[Federal Register Volume 62, Number 69 (Thursday, April 10, 1997)]
[Notices]
[Pages 17672-17678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9334]



[[Page 17671]]

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Part III





Department of Housing and Urban Development





_______________________________________________________________________



NOFA for Rental Assistance for Persons With Disabilities in Support of 
Designated Housing Allocation Plans and Establishment of Preferences 
for Certain Section 8 Developments; Notice

Federal Register / Vol. 62, No. 69 / Thursday, April 10, 1997 / 
Notices

[[Page 17672]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4207-N-01]


NOFA for Rental Assistance for Persons With Disabilities in 
Support of Designated Housing Allocation Plans and Establishment of 
Preferences for Certain Section 8 Developments

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

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This notice announces the availability of up to $25 million in 
one-year budget authority for approximately 4,200 Section 8 rental 
vouchers and certificates for non-elderly persons with disabilities in 
support of designated housing allocation plans, and up to $25 million 
in one-year budget authority for approximately 4,200 Section 8 rental 
vouchers and certificates for non-elderly disabled families who are not 
currently receiving housing assistance in certain Section 8 project-
based developments due to the owners establishing preferences for the 
admission of elderly families. The rental vouchers and certificates 
will enable persons with disabilities to rent affordable housing.
    Housing agencies (HAs), including Indian Housing Authorities (IHA), 
are invited to respond to this NOFA for funding for rental vouchers and 
certificates related to preferences for elderly admissions at certain 
Section 8 project-based developments. PHAs are also invited to respond 
to this NOFA for funding related to designated housing allocation 
plans. IHAs, however, may not apply for funding related to designated 
housing allocation plans, because the requirements of section 7 (42 
U.S.C. 1437e) concerning designated housing allocation plans do not 
apply to IHAs.
    Paragraphs A and G of this NOFA address application related 
information pertinent to preparing and submitting an application 
related to designated housing allocation plans, or an application 
related to certain Section 8 project-based developments. Information 
provided in paragraphs B through F in this NOFA relate solely to 
applications pertaining to certain Section 8 project-based 
developments.

DATES: There are no application deadlines for applications submitted in 
response to this NOFA's requirements pertinent to either designated 
housing allocation plan, or certain Section 8 developments. 
Applications may be submitted immediately following the publication of 
this NOFA and will continue to be accepted through FY 1998 and beyond 
or until further notice from HUD that all funds have been obligated. 
HUD will not accept application materials sent via facsimile (FAX) 
transmission.

ADDRESSES: a. Allocation Plans. The addresses for applications 
submitted for Section 8 rental vouchers or certificates in connection 
with allocation plans: HUD Headquarters, Office of Public and Assisted 
Housing Operations, Room 4206, 451 Seventh Street, S.W., Washington, 
D.C., 20410; and the local HUD State or Area Office, Attention: 
Director, Office of Public Housing, are the official places of receipt. 
A PHA's application (see paragraph C. of NOFA FR-4085-N-01 (61 FR 
56090, October 30, 1996), captioned Application Submission 
Requirements, regarding the multiple components that must comprise an 
HA's application) should be submitted concurrently to both offices.
    b. Certain Section 8 Projects. The addresses for applications 
submitted for Section 8 rental vouchers or certificates in connection 
with Section 8 project-based developments: HUD Headquarters, Operations 
Division, Room 4220, 451 Seventh St., S.W., Washington, D.C., 20410; 
and the local HUD State or Area Office, Attention: Director, Office of 
Public Housing, is the official place of receipt, except for 
applications from IHAs. HUD's local Office of Native American Programs, 
Attention: Administrator, Office of Native American Programs, is the 
official place of receipt for IHA applications. The application should 
be submitted concurrently to HUD Headquarters and the appropriate local 
HUD Office.
    For ease of reference, the term ``HUD Office'' is subsequently used 
throughout this NOFA to mean the local HUD State Office, local HUD Area 
Office, and local HUD Office of Native American Programs.

FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations 
Division, Office of Rental Assistance, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410-8000, 
telephone number (202) 708-0477 (this is not a toll-free number). For 
hearing-and speech-impaired persons, this number may be accessed via 
TTY by calling the Federal Information Relay Service at 1-800-877-8339 
(this is a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The Section 8 information collection requirements contained in this 
NOFA 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 numbers 2577-0169 and 2577-0192. 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.

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 this fiscal year. 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.
    Elsewhere in today's Federal Register, the Department has published 
a related NOFA concerning Mainstream Housing Opportunities for Persons 
with Disabilities. On April 8, 1997, the Department published in the 
Federal Register the NOFA for Continuum of Care Assistance. Other 
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 NOFA, the Supportive 
Housing for the Elderly NOFA, and the Supportive Housing for Persons 
with Disabilities NOFA.
    To foster comprehensive, coordinated approaches by communities, the 
Department intends for the remainder of FY 1997 to continue to alert 
applicants of HUD's NOFA activity. In addition, a complete schedule of 
NOFAs to be

[[Page 17673]]

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 to better coordinate HUD's 
NOFAs are being 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.

Family Self-Sufficiency (FSS) Program Requirement

    Unless specifically exempted by HUD, all rental voucher or rental 
certificate funding (except funding for renewals or amendments) 
reserved in FY '97, including funding reserved as a result of this 
NOFA, will be used to establish or increase the minimum size of an HA's 
FSS program.

