act, you may use up to 15 percent of the total 
HOPE VI grant to pay the costs of CSS activities. See section III.B.1. 
of this NOFA for CSS grant matching requirements. You may spend 
additional sums on CSS activities using donations; other HUD funds made 
available for that purpose; and other federal, state, local, PHA, or 
private-sector donations (leverage).
    (b) CSS Endowment Trust. Consistent with section 24(d)(2) of the 
1937 Act, you may deposit up to 15 percent of your HOPE VI grant (the 
maximum amount of the award allowable for CSS activities) into an 
endowment trust to provide CSS activities. In order to establish an 
endowment trust, you must first execute with HUD a HOPE VI Endowment 
Trust Addendum to the grant agreement. When reviewing your request to 
set up an endowment trust, HUD will take into consideration your 
ability to pay for current CSS activities with HOPE VI or other funds 
and the projected long-term sustainability of the endowment trust to 
carry out those activities.
    (3) CSS Team and Partners.
    (a) The term ``CSS Team'' refers to PHA staff members and any 
consultants who will have the responsibility to design, implement, and 
manage your CSS program.
    (b) The term ``CSS Partners'' refers to the agencies and 
organizations that you will work with to provide supportive services 
for residents. A partner could be a local service organization such as 
a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local Temporary Assistance for Needy 
Families (TANF) agency that works with you to ensure that their 
services are coordinated and comprehensive.
    (c) Partner Agreements. There are several relationships that you 
may have with your partners including subgrant agreements, contracts, 
memoranda of understanding (MOUs), memoranda of agreement (MOAs), and/
or informal relationships.
    (4) Tracking and Case Management. If selected, the grantee is 
responsible for tracking and providing CSS programs and services to 
residents currently living on the targeted public housing site and 
residents already relocated from the site. It is imperative that case 
management services begin immediately upon award so that residents who 
will be relocated have time to participate in and benefit from CSS 
activities before leaving the site, and that residents who have already 
been relocated are able to participate in and benefit from CSS 
activities.
    (5) CSS Strategy and Objectives Requirements.

[[Page 41832]]

    (a) Transition to Housing Self-Sufficiency. One of HUD's major 
priorities is to assist public housing residents in their efforts to 
become financially self-sufficient and less dependent on direct 
government housing assistance. Your CSS program must include a well-
defined, measurable endeavor that will enable public housing residents 
to transition to other affordable housing programs and to regular 
market housing. Family Self-Sufficiency (FSS) and CSS activities that 
are designed to increase education and income levels are considered a 
part of this endeavor, as is the establishment of reasonable limits on 
the length of time any household that is not headed by an elderly or 
disabled person can reside in a public housing unit within a HOPE VI 
Revitalization Development.
    (b) Neighborhood Networks. All FY2007 Revitalization grantees will 
be required to establish Neighborhood Networks Centers (NNC) and to 
promote the inclusion of infrastructure that permits unit-based access 
to broadband Internet connectivity in all new and replacement public 
housing units. This program provides residents with on-site access to 
computer and training resources that create knowledge and experience 
with computers and the Internet as tools to increase access to CSS, job 
training, and the job market. Grantees may use HOPE VI funds to 
establish NNCs and to provide unit-based Internet connectivity. More 
information on the requirements of the NNC program is available on the 
Neighborhood Networks Web site at http://www.hud.gov/nnw/nnwindex.html. 
There will not be a separate FY2007-funded NOFA for HOPE VI 
Neighborhood Networks programs.
    (c) Quantifiable Goals. The objectives of your CSS program must be 
results-oriented, with quantifiable goals and outcomes that can be used 
to measure progress and make changes in activities as necessary.
    (d) Appropriate Scale and Type.
    (i) CSS activities must be of an appropriate scale, type, and 
variety to meet the needs of all residents (including adults, seniors, 
youth ages 16 to 21, and children) of the severely distressed project, 
including residents remaining on-site, residents who will relocate 
permanently to other PHA units or HCV-assisted housing, residents who 
will relocate temporarily during the construction phase, and new 
residents of the revitalized units.
    (ii) Non-public housing residents may also participate in CSS 
activities, as long as the primary participants in the activities are 
residents as described in section (i) above.
    (e) Coordination.
    (i) CSS activities must be consistent with state and local welfare 
reform requirements and goals.
    (ii) Your CSS activities must be coordinated with the efforts of 
other service providers in your locality, including nonprofit 
organizations, educational institutions, and state and local programs.
    (iii) CSS activities must be well-integrated with the physical 
development process, both in terms of timing and the provision of 
facilities to house on-site service and educational activities.
    (f) Your CSS program must provide appropriate community and 
supportive services to residents prior to any relocation.
    m. CSS Partnerships and Resources. The following are examples of 
the kinds of organizations and agencies (local, state, and federal) 
that can provide you with resources necessary to carry out and sustain 
your CSS activities.
    (1) Local Boards of Education, public libraries, local community 
colleges, institutions of higher learning, nonprofit or for-profit 
educational institutions, and public/private mentoring programs that 
will lead to new or improved educational facilities and improved 
educational achievement of young people in the revitalized development, 
from birth through higher education.
    (2) Temporary Assistance for Needy Families (TANF) agencies/welfare 
departments for TANF and non-TANF in-kind services, and non-TANF cash 
donations, e.g., donation of TANF agency staff time.
    (3) Job development organizations that link private sector or 
nonprofit employers with low-income prospective employees.
    (4) Workforce Development Agencies.
    (5) Organizations that provide residents with job readiness and 
retention training and support.
    (6) Economic development agencies such as the Small Business 
Administration, which provide entrepreneurial training and small 
business development centers.
    (7) National corporations, local businesses, and other large 
institutions such as hospitals that can commit to provide entry-level 
jobs. Employers may agree to train residents or commit to hire 
residents after they complete jobs preparedness or training programs 
that are provided by you, other partners, or the employer itself.
    (8) Programs that integrate employment training, education, and 
counseling, and where creative partnerships with local boards of 
education, state charter schools, TANF agencies, foundations, and 
private funding sources have been or could be established.
    (9) Sources of capital such as foundations, banks, credit unions, 
and charitable, fraternal, and business organizations.
    (10) Nonprofit organizations such as the Girl Scouts and the Urban 
League (each of which has a Memorandum of Agreement (MOA) with HUD). 
Copies of these MOAs can be found on the Community and Supportive 
Services page of the HOPE VI Web site at http://www.hud.gov/hopevi.
    (11) Civil rights and fair housing organizations.
    (12) Local area agencies on aging.
    (13) Local agencies and organizations serving persons with 
disabilities.
    (14) Nonprofit organizations such as grassroots faith-based and 
other community-based organizations. HUD encourages you to partner or 
subgrant with nonprofit organizations, including grassroots faith-based 
and other community-based organizations, to provide CSS activities. See 
HUD's Center for Faith-Based and Community Initiatives Web site at 
http://www.hud.gov/offices/fbci/index.cfm.
    (a) HUD will consider an organization a ``grassroots'' organization 
if it is headquartered in the local community to which it provides 
services; and
    (i) Has an annual social services budget of no more than $300,000. 
This cap includes only the portion of the organization's budget 
allocated to providing social services. It does not include other 
portions of the budget such as salaries and expenses; or
    (ii) Has six or fewer full-time equivalent employees.
    (b) Local affiliates of national organizations are not considered 
``grassroots.''
    (15) Federal agencies and their community and supportive service-
related programs, including youth-related programs. For example, many 
federal agencies have youth-related programs such as the Department of 
Justice's Weed and Seed program; the Department of Agriculture's 4-H 
program; the Department of Labor's Youthbuild program; and programs 
within the Department of Health and Human Services.
    n. Fair Housing and Equal Opportunity Requirements.
    (1) Site and Neighborhood Standards for Replacement Housing. You 
must comply with the Fair Housing Act and Title VI of the Civil Rights 
Act of 1964, and regulations thereunder. In determining the location of 
any

[[Page 41833]]

replacement housing, you must comply with either the site and 
neighborhood standards regulations at 24 CFR 941.202(b)-(d) or with the 
standards outlined in this NOFA. Because the objective of the HOPE VI 
program is to alleviate distressed conditions at the development and in 
the surrounding neighborhood, replacement housing under HOPE VI that is 
located on the site of the existing development or in its surrounding 
neighborhood will not require independent approval by HUD under Site 
and Neighborhood Standards. The term ``surrounding neighborhood'' means 
the neighborhood within a 3-mile radius of the site of the existing 
development.
    (a) HOPE VI Goals Related to Site and Neighborhood Standards. You 
are expected to ensure that your revitalization plan will expand 
assisted housing opportunities outside low-income areas and areas of 
minority concentration and will accomplish substantial revitalization 
in the project and its surrounding neighborhood. You are also expected 
to ensure that eligible households of all races and ethnic groups will 
have equal and meaningful access to the housing.
    (b) Objectives in Selecting HUD-Assisted Sites. The fundamental 
goal of HUD's fair housing policy is to make full and free housing 
choice a reality. Housing choice requires that all households may 
choose the type of neighborhood where they wish to reside; that 
minority neighborhoods are no longer deprived of essential public and 
private resources; and that stable, racially mixed neighborhoods are 
available as a meaningful choice for all. To make full and free housing 
choice a reality, sites for HUD-assisted housing investment should be 
selected so as to advance two complementary goals:
    (i) Expand assisted housing opportunities in non-minority 
neighborhoods, opening up choices throughout the metropolitan area for 
all assisted households; and
    (ii) Reinvest in minority neighborhoods, improving the quality and 
affordability of housing there to represent a real choice for assisted 
households.
    (c) Nondiscrimination and Equal Opportunity Requirements. In 
determining the location of any replacement housing, you must comply 
with the Fair Housing Act, Title VI of the Civil Rights Act of 1964, 
section 504 of the Rehabilitation Act of 1973, and implementing 
regulations.
    (d) Grantee Election of Requirements. You may, at your election, 
separately with regard to each site you propose, comply with the 
development regulations regarding Site and Neighborhood Standards (24 
CFR 941.202(b)-(d)), or with the Site and Neighborhood Standards 
contained in this section.
    (e) Replacement housing located on-site or in the surrounding 
neighborhood. Replacement housing under HOPE VI that is located on the 
site of the existing project or in its surrounding neighborhood will 
not require independent approval under Site and Neighborhood Standards, 
since HUD will consider the scope and impact of the proposed 
revitalization to alleviate severely distressed conditions at the 
public housing project and its surrounding neighborhood, in assessing 
the application to be funded under this NOFA.
    (f) Off-Site Replacement Housing Located Outside the Surrounding 
Neighborhood. Unless you demonstrate that there are already significant 
opportunities in the metropolitan area for assisted households to 
choose non-minority neighborhoods (or that these opportunities are 
under development), HOPE VI replacement housing not covered by section 
(e) above may not be located in an area of minority concentration (as 
defined in paragraph (g) below) without the prior approval of HUD. Such 
approval may be granted if you demonstrate to the satisfaction of HUD 
that:
    (i) You have made determined and good faith efforts, and found it 
impossible with the resources available, to acquire an appropriate 
site(s) in an area not of minority concentration; or
    (ii) The replacement housing, taking into consideration both the 
CSS activities or other revitalizing activities included in the 
revitalization plan, and any other revitalization activities in 
operation or firmly planned, will contribute to the stabilization or 
improvement of the neighborhood in which it is located, by addressing 
any serious deficiencies in services, safety, economic opportunity, 
educational opportunity, and housing stock.
    (g) Area of Minority Concentration. The term ``area of minority 
concentration'' is any neighborhood in which:
    (i) The percentage of households in a particular racial or ethnic 
minority group is at least 20 percentage points higher than the 
percentage of that minority group for the housing market area; i.e., 
the Metropolitan Statistical Area (MSA) in which the proposed housing 
is to be located;
    (ii) The neighborhood's total percentage of minority persons is at 
least 20 percentage points higher than the total percentage of all 
minorities for the MSA as a whole; or
    (iii) In the case of a metropolitan area, the neighborhood's total 
percentage of minority persons exceeds 50 percent of its population.
    (2) Housing and Services for Persons with Disabilities.
    (a) Accessibility Requirements. HOPE VI developments are subject to 
the accessibility requirements contained in several federal laws. All 
applicable laws must be read together and followed. PIH Notice 2003-31, 
available at http://www.hud.gov/offices/pih/publications/notices/, and 
subsequent updates or successor notices, provide an overview of all 
pertinent laws and implementing regulations pertaining to HOPE VI. All 
HOPE VI multifamily housing projects, whether they involve new 
construction or rehabilitation, are subject to the section 504 
accessibility requirements described in 24 CFR part 8. See, in 
particular, 24 CFR 8.20-8.24. In addition, under the Fair Housing Act, 
all new construction of covered multifamily buildings must contain 
certain features of accessible and adaptable design. Units covered are 
all those in elevator buildings with four or more units and all ground 
floor units in buildings without elevators. The relevant accessibility 
requirements are provided on HUD's Fair Housing and Equal Opportunity 
(FHEO) Web site at http://www.hud.gov/groups/fairhousing.cfm.
    (b) Specific Fair Housing requirements are:
    (i) The Fair Housing Act (42 U.S.C. 3601-19) and regulations at 24 
CFR part 100.
    (ii) The prohibitions against discrimination on the basis of 
disability, including requirements that multifamily housing projects 
comply with the Uniform Federal Accessibility Standards, and that you 
make reasonable accommodations to individuals with disabilities under 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 
regulations at 24 CFR part 8.
    (iii) Title II of the Americans with Disabilities Act (42 U.S.C 
12101 et seq.) and its implementing regulations at 28 CFR part 35.
    (iv) The Architectural Barriers Act of 1968 (42 U.S.C. 4151) and 
the regulations at 24 CFR part 40.
    (c) Accessible Technology. The Rehabilitation Act Amendments of 
1998 apply to all electronic information technology (EIT) used by a 
grantee for transmitting, receiving, using, or storing information to 
carry out the responsibilities of any federal grant awarded. It 
includes, but is not limited

[[Page 41834]]

to, computers (hardware, software, word processing, e-mail, and web 
pages), facsimile machines, copiers, and telephones. When developing, 
procuring, maintaining, or using EIT, grantees must ensure that the EIT 
allows:
    (i) Employees with disabilities to have access to and use 
information and data that are comparable to the access and use of data 
by employees who do not have disabilities; and
    (ii) Members of the public with disabilities seeking information or 
service from a grantee must have access to and use of information and 
data that are comparable to the access and use of data by members of 
the public who do not have disabilities. If these standards impose an 
undue burden on a grantee, they may provide an alternative means to 
allow the individual to use the information and data. No grantee will 
be required to provide information services to a person with 
disabilities at any location other than the location at which the 
information services are generally provided.
    o. Relocation Requirements.
    (1) Requirements.
    (a) You must carry out relocation activities in compliance with a 
relocation plan that conforms to the following statutory and regulatory 
requirements, as applicable:
    (i) Relocation or temporary relocation carried out as a result of 
rehabilitation under an approved revitalization plan is subject to the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970 (URA), the URA regulations at 49 CFR part 24, and 
regulations at 24 CFR 968.108 or successor part.
    (ii) Relocation carried out as a result of acquisition under an 
approved revitalization plan is subject to the URA and regulations at 
24 CFR 941.207 or successor part.
    (iii) Relocation carried out as a result of disposition under an 
approved revitalization plan is subject to section 18 of the 1937 Act, 
as amended.
    (iv) Relocation carried out as a result of demolition under an 
approved revitalization plan is subject to the URA regulations at 49 
CFR part 24.
    (b) You must provide suitable, accessible, decent, safe, and 
sanitary housing for each family required to relocate as a result of 
revitalization activities under your revitalization plan. Any person 
(including individuals, partnerships, corporations, or associations) 
who moves from real property or moves personal property from real 
property directly (1) because of a written notice to acquire real 
property in whole or in part, or (2) because of the acquisition of the 
real property, in whole or in part, for a HUD-assisted activity, is 
covered by federal relocation statute and regulations. Specifically, 
this type of move is covered by the acquisition policies and procedures 
and the relocation requirements of the URA, and the implementing 
government-wide regulation at 49 CFR part 24 and Handbook 1378. These 
relocation requirements cover any person who moves permanently from 
real property or moves personal property from real property directly 
because of acquisition, rehabilitation, or demolition for an activity 
undertaken with HUD assistance.
    (2) Relocation Plan. Each applicant must complete a HOPE VI 
Relocation plan, in accordance with the requirements stated in section 
III.C.2. of this NOFA.
    (a) The HOPE VI Relocation plan is intended to ensure that PHAs 
adhere to the URA and that all residents who have been or will be 
temporarily or permanently relocated from the site are provided with 
CSS activities such as mobility counseling and direct assistance in 
locating housing. Your HOPE VI Relocation plan must serve to minimize 
permanent displacement of current residents of the public housing site 
who wish to remain in or return to the revitalized community. Your HOPE 
VI Relocation plan must also furnish alternative permanent housing for 
current residents of the public housing site who do not wish to remain 
in or return to the revitalized community. Your CSS program must 
provide for the delivery of community and supportive services to 
residents prior to any relocation, temporary or permanent.
    (b) You are encouraged to involve HUD-approved housing counseling 
agencies, including faith-based, nonprofit, and other organizations, 
and individuals in the community to which relocatees choose to move, in 
order to ease the transition and minimize the impact on the 
neighborhood. HUD will view favorably innovative programs such as 
community mentors, support groups, and the like.
    (c) If applicable, you are encouraged to work with surrounding 
jurisdictions to assure a smooth transition if residents choose to move 
from your jurisdiction to the surrounding area.
    p. Design. HUD is seeking excellence in design. You must carefully 
select your architects and planners, and enlist local affiliates of 
national architectural and planning organizations such as the American 
Institute of Architects, the American Society of Landscape Architects, 
the American Planning Association, the Congress for the New Urbanism, 
and the department of architecture at a local college or university to 
assist you in assessing qualifications of design professionals or in 
participating on a selection panel that results in the procurement of 
excellent design services. You should select a design team that is 
committed to a process in which residents, including young people and 
seniors, the broader community, and other stakeholders participate in 
designing the new community.
    Your proposed site plan, new units, and other buildings must be 
designed to be compatible with and enrich the surrounding neighborhood. 
Local architecture and design elements and amenities should be 
incorporated into the new or rehabilitated homes so that the 
revitalized sites and structures will blend into the broader community 
and appeal to the market segments for which they are intended. Housing, 
community facilities, and economic development space must be well 
integrated. You must select members of your team who have the ability 
to meet these requirements.
    q. Internet Access. You must have access to the Internet and 
provide HUD with e-mail addresses of key staff and contact people.
    r. Non-Public Housing Funding for Non-Public Housing or Replacement 
Units. Public housing funds may only be used to develop Replacement 
Housing. You may not use public housing funds, which include HOPE VI 
funds, to develop retail or commercial space, economic development 
space, or housing units that are not Replacement Housing, as defined in 
this NOFA.
    s. Market-Rate Housing and Economic Development. If you include 
market-rate housing, economic development, or retail structures in your 
revitalization plan, such proposals must be supported by a market 
assessment from an independent third party, credentialed market 
research firm, or professional. This assessment should describe its 
assessment of the demand and associated pricing structure for the 
proposed residential units, economic development or retail structures, 
based on the market and economic conditions of the project area.
    t. Eminent Domain and Public Use. Section 726 of the FY 2007 HUD 
Appropriations Act, under which this NOFA is funded, prohibits any use 
of these funds ``to support any Federal, State, or local projects that 
seek to use the power of eminent domain, unless eminent domain is used 
only for a public use.'' The term ``public use'' is expressly stated 
not ``to include economic development that primarily

