17976 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4180–N–01]

Community Development Block Grant

Program for Indian Tribes and Alaska

Native Villages (Fiscal Year 1997)

Notice of Funding Availability

AGENCY: Office of the Assistant

Secretary for Public and Indian

Housing, HUD.

ACTION: Notice of Funding Availability

for Fiscal Year 1997.

SUMMARY: This notice announces the

availability of $67,453,491 for the

Community Development Block Grant

Program for Indian Tribes and Alaska

Native Villages (ICDBG Program). In the

body of this Notice of Funding

Availability (NOFA) is information

concerning the following:

(a) The purpose of the NOFA and

information regarding eligibility and

available amounts;

(b) A list of steps involved and a

checklist of the exhibits required in the

application process, including where

and how to apply and what to submit;

and

(c) A description of application

processing, including the selection

process and the selection criteria.

DATES: Applications must be received

by the appropriate Area ONAP of the

HUD Office of Native American

Programs (ONAP) no later than 3:00

P.M. on Friday, July 25, 1997.

Application materials will be available

from each Area ONAP. General program

questions may be directed to the Area

ONAP serving your area or to Robert

Barth, Office of Native American

Programs, Office of Public and Indian

Housing, Department of Housing and

Urban Development, P.O. Box 36003,

450 Golden Gate Ave., San Francisco,

CA 94102; telephone (415) 436–8122.

The TTY number is (415) 436–6594.

(These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Changes From FY 1996 NOFA

1. Conformance with the

Requirements of the July 31, 1996 Final

Rule. On July 31, 1996 (61 FR 40084),

HUD published a final rule which

revised the requirements for the ICDBG

Program (24 CFR part 953). The FY 1996

NOFA was published on May 9, 1996

(61 FR 21338). The FY 1996 was

therefore written to comply with the

requirements of the interim rule (July

27, 1994, 59 FR 38326) which preceded

the July 31, 1996 final rule. All

references to 24 CFR part 953 in this FY

1997 NOFA are to the final rule.

There is one substantive difference

between the interim and final rules

which affects the process or procedures

covered in the NOFA; the project

specific threshold requirements for

economic development projects have

been changed. The previous threshold

requirement that ‘‘an applicant shall

demonstrate the need for grant

assistance by providing documentation

to support a determination that the

assistance is appropriate to implement

an economic development project’’ has

been deleted. This requirement has

proven to be an unnecessary

complication for potential applicants for

assistance.

One of the two remaining threshold

requirements for economic development

projects (i.e., that an analysis

demonstrates that public benefit

commensurate with the assistance

requested can reasonably be expected)

has been expanded in scope and

revised. The expansion/revision of this

threshold was done to state this

threshold in a manner consistent with

the objectives for the evaluation and

selection of economic development

projects which were set forth in section

806 of the Housing and Community

Development Act of 1992.

2. Population to be Considered for

Grant Ceilings—Southwest ONAP.

Clarifying language has been included

in Section III.(a)(3) so that the

population to be considered for grant

ceiling levels is unambiguous. In

addition, the lowest population category

has been revised to acknowledge that

there are otherwise eligible applicants

which because of recent recognition or

untermination have no land base and,

therefore, no on-reservation or rancheria

Native American population.

3. Imminent Threat Requirements and

Process. The wording of the NOFA has

been revised (Section III.(a)(4)). The

emergency nature of the problem to be

addressed has been emphasized. Also,

the fact that the deadline established by

the NOFA does not apply to requests for

assistance to address an imminent threat

has been clarified.

4. Southwest Area ONAP—Closing of

the San Francisco Office. The address of

the San Francisco Office of the

Southwest Area ONAP has been deleted

from the listing of Area ONAP offices

(Section IV.(a)(1)) since this office has

been closed. Program responsibilities for

applicants and grants in the former

jurisdiction of that office have been

transferred to the office in Phoenix.

5. Housing Rehabilitation Grant Limit.

The grant limit set forth in Section

VIII.(b)(2) for applicants in the

jurisdiction of the Northwest Area

ONAP has been increased to $25,000.

6. Land to Support New Housing—

Selection Criterion VIII.(e)(2)(v). In

response to equity concerns raised by

the Southern Plains Area ONAP, the

language of this criterion has been

changed. It will not be necessary for an

applicant to provide documentation

from the Bureau of Indian Affairs which

demonstrates that the land to be

purchased can and would be taken into

trust to obtain the rating points available

under this criterion. However, if this

documentation is not provided, it will

be necessary for the applicant to provide

specified documentation that all taxes

and fees on the land can and would be

paid.

7. Errors and Appeals. The section

formerly titled Procedural Error and

Appeals has been re-titled Errors and

Appeals (Section XI.). The following

substantive changes have also been

made. The basis upon which an appeal

may be made has been clarified; it has

been made explicit that only a perceived

arithmetic error may form the basis of

an appeal. In addition, the time period

allowed for an appeal has been reduced

to thirty days after notification of a

funding decision.

8. Editorial and Formatting Revisions.

In addition to the changes discussed

above, this notice makes several

technical changes to the FY 1996 NOFA.

These editorial and formatting changes

will make the NOFA easier to

understand. Among other revisions, this

notice divides several of the lengthy

sections contained in the FY 1996

NOFA. For example, this NOFA sets

forth the thresholds and selection

criteria for Housing, Community

Facilities, and Economic Development

in separate sections. Other technical

changes include: (1) moving the

necessary definitions up front to a new

Section II; (2) redesignating the NOFA

paragraphs to conform to the

designations used by HUD in its other

regulations and notices; and (3) moving

the information regarding the

Paperwork Reduction Act of 1995 and

the HUD Reform Act to the section titled

‘‘Findings and Certifications’’ (formerly

titled ‘‘Other Matters’’).

Promoting Comprehensive Approaches

to Housing and Community

Development

HUD is interested in promoting

comprehensive, coordinated approaches

to housing and community

development. Economic development,

community development, public

housing revitalization, homeownership,

assisted housing for special needs

populations, supportive services, and

welfare-to-work initiatives can work

better if linked at the local level.
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17977

Toward this end, the Department in

recent years has developed the

Consolidated Planning process designed

to help communities undertake such

approaches.

In this spirit, it may be helpful for

applicants under this NOFA to be aware

of other related HUD NOFAs that have

recently been published or are expected

to be published in the near future. By

reviewing these NOFAs with respect to

their program purposes and the

eligibility of applicants and activities,

applicants may be able to relate the

activities proposed for funding under

this NOFA to the recent and upcoming

NOFAs and to the community’s

Consolidated Plan. While tribes and

Indian housing authorities are not

required to execute a Consolidated Plan,

comprehensive planning by tribes is

encouraged.

Elsewhere in today’s Federal Register,

the Department is publishing the

following related NOFAs: the NOFA for

Emergency Shelter Grants Set-Aside for

Indian Tribes and Alaskan Native

Villages; and the NOFA for Indian

Applicants under the HOME Program.

The Department expects to publish

within the next few weeks the NOFA for

Indian Housing Development.

To foster comprehensive, coordinated

approaches by communities, the

Department intends for the remainder of

FY 1997 to continue to alert applicants

to upcoming and recent NOFAs as each

NOFA is published. In addition, a

complete schedule of NOFAs to be

published during the fiscal year and

those already published appears under

the HUD Homepage on the Internet,

which can be accessed at http://

www.hud.gov/nofas.html. Additional

steps on NOFA coordination may be

considered for FY 1998.

For help in obtaining a copy of your

community’s Consolidated Plan, please

contact the community development

office of your municipal government.

Table of Contents

I. Purpose and Authority

(a) Purpose

(b) Authority

II. Definitions

III. Funding and Eligibility

(a) Funding

(b) Eligible Activities

(c) Applicant Eligibility

IV. Application Process and Submission

Requirements

(a) Application Process

(b) Application Submission Requirements

and Checklist

(c) Documentation Requirements for Point

Award

V. Application Screening and Review Process

(a) Screening for Acceptance

(b) Application Review Process

(c) Pre-award Requirements

VI. General Threshold Requirements

(a) General

(b) Applicant Thresholds

(c) Community Development

Appropriateness

VII. Summary of Selection System Criteria

and Point Awards

Housing

(a) Rehabilitation

(b) Land to Support New Housing

(c) New Housing Construction

Community Facilities

(a) Infrastructure

(b) Buildings

Economic Development

VIII. Project Specific Thresholds and

Selection Criteria for Housing

(a) Specific Threshold for Housing

Category Projects

(b) Rehabilitation Thresholds and Grant

Limits

(c) Selection Criteria for Rehabilitation

Projects

(d) Thresholds for Land to Support New

Housing

(e) Selection Criteria for Land to Support

New Housing

(f) Thresholds for New Housing

Construction

(g) Selection Criteria for New Housing

Construction

IX. Project Specific Thresholds and Selection

Criteria for Community Facilities

(a) Infrastructure Selection Criteria

(b) Threshold for Buildings

(c) Selection Criteria for Buildings

X. Project Specific Thresholds and Selection

Criteria for Economic Development

(a) Thresholds for Economic Development

(b) Selection Criteria for Economic

Development

XI. Error and Appeals

XII. Findings and Certifications

(a) Paperwork Reduction Act

(b) Environmental Statement

(c) Recipient Compliance with

Environmental Requirements

(d) Federalism Executive Order

(e) Family Executive Order

(f) Prohibition of Advance Disclosure of

Funding Decisions

(g) Economic Opportunities for Low and

Very Low Income Persons

(h) Prohibition Against Lobbying Activities

(i) Section 102 of the HUD Reform Act

I. Purpose and Authority

(a) Purpose. This notice announces

the availability of $67,453,491 for the

ICDBG Program.

(b) Authority. Title I, Housing and

Community Development Act of 1974,

as amended (42 U.S.C. 5301 et seq.); sec.

7(d) of the Department of Housing and

Urban Development Act (42 U.S.C.

3535(d)); 24 CFR part 953.

II. Definitions

Adopt means to approve by formal

tribal resolution.

Assure means to comply with a

specific NOFA requirement. The

applicant should state its compliance or

its intent to comply in its application.

Document means to supply

supporting written information and/or

data in the application which satisfies

the NOFA requirement.

Leverage means resources the grantee

will use in conjunction with ICDBG

funds to achieve the objectives of the

project. Resources include, but are not

limited to:

(1) Tribal trust funds;

(2) Loans from individuals or

organizations;

(3) State or Federal loans or

guarantees;

(4) Other grants; and

(5) Noncash contributions and

donated services.

(See section IV.(c) of this NOFA for

documentation requirements for point

award for leveraged resources.)

Project Cost means the total cost to

implement the project. Project cost

includes both ICDBG and non ICDBG

funds and resources.

