17024 Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4182–N–01]

Fiscal Year 1997 Notice of Funding

Availability for Continuum of Care

Homeless Assistance; Supportive

Housing Program (SHP); Shelter Plus

Care (S+C); Sec 8 Moderate

Rehabilitation Single Room Occupancy

Program for Homeless Individuals

(SRO)

AGENCY: Office of the Assistant

Secretary for Community Planning and

Development, HUD.

ACTION: Notice of funding availability

(NOFA).

SUMMARY: This Notice announces the

1997 homeless assistance competition

designed to help communities develop

Continuum of Care systems to assist

homeless persons.

The process of developing a

Continuum of Care system is part of the

community’s larger effort of developing

a Consolidated Plan. For a community

to successfully address its often

complex and interrelated problems,

including homelessness, the community

must marshall its varied resources—

community and economic development

resources, social service resources,

housing and homeless assistance

resources—and use them in a

coordinated and effective manner. The

Consolidated Plan serves as the vehicle

for a community to comprehensively

identify each of its needs and to

coordinate a plan of action for

addressing them.

The funds available under this NOFA

can be used under any of three programs

that can assist in creating community

systems for combating homelessness.

The three programs are: (1) Supportive

Housing; (2) Shelter Plus Care; and (3)

Section 8 Moderate Rehabilitation for

Single Room Occupancy Dwellings for

Homeless Individuals. This notice of

funding availability (NOFA) contains

information concerning the Continuum

of Care approach, eligible applicants,

eligible activities, application

requirements, and application

processing.

DEADLINE DATE: Applications Delivered.

Applications are due before midnight on

July 8, 1997.

Before and on the deadline date, and

during normal business hours (up to

6:00 pm) completed applications will be

accepted at the Office of Special Needs

Assistance Programs (Room 7270) in

Washington at the address below.

On the deadline date and after normal

business hours (after 6:00 pm), handcarried applications will be received at

the South Lobby of the Department of

Housing and Urban Development at the

address below. HUD will treat as

ineligible for consideration delivered

applications that are received after that

deadline.

Applications Mailed. Applications

will be considered timely filed if

postmarked before midnight on July 8,

1997, and received by HUD

Headquarters within ten (10) days after

that date.

Applications Sent by Overnight

Delivery. Overnight delivery items will

be considered timely filed if received

before or on July 8, 1997, or upon

submission of documentary evidence

that they were placed in transit with the

overnight delivery service by no later

than July 8, 1997.

No facsimile (FAX). Applications may

not be sent by FAX.

Copies of Applications to Field

Offices. Two copies of the application

must also be sent to the HUD Field

Office serving the State in which the

applicant’s projects are located. Field

office copies must be received by the

application deadline as well, but a

determination that an application was

received on time will be made solely on

receipt of the application at HUD

Headquarters in Washington. All three

copies may be used in reviewing the

application.

ADDRESSES: For a copy of the

application package and supplemental

information please call the Community

Connections information center at 1–

800–998–9999 (voice) or 1–800–483–

2209 (TTY), or contact by internet at

http://www.comcon.org/ccprog.html.

The address of the Special Needs

Assistance Programs Office in HUD

Headquarters is: Special Needs

Assistance Programs, Room 7270, Office

of Community Planning and

Development, Department of Housing

and Urban Development, 451 Seventh

Street, S.W., Washington, DC 20410,

Attention: Continuum of Care Funding.

Addresses of HUD Field Offices are

contained in Appendix B.

ELECTRONIC SUBMISSION: This year, for

the first time, you may use a special

supplement to HUD’s new Community

Planning Software to prepare your

application. The special supplement has

been programmed to produce the charts

and narratives that will meet both the

requirements of the homelessness

sections of the Consolidated Plan (Con

Plan) and the identical requirements of

the Continuum of Care application. The

supplement will also produce the

necessary project-specific information.

If you choose to use the supplement to

prepare your Continuum of Care

application, you will simply submit the

required information on 31⁄2′′ computer

diskettes, together with signed

application cover sheets (SF–424), all

required certifications and other

required documentation, by the

deadline identified above. Please submit

three copies, as described in the

DEADLINE DATE section above. The

supplement may be obtained at no

charge by contacting the Community

Connections information center by

phone or internet as described in the

ADDRESSES section above.

FOR FURTHER INFORMATION AND TECHNICAL

ASSISTANCE: A video presentation

providing general background that can

be useful in preparing your application

can be obtained for a nominal fee from

the Community Connections

information center. This fee may be

waived in the event of financial

hardship.

For answers to your questions, you

have several options. You may call the

HUD Field Office serving your area, at

the telephone number shown in

Appendix B to this NOFA. Or, you may

contact the Community Connections

information center at 1–800–998–9999

(voice) or 1–800–483–2209 (TTY) or by

internet at: http://www.comcon.org/

ccprog.html.