[[Page 41835]]

benefits private entities.'' Accordingly, applications under this NOFA 
may not propose mixed-use projects in which housing is complemented 
appreciably with commercial facilities (i.e., economic development), if 
eminent domain is used for the site.
    u. Cost Control Standards. (1) Your hard development costs must be 
realistically developed through the use of technically competent 
methodologies, including cost estimating services, and should be 
comparable to industry standards for the kind of construction to be 
performed in the proposed geographic area.
    (2) Your cost estimates must represent an economically viable 
preliminary plan for designing, planning, and carrying out your 
proposed activities, in accordance with local costs of labor, 
materials, and services.
    (3) Your projected soft costs must be reasonable and comparable to 
industry standards. Upon award, soft costs will be subject to HUD's 
``Safe Harbor'' cost control standards. For rental units, these safe 
harbors provide specific limitations on such costs as developer's fees 
(between 9 and 12 percent), PHA administration/consultant cost (no more 
than 3 to 6 percent of the total project budget), contractor's fee (6 
percent), overhead (2 percent), and general conditions (6 percent). 
HUD's Cost Control and Safe Harbor Standards can be found on HUD's HOPE 
VI Web site.
    (4) If you are eligible for funding, HUD will delete any 
unallowable items from your budget and may reduce your grant 
accordingly.
    v. Timeliness of Development Activity. Grantees must proceed within 
a reasonable timeframe, as indicated below. In determining 
reasonableness of such timeframe, HUD will take into consideration 
those delays caused by factors beyond your control. These timeframes 
must be reflected in the form of a program schedule, in accordance with 
the timeframes below:
    (1) Grantees must submit Supplemental Submissions within 90 days 
from the date of HUD's written request.
    (2) Grantees must submit CSS work plans within 90 days from the 
execution of the grant agreement.
    (3) Grantees must start construction within 12 months from the date 
of HUD's approval of the Supplemental Submissions, as requested by HUD 
after grant award. This time period may not exceed 18 months from the 
date the grant agreement is executed.
    (4) Grantees must submit the development proposal (i.e., whether 
mixed-finance development, homeownership development, etc.) for the 
first phase of construction within 12 months of grant award. The 
program schedule must indicate the date on which the development 
proposal for each phase of the revitalization plan will be submitted to 
HUD.
    (5) The closing of the first phase must take place within 15 months 
of grant award. For this purpose, ``closing'' means all financial and 
legal arrangements have been executed and actual activities 
(construction, etc.) are ready to commence.
    (6) Grantees must complete construction within 48 months from the 
date of HUD's approval of your Supplemental Submissions. This time 
period for completion may not exceed 54 months from the date the grant 
agreement is executed.
    (7) All other required components of the revitalization plan and 
any other submissions not mentioned above must be submitted in 
accordance with the Quarterly Report Administrative and Compliance 
Checkpoints Report, as approved by HUD.
    w. HOPE VI Endowment Trust Addendum to the Grant Agreement. This 
document must be executed between the grantee and HUD in order for the 
grantee to use CSS funds in accordance with this NOFA.
    x. Revitalization Plan. After HUD conducts a post-award review of 
your application and makes a visit to the site, you will be required to 
submit components of your revitalization plan to HUD, as provided in 
the HOPE VI Revitalization Grant Agreement. These components include, 
but are not limited to:
    (a) Supplemental Submissions, including a HOPE VI Program Budget;
    (b) A Community and Supportive Services work plan, in accordance 
with guidance provided by HUD;
    (c) A standard or mixed-finance development proposal, as 
applicable;
    (d) A demolition and disposition application, as applicable; and
    (e) A homeownership proposal, as applicable.
    y. Pre-Award Accounting System Surveys. This requirement is hereby 
incorporated from Section III.C. of the General Section.
    z. Name Check Review. This requirement is hereby incorporated from 
Section III.C. of the General Section.
    aa. False Statements. A false statement in an application is 
grounds for denial or termination of an award and possible punishment 
as provided in 18 U.S.C. 1001.
    bb. Prohibition Against Lobbying Activities. This requirement is 
hereby incorporated from Section III.C. of the General Section.
    cc. Conducting Business in Accordance with Core Values and Ethical 
Standards. This requirement is hereby incorporated from Section III.C. 
of the General Section.
    dd. Providing Full and Equal Access to Grassroots Faith-Based and 
Other Community-Based Organizations in HUD Program Implementation. This 
requirement is hereby incorporated from Section III.C. of the General 
Section.
    ee. Number of Units. The number of units that you plan to develop 
should reflect your need for replacement units, the need for other 
affordable units, and the market demand for market units, along with 
financial feasibility. The number of planned new construction public 
housing units may not result in a net increase from the number of 
public housing units owned, assisted, or operated by the PHA on October 
1, 1999, including any public housing units demolished as part of any 
revitalization effort. The total number of units to be developed may be 
less than, or more than, the original number of public housing units in 
the targeted public housing project. HUD will review requests to 
revitalize projects with small numbers of units on an equal basis with 
those with large numbers of units.
    ff. Environmental Requirements.
    (1) HUD Approval. HUD notification that you have been selected to 
receive a HOPE VI grant constitutes only preliminary approval. Grant 
funds may not be released under this NOFA (except for activities that 
are excluded from environmental review under 24 CFR part 58 or 50) 
until the responsible entity, as defined in 24 CFR 58.2(a)(7), 
completes an environmental review and you submit and obtain both HUD 
approval of a request for release of funds and the responsible entity's 
environmental certification, in accordance with 24 CFR part 58 (or HUD 
has completed an environmental review under 24 CFR part 50, where HUD 
has determined to conduct the environmental review).
    (2) Responsibility. If you are selected for funding and an 
environmental review has not been conducted on the targeted site, the 
responsible entity must assume the environmental review 
responsibilities for projects being funded by HOPE VI. If you object to 
the responsible entity conducting the environmental review, on the 
basis of performance, timing, or compatibility of objectives, HUD will 
review the facts and determine who will perform the environmental 
review. At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing, or compatibility

[[Page 41836]]

of objectives, or in accordance with 24 CFR 58.77(d)(1). If a 
responsible entity objects to performing an environmental review, or if 
HUD determines that the responsible entity should not perform the 
environmental review, HUD may designate another responsible entity to 
conduct the review or may itself conduct the environmental review in 
accordance with the provisions of 24 CFR part 50. You must provide any 
documentation to the responsible entity (or HUD, where applicable) that 
is needed to perform the environmental review.
    (3) Phase I and Phase II Environmental Site Assessments. If you are 
selected for funding, you must have a Phase I environmental site 
assessment completed in accordance with the ASTM Standards E 1527-05, 
as amended, for each affected site. A Phase I assessment is required 
whether the environmental review is completed under 24 CFR part 50 or 
24 CFR part 58. The results of the Phase I assessment must be included 
in the documents that must be provided to the responsible entity (or 
HUD) for the environmental review. If the Phase I assessment recognizes 
environmental concerns or if the results are inconclusive, a Phase II 
environmental site assessment will be required.
    (4) Request for Release of Funds. You, and any participant in the 
development process, may not undertake any actions with respect to the 
project that are choice-limiting or could have environmentally adverse 
effects, including demolishing, acquiring, rehabilitating, converting, 
leasing, repairing, or constructing property proposed to be assisted 
under this NOFA, and you, and any participant in the development 
process, may not commit or expend HUD or local funds for these 
activities, until HUD has approved a Request for Release of Funds 
following a responsible entity's environmental review under 24 CFR part 
58, or until HUD has completed an environmental review and given 
approval for the action under 24 CFR part 50. In addition, you must 
carry out any mitigating/remedial measures required by the responsible 
entity (or HUD). If a remediation plan, where required, is not approved 
by HUD and a fully funded contract with a qualified contractor licensed 
to perform the required type of remediation is not executed, HUD 
reserves the right to determine that the grant is in default.
    (5) If the environmental review is completed before HUD approval of 
the HOPE VI Supplemental Submissions and you have submitted your 
Request for Release of Funds (RROF), the supplemental submissions 
approval letter shall state any conditions, modifications, 
prohibitions, etc., required as a result of the environmental review, 
including the need for any further environmental review. You must carry 
out any mitigating/remedial measures required by HUD, or select an 
alternate eligible property, if permitted by HUD. If HUD does not 
approve the remediation plan and a fully funded contract with a 
qualified contractor licensed to perform the required type of 
remediation is not executed, HUD reserves the right to determine that 
the grant is in default.
    (6) If the environmental review is not completed and you have not 
submitted the RROF before HUD approval of the supplemental submissions, 
the letter approving the supplemental submissions will instruct you and 
any participant in the revitalization process to refrain from 
undertaking, obligating, or expending HUD or non-HUD funds on physical 
activities or other choice-limiting actions until HUD approves your 
RROF and the related certification of the responsible entity (or HUD 
has completed the environmental review). The supplemental submissions 
approval letter also will advise you that the approved supplemental 
submissions may be modified on the basis of the results of the 
environmental review.
    (7) There must not be any open issues or uncertainties related to 
environmental issues, public policy factors (such as sewer 
moratoriums), proper zoning, availability of all necessary utilities, 
or clouds on title that would preclude development in the requested 
locality. You will certify to these facts when signing the HOPE VI 
Revitalization Grant Application Certifications.
    (8) HUD's environmental Web site is located at http://www.hud.gov/offices/cpd/environment/index.cfm.
    gg. Match Donations and Leverage Resources--Post Award. After 
award, during review of grantee mixed-finance, development, or 
homeownership proposals, HUD will evaluate the nature of Match and 
Leverage resources to assess the conditions precedent to the 
availability of the funds to the grantee. HUD will assess the 
availability of the participating party(ies)'s financing, the amount 
and source of financing committed to the proposal by the participating 
party(ies), and the firm commitment of those funds. HUD may require an 
opinion of the PHA's and the owner entity's counsel (or other party 
designated by HUD) attesting that counsel has examined the availability 
of the participating party's financing, and the amount and source of 
financing committed to the proposal by the participating party(ies), 
and has determined that such financing has been firmly committed by the 
participating party(ies) for use in carrying out the proposal, and that 
such commitment is in the amount required under the terms of the 
proposal.
    hh. Evidence of Use. Grantees will be required to show evidence 
that matching resources were actually received and used for their 
intended purposes through quarterly reports as the project proceeds. 
Sources of matching funds may be substituted after grant award, as long 
as the dollar requirement is met.
    ii. Grantee Enforcement. Grantees must pursue and enforce any 
commitment (including commitments for services) obtained from any 
public or private entity for any contribution or commitment to the 
project or surrounding area that was part of the match amount.
    jj. LOCCS Requirements. The grantee must record all obligations and 
expenditures in LOCCS.
    kk. Final Audit. Grantees are required to obtain a complete final 
closeout audit of the grant's financial statements by a certified 
public accountant, in accordance with generally accepted government 
audit standards. A written report of the audit must be forwarded to HUD 
within 60 days of issuance. Grant recipients must comply with the 
requirements of 24 CFR part 84 or 24 CFR part 85, as stated in OMB 
Circulars A-110, A-87, and A-122, as applicable.
    ll. Section 3. HOPE VI grantees must comply with section 3 of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic 
Opportunities for Low- and Very-Low-Income Persons in Connection with 
Assisted Projects) and its implementing regulations at 24 CFR part 135. 
Information about section 3 can be found at HUD's section 3 Web site at 
http://www.hud.gov/offices/fheo/section3/section3.cfm.
    mm. General Section References. The following subsections of 
section III.C. of the General Section are hereby incorporated by 
reference:
    (1) The Americans with Disabilities Act of 1990;
    (2) Affirmatively Furthering Fair Housing;
    (3) Economic Opportunities for Low- and Very Low-Income Persons 
(section 3);
    (4) Executive Order 13166, Improving Access to Services for Persons 
With Limited English Proficiency (LEP);
    (5) Accessible Technology;
    (6) Procurement of Recovered Materials;

[[Page 41837]]

    (7) Participation in HUD-Sponsored Program Evaluation;
    (8) Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects;
    (9) OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs; and
    (10) Drug-Free Workplace.
    nn. Program Requirements that Apply to Match. See Section III.B.1.
    oo. Program Requirements that Apply to Match and Leverage. 
Applicants must follow these requirements in compiling and documenting 
their match and leverage resources for purposes of the NOFA.
    (1) You must actively enlist other stakeholders who are vested in 
and can provide significant financial assistance to your revitalization 
effort, both for match and leverage, and for physical development and 
CSS.
    (2) Types of Resources. HUD seeks to fund mixed-finance 
developments that use HOPE VI funds to match funds requested and 
leverage the maximum amount of other funds, particularly from private 
sources, that will result in revitalized public housing, other types of 
assisted and market-rate housing, and private retail and economic 
development. There are four types of resources: Development, CSS, 
Anticipatory, and Collateral. Development and CSS match and leverage 
are program requirements, the types of resources for which are 
discussed below. Anticipatory and Collateral leverage are included only 
in the Leverage rating factor, but follow the requirements below for 
purposes of scoring.
    (3) General Requirements. These general requirements apply to all 
match and leverage resource commitments.
    (a) Firmly Committed. All resources for match and leverage must be 
firmly committed. ``Firmly committed'' means that the amount of the 
resource and its dedication to HOPE VI Revitalization activities must 
be explicit, in writing, and signed by a person authorized to make the 
commitment.
    (b) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form. As noted above, 
resources must be firmly committed.
    (c) Commitment letters must detail the dollar amount and term of 
the commitment (e.g., Agency X has committed to the residents of the 
public housing development $100,000 for each of 5 years, for a total of 
$500,000). Letters that do not include specific dollar amounts or terms 
will not be counted.
    (d) Signature. Resource commitments must be written and be signed 
by the appropriate official.
    (e) Dating. Match and leverage commitment letters must represent 
valid and accurate commitments. Resource commitment letters dated prior 
to 5 years before the NOFA publication date will not be accepted.
    (f) If the commitment document for any match or leverage funds/in-
kind services is not included in the application and provided before 
the NOFA deadline date, the related match or leverage will not be 
considered.
    (g) Depending upon the specific Memorandum of Understanding (MOU), 
an MOU alone may not firmly commit funds, e.g., when an MOU states that 
a donation agreement may be discussed in the future. If an MOU does 
firmly commit funds, MOU language that does so should be highlighted or 
mentioned in the application. To ensure inclusion of funds, MOUs should 
be accompanied by commitment letters or contracts.
    (h) The PHA's staff time and benefits are not an eligible match or 
leverage resource.
    (4) Development Resources.
    (a) Types of Development Resources. Types of Development Resources 
may include:
    (i) Private mortgage-secured loans, insured loans and other debt.
    (a) Where there is both a construction loan and a permanent take-
out loan that will replace that construction loan, you must provide 
documentation of both, but only the value of the permanent loan will be 
counted.
    (b) If you have obtained a construction loan but not a permanent 
loan, the value of the acceptably documented construction loan will be 
counted.
    (c) Your application or commitment letters must include each loan's 
interest rate, expected term maturity, and the frequency of repayment.
    (d) For privately financed homeownership, acceptable documentation 
of construction loans only will be considered. Permanent financing will 
not be counted as a development resource.
    (ii) Donations and contributions.
    (iii) Housing trust funds.
    (iv) Net sales proceeds from a completed homeownership project.
    Homeownership down payments from homebuyers will not be counted. 
Down payment assistance may be counted as a physical development 
resource if it is provided by a third-party entity not related to the 
homebuyer.
    (v) Funds committed to build private sector housing in direct 
connection with the HOPE VI Revitalization plan.
    (vi) Tax Increment Financing (TIF). A TIF will only be considered 
for match/leverage scoring under this NOFA if, as documented in a 
letter from the unit of local government responsible for approving the 
TIF: The TIF district has been formally created; the unit of local 
government responsible for approving the TIF has issued an approval (as 
of the application deadline) allowing the TIF to benefit the HOPE VI 
project; and the letter includes an estimate of the amount of resources 
anticipated to be generated by the TIF in relation to the HOPE VI.
    (vii) Tax Exempt Bonds. Your application must include a description 
of the use and term.
    (viii) Other Public Housing Funds. Other public housing sources 
include HOPE VI Revitalization funds from other grants, HOPE VI 
Demolition funds, HOPE VI Neighborhood Networks funds, HOPE VI Main 
Street funds, Capital Fund program funds, and proposals to use 
operating subsidy for debt service. These HUD public housing funds will 
NOT be counted for points under CSS, Development, and Collateral 
leverage in this NOFA. (However, they can be used as part of your 
revitalization plan.) Other public housing funds, except for HOPE VI 
Revitalization funds, will be counted toward your leverage rating for 
Anticipatory leverage. You may NOT include amounts from HOPE VI program 
funding, including HOPE VI Revitalization, HOPE VI Demolition, HOPE VI 
Neighborhood Networks, or HOPE VI Main Street grants, toward your match 
requirement. (Capital Funds may be counted for match; see Section 
III.B.1 for information on match).
    (ix) Other Federal Funds. Other federal sources may include non-
public housing funds provided by HUD.
    (x) Sale of Land. The value of land may be included as a 
development resource only if this value is a sales proceed. Absent a 
sales transaction, the value of land may not be counted.
    (xi) Donations of Land. Donations of land may be counted as a 
development resource, only if the donating entity owns the land to be 
donated. Donating entities may include a city, county/parish, church, 
community organization, etc. The application must include documentation 
of this ownership, signed by the appropriate authorizing official.
    (xii) Low-Income Housing Tax Credits (LIHTC).
    (a) Low-Income Tax Credits are authorized by section 42 of the IRS

[[Page 41838]]