Section 8 standards means housing

quality standards contained in 24 CFR

982.401 (Section 8 Tenant-Based

Assistance: Unified Rule for TenantBased Assistance Under the Section 8

Rental Certificate Program and the

Section 8 Rental Voucher Program).

Standard Housing/Standard

Condition means housing which meets

the housing quality standards (HQS)

adopted by the applicant.

(1) The HQS adopted by the applicant

must be at least as stringent as the

Section 8 standards unless the Area

ONAP approves less stringent standards

based on a determination that local

conditions make the use of Section 8

standards infeasible.

(2) Applicants may submit their

request for the approval of standards

less stringent than Section 8 standards

prior to the application due date. If the

request is submitted with the

application, applicants should not

assume automatic approval by the Area

ONAP.

(3) The adopted standards must

provide for the following:

(i) That the house is safe, in a

physically sound condition with all

systems performing their intended

design functions;

(ii) A livable home environment;

(iii) An energy efficient building and

systems which incorporate energy

conservation measures; and

(iv) Adequate space and privacy for

all intended household members.

Tribe means an Indian Tribe, band,

group or nation, including Alaska

Indians, Aleuts, Eskimos, Alaska Native

Villages, ANCSA Village Corporations

and Regional Corporations.
17978 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

III. Funding and Eligibility

(a) Funding. (1) General. Amendments

to Title I of the Housing and Community

Development Act of 1974 have required

that the allocation for Indian Tribes be

awarded on a competitive basis in

accordance with selection criteria

contained in a regulation promulgated

by the Secretary after notice and public

comment. All grant funds awarded in

accordance with this NOFA are subject

to the requirements of 24 CFR part 953.

Applicants within an Area ONAP’s

geographic jurisdiction compete only

against each other for that Area ONAP’s

allocation of funds.

(2) Allocations. The requirements for

allocating funds to Area ONAPs

responsible for program administration

are found at 24 CFR 953.101. Following

these requirements, the allocations for

FY 1997 are as follows:

Eastern/Woodlands .................. $5,178,418

Southern Plains ....................... 12,254,896

Northern Plains ........................ 10,336,441

Southwest ................................. 28,199,896

Northwest ................................. 3,949,293

Alaska ....................................... 5,534,557

Total ............................... 65,453,491

The total allocation includes $453,491

in unused funds from the amount

reserved by the Assistant Secretary in

Fiscal Year 1996 for imminent threat

grants. As indicated in Section III.(a)(4)

below, $2,000,000 will be retained to

fund imminent threat grants.

(3) Grant Ceilings. The authority to

establish grant ceilings is found at 24

CFR 953.100(b)(1). Grant ceilings are

established for FY 1997 funding at the

following levels:

Area ONAPs Population Ceiling

Eastern/Woodlands.All ................... $300,000

Southern

Plains.

All ................... 750,000

Northern Plains All ................... 800,000

Southwest ....... 50,001+ .......... 5,000,000

10,501–50,000 2,500,000

9,001–10,500 2,000,000

7,501–9,000 ... 1,500,000

6,001–7,500 ... 1,000,000

4,501–6,000 ... 750,000

3,001–4,500 ... 650,000

1,501–3,000 ... 550,000

0–1,500 .......... 450,000

Northwest ....... All ................... 320,000

Alaska ............. All ................... 500,000

For the Southwest Area ONAP

jurisdiction, the population used to

determine ceiling amounts is the Native

American population which resides on

a reservation or rancheria.

(4) Imminent Threats. (i) The criteria

for grants to alleviate or remove

imminent threats to health or safety that

require an immediate solution are

described at 24 CFR part 953, subpart E.

Please note that the problem to be

addressed must be such that an

emergency situation would exist if it

were not addressed. In accordance with

the provisions of 24 CFR part 953,

subpart E, $2,000,000 will be retained to

meet the funding needs of imminent

threat applications submitted to any of

the Area ONAPs. The grant ceiling for

imminent threat applications for FY

1997 is $350,000. This ceiling is

established pursuant to the provisions

of § 953.400(c).

(ii) Requests for assistance under the

imminent threat set-aside (24 CFR 953,

subpart E) do not have to be submitted

by the deadline established in this

NOFA; the deadline applies to

application submitted for assistance

under 24 CFR 953, subpart D—single

purpose grants.

(iii) If, in response to a request for

assistance, an Area ONAP issues a letter

to proceed under the authority of

§ 953.401(a), an application must be

submitted to and approved by the Area

ONAP before a grant agreement may be

executed. This application must consist

of the following components:

(A) Standard Form 424—Application

for Federal Assistance

(B) Brief description of the proposed

project

(C) Form HUD–4123—Cost Summary

(D) Form HUD–4125—

Implementation Schedule

(E) Form HUD–2880—Applicant/

Recipient Disclosure/Update Report.

(F) Form HUD–4126—Certifications.

(G) Drug-free workplace certification

(24 CFR part 24, subpart F).

(b) Eligible Activities. Activities that

are eligible for ICDBG funds are

identified at 24 CFR part 953, subpart C.

(c) Applicant Eligibility. (1) General.

To apply for funding in a given fiscal

year, an applicant must be eligible as an

Indian Tribe or Alaska Native Village (or

as a tribal organization) by the

application submission date.

(2) Tribal Organizations. Tribal

organizations are permitted to submit

applications under 24 CFR 953.5(b) on

behalf of eligible tribes or villages when

one or more eligible tribe(s) or village(s)

authorize the organization to do so

under concurring resolutions. As is

stated in this regulatory section, the

tribal organization must itself be eligible

under Title I of the Indian SelfDetermination and Education

Assistance Act.

(3) Successors to Eligible Entities. If a

tribe or tribal organization claims that it

is a successor to an eligible entity, the

Area ONAP must review the

documentation to determine whether it

is in fact the successor entity.

(4) Alaskan Tribal Entities. (i) Due to

the unique structure of tribal entities

eligible to submit ICDBG applications in

Alaska, and as only one ICDBG

application may be submitted for each

area within the jurisdiction of an entity

eligible under 24 CFR 953.5, a Tribal

Organization which submits an

application for activities in the

jurisdiction of one or more eligible

tribes or villages must include a

concurring resolution from each such

tribe or village authorizing the submittal

of the application. Each such resolution

must also indicate that the tribe or

village does not itself intend to submit

an ICDBG application for that funding

round. The hierarchy for funding

priority continues to be the IRA

Council, the Traditional Village

Council, the Village Corporation and the

Regional Corporation.

(ii) On February 16, 1995 (60 FR

9250), the Bureau of Indian Affairs (BIA)

published a Federal Register Notice

entitled ‘‘Indian Entities Recognized

and Eligible to Receive Services From

the United States Bureau of Indian

Affairs.’’ This notice provides a listing

of Indian Tribal Entities in Alaska found

to be Indian Tribes as the term is

defined and used in 25 CFR part 83.

Additionally, pursuant to Title I of the

Indian Self Determination and

Education Assistance Act, ANCSA

Village Corporations and Regional

Corporations are also considered tribes

and therefore eligible applicants for the

ICDBG program.

(iii) Any questions regarding

eligibility determinations and related

documentation requirements for entities

in Alaska should be referred to the

Alaska Area ONAP prior to the deadline

for submitting an application. (See 24

CFR 953.5 for a complete description of

eligible applicants.)

IV. Application Process and

Submission Requirements

(a) Application Process

(1) An application package may be

obtained from the Area ONAP in the

following geographic locations:

All States East of the Mississippi

River, Plus Iowa and Minnesota:

Eastern/Woodlands Office of Native

American Programs, Community

Development and Tribal Relations (CD &

TR) Staff, 77 West Jackson Blvd.,

Chicago, IL 60604; Telephone: (312)

886–4532, Ext. 2815.

Louisiana, Kansas, Oklahoma, and

Texas, except West Texas: Southern

Plains Office of Native American

Programs, CD & TR Staff, Suite 400, 500

W. Main Street, Oklahoma City, OK
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17979

73102–3202; Telephone: (405) 553–

7525.

Colorado, Montana, Nebraska, North

Dakota, South Dakota, Utah and

Wyoming: Northern Plains Office of

Native American Programs, CD & TR

Staff, First Interstate Tower North, 833

17th Street, Denver, CO 80202–3607;

Telephone: (303) 672–5457.

Arizona, California, and Nevada:

Southwest Office of Native American

Programs, CD & TR Staff, Two Arizona

Center, Suite 1650, 400 N. Fifth Street,

Phoenix, AZ 85004–2361; Telephone:

(602) 379–4197.

New Mexico and West Texas:

Southwest Office of Native American

Programs, CD & TR Specialist,

Albuquerque Plaza, 201 3rd Street N.W.,

Suite 1830, Albuquerque, NM 87102–

3368; Telephone: (505) 766–1372.

Idaho, Oregon, Washington:

Northwest Office of Native American

Programs, CD & TR Staff, Federal Office

Building, 909 First Avenue, Suite 200,

Seattle, WA 98104–1000; Telephone:

(206) 220–5271.

Alaska: Alaska Office of Native

American Programs, CD & TR Staff, 949

E. 36th Avenue, Suite 401, Anchorage,

AK 99508–4135; Telephone: (907) 271–

4603.

(2) Completed applications must be

submitted to the appropriate Area

ONAP, listed above, from which

application information and packages

were obtained. All telephone numbers

listed may be accessed via TTY by

calling the Federal Information Relay

Service at 1–800–877–8339.

(3) Applications must be received by

the appropriate Area ONAP no later

than 3:00 P.M. on the deadline date,

Friday, July 25, 1997.

(b) Application Submission

Requirements and Checklist

(1) General. An applicant shall submit

only one application. The ICDBG grant

amount requested shall not total more

than the grant ceiling. An application

may include an unlimited number of

eligible projects (e.g., housing or public

facilities). Each project within an

application will be rated separately.

(2) Demographic data. Applicants

may submit data that are unpublished

and not generally available in order to

meet the requirements of this section.

The applicant must certify that:

(i) Generally available, published data

are substantially inaccurate or

incomplete;

(ii) Data provided have been collected

systematically and are statistically

reliable;

(iii) Data are, to the greatest extent

feasible, independently verifiable; and

(iv) Data differentiate between

reservation and BIA service area

populations, when applicable.

(3) Publication of community

development statement. Applicants

shall prepare and publish or post the

community development statement

portion of their application according to

the citizen participation requirements of

§ 953.604.