Prior to the application deadline, staff

will be available to provide general

guidance, but not guidance in actually

preparing the application. HUD field

office staff will also be available to help

identify organizations in your

community that are involved in

developing the Continuum of Care

system. Following conditional selection,

HUD staff will be available to assist in

clarifying or confirming information

that is a prerequisite to the offer of a

grant agreement or Annual

Contributions Contract by HUD.

However, between the application

deadline and the announcement of

conditional selections, HUD will accept

no information that would improve the

substantive quality of the application

pertinent to the funding decision.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection

requirements contained in this notice

have been submitted to the Office of

Management and Budget (OMB) under

the Paperwork Reduction Act of 1995

(42 U.S.C. 3501–3520), and OMB

approval is pending. 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.
Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices 17025

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.

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.

The related NOFAs the Department

expects to publish in the Federal

Register within the next few weeks

include: the Family Unification NOFA,

the Housing Opportunities for Persons

with AIDS (HOPWA) NOFA, the

Supportive Housing for the Elderly

NOFA, the Designated Housing NOFA,

and the NOFA for Mainstream Housing

Opportunities.

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.

To help in obtaining a copy of your

community’s Consolidated Plan, please

contact the community development

office of your municipal government.

I. Substantive Description

(a) Authority

The Supportive Housing Program is

authorized by title IV, subtitle C, of the

Stewart B. McKinney Homeless

Assistance Act (McKinney Act), as

amended, 42 U.S.C. 11381. Funds made

available under this NOFA for the

Supportive Housing program are subject

to the program regulations at 24 CFR

part 583, as amended by the final rule

published in the Federal Register on

September 30, 1996 (61 FR 51174).

The Shelter Plus Care program is

authorized by title IV, subtitle F, of the

McKinney Act, as amended, 42 U.S.C.

11403. Funds made available under this

NOFA for the Shelter Plus Care program

are subject to the program regulations at

24 CFR part 582, as amended by the

final rule published in the Federal

Register on September 30, 1996 (61 FR

51168).

The Section 8 Moderate

Rehabilitation Program for Single Room

Occupancy Dwellings for Homeless

Individuals (SRO) is authorized by

section 441 of the McKinney Act, as

amended, 42 U.S.C. 11401. Funds made

available under this NOFA for the SRO

program are subject to the program

regulations at 24 CFR part 882, subpart

H, as amended by the final rule

published in the Federal Register on

September 11, 1996 (61 FR 48052).

(b) Program Summaries

The chart in Appendix A summarizes

key aspects of the Supportive Housing

Program, the Shelter Plus Care Program,

and the Section 8 Moderate

Rehabilitation Program for Single Room

Occupancy Dwellings for Homeless

Individuals. Program descriptions are

contained in the applicable regulations

cited in the chart.

(c) Funding Availability

Approximately $625 million is

available for this competition. Any

unobligated funds from previous

competitions or additional funds that

may become available as a result of

deobligations or recaptures from

previous awards may be used in

addition to 1997 appropriations to fund

applications submitted in response to

this NOFA.

Amounts for each of the three

programs will not be specified this year.

Instead, the distribution of funds among

the three programs will depend on

locally determined priorities and overall

demand. HUD reserves the right to fund

less than the full amount requested in

any application to ensure the fair

distribution of the funds and to ensure

the purposes of these homeless

programs are met.

(d) Purpose: Develop Continuum of Care

Systems

The purpose of this NOFA is to fund

projects that will fill gaps in locally

developed Continuum of Care systems

to assist homeless persons move to selfsufficiency and permanent housing. A

Continuum of Care system consists of

four basic components:

(1) A system of outreach and

assessment for determining the needs

and conditions of an individual or

family who is homeless;

(2) Emergency shelters with

appropriate supportive services to help

ensure that homeless individuals and

families receive adequate emergency

shelter and referral to necessary service

providers or housing finders;

(3) Transitional housing with

appropriate supportive services to help

those homeless individuals and families

who are not prepared to make the

transition to permanent housing and

independent living; and

(4) Permanent housing, or permanent

supportive housing, to help meet the

long-term needs of homeless individuals

and families.

A Continuum of Care system is

developed through a community-wide

or region-wide process involving

nonprofit organizations (including those

representing persons with disabilities),

government agencies, other homeless

providers, housing developers and

service providers, private foundations,

neighborhood groups, and homeless or

formerly homeless persons. It should

address the specific needs of each

homeless subpopulation: the jobless,

veterans, homeless persons with serious

mental illnesses, persons with substance

abuse issues, persons with HIV/AIDS,

persons with multiple diagnoses,

victims of domestic violence, runaway

youth, and any others.

The community process used in

developing a Continuum of Care system

must include interested veteran service

organizations, particularly veteran

service organizations with specific

experience in serving homeless

veterans, in order to ensure that the

Continuum of Care system addresses the

needs of homeless veterans.

High scores under the Continuum of

Care scoring criteria will be assigned to

applications that demonstrate the

achievement of two basic goals:

• Have maximum participation by

non-profit providers of housing and

services; homeless and formerly

homeless persons; state and local

governments and agencies; veteran

service organizations; organizations

representing persons with disabilities;

the private sector; housing developers;

foundations and other community

organizations.