A. Authority and Funding

(1) Authority.
    Legislative authority to provide Section 8 assistance in support of 
allocation plans to designate public housing for occupancy by elderly 
families only, disabled families only, or elderly families and disabled 
families only (covering the $25 million available under this NOFA) is 
found at Section 7 of the U.S. Housing Act of 1937 (42 U.S.C. 1437e). 
HUD's Fiscal Year 1997 Appropriations Act, Public Law 104-204, approved 
September 26, 1996 (Appropriations Act), contains language authorizing 
the use of Section 8 rental voucher and certificate funding for housing 
agencies to implement allocation plans approved by the Secretary for 
designated housing. HUD's 1997 Appropriations Act also contains 
language authorizing the use of Section 8 rental vouchers and 
certificates by HAs for non-elderly disabled families who are not 
receiving housing assistance in certain Section 8 project-based 
developments, in accordance with Section 651 of the Housing and 
Community Development Act of 1992 where the owners have elected to 
establish preferences for elderly families (covering the remaining $25 
million of the total of $50 million available under this NOFA).
(2) Application Funding
    a. Allocation Plans. HUD will award funding for rental vouchers or 
certificates to PHAs that submit an allocation plan to designate public 
housing for occupancy by elderly families only, disabled families only, 
or disabled and elderly families only, and that also administer a 
Section 8 rental certificate or rental voucher program.
    The $25 million in funding announced in this NOFA, for Section 8 
rental vouchers and certificates for persons with disabilities in 
support of designated housing allocation plans, is in addition to the 
$78.6 million in funding previously made available by the NOFA for 
Rental Assistance for Persons With Disabilities In Support of 
Designated Housing Allocation Plans (NOFA FR-4085-N-01) published at 61 
FR 56090 on October 30, 1996.
    The following requirements of NOFA FR-4085-N-01, except as 
expressly modified by this NOFA, apply to all applications received 
after the date of publication of this NOFA, including applications 
funded from balances remaining from the $78.6 million initially made 
available by the NOFA FR-4085-N-01:
    Section A.(3) Limit on Rental Assistance Requested;
    Section a.(4) Guidelines, except see this NOFA for turnover and HA 
Responsibilities;
    Section C. Application Submission Requirements. Additional 
submission requirements include:
    <bullet> The maximum number of rental vouchers or certificates that 
an HA may apply for related to allocation plans under this NOFA and 
NOFA FR-4085-N-01 is limited to 200. The PHA must indicate whether it 
will accept a reduction in the number of rental vouchers or 
certificates, and must state the minimum number of rental vouchers or 
certificates it will accept, since the funding is limited and HUD may 
only have enough funds to approve a smaller amount than the number of 
rental vouchers or certificates requested.
    <bullet> Also, any PHA wishing to rely on an allocation plan 
previously approved by HUD (i.e., not submitted as part of a PHA's 
application in response to NOFA FR-4085-N-01) will be required to 
resubmit the HUD-approved allocation plan as part of its application, 
along with updated needs data indicating why the PHA does not have the 
appropriate resources to carry out the previously approved or submitted 
plan, identifying the new resources (Section 8 rental vouchers or 
certificates) needed for persons with disabilities and disabled 
families, and addressing the housing needs in its comprehensive plan.
    <bullet> Applicants who choose to apply must submit an allocation 
plan in conformity with the requirements in section 10(a) of the 
Housing Opportunity Program Extension Act of 1996, Public Law 104-120, 
approved March 28, 1996, as explained in Notice PIH 97-12 (HA), 
Requirements for Designation of Public Housing Projects.
    Section D. Correction of Deficient Applications. Section 
D.(2)(b)(viii) lease-up rate threshold does not apply to applications 
processed under this NOFA. The statutorily-required three month delay 
in the reissuance of turnover rental vouchers and certificates has had 
an adverse impact on the lease-up rate of HAs, which makes it unfair to 
apply this threshold; and
    Section E. Application Selection Process, except section E.(2), 
Funding. HUD intends to fund all approvable applications for designated 
housing allocation plans on a first-come, first-served basis (not to 
exceed a maximum of 200 rental vouchers or certificates for any 
individual application). Applications will be funded for the total 
number of units requested by the PHA and approved by the HUD Office 
(not to exceed 200 units) in accordance with the NOFA. However, when 
remaining budget authority is insufficient to fund the last selected 
PHA application in full, HUD Headquarters will fund that application to 
the extent of the funding available unless the PHA's application 
indicates it will only accept a higher number of units. In that event, 
the next selected application shall be one which has indicated a 
willingness to accept the lesser amount of funding for units available.
    The $25 million made available by this NOFA is one-year budget 
authority which will support approximately 4,200 rental vouchers and 
certificates in connection with approvable PHA allocation plans. The 
funding under this NOFA will be obligated only after the $58.3 million 
of five-year budget authority and the $20.3 million of two-year budget 
authority provided under NOFA FR-4085-N-01 are obligated. The rental 
vouchers and certificates will assist PHAs in providing sufficient 
alternative resources to meet the housing needs of those persons with 
disabilities who would have been housed by the PHA if occupancy in the 
designated public housing project were not restricted to elderly 
households and assist PHAs that wish to continue to designate their 
buildings as ``mixed elderly and disabled buildings'' but can 
demonstrate a need for alternative resources for persons with 
disabilities that is consistent with the jurisdiction's Consolidated 
Plan and the low-income housing needs of the jurisdiction.
    b. Certain Section 8 Projects. HUD also will award $25 million in 
one-year budget authority for approximately 4,200 rental vouchers and 
certificates to HAs that submit an application identifying the number 
of non-elderly disabled families who are not receiving housing 
assistance in certain Section 8

[[Page 17674]]

