29834 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4344–N–01]

Community Development Block Grant

Program for Indian Tribes and Alaska

Native Villages Fiscal Year 1998 Notice

of Funding Availability

AGENCY: Office of the Assistant

Secretary for Public and Indian

Housing, HUD.

ACTION: Notice of Funding Availability

for Fiscal Year 1998.

SUMMARY: This notice announces the

availability of $67,003,105 for the

Community Development Block Grant

Program for Indian Tribes and Alaska

Native Villages (ICDBG Program). The

primary objective of this program is the

development of viable Indian and

Alaska Native communities, including

decent housing, a suitable living

environment, and economic

opportunities, principally for persons of

low and moderate income. In the body

of this Notice of Funding Availability

(NOFA) is information concerning the

following: (a) The purpose of the NOFA

and information regarding eligibility

and available amounts; (b) A list of steps

involved and a checklist of the exhibits

required in the application process,

including where and how to apply and

what to submit; and (c) A description of

application processing, including the

selection process and the selection

criteria.

Application Due Date

Completed applications must be

submitted no later than 6 pm, local

time, on September 1, 1998 to the

addresses shown below. See below for

specific procedures governing the form

of application submissions (e.g., mailed

applications, express mail, overnight

delivery, or hand carried).

Mailed Applications

Applications will be considered

timely filed if postmarked on or before

12 midnight on the application due date

and received by the appropriate Area

ONAP on or within ten (10) days of the

application due date.

Applications Sent By Overnight/Express

Delivery

Applications sent by overnight

delivery or express mail will be

considered timely filed if received

before or on the application due date, or

upon submission of documentary

evidence that they were placed in

transit with the overnight delivery

service by no later than the specified

application due date.

Hand Carried Applications

Hand carried applications to the

appropriate Area ONAP will be

accepted during normal business hours

before the application due date. On the

application due date, business hours

will be extended to 6:00 pm.

Addresses for Submitting Applications

Applicants in the following

geographic locations should submit

their applications to the identified Area

ONAP:

All States East of the Mississippi

River, Plus Iowa and Minnesota:

Eastern/Woodlands Office of Native

American Programs, Community

Development and Tribal Relations (CD &

TR) Staff, 77 West Jackson Blvd.,

Chicago, IL 60604–3507; Telephone:

(312) 886–4532, Ext. 2815.

Louisiana, Kansas, Oklahoma, and

Texas, except West Texas: Southern

Plains Office of Native American

Programs, CD & TR Staff, Suite 400, 500

W. Main Street, Oklahoma City, OK

73102–3202; Telephone: (405) 553–

7525.

Colorado, Montana, Nebraska, North

Dakota, South Dakota, Utah and

Wyoming: Northern Plains Office of

Native American Programs, CD & TR

Staff, First Interstate Tower North, 633

17th Street, Denver, CO 80202–3607;

Telephone: (303) 672–5457.

Arizona, California, and Nevada:

Southwest Office of Native American

Programs, CD & TR Staff, Two Arizona

Center, Suite 1650, 400 N. Fifth Street,

Phoenix, AZ 85004–2361; Telephone:

(602) 379–4197.

New Mexico and West Texas:

Southwest Office of Native American

Programs, CD & TR Specialist,

Albuquerque Plaza, 201 3rd Street NW,

Suite 1830, Albuquerque, NM 87102–

3368; Telephone: (505) 766–1372.

Idaho, Oregon, Washington:

Northwest Office of Native American

Programs, CD & TR Staff, Federal Office

Building, 909 First Avenue, Suite 200,

Seattle, WA 98104–1000; Telephone:

(206) 220–5271.

Alaska: Alaska Office of Native

American Programs, CD & TR Staff, 949

E. 36th Avenue, Suite 401, Anchorage,

AK 99508–4135; Telephone: (907) 271–

4603.

FOR FURTHER INFORMATION, APPLICATION

KITS, AND TECHNICAL ASSISTANCE

CONTACT:

For Further Information. General

program questions may be directed to

the Area ONAP serving your area or to

Robert Barth, Office of Native American

Programs, Office of Public and Indian

Housing, Department of Housing and

Urban Development, P.O. Box 36003,

450 Golden Gate Ave., San Francisco,

CA 94102; telephone (415) 436–8122.

The TTY number is (415) 436–6594.

(These are not toll-free numbers.)

For Application Kits. Application kits

may be obtained from the Area ONAPs

identified above. Requests for

application kits should be made

immediately to ensure sufficient time

for application preparation. HUD will

distribute application kits as soon as

they become available.

For Technical Assistance. Prior to the

application deadline, staff will be

available to provide general guidance,

but not guidance in actually preparing

the application. If applicable, following

selection, but prior to award, HUD staff

will be available to assist in clarifying

or confirming information that is

required to address a pre-award

requirement or condition.

SUPPLEMENTARY INFORMATION:

Changes From FY 1997 NOFA

1. Due Date for Application

Submission. The Area ONAP will take

into consideration circumstances

beyond an applicant’s control when

determining if the due date has been

met by applicants which choose to

submit applications via the mail or an

overnight delivery service. If mailed, an

application will be determined to have

met the submission timing requirements

if it was postmarked by 6 p.m. on

September 1, 1998 and received in the

Area ONAP within ten days of that date.

If sent via an overnight delivery service,

an application will be determined to

have met the submission timing

requirements if the applicant provides

documentation that it was placed in

transit with such a service by no later

than 6 p.m. on September 1, 1998 and

received by the Area ONAP within five

days of that date.

2. Grant Ceilings. Grant ceilings have

been changed for applicants in the

following Area ONAP jurisdictions.

Eastern/Woodlands—The ceiling for

all applicants has been raised from

$300,000 to $400,000.

Southwest—The ceiling for the

applicants with the smallest

populations (0–1,500) has been raised

from $450,000 to $550,000. In addition,

the total number of applicant

population categories has been reduced

from nine to six.

Northwest—The ceiling for all

applicants has been raised from

$320,000 to $335,000.

3. Proposed Biennial Funding for

Applicants in the Jurisdiction of the

Alaska Area ONAP. A single

application process under the

provisions and requirements set forth in

this NOFA is proposed to be used for
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29835

both the FY 1998 and the FY 1999

funding allocations to the Alaska Area

ONAP. The basis for this proposal and

the procedures which would be

followed if it is implemented are set

forth in section I(C) of this NOFA.

4. Application Requirements—

Certificate Regarding Lobbying. The

need to include a certificate regarding

lobbying and a SF–LLL (if applicable)

has been explicitly referenced as an

application component. In FY 1997,

these requirements were stated in

section XII., Findings and Certifications,

but were not specifically mentioned in

section IV., Application Process and

Submission Requirements.