Code, which allows investors to receive a credit against federal tax 
owed in return for providing funds to developers to help build or 
renovate housing that will be rented only to lower-income households, 
for a minimum period of 15 years.
    (b) There are two types of credits, both of which are available 
over a 10-year period: A 9 percent credit on construction/rehab costs, 
and a 4 percent credit on acquisition costs and all development costs 
financed partially with below-market federal loans (e.g., tax-exempt 
bonds). Tax credits are generally reserved annually through State 
Housing Finance Agencies, a directory of which can be found at http://www.ncsha.org/section.cfm/4/39/187.
    (c) Only LIHTC commitments that have been secured as of the 
application deadline date will be considered for match/leverage scoring 
under this NOFA. LIHTC commitments that are not secured (i.e., 
documentation in the application does not demonstrate they have been 
reserved by the state or local housing finance agency) will not be 
counted for match/leverage scoring. Only tax credits that have been 
reserved specifically for revitalization performed through this NOFA 
will be counted.
    (d) Endorsements or general letters of support from organizations 
or vendors alone will not count as resources and should not be included 
in the application or on a Resources Summary Form.
    (e) If you propose to include LIHTC equity as a development 
resource for any phase of development, your application must include a 
LIHTC reservation letter from your state or local housing finance 
agency in order to have the tax credit amounts counted in match/
leverage scoring. This letter must constitute a firm commitment and can 
only be conditioned on the receipt of the HOPE VI grant. HUD 
acknowledges that, depending on the housing finance agency, 
documentation for 4 percent tax credits may be represented in the form 
of a tax-exempt bond award letter. Accordingly, it will be accepted for 
match/leverage scoring purposes under this NOFA if you demonstrate that 
this is the only available evidence of 4 percent tax credits, and 
assuming that this documentation clearly indicates that tax-exempt 
bonds have been committed to the project.
    (b) Sources of Development Resources. Sources of Development 
Resources may include:
    (i) Public, private, and nonprofit entities, including LIHTC 
purchasers;
    (ii) State and local housing finance agencies;
    (iii) Local governments;
    (iv) The city's housing and redevelopment agency or other 
comparable agency. HUD will consider this to be a separate entity with 
which you are partnering if your PHA is also a redevelopment agency or 
otherwise has citywide responsibilities.
    (v) You may seek a pledge of Community Development Block Grant 
(CDBG) funds for improvements to public infrastructure such as streets, 
water mains, etc. related to the revitalization effort. CDBG funds are 
awarded by HUD by formula to units of general local government and to 
states, which may then award a grant or loan to certain other entities 
for revitalization activities. As a general rule, CDBG funds may not be 
used for the construction of new permanent housing. More information 
about the CDBG at http://www.hud.gov/offices/cpd/index.cfm.
    (vi) The city, county/parish, or state may provide HOME funds to be 
used for the development of housing units assisted with HOPE VI funds. 
The HOME Investment Partnership program provides funds for affordable 
housing that are distributed from HUD to units of general local 
governments and states. Funds may be used for new construction, 
rehabilitation, acquisition of standard housing, assistance to 
homebuyers, and tenant-based rental assistance. HOME-assisted rental 
housing units are subject to HOME rent limits, income limits, property 
standards, leases, tenant selection, and long-term affordability 
requirements. HOME funds may be used for the development of units 
assisted with HOPE VI funds, but they may not be used for housing 
assisted with public housing capital funds under section 9(d) of the 
1937 Act. Information about the HOME program can be found at http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.
    (vii) Foundations;
    (viii) Government Sponsored Enterprises such as the Federal Home 
Loan Bank, Fannie Mae, and Freddie Mac;
    (ix) HUD and other federal agencies;
    (x) Financial institutions, banks, or insurers; and
    (xi) Other private funders.
    (5) Community and Supportive Services Resources.
    a. General.
    (1) HUD seeks to fund mixed-finance developments that use HOPE VI 
funds to leverage the maximum amount of other resources to support CSS 
activities in order to ensure the successful transformation of the 
lives of residents and the sustainability of the revitalized public 
housing development. Match and leveraging of HOPE VI CSS funds with 
other funds and services is critical to the sustainability of CSS 
activities so that they will continue after the HOPE VI funds have been 
expended. Commitments of funding or in-kind services related to the 
provision of CSS activities may be counted as CSS resources and toward 
match and the calculation of CSS leverage, in accordance with the 
requirements below.
    (a) For CSS leverage (not match), include only funds/in-kind 
services that will be newly generated for HOPE VI activities. If an 
existing service provider significantly increases the level of services 
provided at the site, the increased amount of funds may be counted, 
except for TANF cash benefits. HUD will not count any funds for 
leverage points that have already been provided on a routine basis, 
such as TANF cash benefits and in-kind services that have been 
supporting ongoing CSS-type activities.
    (b) Existing and newly generated TANF cash benefits will not count 
as leverage. Newly generated non-cash services provided by TANF 
agencies will count as leverage.
    (c) Even though an in-kind CSS contribution may count as a 
resource, it may not be appropriate to include on the sources and uses 
attachment. Each source on the sources and uses attachment must be 
matched by a specific and appropriate use. For example, donations of 
staff time may not be used to offset costs for infrastructure.
    (d) Note that wages projected to be paid to residents through jobs 
or projected benefits (e.g., health/insurance/retirement benefits) 
related to projected resources to be provided by CSS partners may not 
be counted.
    (e) Resources must be directly applicable to the revitalization of 
the targeted public housing project and the transformation of the lives 
of residents of the targeted public housing project. Resources that are 
committed to individuals other than the residents of the targeted 
public housing development cannot be counted.
    (2) Types of Community and Supportive Services Resources. Types of 
Community and Supportive Services resources may include, but are not 
limited to:
    (a) Materials;
    (b) A building;
    (c) A lease on a building;
    (d) Other infrastructure;
    (e) Time and services contributed by volunteers;
    (f) PHA staff salaries and benefits;

[[Page 41839]]

    (g) Supplies;
    (h) The value of supportive services provided by a partner agency, 
in accordance with the eligible CSS activities described in section 
III.C.1.
    (3) Sources of Community and Supportive Services Resources. In 
order to achieve quantifiable self-sufficiency results, you must form 
partnerships with organizations that are skilled in the delivery of 
services to residents of public housing and that can provide 
commitments of resources to support those services. You must actively 
enlist as partners other stakeholders who are vested in and can provide 
commitments of funds and in-kind services for the CSS portion of your 
revitalization effort. See Section III.C.3.m. above for examples of the 
kinds of organizations and agencies that can provide you with resources 
necessary to carry out and sustain your CSS activities.

IV. Application and Submission Information

A. Addresses To Request Application Package

    This section describes how applicants may obtain application 
packages and request technical assistance. Copies of the published NOFA 
and application forms for HUD programs are made available at Grants.gov 
at the following Web site: http://www.grants.gov/applicants/apply_for_grants.jsp.
1. Technical Assistance and Resources for Electronic Grant Applications
    a. Grants.gov Customer Support. Applicants having difficulty 
accessing the application and instructions or having technical problems 
can receive customer support from Grants.gov by calling (800) 518-
GRANTS (this is a toll-free number) or by sending an e-mail to 
<a href="/cdn-cgi/l/email-protection#691a1c1919061b1d290e1b08071d1a470e061f"><span class="__cf_email__" data-cfemail="5c2f292c2c332e281c3b2e3d32282f723b332a">[email protected]</span></a>. The customer support center is open from 7 a.m. to 
9 p.m. eastern time, Monday through Friday, except federal holidays. 
The customer service representatives will assist applicants in 
accessing the information and addressing technology issues.
    b. Desktop Users Guide for Submitting Electronic Grant 
Applications. HUD has published on its Web site a detailed Desktop 
Users Guide that walks applicants through the application submission 
process, beginning with finding a funding opportunity, completing the 
registration process, and downloading and submitting the electronic 
application. The guide includes helpful step-by-step instructions, 
screen shots, and error-proof tips to assist applicants in becoming 
familiar with submitting applications electronically. The guide is 
available online at http://www.hud.gov/offices/adm/grants/deskuserguide.pdf.
    c. HUD's Registration Brochure. HUD has a registration brochure 
that provides detailed information on the registration process. See 
http://www.hud.gov/offices/adm/grants/regbrochure.pdf.
    d. HUD's Finding and Applying for Grant Opportunities Brochure. HUD 
also has a brochure that will guide you through the process of finding 
and applying for grants. See HUD's Finding and Applying for Grant 
Opportunities brochure at http://www.hud.gov/offices/adm/grants/findapplybrochure.pdf.
    e. HUD's NOFA Information Center. Applicants that do not have 
Internet access and need to obtain a copy of a NOFA can contact HUD's 
NOFA Information Center toll-free at (800) HUD-8929. Persons with 
hearing or speech impairments may access this number via TTY by calling 
the Federal Information Relay Service at (800) 877-8339. The NOFA 
Information Center is open between 10 a.m. and 6:30 p.m. eastern time, 
Monday through Friday, except federal holidays.
    f. HUD Staff. HUD staff will be available to provide you with 
general guidance and technical assistance about this notice or about 
individual program NOFAs. However, HUD staff is not permitted to help 
prepare your application. Following selection of applicants, but before 
announcement of awards are made, HUD staff is available to assist in 
clarifying or confirming information that is a prerequisite to the 
offer of an award or annual contributions contract (ACC) by HUD. If you 
have program-related questions, contact the agency contact listed in 
this NOFA.

B. Content and Form of Application Submission

1. Instructions on How To Register for Electronic Application 
Submission
    Applicants must submit their applications electronically through 
Grants.gov. Before you can do so, you must complete several important 
steps to register as a submitter. The registration process can take 
approximately 2 to 4 weeks to complete. Therefore, registration should 
be done in sufficient time before you submit your application. See 
Section IV.B. of the General Section for detailed information regarding 
the Grants.gov registration process.
2. Instructions on How To Download an Application Package and 
Application Instructions
    a. The Application Package and Application Instructions. The 
general process for downloading, completing, submitting, and tracking 
grant application packages is described at http://www.grants.gov/applicants/apply_for_grants.jsp. See Section IV.B. of the General 
Section for additional information on this topic.
3. Instructions on How To Complete the Selected Grant Application 
Package
    See Section IV.B. of the General Section for detailed information 
on this topic.
4. Application Submission
    a. Paper Application Submissions. HUD's regulations allow for a 
waiver of the electronic submission requirement for cause. If your 
organization is granted a waiver, you should follow the instructions 
below regarding paper application submissions. Unless otherwise 
indicated, the executive director of the applicant PHA, or his or her 
designee, must sign each form or certification that is required to be 
submitted with the application, whether part of an attachment or a 
standard certification; signatures need not be original in the 
duplicate Headquarters copy and the duplicate field office copy.
    b. Application Layout. These criteria apply to all applicants, 
unless otherwise noted.
    (1) Double-space your narrative pages. Single-spaced pages will be 
counted as two pages;
    (2) Use 8\1/2\ x 11-inch paper (one side only, if you receive a 
waiver of the electronic submission). Only the city map may be 
submitted on an 8\1/2\ by 14-inch sheet of paper. Larger pages will be 
counted as two pages;
    (3) All margins should be approximately one inch. If any margin is 
smaller than \1/2\ inch, the page will be counted as two pages;
    (4) Use 12-point, Times New Roman font;
    (5) Any pages marked as sub-pages (e.g., with numbers and letters 
such as 75A, 75B, 75C), will be treated as separate pages;
    (6) If a section is not applicable, indicate n/a;
    (7) Mark each Exhibit and Attachment with the appropriate tab/title 
page, as listed below. No material on the tab/title page will be 
considered for review purposes;
    (8) No more than one page of text may be placed on one sheet of 
paper; i.e., you may not shrink pages to get two or more on a page. 
Shrunken pages, or pages where a minimized/reduced font are used, will 
be counted as multiple pages;

[[Page 41840]]

    (9) Do not format your narrative in columns. Pages with text in 
columns will be counted as two pages;
    (10) If you are granted a waiver from the electronic submission 
requirement: The applications (copy and original) should each be 
packaged in a three-ring binder; and
    (11) Narrative pages must be numbered. HUD recommends that 
applicants consecutively number the pages of the Attachments section to 
ensure proper assembly of their application if submitted 
electronically.
    c. Application Page Count. These criteria apply to all applicants.
    (1) Narrative Exhibits.
    (a) The first part of your application will be comprised of 
narrative exhibits. Your narratives will respond to each rating factor 
in the NOFA and will also respond to threshold requirements. Among 
other things, your narratives must describe your overall planning 
activities, including, but not limited to, relocation, community, and 
supportive services, and development issues.
    (b) Each HOPE VI Revitalization application must contain no more 
than 100 pages of narrative exhibits. Any pages after the first 100 
pages of narrative exhibits will not be reviewed. Although submitting 
pages in excess of the page limitations will not disqualify an 
application, HUD will not consider the information on any excess pages, 
which may result in a lower score or failure of a threshold. Text 
submitted at the request of HUD to correct a technical deficiency will 
not be counted in the 100-page limit.
    (2) Attachments.
    (a) The second part of your application will be comprised of 
Attachments. These documents will also respond to the rating factors in 
the NOFA, as well as threshold and mandatory documentation 
requirements. They will include documents such as maps, photographs, 
letters of commitment, application data forms, various certifications 
unique to HOPE VI Revitalization, and other certifications.
    (b) Each HOPE VI Revitalization application must contain no more 
than 125 pages of attachments. Any pages after the first 125 pages of 
attachments will not be considered. Although submitting pages in excess 
of the page limit will not disqualify an application, HUD will not 
consider the information on any excess pages, which may result in a 
lower score or failure to meet a threshold.
    (3) Exceptions to page limits. The documents listed below 
constitute the only exceptions and are not counted in the page limits 
listed in Sections (1) and (2) above:
    (a) Additional pages submitted at the request of HUD in response to 
a technical deficiency.
    (b) Attachments that provide documentation of commitments from 
Development, CSS, Collateral, and Anticipatory resource providers 
(Attachments 19-22).
    (c) Attachments that provide documentation of site control and site 
acquisition, in accordance with Section III of this NOFA (Attachment 
18).
    (d) Narratives and Attachments, as relevant, required to be 
submitted only by existing HOPE VI Revitalization grantees, in 
accordance with Sections V.A. of this NOFA (Capacity).
    (e) Information required of MTW applicants only.
    (f) Standard forms (Attachment 33).
    (g) Blank/extra pages generated as part of standard forms.
    (h) Tabs/title pages that are blank or display a title/header.
    d. Electronic Submissions: Additional Format and Title 
Instructions.
    (1) Exhibits. Exhibits are as listed below in Section IV.B.6. of 
this NOFA. Each Exhibit should be contained in a separate file and 
section of the application. Each file should contain one title page. Do 
not create title pages separately from the document it goes with.
    (a) Exhibit Title Pages. HUD will use title pages as tabs when it 
downloads and prints the application. Provided the information on the 
title page is limited to the list in Section (b) below, the title pages 
will not be counted when HUD determines the length of each Exhibit, or 
the overall length of the Exhibits.
    (i) Each title page should only contain:
    (A) The name of the Exhibit, as described below in section IV.B.6. 
of this NOFA, e.g., ``Narrative Exhibit A: Summary Information;''
    (B) The name of the applicant; and
    (C) The name of the file that contains the Exhibit.
    (b) Exhibit File Names and Types.
    (i) All Exhibit files in the application must be contained in one 
Exhibit ZIP file.
    (ii) Each file within the ZIP file must be formatted so it can be 
read by Microsoft Word (.doc (version 9)).
    (iii) Each file name must include the information below, in the 
order stated:
    (A) Short version of the applicant's name, e.g., town, city, 
county/parish, etc., and state; and
    (B) The word ``Exhibit'' and the Exhibit letter (A through I), as 
listed in section IV.B.6. of this NOFA;
    (C) An example of an Exhibit file name is, ``Atlanta GA Exhibit 
A.''
    (2) Attachments. Attachments are as listed below in section IV.B.6. 
of this NOFA. Each Attachment should be contained in a separate file 
and section of the application. Each Attachment that is not a HUD form 
should contain one title page.
    (a) Attachment Title Pages. HUD will use title pages as tabs if it 
downloads and prints the application. Provided the information on the 
title page is limited to the list in section (b) below, the title pages 
will not be counted when HUD determines the length of each Attachment 
or the overall length of the Attachments. HUD forms do not require 
title pages.
    (i) Each title page should only contain:
    (A) The name of the Attachment, as described below in section 
IV.B.6. of this NOFA, e.g., ``Attachment 10: Extraordinary Site Costs 
Certification;''
    (B) The name of the applicant; and
    (C) The name of the file that contains the Attachment.
    (b) Attachment File Names and Types.
    (i) All Attachments that are not listed separately on grants.gov 
and are formatted as PureEdge forms, e.g., SF-424, must be contained in 
one (or more as needed) Attachment ZIP file.
    (ii) Each file within the ZIP file must be formatted so it can be 
read by Microsoft Word (.doc (version 9)), Microsoft Excel 2000 (.xls), 
or Acrobat (.pdf) format compatible with Adobe Reader 6.0 or later. 
Grants.gov does not accept Vista or Microsoft Office 2007 formats.
    (A) Attachments that are downloaded from grants.gov in MS Excel 
format may be submitted in Excel format.
    (B) Attachments that are downloaded from grants.gov in text format, 
e.g., certifications, should be submitted in Adobe Acrobat (.pdf) 
format.
    (C) Third-party documents, e.g., leverage commitment letters, 
pictures, etc., should be scanned and attached to your electronic 
application in Adobe Acrobat (.pdf) format or may be submitted via 
facsimile using form HUD-96011, Third Party Documentation Facsimile 
Transmittal (``Facsimile Transmittal Form'' on Grants.gov). Also:
    (iii) Each file name must include the information below, in the 
following order:
    (A) A short version of the applicant's name, e.g., the town, city, 
county/parish, etc., and state; and
    (B) The word ``Attachment'' and the Attachment number, as listed in 
section IV.B.6. of this NOFA;
    (C) An example of an Exhibit file name is, ``Atlanta GA Attachment 
1.''
    5. Documentation requirements are provided in the ``Threshold

[[Page 41841]]

Requirements'' section (Section III.C.2.), ``Program Requirements'' 
section (Section III.C.3), and ``Rating Factors'' section (Section V.A) 
of this NOFA. Applicants must carefully review and follow documentation 
requirements.
    6. Application Content. The following is a list of narrative 
exhibits, attachments, and instructions for each, that are required as 
part of the application. Non-submission of these items may lower your 
rating score or make you ineligible for award under this NOFA. Review 
the threshold requirements in section III.C. and the Rating Factors of 
section V.A. to ascertain the effects of non-submission. HUD forms 
required by this NOFA are included in the electronic application at 
http://www.grants.gov/applicants/apply_for_grants.jsp. Applicants 
that are granted a waiver to the electronic submission requirement must 
include the narrative exhibits and attachments in the application in 
the order listed below. Here is the order for the Table of Contents and 
the order in which paper applications must be submitted, if you are 
granted a waiver to the electronic application submission requirement:
    (1) Acknowledgment of Application Receipt, form HUD-2993 (applies 
only if you are granted a waiver to the electronic submission 
requirement);
    (2) Application for Federal Assistance, Standard Form SF-424; and
    (3) HOPE VI Revitalization Application Table of Contents.
a. Narrative Exhibits
    (1) Narrative Exhibit A: Summary Information
    (2) Narrative Exhibit B: Capacity
    (3) Narrative Exhibit C: Need
    (4) Narrative Exhibit D: Resident and Community Involvement
    (5) Narrative Exhibit E: Community and Supportive Services
    (6) Narrative Exhibit F: Relocation
    (7) Narrative Exhibit G: Fair Housing and Equal Opportunity
    (8) Narrative Exhibit H: Well-Functioning Communities
    (9) Narrative Exhibit I: Soundness of Approach
b. Attachments
    (1) Attachments 1 through 7: HOPE VI Application Data Form, form 
HUD-52860-A
    (2) Attachment 8: HOPE VI Budget, form HUD-52825-A
    (3) Attachment 9: TDC-Grant Limitations Worksheet, form HUD-52799
    (4) Attachment 10: Extraordinary Site Costs Certification, if 
applicable
    (5) Attachment 11: City Map
    (6) Attachment 12: Assurances for a HOPE VI Application: for 
Developer, HOPE VI Revitalization Resident Training & Public Meeting 
Certification, Relocation Plan (whether relocation is completed or is 
yet to be completed)
    (7) Attachment 13: Program Schedule
    (8) Attachment 14: Certification of Severe Physical Distress
    (9) Attachment 15: Photographs of the Severely Distressed Housing
    (10) Attachment 16: Neighborhood Conditions
    (11) Attachment 17: Preliminary Market Assessment Letter, if 
relevant
    (12) Attachment 18: Documentation of Site Control for Off-Site 
Public Housing
    (13) Attachments 19 through 22: HOPE VI Revitalization Leverage 
Resources, form HUD-52797
    (14) Attachment 23: Documentation of Environmental, and 
Neighborhood Standards
    (15) Attachment 24: Land Use Certification or Documentation
    (16) Attachment 25: Evaluation Commitment Letter(s)
    (17) Attachment 26: Current Site Plan
    (18) Attachment 27: Photographs of Architecture in the Surrounding 
Community
    (19) Attachment 28: Conceptual Site Plan
    (20) Attachment 29: Conceptual Building Elevations
    (21) Attachment 30: HOPE VI Revitalization Application 
Certifications
    (22) Attachment 31: HOPE VI Revitalization Project Readiness 
Certification, form HUD-52787
    (23) Attachment 32: Capital Fund Financing Program Threshold: Legal 
Counsel Opinion and Executive Director Certification, if applicable
    (24) Attachment 33: Standard Forms and Certifications
    (a) Application for Federal Assistance (SF-424);
    (b) Acknowledgment of Application Receipt (form HUD-2993), 
applicable ONLY if the applicant obtains a waiver from the electronic 
submission requirement;
    (c) Disclosure of Lobbying Activities (SF-LLL), if applicable;
    (d) Applicant/Recipient Disclosure/Update Report (form HUD-2880) 
(``HUD Applicant Recipient Disclosure Report'' on Grants.gov);
    (e) Program Outcome Logic Model (form HUD-96010);
    (f) America's Affordable Communities Initiative (form HUD-27300) 
(and supporting documentation);
    (g) If applicable, Funding Application for Housing Choice Voucher 
Assistance prepared in accordance with Notice PIH 2007-10 (and any 
reinstatement of or successor to that Notice), including the Section 8 
Tenant-Based Assistance Rental Certificate Program and the Rental 
Voucher Program, form HUD-52515;
    (h) form HUD-96011, ``Third Party Documentation Facsimile 
Transmittal'' (``Facsimile Transmittal Form'' on Grants.gov), if 
applicable.
    Further Documentation Guidance on Narrative Exhibits and 
Attachments. Please be sure to carefully review sections III, IV, and V 
for program and documentation requirements for all the elements below.
    a. Exhibit A. Verify that you have included information relating to 
the following exhibits.
    (1) Executive Summary. Provide an Executive Summary, not to exceed 
three pages. Describe your Revitalization plan, as clearly and 
thoroughly as possible. Do not argue for the need for the HOPE VI 
grant, but explain what you would do if you received such a grant. 
Briefly describe why the targeted project is severely distressed, 
provide the number of units, and indicate how many of the units are 
occupied. Describe specific plans for the revitalization of the site. 
Include income mix, basic features (such as restoration of streets), 
and any mixed use or non-housing components. If you are proposing off-
site replacement housing, provide the number and type of units and 
describe the off-site locations. Describe any homeownership components 
included in your Plan, including the numbers of units. Briefly 
summarize your plans for community and supportive services. State the 
amount of HOPE VI funds you are requesting and list the other major 
funding sources you will use for your mixed-finance development. 
Identify whether you have procured a developer or whether you will act 
as your own developer.
    (2) Physical Plan. Describe your planned physical revitalization 
activities:
    (a) Rehabilitation of severely distressed public housing units, in 
accordance with sections I(C) and III(C) of the NOFA;
    (b) Development of public housing replacement rental housing, both 
on-site and off-site, in accordance with sections I(C) and III(C) of 
the NOFA;
    (c) Indicate whether you plan to use PATH technologies and Energy 
Star in the construction of replacement housing, in accordance with 
section III(C) of the NOFA;
    (d) Market rate housing units (see sections III(C));
    (e) Units to be financed with low-income housing tax credits;
    (f) Replacement homeownership assistance for displaced public 
housing residents or other public housing-