project-based developments where the owners have elected to establish 
preferences for elderly families. HUD intends to fund all approvable 
applications for these funds on a first-come, first-served basis.
    c. Redistribution of Funds. In the event that approvable 
applications are received for more funding than the $25 million being 
made available in this NOFA related to certain Section 8 projects, 
funds will be transferred from the $25 million made available under 
this NOFA for applications related to allocation plans. In the event 
that approvable applications are received for more than the combined 
funding made available under this NOFA and NOFA FR-4085-N-01 for 
applications related to allocation plans, funds will be transferred 
from the $25 million being made available in this NOFA related to 
certain Section 8 projects.
    d. Turnover. When a rental voucher or rental certificate under this 
program becomes available for reissue (e.g., the individual or family 
initially selected for the program drops out of the program or is 
unsuccessful in the search for a unit), the rental assistance may be 
used only for another individual or family eligible for assistance 
under this program for five years, subject to appropriations for 
renewal funding, from the date the funding for the rental assistance 
was added to the ACC.
    (e) HA Responsibilities:
    In addition to HA responsibilities under the Section 8 programs and 
under HUD regulations for nondiscrimination based on disability (24 CFR 
8.28) and to affirmatively further fair housing, HAs that receive 
rental voucher or certificate funding must:
    (i) Where requested by the individual, assist program participants 
to gain access to supportive services available within the community 
but not require eligible applicants or participants to accept 
supportive services as a condition of participation or continued 
occupancy in the program;
    (ii) Identify public and private funding sources to assist 
participants in covering the costs of modifications that need to be 
made to their units needed as a reasonable accommodation for their 
disabilities;
    (iii) Not deny persons who qualify for rental assistance under this 
program other housing opportunities, or otherwise restrict access to HA 
programs to eligible applicants who choose not to participate; and
    (iv) Provide assistance to increase access by program participants 
to housing units in a variety of neighborhoods (including areas with 
low poverty concentrations) and to locate and obtain a unit suited to 
their needs (Section 8 search assistance).

B. Background, Purpose and Substantive Description for Rental Vouchers 
and Certificates Pertinent to Certain Section 8 Project-Based 
Developments

(1) Background
    HUD's Fiscal Year 1997 Appropriations Act provided that funding for 
Section 8 rental vouchers and certificates would be made available to 
nonelderly disabled families affected by the establishment of 
preferences in accordance with Section 651 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 13611). Section 651 of the 1992 Act 
allowed owners of the following Section 8 developments (limited to only 
such developments originally designed primarily for occupancy by 
elderly families) to provide preferences to elderly families in 
selecting tenants for available assisted units in those projects:
    (a) Section 8 New Construction Program, 24 CFR Part 880;
    (b) Section 8 Substantial Rehabilitation Program, 24 CFR Part 881;
    (c) State Housing Agencies Program (insofar as involving new 
construction and substantial rehabilitation), 24 CFR Part 883;
    (d) New Construction Set-Aside for Section 515 Rural Rental Housing 
Projects Program, 24 CFR Part 884; and
    (e) Section 8 Housing Assistance Program for the Disposition of 
HUD-Owned Projects (insofar as involving substantial rehabilitation), 
24 CFR Part 886, subpart C.
(2) Purpose
    The rental vouchers and certificates that HAs may apply for under 
this NOFA will assist these agencies in providing sufficient 
alternative resources to meet the housing needs of those non-elderly 
disabled families who would have been housed if the owners of the 
Section 8 project-based developments identified in paragraph B.(1) 
above had not elected to provide preferences to elderly families in 
selecting tenants for vacancies in assisted units in those 
developments.
(3) Limit on Rental Assistance Requested
    An HA may apply only for the number of units needed to house those 
non-elderly disabled families who are on the waiting list of an owner 
of a Section 8 project-based development, identified in paragraph B.(1) 
above where the owner elected to provide preferences to elderly 
families and to house other non-elderly disabled families residing in 
the community who would qualify for one- or zero-bedroom units.
(4) Guidelines
(a) Definitions
    Elderly Family. A Family whose head of household, spouse, or sole 
member is 62 years or older.
    Non-elderly Disabled Family. A family who is not elderly, and whose 
head, spouse, or sole member is a person with disabilities. The term 
``non-elderly disabled family'' may include two or more such persons 
with disabilities living together, and one or more such persons with 
disabilities living with one or more persons who are determined to be 
essential to the care and well-being of the person or persons with 
disabilities.
    Person with Disabilities. A person who:
    (a) Has a disability as defined in Section 223 of the Social 
Security Act (42 U.S.C. 423), or
    (b) Is determined to have a physical, mental or emotional 
impairment that:
    (i) Is expected to be of long-continued and indefinite duration;
    (ii) Substantially impedes his or her ability to live 
independently; and
    (iii) Is of such a nature that such ability could be improved by 
more suitable housing conditions, or
    (c) Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 
6001(5)).
    The term ``person with disabilities'' does not exclude persons who 
have the disease of acquired immunodeficiency syndrome (AIDS) or any 
conditions arising from the etiologic agent for acquired 
immunodeficiency syndrome (HIV).
(b) Eligible HAs
    HAs that submit an application for Section 8 rental vouchers or 
certificates reflective of the need for housing by non-elderly disabled 
families (in connection with the establishment of preferences by owners 
for the admission of elderly families to certain Section 8 project-
based developments), and also administer a Section 8 rental certificate 
and/or rental voucher program.
    Some HAs currently administering the Section 8 rental certificate 
and voucher programs have, at the time of publication of this NOFA, 
major program management findings that are open and unresolved or other 
significant