5. Number of Copies of an

Application to be Submitted. In FY

1997, the requirement that an applicant

submit one originally signed and two

copies of an application was stated in

the application kit but not the NOFA.

This year this requirement is stated in

the NOFA as well as the kit.

6. Documentation Required for Point

Award for Leveraged Resources. It has

been made explicit that neither the

contribution of indirect administrative

costs nor resources to pay for the costs

of operation and maintenance of a

proposed project will be considered

leveraged resources for purpose of point

award.

7. Corrections to Technically Deficient

Applications and Provision of

Supplemental Information. The

processes to be used by the Area ONAPs

to allow applicants to provide

corrections to deficient applications and

to request supplemental or additional

information from an applicant have

been more fully detailed and explained.

However, the circumstances or

situations under which these processes

will be used have not been changed: the

definition of a correctable technical

deficiency remains the same as does the

provision that nothing submitted by an

applicant after the deadline date can

enhance the rating of a project.

8. Applicant Specific Thresholds. (i)

Community Development. The

benchmarks and process to be used to

assess whether or not an applicant is

making satisfactory progress in

completing previously approved ICDBG

projects have been clarified. This has

been done by establishing a specific link

between compliance with an approved

project implementation schedule and

performance.

(ii) Housing Assistance. The process

and procedures to be used to assess

applicant performance in the provision

of housing assistance to low and

moderate income tribal members have

been modified to reflect the

requirements and characteristics of

assistance provided under the Native

American Housing and Self

Determination Act of 1996 (25 U.S.C.

4101, et seq.) also known as NAHASDA.

9. New Threshold for Housing

Category Projects. A new threshold

requirement for housing category

projects has been established. This

threshold will require an applicant to

provide an assurance that the project

proposed is consistent with, and to the

extent possible, identified in, the Indian

Housing Plan (IHP) submitted by or on

behalf of the applicant under the

provisions of NAHASDA. If the IHP has

not been submitted, the applicant shall

provide an assurance that if an IHP is

submitted, it will specifically reference

the proposed project.

10. Housing Rehabilitation Grant

Limits. The grant limits set forth for

applicants in the following Area ONAP

jurisdictions have been changed.

FY 1998 FY 1997

Eastern/Woodlands ... $20,000 $15,000.

Southern Plains ........ $15,000 $20,000.

Southwest ................. $40,000 $35,000.

Alaska ....................... $50,000 Lesser of

$45/

sq.ft. or

$35,000.

11. Housing Rehabilitation Projects—

Adopted Rehabilitation Standards. The

selection criterion regarding adopted

housing rehabilitation standards has

been increased in maximum value from

5 to 10 points. The additional 5 points

would be awarded to projects if the

applicant’s adopted and submitted

standards include specific requirements

which address child safety measures.

This revision reflects the Healthy

Homes initiative being implemented by

HUD.

12. Housing Rehabilitation Projects—

Priority to Neediest Households. The

selection criterion regarding the

proposed provision of assistance by the

applicant to the neediest households as

defined in the NOFA has been reduced

to 5 points from 10 points.

13. Land Acquisition to Support New

Housing Projects—Commitment and

Availability of Housing Resources

Selection Criterion. This selection

criterion has been modified to reflect

situations in which these resources are

committed under the provisions of

NAHASDA.

14. Threshold for New Housing

Construction. Since the Indian Housing

Block Grant Program was not in

existence in FY 1997, the threshold

which addresses the availability of other

resources to meet the needs of the

households to be assisted has been

modified so that an applicant must now

demonstrate that an Indian Housing

Block Grant would not be available to

meet the needs of these households.

15. New Housing Construction

Projects—Adopted Housing

Construction Policies and Plan. The

maximum possible point award under

this selection criterion has been

increased from 20 to 25 points. The

additional 5 points would be awarded to

projects if the applicant’s policy and

plan specifically address the

incorporation of child safety measures

in the housing to be constructed. This

revision reflects the Healthy Homes

initiative being implemented by HUD.

16. New Housing Construction

Projects—Beneficiary Identification. The

maximum point award for this selection

criterion has been reduced to 5 points

from 10 points.

17. Community Facilities—

Buildings—Benefits the Neediest. The

maximum points available under this

criterion has been increased from 10 to

15 points and values of intermediate

point awards have also been changed to

be consistent with the similar factor

under Community Facilities—

Infrastructure.

18. Community Facilities—

Buildings—Multi-use/multi-benefit. This

selection criterion has been eliminated

and the 5 points available under it in FY

1997 have been reassigned to the

Benefits the Neediest criterion.

19. Editorial and Formatting

Revisions. In addition to the changes

discussed above, this notice makes a

number of non-substantive technical

changes to the FY 1997 NOFA. These

editorial and formatting changes should

make the NOFA easier to understand.

Promoting Comprehensive Approaches

to Housing and Community

Development

HUD is interested in promoting and

supporting 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, as noted above, a new

threshold has been included for all

housing category projects. Specifically,

applicants will be required to

demonstrate that such projects are

consistent with, and where possible, are

identified in, the Indian Housing Plan

(IHP) submitted on, or on behalf of, the

applicant under the provisions of the

Native American Housing and SelfDetermination Act of 1996 (25 U.S.C.

4101 et seq.). If the IHP has not been
29836 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

submitted by the ICDBG application due

date, the applicant must submit an

assurance that if an IHP is submitted, it

will specifically reference the proposed

housing category project.

Table of Contents

I. Authority; Purpose; Amounts Allocated;

and Eligibility.

(A) Authority.

(B) Purpose.

(C) Amounts Allocated.

(D) Eligible Applicants.

(E) Eligible Activities.

II. Program Requirements.

(A) Statutory and Regulatory

Requirements.

(B) Nondiscrimination and Compliance

with Civil Rights Laws.

(C) Relocation.

(D) Debarred and Suspended Contractors.

(E) Indian Preference.

(F) Conflict of Interest.

(G) Certifications and Assurances.

(H) Economic Opportunities for Low and

Very Low Income Persons.

III. Application Selection Process.

(A) Rating and Ranking.

(B) Factors for Award Used to Evaluate and

Rate Applications.

IV. Application Submission Requirements

and Checklist.

(A) General.

(B) Demographic data.

(C) Publication of Community

Development Statement.

(D) Application Submission.

(E) Documentation requirements for point

award for leveraged resources.

V. Corrections to Deficient Applications and

Supplemental Information.

VI. Findings and Certifications.

(A) Paperwork Reduction Act Statement.

(B) Environmental Impact.

(C) Recipient Compliance with

Environmental Requirements.

(D) Federalism, Executive Order 12612.

(E) Prohibition Against Lobbying

Activities.

(F) Section 102 of the HUD Reform Act—

Documentation, Access and Disclosure.

(G) Section 103 of the HUD Reform Act—

Prohibition of Advance Disclosure of

Funding Decisions.