(4) Application Submission. The

application shall include:

(i) Standard Form 424—Application

for Federal Assistance;

(ii) Community Development

Statement which includes:

(A) Components that address the

relevant selection criteria;

(B) A brief description or an updated

description of community development

needs;

(C) A brief description of projects

proposed to address needs, including

scope, magnitude, and method of

implementing the project;

(D) A schedule for implementing the

project (form HUD–4125

Implementation Schedule); and

(E) Cost information for each separate

project, including specific activity costs,

administration, planning, and technical

assistance, total HUD share (form HUD–

4123 Cost Summary);

(iii) Certifications—form HUD 4126;

(iv) Drug-free Workplace Certification

(24 CFR part 24, subpart F);

(v) Applicant/Recipient Disclosure/

Update Report—form HUD 2880, as

required under subpart A of 24 CFR part

4, Accountability in the Provision of

HUD Assistance;

(vi) A map showing project location,

if appropriate;

(vii) If the proposed project will result

in displacement or temporary

relocation, a statement that identifies:

(A) The number of persons (families,

individuals, businesses and nonprofit

organizations) occupying the property

on the date of the submission of the

application (or date of initial site

control, if later);

(B) The number to be displaced or

temporarily relocated;

(C) The estimated cost of relocation

payments and other services;

(D) The source of funds for relocation;

and

(E) The organization that will carry

out the relocation activities;

(viii) If applicable, evidence of the

disclosure required by 24 CFR

953.606(e).

(c) Documentation requirements for

point award for leveraged resources. (1)

General. For the applicant’s own

resources, a council resolution which

identifies and commits the resources

must be included in the application. For

resources to be provided by another

entity, written verification of an

application or request for the leveraged

resources must be included in the

application.

(2) Resources contributed by a public

agency, foundation, or other public

party. (i) In addition to the requirement

described in paragraph (c)(1) of this

section, for grants or other contributed

resources from a public agency,

foundation, or other private party, a

written commitment which may be

contingent on approval of the ICDBG

award must be received by the Area

ONAP no later than 30 days after the

application deadline. This commitment

must specifically identify or indicate:

(A) The dollar amount committed (or

dollar value of the noncash resource and

the basis for the valuation);

(B) That the resources are currently

available or will be available when

necessary for successful project

implementation; and

(C) The project.

(ii) If the nature of the funding cycle

of the contributing entity precludes

such an entity from making a firm

funding commitment in the 30 days

provided by paragraph (c)(2)(i) of this

section, such resources will be

considered in the award of points if the

entity provides a written statement

indicating that the application or

request for assistance has been received

from the ICDBG applicant and stating

the date by which its funding

determination will be made. This date

cannot be more than six months from

the anticipated date of grant approval

notification by HUD.

(iii) If the proposed project rates high

enough for funding consideration, a

special condition will be established in

the grant agreement for the project. This

condition will indicate that if a firm

funding commitment for the leveraged

resources is not provided within six

months of the date of grant approval, the

grant funds approved will be recaptured

by HUD and will be used in accordance

with the requirements of § 953.102.

(iv) The statement described in

paragraph (c)(2)(ii) of this section must

be received by the Area ONAP no later

than 30 days after the application

deadline. If the commitment or

statement is not received in the required

timeframe or if the required information

is not included, points will not be

awarded for the proposed contribution.

(v) If the proposed project still rates

high enough to be approved, a preaward condition will be established

which will require the applicant to

provide evidence of firmly committed

resources to cover the entire non-ICDBG
17980 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

project cost. If this condition is not met,

the grant will not be awarded.

(3) Contributions of goods and

services. In addition to the above

requirements for point award, special

documentation must be included in the

application for certain contributions.

The contribution of goods and services

will be considered for point award if the

applicable requirements listed above are

met; if the items or services are

demonstrated and determined necessary

to the actual development of the project;

and comparable cost and/or time

estimates are submitted which support

the donation.

(4) Contributions of land. Land to be

contributed will only be considered for

point award when its use and area are

integral to the development of the

project. In addition, the value of the

land must be verified by any of the

following means or methods and this

documentation must be included in the

application:

(i) A site specific appraisal no more

than two years old;

(ii) An appraisal of a nearby

comparable site also no more than two

years old; and

(iii) A reasonable extrapolation of

land value based on current area realtors

value guides.

V. Application Screening and Review

Process

(a) Screening for Acceptance. Each

Area ONAP will screen applications for

single purpose grants. Applications

failing this screening shall be rejected

and returned to the applicants unrated.

Area ONAPs will accept applications if

all the criteria listed below as items (1)

through (6) are met:

(1) The application is received by the

appropriate Area ONAP no later than

3:00 P.M. local time on the deadline

date;

(2) The applicant is eligible;

(3) The proposed activities are

eligible. Activities assisted with ICDBG

funds are subject to the requirements of

section 504 of the Rehabilitation Act of

1973 and HUD’s implementing

regulations at 24 CFR part 8;

(4) The application contains

substantially all the components

specified in Section IV.(b)(4) of this

notice;

(5) At least 70% of the grant funds are

to be used for activities that benefit low

and moderate income persons, in

accordance with the requirements of

§ 953.208; and,

(6) The application is for an amount

which does not exceed the grant ceilings

that are established by the NOFA.

(b) Application Review Process.

(1) Threshold review. The Area ONAP

will review each application that passes

the screening process to ensure that

each applicant and each proposed

project meets the applicable threshold

requirements set forth in 24 CFR

953.301(a) and 953.302, as implemented

by this NOFA. If an applicant fails to

meet any of the applicant-specific

thresholds, its application cannot be

accepted for rating and ranking.

Project(s) that do not meet the

community development

appropriateness or applicable projectspecific thresholds will not be

considered for funding.

(2) Rating Team. All projects that

meet the acceptance criteria and

threshold requirements will be reviewed

and rated by an Area ONAP rating team

of at least three voting members. The

Area ONAP rating team will examine

each project to determine in which one

of the rating categories set forth in 24

CFR 953.303(a) the project most

appropriately belongs. The project will

be rated on the basis of the criteria

identified in the rating category

component to which the project has

been assigned. The total points for a

rating component are 100, which is the

maximum any project can receive.

(3) Public service projects. Due to the

statutory 15 percent cap on public

services activities, applicants may not

receive single purpose grants solely to

fund public services activities.

However, any application may contain a

public services component for up to 15

percent of the total grant. This

component may be unrelated to the

other project(s) included in the

application. If an application does not

receive full funding, the public services

allocation will be proportionately

reduced to comprise no more than 15

percent of the total grant award.

(4) Corrections to deficient

applications and supplemental

information.

(i) The Area ONAP will not accept

unsolicited information regarding the

application after the application

deadline has passed. The Area ONAP

will notify applicants in writing of

technical deficiencies in applications

and permit them to be corrected. A

technical deficiency is an error or

oversight which, if corrected, would not

alter, in either a positive or negative

fashion, the review and rating of the

application. Examples of technical

deficiencies would be a failure to

submit proper certifications or failure to

submit an application containing an

original signature by an authorized

official.

(ii) The Area ONAP may request

information for the purpose of clarifying

the terms of an applicant’s application,

provided the additional information is

consistent with regulatory requirements.

Applicants will have 14 calendar days

from the date of HUD’s correspondence

to reply and correct the technical

deficiency or provide the requested

supplemental information. If the

technical deficiency is not corrected

within this time period, the Area ONAP

will reject the application as

incomplete. If the supplemental

information is not provided in this time

period and, as a consequence, the Area

ONAP determines that the applicant

has failed to establish compliance with

the requirements of 24 CFR part 953, the

application will be returned, unrated.

(iii) No information submitted after

the application due date can enhance a

project’s rating, and a new project may

not be substituted for one included in

the application.

(5) Final ranking. (i) All projects will

be ranked against each other according

to the point totals they receive,

regardless of the rating category or

component under which the points

were awarded. Projects will be selected

for funding based on this final ranking,

to the extent that funds are available.

Individual grant amounts will be

determined in a manner consistent with

the considerations set forth in 24 CFR

953.100(b)(2).

(ii) If the Area ONAP determines that

an insufficient amount of money is

available to adequately fund a project, it

may decline to fund that project and

fund the next highest ranking project or

projects for which adequate funds are

available. The Area ONAP may select,

in rank order, additional projects for

funding if one of the higher ranking

projects is not funded, or if additional

funds become available.

(6) Tiebreakers. When rating results in

a tie among projects and insufficient

resources remain to fund all tied

projects, Area ONAPs shall approve

projects that can be fully funded over

those that cannot be fully funded. When

that does not resolve the tie, the

following factors will be used in the

order listed to resolve the tie:

(i) Eastern/Woodlands Office

(A) The applicant with the fewest

active grants.

(B) The applicant that has not

received an ICDBG grant over the

longest period of time.

(C) The project that would benefit the

highest percentage of low and moderate

income persons.

(ii) Southern Plains Office

(A) The applicant that has not

received an ICDBG grant over the

longest period of time over the last 8

years.
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17981

(B) The applicant with the fewest

active grants.

(C) The project that would benefit the

highest percentage of low and moderate

income persons.

(iii) Northern Plains and Southwest

Offices

(A) The applicant that has not

received an ICDBG grant over the

longest period of time.

(B) The applicant with the fewest

active grants.

(C) The project that would benefit the

highest percentage of low and moderate

income persons.

(iv) Northwest Office

(A) The applicant that has not

received an ICDBG grant over the

longest period of time.

(B) The applicant that has received

the fewest ICDBG dollars since the

inception of the program.

(C) The project that would benefit the

highest percentage of low and moderate

income persons.

(v) Alaska Office

(A) The applicant that has not

received an ICDBG grant over the

longest period of time.

(B) The project that would benefit the

highest percentage of low and moderate

income persons.

(C) The project that would benefit the

most low and moderate income persons.

(c) Pre-award requirements.

(1) Successful applicants may be

required to provide supporting

documentation concerning the

management, maintenance, operation,

or financing of proposed projects before

a grant agreement can be executed.

Applicants will normally be given no

less than thirty (30) calendar days to

respond to such requirements. In the

event that no response or an insufficient

response is made within the prescribed

time period, the Area ONAP may

determine that the applicant has not met

the requirements and the grant offer

may be withdrawn. The Area ONAPs

shall require supporting documentation

in those instances where:

(i) Specific questions remain

concerning the scope, magnitude,

timing, or method of implementing the

project; or

(ii) The applicant has not provided

information verifying the commitment

of other resources required to complete,

operate, or maintain the proposed

project.

(2) New projects may not be

substituted for those originally proposed

in the application.

(3) If the required conditions are not

met within the prescribed time, HUD

may unilaterally rescind the grant

award.

(4) Grant amounts allocated for

applicants unable to meet pre-award

requirements will be awarded in

accordance with Sections VIII, IX, and

X of this NOFA.