• Create, maintain and build upon a

community-wide inventory of housing

and services for homeless families and

individuals; identify the full spectrum

of needs of homeless families and

individuals; and coordinate efforts to
17026 Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices

obtain resources, particularly resources

sought through this NOFA, to fill gaps

between the current inventory and

existing needs.

In deciding the geographic area to be

covered by a Continuum of Care

strategy, applicants should be aware

that the single most important factor in

receiving funding under this

competition will be the strength of the

Continuum of Care strategy when

measured against the Continuum of Care

criteria described in this NOFA. In

determining what jurisdictions to

include in a Continuum of Care strategy

area, the applicant should include those

jurisdictions that are involved in the

development and implementation of the

Continuum of Care strategy.

Applicants should also be aware that

the larger the area included in a

Continuum of Care strategy area, the

larger the pro rata need share that will

be allocated to the strategy area (as

described in section III(a)(4) of this

NOFA). However, it would be a mistake

to include jurisdictions that are not fully

involved in the development and

implementation of the Continuum of

Care strategy since this would adversely

affect the Continuum of Care score.

Because most rural counties have

extremely small pro rata need shares,

they are strongly encouraged to consider

working with larger groups of

contiguous counties to develop a regionwide or multi-county Continuum of

Care strategy covering the combined

service areas of these counties. This will

be taken into account during the HUD

review.

Since the basic concept of a

Continuum of Care strategy is the

creation of a single, coordinated,

inclusive homeless assistance system for

an area, the areas covered by Continuum

of Care strategies should not overlap. If

there are cases where the Continuum of

Care strategies geographically overlap to

the extent that they are essentially

competing with each other, projects in

the application/Continuum of Care that

receives the highest score out of the

possible 60 points for Continuum of

Care will be eligible for up to 40 points

under Need. Projects in the competing

applications with the less effective

Continuum of Care strategies will be

eligible for only 10 points under Need.

In no case will the same geography be

used more than one time in assigning

Need points. The local HUD field office

can help applicants determine if any of

the area covered by one Continuum of

Care strategy is also likely to be claimed

under another Continuum of Care in

this competition.

(e) Prioritizing

Priority decisions are best made

through a locally-driven process and are

key to the ultimate goal of reducing

homelessness. As was done in 1996, this

year’s application (1997) instructs that

all projects proposed for funding under

this NOFA be listed in priority order

from the highest priority to the lowest.

This priority order will mean, for

example, that if funds are only available

to finance 8 of 10 proposed projects,

then funding will be awarded to the first

eight projects listed. HUD expects

nonprofit organizations to be given a fair

role in establishing these priorities.

This priority list will be used in

awarding up to 40 points per project

under the ‘‘Need’’ scoring criteria.

Higher priority projects will receive

more points under Need than lower

priority projects. If projects are not

prioritized in the application, each

project will receive the lowest score for

Need.

Project renewals. In the past, HUD has

taken a portion of the funds available

under the current appropriation to fund

the renewal of expiring Supportive

Housing grants, Supportive Housing

Demonstration Program grants, and

SAFAH grants. However, this policy

results in less funds available for the

competition and places the decision on

what is needed in a community in the

hands of HUD officials rather than

communities. Consistent with the

Continuum of Care approach, the need

for the continuation of previously

funded projects should be considered in

the local needs analysis and a decision

should be made locally on the priority

to assign to the continuation of a

project. Therefore, HUD funds needed to

continue expiring Supportive Housing

grants, Supportive Housing

Demonstration Program grants, SAFAH

grants, and Shelter Plus Care grants, as

described below, will only be available

through the competitive process

described in this NOFA.

For this 1997 competition,

communities need to pay particular

attention to the funding needs of current

McKinney homeless assistance projects

which will have insufficient funds to

continue operating throughout 1998 if

additional funds are not awarded to

them in this competition. To the extent

a locality desires to have such projects

renewed, it should give them the top

priorities on the priority projects listing

in the application. (Communities should

not request additional funding in this

competition for those projects that have

sufficient remaining funds to continue

operating into 1999.) For the renewal of

a Supportive Housing project, you may

request for each of three (3) years up to

50 percent of the amount of leasing and

operating costs in the final year of the

expiring grant’s term and up to 50

percent of the amount of HUD grant

funds for supportive services in the final

year of the expiring grant’s term. For the

renewal of a Supportive Housing

Demonstration Program project or

SAFAH project which is at the 50

percent amount in its final year, you

may request up to the same amount as

in the final year for each of three (3)

years. For the renewal of a Shelter Plus

Care project, you may request up to the

amount determined by multiplying the

number of units under lease at the time

of application for renewal funding

under this NOFA by the applicable

current Fair Market Rent(s) by 60

months. This NOFA is not applicable to

the renewal of funding under the SRO

program.