(H) Catalog of Federal Domestic Assistance

Number.

Additional Information

I. Authority; Purpose; Amounts

Allocated; and Eligibility

(A) Authority. Title I, Housing and

Community Development Act of 1974,

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

sec. 7(d) of the Department of Housing

and Urban Development Act (42 U.S.C.

3535(d)); 24 CFR part 1003.

(B) Purpose. This notice announces

the availability of $67,003,105 for the

ICDBG Program.

(C) Amount Allocated.

(1) General. Amendments to title I of

the Housing and Community

Development Act of 1974 have required

that the allocation for Indian Tribes be

awarded on a competitive basis in

accordance with selection criteria

contained in a regulation promulgated

by the Secretary after notice and public

comment. All grant funds awarded in

accordance with this NOFA are subject

to the requirements of 24 CFR part 1003.

Applicants within an Area ONAP’s

geographic jurisdiction compete only

against each other for that Area ONAP’s

allocation of funds.

(2) Allocations. The requirements for

allocating funds to Area ONAPs

responsible for program administration

are found at 24 CFR 1003.101.

Following these requirements, the

allocations for FY 1998 are as follows:

Eastern/Woodlands .............. $5,103,221

Southern Plains ................... 12,076,948

Northern Plains .................... 10,186,349

Southwest ............................. 27,790,427

Northwest ............................. 3,891,943

Alaska ................................... 5,454,217

Total .............................. 64,503,105

The total allocation includes $3,105

in unused funds from the amount

reserved by the Assistant Secretary in

Fiscal Year 1997 for imminent threat

grants. As indicated in section I.(a)(4)

below, $2,500,000 will be retained to

fund imminent threat grants.

(3) Grant Ceilings. The authority to

establish grant ceilings is found at 24

CFR 1003.100(b)(1). Grant ceilings are

established for FY 1998 funding at the

following levels:

Area ONAPs Population Ceiling

Eastern/Woodlands ............................................................................................................................. ALL ..................................... $400,000

Southern Plains: .................................................................................................................................. ALL ..................................... 750,000

Northern Plains: .................................................................................................................................. ALL ..................................... 800,000

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

10,501–50,000 ................... 2,500,000

7,501–10,500 ..................... 2,000,000

6,001–7,500 ....................... 1,000,000

1,501–6,000 ....................... 750,000

0–1,500 .............................. 550,000

Northwest ............................................................................................................................................ ALL ..................................... 335,000

Alaska .................................................................................................................................................. ALL ..................................... 500,000

For the Southwest Area ONAP

jurisdiction, the population used to

determine ceiling amounts is the Native

American population which resides on

a reservation or rancheria.

(4) Proposed biennial funding for

applicants in the jurisdiction of the

Alaska Area ONAP. This NOFA

provides a single application process for

the FY 1998 funds allocated to the

Alaska Area ONAP and, subject to

appropriation for FY 1999, that may be

allocated to the Alaska Area ONAP in

FY 1999.

The jurisdiction of the Alaska Area

ONAP includes the largest number of

potentially eligible applicants. Given

the fact that the vast majority of these

entities have small population bases,

however, the total amount allocated to

the Alaska Area ONAP under the

requirements of § 1003.101 is the third

smallest amount allocated to any of the

Area ONAPs. In recent years, given the

relationship between potentially eligible

applicants and the funds available and

the very competitive nature of the

program, fewer than one in four of the

applications submitted have been

funded in the annual competition. A

score in excess of 90 (out of a potential

100 points) has typically been required

for any project to be successful. Many

applicants have expended considerable

amounts of time and resources year after

year in an unsuccessful pursuit of

funding and many worthy projects are

returned unfunded each year. It is the

opinion of HUD that having one process

would reduce the administrative burden

to the applicants of preparing and

submitting applications repeatedly and

would potentially provide that more

applicants which have not been funded

in the past could be funded.

Under this process, if implemented,

applicants would prepare and submit

applications under the provisions and

requirements of the NOFA. All

applications would be screened,

reviewed, and rated under the
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29837

provisions and requirements of the

NOFA. After rating is completed and a

ranked list of projects developed, grant

awards would be made using FY 1998

allocated funds until these funds are

exhausted. Applications not funded

would be retained by the Alaska Area

ONAP.

Subject to appropriations, any FY

1999 funds allocated to the Alaska Area

ONAP are expected to be used for grant

offers to those applicants with the

highest ranking retained applications

until these funds are exhausted. In FY

1998, HUD will only announce those

ICDBG grant offers made in FY 1998. FY

1999 ICDBG program grant offers will

not be made or announced until the

enactment of FY 1999 appropriations.

The FY 1999 grant offers would also be

contingent upon the applicant

confirming in writing and providing

such supporting documentation as is

required to the Alaska Area ONAP

within 30 days of the offer that:

(a) The applicant continues to meet

performance threshold requirements;

(b) The project still meets all

community development

appropriateness and project specific

threshold requirements; and

(c) No changes have occurred since

the submission of the application which

would affect the rating or viability of the

project.

Potential applicants and other

interested parties are encouraged to

submit their comments on this proposal

directly to the Alaska Area ONAP at the

address identified in this NOFA. To be

considered, these comments must be

received July 2, 1998. A final

determination on this proposal will be

made within 35 calendar days of this

NOFA. If, based on an evaluation of the

comments received, it is determined to

implement the proposal, an amendment

to this NOFA will be published. The

proposed biennial funding process is

one method of responding to the unique

situation existing in the Alaska Area

ONAP. HUD may, in the future, propose

other methods for addressing these

distinctive Alaskan issues. HUD intends

to award FY 2000 funds through the

issuance of a separate competitive

funding notice.

(5) Imminent Threats. (a) The criteria

for grants to alleviate or remove

imminent threats to health or safety that

require an immediate solution are

described at 24 CFR part 1003, subpart

E. Please note that the problem to be

addressed must be such that an

emergency situation exists or would

exist if it were not addressed. In

addition, funds provided under the

provisions of that subpart may only be

used to address imminent threats which

are not of a recurring nature and which

represent a unique and unusual

circumstance that impact an entire

service area. In accordance with the

provisions of 24 CFR part 1003, subpart

E, $2,500,000 will be retained to meet

the funding needs of imminent threat

applications submitted to any of the

Area ONAPs. The grant ceiling for

imminent threat applications for FY

1998 is $350,000. This ceiling is

established pursuant to the provisions

of § 1003.400(c).

(b) Requests for assistance under the

imminent threat set-aside (24 CFR part

1003, subpart E) do not have to be

submitted by the deadline established in

this NOFA; the deadline applies to

applications submitted for assistance

under 24 CFR part 1003, subpart D,

Single purpose grants.