VI. General Threshold Requirements

(a) General. Two types of general

thresholds are set forth in 24 CFR

953.301(a): those that relate to

applicants, and those that address the

overall community development

appropriateness of the project(s)

included in the application. Projectspecific thresholds are set forth in 24

CFR 953.302.

(b) Applicant thresholds. (1) General.

Applicant thresholds focus on the

administrative capacity of the applicant

to undertake the proposed project, on its

past performance in the ICDBG program,

and on its provision of housing

assistance to low and moderate income

tribal members.

(2) Applicant-Specific Thresholds:

Capacity. The Area ONAP will assume,

absent evidence to the contrary, that the

applicant possesses, or can obtain the

managerial, technical or administrative

capability necessary to carry out the

proposed project. The application

should address who will administer the

project and how the applicant plans to

handle the technical aspects of

executing the project. If the Area ONAP

determines, based on substantial

evidence (which could include

information provided by the most recent

risk analysis conducted by the Area

ONAP), that the applicant does not have

or cannot obtain the capacity to

undertake the proposed project, the

application will not receive further

consideration.

(3) Applicant-Specific Thresholds:

Performance. (i) Community

development. (A) If an applicant has

previously participated in the ICDBG

Program, the Area ONAP shall

determine whether the applicant has

performed adequately in grant

administration and management. This

determination will include an

evaluation of the most recent RADAR

(Risk Analysis and Determination for

Allocation of Resources) conducted by

the Area ONAP for the applicant. The

applicant is presumed to be performing

adequately unless the Area ONAP

makes a performance determination to

the contrary during periodic

evaluations.

(B) Where an applicant was found to

be performing inadequately, the Area

ONAP shall determine whether the

applicant has corrected the deficiency

or is following a schedule to correct

performance to which the applicant and

the Area ONAP have agreed. In cases of

previously documented deficient

performance, the Area ONAP must

determine that the applicant has taken

appropriate corrective action to improve

its performance prior to the application

due date.

(C) The Area ONAP will inform in

writing any potential applicant which

has been determined not to meet this

performance threshold no later than 30

days prior to the application due date.

If the performance threshold is not met

as of the application submission

deadline, an application will not be

accepted for rating and ranking.

(ii) Housing assistance. (A) The

applicant is presumed not to have taken

actions to impede the provision of

housing assistance for low and moderate

income members of the tribe or village.

Any action taken by the applicant to

prevent or obstruct the provision or

operation of assisted housing for low

and moderate income persons shall be

evaluated in terms of whether it

constitutes inadequate performance by

the applicant. If an applicant has

established or joined an Indian Housing

Authority (IHA), and this IHA has

obtained housing assistance from HUD,

the applicant’s compliance with the

obligations and responsibilities to the

IHA set forth in the tribal ordinance

which was the basis for the

establishment or joining of the IHA will

be a performance consideration.

(B) An applicant will not be held

accountable for the poor performance of

its IHA unless this inadequate

performance is found to be a direct

result of the applicant’s action or

inaction. Applicants which are members

of ‘‘umbrella’’ IHAs will be judged only

on their individual performance and

will not be held accountable for the

poor performance of other tribes that are

members of the IHA.

(C) If an applicant has received ICDBG

funds for the provision of new housing

through a subrecipient, the Area ONAP

will consider the following in making

its determination regarding housing

assistance performance:

(1) Whether the proposed units were

constructed;

(2) Whether housing assistance was

provided to the beneficiaries identified

in the funded application, and if not,

why not;

(3) Whether the applicant followed

the provisions of its housing plan and

procedures; and,

(4) Whether there were sustained

complaints from tribal members

regarding provision and/or distribution

of ICDBG housing assistance.

(D) The Area ONAP will inform in

writing any potential applicant which

has been determined not to meet the

housing assistance performance
17982 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

threshold no later than 30 days prior to

the application deadline.

(4) Audits. The thresholds described

in paragraphs (b)(2) and (b)(3) of this

section require the applicant to meet the

following performance criteria:

(i) The applicant cannot have an

outstanding ICDBG obligation to HUD or

an ICDBG program that is in arrears, or

it must have agreed to a repayment

schedule. An applicant that has an

outstanding ICDBG obligation that is in

arrears, or one that has not agreed to a

repayment schedule, will be

disqualified from the current

competition and from subsequent

competitions until the obligations are

current. If a grantee that was current at

the time of application submission

becomes delinquent during the review

period, the application may be rejected.

(ii) The applicant cannot have an

overdue or unsatisfactory response to an

audit finding. If there is an overdue or

unsatisfactory response to an audit

finding, the applicant will be

disqualified from the current and

subsequent competitions until the

applicant has taken final action

necessary to close the audit finding. The

Area ONAP administrator may provide

exceptions to this disqualification in

cases where the applicant has made a

good faith effort to clear the audit

finding. An exception may be granted

when funds are due HUD or an ICDBG

program as a result of a finding only

when a satisfactory arrangement for

repayment of the debt has been made

and payments are current.

(c) Community Development

Appropriateness. In order to rate and

rank a project contained in an

application that has passed the

screening tests outlined in Section V. of

this NOFA, Area ONAPs must

determine that the proposed project

meets the community development

appropriateness thresholds set forth

below:

(1) Costs are reasonable. The project

must be described in sufficient detail so

that the Area ONAP can determine:

(i) That costs are reasonable; and,

(ii) That the funds requested from the

ICDBG program and all other sources

are adequate to complete the proposed

activity(ies) described in the

application.

(2) Project is Appropriate. The project

is appropriate for the intended use.

(3) Project is Usable or Achievable.

The project is usable or achievable in a

timely manner, generally within a two

year period. The timetable for project

implementation and completion must

be set forth on the form HUD 4125—

Implementation Schedule, included in

the application. A period of more than

two years is acceptable in certain

circumstances, if it is established that

such circumstances are beyond the

applicant’s control.

VII. Summary of Selection System

Criteria and Point Awards

Maximum

points

Housing (Section VIII. of this NOFA)

(a) Rehabilitation

(1) Project Need and Design

(i) % of funds for standard rehab ... 20

(ii) applicant’s selection criteria ...... 10

(iii) housing survey .......................... 15

(2) Planning and Implementation

(i) rehabilitation policies

(A) rehabilitation standards ............. 5

(B) selection policies and procedures ........................................... 10

(C) project implementation policies

and procedures ........................... 10

(ii) post rehab maintenance ............ 5

(iii) cost estimates ........................... 15

(iv) cost effectiveness ..................... 5

(3) Leveraging ................................. 5

Total points .......................... 100

(b) Land to Support New Housing

(1) Project Need ............................. 40

(2) Planning and Implementation

(i) suitability of the land .................. 20

(ii) housing resources ..................... 10

(iii) supportive services ................... 5

(iv) commitment of households ...... 5

(v) land to trust status ..................... 5

(vi) infrastructure commitment ........ 10

(vii) land meets need and is reasonably priced ............................. 5

Total points .......................... 100

(c) New Housing Construction

(1) Project Need and Design

(i) IHA member/assistance ............. 15

(ii) housing policies and plan .......... 20

(iii) beneficiary identification ........... 10

(2) Planning and Implementation

(i) occupancy standards ................. 10

(ii) site acceptability ........................ 15

(iii) energy conservation design ...... 5

(iv) housing survey ......................... 10

(v) cost effectiveness ...................... 5

(3) Leveraging ................................. 10

Total points .......................... 100

Community Facilities (Section IX. of this

NOFA)

(a) Infrastructure

(1) Project Need and Design

(i) meets an essential need ............ 20

(ii) benefits the neediest ................. 15

(iii) provides infrastructure/health

and safety .................................... 25

(2) Planning and Implementation

(i) maintenance and operation plan 15

(ii) appropriate and effective design

scale and cost ............................. 15

(3) Leveraging ................................. 10

Maximum

points

Total points .......................... 100

(b) Buildings

(1) Project Need and Design

(i) meets an essential need ............ 20

(ii) benefits the neediest ................. 10

(iii) provides building/health and

safety ........................................... 25

(iv) multi-use/multi-benefit ............... 5

(2) Planning and Implementation

(i) maintenance and operation plan 15

(ii) appropriate and effective design

scale and cost ............................. 15

(3) Leveraging ................................. 10

Total points .......................... 100

Economic Development (Section X. of this

NOFA)

(a) Economic Development

(1) Organization .............................. 8

(2) Project Success

(i) market analysis .......................... 15

(ii) management capacity ............... 15

(iii) financial analysis ....................... 15

(3) Leveraging ................................. 12

(4) Jobs

(i) ICDBG cost/job ........................... 15

(ii) quality of jobs/training ................ 5

(5) Additional considerations .......... 15

Total points .......................... 100

VIII. Project Specific Thresholds and

Selection Criteria for Housing

(a) Specific threshold for housing

category projects. The applicant shall

provide an assurance that households

that have been evicted from HUD

assisted housing within the past five

years will not be assisted by the

proposed project except in emergency

situations. The Area ONAP

Administrator will review each

emergency situation proposed by an

applicant on a case-by-case basis to

determine whether an exception is

warranted.

(b) Rehabilitation Thresholds and

Grant Limits. (1) Thresholds. All

applicants for housing rehabilitation

grants shall adopt rehabilitation

standards and rehabilitation policies

prior to submitting an application.

These standards and policies must be

submitted with the application. The

applicant shall provide an assurance

that:

(i) Any house to be rehabilitated will

be the permanent non-seasonal

residence of the occupants; the residents

will live in the unit at least nine months

per year.

(ii) Houses designated for eventual

replacement will only receive repairs

essential for the health and safety of the

occupants.
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17983

(iii) Project funds will be used to

rehabilitate HUD assisted houses only

when the tenant/homeowner’s

payments are current or the tenant/

homeowner is current in a repayment

agreement that is subject to approval by

the Area ONAP. In emergency situations

the Area ONAP administrator may grant

exceptions to this requirement on a

case-by-case basis.

(iv) Houses that have received

comprehensive rehabilitation assistance

from any ICDBG or other Federal grant

program within the past 8 years will not

be assisted with ICDBG funds to make

the same repairs if the repairs are

needed as a result of abuse or neglect.

(2) Grant limits. Rehabilitation grant

limits for each Area ONAP jurisdiction

are as follows:

(i) Eastern/Woodlands .........................$15,000

(ii) Southern Plains..............................$20,000

(iii) Northern Plains.............................$33,500

(iv) Southwest ......................................$35,000

(v) Northwest .......................................$25,000

(vi) Alaska........Lesser of $45/sq.ft. or $35,000

(c) Selection Criteria for

Rehabilitation Projects.