II. Application Requirements

The application requires a description

of the Continuum of Care system and

proposed project(s). It also contains

certifications that the applicant will

comply with fair housing and civil

rights requirements, program

regulations, and other Federal

requirements, and (where applicable)

that the proposed activities are

consistent with the HUD-approved

Consolidated Plan of the applicable

State or unit of general local

government, including the Analysis of

Impediments to Fair Housing and the

Action Plan to address these

impediments. Projects funded under

this NOFA shall operate in a fashion

that does not deprive any individual of

any right protected by the Fair Housing

Act (42 U.S.C. 3601–19), Section 504 of

the Rehabilitation Act of 1973 (29 U.S.C.

794) or the Americans with Disabilities

Act of 1990 (42 U.S.C. 12101 et. seq.)

There are three options for submitting

an application under this NOFA.

One: A ‘‘Consolidated Application’’ is

submitted when a jurisdiction (or a

consortium of jurisdictions) submits a

single application encompassing a

Continuum of Care strategy and

containing all the projects within that

strategy for which funding is being

requested. Individual projects are

contained within the one consolidated

application. Grant funding may go to

one entity which then administers all

funded projects submitted in the

application, or under this option, grant

funding may go to all or any of the

projects individually. Your application

will specify the grantee for each project.

Two: ‘‘Associated Applications’’ are

submitted when applicants plan and

organize a single Continuum of Care
Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices 17027

strategy which is adopted by project

sponsors or operators who choose to

submit separate applications for projects

while including the identical

Continuum of Care strategy. In this case,

project funding would go to each

successful applicant individually and

each would be responsible to HUD for

administering its separate grant.

Three: A ‘‘Solo Application’’ is

submitted when an applicant applies for

a project exclusive of participation in

any community-wide or region-wide

Continuum of Care development

process.

Options one and two are not

substantively different and will be

considered equally competitive.

Applicants are advised that projects that

are not a part of a Continuum of Care

strategy will receive few, if any, points

under the Continuum of Care rating

criteria.

III. Application Selection Process

(a) Review, Rating and Conditional

Selection

The Department will use the same

review, rating, and conditional selection

process for all three programs (S+C,

SRO, and SHP). To review and rate

applications, the Department may

establish panels including persons not

currently employed by HUD to obtain

certain expertise and outside points of

view, including views from other

Federal agencies. Two types of reviews

will be conducted. Paragraphs (1) and

(2) below describe threshold reviews

and paragraphs (3) and (4) describe

criteria—Continuum of Care and Need—

that will be used to assign points. Up to

100 points will be assigned using these

criteria.

(1) Applicant and sponsor eligibility

and capacity. Applicant and project

sponsor capacity will be reviewed to

ensure the following eligibility and

capacity standards are met. If HUD

determines these standards are not met,

the project will be rejected from the

competition.

• The applicant must be eligible to

apply for the specific program;

• The applicant must demonstrate

that there is sufficient knowledge and

experience to carry out the project(s).

With respect to each proposed project,

this means that in addition to

knowledge of and experience with

homelessness in general, the

organization carrying out the project, its

employees, or its partners, must have

the necessary experience and

knowledge to carry out the specific

activities proposed, such as housing

development, housing management, and

service delivery;

• If the applicant or project sponsor is

a current or past recipient of assistance

under a HUD McKinney Act program or

the HUD Single Family Property

Disposition Homeless Program, there

must be no project or construction

delay, HUD finding, or outstanding

audit that HUD deems serious regarding

the administration of HUD McKinney

Act programs or the HUD Single Family

Property Disposition Homeless Program;

and

• The applicant and project sponsors

must be in compliance with applicable

civil rights laws and Executive Orders.

The Department will use the

following standards to assess

compliance with civil rights laws at the

threshold review. In making this

assessment, the Department shall review

appropriate records maintained by the

Office of Fair Housing and Equal

Opportunity, e.g., records of monitoring,

audit, or compliance review findings,

complaint determinations, compliance

agreements, etc. If the review reveals the

existence of any of the following, the

application will be rejected.

(1) There is pending civil rights suit

against the sponsor instituted by the

Department of Justice.

(2) There is an outstanding finding of

noncompliance with civil rights

statutes, Executive Orders or regulations

as result of formal administrative

proceedings, unless the applicant is

operating under a HUD-approved

compliance agreement designed to

correct the area of noncompliance, or is

currently negotiating such an agreement

with the Department.

(3) There is an unresolved Secretarial

charge of discrimination issued under

Section 810(g) of the Fair Housing Act,

as implemented by 24 CFR 103.400.

(4) There has been adjudication of a

civil rights violation in a civil action

brought against it by a private

individual, unless the applicant is

operating in compliance with a court

order designed to correct the area of

noncompliance or the applicant has

discharged any responsibility arising

from such litigation.

(5) There has been a deferral of the

processing of applications from the

sponsor imposed by HUD under Title VI

of the Civil Rights Act of 1964, the

Attorney General’s Guidelines (28 CFR

50.3) or the HUD Title VI regulations (24

CFR 1.8) and procedures, or under

Section 504 of the Rehabilitation Act of

1973 and the HUD Section 504

regulations (24 CFR 8.57).