(c) If, in response to a request for

assistance, an Area ONAP issues a letter

to proceed under the authority of

§ 1003.401(a), an application must be

submitted to and approved by the Area

ONAP before a grant agreement may be

executed. This application must consist

of the following components:

(i) Standard Form 424, Application

for Federal Assistance;

(ii) Brief description of the proposed

project;

(iii) Form HUD–4123, Cost Summary;

(iv) Form HUD–4125, Implementation

Schedule;

(v) Form HUD–2880, Applicant/

Recipient Disclosure/Update Report;

(vi) Form HUD–4126, Certifications;

(vii) Drug-free workplace certification

(24 CFR part 24, subpart F); and

(viii) Certification regarding lobbying

activities (24 CFR part 87) and SF-LLL

(if applicable).

(D) Eligible Applicants.—(1) General.

To apply for funding in a given fiscal

year, an applicant must be eligible as an

Indian Tribe or Alaska Native Village (or

as a tribal organization) by the

application submission date.

(2) Tribal Organizations. Tribal

organizations are permitted to submit

applications under 24 CFR 1003.5(b) on

behalf of eligible tribes or villages when

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

authorize the organization to do so

under concurring resolutions. As is

stated in this regulatory section, the

tribal organization must itself be eligible

under title I of the Indian SelfDetermination and Education

Assistance Act.

(3) Successors to Eligible Entities. If a

tribe or tribal organization claims that it

is a successor to an eligible entity, the

Area ONAP must review the

documentation to determine whether it

is in fact the successor entity.

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

the unique structure of tribal entities

eligible to submit ICDBG applications in

Alaska, and as only one ICDBG

application may be submitted for each

area within the jurisdiction of an entity

eligible under 24 CFR 1003.5, a Tribal

Organization which submits an

application for activities in the

jurisdiction of one or more eligible

tribes or villages must include a

concurring resolution from each such

tribe or village authorizing the submittal

of the application. Each such resolution

must also indicate that the tribe or

village does not itself intend to submit

an ICDBG application for that funding

round. The hierarchy for funding

priority continues to be the IRA

Council, the Traditional Village

Council, the Village Corporation and the

Regional Corporation.

(b) On October 23, 1997 (62 FR 205),

the Bureau of Indian Affairs (BIA)

published a Federal Register Notice

entitled ‘‘Indian Entities Recognized

and Eligible to Receive Services From

the United States Bureau of Indian

Affairs.’’ This notice provides a listing

of Indian Tribal Entities in Alaska found

to be Indian Tribes as the term is

defined and used in 25 CFR part 83.

Additionally, pursuant to title I of the

Indian Self Determination and

Education Assistance Act, ANCSA

Village Corporations and Regional

Corporations are also considered tribes

and therefore eligible applicants for the

ICDBG program.

(c) Any questions regarding eligibility

determinations and related

documentation requirements for entities

in Alaska should be referred to the

Alaska Area ONAP prior to the deadline

for submitting an application. (See 24

CFR 1003.5 for a complete description

of eligible applicants.)

Please note: when used in this NOFA

the word ‘‘tribe’’ means an Indian Tribe,

band, group or nation, including Alaska

Indians, Aleuts, Eskimos, Alaska Native

Villages, ANCSA Village Corporations

and Regional Corporations.

(E) Eligible Activities. Activities that

are eligible for ICDBG funds are

identified at 24 CFR part 1003, subpart

C.

II. Program Requirements

(A) Statutory and Regulatory

Requirements. All applicants must meet

and comply with all statutory and

regulatory requirements. Applicable

program specific statutory requirements

for this program are found in title I of

the Housing and Community

Development Act of 1974, as amended

(42 U.S.C. 5301 et seq.). Applicable

program specific regulatory
29838 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

requirements are found at 24 CFR part

1003. Copies of the regulations are

available from HUD Community

Connections Information Clearinghouse.

(B) Nondiscrimination and

Compliance with Civil Rights Laws.

Under the authority of section 107(e)(2)

of the Housing and Community

Development Act of 1974, as amended,

the Secretary has waived the

requirement that recipients comply with

the antidiscrimination provisions in

section 109 of the Act with respect to

race, color and national origin.

Recipients must comply with the other

prohibitions against discrimination

found in Section 109; the Indian Civil

Rights Act (Title II of the Civil Rights

Act of 1968, 24 U.S.C. 1001–1303); the

Age Discrimination Act of 1975 (42

U.S.C. 6101–6107); and, Section 504 of

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

794). Recipients must comply with the

substantial rehabilitation and new

construction requirements, in addition

to the other requirements of 24 CFR part

8.

(C) Relocation. If an applicant’s

proposed activities involve the

relocation or displacement of persons,

the requirements of the Uniform

Relocation Assistance and Real Property

Acquisition Policies Act of 1970 and the

government-wide implementing

regulations at 49 CFR part 24 apply to

funding under this NOFA.

(D) Debarred or Suspended

Contractors. The provisions of 24 CFR

part 24 apply to the employment,

engagement of services, awarding of

contracts, subgrants, or funding of any

recipients, or contractors or

subcontractors, during any period of

debarment, suspension, or placement in

ineligibility status.

(E) Indian Preference. HUD has

determined that programs funded under

this NOFA are subject to section 7 (b)

of the Indian Self-Determination and

Education Assistance Act (25 U.S.C.

450b). The provisions and requirements

for implementing this section are set

forth in 24 CFR 1003.510.

(F) Conflict of Interest. In addition to

the conflict of interest requirements

with respect to procurement

transactions found in 24 CFR 85.36 and

84.42, as applicable, the provisions of

24 CFR 1003.606 apply to such

activities as the provision of assistance

by the recipient or by its subrecipients

to businesses, individuals, and other

private entities under eligible activities

which authorize such assistance.

(G) Certifications and Assurances.

The specific certifications and

assurances which must be provided by

an applicant are included under section

IV. of this NOFA,

(H) Economic Opportunities for Low

and Very Low Income Persons.

Recipients must comply with section 3

of the Housing and Urban Development

Act of 1968 (12 U.S.C. 1701u)

(Employment Opportunities for Lower

Income Persons in Connection with

Assisted Projects) and its implementing

regulations at 24 CFR part 135.

Recipients must ensure that training,

employment and other economic

opportunities are directed, to the

greatest extent feasible, toward low and

very low income persons, particularly

those who are recipients of government

assistance for housing and to business

concerns that provide economic

opportunities to low and very low

income persons. Recipients must

comply with the reporting and

recordkeeping requirements found at 24

CFR part 135, subpart E. Tribes that

receive HUD assistance described in this

part shall comply with the procedures

and requirements of this part to the

maximum extent consistent with, but

not in derogation of, compliance with

section 7(b) of the Indian SelfDetermination and Education

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

III. Application Selection Process

(A) Rating and Ranking

(1) Screening for Acceptance. Each

Area ONAP will screen applications for

single purpose grants. Applications

failing this screening shall be rejected

and returned to the applicants unrated.