(1) Project Need and Design. (45

points)

(i) The percentage of ICDBG funds

committed to bring the houses to be

assisted up to a standard condition as

defined by the applicant.

Administrative, planning, and technical

assistance expenditures are excluded in

computing the percentage of ICDBG

funds committed to bring the houses up

to a standard condition. The percentage

of ICDBG funds not used to bring the

houses up to a standard condition must

be used for emergency repairs,

demolition of substandard units or

another purpose closely related to the

housing rehabilitation project.

Percentage of ICDBG funds committed

to bring houses to be assisted up to a

standard condition:

91–100% ............................................20 points

81–90.9% ...........................................15 points

80.9 and less ........................................0 points

(ii) The applicant’s selection criteria

which are included in the application

give first priority to the neediest

households. ‘‘Neediest’’ is defined as

households whose houses are in the

greatest disrepair (but still suitable for

rehabilitation treatment) in the project

area, or very low-income households.

YES.....................................................10 points

NO ........................................................0 points

(iii) (A) Documentation of project

need with a housing survey of all of the

houses to be rehabilitated with ICDBG

funds. This survey should include

standard housing data on each house

surveyed (e.g., age, size, type, number of

rooms, number of habitable rooms,

number of bedrooms/sleeping rooms,

type of heating). The survey should

indicate the deficiencies for each house.

A definition of ‘‘suitable for

rehabilitation’’ must be included. At a

minimum, this definition must not

include houses that need only minor

repairs, or houses that need such major

repairs that rehabilitation is structurally

or financially infeasible.

(B) The application contains all the

required survey data and the required

definition of ‘‘suitable for

rehabilitation.’’ (15 points)

(C) The application does not contain

the required definition of ‘‘suitable for

rehabilitation’’ and/or all the survey

data, but does contain sufficient data to

enable the project to proceed effectively.

(10 points)

(D) The application does not contain

survey data or the survey data it does

contain is not sufficient to enable the

project to proceed effectively. (0 points)

(2) Planning and Implementation. (50

points)

(i) Rehabilitation Policies and

Procedures including:

(A) Adopted rehabilitation standards.

The rehabilitation standards adopted by

the applicant will ensure that after

rehabilitation the houses assisted will

be in a standard condition.

YES.......................................................5 points

NO ........................................................0 points

(B) Rehabilitation selection policies

and procedures. (1) The rehabilitation

selection policies and procedures

contained in the application include:

(i) Property selection standards;

(ii) Cost limits;

(iii) Type of financing (e.g., loan or

grant);

(iv) Homeowner costs and

responsibilities;

(v) Procedures for selecting

households to be assisted; and,

(vi) Income verification procedures.

(2) The application contains all the

rehabilitation selection policies and

procedures listed above. (10 points)

(3) The application does not contain

all the rehabilitation selection policies

and procedures listed above, but

contains sufficient data to enable the

project to proceed effectively or the

application contains all the

rehabilitation selection policies and

procedures listed above, but in

insufficient detail. (5 points)

(4) The application does not contain

the rehabilitation selection policies and

procedures listed above or if it does

contain policies and procedures, they

are not sufficient to enable the project

to proceed effectively. (0 points)

(C) Project implementation policies

and procedures. (1) These policies and

procedures must include a description

of the following items:

(i) The qualifications which will be

required of the inspector;

(ii) The inspection procedures to be

used;

(iii) The procedures to be used to

select the contractor or contractors;

(iv) The manner in which the

households to be assisted will be

involved in the rehabilitation process;

(v) How disputes between the

households to be assisted, the

contractors and the applicant will be

resolved; and, if applicable,

(vi) The repayment provisions which

will be required if sale of the assisted

house occurs prior to 5 years after the

rehabilitation work has been completed.

(2) The application contains all the

policies and procedures listed above,

and they will enable the project to be

effectively implemented. (10 points)

(3) The application contains some but

not all of the policies and procedures

listed above and these policies and

procedures are sufficient for the project

to proceed effectively. (5 points)

(4) The application does not contain

the policies and procedures listed

above. (0 points)

(ii) Post rehabilitation maintenance

policies that address counseling and

training assisted households on

maintenance. (A) The policies included

in the application contain a wellplanned counseling and training

program. Training will be provided for

assisted households, and provision is

made for households unable to do their

own maintenance (e.g., elderly and

persons with disabilities).

(B) The policies include follow-up

inspections after rehabilitation is

completed to ensure the house is being

maintained. (5 points)

(C) The policies contain a wellplanned home maintenance training and

counseling program but fail to

adequately address all of the items

listed above. (3 points)

(D) The application does not contain

a well-planned home maintenance

training and counseling program. (0

points)

(iii) Quality of cost estimates. (A) Cost

estimates have been prepared by a

qualified individual (Qualifications of

the estimator must be included in the

application). Costs of rehabilitation are

documented on a per house basis and

are supported by a work write-up for

each house to be assisted. The work

write-ups are based upon making those

repairs necessary to bring the houses to

a standard condition in a manner

consistent with adopted construction

codes and requirements. The write-ups

must be submitted with the application.
17984 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

If national standards (e.g., the Uniform

Building Code) have been locally

adopted as the construction codes and

requirements, they must be referenced.

If locally developed and adopted codes

and requirements are used, they must be

submitted. (15 points)

(B) Cost estimates have been prepared

for each house to be rehabilitated to

determine the total rehabilitation cost.

The cost estimates are included in the

application. Costs to rehabilitate each

house are documented by a deficiency

list. (12 points)

(C) Cost estimates have been prepared

and are included in the application but

the estimates are based on surveys and

not on individual house deficiency lists.

(5 points)

(D) Cost estimates are not included in

the application or the basis for the cost

estimates included is inappropriate or

not provided. (0 points)

(iv) Cost effectiveness of the

rehabilitation program. (A) This is a

measure of how efficiently and

effectively funds will be used under the

proposed program. Applicants must

demonstrate how the proposed

rehabilitation will bring the houses to be

assisted to a standard condition in an

efficient and cost effective manner.

(B) Rehabilitation project is cost

effective. (5 points)

(C) Rehabilitation project is not cost

effective. (0 points)

(3) Leveraging. (5 points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG % of project cost Points

25 and over ..................................... 5

20–24.9 ........................................... 4

15–19.9 ........................................... 3

10–14.9 ........................................... 2

5–9.9 ............................................... 1

0–4.9 ............................................... 0

(d) Thresholds for Land to Support

New Housing. (1) The application

contains information and

documentation which establishes that

there is a reasonable ratio between the

number of net usable acres to be

acquired and the number of low and

moderate income households with

documented housing needs.

(2) Housing assistance needs must be

clearly demonstrated and documented

with either a survey that identifies the

households to be served, their size,

income levels and the condition of

current housing or an IHA approved

waiting list. The survey or waiting list

must be submitted with the application.

(e) Selection Criteria for Land to

Support New Housing.

(1) Project Need and Design. (40

Points)

Information included in the application

establishes that:

(i) The applicant has no suitable land

for the construction of new housing and

the necessary infrastructure and

amenities for this housing. (40 points);

or,

(ii) The applicant has land suitable for

housing construction and needed

infrastructure and amenities, but the

land is officially dedicated to another

purpose. (30 points); or,

(iii) The applicant will be acquiring

land for housing construction and the

construction of needed infrastructure

and amenities for both new and existing

housing. (25 points); or,

(iv) The applicant will be acquiring

land for the construction of amenities

for existing housing. (15 points); or,

(v) The reason for the land acquisition

does not meet any of the criteria listed

above. (0 points)

(2) Planning and Implementation. (60

points)

(i) Suitability of land to be acquired.

A preliminary investigation has been

conducted by a qualified entity

independent of the applicant. Based on

this investigation (which must be

submitted with the application), the

land appears to meet all applicable

requirements:

(A) Soil conditions appear to be

suitable for individual and/or

community septic systems or other

acceptable methods for waste water

collection and treatment have been

identified.

(B) The land has adequate:

(1) Availability of drinking water;

(2) Access to utilities;

(3) Vehicular access;

(4) Drainage;

(C) The land appears to comply with

environmental requirements. Future

development costs are expected to be

consistent with other subdivision

development costs in the area

(subdivision development costs include

the costs of the land, housing

construction, water and sewer, electrical

service, roads, and drainage facilities if

required).

YES.....................................................20 points

NO ........................................................0 points

(ii) Housing resources. (A) Evidence

of a conditional commitment for at least

25 percent of the housing units to be

built on the land proposed for

acquisition or evidence that an

approvable application for these units

has been submitted has been included

in the application. (10 points)

(B) The evidence required for the

award of 10 points has not been

included in the application. (0 points)

(iii) Availability/accessibility of

supportive services and employment

opportunities. Documentation is

provided in the application to indicate

that upon completion of construction of

the housing to be built on the land to

be acquired, fire and police protection

will be available to the site and medical

and social services, schools, shopping,

and employment opportunities will be

accessible from the site according to the

community’s established norms.

YES.......................................................5 points

NO ........................................................0 points

(iv) Commitment that households will

move into the new housing.

Documented commitment from

households that they will move into the

new housing to be built on the land to

be acquired is included in the

application.

YES.......................................................5 points

NO ........................................................0 points

(v) Land to trust status. (A) Land can

be taken into trust or provisions have

been made for taxes and fees. There

must be a written assurance from the

BIA that the land will be taken into trust

or the applicant must demonstrate the

financial capability and commitment to

pay the property taxes and fees on the

land for any period of time during

which it anticipates it will own the

property in fee. This commitment must

be in the form of a resolution by the

governing body of the applicant which

indicates that the applicant will pay or

guarantee that all taxes and fees on the

land will be paid.

(B) Documentation from the BIA that

land can be taken into trust or the

required governing body resolution is

included in the application. (5 points)

(C) Either the assurance or the

resolution are missing from the

application or they are inadequate. (0

points)

(vi) Infrastructure commitment. (A) A

plan or commitment for any

infrastructure needed to support the

housing to be built on the land to be

acquired has been included in the

application. The plan or commitment

must address water, waste water

collection and treatment, electricity,

roads, and drainage facilities necessary

to support the housing to be developed.

(B) Financial commitments for all

necessary infrastructure have been

included in the application or

documentation is included which

demonstrates that all necessary

infrastructure is in place. (10 points)

(C) A plan for the provision of all

necessary infrastructure is included in
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17985

the application but all financial

commitments required to implement the

plan have not been submitted. (5 points)

(D) Neither a financial commitment or

plan are included in the application. (0

points)

(vii) The extent to which the site

proposed for acquisition meets the

housing needs of the applicant and is

reasonably priced. The application

includes documentation which

indicates that the applicant has

examined and assessed the

appropriateness of alternative sites and

which demonstrates that the site

proposed for acquisition best meets the

documented housing needs of tribal

households. The application must

include comparable sales data which

shows that the cost of the land proposed

for acquisition is reasonable.