[[Page 41842]]

eligible low-income families, in accordance with sections I(C) and 
III(C) of the NOFA. Also describe any market-rate homeownership units 
planned, sources, and uses of funds. Describe the relationship between 
the HOPE VI activities and costs and the development of homeownership 
units, both public housing and market rate. If you are selected for 
funding, you will be required to submit a Homeownership Proposal 
(homeownership term sheet);
    (g) Rehabilitation or new construction of community facilities 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the targeted development and 
residents of off-site replacement housing, in accordance with sections 
I(C) and III(C). Describe the type and amount of such space and how the 
facilities will be used in CSS program delivery or other activities;
    (h) Zoning, land acquisition, and infrastructure and site 
improvements. Note that HOPE VI grant funds may not be used to pay hard 
development costs or to buy equipment for retail or commercial 
facilities;
    (3) Hazard Reduction. Review sections I(C), III(C), and IV(E) of 
the NOFA. For units to be rehabilitated or demolished, describe the 
extent of any required abatement of environmentally hazardous materials 
such as asbestos.
    (4) Demolition. Review sections I(C) and III(C) of the NOFA. 
Describe your plans for demolition, including the buildings (dwelling 
and non-dwelling units) proposed to be demolished, the purpose of the 
demolition, and the use of the site after demolition. If the proposed 
demolition was previously approved as a section 18 demolition 
application, state the date the section 18 demolition application was 
submitted to HUD and the date it was approved by HUD. Indicate whether 
you plan to implement the concept of Deconstruction, as described in 
section III(C) of the NOFA.
    (5) Disposition. Review sections I(C) and III(C) of the NOFA. 
Describe the extent of any planned disposition of any portion of the 
site. Cite the number of units or acreage to be disposed, the method of 
disposition (sale, lease, trade), and the status of any disposition 
application made to HUD.
    (6) Site Improvements. Review sections I(C), III(C), and IV(E) of 
the NOFA. Describe any proposed on-site improvements, including 
infrastructure requirements, changes in streets, etc. Describe all 
public improvements needed to ensure the viability of the proposed 
project with a narrative description of the sources of funds available 
to carry out such improvements.
    (7) Site Conditions. Review sections I(C), III(C), and IV(E) of the 
NOFA. Describe the conditions of the site to be used for replacement 
housing. Listing all potential contamination or danger sources (e.g., 
smells, fire, heat, explosion, and noise) that might be hazardous or 
cause discomfort to residents, PHA personnel, or construction workers. 
List potential danger sources, including commercial and industrial 
facilities, brownfields and other sites with potentially contaminated 
soil, commercial airports, and military airfields. Note any facilities 
and/or activities within one mile of the proposed site.
    (8) Separability. See Section III(C) of the NOFA. If applicable, 
address the separability of the revitalized building(s) within the 
targeted project. This is a threshold.
    (9) Proximity. If applicable, describe how two contiguous projects 
meet the requirement of section III(C) of the NOFA, or how scattered 
sites meet the requirements of section III(C) of the NOFA.
    b. Exhibit B. Capacity. Verify that you have included information 
relating to the following exhibits:
    (1) PHAS, Maintenance, and SEMAP. Respond to the Rating Factors at 
V(A)(1)(g), V(A)(1)(h), and V(A)(1)(i) of the NOFA.
    (2) Development Capacity of Developer. Respond to Rating Factor 
V(A)(1)(a).
    (3) Development Capacity of Applicant. Respond to Rating Factor 
V(A)(1)(b).
    (4) Capacity of Existing HOPE VI Revitalization grantees. Respond 
to Rating Factor V(A)(1)(c) of the NOFA. This rating factor applies 
only to PHAs with existing HOPE VI Revitalization grants from FYs 1993 
to 2003. Expenditure information will be taken from Line of Credit 
Control System (LOCCS) as of the application deadline date.
    (5) CSS Program Capacity. Respond to Rating Factor V(A)(1)(d) of 
the NOFA.
    (6) Property Management Capacity. Respond to Rating Factor 
V(A)(1)(e) of the NOFA.
    (7) PHA or MTW Plan. Respond to Rating Factor V(A)(1)(f) of the 
NOFA.
    c. Exhibit C. Need. Verify that you have included information 
relating to the following:
    (1) Need for Revitalization: Severe Physical Distress of the Public 
Housing Site. Respond to Rating Factor V(A)(2)(a) of the NOFA.
    (2) Need for Revitalization: Impact of the Severely Distressed Site 
on the Surrounding Neighborhood. Respond to Rating Factor V(A)(2)(b) of 
the NOFA.
    (3) Need for HOPE VI Funding (Obligation of Capital Funds). Respond 
to Rating Factor V(A)(2)(c) of the NOFA.
    (4) Previously Funded Sites. Respond to section III(C)(2) of the 
NOFA. This is a threshold requirement.
    (5) Need for Affordable, Accessible Housing in the Community. 
Respond to Rating Factor V(A)(2)(d) of the NOFA.
    (6) Need for Affordable Accessible Housing in the Nation. Respond 
to Rating Factor V(A)(2)(e) of the NOFA.
    d. Exhibit D. Resident and Community Involvement. Verify that you 
have included information relating to the following. Discuss your 
communications about your development plan and HUD communications with 
residents, community members, and other interested parties. Include the 
resident training attachment. Review program requirements in section 
III and respond to Rating Factor V(A)(4).
    e. Exhibit E. Community and Supportive Services. Respond to section 
V(A)(5). Verify that you have included information relating to the 
following: Endowment Trust. If you plan to place CSS funds in an 
Endowment Trust, review section III(C) and section V(A)(5), and state 
the dollar amount and percentage of the entire grant that you plan to 
place in the Trust.
    f. Exhibit F. Relocation. Verify that you have included information 
relating to the following:
    (1) Housing Choice Voucher (HCV) Needs. Review section III(C) and 
V(A)(6) of the NOFA. State the number of HCVs that will be required for 
relocation if this HOPE VI application is approved, both in total and 
the number needed for FY 2007. Indicate the number of units and the 
bedroom breakout. Applicants must prepare their HCV assistance 
applications for the targeted project in accordance with the 
requirements of Notice PIH 2007-10 (and any reinstatement of or 
successor to that Notice) and submit it in its entirety with the HOPE 
VI Revitalization Application (not just form HUD 52515). This 
application should be placed at the back of the application with the 
other Standard Forms and Certifications. HUD will process the HCV 
assistance applications for funded HOPE VI applicants.
    (2) Relocation Plan. Review sections III(C)(2) and III(C)(3) of the 
NOFA and respond to Rating Factor V(A)(6). For additional guidance, 
refer to Handbook 1378 and form HUD-52774.
    g. Exhibit G. Fair Housing and Equal Opportunity. Verify that you 
have

[[Page 41843]]

included information relating to the following:
    (1) Accessibility. Respond to Rating Factor V(A)(7)(a)(1).
    (2) Universal Design. Respond to Rating Factor V(A)(7)(a)(2).
    (3) Fair Housing. Respond to Rating Factor V(A)(7)(b).
    (4) Section 3. Respond to Rating Factor V(A)(7)(c).
    h. Exhibit H. Verify that you have included information relating to 
the following:
    (1) Unit Mix and Need for Affordable Housing. Respond to Rating 
Factor V(A)(8)(a);
    (2) Off-Site Housing. Respond to Rating Factor V(A)(8)(b); and
    (3) Homeownership Housing. Respond to Rating Factor V(A)(8)(c).
    i. Exhibit I. Verify that you have included information relating to 
the following:
    (1) Appropriateness of Proposal. Respond to the threshold 
requirement in section III(C)(2).
    (2) Appropriateness and Feasibility of the Plan. Respond to Rating 
Factor V(A)(9)(b);
    (3) Neighborhood Impact and Sustainability of the Plan. Respond to 
Rating Factor V(A)(9)(c);
    (4) Project Readiness. Respond to Rating Factor V(A)(9)(d) by 
completing the certification form provided;
    (5) Program Schedule. Respond to Rating Factor V(A)(9)(e);
    (6) Design. Describe the features of your proposed design and 
respond to Rating Factor V(A)(9)(f);
    (7) Energy Star. Respond to Rating Factor V(A)(9)(g); and
    (8) Evaluation. Respond to Rating Factor V(A)(9)(h).
    j. Attachments 1 through 7. These attachments are required in all 
applications. For instruction on how to fill out Attachments 1 through 
7, see Appendix 1, Instructions for the HOPE VI Application Data Forms.
    k. Attachment 8. This attachment is required in all applications. 
In addition to the instructions included in the HOPE VI Budget form, 
general guidance on preparing a HOPE VI budget can be found on the 
Grant Administration page of the HOPE VI Web site, http://www.hud.gov/offices/pih/programs/ph/hope6/.
    l. Attachment 9. Form HUD-52799, ``TDC/Grant Limitations 
Worksheet.'' This attachment is required in all applications. The Excel 
workbook will assist you in determining your TDC limits required in 
section IV.E.
    m. Attachment 10. Extraordinary Site Costs Certification. This 
attachment is applicable only if you request funds to pay for 
extraordinary site costs, outside the TDC limits. See section IV.E.
    n. Attachment 11. City Map. This attachment is required in all 
applications. Review section III(C). Provide a to-scale city map that 
clearly identifies the following in the context of existing city 
streets, the central business district, other key city sites, and 
census tracts:
    (1) the existing development;
    (2) replacement neighborhoods, if available;
    (3) off-site properties to be acquired, if any;
    (4) the location of the federally designated Empowerment Zone or 
Enterprise Community (if applicable); and
    (5) other useful information to place the project in the context of 
the city, county/parish, or municipality, and other revitalization 
activity underway or planned.
    If you request funds for more than one project or for scattered 
site housing, the map must clearly show that the application meets the 
NOFA's site and unit requirements. If you have received a waiver from 
the electronic submission requirement, this map may be submitted on 
8\1/2\'' by 14'' paper.
    o. Attachment 12. Assurances for a HOPE VI Application: for 
Developer, HOPE VI Revitalization Resident Training and Public Meeting 
Certification, and Relocation Plan (whether relocation is completed or 
is yet to be completed). Please complete this assurance document. Do 
not sign; a signature is not required.
    p. Attachment 13. Program Schedule. Review Rating Factor V.A.9.e.
    q. Attachment 14. Certification of Severe Physical Distress. This 
attachment is required in all applications. In accordance with sections 
I(C) and III(C)(2) and (3), an engineer or architect must complete 
Attachment 14. No backup documentation is required for this 
certification.
    r. Attachment 15. Photographs of the Severely Distressed Housing. 
This attachment is required in all applications. Review Rating Factor 
V(A)(2)(a). Submit photographs of the targeted severely distressed 
public housing that illustrate the extent of physical distress.
    s. Attachment 16. Neighborhood Conditions. This attachment is 
required in all applications. Submit documentation described in Rating 
Factor V(A)(2)(b). Documentation may include crime statistics, 
photographs or renderings, socio-economic data, trends in property 
values, evidence of property deterioration and abandonment, evidence of 
underutilization of surrounding properties, and other indications of 
neighborhood distress and/or disinvestment.
    t. Attachment 17. Preliminary Market Assessment Letter, if 
relevant. This is applicable if you include market rate housing in your 
application, in accordance with section V.9., Soundness of Approach.
    u. Attachment 18. Documentation of Site Control for Off-Site Public 
Housing. This is applicable if your plan includes off-site housing or 
other development. If applicable, provide evidence of site control for 
rental replacement units or land, in accordance with section III(C)(2). 
See section IV(B) for documentation requirements. You must include a 
cover sheet with your documented evidence of site control in the 
Attachments section. This cover sheet must provide a table that matches 
the off-site parcels proposed in your application for housing 
development to the corresponding documented evidence of site control 
for those parcels. Specifically, this table should provide in one 
column the name of each parcel, as identified in your application. A 
second column should contain the name of the documented evidence 
corresponding to each parcel. A third column should provide the 
location of the documented evidence in the attachment (page number, 
etc.) and any other necessary detail about the evidence. If more than 
one unit will be built on a parcel, this must also be identified in the 
table. The purpose of this table is to aid reviewers' ability to 
determine whether your application complies with this threshold. 
Accordingly, applicants should provide site control information as 
clearly and consistently as possible.
    v. Attachments 19 through 22. HOPE VI Revitalization Leverage 
Resources, form HUD-52797. These attachments are included in form HUD-
52797, ``HOPE VI Revitalization Leverage Resources'' and are required 
in all applications.
    (1) Physical Development Resources. In accordance with Rating 
Factor V(A)(3)(b), complete Attachment 19, as provided in the 
application, by entering the dollar value of each resource that will be 
used for physical development. For each resource entered, you must 
submit backup documentation in Attachment 19. See section III.C, 
``Program Requirements'' and ``Program Requirements that Apply to Match 
and Leverage'' for resource and documentation requirements.
    (2) CSS Resources. In accordance with Rating Factor V(A)(3)(c), 
complete this Attachment 20, as provided in the application, by 
entering the dollar value of all resources that will be used for CSS

[[Page 41844]]

activities. For each resource entered, submit backup documentation in 
Attachment 20. See section III.C, ``Program Requirements'' and 
``Program Requirements that Apply to Match and Leverage'' for resource 
and documentation requirements.
    (3) Anticipatory Resources. Complete Attachment 21, as provided in 
the Application, by entering the dollar value of all anticipatory 
resources as described in Rating Factor V(A)(3)(d). For each resource 
entered, submit backup documentation in Attachment 21. See section 
III.C, ``Program Requirements'' and ``Program Requirements that Apply 
to Match and Leverage'' for resource and documentation requirements.
    (4) Collateral Resources. Complete Attachment 22, as provided in 
the Application, by entering the dollar value of all collateral 
resources as described in Rating Factor V(A)(3)(e). For each resource 
entered, submit backup documentation behind Attachment 22. See section 
III.C, ``Program Requirements'' and ``Program Requirements that Apply 
to Match and Leverage'' for resource and documentation requirements.
    w. Attachment 23. Documentation of Environmental, and Neighborhood 
Standards. This is applicable if your plan includes off-site housing or 
other off-site development. Provide a certification that the site(s) 
acquired for off-site public housing meet environmental and site and 
neighborhood standards, as provided in section V(A)(8)(b)(2). This 
certification may be in the form of a letter.
    x. Attachment 24. Land Use Certification or Documentation. Complete 
this certification in accordance with the land use threshold in section 
III(C)(2). This attachment may be a certification or copies of the 
actual land use documentation. The certification may be in the form of 
a letter.
    y. Attachment 25. Evaluation Commitment Letter(s). This attachment 
is required in all applications. Review section V(A)(9)(h) and provide 
the requested commitment letter(s) that addresses the indicated 
evaluation areas.
    z. Attachment 26. Current Site Plan. This attachment is required in 
all applications. The Site Plan shows the targeted public housing 
site's various buildings and identifies which buildings are to be 
rehabilitated, demolished, or disposed of. Demolished buildings should 
be shown and labeled as such.
    aa. Attachment 27. Photographs of Architecture in the Surrounding 
Community. This attachment is required in all applications. Provide 
photographs to demonstrate that your plan conforms to the Design 
requirements of section III.C.3. and Rating Factor V(A)(9)(f).
    bb. Attachment 28. Conceptual Site Plan. This attachment is 
required in all applications. The Conceptual Site Plan indicates where 
your plan's proposed construction and rehabilitation activities will 
take place and any planned acquisition of adjacent property and/or 
buildings. Review the design requirements of section III.C.3. and 
Rating Factor V(A)(9)(f).
    cc. Attachment 29. Conceptual Building Elevations. This attachment 
is required in all applications. Review the design requirements of 
section III.C.3. and Rating Factor V(A)(9)(f). Include building 
elevation drawings for the various types of your proposed housing.
    dd. Attachment 30. HOPE VI Revitalization Application 
Certifications. This attachment is required in all applications. This 
form is contained in the electronic application at http://www.grants.gov/applicants/apply_for_grants.jsp. Note that these 
certifications (four page document) must be signed by the chairman of 
the board of the PHA, NOT the executive director.
    ee. Attachment 31. HOPE VI Revitalization Project Readiness 
Certification, form HUD-52787. This attachment is required in all 
applications. Complete Attachment 31 by indicating which of the items 
in Rating Factor V(A)(9)(d) of the NOFA have been completed.
    ff. Attachment 32. Capital Fund Financing Program Threshold: Legal 
Counsel Opinion and Executive Director Certification, if applicable. 
Review the CFFP threshold requirement in section III.C. and provide an 
opinion from your legal counsel and certification from the executive 
director, if applicable.
    gg. Attachment 33. Standard Forms and Certifications.
    (a) Application for Federal Assistance (SF-424). Note: Applicants 
must enter their legal name in box 8.a. of the SF-424 as it appears in 
the Central Contractor Register (CCR). See the General Section 
regarding CCR registration. This form will be placed at the front of 
your application;
    (b) Acknowledgment of Application Receipt (form HUD-2993), which is 
applicable ONLY if the applicant obtains a waiver from the electronic 
submission requirement; this will be placed at the front of your 
application;
    (c) Disclosure of Lobbying Activities (SF-LLL), if applicable;
    (d) Applicant/Recipient Disclosure/Update Report (form HUD-2880) 
(``HUD Applicant Recipient Disclosure Report'' on Grants.gov);
    (e) Program Outcome Logic Model (form HUD-96010);
    (f) America's Affordable Communities Initiative (form HUD-27300) 
and supporting documentation;
    (g) If applicable, Funding Application for Housing Choice Voucher 
Assistance prepared in accordance with Notice PIH 2007-10 (and any 
reinstatement of or successor to that Notice), including Section 8 
Tenant-Based Assistance Rental Certificate Program, Rental Voucher 
Program, and form HUD-52515. It is applicable only if you are 
requesting HCVs that are related to your proposed plan. In preparing 
the request for vouchers, applicants must follow PIH Notice 2007-10 and 
any successor notices;
    (h) Form HUD-96011, ``Third Party Documentation Facsimile 
Transmittal'' (``Facsimile Transmittal Form'' on Grants.gov), if 
applicable.