Area ONAPs will accept applications if

all the criteria listed below as items (a)

through (f) are met:

(a) The application is received or

submitted in accordance with the

requirements set forth under

APPLICATION DUE DATE in this

NOFA;

(b) The applicant is eligible;

(c) The proposed activities are

eligible. Activities assisted with ICDBG

funds are subject to the requirements of

section 504 of the Rehabilitation Act of

1973 and HUD’s implementing

regulations at 24 CFR part 8;

(d) The application contains

substantially all the components

specified in section IV.(D) of this notice;

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

to be used for activities that benefit low

and moderate income persons, in

accordance with the requirements of

§ 1003.208; and

(f) The application is for an amount

which does not exceed the grant ceilings

that are established by the NOFA.

(2) Application Review Process.

Threshold review. The Area ONAP

will review each application that passes

the screening process to ensure that

each applicant and each proposed

project meets the applicable threshold

requirements set forth in 24 CFR

1003.301(a) and 1003.302, as

implemented by this NOFA. If an

applicant fails to meet any of the

applicant-specific thresholds, its

application cannot be accepted for

rating and ranking. Project(s) that do

not meet the community development

appropriateness or applicable projectspecific thresholds will not be

considered for funding.

(b) Rating Team. All projects that

meet the acceptance criteria and

threshold requirements will be reviewed

and rated by an Area ONAP rating team

of at least three voting members. The

Area ONAP rating team will examine

each project to determine in which one

of the rating categories set forth in 24

CFR 1003.303(a) the project most

appropriately belongs. The project will

be rated on the basis of the criteria

identified in the rating category

component to which the project has

been assigned. The total points for a

rating component are 100, which is the

maximum any project can receive.

(c) Public service projects. Due to the

statutory 15 percent cap on public

services activities, applicants may not

receive single purpose grants solely to

fund public services activities.

However, any application may contain a

public services component for up to 15

percent of the total grant. This

component may be unrelated to the

other project(s) included in the

application. If an application does not

receive full funding, the public services

allocation will be proportionately

reduced to comprise no more than 15

percent of the total grant award.

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

be ranked against each other according

to the point totals they receive,

regardless of the rating category or

component under which the points

were awarded. Projects will be selected

for funding based on this final ranking,

to the extent that funds are available.

Individual grant amounts will be

determined in a manner consistent with

the considerations set forth in 24 CFR

1003.100(b)(2). Specifically, an Area

ONAP may approve a grant amount less

than the amount requested. In doing so,

the Area ONAP may take into account

the size of the applicant, the level of

demand, the scale of the activity

proposed relative to need and

operational capacity, the number of

persons to be served, the amount of

funds required to achieve project

objectives, and the administrative

capacity of the applicant to complete

the activities in a timely manner.

(ii) If the Area ONAP determines that

an insufficient amount of money is
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29839

available to adequately fund a project, it

may decline to fund that project and

fund the next highest ranking project or

projects for which adequate funds are

available. The Area ONAP may select,

in rank order, additional projects for

funding if one of the higher ranking

projects is not funded, or if additional

funds become available.

(e) Tiebreakers. When rating results in

a tie among projects and insufficient

resources remain to fund all tied

projects, Area ONAPs shall approve

projects that can be fully funded over

those that cannot be fully funded. When

that does not resolve the tie, the

following factors will be used in the

order listed to resolve the tie:

(i) Eastern/Woodlands Office.

(1) The applicant with the fewest

active grants.

(2) The applicant that has not

received an ICDBG grant over the

longest period of time.

(3) The project that would benefit the

highest percentage of low and moderate

income persons.

(ii) Southern Plains Office.

(1) The applicant that has not

received an ICDBG grant over the

longest period of time over the last 8

years.

(2) The applicant with the fewest

active grants.

(3) The project that would benefit the

highest percentage of low and moderate

income persons.

(iii) Northern Plains and Southwest

Offices.

(1) The applicant that has not

received an ICDBG grant over the

longest period of time.

(2) The applicant with the fewest

active grants.

(3) The project that would benefit the

highest percentage of low and moderate

income persons.

(iv) Northwest Office.

(1) The applicant that has not

received an ICDBG grant over the

longest period of time.

(2) The applicant that has received the

fewest ICDBG dollars since the

inception of the program.

(3) The project that would benefit the

highest percentage of low and moderate

income persons.

(v) Alaska Office.

(1) The applicant that has not

received an ICDBG grant over the

longest period of time.

(2) The project that would benefit the

highest percentage of low and moderate

income persons.

(3) The project that would benefit the

most low and moderate income persons.

(f) Pre-award requirements.

(i) Successful applicants may be

required to provide supporting

documentation concerning the

management, maintenance, operation,

or financing of proposed projects before

a grant agreement can be executed.

Applicants will normally be given no

less than thirty (30) calendar days to

respond to such requirements. In the

event that no response or an insufficient

response is made within the prescribed

time period, the Area ONAP may

determine that the applicant has not met

the requirements and the grant offer

may be withdrawn. The Area ONAPs

shall require supporting documentation

in those instances where:

(1) Specific questions remain

concerning the scope, magnitude,

timing, or method of implementing the

project; or

(2) The applicant has not provided

information verifying the commitment

of other resources required to complete,

operate, or maintain the proposed

project.

(ii) New projects may not be

substituted for those originally proposed

in the application.

(iii) Grant amounts allocated for

applicants unable to meet pre-award

requirements will be awarded in

accordance with the provisions of this

NOFA.

(3) General threshold requirements.

(a) General. Two types of general

thresholds are set forth in 24 CFR

1003.301(a): those that relate to

applicants, and those that address the

overall community development

appropriateness of the project(s)

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

CFR 1003.302.

(b) Applicant Thresholds. (i) General.

Applicant thresholds focus on the

administrative capacity of the applicant

to undertake the proposed project, on its

past performance in the ICDBG program,

and on its provision of housing

assistance to low and moderate income

tribal members.

(ii) Applicant-Specific Thresholds:

Capacity. The Area ONAP will assume,

absent evidence to the contrary, that the

applicant possesses, or can obtain the

managerial, technical, or administrative

capability necessary to carry out the

proposed project. The application

should address who will administer the

project and how the applicant plans to

handle the technical aspects of

executing the project. If the Area ONAP

determines, based on substantial

evidence (which could include

information provided by the most recent

risk analysis conducted by the Area

ONAP), that the applicant does not have

or cannot obtain the capacity to

undertake the proposed project, the

application will not receive further

consideration.