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program compliance problems (e.g., HA has not implemented mandatory FSS 
Program). HUD will not accept applications for funding from these HAs 
as contract administrators if, on the application deadline, the 
findings are not closed to HUD's satisfaction. If these HAs want to 
apply under this NOFA, the HA must submit an application that 
designates another housing agency, non-profit agency, or contractor 
that is acceptable to HUD and includes an agreement with the other 
housing agency or contractor to administer the new funding increment on 
behalf of the HA. The Office of Public Housing, for PHAs, and the 
Office of Native American Programs, for IHAs, in the local HUD Office 
will notify immediately after publication of this NOFA, those PHAs and 
IHAs that are not eligible to apply. Applications submitted by these 
HAs without an agreement from another housing agency or contractor, 
approved by HUD, to serve as contract administrator will be rejected.
(c) Eligible Participants
    Eligible participants include non-elderly disabled families who 
were on the waiting list (at the time of application) of a covered 
development listed in paragraph B.(1), where the owner had exercised a 
preference for the admission of elderly families when the HA received 
the names of these families from the management of this development(s) 
for purposes of requesting either Section 8 rental certificates or 
vouchers in response to this NOFA. These non-elderly disabled families 
need not be listed on the HA's Section 8 waiting list in order to be 
offered and receive Section 8 rental assistance; i.e., it is sufficient 
that their names are on the waiting list for a covered Section 8 
development at the time their names are provided to the HA by the 
owner. Eligible participants also include other non-elderly disabled 
families residing in the community who would qualify for a one- or 
zero-bedroom unit.
(d) Rental Voucher and Certificate Assistance
    (i) Section 8 regulations. HAs must administer the Section 8 
assistance in accordance with HUD regulations governing the Section 8 
rental voucher and certificate programs.
    (ii) Section 8 admission requirements. Section 8 assistance must be 
provided to eligible applicants in conformity with applicable rules 
governing the Section 8 program, and in accordance with the HA's 
administrative plan.
(e) Turnover
    When a rental voucher or rental certificate issued in support of 
the program becomes available for reissue (e.g., the individual or 
family initially selected for the program drops out of the program or 
is unsuccessful in the search for a unit), the rental assistance may be 
used only for another individual or family eligible for assistance in 
support of the program for five years, subject to appropriations for 
renewal funding, from the date the funding for the rental assistance 
was added to the ACC.
(f) HA Responsibilities
    In addition to HA responsibilities under the Section 8 programs and 
under HUD regulations for nondiscrimination based on disability (24 CFR 
8.28) and to affirmatively further fair housing, HAs that receive 
rental voucher or certificate funding must:
    (i) Where requested by the individual, assist program participants 
to gain access to supportive services available within the community 
but not require eligible applicants or participants to accept 
supportive services as a condition of participation or continued 
occupancy in the program;
    (ii) Identify public and private funding sources to assist 
participants in covering the costs of modifications that need to be 
made to their units needed as a reasonable accommodation for their 
disabilities;
    (iii) Not deny persons who qualify for rental assistance under this 
program other housing opportunities, or otherwise restrict access to HA 
programs to eligible applicants who choose not to participate; and
    (iv) Provide assistance to increase access by program participants 
to housing units in a variety of neighborhoods (including areas with 
low poverty concentrations) and to locate and obtain a unit suited to 
their needs (Section 8 search assistance).