Yes........................................................5 points

No.........................................................0 points

(f) Thresholds for New Housing

Construction. The following thresholds

and the selection criteria set forth in

paragraph (g) of this section apply to

new housing construction to be

implemented through a CommunityBased Development Organization

(CBDO) as provided for under 24 CFR

953.204. Please note that all households

to be assisted under a new housing

construction project must be of low or

moderate income status.

(1) New housing construction can

only be implemented through a

Community-Based Development

Organization (CBDO). Eligible CBDOs

are described in 24 CFR 953.204(c). The

applicant must provide an assurance

that it understands this requirement.

(2) Documentation which supports the

following determinations must be

included in the application:

(i) No other housing is available in the

immediate reservation area that is

suitable for the households to be

assisted;

(ii) No other funding sources can meet

the needs of the household(s) to be

served.

(iii) The house occupied by the

household to be assisted is not in

standard condition and rehabilitation is

not economically feasible, or the

household is currently in an

overcrowded house [sharing house with

another household(s)], or the household

to be assisted has no current residence.

(3) All applicants for new housing

construction projects shall adopt

construction standards and construction

policies prior to submitting an

application. Applicants must identify

the building code to be used when

constructing the houses and must

document that this code has been

adopted. The building code may be a

tribal building code or a nationally

recognized model code. If it is a tribal

code it must regulate all of the areas and

subareas identified in 24 CFR 200.925b,

and it must be reviewed and approved

by the Area ONAP. If the code is

recognized nationally, it must be the

latest edition of one of the codes

incorporated by reference in 24 CFR

200.925c.

(4) The applicant must provide an

assurance that any house to be

constructed will be the permanent nonseasonal residence of the household to

be assisted; this household must live in

the house at least nine months per year.

(g) Selection Criteria for New Housing

Construction.

(1) Project Need and Design. (45

points)

(i) IHA member/assistance. (A) The

application includes documentation

which establishes that the applicant

either is not served by an Indian

Housing Authority (IHA), or if it is a

member of an umbrella IHA, this IHA

has not provided assistance to the

applicant in a substantial period of time,

or the IHA serving the applicant has not

received HUD Public and Indian

Housing new construction assistance in

a substantial period of time due to

limited HUD appropriations. The period

of time during which the IHA serving

the applicant has not received funding

for inadequate or poor performance by

the applicant does not count towards

the period of time that no assistance has

been provided by HUD.

(B) No assistance from IHA for 10

years or longer. (15 points)

(C) No assistance from IHA for 6–9

years, 11 months. (10 points)

(D) No assistance from IHA for 0–5

years, 11 months. (0 points)

(ii) Adopted housing construction

policies and plan. (A) The plan must

include a description of the proposed

CBDO and its relationship (or proposed

relationship) to the applicant. In

addition, the policies and plan must

include:

(1) A selection system that gives

priority to the neediest households.

Neediest shall be defined as households

whose current residences are in the

greatest disrepair, or very low-income

households, or households without

permanent housing.

(2) A system effectively addressing

long-term maintenance of the

constructed houses.

(3) Estimated costs and identification

of the entity responsible for paying

utilities, fire hazard insurance and other

normal maintenance costs.

(4) Policies governing ownership of

the houses, including the status of the

land.

(5) Description of a comprehensive

plan or approach being implemented by

the tribe to meet the housing needs of

its members.

(6) Policies governing disposition or

conversion to non-dwelling uses of

substandard houses that will be vacated

when a replacement house is provided.

(B) The policies and plan include all

of the information listed above. (20

points)

(C) The policies and plan do not

include all of the information listed

above, but do include sufficient

information to allow the project to

proceed effectively or, all of the

information is included, but in

insufficient detail. (10 points)

(D) The information included in the

application is not sufficient to meet the

requirements for the award of 10 points.

(0 points)

(iii) Beneficiary identification. (A)

Households to be assisted are identified

in the application and their income

eligibility and household size are

documented. (10 points)

(B) Households to be assisted are not

identified or, if identified, their income

eligibility and household size are not

documented. (0 points)

(2) Planning and Implementation. (45

points)

(i) Occupancy Standards. (A) The

proposed housing will be designed and

built according to adopted reasonable

standards that govern the size of the

housing in relation to the size of the

occupying household (minimum and

maximum number of persons allowed

for the number of sleeping rooms); the

minimum and maximum square footage

allowed for major living spaces

(bedrooms, living room, kitchen and

dining room). The standards must be

submitted with the application.

(B) Applicant has adopted reasonable

occupancy standards which are

included in the application. (10 points)

(C) Applicant has not adopted

reasonable occupancy standards or the

standards were not included in the

application. (0 points)

(ii) Site Acceptability. (A) The

applicant (or the proposed beneficiary

household) has control of the land upon

which the houses will be built. The

application includes documentation

that all housing sites are in trust or

documentation from the BIA that the

sites will be taken into trust within one

year of the date of the ICDBG approval

notification. If the sites are not in trust

by the date of ICDBG approval

notification, documentation that they

are in trust must be provided to the Area
17986 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

ONAP before ICDBG funds may be

obligated for construction.

(B) A preliminary investigation of the

site(s) has been conducted by a qualified

entity independent of the applicant.

Based on this investigation (which must

be included in the application) the

site(s) appear to meet all applicable

requirements:

Soil conditions appear to be suitable

for individual or community septic

systems or other acceptable methods for

waste water collection and treatment

have been identified;

(1) Each site has adequate:

(2) Availability of drinking water

(3) Access to utilities

(4) Vehicular access

(4) Drainage;

(5) Each site appears to comply with

environmental requirements.

YES.....................................................15 points

NO ........................................................0 points

(iii) Energy Conservation Design. The

application includes documentation

which demonstrates that the proposed

houses have been designed in a manner

which will ensure that energy use will

be no greater than that for comparable

houses in the same general geographic

area that have been constructed in

accordance with applicable state energy

conservation standards for residential

construction. Any special design

features, materials, or construction

techniques which enhance energy

conservation must be described.

YES.......................................................5 points

NO ........................................................0 points

(iv) Housing Survey. (A) The

applicant has completed a survey of

housing conditions and housing needs

of its tribal members. This survey was

completed within the twelve month

period prior to the application

submission deadline (or if an earlier

survey, it was updated during this time

period). The survey must be submitted

with the application. The following

descriptive data is included for each

household surveyed:

(1) Size of the household, inc. age and

gender of any children.

(2) Is the household occupying

permanent housing or is it homeless?

(3) Annual household income.

(4) Owner or renter.

(5) Number of habitable rooms and

number of sleeping rooms.

(6) Physical condition of the house—

standard/substandard. If substandard, is

it suitable for rehabilitation? A

definition of ‘‘suitable for

rehabilitation’’ must be included.

(7) Number of distinct households

occupying the house/degree of

overcrowding.

(8) If there is a need for a replacement

house, what are the housing preferences

of the household, e.g. ownership or

rental; location; manufactured or stickbuilt.

(B) An acceptable survey was

submitted. (10 points)

(C) The survey submitted was not

acceptable or no survey was submitted.

(0 points)

(v) Cost effectiveness of new housing

construction. (A) This is a measure of

how efficiently and effectively funds

will be used under the proposed

program. Applicants must demonstrate

how the proposed housing activities

will be accomplished in an efficient and

cost effective manner.

(B) The applicant has demonstrated

that the proposed activities are cost

effective. (5 points)

(C) The applicant has not

demonstrated that the proposed

activities are cost effective. (0 points)

(3) Leveraging. (10 points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG % of project cost Points

25 and over ..................................... 10

20–24.9 ........................................... 8

15–19.9 ........................................... 6

10–14.9 ........................................... 4

5–9.9 ............................................... 2

0–4.9 ............................................... 0

IX. Project Specific Thresholds and

Selection Criteria for Community

Facilities

(a) Infrastructure Selection Criteria.

(1) Project Need and Design. (60

points)

(i) Meets an essential need. (A) The

application includes documentation

which demonstrates that the proposed

project meets an essential community

development need by fulfilling a

function that is critical to the continued

existence or orderly development of the

community.

(B) The proposed project will fulfill a

function which is critical to the

continued existence or orderly

development of the community. (20

points)

(C) The proposed project will fulfill a

function which is not critical to the

continued existence or orderly

development of the community. (0

points)

(ii) Benefits the neediest. (A) The

proposed project benefits the neediest

segment of the population, as identified

below. Applications must include

information which demonstrates that

income data was collected in a

statistically reliable and independently

verifiable manner and that:

(B) 85 percent or more of the

beneficiaries are low and moderate

income. (15 points)

(C) Between 75–84.9 percent of the

beneficiaries are low and moderate

income. (10 points)

(D) Between 55–74.9 percent of the

beneficiaries are low and moderate

income. (5 points)

(E) Less than 55 percent of the

beneficiaries are low and moderate

income. (0 points)

(iii) Provides infrastructure/health

and safety. (A) The application includes

documentation which demonstrates that

the proposed project will provide

infrastructure that does not currently

exist for the area to be served or it will

eliminate or substantially reduce a

health or safety threat or problem or it

will replace existing infrastructure that

no longer functions adequately to meet

current needs.

(B) The infrastructure does not exist

or the existing infrastructure no longer

functions or the existing infrastructure

does not contribute to the elimination

of, or causes, a verified health or safety

threat or problem. (25 points)

(C) The existing infrastructure no

longer functions adequately to meet

current needs or is unreliable. (20

points)

(D) The proposed project will replace

or supplement existing infrastructure

which is adequate for current needs but

which will not meet acknowledged

future needs. (12 points)

(E) The proposed project will replace

or supplement existing infrastructure

which is adequate to meet current needs

and future needs have not been

acknowledged or documented. (0

points)

(F) If the project is intended to

address a health or safety threat or

problem, the applicant must provide

documentation consisting of a signed

study or letter from a qualified

independent authority which verifies

that:

(1) A threat to health or safety (or a

health or safety problem) exists which

has caused or has the potential to cause

serious illness, injury, disease, or death;

and,

(2) The threat or problem can be

completely or substantially eliminated if

the proposed project is undertaken.

(2) Planning and Implementation. (30

points)

(i) A viable plan for maintenance and

operation. (A) If the applicant is to

assume responsibility for maintenance

and operation of the proposed facility,

the applicant must adopt a maintenance
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17987

and operation plan which addresses

maintenance, repair and replacement of

items not covered by insurance, and

which clearly identifies operating

responsibilities and resources. This plan

and the adopting resolution must be

included in the application. The plan

must identify a funding source to ensure

that the facility will be properly

maintained and operated. The

resolution adopting the plan must

identify the total annual dollar amount

the applicant will commit.