(iii) Applicant-Specific Thresholds:

Performance—(1) Community

Development. (a) If an applicant has

previously participated in the ICDBG

Program, the Area ONAP shall

determine whether the applicant has

performed adequately in grant

administration and management. This

determination will include an

evaluation of the most recent RADAR

(Risk Analysis and Determination for

Allocation of Resources) conducted by

the Area ONAP for the applicant. The

applicant is presumed to be performing

adequately unless the Area ONAP

makes a performance determination to

the contrary during periodic

evaluations.

(b) To assess whether or not a

recipient is making satisfactory progress

in completing previously approved

programs, actual progress will be

measured against the most recent

implementation schedule(s) for the

recipient’s program(s). This assessment

will be done in conjunction with the

evaluation of the RADAR and other

relevant information, e.g., monitoring

reports, which document or reflect a

recipient’s performance. A recipient

which is more than sixty days behind

schedule will be determined to be

performing inadequately with respect to

this aspect of grant administration.

(c) Where an applicant was found to

be performing inadequately, the Area

ONAP shall determine whether the

applicant has corrected the deficiency

or is following a schedule to correct

performance to which the applicant and

the Area ONAP have agreed. In cases of

previously documented deficient

performance, the Area ONAP must

determine that the applicant has taken

appropriate corrective action to improve

its performance prior to the application

due date.

(d) The Area ONAP will inform in

writing any potential applicant which

has been determined not to meet this

performance threshold no later than 30

days prior to the application due date.

If the performance threshold is not met

as of the application submission

deadline, an application will not be

accepted for rating and ranking.

(2) Housing assistance. (a) The

applicant is presumed not to have taken

actions to impede the provision of

housing assistance for low and moderate

income members of the tribe or village.

Any action taken by the applicant to

prevent or obstruct the provision or

operation of assisted housing for low

and moderate income persons shall be

evaluated in terms of whether it

constitutes inadequate performance by
29840 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

the applicant. If an applicant has

established or joined an Indian Housing

Authority (IHA), and this IHA has

obtained housing assistance from HUD,

the performance of the applicant in

meeting its obligations and

responsibilities to the IHA in the

development and operation of housing

units assisted under the United States

Housing Act of 1937 will be taken into

consideration in evaluating its housing

assistance performance. This evaluation

will include a review of the applicant’s

compliance with the provisions of the

documents which created its

relationship with the IHA and the

requirements of the Native American

Housing and Self-Determination Act of

1996 (42 U.S.C. 4101 et seq.). In

addition, if the applicant has designated

another entity (a tribally designated

housing entity (TDHE) to be the

recipient of Indian Housing Block Grant

Assistance on its behalf, compliance of

the applicant with its agreement with

the TDHE will also be a consideration

in HUD’s evaluation.

(b) An applicant will not be held

accountable for the poor performance of

its IHA (or TDHE) unless this

inadequate performance is found to be

a direct result of the applicant’s action

or inaction. Applicants which are

members of multi-tribal IHAs or

associated with multi-tribal TDHEs will

be judged only on their individual

performance and will not be held

accountable for the poor performance of

other tribes that are members of the IHA

or which are also associated with the

TDHE.

(c) If an applicant has received ICDBG

funds for the provision of new housing

through a Community Based

Development Organization (CBDO), the

Area ONAP will consider the following

in making its determination regarding

housing assistance performance:

(i) Whether the proposed units were

constructed;

(ii) Whether housing assistance was

provided to the beneficiaries identified

in the funded application, and if not,

why not;

(iii) Whether the provisions of the

applicant’s housing plan and

procedures have been followed; and

(iv) Whether there were sustained

complaints from tribal members

regarding provision and/or distribution

of ICDBG housing assistance.

(d) The Area ONAP will inform in

writing any potential applicant which

has been determined not to meet the

housing assistance performance

threshold no later than 30 days prior to

the application deadline.

(iv) Audits. The thresholds described

in paragraphs (3)(b)(ii) and (3)(b)(iii) of

this section III.(A) require the applicant

to meet the following performance

criteria:

(1) The applicant cannot have an

outstanding ICDBG obligation to HUD or

to an ICDBG program that is in arrears,

or it must have agreed to a repayment

schedule. An applicant that has an

outstanding ICDBG obligation that is in

arrears, or one that has not agreed to a

repayment schedule, will be

disqualified from the current

competition and from subsequent

competitions until the obligations are

current. If a grantee that was current at

the time of application submission

becomes delinquent during the review

period, the application may be rejected.

(2) The applicant cannot have an

overdue or unsatisfactory response to an

audit finding. If there is an overdue or

unsatisfactory response to an audit

finding, the applicant will be

disqualified from the current and

subsequent competitions until the

applicant has taken final action

necessary to close the audit finding. The

Area ONAP administrator may provide

exceptions to this disqualification in

cases where the applicant has made a

good faith effort to clear the audit

finding. An exception may be granted

when funds are due HUD or an ICDBG

program as a result of a finding only

when a satisfactory arrangement for

repayment of the debt has been made

and payments are current.

(c) Community Development

Appropriateness. In order to rate and

rank a project contained in an

application that has passed the

screening tests outlined in section III.(A)

of this NOFA, Area ONAPs must

determine that the proposed project

meets the community development

appropriateness thresholds set forth

below:

(i) Costs are reasonable. The project

must be described in sufficient detail so

that the Area ONAP can determine:

(1) That costs are reasonable; and

(2) That the funds requested from the

ICDBG program and all other sources

are adequate to complete the proposed

activity(ies) described in the

application.

(ii) Project is Appropriate. The project

is appropriate for the intended use.

(iii) Project is Usable or Achievable.

The project is usable or achievable in a

timely manner, generally within a two

year period. The timetable for project

implementation and completion must

be set forth on the form HUD 4125,

Implementation Schedule, included in

the application. A period of more than

two years is acceptable in certain

circumstances, if it is established that

such circumstances are beyond the

applicant’s control.

(B) Factors for Award Used To

Evaluate and Rate Applications.

The factors for rating and ranking

applications and the points for each

factor are provided below. The

maximum number of points for a rating

component is 100, which is the

maximum any project can receive.

(1) Summary of Rating Factors and

Point Awards.