(2) Project eligibility and quality. Each

project will be reviewed to determine if

it meets the following eligibility and

threshold quality standards. If HUD

determines the following standards are

not met by a specific project or activity,

the project or activity will be rejected

from the competition.

• The population to be served must

meet the eligibility requirements of the

specific program, as described in the

application instructions;

• The activity(ies) for which

assistance is requested must be eligible

under the specific program, as described

in the program regulations;

• The housing and services proposed

must be appropriate to the needs of the

persons to be served. HUD may find a

project to be inappropriate if:

—The type and scale of the housing or

services clearly does not fit the needs

of the proposed participants (e.g.,

housing homeless families with

children in the same space as

homeless individuals, or separating

members of the same family, without

an acceptable rationale provided);

—Participant safety is not addressed;

—Participants will have little or no

involvement in decision-making and

project operations

—The housing or services are clearly

designed to principally meet

emergency needs rather than helping

participants achieve self-sufficiency;

—Transportation and community

amenities are not available and

accessible; or

—Housing accessibility in accordance

with applicable laws for persons with

disabilities is not addressed;

• The project must be cost-effective in

HUD’s opinion, including costs

associated with construction,

operations, and administration, with

such costs not deviating substantially

from the norm in that locale for the type

of structure or kind of activity.

• Supportive services only projects,

and all others, must show how

participants will be helped to access

permanent housing and achieve selfsufficiency.

• For the Section 8 SRO program, at

least 25 percent of the units to be

assisted at any one site must be vacant

at the time of application;

• For those projects proposed under

the SHP innovative category: Whether

or not a project is considered innovative

will be determined on the basis that the

particular approach proposed is new to

the area, is a sensible model for others,

and can be replicated; and

• HUD will also find one or more of

these standards not to have been met if

there is insufficient information

provided in the application on which to

make a determination.

(3) Continuum of Care. Up to 60

points will be awarded as follows:

(i) Process and Strategy. Up to 30

points will be awarded based on the
17028 Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices

extent to which the application

demonstrates:

• The existence of a quality and

inclusive community process, including

organizational structure(s), for

developing and implementing a

Continuum of Care strategy which

includes nonprofit organizations (such

as veterans service organizations, other

organizations representing persons with

disabilities, and other groups serving

homeless persons), State and local

governmental agencies, other homeless

providers, housing developers and

service providers, private foundations,

local businesses and the banking

community, neighborhood groups, and

homeless or formerly homeless persons,

as articulated in section I(d) of this

NOFA; and

• That a quality and comprehensive

strategy has been developed which

addresses the components of a

Continuum of Care system (i.e.,

outreach, intake, and assessment;

emergency shelter; transitional housing;

permanent and permanent supportive

housing) and that strategy has been

designed to serve all homeless

subpopulations in the community (e.g.,

seriously mentally ill, persons with

multiple diagnoses, veterans), including

those persons living in emergency

shelters, supportive housing for

homeless persons, or in places not

designed for, or ordinarily used as, a

regular sleeping accommodation for

human beings. For S+C, the strategy

receives more points based on the extent

to which S+C activities will serve

homeless persons who are seriously

mentally ill, have chronic alcohol and/

or substance abuse issues, or have AIDS

and related diseases.

(ii) Gaps and Priorities. Up to 20

points will be awarded based on the

extent to which the application:

• Establishes the relative priority of

homeless needs identified in the

Continuum of Care strategy; and

• Proposes projects that are consistent

with the priority analysis described in

the Continuum of Care strategy.

(iii) Supplemental Resources. Up to

10 points will be awarded based on the

extent to which the application

demonstrates leveraging of funds

requested under this NOFA with other

resources, including private, other

public, and mainstream services and

housing programs.

(iv) Court-ordered consideration. Due

to an order of the U.S. District Court for

the Northern District of Texas, Dallas

Division, with respect to any

application by the City of Dallas, Texas,

for HUD funds, HUD shall consider the

extent to which the Continuum of Care

strategy for the Dallas area will be used

to eradicate the vestiges of segregation

in the Dallas Housing Authority’s low

income housing programs. The City of

Dallas should address the effect, if any,

that vestiges of racial segregation in

Dallas Housing Authority’s low income

housing programs have on potential

participants in the programs covered by

this NOFA, and identify proposed

actions for remedying those vestiges.

HUD may add up to 2 points to the

Continuum of Care score based on this

consideration.

(4) Need. Up to 40 points will be

awarded for need. There is a three-step

approach to determining the need scores

to be awarded to projects:

(i) Determining relative need: To

determine the homeless assistance need

of a particular jurisdiction, HUD will

use nationally available data, including

the following factors as used in the

Emergency Shelter Grants program: data

on poverty, housing overcrowding,

population, age of housing, and growth

lag. Applying those criteria to a

particular jurisdiction provides an

estimate of the relative need index for

that jurisdiction compared to other

jurisdictions applying for assistance

under this NOFA.

(ii) Applying relative need: That

relative need index is then applied to

the total amount of funding estimated to

be available under this NOFA to

determine a jurisdiction’s pro rata need.