(B) If an entity other than the

applicant commits to pay for

maintenance and operation, a letter of

commitment which identifies the

responsibilities the entity will assume

and which documents its financial

ability to assume these responsibilities

must be included in the application;

submission of a maintenance and

operation plan is not required. Points

will only be awarded if the Area ONAP

is able to determine that the entity is

financially able to assume the costs of

maintenance and operation.

(C) An acceptable maintenance and

operation plan and adopting resolution

(or letter of commitment) are included

in the application. (15 points)

(D) The plan, resolution or the

commitment letter have not been

included in the application or if

included they are not acceptable. (0

points)

(ii) An appropriate and effective

design, scale and cost. (A) The

application includes information which

demonstrates that the proposed project

is the most appropriate and cost

effective approach to address the

identified need. This information

demonstrates that the use of existing

facilities and resources, and

alternatives, including method of

implementation and cost, have been

considered. If only one approach is

feasible (there are no alternatives to the

proposed project), the application must

include an explanation.

(B) The required information is

included in the application. (15 points)

(C) The required information is not

included in the application or, if

included, it is unacceptable. (0 points)

(3) Leveraging. (10 points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG % of project cost Points

25 and over ..................................... 10

20–24.9 ........................................... 8

15–19.9 ........................................... 6

10–14.9 ........................................... 4

Non-ICDBG % of project cost Points

5–9.9 ............................................... 2

0–4.9 ............................................... 0

(b) Threshold for Buildings. An

applicant proposing a facility which

would provide health care services

funded by the Indian Health Service

(IHS) must assure that the facility meets

all applicable IHS facility requirements.

It is recognized that tribes that are

contracting services from the IHS may

establish other facility standards. These

tribes must assure that these standards

at least compare to nationally accepted

minimum standards.

(c) Selection Criteria for Buildings. (1)

Project Need and Design. (60 points)

(i) Meets an essential need. (A) The

application includes documentation

that the proposed building meets an

essential community development need

by providing space so that a service or

function which is critical to the

continued existence or orderly

development of the community can be

provided.

(B) The proposed building will

provide space for a service or function

which is essential to the continued

existence or orderly development of the

community. (20 points)

(C) The proposed building will

provide space for a service or function

which is not critical to the continued

existence or orderly development of the

community. (0 points)

(ii) Benefits the neediest. The

proposed project benefits the neediest

segment of the population, as identified

below. Applications must include

information which demonstrates that

income data was collected in a

statistically reliable and independently

verifiable manner and that:

(A) 85 percent or more of the

beneficiaries are low and moderate

income. (10 points)

(B) Between 75–84.9 percent of the

beneficiaries are low and moderate

income. (8 points)

(C) Between 55–74.9 percent of the

beneficiaries are low and moderate

income. (5 points)

(D) Less than 55 percent of the

beneficiaries are low and moderate

income. (0 points)

(iii) Provides building/health and

safety. (A) The application includes

documentation which demonstrates that

the proposed building will be used to

provide services or functions which are

not provided to service area

beneficiaries or it will replace a building

which does not meet health or safety

standards which is currently being used

to provide the service or function or it

will replace a building which is no

longer able to provide the space or

amenities to meet the current need for

the services or functions.

(B) The services or functions to be

provided in the proposed building do

not exist for the service area population

or the building currently being used

does not meet health or safety

standards. (25 points)

(C) The building to be replaced by the

proposed building is not able to provide

the space or amenities for the services

or functions so that current needs

cannot be entirely met. (20 points)

(D) The building to be replaced is able

to provide adequate space and current

needs are being met but it cannot

provide space for acknowledged future

needs. (10 points)

(E) The proposed building is not

necessary since current needs and

acknowledged future needs can be met

through the use of existing facilities. (0

points)

(F) If the proposed building is

intended to replace an existing building

which does not meet health or safety

standards, the application must include

documentation consisting of a signed

letter from a qualified independent

authority which specifically identifies

the standard or standards which are not

being met by the existing building.

(iv) Multi-use/multi-benefit. (A)

Provides multiple uses or multiple

benefits, or has services available 24

hours a day. The application must show

that the proposed building will house

more than one broad category of activity

or that services would be provided out

of the building 24 hours a day. A written

commitment for the use of the space

must be included in the application.

‘‘Broad category’’ means a single activity

or group of activities which serves a

particular group of beneficiaries (e.g.,

senior citizens) or meets a particular

need (e.g., literacy). No one category of

activity will occupy more than 75

percent of the available space for more

than 75 percent of the time.

Multipurpose buildings do not

automatically meet these criteria, nor do

buildings that provide a variety of

activities for one client group.

(B) The proposed building will

provide multiple uses or benefits or will

have services available 24 hours/day

and a commitment for the use of the

space is included in the application. (5

points)

(C) The proposed building will not

provide multiple benefits or services or

will not have services available 24 hours

a day or the application does not

include a commitment for the use of the

space. (0 points)

(2) Planning and Implementation. (30

points)
17988 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

(i) A viable plan for maintenance and

operation. (A) If the applicant is to

assume responsibility for the

maintenance and operation of the

proposed building, the applicant must

adopt a maintenance and operation plan

which addresses maintenance, repair

and replacement of items not covered by

insurance, and which clearly identifies

operating responsibilities and resources.

This plan and the adopting resolution

must be included in the application.

The plan must identify a funding source

to ensure that the building will be

properly maintained and operated. The

resolution adopting the plan must

identify the total annual dollar amount

the applicant will commit.

(B) If an entity other than the

applicant commits to pay for

maintenance and operation, a letter of

commitment which identifies the

responsibilities the entity will assume

and which documents its financial

ability to meet these responsibilities

must be included in the application;

submission of a maintenance and

operation plan is not required. Points

will only be awarded if the Area ONAP

is able to determine that the entity is

financially able to assume the costs of

maintenance and operation.

(C) An acceptable maintenance and

operation plan and adopting resolution

(or letter of commitment) are included

in the application. (15 points)

(D) The plan, resolution or the

commitment letter have not been

included in the application, or if

included, they are not acceptable. (0

points)

(ii) An appropriate and effective

design, scale and cost. (A) The

application includes information which

demonstrates that the proposed building

is the most appropriate and cost

effective approach to address the

identified need(s). This information

demonstrates that the use of existing

facilities and resources and alternatives,

including method of implementation

and cost, have been considered. If only

one approach is feasible (there are no

alternatives to the proposed building),

the application must include an

explanation.

(B) The required information is

included in the application. (15 points)

(C) The required information is not

included in the application or, if

included, it is unacceptable. (0 points)

(3) Leveraging. (10 points)

Points under this component will be

awarded based on the definition of

‘‘Leverage’’ included in this NOFA and

the following breakdown:

Non-ICDBG % of Project Cost Points

25 or more ...................................... 10

20–24.9 ........................................... 8

15–19.9 ........................................... 6

10–14.9 ........................................... 4

5–9.9 ............................................... 2

0–4.9 ............................................... 0

X. Project Specific Thresholds and

Selection Criteria for Economic

Development

(a) Thresholds for Economic

Development. (1) Economic

development assistance may be

provided only when a financial analysis

is provided which shows public benefit

commensurate with the assistance to the

business can reasonably be expected to

result from the assisted project.

(2) The analysis should also establish

that to the extent practicable: reasonable

financial support will be committed

from non-Federal sources prior to

disbursement of Federal funds; any

grant amount provided will not

substantially reduce the amount of nonFederal financial support for the

activity; not more than a reasonable rate

of return on investment is provided to

the owner; and, that grant funds used

for the project will be disbursed on a

pro-rata basis with amounts from other

sources. In addition, it must be

established that the project is financially

feasible and has a reasonable chance of

success.

(b) Selection Criteria for Economic

Development.

(1) Organization. (8 points)

(A) The application contains

information and documentation which

addresses all of the following three

elements (Maximum: 8 points):

(1) The applicant (or entity to be

assisted) has an established organization

system for operation of a business, (e.g.,

adopted tribal ordinances, articles of

incorporation, Board of Directors in

place, tribal department).

(2) Formal provisions exist for

separation of government functions

from business operating decisions. An

operating plan has been established and

is submitted.

(3) The Board of Directors consists of

persons who have prior business

experience. A staffing plan has been

developed and is submitted.

(B) The application contains all of the

first element listed above, and some of

the items in the second and third

elements or, the application contains all

of the elements listed above, but in

insufficient detail. The business should

be able to operate effectively. (Moderate:

5 points)

(C) The application does not meet the

criteria for the award of moderate

points. (Unsatisfactory: 0 Points)

(2) Project Success. (45 points)

The project will be rated on the

adequacy and quality of the information

included in the application which

addresses the following criteria: ANY

PROJECT NOT RECEIVING AT LEAST

MODERATE POINTS IN EACH OF THE

FOLLOWING THREE RATING

FACTORS WILL NOT BE CONSIDERED

FOR FUNDING.

(i) Market analysis. (A) A feasibility/

market analysis, generally not older

than two years, which identifies the

market and demonstrates that the

proposed activities are highly likely to

capture a fair share of the market. The

analysis must be submitted with the

application. (Maximum: 15 points)

(B) A feasibility/market analysis

which identifies the market and

demonstrates that the proposed

activities are reasonably likely to

capture a fair share of the market. The

analysis must be submitted with the

application. (Moderate: 10 points)

(C) The submission does not meet the

criteria for the award of moderate

points. (Unsatisfactory: 0 points)

(ii) Management capacity. (A) A

management team with qualifying

specialized training or technical/

managerial experience in the operation

of a similar business has been

identified. Job descriptions of key

management positions as well as

resumes showing qualifying specialized

technical/managerial training or

experience of the identified

management team must be submitted

with the application. (Maximum: 15

points)

(B) A management team with

qualifying general business training or

experience will be hired if the grant is

approved. Job descriptions of key

management positions must be

submitted with the application.

(Moderate: 12 points)

(C) The submission does not meet the

criteria for the award of 12 points.

(Unsatisfactory: 0 points)

(iii) Financial Analysis of the

Business. (A) The financial viability of

a project will be determined by an

analysis of financial and other project

related information. For all proposed

projects, the following must be

submitted:

(1) A detailed cost summary for the

project;

(2) Evidence of funding sources;

(3) Five year operating or cash flow

financial projections. If the project

involves the expansion of an existing

business, financial statements for the

most recent three year period for the
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices 17989

business must also be submitted with

the application (financial statements

include the balance sheet, income

statement and statement of retained

earnings). For start-up businesses that

will not be owned by the grantee,

current financial or net worth

statements of principal business owners

or officers must also be submitted with

the application.