Maximum

points

Housing

Sec. III.(B)(3)

(c) Rehabilitation

(i) Project Need and Design

(1) % of funds for standard rehab 20

(2) Applicant’s selection criteria .... 5

(3) Housing survey ........................ 15

(ii) Planning and Implementation

(1) Rehabilitation policies

(a) Rehabilitation standards .......... 10

(b) Selection policies and procedures .......................................... 10

(c) Project implementation policies

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

(2) Post rehab maintenance ......... 5

(3) Cost estimates ......................... 15

(4) Cost effectiveness ................... 5

(iii) Leveraging ............................... 5

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

(e) Land to Support New Housing

(i) Project Need ............................. 40

(ii) Planning and Implementation

(1) Suitability of the land ............... 20

(2) Housing resources ................... 10

(3) Supportive services ................. 5

(4) Commitment of households ..... 5

(5) Land to trust status .................. 5

(6) Infrastructure commitment ....... 10

(7) Land meets need and is reasonably priced ........................... 5

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

(g) New Housing Construction

(i) Project Need and Design

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

(2) Housing policies and plan ....... 25

(3) Beneficiary identification .......... 5

(ii) Planning and Implementation

(1) Occupancy standards .............. 10

(2) Site acceptability ...................... 15

(3) Energy conservation design .... 5

(4) Housing survey ........................ 10

(5) Cost effectiveness ................... 5

(iii) Leveraging ............................... 10

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

Community Facilities

Sec. III.(B)(4)

(a) Infrastructure

(i) Project Need and Design

(1) Meets an essential need ......... 20

(2) Benefits the neediest ............... 15

(3) Provides infrastructure/health

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

(ii) Planning and Implementation.
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29841

Maximum

points

(1) Maintenance and operation

plan ............................................ 15

(2) Appropriate and effective design scale and cost .................... 15

(iii) Leveraging ............................... 10

Total Points ................................ 100

(c) Buildings

(i) Project Need and Design

(1) Meets an essential need ......... 20

(2) Benefits the neediest ............... 15

(3) Provides building/health and

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

(ii) Planning and Implementation

(1) Maintenance and operation

plan ............................................ 15

(2) Appropriate and effective design scale and cost .................... 15

(iii) Leveraging ............................... 10

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

Economic Development

Sec. III.(B)(5)

(b) Economic Development

(i) Organization .............................. 8

(ii) Project Success

(1) Market analysis ........................ 15

(2) Management capacity ............. 15

(3) Financial analysis .................... 15

(iii) Leveraging ............................... 12

(iv) Jobs

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

(3) Quality of jobs/training ............. 5

(v) Additional considerations ......... 15

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

(2) Definitions.

Adopt means to approve by formal

tribal resolution.

Assure means to comply with a

specific NOFA requirement. The

applicant should state its compliance or

its intent to comply in its application.

Document means to supply

supporting written information and/or

data in the application which satisfies

the NOFA requirement.

Leverage means resources the grantee

will use in conjunction with ICDBG

funds to achieve the objectives of the

project. Resources include, but are not

limited to:

(1) Tribal trust funds;

(2) Loans from individuals or

organizations;

(3) State or Federal loans or

guarantees;

(4) Other grants; and

(5) Noncash contributions and

donated services.

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

documentation requirements for point

award for leveraged resources.)

Project Cost means the total cost to

implement the project. Project cost

includes both ICDBG and non ICDBG

funds and resources.

Section 8 standards means housing

quality standards contained in 24 CFR

982.401 (Section 8 Tenant-Based

Assistance: Unified Rule for TenantBased Assistance Under the Section 8

Rental Certificate Program and the

Section 8 Rental Voucher Program).

Standard Housing/Standard

Condition means housing which meets

the housing quality standards (HQS)

adopted by the applicant.

(1) The HQS adopted by the applicant

must be at least as stringent as the

Section 8 standards unless the Area

ONAP approves less stringent standards

based on a determination that local

conditions make the use of Section 8

standards infeasible.

(2) Applicants may submit their

request for the approval of standards

less stringent than Section 8 standards

prior to the application due date. If the

request is submitted with the

application, applicants should not

assume automatic approval by the Area

ONAP.

(3) The adopted standards must

provide for the following:

(i) That the house is safe, in a

physically sound condition with all

systems performing their intended

design functions;

(ii) A livable home environment;

(iii) An energy efficient building and

systems which incorporate energy

conservation measures; and

(iv) Adequate space and privacy for

all intended household members.

Housing

(3) Project Specific Thresholds and

Rating Factors for Housing.

(a) Specific thresholds for housing

category projects. (i) The applicant shall

provide an assurance that households

that have been evicted from HUD

assisted housing within the past five

years will not be assisted by the

proposed project except in emergency

situations. The Area ONAP

Administrator will review each

emergency situation proposed by an

applicant on a case-by-case basis to

determine whether an exception is

warranted.

(ii) Consistency with Indian Housing

Plan (IHP). The applicant shall provide

an assurance that the housing category

project proposed is consistent with, and

to the extent possible, identified in, the

Indian Housing Plan (IHP) submitted by

or on behalf of the applicant under the

provisions of the Native American

Housing and Self-Determination Act of

1996 (25 U.S.C. 4101 et seq.). (If the IHP

has not been submitted, the applicant

shall provide an assurance that if

submitted, the IHP will specifically

reference the proposed housing category

project.)

(b) Rehabilitation Thresholds and

Grant Limits.—(i) Thresholds. All

applicants for housing rehabilitation

grants shall adopt rehabilitation

standards and rehabilitation policies

prior to submitting an application.

These standards and policies must be

submitted with the application. The

applicant shall provide an assurance

that:

(1) Any house to be rehabilitated will

be the permanent non-seasonal

residence of the occupants; the residents

will live in the unit at least nine months

per year.

(2) Houses designated for eventual

replacement will only receive repairs

essential for the health and safety of the

occupants.

(3) Project funds will be used to

rehabilitate HUD assisted houses only

when the tenant/homeowner’s

payments are current or the tenant/

homeowner is current in a repayment

agreement that is subject to approval by

the Area ONAP. In emergency situations

the Area ONAP administrator may grant

exceptions to this requirement on a

case-by-case basis.

(4) Houses that have received

comprehensive rehabilitation assistance

from any ICDBG or other Federal grant

program within the past 8 years will not

be assisted with ICDBG funds to make

the same repairs if the repairs are

needed as a result of abuse or neglect.

(ii) Grant limits. Rehabilitation grant

limits for each Area ONAP jurisdiction

are as follows:

(1) Eastern/Woodlands ............ $20,000

(2) Southern Plains .................. 15,000

(3) Northern Plains .................. 33,500

(4) Southwest ........................... 40,000

(5) Northwest ........................... 25,000

(6) Alaska ................................. 50,000

(c) Rating Factors for Rehabilitation

Projects.

(i) Rating Factor 1: Project Need and

Design. (40 points)

(1) The percentage of ICDBG funds

committed to bring the houses to be

assisted up to a standard condition as

defined by the applicant.

Administrative, planning, and technical

assistance expenditures are excluded in

computing the percentage of ICDBG

funds committed to bring the houses up

to a standard condition. The percentage

of ICDBG funds not used to bring the

houses up to a standard condition must

be used for emergency repairs,

demolition of substandard units or

another purpose closely related to the

housing rehabilitation project.
29842 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

Percentage of ICDBG funds committed

to bring houses to be assisted up to a

standard condition:

91–100%—20 points

81–90.9%—15 points

80.9 and less—0 points

(2) The applicant’s selection criteria

which are included in the application

give first priority to the neediest

households. Neediest is defined as

households whose houses are in the

greatest disrepair (but still suitable for

rehabilitation treatment) in the project

area, or very low-income households.