C. Allocation Amount for Rental Vouchers and Certificates Pertinent to 
Certain Section 8 Project-Based Developments

    This NOFA announces the availability of up to $25 million 
(approximately) of one-year budget authority that will support about 
4,200 Section 8 rental vouchers or certificates. HAs are provided with 
the opportunity to apply for rental vouchers or certificates in 
conjunction with the submission of an application to provide rental 
assistance to non-elderly disabled families from the waiting list of 
certain Section 8 project-based developments (see paragraph B.(1)) 
where the developments were originally designed primarily for the 
occupancy of elderly families, and where the owners elected to provide 
preferences to elderly families in selecting tenants for available 
assisted units in the developments and to house other non-elderly 
disabled families residing in the community who would qualify for one-
or zero-bedroom units.

D. Application Submission Requirements for Rental Vouchers and 
Certificates Pertinent to Certain Section 8 Project-Based Developments

(1) Form HUD-52515
    All HAs must complete form HUD-52515, Funding Application, for the 
Section 8 rental certificate and rental voucher programs (dated January 
1996). This form includes all necessary certifications for Fair 
Housing, Drug Free Workplace, and Lobbying Activities; therefore, HAs 
can complete and sign the new form HUD-52515 to meet the requirements 
of these certifications. An application must include the information in 
Section C, Average Monthly Adjusted Income, of form HUD-52515 in order 
for HUD to calculate the amount of Section 8 budget authority necessary 
to fund the requested number of units. Copies of form HUD-52515 may be 
obtained from the local HUD Office or may be downloaded from the HUD 
Home Page on the Internet's world wide web (http://www.hud.gov).
(2) Local Government Comments
    Section 213 of the Housing and Community Development Act of 1974 
(42 U.S.C. 1439) requires that HUD independently determine that there 
is a need for the housing assistance requested in applications and 
solicit and consider comments relevant to this determination from the 
chief executive officer of the unit of general local government. The 
HUD Office will obtain section 213 comments from the unit of general 
local government in accordance with 24 CFR part 791, subpart C, 
Applications for Housing Assistance in Areas Without Housing Assistance 
Plans. Comments submitted by the unit of general local government must 
be considered before an application can be approved.
    For purposes of expediting the application process, the HA needs to 
encourage the chief executive officer of the unit of general local 
government to submit a letter with the application commenting on the 
HA's application in accordance with section 213. Because HUD cannot 
approve an application until the 30-day comment period is

[[Page 17676]]