C. Submission Dates and Times

    1. Applications submitted through Grants.gov must be received and 
validated by Grants.gov no later than 11:59:59 p.m. eastern time on the 
application deadline date. Because there are several steps in the 
upload and receipt process, applicants are advised to submit their 
applications at least 48 to 72 hours in advance of the deadline date 
and when the Grants.gov help desk is open, so that any issues can be 
addressed prior to the deadline date and time. HUD recommends uploading 
your application using Internet Explorer or Netscape.
    2. See the General Section for detailed information regarding the 
following topics:
    a. Confirmation of Submission to Grants.gov.
    b. Application Submission Validation Check.
    c. Application Validation and Rejection Notification.
    d. Late applications.

D. Intergovernmental Review/State Points of Contact (SPOC)

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' was issued to foster intergovernmental partnership and 
strengthen federalism by relying on state and local processes for the 
coordination and review of federal financial assistance and direct 
federal development. HUD's implementing regulations are published at 24 
CFR part 52. The executive order allows each state to designate an 
entity to perform a state review function. Applicants can find the 
official listing of State Points of

[[Page 41845]]

Contact (SPOCs) for this review process at http://www.whitehouse.gov/omb/grants/spoc.html. States not listed at that web address have chosen 
not to participate in the intergovernmental review process and, 
therefore, do not have a SPOC. If your state has a SPOC, you should 
contact the SPOC to see if it is interested in reviewing your 
application before submission to HUD.
    Please make sure that you allow ample time for SPOC review when 
developing and submitting your applications. If your state does not 
have a SPOC, you can submit your application directly to HUD using 
Grants.gov.

E. Funding Restrictions

1. Statutory Time Limits
    a. Required Obligation Date. Funds appropriated for the HOPE VI 
program for FY 2007 must be obligated on or before September 30, 2008. 
Any funds that are not obligated by that date will be recaptured by the 
Treasury, and thereafter will not be available for obligation for any 
purpose.
    b. Required Expenditure Date. In accordance with 31 U.S.C. 1552, 
all FY 2007 HOPE VI funds must be expended by September 30, 2013. Any 
funds that are not expended by that date will be cancelled and 
recaptured by the Treasury, and thereafter will not be available for 
obligation or expenditure for any purpose.
2. Ineligible Activities
    a. You may not use HOPE VI Revitalization grant funds to pay for 
any revitalization activities carried out on or before the date of the 
letter announcing the award of the HOPE VI Grant.
    b. Market-Rate Units. HOPE VI funds may not be used to develop 
market-rate units or affordable housing units that do not qualify as 
public housing or homeownership replacement units.
    c. Retail or Commercial Development. HOPE VI funds may not be used 
for hard construction costs related to, or for the purchase of 
equipment for, retail, commercial, or non-public housing office 
facilities.
3. Total Development Cost (TDC)
    a. The ``TDC Limit'' (24 CFR 941.306, Notice PIH 2007-19 (HA), or 
extending Notice) refers to the maximum amount of HUD funding that HUD 
will approve for development of specific public housing and other 
eligible replacement housing units to be developed under a HOPE VI 
Revitalization grant and/or under an Annual Contributions Contract for 
public housing development and modernization of public housing under 
the Capital Fund. The TDC limit applies only to the costs of 
development of public housing that are paid directly with HUD public 
housing funds, including HOPE VI funds; a PHA may exceed the TDC limit 
using non-public housing funds such as CDBG, HOME, low-income housing 
tax credit equity, etc.
    b. The HUD TDC Cost Tables are issued for each calendar year for 
the building type and bedroom distribution for the public housing 
replacement units. When making your TDC calculations, use the TDC 
limits in effect at the time this HOPE VI NOFA is published. TDC 
definitions and limits in the final rule are summarized as follows:
    (1) The total cost of development, which includes relocation costs, 
is limited to the sum of:
    (a) Up to 100 percent of HUD's published TDC limits for the costs 
of demolition and new construction, multiplied by the number of HOPE VI 
public housing replacement units; and
    (b) Ninety percent of the TDC limits, multiplied by the number of 
public housing units after substantial rehabilitation and 
reconfiguration.
    (2) The TDC limit for a project is made up of the following 
components:
    (a) Housing Cost Cap (HCC): HUD's published limit on the use of 
public housing funds for the cost of constructing the public housing 
units, which includes unit hard costs, builder's overhead and profit, 
utilities from the street, finish landscaping, and a hard cost 
contingency. Estimates should take into consideration the Davis-Bacon 
minimum wage rate and other requirements as described in ``Labor 
Standards,'' section III.C. of this NOFA. You may not request HOPE VI 
Revitalization grant funds for units currently under construction.
    (b) Community Renewal (CR): The balance of funds remaining within 
the project's TDC limit after the housing construction costs described 
in (a) above are subtracted from the TDC limit. This is the amount of 
public housing funds available to pay for PHA administration, planning, 
infrastructure and other site improvements, community and economic 
development facilities, acquisition, relocation, demolition, and 
remediation of units to be replaced on-site, and all other development 
costs.
    (3) CSS. You may request an amount not to exceed 15 percent of the 
total HOPE VI grant to pay the costs of CSS activities, as described in 
section III.C. of this NOFA. These costs are in addition to, i.e., 
excluded from, the TDC calculation above.
    (4) Demolition and Site Remediation Costs of Unreplaced On-site 
Units. You may request an amount necessary for demolition and site 
remediation costs of units that will not be replaced on-site. This cost 
is in addition to (i.e., excluded from) the TDC calculation above.
    (5) Extraordinary Site Costs.
    (a) You may request a reasonable amount to pay extraordinary site 
costs, which are construction costs related to unusual pre-existing 
site conditions that are incurred, or anticipated to be incurred. If 
such costs are significantly greater than those typically required for 
similar construction, are verified by an independent, certified 
engineer or architect (see section IV.B. for documentation 
requirements), and are approved by HUD, they may be excluded from the 
TDC calculation above. Extraordinary site costs may be incurred in the 
remediation and demolition of existing property, as well as in the 
development of new and rehabilitated units. Examples of such costs 
include, but are not limited to: Abatement of extraordinary 
environmental site hazards; removal or replacement of extensive 
underground utility systems; extensive rock and soil removal and 
replacement; removal of hazardous underground tanks; work to address 
unusual site conditions such as slopes, terraces, water catchments, 
lakes, etc.; and work to address flood plain and other environmental 
remediation issues. Costs to abate asbestos and lead-based paint from 
structures are normal demolition costs. Extraordinary measures to 
remove lead-based paint that has leached into the soil would constitute 
an extraordinary site cost.
    (b) Extraordinary site costs must be justified and verified by a 
licensed engineer or architect who is not an employee of the PHA or the 
city. The engineer or architect must provide his or her license number 
and state of registration. If this certification is not included in the 
application after the cure period described in section IV.B.4. of the 
General Section, extraordinary site costs will not be allowed in the 
award amount. In that case, the amount of the extraordinary site costs 
included in the application will be subtracted from the grant amount.
4. Cost Control Standards
    See the Cost Control Standards in Section III.C.3.u.
5. Withdrawal of Grant Amounts
    In accordance with section 24(i) of the 1937 Act, if a grantee does 
not proceed within a reasonable timeframe, as described in section 
III.C.3.w.

[[Page 41846]]

(Timeliness of Development Activities) of this NOFA, HUD shall withdraw 
any unobligated grant amounts. HUD shall redistribute any withdrawn 
amounts to one or more other applicants eligible for HOPE VI assistance 
or to one or more other entities capable of proceeding expeditiously in 
the same locality in carrying out the Revitalization plan of the 
original grantee.
F. Other Submission Requirements
    1. Waiver of Electronic Submission Requirement. Applicants 
interested in applying for funding under this NOFA must submit their 
applications electronically or request a waiver from the electronic 
submission process. Waiver requests must be submitted in writing and 
sent via fax (followed in the mail by the original signed request). 
Waiver requests must be submitted (received via fax) no later than 15 
days prior to the application deadline date and should be addressed to 
Ms. Dominique Blom, Deputy Assistant Secretary for Public Housing 
Investments, Department of Housing and Urban Development, 451 Seventh 
Street, SW, Room 4130, Washington, DC 20410, and faxed to the attention 
of Ms. Leigh van Rij at (202) 401-2370. The original version of the 
request must follow in the mail, sent to the above address. If you are 
granted a waiver from the electronic submission process, your 
application must be received by HUD no later than 11:59:59 p.m. eastern 
time on the application deadline date. See the General Section for 
additional information.
    If you are granted a waiver from the electronic application 
submission requirement, your waiver approval will provide the 
information on the number of copies of the application you are required 
to submit and where to submit the application. Paper applications must 
be received in the designated HUD office by the application deadline 
date.
    2. Proof of Timely Submission. All applicants must submit their 
applications via grants.gov http://www.grants.gov/applicants/apply_for_grants.jsp in time for receipt and validation by 11:59:59 p.m. 
eastern time on the application deadline date. Because validation can 
take up to 72 hours, applicants should submit with ample time for the 
process to be completed. Applicants are also advised to submit with 
sufficient time to correct any deficiencies that would prevent the 
acceptance of their application by Grants.gov. (Refer to the General 
Section for specific procedures regarding proof of timely submission of 
applications.)

V. Application Review Information

A. Criteria

1. Rating Factor: Capacity--23 Points Total
a. Capacity of the Development Team--5 Points
    Address this Rating Factor through your narrative. This rating 
factor looks at the capacity of the development team as a whole. The 
term ``your Team'' includes PHA staff who will be involved in HOPE VI 
grant administration, and any alternative management entity that will 
manage the revitalization process and be responsible for meeting 
construction time tables and obligating amounts in a timely manner. 
This includes any developer partners, program managers, property 
managers, subcontractors, consultants, attorneys, financial 
consultants, and other entities or individuals identified and proposed 
to carry out program activities.
    (1) You will receive up to 5 points if your application 
demonstrates that:
    (a) Your developer or other team members have extensive, recent 
(within the last 5 years), and successful experience in the 
redevelopment of public housing, including planning, implementing, and 
managing physical development, financing, leveraging, and partnership 
activities;
    (b) Your developer or other team members have extensive, recent 
(within the last five years), and successful experience in mixed-
finance and mixed-income development, including planning, implementing, 
and managing physical development, financing, leveraging, and 
partnership activities;
    (c) You propose development using low-income tax credits, and your 
developer or other team members have relevant tax credit experience; 
and
    (d) If homeownership, rent-to-own, cooperative ownership, or other 
major development components are proposed, your developer or other team 
member has relevant, successful experience in development, sales, or 
conversion activities.
    (2) You will receive up to 3 points if your developer or other team 
members have some but not extensive experience in the factors described 
above.
    (3) You will receive zero points if your developer or other team 
members do not have the experience described above and the application 
does not demonstrate that it has the capacity to carry out your 
Revitalization plan. You will also receive zero points if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
b. Development Capacity of Applicant--5 Points
    Address this Rating Factor through your narrative. This rating 
factor looks at the development capacity of ONLY the applicant (not 
other members of the development team).
    (1) You will receive up to 5 points if your application 
demonstrates that:
    (a) Separate from your team, you have extensive, recent (within the 
last 5 years), and successful experience in the redevelopment of public 
housing, including planning, implementing, and managing physical 
development, financing, leveraging, and partnership activities;
    (b) Separate from your team, you have extensive, recent (within the 
last 5 years), and successful experience in mixed-finance and mixed-
income development, including planning, implementing, and managing 
physical development, financing, leveraging, and partnership 
activities;
    (c) As relevant, you have identified potential gaps in your current 
staffing in relation to development activities, and you have plans to 
fill such gaps, internally or externally, in a timely manner in order 
to implement successfully your Revitalization plan;
    (d) You have demonstrated that physical development activities will 
proceed as promptly as possible following grant award, and you will be 
able to begin significant construction within 18 months of the award of 
the grant. Applicants must provide a program schedule, developed in 
accordance with the timeframes in section III.C. (Timeliness of 
Development) and V.A.9.e., in order to demonstrate this criterion.
    (1) You will receive up to 3 points if you have some but not 
extensive experience in the factors described above.
    (2) You will receive zero points if you do not have the experience 
described and the application does not demonstrate that it has the 
capacity to carry out your Revitalization plan. You will also receive 
zero points if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
c. Capacity of Existing HOPE VI Revitalization Grantees
    HUD will use data from the Quarterly Reports to evaluate this 
Rating Factor.
    (1) This section applies only to applicants that have received HOPE 
VI Revitalization grants for FYs 1993 to 2003. If an applicant has more 
than one HOPE VI Revitalization grant, each will be rated separately, 
not averaged, and

[[Page 41847]]

the highest deduction will be made. Applicants with HOPE VI 
Revitalization grants only from FY 2004, 2005 or FY 2006, or no 
existing HOPE VI Revitalization grants are not subject to this section.
    (2) As indicated in the following tables, up to 5 points will be 
deducted if a grantee has failed to achieve adequate progress in 
relation to expenditure of HOPE VI Revitalization grant funds. 
Expenditure data will be taken from LOCCS as of the application 
deadline date.

------------------------------------------------------------------------
  Percent of HOPE VI Revitalization grant
              funds Expended                      Points  deducted
------------------------------------------------------------------------
                     Grants Awarded in FY 1993-1999
------------------------------------------------------------------------
Less than 100 Percent.....................  5 Points
------------------------------------------------------------------------
                        Grants Awarded in FY2000
------------------------------------------------------------------------
90-100 Percent............................  0 Points.
------------------------------------------------------------------------
80-89 Percent.............................  1 Point.
75-79 Percent.............................  2 Points.
70-74 Percent.............................  3 Points.
65-69 Percent.............................  4 Points.
Less than 65 Percent......................  5 Points.
------------------------------------------------------------------------
                        Grants Awarded in FY2001
------------------------------------------------------------------------
80-100 Percent............................  0 Points.
70-79 Percent.............................  1 Point.
60-69 Percent.............................  2 Points.
50-59 Percent.............................  3 Points.
40-49 Percent.............................  4 Points.
Less than 40 Percent......................  5 Points.
------------------------------------------------------------------------
                        Grants Awarded in FY2002
------------------------------------------------------------------------
60-100 Percent............................  0 Points.
50-59 Percent.............................  1 Point.
40-49 Percent.............................  2 Points.
30-39 Percent.............................  3 Points.
20-29 Percent.............................  4 Points.
Less than 20 Percent......................  5 Points.
------------------------------------------------------------------------
                        Grants Awarded in FY2003
------------------------------------------------------------------------
25-100 Percent............................  0 Points.
20-24 Percent.............................  1 Point.
15-19 Percent.............................  2 Points.
10-14 Percent.............................  3 Points.
5-9 Percent...............................  4 Points.
Less than 5 Percent.......................  5 Points.
------------------------------------------------------------------------

d. CSS Program Capacity--3 Points
    See sections I. and III. of this NOFA for detailed information on 
CSS activities. Address this Rating Factor through your narrative.
    (1) You will receive 2 points if your application demonstrates one 
of the following. If you fail to demonstrate one of the following, you 
will receive zero points:
    (a) If you propose to carry out your CSS plan in-house and you have 
recent, quantifiable, successful experience in planning, implementing, 
and managing the types of CSS activities proposed in your application, 
or
    (b) If you propose that a member(s) of your team will carry out 
your CSS plan; that this procured team member(s) has the qualifications 
and demonstrated experience to plan, implement, manage, and coordinate 
the types of activities proposed; and that you have the capacity to 
manage that team member, including a plan for promptly hiring staff or 
procuring this team member.
    (2) You will receive 1 point if your application demonstrates that:
    (a) You have an existing HOPE VI grant and your current CSS team 
will be adequate to implement a new program, including new or changing 
programs, without weakening your existing team.
    (b) You do not have an existing HOPE VI Revitalization grant and 
you demonstrate how your proposed CSS team will be adequate to 
implement a new program, including new or changing services, without 
weakening your existing staffing structure.
e. Property Management Capacity--3 Points
    Address this Rating Factor through your narrative.
    (1) Property management activities may be the responsibility of the 
PHA or another member of the team, which may include a separate entity 
that you have procured or will procure to carry out property management 
activities. In your application you will describe the number of units 
and the condition of the units currently managed by you or your 
property manager, your annual budget for those activities, and any 
awards or recognition that you or your property manager have received.
    (2) Past Property Management Experience--2 Points.
    (a) You will receive 2 points if your application demonstrates that 
you or your property manager currently have extensive knowledge and 
recent (within the last 5 years), successful experience in property 
management of the housing types included in your revitalization plan. 
This may include market-rate rental housing, public housing, and other 
affordable housing, including rental units developed with low-income 
housing tax credit assistance. If your Revitalization plan includes 
cooperatively owned housing, rent-to-own units, or other types of 
managed housing, in order to receive the points for this factor, you 
must demonstrate recent, successful experience in the management of 
such housing by the relevant member(s) of your team.
    (b) You will receive one point if your application demonstrates 
that you or your property manager has some but not extensive experience 
of the kind required for your Revitalization plan.
    (c) You will receive zero points if your application does not 
demonstrate that you or your property manager have the experience to 
manage your proposed plan, or if your application does not address this 
factor to an extent that makes HUD's rating of this factor possible.
    (3) Property Management Plan--1 Point.
    (a) You will receive one point if your application describes how 
you or your property manager will administer the following elements of 
a property management plan:
    (i) Property maintenance
    (ii) Rent collection
    (iii) Public and Indian Housing Information Center (PIC) 50058 
reporting
    (iv) Site-based management experience
    (v) Tenant grievances
    (vi) Evictions
    (vii) Occupancy rate
    (viii) Unit turnaround
    (ix) Preventive maintenance
    (x) Work order completion
    (xi) Project-based budgeting
    (xii) Management of homeownership and rent-to-own programs
    (xiii) Energy Audits
    (xiv) Utility/Energy Incentives
    (b) You will receive zero points if your application does not 
describe how you or your property manager will administer all the 
elements of a property management plan as listed above, or if there is 
not sufficient information provided to evaluate this factor.
f. PHA or MTW Plan--1 Point
    (1) You will receive one point if your application demonstrates 
that you have incorporated the revitalization plan described in your 
application into your most recent PHA plan or MTW Annual plan (whether 
approved by HUD or pending approval). In order to qualify as 
``incorporated'' under this factor, your PHA or MTW plan must indicate 
the intent to pursue a HOPE VI Revitalization grant and the public 
housing development for which it is targeted.
    (2) You will receive zero points if you have not incorporated the 
revitalization plan described in your application into your PHA or MTW 
plan, or if your application does not address this factor to an extent 
that makes HUD's rating of this factor possible.
g. Public Housing Assessment System (PHAS)--2 Points
    (1) If you have been rated as an Overall High Performer for your 
most