(B) The information derived from the

analysis will be reviewed and compared

to local or national industry standards

to assess reasonableness of development

costs, financial need, profitability, and

risk as factors in determining overall

financial viability. In determining

whether a project is financially viable,

the Area ONAP will also consider

current and projected market conditions

and profitability measures such as cash

flow return on equity, cash flow return

on total assets and the ratio of net profit

before taxes to total assets. Sources of

industry standards include Marshall

and Swift Publication Company, Robert

Morris Associates, Dun and Bradstreet,

the Chamber of Commerce, etc. Local

standards may also be used. If one of

these standards is cited by the

applicant, the appropriate data must be

submitted with the application.

(C) Based on the analysis:

(1) The project has an excellent

chance of achieving financial success.

(Maximum: 15 points)

(2) The project has an average chance

of achieving financial success.

(Moderate: 8 points)

(3) The project has a minimal

prospect of achieving financial success.

(Unsatisfactory: 0 points)

(3) Leveraging. Points under this

component will be awarded in a manner

consistent with the definition of

‘‘Leverage’’ included in this NOFA and

the following breakdown:

Non-ICDBG % of Project Cost Points

30% or more ....................................... 12

20–29.9% ............................................ 8

10–19.9% ............................................ 4

less than 10% ..................................... 0

(4) Permanent Full-Time Equivalent

Job Creation and Training. (20 points).

(A) The total number of permanent fulltime equivalent jobs expected to be

created and/or retained as a result of the

project as well as a summary of job

descriptions must be identified or

included in the application. Retained

jobs will not be counted unless clear

evidence is provided that these jobs

would be lost without the project. The

number and kind(s) of jobs expected to

be available to low and moderate

income persons must be identified.

(B) ICDBG cost per job:

$30,000 or less ...................................15 points

$30,001–40,000..................................12 points

$40,001–45,000....................................8 points

$45,001+ ..............................................0 points

(C) Quality of jobs and/or training

targeted to low and moderate income

persons:

(1) The jobs offer wages and benefits

comparable to area wages and benefits

for similar jobs, provide opportunity for

advancement, and teach a transferable

skill; OR

(2) The employer commits to provide

training opportunities. A description of

the planned training program must be

submitted with the application.

YES.......................................................5 points

NO ........................................................0 points

(5) Additional Considerations. (15

points)

A project must meet three of the

following criteria to receive 15 points.

(Maximum: 15 points)

(A) Use, improve or expand members’

special skills. Special skills are those

that members have developed through

education, training or traditional

cultural experiences.

YES.......................................................5 points

NO ........................................................0 points

(B) Provide spin-off benefits beyond

the initial economic development

benefits to employees or to the

community.

YES.......................................................5 points

NO ........................................................0 points

(C) Provide special opportunities for

residents of Federally-assisted housing.

YES.......................................................5 points

NO ........................................................0 points

(D) Provide benefits to other

businesses owned by Indians or Alaska

natives.

YES.......................................................5 points

NO ........................................................0 points

(E) Loan Repayment/Reuse of ICDBG

funds. If the business is not tribally

owned, at least 50% of the ICDBG

assistance to the business will be repaid

to the grantee within a 10 year period.

If the business is tribally owned, the

tribe agrees (by submission of a tribal

resolution) within a 10 year period to

use funds equal to 50% of the ICDBG

assistance for eligible activities that

meet a national objective. These funds

should come from the profits of the

tribally owned business.

YES.......................................................5 points

NO ........................................................0 points

XI. Error and Appeals

Rating panel judgements made within

the provisions of this NOFA and the

program regulations (24 CFR 953) are

not subject to claims of error.

Applicants may bring arithmetic errors

in the rating and ranking of applications

to the attention of an Area ONAP within

30 days of being informed of their score.

If an Area ONAP makes an arithmetic

error in the application review and

rating process which, when corrected,

would result in the award of sufficient

points to warrant the funding of an

otherwise approvable project, the Area

ONAP may fund that project in the next

funding round without further

competition.

XII. Findings and Certifications

Paperwork Reduction Act. The

information collection requirements

contained in this Notice have been

approved by the Office of Management

and Budget in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501–3520), and assigned OMB

control number 2577–0191. An agency

may not conduct or sponsor, and a

person is not required to respond to, a

collection of information unless the

collection displays a valid control

number.

Environmental Impact. This NOFA

provides funding under, and does not

alter environmental requirements of

regulations in 24 CFR part 953.

Accordingly, under 24 CFR 50.19(c)(5),

this NOFA is categorically excluded

from environmental review under the

National Environmental Policy Act of

1969 (42 U.S.C. 4321).

Recipient Compliance with

Environmental Requirements. In

accordance with 24 CFR 953.605, a

recipient must comply with the

environmental review requirements of

24 CFR part 58, including limitations on

the commitment of project funds before

submission of a request for release of

funds.

Federalism Executive Order. The

General Counsel, as the Designated

Official under section 6(a) of Executive

Order 12612, Federalism, has

determined that this NOFA will not

have substantial, direct effects on states,

on their political subdivisions, or on

their relationship with the Federal

Government, or on the distribution of

power and responsibilities between

them and other levels of government.

While the NOFA will provide financial

assistance to Indian tribes and Alaska

native villages, none of its provisions

will have an effect on the relationship

between the Federal Government and

the states or their political subdivisions.

Family Executive Order. The General

Counsel, as the Designated Official for

Executive Order 12606, The Family, has

determined that the policies announced
17990 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Notices

in this NOFA would not have the

potential for significant impact on

family formation, maintenance and

general well-being and thus not subject

to review under the Order.

Prohibition of Advance Disclosure of

Funding Decisions. HUD’s regulation

implementing section 103 of the

Department of Housing and Urban

Development Reform Act of 1989,

codified as 24 CFR part 4, applies to the

funding competition announced today.

The requirements of the rule continue to

apply until the announcement of the

selection of successful applicants.

HUD employees involved in the

review of the applications and in the

making of funding decisions are limited

by part 4 from providing advance

information to any person (other than an

authorized employee of HUD)

concerning funding decisions, or from

otherwise giving any applicant an unfair

competitive advantage. Persons who

apply for assistance in this competition

should confine their inquiries to the

subject areas permitted under 24 CFR

part 4.

Applicants who have ethics related

questions should contact HUD’s Ethics

Law Division (202) 708–3815. (This is

not a toll-free number.)

Economic Opportunities for Low and

Very Low Income Persons. All

applicants are herein notified that the

provisions of section 3 of the Housing

and Urban Development Act of 1968, as

amended, and the regulations in 24 CFR

part 135 are applicable to funding

awards made under this NOFA. One of

the purposes of the assistance is to give

to the greatest extent feasible, and

consistent with existing Federal, State,

and local laws and regulations, job

training, employment, contracting and

other economic opportunities to section

3 residents and section 3 business

concerns. Tribes that receive HUD

assistance described in this part shall

comply with the procedures and

requirements of this part to the

maximum extent consistent with, but

not in derogation of, compliance with

section 7(b) of the Indian Selfdetermination and Education Assistance

Act (25 U.S.C. 450e(b).

Prohibition Against Lobbying

Activities. Applicants for funding under

this NOFA are subject to the provisions

of Section 319 of the Department of

Interior and Related Agencies

Appropriation Act for Fiscal Year 1991,

31 U.S.C. Section 1352 (the Byrd

Amendment) and to the provisions of

the Lobbying Disclosure Act of 1995,

P.L. 104–65 (December 19, 1995).

The Byrd Amendment, which is

implemented in regulations at 24 CFR

Part 87, prohibits applicants for Federal

contracts and grants from using

appropriated funds to attempt to

influence Federal Executive or

legislative officers or employees in

connection with obtaining such

assistance, or with its extension,

continuation, renewal, amendment or

modification. The Byrd Amendment

applies to the funds that are the subject

of this NOFA. Therefore, applicants

must file a certification stating that they

have not made and will not make any

prohibited payments and, if any

payments or agreement to make

payments of nonappropriated funds for

these purposes have been made, a form

SF-LLL disclosing such payments must

be submitted. The certification and the

SF-LLL are included in the application

package.

The Lobbying Disclosure Act of 1995,

P.L. 104–65 (December 19, 1995), which

repealed Section 112 of the HUD Reform

Act and resulted in the elimination of

the regulations at 24 CFR Part 86,

requires all persons and entities who

lobby covered Executive or Legislative

Branch officials to register with the

Secretary of the Senate and the Clerk of

the House of Representatives and file

reports concerning their lobbying

activities. IHAs established by an Indian

tribe as a result of the exercise of the

tribe’s sovereign power are excluded

from coverage of the Byrd Amendment,

but IHAs established under State law

are not excluded from the statute’s

coverage.

Section 102 of the HUD Reform Act—

Documentation, Access, and Disclosure.

Section 102 of the Department of

Housing and Urban Development

Reform Act of 1989 (HUD Reform Act)

and the final rule codified at 24 CFR

part 4, subpart A, published on April 1,

1996 (61 FR 1448), contain a number of

provisions that are designed to ensure

greater accountability and integrity in

the provision of certain types of

assistance administered by HUD. On

January 14, 1992 (57 FR 1942), HUD

published a notice that also provides

information on the implementation of

section 102. The documentation, public

access, and disclosure requirements of

section 102 are applicable to assistance

awarded under this NOFA as follows:

(a) Documentation and public access

requirements. HUD will ensure that

documentation and other information

regarding each application submitted

pursuant to this NOFA are sufficient to

indicate the basis upon which

assistance was provided or denied. This

material, including any letters of

support, will be made available for

public inspection for a five-year period

beginning not less than 30 days after the

award of the assistance. Material will be

made available in accordance with the

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

552) and HUD’s implementing

regulations at 24 CFR part 15. In

addition, HUD will include the

recipients of assistance pursuant to this

NOFA in its Federal Register notice of

all recipients of HUD assistance

awarded on a competitive basis.

(b) Disclosures. HUD will make

available to the public for five years all

applicant disclosure reports (HUD Form

2880) submitted in connection with this

NOFA. Update reports (also Form 2880)

will be made available along with the

applicant disclosure reports, but in no

case for a period less than three years.

All reports—both applicant disclosures

and updates—will be made available in

accordance with the Freedom of

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

HUD’s implementing regulations at 24

CFR part 15.

Catalog of Federal Domestic Assistance

Number.

(The Catalog of Federal Domestic Assistance

Number for the ICDBG Program is 14.862)

Dated: April 2, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and

Indian Housing.

[FR Doc. 97–9307 Filed 4–10–97; 8:45 am]

BILLING CODE 4210–33–P