HUD reserves the right to adjust pro rata

need if necessary to address the issue of

project renewals.

(iii) Awarding need points to projects:

Once the pro rata need is established, it

is applied against the priority project

list in the application. Starting from the

highest priority project, HUD proceeds

down the list to include those projects

whose total funding equals that

jurisdiction’s pro rata need. Those

priority projects which fall within that

pro rata need each receive the full 40

points for need. Thereafter, HUD

proceeds further down the priority

project list until two (2) times the pro

rata need is reached and each of those

projects receive 20 points. Remaining

projects each receive 10 points.

If an application does not prioritize

projects, each project will receive 10

points for Need.

In the case of competing applications

from a single jurisdiction or service

area, projects in the application that

received the highest score out of the

possible 60 points for Continuum of

Care are eligible for up to 40 points

under Need. Projects in the competing

applications with less effective

Continuum of Care strategies are eligible

for only 10 points under Need.

(5) Ranking. The score for Continuum

of Care will be added to the Need score

in order to obtain a total score for each

project. The projects will then be ranked

from highest to lowest according to the

total combined score. A bonus of 3

points will be added in determining the

final score of any project that will be

located within the boundaries of a

federal Empowerment Zone (EZ) or

Enterprise Community (EC) if priority

placement will be given by the project

to homeless persons living on the streets

or in shelters within the EZ or EC, or

whose last known address was within

the EZ or EC. A bonus of 2 points will

be added in determining the final score

of any project that will make use of

surplus military buildings or properties

located on a military base that is

covered by the provisions of the Base

Closure Community Redevelopment and

Homeless Assistance Act of 1994.

(6) Conditional selection. Whether a

project is conditionally selected, as

described in section IV below, will

depend on its overall ranking compared

to others, except that HUD reserves the

right to select lower rated projects if

necessary to achieve geographic

diversity.

HUD also reserves the right to break

ties among projects by determining

which project will best achieve the

purposes described in the preceding

sentence, or to fund a project at less

than the full amount requested.

In the event of an error that, when

corrected, would result in selection of

an otherwise eligible project during the

funding round under this NOFA, one

remedy may be that HUD selects that

project to the extent funds are available.

(7) Additional selection

considerations. HUD will also apply the

limitations on funding described below

in making conditional selections.

In accordance with section 429 of the

McKinney Act, as amended, HUD will

award Supportive Housing funds as

follows: not less than 25 percent for

projects that primarily serve homeless

families with children; not less than 25

percent for projects that primarily serve

homeless persons with disabilities; and

not less than 10 percent for supportive

services not provided in conjunction

with supportive housing. After projects

are rated and ranked, based on the

criteria described above, HUD will

determine if the conditionally selected

projects achieve these minimum

percentages. If not, HUD will skip

higher-ranked projects in a category for

which the minimum percent has been

achieved in order to achieve the

minimum percent for another category.

If there are an insufficient number of

conditionally selected projects in a
Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices 17029

category to achieve its minimum

percent, the unused balance will be

used for the next highest-ranked

approvable Supportive Housing project.

In accordance with section 463(a) of

the McKinney Act, as amended by the

1992 Act, at least 10 percent of Shelter

Plus Care funds will be awarded for

each of the four components of the

program: Tenant-based Rental

Assistance; Sponsor-based Rental

Assistance; Project-based Rental

Assistance; and Section 8 Moderate

Rehabilitation of Single Room

Occupancy Dwellings for Homeless

Individuals (provided there are

sufficient numbers of approvable

projects to achieve these percentages).

After projects are rated and ranked,

based on the criteria described below,

HUD will determine if the conditionally

selected projects achieve these

minimum percentages. If necessary,

HUD will skip higher-ranked projects

for a component for which the

minimum percent has been achieved in

order to achieve the minimum percent

for another component. If there are an

insufficient number of approvable

projects in a component to achieve its

minimum percent, the unused balance

will be used for the next highest-ranked

approvable Shelter Plus Care project.

In accordance with section 455(b) of

the McKinney Act, no more than 10

percent of the assistance made available

for Shelter Plus Care in any fiscal year

may be used for programs located

within any one unit of general local

government.

In accordance with section 441(c) of

the McKinney Act, no city or urban

county may have Section 8 SRO projects

receiving a total of more than 10 percent

of the assistance made available under

this program.

This year’s NOFA does not make

available specific amounts for the three

programs covered by the NOFA. Instead,

distribution is demand-driven.

However, potential applicants need to

be able to plan for their project

proposals. Therefore, HUD is defining

the 10 percent availability this fiscal

year as $10 million for Shelter Plus Care

and $10 million for Section 8 SRO. The

$10 million number is based on past

experience of the distribution of the

total funds made available for HUD

homeless assistance programs. However,

if the amount awarded under either of

these two programs exceeds $100

million, then the amount awarded to

any one unit of general local

government (for purposes of the Shelter

Plus Care program) or city or urban

county (for the purposes of the SRO

program) could be up to 10 percent of

the actual total amount awarded for that

program.