[[Page 41848]]

recent PHAS review as of the application deadline date, you will 
receive 2 points.
    (2) If you have been rated as an Overall Standard Performer for 
your most recent PHAS review as of the application deadline date, you 
will receive one point.
    (3) If you have been rated as a Troubled Performer that is either 
Troubled in One Area or Overall Troubled as of the application deadline 
date, you will receive zero points.
    (4) For this rating factor, MTW PHA applicants will be rated on 
their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
h. Regular Maintenance--2 Points
    (1) Through PHAS, HUD measures the prevalence of items that need to 
be fixed (defects) in PHAs' public housing developments. PHAs receive a 
report entitled ``Comparison of the Top 20 Observed Defects 
(Projected).'' HUD conducts analyses related to this report. In these 
analyses, HUD separates the regular maintenance projected defects from 
the total projected defects (other categories of defects include 
capital and life threatening/exigent health and safety), applies them 
across all units in the PHA's inventory and develops a rate of defects 
per unit. HUD will compare the PHA's most recent PHAS-projected number 
of regular maintenance defects per unit to the previous projected 
number of regular maintenance defects per unit.
    (a) You will receive 2 points if your projected number of regular 
maintenance defects per unit has improved.
    (b) You will receive zero points if your projected number of 
regular maintenance defects per unit have not improved.
    (2) MTW PHA. For this rating factor, MTW PHA applicants will be 
rated on their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
i. Section 8 Management Assessment Program (SEMAP)--2 Points
    (1) If you have been rated as a High Performer for your most recent 
SEMAP rating as of the application deadline date, you will receive 2 
points.
    (2) If you have been rated as Standard for your most recent SEMAP 
rating as of the application deadline date, you will receive one point.
    (3) If you have been rated as Troubled for your most recent SEMAP 
rating as of the application deadline date, you will receive zero 
points.
    (4) For this rating factor, MTW PHA applicants will be rated on 
their compliance with their MTW Agreements.
    (a) If you are in compliance with your MTW Agreement, you will 
receive 2 points.
    (b) If you are not in compliance with your MTW Agreement, you will 
receive zero points.
2. Rating Factor: Need--20 Points Total
a. Severe Physical Distress of the Public Housing Development--6 Points
    (1) HUD will evaluate the extent of the severe physical distress of 
the targeted public housing development. If the targeted units have 
already been demolished, HUD will evaluate your description of the 
extent of the severe physical distress of the site as of the day the 
demolition application was approved by HUD. You will receive points for 
the following separate subfactors, as indicated.
    (a) You will receive up to 2 points if your application 
demonstrates that there are major deficiencies in the project's 
infrastructure, including roofs, electrical, plumbing, heating and 
cooling, mechanical systems, settlement, and other deficiencies in 
Housing Quality Standards.
    (b) You will receive up to 2 points if your application 
demonstrates that there are major deficiencies in the project site, 
including poor soil conditions, inadequate drainage, deteriorated 
laterals and sewers, and inappropriate topography.
    (c) You will receive up to 2 points if your application 
demonstrates that there are major design deficiencies, including 
inappropriately high population density, room, and unit size and 
configurations; isolation; indefensible space; significant utility 
expenses caused by energy conservation deficiencies that may be 
documented by an energy audit; and inaccessibility for persons with 
disabilities with regard to individual units (less than 5 percent of 
the units are accessible), entranceways, and common areas.
b. Severe Distress of the Surrounding Neighborhood--3 Points
    (1) HUD recognizes that public housing developments that meet the 
criteria of severe distress (as defined in the Definitions section) 
have a negative impact on their surrounding neighborhood. HUD will 
evaluate the extent of the distress existing in the surrounding 
neighborhood, as of the NOFA publication date, in order to identify 
those public housing development neighborhoods in greatest need. HUD 
will evaluate this by looking at physical decline of, and disinvestment 
by, public and private entities in the surrounding neighborhood; crime 
statistics; poverty levels; socio-economic data; trends in property 
values; evidence of property deterioration and abandonment; evidence of 
underutilization of surrounding properties; indications of neighborhood 
disinvestment; and photographs of the surrounding neighborhood. This 
information must be provided by the applicant in their narrative and 
attachments.
    (2) You will receive 3 points if your application demonstrates that 
the surrounding neighborhood has a severe level of distress, based on 
the items above. Every item above must be addressed in order to earn 
full points.
    (3) You will receive 2 points if your application demonstrates the 
surrounding neighborhood has a moderate level of distress, based on the 
items above.
    (4) You will receive zero points if your application does not 
demonstrate that the surrounding neighborhood is distressed, or if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
c. Need for HOPE VI Funding--3 Points
    (1) HUD will evaluate the extent to which you could undertake the 
proposed revitalization activities without a HOPE VI grant. Large 
amounts of available FY 2002 to 2006 Capital Funds (but not Replacement 
Housing Factor funds (RHF)) for purposes of this NOFA indicate that the 
revitalization could be carried out without a HOPE VI grant. Available 
Capital Funds are defined as non-obligated funds that have not been 
earmarked for other purposes in your PHA Plan. Funds earmarked in the 
PHA Plan for uses other than the revitalization proposed in this 
application will not be considered as available. Based on the above 
definition, to determine the amount of available FY 2002 to 2006 
Capital Funds, applicants must indicate in their application the amount 
in the narrative of their application. See section IV.B. of this NOFA 
for documentation requirements.

[[Page 41849]]

    (2) You will receive 3 points if your available Capital Funds 
balance is up to 20 percent of the amount of HOPE VI funds requested.
    (3) You will receive 2 points if your available balance is 21 to 45 
percent of the amount of HOPE VI funds requested.
    (4) You will receive 1 point if your available balance is 46 to 80 
percent of the amount of HOPE VI funds requested.
    (5) You will receive zero points if your available balance is more 
than 80 percent of the amount of HOPE VI funds requested.
d. Need for Affordable Accessible Housing in the Community--3 Points
    (1) Your application must demonstrate the need for other housing 
available and affordable to families receiving tenant-based assistance 
under Section 8 (HCV), as described below and must be the most recent 
information available at the time of the application deadline.
    (2) For purposes of this factor, the need for affordable housing in 
the community will be measured by HCV program utilization rates or 
public housing occupancy rates, whichever of the two reflects the most 
need. In figuring the HCV utilization rate, determine and provide the 
percentage of HCV units out of the total number authorized or the 
percentage of HCV funds expended out of the total amount authorized, 
whichever percentage is higher. In figuring the public housing 
occupancy rate, provide the percentage of units occupied out of the 
total in your federal public housing inventory, excluding the targeted 
public housing site. You should base your calculation only on the 
federal public housing units you manage. You may not exclude units in 
your public housing inventory that are being reserved for relocation 
needs related to other HOPE VI Revitalization grant(s); or units in 
your public housing inventory that are being held vacant for uses 
related to a section 504 voluntary compliance agreement. If you are a 
non-MTW site, you must use information consistent with the Section 
Eight Management Assessment Program (SEMAP) and/or the Public Housing 
Assessment System (PHAS) submissions. If you are an MTW site, and do 
not report into SEMAP and/or PHAS, you must demonstrate your 
utilization and/or occupancy rate using similar methods and information 
sources in order to earn points under this rating factor.
    (3) You will receive 3 points if your application demonstrates that 
the higher of:
    (a) The utilization rate of your HCV program is 97 percent or 
higher; or
    (b) The occupancy rate of your public housing inventory is 97 
percent or higher.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (4) You will receive 2 points if your application demonstrates that 
the higher of:
    (a) The utilization rate of your HCV program is between 95 and 96 
percent; or,
    (b) The occupancy rate of your public housing inventory is between 
95 and 96 percent.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (5) You will receive one point if your application demonstrates 
that the higher of:
    (a) The utilization rate of your HCV program is between 93 and 94 
percent; or
    (b) The occupancy rate of your public housing inventory is between 
93 and 94 percent.
    (c) HUD will use the higher of the two rates to determine your 
score.
    (6) You will receive zero points if both the utilization rate of 
your Housing Choice Voucher program and the occupancy rate of your 
public housing inventory are less than 93 percent.
e. Need for Affordable Housing in the Nation--5 Points Total
    (1) HUD will award 5 points to each application for which the 
targeted public housing development(s) is located in a Gulf Opportunity 
(GO) Zone (either Katrina only, Rita only, or Rita and Katrina). The 
applicant must demonstrate this in their narrative, as certified to via 
the SF-424. This information will be verified by HUD. For more 
information on GO Zones, see http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/index.cfm.
    (2) If the targeted public housing development(s) is not located in 
a Gulf Opportunity Zone, the application will earn zero points for this 
rating factor.
3. Rating Factor: Leveraging--16 Points Total
a. Leverage
    Although related to match, leverage is strictly a rating factor. 
Leverage consists of firm commitments of funds and other resources. HUD 
will rate your application based on the amount of funds and other 
resources that will be leveraged by the HOPE VI grant as a percentage 
of the amount of HOPE VI funds requested. There are four types of 
Leverage: Development and CSS, as described in the ``Program 
Requirements'' in section III.C.3. of this NOFA; Anticipatory and 
Collateral, as described in this rating factor. Each resource may be 
used for only one leverage category. Any resource listed in more than 
one category will be disqualified from all categories. In determining 
Leverage ratios, HUD will include as Leverage the match amounts that 
are required by section III.C.2. of this NOFA. Applicants must follow 
the Program Requirements for Match and Leverage section of section 
III.C.3. of this NOFA when preparing their leverage documentation. If 
leverage sources and amounts are not documented in accordance with 
sections III.C.3., they will not be counted toward your leverage 
amounts.
b. Development Leveraging--7 Points
    For each commitment document, HUD will evaluate the strength of 
commitment and add the amounts that are acceptably documented. HUD will 
then calculate the ratio of the amount of HUD funds requested to the 
amount of funds that HUD deems acceptably documented. HUD will round 
figures to two decimal points, using standard rounding rules. See 
section III.C.3, Program Requirements, and Program Requirements for 
Match and Leverage for resource and documentation requirements. These 
requirements MUST be followed in order to earn points under the 
leverage rating factor.
    (1) You will receive 7 points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS, 
administration, or relocation) to the dollar value of documented, 
committed development resources from other sources is 1:3 or higher.
    (2) You will receive 6 points if the ratio is between 1:2.50 and 
1:2.99
    (3) You will receive 5 points if the ratio is between 1:2.0 and 
1:2.49.
    (4) You will receive 4 Points if the ratio is between 1:1.50 and 
1:1.99.
    (5) You will receive 3 points if the ratio is between 1:1.0 and 
1:1.49.
    (6) You will receive 2 points if the ratio is between 1:0.50 and 
1:0.99.
    (7) You will receive one point if the ratio is between 1:0.25 and 
1:0.49.
    (8) You will receive zero points if the ratio is less than 1:0.25, 
or if your application does not address this factor to an extent that 
makes HUD's rating of this factor possible. You will receive 0 Points 
if your application does not request HOPE VI funds for CSS purposes.
c. CSS Leveraging--5 Points
    See section III.C.3., Program Requirements, Program Requirements 
for Match and Leverage for resource and

[[Page 41850]]

documentation requirements. These requirements MUST be followed in 
order to earn points under the leverage rating factor.
    (1) You will receive 5 points if the ratio of the amount of HOPE VI 
funds requested for CSS activities to the dollar value of documented, 
committed CSS resources leveraged from other sources is 1:2 or higher.
    (2) You will receive 4 points if the ratio is between 1:1.75 and 
1:1.99.
    (3) You will receive 3 points if the ratio is between 1:1.5 and 
1:1.749.
    (4) You will receive 2 points if the ratio is between 1:1.25 and 
1:1.49.
    (5) You will receive one point if the ratio is between 1:1 and 
1:1.249.
    (6) You will receive zero points if the ratio is less than 1:1, or 
if your application does not address this factor to an extent that 
makes HUD's rating of this factor possible. You will receive zero 
points if your application does not request HOPE VI funds for CSS 
purposes.
d. Anticipatory Resources Leveraging--2 Points
    Anticipatory Resources relate to activities that have taken place 
in the past and that were conducted in direct relation to a HOPE VI 
Revitalization grant. In many cases, PHAs, cities, or other entities 
may have carried out revitalization activities (including demolition) 
in previous years in anticipation of your receipt of a HOPE VI 
Revitalization grant. These expenditures, if documented, may be counted 
as leveraged anticipatory resources. They cannot duplicate any other 
type of resource and cannot be counted towards match. Public Housing 
funds other than HOPE VI Revitalization, e.g., HOPE VI Demolition grant 
funds, HOPE VI Neighborhood Networks grant funds, HOPE VI Main Street 
grant funds, and Capital Fund Program, may be included, and will be 
counted, toward your Anticipatory Resources rating below. For 
Anticipatory Resources ratios, ``HOPE VI funds requested for physical 
development activities'' is defined as your total requested amount of 
funds minus your requested CSS, administration amounts, and relocation. 
HUD will presume that your combined CSS, administration, and relocation 
amounts are the total of Budget Line Items 1408 (excluding non-CSS 
Management Improvements), 1410, and 1495 on the form HUD-52825-A, 
``HOPE VI Budget,'' that is included in your application. See section 
III.C.3, Program Requirements, Program Requirements for Match and 
Leverage for resource and documentation requirements. These 
requirements MUST be followed as relevant in order to earn points under 
the leverage rating factor.
    (1) You will receive 2 points if the ratio of the amount of HOPE VI 
funds requested for physical development activities to the amount of 
your documented anticipatory resources is 1:0.1 or higher.
    (2) You will receive zero points if the ratio of the amount of HOPE 
VI funds requested for physical development activities to the amount of 
your documented anticipatory resources is less than 1:0.1.
e. Collateral Investment Leveraging--2 Points
    Collateral investment includes physical redevelopment activities 
that are currently underway, or have yet to begin but are projected to 
be completed before October 1, 2010. The expected completion time must 
be addressed in your application. In order for a leverage source to be 
counted as collateral investment, your application must demonstrate 
that the related activities will directly enhance the new HOPE VI 
community, but will occur whether or not a Revitalization grant is 
awarded to you and the public housing project is revitalized. This 
includes economic or other kinds of development activities that would 
have occurred with or without the anticipation of HOPE VI funds. These 
resources cannot duplicate any other type of resource and cannot be 
counted as match. Examples of collateral investments include local 
schools, libraries, subways, light rail stations, improved roads, day 
care facilities, and medical facilities. See section III.C.3, Program 
Requirements, and Program Requirements for Match and Leverage for 
resource and documentation requirements. These requirements MUST be 
followed as relevant in order to earn points under the leverage rating 
factor.
    (1) You will receive 2 points if the ratio of the amount of HOPE VI 
funds requested for physical development activities (not including CSS 
or administration) to the amount of your documented collateral 
resources is 1:1.0 or higher.
    (2) You will receive zero points if the ratio of the amount of HOPE 
VI funds requested for physical development activities (not including 
CSS or administration) to the amount of your documented collateral 
resources is less than 1:1.0.
4. Rating Factor: Resident and Community Involvement--3 Points Total
a. HUD will evaluate the nature, extent, and quality of the resident 
and community outreach and involvement you have achieved by the time 
your application is submitted, as well as your plans for continued and 
additional outreach and involvement beyond the minimum threshold 
requirements. See section III.C. of this NOFA for Resident and 
Community Involvement requirements.
b. Resident and Community Involvement--3 Points
    You will receive one point for each of the following criteria met 
in your application, which are over and above the threshold 
requirements listed in section III.C. of this NOFA.
    (1) Your application demonstrates that you have communicated 
regularly and significantly with affected residents, state and local 
governments, private service providers, financing entities, developers, 
and other members of the surrounding community about the development of 
your revitalization plan by giving residents and community members 
information about your actions regarding the revitalization plan and 
providing a forum where residents and community members can contribute 
recommendations and opinions with regard to the development and 
implementation of the revitalization plan.
    (2) Your application demonstrates your efforts, past and proposed, 
to make appropriate HUD communications about HOPE VI available to 
affected residents and other interested parties, e.g., a copy of the 
NOFA, computer access to the HUD Web site, etc.
    (3) Your application demonstrates your plans to provide affected 
residents with reasonable training on the general principles of 
development, technical assistance, and capacity building so that they 
may participate meaningfully in the development and implementation 
process.
5. Rating Factor: Community and Supportive Services--12 Points Total
    a. CSS Program Requirements. See section III.C.3. for CSS program 
requirements. In your application, you will describe your CSS plan, 
including any plans to implement a CSS Endowment Trust. Each of the 
following subfactors will be rated separately.
    b. Case Management--2 points.
    (1) You will receive 2 points if your application (including the 
Logic Model) demonstrates that you are already providing case 
management services to

[[Page 41851]]

the targeted residents by this proposal as of the application deadline;
    (2) You will receive one point if your application (including the 
Logic Model) demonstrates that you will be able to provide case 
management within 30 days from the date of the grant award letter so 
that residents who will be relocated have time to participate and 
benefit from CSS activities before leaving the site.
    (3) You will receive zero points if your application (including the 
Logic Model) does not demonstrate either of the above criteria, or if 
your application does not include sufficient information to be able to 
evaluate this factor.
c. Needs Assessment and Results--3 Points
    (1) You will receive 3 points if your application (including the 
Logic Model) demonstrates that a comprehensive resident needs 
assessment has been completed as of the application deadline date and 
that this needs assessment is the basis for the CSS program proposed in 
the application. You must describe and quantify the results of the 
needs assessment.
    (2) You will receive up to 2 points if your application (including 
the Logic Model) demonstrates that a resident needs assessment has been 
completed as of the application deadline date, but does not show that 
the needs assessment was comprehensive and clearly linked to the 
proposed CSS program, and/or does not describe and quantify the results 
of the needs assessment.
    (3) You will receive zero points if your application (including the 
Logic Model) does not demonstrate any of the above criteria, or if your 
application does not include sufficient information to be able to 
evaluate this factor.
d. Transition to Housing Self-Sufficiency--5 Points
    You will receive up to 5 points if you address the methods you will 
use to assist public housing residents in their efforts to transition 
to other affordable and market-rate housing, i.e., to gain ``housing 
self-sufficiency.'' Please see section III(C)(3)(l) for information on 
transition to housing self-sufficiency.
    (1) You will receive up to 5 points if your application (including 
the Logic Model) demonstrates that your CSS program includes and 
addresses all three of the below items. Your CSS Program:
    (a) Provides measurable outcomes for this endeavor;
    (b) Describes in detail how your other CSS and FSS activities 
relate to the transition of public housing residents to housing self-
sufficiency; and
    (c) Specifically addresses the grassroots, community-based and 
faith-based organizations, etc. that will join you in the endeavor.
    (2) You will receive up to 2 points if your application (including 
the Logic Model) demonstrates that your CSS program includes and 
addresses at least two of the above three items (a) through (c) above.
    (3) You will receive zero points if your application (including the 
Logic Model) demonstrates that your CSS Program includes and addresses 
less than two of the above items in (a) through (c) above.
e. Quality and Results Orientation in CSS Program--2 Points
    (1) You will receive 2 points if you have proposed in your 
application (including the Logic Model) a comprehensive, high quality, 
results-oriented CSS program that is based on a case management system 
and that provides services/programs to meet the needs of all residents 
groups (e.g., youth, adult, elderly, disabled) targeted by the 
application. These services/programs may be provided directly or by 
partners. They must be designed to assist residents affected by the 
revitalization in transforming their lives and becoming self-
sufficient, as relevant.
    (2) You will receive up to 1 point if you have proposed in your 
application (including the Logic Model) a CSS program that meets some 
but not all of the criteria in the paragraph above;
    (1) You will receive zero points if your application (including the 
Logic Model) does not demonstrate any of the above criteria, or if your 
application does not include sufficient information to be able to 
evaluate this factor.
6. Rating Factor: Relocation--5 Points Total
    See sections III.C. of this NOFA for Relocation and Relocation Plan 
requirements. For all applicants, whether you have completed, or have 
yet to complete, relocation of all residents of the targeted project, 
your HOPE VI Relocation Plan must include the three goals set out in 
section 24 of the 1937 Act, as described in sections a.(1), a.(2), and 
a.(3) below.
    a. You will receive up to 5 points for this Factor if you describe 
thoroughly how your Relocation Plan:
    (1) Includes a description of specific activities that have 
minimized, or will minimize, permanent displacement of residents of the 
units that will be rehabilitated or demolished in the targeted public 
housing site, provided that those residents wish to remain in or return 
to the revitalized community;
    (2) Includes a description of specific activities that will give 
existing residents priority over other families for future occupancy of 
public housing units in completed HOPE VI Revitalization Development 
projects, or, for existing residents that can afford to live in non-
public housing HOPE VI units, priority for future occupancy of those 
planned units; and
    (3) Includes a description of specific CSS activities that will be 
provided to residents prior to any relocation;
    b. You will receive up to 3 points for this Factor if your 
Relocation Plan complies with some but not all of the criteria above.
    c. You will receive zero points for this Factor if: (1) Your 
Relocation Plan does not comply with any of the requirements above; or 
(2) Your application does not provide sufficient information to 
evaluate this rating factor.
7. Rating Factor: Fair Housing and Equal Opportunity--6 Points Total
a. FHEO Disability Issues--3 Points Total
    (1) Accessibility--2 Points.
    (a) Over and above the accessibility requirements listed in section 
III.C.3. of this NOFA, you will receive 2 points if your application 
demonstrates that you have a detailed plan to:
    (i) Provide accessibility in homeownership units (e.g., setting a 
goal of constructing a percentage of the homeownership units as 
accessible units for persons with mobility impairments; promising to 
work with prospective disabled buyers on modifications to be carried 
out at a buyer's request; exploring design alternatives that result in 
townhouses that are accessible to persons with disabilities);
    (ii) Provide accessible units for all eligible populations ranging 
from one-bedroom units for non-elderly single persons with disabilities 
through units in all bedroom sizes to be provided;
    (iii) Provide for accessibility modifications, where necessary, to 
HCV-assisted units of residents who relocate from the targeted project 
to private or other public housing due to revitalization activities. 
The Department has determined that the costs of such modifications are 
eligible costs under the HOPE VI program;
    (iv) Where playgrounds are planned, propose ways to make them 
accessible to children with disabilities, over and above statutory and 
regulatory requirements; and