closed, the section 213 letter should not only comment on the 
application, but also state that HUD may consider the letter to be the 
final comments and that no additional comments will be forthcoming from 
the unit of general local government.
(3) Letter of Intent and Narrative
    All the items in this section must be included in the application 
submitted to the HUD Office. The HA must state in its cover letter to 
the application whether it will accept a reduction in the number of 
rental certificates or rental vouchers and the minimum number of rental 
certificates or rental vouchers it will accept, since the funding is 
limited and HUD may only have enough funds to approve a smaller amount 
than the number of rental certificates or rental vouchers requested.
(4) Certification, Waiting List Information and Other Non-Elderly 
Disabled Families Residing in the Community
    In order to support the requested number of rental vouchers or 
certificates being requested on the form HUD-52515, the HA's 
application must include a certification statement from the owner of a 
covered development(s) (see paragraph B.(1)), that the development is a 
covered development, it was developed primarily for occupancy by the 
elderly, the owner has established preferences for the admission of 
elderly families and indicating the number of non-elderly disabled 
families on the Owner's waiting list for the development(s). HAs may 
contact the local HUD State or Area Office's Director, Multifamily 
Division, to get the addresses and telephone numbers of the 
developments falling under the programs listed in paragraph B.(1). The 
HA will then need to contact the management/owners of these 
developments within their jurisdiction to determine, in each case, if 
the development was originally designed primarily for occupancy by 
elderly families and if the owner has established a preference for the 
admission of elderly families in accordance with the applicable program 
regulation.
    Owners of covered developments are encouraged to cooperate with HAs 
in a timely manner in making these determinations and (if applicable) 
in providing the certification that their development is a covered 
development (for example: a development under the Section 8 New 
Construction Program), and that it was developed primarily for 
occupancy by the elderly, and that the owner has established 
preferences for the admission of elderly families. The owner will also 
concurrently provide the HA with names, addresses and telephone numbers 
of those families on the development's waiting list that are non-
elderly disabled families.
    HAs must also submit information supportive of the number of other 
non-elderly disabled families residing in the community who would 
qualify for one-bedroom or zero-bedroom units (not on the waiting lists 
of covered developments).

E. Corrections to Deficient Applications for Section 8 Rental Vouchers 
and Certificates Pertinent to Certain Section 8 Project-Based 
Developments

(1) Acceptable Applications
    The local HUD Office will initially screen all applications and 
notify HAs of deficiencies by letter within 7 calendar days. If an 
application has deficiencies, the HA will have 14 calendar days from 
the date of the issuance of the HUD notification letter to submit the 
missing or corrected information to the HUD Office before the 
application can be considered for further processing by HUD. All HAs 
must submit corrections within 14 calendar days from the date of the 
HUD Office letter notifying the applicant of any such deficiency. 
Information received after 3 p.m. local time (i.e., the time in the 
appropriate HUD Office), of the 14th calendar day of the correction 
period will not be accepted and the application will be rejected as 
incomplete.
(2) Unacceptable Applications
    (a) After the 14-calendar day deficiency correction period, the HUD 
Office will immediately notify any HA that submitted an application 
that the local HUD Office determines is not acceptable for processing. 
The HUD Office notification of rejection letter to the HA must state 
the basis for the decision.
    (b) Applications for Section 8 rental assistance that fall into any 
of the following categories will not be processed:
    (i) There is a pending civil rights suit against the HA instituted 
by the Department of Justice or there is a pending administrative 
action for civil rights violations instituted by HUD (including a 
charge of discrimination under the Fair Housing Act).
    (ii) There has been an adjudication of a civil rights violation in 
a civil action brought against the HA by a private individual, unless 
the HA is operating in compliance with a court order or implementing a 
HUD-approved resident selection and assignment plan or compliance 
agreement designed to correct the areas of noncompliance.
    (iii) There are outstanding findings of noncompliance with civil 
rights statutes, Executive Orders, or regulations, as a result of 
formal administrative proceedings, or the Secretary has issued a charge 
against the applicant under the Fair Housing Act, unless the applicant 
is operating under a conciliation or compliance agreement designed to 
correct the areas of noncompliance.
    (iv) HUD has denied application processing under Title VI of the 
Civil Rights Act of 1964, the Attorney General's Guidelines (28 CFR 
50.3), and the HUD Title VI regulations (24 CFR 1.8) and procedures 
(HUD Handbook 8040.1), or under section 504 of the Rehabilitation Act 
of 1973 and HUD regulations (24 CFR 8.57).
    (v) The HA has serious unaddressed, outstanding Inspector General 
audit findings, Fair Housing and Equal Opportunity monitoring and 
compliance review findings, or HUD management review findings for its 
rental voucher or rental certificate programs. HA has serious 
underutilization of rental vouchers or certificates not attributable to 
the three month statutory delay for the reissuance of rental vouchers 
and certificates. The only exception to this category is if the HA has 
been identified under the policy established in section B.(4)(b) of 
this NOFA and the HA makes application with a designated contract 
administrator.
    (vi) The HA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the HA to administer an 
additional increment of rental vouchers or rental certificates.
    (vii) An HA application that does not comply with the requirements 
of 24 CFR 982.102 and this NOFA, after the expiration of the 14-
calendar day technical deficiency correction period will be rejected 
from processing.