Lastly, HUD reserves the right to

reduce the amount of a grant if

necessary to ensure that no more than

10 percent of assistance made available

under this NOFA will be awarded for

projects located within any one unit of

general local government or within the

geographic area covered by any one

Continuum of Care. If HUD exercises a

right it has reserved under this NOFA,

that right will be exercised uniformly

across all applications received in

response to this NOFA.

(b) Clarification of Application

Information

In accordance with the provisions of

24 CFR part 4, subpart B, HUD may

contact an applicant to seek clarification

of an item in the application, or to

request additional or missing

information, but the clarification or the

request for additional or missing

information shall not relate to items that

would improve the substantive quality

of the application pertinent to the

funding decision.

IV. Funding Award Process

HUD will notify conditionally

selected applicants in writing. As

necessary, HUD will subsequently

request them to submit additional

project information, which may include

documentation to show the project is

financially feasible; documentation of

firm commitments for cash match;

documentation showing site control;

information necessary for HUD to

perform an environmental review,

where applicable; and such other

documentation as specified by HUD in

writing to the applicant, that confirms

or clarifies information provided in the

application. SRO and S+C/SRO

applicants will be notified of the date of

the two month deadline for submission

of such information; other S+C

applicants and all SHP applicants will

be notified of the date of the one month

deadline for submission of such

information. If an applicant is unable to

meet any conditions for fund award

within the specified timeframe, HUD

reserves the right not to award funds to

the applicant, but instead to either: use

them to select the next highest ranked

application(s) from the original

competition for which there are

sufficient funds available; or add them

to funds available for the next

competition for the applicable program.

V. Program Limitations

(a) SRO program. Applicants need to

be aware of the following limitations

that apply to the Section 8 SRO

program:

• Under section 8(e)(2) of the United

States Housing Act of 1937, no single

project may contain more than 100

units;

• Under 24 CFR 882.802, applicants

that are private nonprofit organizations

must subcontract with a Public Housing

Authority to administer the SRO

assistance;

• Under section 8(e)(2) of the United

States Housing Act of 1937 and 24 CFR

882.802, rehabilitation must involve a

minimum expenditure of $3,000 for a

unit, including its prorated share of

work to be accomplished on common

areas or systems, to upgrade conditions

to comply with the Housing Quality

Standards.

• Under section 441(e) of the

McKinney Act and 24 CFR

882.805(g)(1), HUD publishes the SRO

per unit rehabilitation cost limit each

year to take into account changes in

construction costs. This cost limitation

applies to rehabilitation that is

compensated for in a Housing

Assistance Payments Contract. For

purposes of Fiscal Year 1997 funding,

the cost limitation is raised from

$16,500 to $16,900 per unit to take into

account increases in construction costs

during the past 12-month period.

(b) Shelter Plus Care/Section 8 SRO

Component. With regard to the SRO

component of the Shelter Plus Care

program, applicant States, units of

general local government and Indian

tribes must subcontract with a Public

Housing Authority to administer the

Shelter Plus Care assistance. Also with

regard to this component, no single

project may contain more than 100

units.

VI. Timeliness Standards

Applicants are expected to initiate

their approved projects promptly. If

implementation difficulties occur,

applicants need to be aware of the

following timeliness standards:

(a) Supportive Housing Program.

• HUD will deobligate SHP funds if

site control has not been demonstrated

within one (1) year after initial

notification of the grant award, as

provided in 24 CFR 583.320(a), subject

to the exceptions noted in that

regulation.

• Except where HUD finds that delay

was due to factors beyond the control of

the grantee, HUD will deobligate SHP

funds if the grantee does not meet the

following additional timeliness

standards:

—Construction activities must begin

within eighteen (18) months after

initial notification of the grant award
17030 Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices

and be completed within thirty-six

(36) months after that notification.

—For activities that cannot begin until

construction activities are completed,

such as supportive service or

operating activities that will be

conducted within the building being

rehabilitated or newly constructed,

these activities must begin within

three (3) months after the construction

is completed.

—For all activities that may proceed

independent of construction

activities, these activities must begin

within twelve (12) months after initial

notification of the grant award.

(b) Shelter Plus Care Program

Components Except SRO Component.

Except where HUD finds that delay was

due to factors beyond the control of the

grantee, HUD will deobligate S+C funds

if the grantee does not meet the

following timeliness standards:

• For Tenant-based Rental Assistance,

for Sponsor-based Rental Assistance,

and for Project-based Rental Assistance

without rehabilitation, the rental

assistance must begin within twelve (12)

months of the initial announcement of

the grant award.

• For Project-based Rental Assistance

with rehabilitation, the rehabilitation

must be completed within twelve (12)

months of initial notification of the

grant award.

(c) SRO Program and SRO Component

of the Shelter Plus Care Program.

For projects carried out under the

SRO program and the SRO component

of the S+C program, the rehabilitation

work must be completed and the

Housing Assistance Payments contract

executed within twelve (12) months of

execution of the Annual Contributions

Contract. HUD may reduce the number

of units or the amount of the annual

contribution commitment if, in the

determination of HUD, the Public

Housing Authority fails to demonstrate

a good faith effort to adhere to this

schedule.