[[Page 41852]]

    (v) Where possible, design units with accessible front entrances.
    (b) You will receive one point if your application demonstrates 
that you have a detailed plan to implement from one to four of the 
accessibility priorities stated above, explaining why and how you will 
implement the identified accessibility priorities.
    (c) You will receive zero points if your application does not 
demonstrate that you have a detailed plan that meets the specifications 
above, or if your application does not address this factor to an extent 
that makes HUD's rating of this factor possible.
    (2) Universal Design--1 Point.
    (a) You will receive one point if your application demonstrates 
that you have a specific plan to meet:
    (i) The adaptability standards adopted by HUD at 24 CFR 8.3 that 
apply to those units not otherwise covered by the accessibility 
requirements. Adaptability is the ability of certain elements of a 
dwelling unit, such as kitchen counters, sinks, and grab bars, to be 
added to, raised, lowered, or otherwise altered, to accommodate the 
needs of persons with or without disabilities, or to accommodate the 
needs of persons with different types or degrees of disability. For 
example, the wiring for visible emergency alarms may be installed so 
that a unit can be made ready for occupancy by a hearing-impaired 
person (For information on adaptability, see http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf); and
    (ii) The visitability standards recommended by HUD that apply to 
units not otherwise covered by the accessibility requirements. 
Visitability standards allow a person with mobility impairments access 
into the home, but do not require that all features be made accessible. 
A visitable home also serves persons without disabilities, such as a 
mother pushing a stroller or a person delivering a large appliance. See 
http://www.hud.gov/offices/pih/programs/ph/hope6/pubs/glossary.pdf for 
information on visitability. The two standards of visitability are:
    (A) At least one entrance at grade (no steps), approached by a 
sidewalk; and
    (B) The entrance door and all interior passage doors are at least 2 
feet, 10 inches wide, allowing 32 inches of clear passage space.
    (b) You will receive zero points if your application does not 
demonstrate that you have specific plans to implement both (i) and (ii) 
as specified above, or if your application does not address this factor 
to an extent that makes HUD's rating of this factor possible.
b. Fair Housing and Affirmative Marketing--1 Point Total
    (1) Fair Housing--one point
    (a) You will receive one Point if your application demonstrates 
that:
    (i) You have made and will make specific efforts to attract 
families from all segments of the population on a nondiscriminatory 
basis and with a broad spectrum of incomes to the revitalized site 
through intensive affirmative marketing efforts and how these efforts 
contribute to the deconcentration of low-income neighborhoods;
    (ii) You have made and will make specific efforts to target your 
marketing and outreach activities to those persons and groups least 
likely to know about these housing opportunities, in order to promote 
housing choice and opportunity throughout your jurisdiction and 
contribute to the deconcentration of both minority and low-income 
neighborhoods. In your application, you must describe how your outreach 
and marketing efforts will reach out to persons of different races and 
ethnic groups, families with or without children, persons with 
disabilities and able-bodied persons, and the elderly; and
    (iii) The specific steps you plan to take through your proposed 
activities to affirmatively further fair housing. These steps can 
include, but are not limited to:
    (A) Addressing impediments to fair housing choice relating to your 
operations;
    (B) Working with local jurisdictions to implement their initiatives 
to affirmatively further fair housing;
    (C) Implementing, in accordance with Departmental guidance, 
relocation plans that result in increased housing choice and 
opportunity for residents affected by HOPE VI revitalization activities 
funded under this NOFA;
    (D) Implementing admissions and occupancy policies that are 
nondiscriminatory and help reduce racial and national origin 
concentrations; and
    (E) Initiating other steps to remedy discrimination in housing and 
promote fair housing rights and fair housing choice.
    (b) You will receive zero points if you do not address all of the 
above issues, or if your application does not address this factor to an 
extent that makes HUD's rating of this factor possible.
c. Economic Opportunities for Low- and Very Low-Income Persons (Section 
3)--2 Points
    (1) HOPE VI grantees must comply with section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) (Economic Opportunities 
for Low- and Very-Low-Income Persons in Connection with Assisted 
Projects) and its implementing regulations at 24 CFR part 135. 
Information about section 3 can be found at HUD's section 3 Web site at 
http://www.hud.gov/offices/fheo/section3/section3.cfm.
    (2) You will receive 2 points if your application demonstrates that 
you have a feasible plan to implement section 3 that not only meets the 
minimum requirements described in section (1) above but also exceeds 
those requirements. Your plan must include your goals by age group, 
types of jobs, and other opportunities to be provided, and plans for 
tracking and evaluation. Section 3 firms must be in place quickly so 
that residents are trained in time to take advantage of employment 
opportunities such as jobs and other contractual opportunities in the 
pre-development, demolition, and construction phases of the 
revitalization. Your section 3 plan must demonstrate that you will, to 
the greatest extent feasible, direct training, employment, and other 
economic opportunities to:
    (a) Low- and very low-income persons, particularly those who are 
recipients of government assistance for housing; and
    (b) Business concerns which provide economic opportunities to low- 
and very low-income persons.
    (3) You will receive zero points if your plan to implement section 
3 does not meet the standards listed in section (1) and (2) above, or 
if your application does not address this factor to an extent that 
makes HUD's rating of this factor possible.
8. Rating Factor: Well-Functioning Communities--8 Points Total
a. Affordable Housing--Up to 3 Points
    (1) Housing Definitions. For the purposes of this rating section, 
housing units are defined differently than in PIH housing programs, as 
follows:
    (a)``Project-based affordable housing units'' are defined as on-
site and off-site housing units where there are affordable-housing use 
restrictions on the unit, e.g., public housing, project-based HCV 
(Section 8) units, LIHTC units, HOME units, affordable homeownership 
units, etc.
    (b)``Public housing'' is defined as rental units that will be 
subject to the ACC.
    (2) Unit Mix and Need for Affordable Housing.
    (a) Your proposed unit mix should sustain or create more project-
based

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affordable housing units that will be available to persons eligible for 
public housing in markets where the plan shows there is demand for the 
maintenance or creation of such units. While it is up to you to 
determine the unit mix that is appropriate for your site, it is 
essential that this unit mix include a sufficient amount of public 
housing rental units and other project-based affordable units. To the 
extent that the local market shows there is a demand for it, applicants 
are encouraged to create additional project-based affordable housing 
units to be made available for persons eligible for public housing.
    (b) For purposes of this factor, HUD will determine whether you 
need project-based affordable housing by using your HCV program 
utilization rate or public housing occupancy rate, whichever of the two 
reflects the least need. In figuring the HCV utilization rate, 
determine and provide the percentage of HCV units out of the total 
number authorized or the percentage of HCV funds expended out of the 
total amount authorized, whichever percentage is higher. In figuring 
the public housing occupancy rate, provide the percentage of units 
occupied out of the total in your federal public housing inventory, 
excluding the units in the targeted project. You should base your 
calculation only on the federal public housing units you manage. You 
may not exclude units in your public housing inventory that are being 
reserved for relocation needs related to other HOPE VI Revitalization 
grant(s); or units in your public housing inventory that are being held 
vacant for uses related to a section 504 voluntary compliance 
agreement. If you are a non-MTW site, you must use information 
consistent with the Section Eight Management Assessment Program (SEMAP) 
and/or the Public Housing Assessment System (PHAS) submissions. If you 
are an MTW site, and do not report into SEMAP and/or PHAS, you must 
demonstrate your utilization and/or occupancy rate using similar 
methods and information sources in order to earn points under this 
rating factor.
    (3) Scoring when there will be No Need for More Affordable Housing 
after the Targeted Project is Demolished--1 Point.
    (a) You will receive 1 point for this factor if your application 
demonstrates that either:
    (i) The utilization rate of your HCV program is less than 95 
percent; or
    (ii) The occupancy rate of your public housing inventory is less 
than 95 percent.
    (iii) If either (i) or (ii) above is less than 95 percent, the 
other percentage will be disregarded.
    (4) Scoring when there Will be Need for More Affordable Housing 
after the Targeted Project is Demolished--up to 3 Points.
    (a) For this factor, HUD considers you in need of project-based 
affordable housing if both:
    (i) The utilization rate of your HCV program is 95 percent or more; 
and
    (ii) The occupancy rate of your public housing inventory is 95 
percent or more.
    (iii) If either (i) or (ii) above are less than 95 percent, you do 
not need affordable housing. You qualify for (3) above, not this 
section (4).
    (b) The percentages below are defined as the number of planned 
project-based affordable units divided by the number of public housing 
units that the targeted project contains or contained;
    (c) You will receive 3 points if your application demonstrates that 
the number of project-based affordable units in your plan is 125 
percent or more of the number of public housing units that the targeted 
project contains or contained;
    (d) You will receive 2 points if your application demonstrates that 
the number of project-based affordable units in your plan is 110 to 124 
percent of the number of public housing units that the targeted project 
contains or contained;
    (e) You will receive 1 point if your application demonstrates that 
the number of project-based affordable units in your plan is 100 to 109 
percent of the number of public housing units that the targeted project 
contains or contained.
    (f) You will receive zero points if your application demonstrates 
that the number of project-based affordable units in your plan is less 
than the number of public housing units that the targeted project 
contains or contained or if your application does not address this 
factor to an extent that makes HUD's rating of this factor possible.
b. Off-Site Housing--1 Point
    (1) Factor Background.
    (a) Although not required, you are encouraged to consider 
development of replacement housing in locations other than the original 
severely distressed site (i.e., off-site housing). Locating off-site 
housing in neighborhoods with low levels of poverty and low 
concentrations of minorities will provide maximized housing 
alternatives for low-income residents who are currently on-site and 
advance the goal of creating desegregated, mixed-income communities. 
The effect on-site will be to assist in the deconcentration of low-
income residents and increase the number of replacement units.
    (b) Although it is acknowledged that off-site housing is not 
appropriate in some communities, if you do not propose to include off-
site housing in your Revitalization plan, you are not eligible to 
receive this point.
    (c) If you propose an off-site housing component in your 
application, you must be sure to include that component when you 
discuss other components (e.g., on-site housing, homeownership housing, 
etc.). Throughout your application, your unit counts and other 
numerical data must take into account the off-site component.
    (2) Scoring. You will receive one point if you propose to develop 
an off-site housing component(s) and document that: (a) You have site 
control of the property(ies) in accordance with Section III.C.2; (b) 
the site(s) does not suffer from any known or suspected environmental 
hazards or have any open issues or uncertainties related to public 
policy factors (such as sewer moratoriums), proper zoning, availability 
of all necessary utilities, or clouds on title that would preclude 
development in the requested locality; and (c) the site(s) meets site 
and neighborhood standards, in accordance with Section III.C.3 of this 
NOFA.
c. Homeownership Housing--4 Points
    The Department has placed the highest priority on increasing 
homeownership opportunities for low- and moderate-income persons, 
persons with disabilities, the elderly, minorities, and families where 
English may be a second language. Too often these individuals and 
families are shut out of the housing market through no fault of their 
own. HUD encourages applicants to work aggressively to open up the 
realm of homeownership.
    (1) Your application will receive 4 points if it demonstrates that 
your revitalization plan includes homeownership and that you have a 
feasible, well-defined plan for homeownership. In order to demonstrate 
this, your application should include descriptions of the following:
    (a) The purpose of your homeownership program;
    (b) The number of units planned and their location(s);
    (c) A description and justification of the families that will be 
targeted for the program;
    (d) The proposed source of your construction and permanent 
financing of the units; and
    (e) A description of the homeownership counseling you or a

[[Page 41854]]

HUD-approved housing counseling agency will provide to prospective 
families, including such subjects as the homeownership process, housing 
in non-impacted areas, credit repair, budgeting, home maintenance, home 
financing, and mortgage lending.
    (2) You will receive 2 points for this factor if you address in 
your description one to four of the items listed under (1) above.
    (3) You will receive zero points for this factor if you do not 
propose to include homeownership units in your Revitalization plan, if 
your proposed program is not feasible and well defined, or if your 
application does not address this factor to an extent that makes HUD's 
rating of this factor possible.
9. Rating Factor: Soundness of Approach--30 Points Total
a. Quality and Consistency of the Application--2 Points
    (1) The information and strategies described in your application 
must be well organized, coherent, and internally consistent. Numbers 
and statistics in your narratives must be consistent with the 
information provided in the attachments. Also, the physical and CSS 
aspects of the application must be compatible and coordinated with each 
other. Pay particular attention to the data provided for:
    (a) Types and numbers of units;
    (b) Budgets;
    (c) Other financial estimates, including sources and uses; and
    (d) Numbers of residents affected.
    (2) You will receive 2 points if your application demonstrates a 
high level of quality and consistency.
    (3) You will receive one point if your application has a high level 
of quality, but contains minor internal discrepancies;
    (4) You will receive zero points if your application fails to 
demonstrate an acceptable level of quality and consistency.
b. Appropriateness and Feasibility of the Plan--5 Points
    (1) You will receive 5 points if your application demonstrates the 
following about your revitalization plan:
    (a) It is appropriate and suitable, in the context of the community 
and other revitalization options, in accordance with the 
Appropriateness of Proposal threshold in section III.C. of this NOFA;
    (b) Fulfills the needs that your application demonstrated for 
Rating Factor 2;
    (c) Is marketable, in the context of local conditions;
    (d) If you include market-rate housing, economic development, or 
retail structures in your revitalization plan, you must provide a 
signed letter from an independent, third party, credentialed market 
research firm, or professional that describes its assessment of the 
demand and associated pricing structure for the proposed residential 
units, economic development, or retail structures, based on the market 
and economic conditions of the project area.
    (e) Is financially feasible, as demonstrated in the financial 
structure(s) proposed in the application;
    (f) Does not propose to use public housing funds for non-public 
housing uses;
    (g) If extraordinary site costs have been identified, a 
certification of these costs has been provided in the application;
    (h) Describes the cost controls that will be used in implementing 
the project, in accordance with the Funding Restrictions and Program 
Requirements sections of this NOFA;
    (i) Includes a completed TDC/Grant Limitations Worksheet in the 
application and follows the Funding Restrictions and Program 
Requirements sections of this NOFA.
    (2) You will receive 3 points if your application demonstrates some 
but not all of the criteria above.
    (3) You will receive zero points if your application does not 
demonstrate the criteria above or your application does not provide 
sufficient information to evaluate this factor.
c. Neighborhood Impact and Sustainability of the Plan--5 Points
    (1) You will receive up to 5 points if your application 
demonstrates your revitalization plan, including plans for retail or 
office space, or other economic development activities, as appropriate, 
will:
    (a) Result in a revitalized site that will enhance the neighborhood 
in which the project is located;
    (b) Spur outside investment into the surrounding community;
    (c) Enhance economic opportunities for residents; and
    (d) Remove an impediment to continued redevelopment or start a 
community-wide revitalization process.
    (2) You will receive up to 3 points if your application 
demonstrates that your revitalization plan will have only a moderate 
effect on activities in the surrounding community, as described in 
(1)(a) through (d) above.
    (3) You will receive zero Points if your application does not 
demonstrate that your revitalization plan will have an effect on the 
surrounding community, as described in (a) through (d) above, or if 
your application does not address this factor to an extent that makes 
HUD's rating of this factor possible.
d. Project Readiness--7 Points
    HUD places top priority on projects that will be able to commence 
immediately after grant award. You will receive the following points 
for each applicable subfactor certified in your application.
    (1) You will receive 2 points if the targeted severely distressed 
public housing site is completely vacant, i.e., all residents have been 
relocated.
    (2) You will receive 2 points if the targeted severely distressed 
public housing site is cleared, i.e., all buildings are demolished, or 
your revitalization plan only includes rehabilitation and no demolition 
of public housing units.
    (3) You will receive one point if a Master Development Agreement 
(MDA) has been developed and is ready to be submitted to HUD. However, 
in cases where the PHA (not an affiliate/subsidiary/instrumentality) 
will act as its own developer for all components of the revitalization 
plan, an MDA is not needed and the one point will be awarded 
automatically.
    (4) You will receive one point if your preliminary site design is 
complete.
    (5) You will receive one point if you have held five or more public 
planning sessions leading to resident acceptance of the plan.
e. Program Schedule--5 Points
    You will receive 5 points if the program schedule provided in your 
application incorporates all the timelines/milestones required in 
Section III.C.3.v., ``Timeliness of Development Activity,'' paragraphs 
(1)-(6). If your schedule does not incorporate all the timelines/
milestones, you will earn zero points.
f. Design--3 Points
    (1) You will receive up to 3 points if your proposed site plan, new 
dwelling units, and buildings demonstrate that:
    (a) You have proposed a site plan that is compact, pedestrian-
friendly, with an interconnected network of streets and public open 
space;
    (b) Your proposed housing, community facilities, and economic 
development facilities are thoroughly integrated into the community 
through the use of local architectural tradition, building scale, 
grouping of buildings, and design elements; and
    (c) Your plan proposes appropriate enhancements of the natural