F. Application Selection Process for Section 8 Rental Vouchers and 
Certificates Pertinent to Certain Section 8 Project-Based Developments

(1) HUD Office Review
    Upon receipt, the Office of Public Housing in the HUD Office will 
screen HA applications and stop processing any applications found 
unacceptable for further processing, as per paragraph E.(2) above.
    If the HUD Office determines that the application is approvable, it 
will notify HUD Headquarters, Attention: Gerald

[[Page 17677]]

Benoit, Director, Operations Division, Room 4220, 451 Seventh St., 
S.W., Washington, D.C. 20410, that it is recommending that the 
application be funded. Headquarters shall be notified by the HUD Office 
within 30 days of the date of its receipt of the HA's application in 
response to this NOFA.
(2) Funding
    Headquarters will fund, on a first-come, first-served basis, all 
applications determined approvable by HUD Headquarters and for which 
the Section 8 application is recommended for approval by the HUD 
Office. The ``first-come'' status of each HA's application shall be 
based on the date and time the application (concurrently submitted to 
HUD Headquarters and the local HUD Office--see paragraph b, Certain 
Section 8 Projects, under the paragraph entitled Addresses) is received 
in HUD Headquarters. As HAs are selected, the cost of funding the 
applications will be subtracted from the funds available. Any remaining 
funds will be added to those funds for use in funding applications 
related to designated housing allocation plans.
    When remaining budget authority is insufficient to fund the last 
selected HA application in full, HUD Headquarters will fund that 
application to the extent of the funding available, unless the HA's 
application indicates it will only accept a higher number of units. In 
that event, the next selected application shall be one which has 
indicated a willingness to accept the lesser amount of funding for 
units available.
(3) Program Type
    If an HA's application specifically requests funding for either 
rental vouchers or rental certificates, and funding for the specified 
program is not available, HUD will award the available form of 
assistance, notwithstanding the program type specified in the HA 
application.

G. Other Matters

Catalog of Federal Domestic Assistance
    The Federal Domestic Assistance numbers for this program are: 
14.855 and 14.857.
Environmental Impact
    This NOFA provides funding under, and does not alter environmental 
requirements of, 24 CFR part 982. This NOFA provides funding only for 
the tenant-based assistance, which is a categorical exclusion not 
subject to the individual environmental clearance requirements cited in 
24 CFR 50.4. The regulations referred to above, therefore, do not 
contain environmental review requirements. Accordingly, under 24 CFR 
50.19(c)(5), this NOFA is categorically excluded from environmental 
review requirements under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321).
Federalism Impact
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this notice will not have substantial direct effect on 
States or their political subdivisions, or the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the notice is not subject to review under the Order. This notice is a 
funding notice and does not substantially alter the established roles 
of the Department, the States, and local governments, including HAs.
Impact on the Family
    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this notice does not have 
potential for significant impact on family formation, maintenance, and 
general well-being within the meaning of the Executive Order and, thus, 
is not subject to review under the Order. This is a funding notice and 
does not alter program requirements concerning family eligibility.
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:
    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.
    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 ethics related questions should 
contact the HUD Office of Ethics (202) 708-3815. (This is not a toll-
free number.) For HUD employees who have specific program questions, 
such as whether particular subject matter can be discussed with persons 
outside HUD, the employee should contact the appropriate Field Office 
Counsel, or Headquarters counsel for the program to which the question 
pertains.
    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,

[[Page 17678]]

Public Law 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, Public Law 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.

    Dated: April 7, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-9334 Filed 4-9-97; 8:45 am]
BILLING CODE 4210-33-P