VII. Linking Supportive Housing

Programs and AmeriCorps

Applicants for the Supportive

Housing Program are encouraged to link

their proposed projects with

AmeriCorps, a national service program

engaging thousands of Americans on a

full- or part-time basis to help

communities address their toughest

challenges, while earning support for

college, graduate school, or job training.

For information about AmeriCorps SHP

partnerships, call the Corporation for

National Service at (202) 606–5000

extension 486.

VIII. Other Matters

Performance Measures. The grant

agreement or Annual Contributions

Contract to be executed by HUD and the

award recipient will contain

performance measures.

Prohibition Against Lobbying

Activities. The use of funds awarded

under this NOFA is subject to the

disclosure requirements and

prohibitions of Section 319 of the

Department of the Interior and Related

Agencies Appropriations Act for Fiscal

Year 1990 (31 U.S.C. 1352) (the ‘‘Byrd

Amendment’’) and the implementing

regulations at 24 CFR part 87. These

authorities prohibit recipients of Federal

contracts, grants, or loans from using

appropriated funds for lobbying the

Executive or Legislative branches of the

Federal government in connection with

a specific contract, grant, or loan. The

prohibition also covers the awarding of

contracts, grants, cooperative

agreements, or loans unless the

recipient has made an acceptable

certification regarding lobbying. Under

24 CFR part 87, applicants, recipients

and sub-recipients of assistance

exceeding $100,000 must certify that no

Federal funds have been or will be spent

on lobbying activities in connection

with the assistance.

Applicants for funding under this

NOFA are subject to the provisions of

Section 319 of the Department of the

Interior and Related Agencies

Appropriation Act for Fiscal Year 1991,

31 U.S.C. 1352 (the Byrd Amendment),

which prohibits applicants from using

appropriated funds for lobbying the

Executive or Legislative Branches of the

Federal Government in connection with

a specific contract, grant, or loan.

Applicants are required to certify, using

the certification found at Appendix A to

24 CFR part 87, that they will not, and

have not, used appropriated funds for

any prohibited lobbying activities. In

addition, applicants must disclose,

using Standard Form LLL, ‘‘Disclosure

of Lobbying Activities,’’ any funds,

other than federally appropriated funds,

that will be or have been used to

influence federal employees, members

of Congress, and congressional staff

regarding specific grants or contracts.

Environmental Impact. This NOFA

provides funding under, and does not

alter the environmental requirements of,

regulations in 24 CFR parts 582, 583 and

882, subpart H. 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). Conditional

selection of projects under this NOFA is

subject to the environmental review

requirements under 24 CFR 582.230,

583.230 and 882.804(c), as applicable.

Executive Order 12606, The Family.

The General Counsel, as the Designated

Official under Executive Order 12606,

The Family, has determined that the

policies announced in this Notice

would have a significant impact on the

formation, maintenance, and general

well-being of families, but since this

impact would be beneficial, no further

analysis under the Order is necessary.

Executive Order 12612, Federalism.

The General Counsel has determined, as

the Designated Official for HUD under

section 6(a) of Executive Order 12612,

Federalism, that the policies contained

in this Notice will not have federalism

implications and, thus, are not subject

to review under the Order. The

promotion of activities and policies to

end homelessness is a recognized goal

of general benefit without direct

implications on the relationship

between the national government and

the states or on the distribution of

power and responsibilities among

various levels of government.

Drug-Free Workplace Certification.

The Drug-Free Workplace Act of 1988

requires grantees of Federal agencies to

certify that they will provide drug-free

workplaces. Thus, each applicant must

certify that it will comply with drug-free

workplace requirements in accordance

with 24 CFR part 24, subpart F.

Accountability in the Provision of

HUD Assistance. 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, HUD published, at 57 FR 1942, 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:

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
Federal Register / Vol. 62, No. 67, Tuesday, April 8, 1997 / Notices 17031

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.

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.

Section 103 HUD Reform Act. Section

103 of the Department of Housing and

Urban Development Reform Act of 1989,

and HUD’s implementing regulation

codified at subpart B of 24 CFR part 4,

applies to the funding competition

announced today. These requirements

continue to apply until the

announcement of the selection of

successful applicants. HUD employees

involved in the review of applications

and in the making of funding decisions

are limited by section 103 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 section 103 and

subpart B of 24 CFR part 4.

Applicants or employees who have

HUD Reform Act or other ethics related

questions should contact the HUD’s

Ethics Law Division (202) 708–3815.

(This is not a toll-free number.)

Authority: 42 U.S.C. 11403 note; 42 U.S.C.

11389; 42 U.S.C. 1437a, 1437c, and 1437f; 42

U.S.C. 3535(d); 24 CFR parts 582, 583, and

882.

Dated: April 3, 1997.

Jacquie Lawing,

General Deputy Assistant Secretary for

Community Planning and Development.

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[FR Doc. 97–9034 Filed 4–7–97; 8:45 am]

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