[[Page 41855]]

environment that are appropriate to the site's soils and microclimate.
    (2) You will receive one point if your proposed site plan, new 
dwelling units, and buildings demonstrate design that adequately 
addresses one or two, but not all three of the elements in (1) above.
    (3) You will receive zero points if your proposed design is 
perfunctory or otherwise does not address the elements in (1) above. 
You will also receive zero points if your application does not address 
this factor to an extent that makes HUD's rating of this factor 
possible.
g. Energy Star--1 Point
    (1) Promotion of Energy Star compliance is a HOPE VI Revitalization 
program requirement. See section III.C.3. of this NOFA.
    (2) You will receive one point if your application demonstrates 
that you will:
    (a) Use Energy Star-labeled products;
    (b) Promote Energy Star design of replacement units; and
    (c) Include Energy Star in homeownership counseling.
    (3) You will receive zero points if your application does not 
demonstrate that you will perform (2)(a) through (c) above.
h. Evaluation--2 Points
    You are encouraged to work with your local university(ies), other 
institutions of learning, foundations, or others to evaluate the 
performance and impact of their HOPE VI revitalization plan over the 
life of the grant. The proposed methodology must measure success 
against goals you set at the outset of your revitalization activities. 
Evaluators must establish baselines and provide ongoing interim reports 
that will allow you to make changes as necessary as your project 
proceeds. Where possible, you are encouraged to form partnerships with 
Historically Black Colleges and Universities (HBCUs); Hispanic-Serving 
Institutions (HSIs); Community Outreach Partnership Centers (COPCs); 
the Alaskan Native/Native Hawaiian Institution Assisting Communities 
Program (as appropriate); and others in HUD's University Partnerships 
Program.
    (1) You will receive 2 points if your application includes a 
letter(s) from an institution(s) of higher learning, foundations, or 
other organization that specializes in research and evaluation that 
provides a commitment to work with you to evaluate your program and 
describes its proposed approach to carry out the evaluation if your 
application is selected for funding. The letter must provide the extent 
of the commitment and involvement, the extent to which you and the 
local institution of higher learning will cooperate, and the proposed 
approach. The commitment letter must address all of the following areas 
for evaluation in order to earn full points:
    (a) The impact of your HOPE VI effort on the lives of the 
residents;
    (b) The nature and extent of economic development generated in the 
community;
    (c) The effect of the revitalization effort on the surrounding 
community, including spillover revitalization activities, property 
values, etc.; and
    (d) Your success at integrating the physical and CSS aspects of 
your strategy.
    (2) You will receive zero points if your application does not 
include a commitment letter that addresses each of the areas above 
(paragraphs(1) (a)-(d)).
10. Rating Factor: Incentive Criteria on Regulatory Barrier Removal--2 
Points Total
a. Description
    Applicants must follow the guidance provided in the General Section 
under section V.B. concerning the Removal of Regulatory Barriers to 
Affordable Housing in order to earn points under this rating factor. 
Information from the General Section V.B. is provided below, in part. 
In FY 2007, HUD continues to make removal of regulatory barriers a 
policy priority. Through the Department's America's Affordable 
Communities Initiative, HUD is seeking input into how it can work more 
effectively with the public and private sectors to remove regulatory 
barriers to affordable housing. Increasing the affordability of rental 
and homeownership housing continues to be a high priority of the 
Department. Addressing these barriers to housing affordability is a 
necessary component of any overall national housing policy. Under this 
policy priority, higher rating points are available to (1) governmental 
applicants that are able to demonstrate successful efforts in removing 
regulatory barriers to affordable housing and (2) nongovernmental 
applicants that are associated with jurisdictions that have undertaken 
successful efforts in removing barriers. To obtain the policy priority 
points for efforts to successfully remove regulatory barriers, 
applicants must complete form HUD-27300, ``Questionnaire for HUD's 
Initiative on Removal of Regulatory Barriers.'' Copies of HUD's notices 
published on this issue can be found on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. Form HUD-27300 is 
included in the electronic application for this program available at 
http://www.grants.gov/applicants/apply_for_grants.jsp.
b. Scoring
    (1) Local jurisdictions and counties/parishes with land use and 
building regulatory authority applying for funding, as well as PHAs, 
nonprofit organizations, and other qualified applicants applying for 
funds for projects located in these jurisdictions, are invited to 
answer the 20 questions under Part A.
    (2) State agencies or departments applying for funding, as well as 
PHAs, nonprofit organizations, and other qualified applicants applying 
for funds for projects located in unincorporated areas or areas not 
otherwise covered in Part A are invited to answer the 15 questions 
under Part B.
    (3) Applicants that will be providing services in multiple 
jurisdictions may choose to address the questions in either Part A or 
Part B for that jurisdiction in which the preponderance of services 
will be performed if an award is made.
    (4) In no case will an applicant receive more than 2 points for 
barrier removal activities under this policy priority.
    (5) Under Part A, an applicant that scores at least five in column 
2 will receive one point in the NOFA evaluation. An applicant that 
scores 10 or more in column 2 will receive 2 points in the NOFA 
evaluation.
    (6) Under Part B, an applicant that scores at least four in Column 
2 will receive one point in the NOFA evaluation. An applicant that 
scores eight or greater will receive a total of 2 points in the 
respective evaluation.
    (7) A limited number of questions on form HUD-27300 expressly 
request the applicant to provide brief documentation with its response. 
Other questions require that, for each affirmative statement made, the 
applicant supply a reference, Internet address, or brief statement 
indicating where the back-up information may be found and a point of 
contact, including a telephone number or e-mail address. To obtain an 
understanding of this policy priority and how it can affect their 
score, applicants are encouraged to read HUD's three notices, which are 
available at http://www.hud.gov/initiatives/affordablecom.cfm. 
Applicants that do not provide the Internet addresses, references, or 
documentation will not get the policy priority points.

[[Page 41856]]

B. Reviews and Selection Process

    HUD's selection process is designed to ensure that grants are 
awarded to eligible PHAs that submit the most meritorious applications. 
HUD will consider the information you submit by the application 
deadline date. After the application deadline date, HUD may not, 
consistent with its regulations in 24 CFR part 4, subpart B, consider 
any unsolicited information that you or any third party may want to 
provide.
1. Application Screening
    a. HUD will screen each application to determine if:
    (1) It meets the threshold criteria listed in section III.C. of 
this NOFA; and
    (2) It is deficient, i.e., contains any Technical Deficiencies.
    b. See section III.C. of this NOFA for case-by-case information 
regarding thresholds and technical deficiencies. See section IV.B. of 
this NOFA for documentation requirements that will support threshold 
compliance and will avoid technical deficiencies.
    c. Corrections to Deficient Applications--Cure Period. The 
subsection entitled, ``Corrections to Deficient Applications,'' in 
section V.B. of the General Section is incorporated by reference and 
applies to this NOFA, except that clarifications or corrections of 
technical deficiencies in accordance with the information provided by 
HUD must be submitted within 14 calendar days of the date of receipt of 
the HUD notification. (If the deadline date falls on a Saturday, 
Sunday, or federal holiday, your correction must be received by HUD on 
the next day that is not a Saturday, Sunday, or federal holiday.)
    d. Applications that will not be rated or ranked. HUD will not rate 
or rank applications that are deficient at the end of the cure period 
stated in section V.B. of the General Section or that have not met the 
thresholds described in section III.C. of this NOFA. Such applications 
will not be eligible for funding.
2. Preliminary Rating and Ranking
    a. Rating.
    (1) HUD staff will preliminarily rate each eligible application, 
SOLELY on the basis of the rating factors described in section V.A. of 
this NOFA.
    (2) When rating applications, HUD reviewers will not use any 
information included in any HOPE VI application submitted in a prior 
year.
    (3) HUD will assign a preliminary score for each rating factor and 
a preliminary total score for each eligible application.
    (4) The maximum number of points for each application is 125.
    b. Ranking.
    (1) After preliminary review, applications will be ranked in score 
order.
3. Final Panel Review
    a. A Final Review Panel made up of HUD staff will:
    (1) Review the Preliminary Rating and Ranking documentation to:
    (a) Ensure that any inconsistencies between preliminary reviewers 
have been identified and rectified; and
    (b) Ensure that the Preliminary Rating and Ranking documentation 
accurately reflects the contents of the application.
    (2) Assign a final score to each application; and
    (3) Recommend for selection the most highly rated applications, 
subject to the amount of available funding, in accordance with the 
allocation of funds described in section II of this NOFA.
    4. HUD reserves the right to make reductions in funding for any 
ineligible items included in an applicant's proposed budget.
    5. In accordance with the FY 2007 HOPE VI appropriation, HUD may 
not use HOPE VI funds to grant competitive advantage in awards to 
settle litigation or pay judgments.
6. Tie Scores
     If two or more applications have the same score and there are 
insufficient funds to select all of them, HUD will select for funding 
the application(s) with the highest score for the Soundness of Approach 
Rating Factor. If a tie remains, HUD will select for funding the 
application(s) with the highest score for the Capacity Rating Factor. 
HUD will select further tied applications with the highest score for 
the Need Rating Factor.
7. Remaining Funds
    a. HUD reserves the right to reallocate remaining funds from this 
NOFA to other eligible activities under section 24 of the 1937 Act.
    (1) If the total amount of funds requested by all applications 
found eligible for funding under section V.B. of this NOFA is less than 
the amount of funds available from this NOFA, all eligible applications 
will be funded and those funds in excess of the total requested amount 
will be considered remaining funds.
    (2) If the total amount of funds requested by all applications 
found eligible for funding under this NOFA is greater than the amount 
of funds available from this NOFA, eligible applications will be funded 
until the amount of non-awarded funds is less than the amount required 
to feasibly fund the next eligible application. In this case, the funds 
that have not been awarded will be considered remaining funds.
    8. The following sub-sections of section V. of the General Section 
are hereby incorporated by reference:
    a. HUD's Strategic Goals;
    b. Policy Priorities;
    c. Threshold Compliance;
    d. Corrections to Deficient Applications;
    e. Rating; and
    f. Ranking.

VI. Award Administration Information

A. Award Notices

    1. Initial Announcement. The HUD Reform Act prohibits HUD from 
notifying you as to whether or not you have been selected to receive a 
grant until it has announced all grant recipients. If your application 
has been found to be ineligible or if it did not receive enough points 
to be funded, you will not be notified until the successful applicants 
have been notified. HUD will provide written notification to all 
applicants, whether or not they have been selected for funding.
    2. Award Letter. The notice of award letter is signed by the 
Assistant Secretary for Public and Indian Housing (grants officer) and 
will be delivered by fax and the U.S. Postal Service.
    3. Revitalization Grant Agreement. When you are selected to receive 
a Revitalization grant, HUD will send you a HOPE VI Revitalization 
grant agreement, which constitutes the contract between you and HUD to 
carry out and fund public housing revitalization activities. Both you 
and HUD will sign the cover sheet of the grant agreement, form HUD-
1044. It is effective on the date of HUD's signature, which is the 
second signature. The grant agreement differs from year to year. Past 
Revitalization grant agreements can be found on the HOPE VI Web site at 
http://www.hud.gov/hopevi.
    4. Applicant Debriefing. Upon request, HUD will provide an 
applicant a copy of the total score received by their application and 
the score received for each rating factor.
    5. General Section References. The following sub-section of section 
VI.A. of the General Section is hereby incorporated by reference: 
Adjustments to Funding.

B. Administrative and National Policy Requirements

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

[[Page 41857]]

    2. Conflict of Interest in Grant Activities.
    a. Prohibition. In addition to the conflict-of-interest 
requirements in 24 CFR part 85, no person who is an employee, agent, 
consultant, officer, or elected or appointed official of a grantee and 
who exercises or has exercised any functions or responsibilities with 
respect to activities assisted under a HOPE VI grant, or who is in a 
position to participate in a decision-making process or gain inside 
information with regard to such activities, may obtain a financial 
interest or benefit from the activity, or have an interest in any 
contract, subcontract, or agreement with respect thereto, or the 
proceeds thereunder, either for himself or herself or for those with 
whom he or she has family or business ties, during his or her tenure or 
for one year thereafter.
    b. HUD-Approved Exception.
    (1) Standard. HUD may grant an exception to the prohibition above 
on a case-by-case basis when it determines that such an exception will 
serve to further the purposes of HOPE VI and its effective and 
efficient administration.
    (2) Procedure. HUD will consider granting an exception only after 
the grantee has provided a disclosure of the nature of the conflict, 
accompanied by:
    (a) An assurance that there has been public disclosure of the 
conflict;
    (b) A description of how the public disclosure was made; and
    (c) An opinion of the grantee's attorney that the interest for 
which the exception is sought does not violate state or local laws.
    (d) Consideration of Relevant Factors. In determining whether to 
grant a requested exception as discussed, HUD will consider the 
cumulative effect of the following factors, where applicable:
    (i) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the Revitalization plan and 
demolition activities that would otherwise not be available;
    (ii) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (iii) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the Revitalization plan and 
Demolition plan, and the exception will permit such person to receive 
generally the same interests or benefits as are being made available or 
provided to the group or class;
    (iv) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or from the decision-making process, 
with respect to the specific activity in question;
    (v) Whether the interest or benefit was present before the affected 
person was in a position as described in section (iii) above;
    (vi) Whether undue hardship will result either to the grantee or 
the person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (vii) Any other relevant considerations.
    3. Salary Limitation for Consultants. Unless specifically 
authorized by law, FY 2007 funds may not be used to pay or to provide 
reimbursement for payment of the salary of a consultant, whether 
retained by the federal government or the grantee, at a rate more than 
the equivalent of the high pay for members of the Senior Executive 
Service (SES). For information on the Executive Pay Band levels, please 
see the Office Personnel Management (OPM) Web site band paid for level 
IV of the Executive Schedule, at http://www.opm.gov/oca/06tables/html/es.asp.
    4. Flood Insurance. In accordance with the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4001-4128), your application may not 
propose to provide financial assistance for acquisition or construction 
(including rehabilitation) of properties located in an area identified 
by the Federal Emergency Management Agency (FEMA) as having special 
flood hazards, unless:
    a. The community in which the area is situated is participating in 
the National Flood Insurance program (see 44 CFR parts 59 through 79), 
or less than one year has passed since FEMA notification regarding such 
hazards; and
    b. Where the community is participating in the National Flood 
Insurance Program, flood insurance is obtained as a condition of 
execution of a grant agreement.
    5. Coastal Barrier Resources Act. In accordance with the Coastal 
Barrier Resources Act (16 U.S.C. 3501), your application may not target 
properties in the Coastal Barrier Resources System.
    6. Policy Requirements.
    a. OMB Circulars and Administrative Requirements. You must comply 
with the following administrative requirements related to the 
expenditure of federal funds. OMB circulars can be found at http://www.whitehouse.gov/omb/circulars/index.html. Copies of the OMB 
circulars may be obtained from EOP Publications, Room 2200, New 
Executive Office Building, Washington, DC 20503; telephone (202) 395-
7332 (this is not a toll-free number). The Code of Federal Regulations 
can be found at http://www.gpoaccess.gov/cfr/index.html.
    (1) Administrative requirements applicable to PHAs are:
    (a) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments), as modified by 24 CFR part 941 or successor part, 
subpart F, relating to the procurement of partners in mixed-finance 
developments.
    (b) OMB Circular A-87 (Cost Principles for State, Local, and Indian 
Tribal Governments); and
    (c) 24 CFR 85.26 (audit requirements).
    (2) Administrative requirements applicable to nonprofit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Nonprofit Organizations);
    (b) OMB Circular A-122 (Cost Principles for Nonprofit 
Organizations); and
    (c) 24 CFR 84.26 (audit requirements).
    (3) Administrative requirements applicable to for profit 
organizations are:
    (a) 24 CFR part 84 (Grants and Agreements with Institutions of 
Higher Education, Hospitals, and other Nonprofit Organizations);
    (b) 48 CFR part 31 (contract cost principles and procedures); and
    (c) 24 CFR 84.26 (audit requirements).

C. Reporting

    1. Quarterly Report.
    a. If you are selected for funding, you must submit a quarterly 
report to HUD.
    (1) HUD will provide training and technical assistance on the 
filing and submitting of quarterly reports.
    (2) Filing of quarterly reports is mandatory for all grantees, and 
failure to do so within the required timeframe will result in 
suspension of grant funds until the report is filed and approved by 
HUD.
    (3) Grantees will be held to the milestones that are reported on 
the Quarterly Report Administrative and Compliance Checkpoints Report, 
as approved by HUD.
    (4) Grantees must also report obligations and expenditures in 
LOCCS, or its successor system, on a quarterly basis.
    2. Logic Model Reporting.
    a. The reporting shall include submission of a completed Logic 
Model indicating results achieved against the proposed output goal(s) 
and proposed outcome(s), which you stated in your approved application 
and agreed upon with HUD. The submission of the Logic Model and 
required information should be in accord with the reporting timeframes 
as identified in your grant agreement.

[[Page 41858]]

    b. The goals and outcomes that you include in the Logic Model 
should reflect your major activities and accomplishments under the 
grant. For example, you would include unit construction, demolition, 
etc., from the ``bricks-and-mortar'' portion of the grant. As another 
example, for the CSS portion of the grant, you may include the number 
of jobs created or the number of families that have reached self-
sufficiency, but you would not include information on specific job 
training and self-sufficiency courses.
    c. As a condition of the receipt of financial assistance under this 
NOFA, all successful applicants will be required to cooperate with all 
HUD staff or contractors performing HUD-funded research and evaluation 
studies.
    3. Final Report.
    a. The grantees shall submit a final report, which will include a 
financial report and a narrative evaluating overall performance against 
its HOPE VI Revitalization plan. Grantees shall use quantifiable data 
to measure performance against goals and objectives outlined in its 
application, as well as against the responses to the Management 
Questions contained in the Logic Model. The financial report shall 
contain a summary of all expenditures made from the beginning of the 
grant agreement to the end of the grant agreement and shall include any 
unexpended balances.
    b. Racial and Ethnic Data. HUD requires that funded recipients 
collect racial and ethnic beneficiary data. It has adopted the OMB's 
Standards for the Collection of Racial and Ethnic Data. In view of 
these requirements, you should use form HUD-27061, Racial and Ethnic 
Data Reporting Form (instructions for its use), included in the 
electronic application for this program available at http://www.grants.gov/applicants/apply_for_grants.jsp, a comparable program 
form, or a comparable electronic data system for this purpose. c. The 
final narrative and financial report shall be due to HUD 90 days after 
either the full expenditure of funds, or when the grant term expires, 
whichever comes first.

VII. Agency Contacts

A. Technical Assistance

    1. Before the application deadline date, HUD staff will be 
available to provide you with general guidance and technical 
assistance. However, HUD staff is not permitted to assist in preparing 
your application. If you have a question or need a clarification, you 
may call or send an e-mail message to the Office of Public Housing 
Investments, Attention: Leigh van Rij, at (202) 402-5788 (this is not a 
toll-free number), <a href="/cdn-cgi/l/email-protection#5e323b373936013b7001283f30012c37341e362b3a70393128"><span class="__cf_email__" data-cfemail="bfd3dad6d8d7e0da91e0c9ded1e0cdd6d5ffd7cadb91d8d0c9">[email protected]</span></a>. The mailing address is: 
Office of Public Housing Investments, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 4130, Washington, DC 20410-
5000; telephone numbers (202) 401-8812; fax (202) 401-2370 (these are 
not toll-free numbers). Persons with hearing or speech impairments may 
access these telephone numbers through a text telephone (TTY) by 
calling the toll-free Federal Information Relay Service at (800) 877-
8339.
    2. Frequently Asked Questions and General HOPE VI Information. 
Before the application deadline date, frequently asked questions (FAQs) 
on the NOFA will be posted to HUD's grants Web site at http://www.hud.gov/offices/adm/grants/otherhud.cfm.
    3. You may obtain general information about HUD's HOPE VI programs 
from HUD's HOPE VI Web site at http://www.hud.gov/offices/pih/programs/ph/hope6/.

B. Technical Corrections to the NOFA

    1. Technical corrections to this NOFA will be posted on the 
Grants.gov Web site.
    2. Any technical corrections will also be published in the Federal 
Register.
    3. You are responsible for monitoring these sites during the 
application preparation period.

VIII. Other Information

    A. Waivers. Any HOPE VI-funded activities at public housing 
projects are subject to statutory requirements applicable to public 
housing projects under the 1937 Act, other statutes, and the annual 
contributions contract (ACC). Within such restrictions, HUD seeks 
innovative solutions to the long-standing problems of severely 
distressed public housing projects. You may request, for the 
revitalized project, a waiver of HUD regulations, subject to statutory 
limitations and a finding of good cause under 24 CFR 5.110, if the 
waiver will permit you to undertake measures that enhance the long-term 
viability of a project revitalized under this program. HUD will assess 
each request to determine whether good cause is established to grant 
the waiver.
    B. Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made for this notice, in accordance 
with HUD regulations at 24 CFR part 50 that implement section 102(2)(C) 
of the National Environmental Policy Act of 1969 (42 U.S.C. 4332). The 
Finding of No Significant Impact is available for public inspection 
between 8 a.m. and 5 p.m. in the Office of General Counsel, Regulations 
Division, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 10276, Washington, DC 20410-0500.
    C. General Section References. The following sub-sections of 
section VIII of the General Section are hereby incorporated by 
reference:
    1. Executive Order 13132, Federalism;
    2. Public Access, Documentation, and Disclosure;
    3. Section 103 of the HUD Reform Act.
    D. Paperwork Reduction Act Statement. The information collection 
requirements contained in this document have been approved by the OMB 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and 
assigned OMB Control Number 2577-0208. In accordance with the Paperwork 
Reduction Act, HUD may not conduct or sponsor, and a person is not 
required to respond to, a collection of information, unless the 
collection displays a currently valid OMB control number. The public 
reporting burden for the collection of information is estimated to 
average 190 hours per annum per respondent for the application and 
grant administration. This includes the time for collecting, reviewing, 
and reporting the data for the application, quarterly reports, and 
final report. The information will be used for grantee selection and 
monitoring the administration of funds. Response to this request for 
information is required in order to receive the benefits to be derived.
[FR Doc. 07-3713 Filed 7-27-07; 8:45 am]
BILLING CODE 4210-67-P


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