YES—5 points

NO—0 points

(3)(a) Documentation of project need

with a housing survey of all of the

houses to be rehabilitated with ICDBG

funds. This survey should include

standard housing data on each house

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

rooms, number of habitable rooms,

number of bedrooms/sleeping rooms,

type of heating). The survey should

indicate the deficiencies for each house.

A definition of ‘‘suitable for

rehabilitation’’ must be included. At a

minimum, this definition must not

include houses that need only minor

repairs, or houses that need such major

repairs that rehabilitation is structurally

or financially infeasible.

(b) The application contains all the

required survey data and the required

definition of ‘‘suitable for

rehabilitation.’’ (15 points)

(c) The application does not contain

the required definition of ‘‘suitable for

rehabilitation’’ and/or all the survey

data, but does contain sufficient data to

enable the project to proceed effectively.

(10 points)

(d) The application does not contain

survey data or the survey data it does

contain is not sufficient to enable the

project to proceed effectively. (0 points)

(ii) Rating Factor 2: Planning and

Implementation. (55 points)

(1) Rehabilitation Policies and

Procedures including:

(a) Adopted rehabilitation standards.

The rehabilitation standards adopted by

the applicant will ensure that after

rehabilitation the houses assisted will

be in a standard condition as defined in

this NOFA. In addition, these standards

include specific requirements which

address child safety measures to be

incorporated in all appropriate

rehabilitation work. Such measures may

include, but are not limited to, child

safety latches on cabinets, hot water

protection devices, and window guards

to prevent children from falling.

The standards adopted by the

applicant will ensure that after

rehabilitation the houses assisted will

be in a standard condition as defined in

this NOFA and that, where applicable,

a safer living environment for children

has been created. (10 points)

The standards adopted by the

applicant will ensure that after

rehabilitation the houses assisted will

be in a standard condition as defined in

this NOFA but they do not address

applicable specific child safety

measures. (5 points)

The standards do not meet

requirements for point award. (0 points)

(b) Rehabilitation selection policies

and procedures. (i) The rehabilitation

selection policies and procedures

contained in the application include:

(A) Property selection standards;

(B) Cost limits;

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

grant);

(D) Homeowner costs and

responsibilities;

(E) Procedures for selecting

households to be assisted; and,

(F) Income verification procedures.

(ii) The application contains all the

rehabilitation selection policies and

procedures listed above. (10 points)

(iii) The application does not contain

all the rehabilitation selection policies

and procedures listed above, but

contains sufficient data to enable the

project to proceed effectively or the

application contains all the

rehabilitation selection policies and

procedures listed above, but in

insufficient detail. (5 points)

(iv) The application does not contain

the rehabilitation selection policies and

procedures listed above or if it does

contain policies and procedures, they

are not sufficient to enable the project

to proceed effectively. (0 points)

(c) Project implementation policies

and procedures. (i) These policies and

procedures must include a description

of the following items:

(A) The qualifications which will be

required of the inspector;

(B) The inspection procedures to be

used;

(C) The procedures to be used to

select the contractor or contractors;

(D) The manner in which the

households to be assisted will be

involved in the rehabilitation process;

(E) How disputes between the

households to be assisted, the

contractors and the applicant will be

resolved; and, if applicable;

(i) The repayment provisions which

will be required if sale of the assisted

house occurs prior to 5 years after the

rehabilitation work has been completed.

(ii) The application contains all the

policies and procedures listed above,

and they will enable the project to be

effectively implemented. (10 points)

(iii) The application contains some

but not all of the policies and

procedures listed above and these

policies and procedures are sufficient

for the project to proceed effectively. (5

points)

(iv) The application does not contain

the policies and procedures listed

above. (0 points)

(2) Post rehabilitation maintenance

policies that address counseling and

training assisted households on

maintenance. (a) The policies included

in the application contain a wellplanned counseling and training

program. Training will be provided for

assisted households, and provision is

made for households unable to do their

own maintenance (e.g., elderly and

persons with disabilities).

(b) The policies include follow-up

inspections after rehabilitation is

completed to ensure the house is being

maintained. (5 points)

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

counseling program but fail to

adequately address all of the items

listed above. (3 points)

(d) The application does not contain

a well-planned home maintenance

training and counseling program. (0

points)

(3) Quality of cost estimates. (a) Cost

estimates have been prepared by a

qualified individual. (Qualifications of

the estimator must be included in the

application). Costs of rehabilitation are

documented on a per house basis and

are supported by a work write-up for

each house to be assisted. The work

write-ups are based upon making those

repairs necessary to bring the houses to

a standard condition in a manner

consistent with adopted construction

codes and requirements. The write-ups

must be submitted with the application.

If national standards (e.g., the Uniform

Building Code) have been locally

adopted as the construction codes and

requirements, they must be referenced.

If locally developed and adopted codes

and requirements are used, they must be

submitted. (15 points)

(b) Cost estimates have been prepared

for each house to be rehabilitated to

determine the total rehabilitation cost.

The cost estimates are included in the

application. Costs to rehabilitate each

house are documented by a deficiency

list. (12 points)

(c) Cost estimates have been prepared

and are included in the application but

the estimates are based on surveys and

not on individual house deficiency lists.

(5 points)

(d) Cost estimates are not included in

the application or the basis for the cost
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29843

estimates included is inappropriate or

not provided. (0 points)

(4) Cost effectiveness of the

rehabilitation program. (a) This is a

measure of how efficiently and

effectively funds will be used under the

proposed program. Applicants must

demonstrate how the proposed

rehabilitation will bring the houses to be

assisted to a standard condition in an

efficient and cost effective manner.

(b) Rehabilitation project is cost

effective. (5 points)

(c) Rehabilitation project is not cost

effective. (0 points)

(iii) Rating Factor 3: Leveraging. (5

points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

(d) Thresholds for Land to Support

New Housing. (i) The application

contains information and

documentation which establishes that

there is a reasonable ratio between the

number of net usable acres to be

acquired and the number of low and

moderate income households with

documented housing needs.

(ii) Housing assistance needs must be

clearly demonstrated and documented

with either a survey that identifies the

households to be served, their size,

income levels and the condition of

current housing or an IHA, or if

applicable, TDHE approved waiting list.

The survey or waiting list must be

submitted with the application.

(e) Rating Factors for Land to Support

New Housing.

(i) Rating Factor 1: Project Need and

Design. (40 Points)

Information included in the

application establishes that:

(1) The applicant has no suitable land

for the construction of new housing and

the necessary infrastructure and

amenities for this housing. (40 points);

or

(2) The applicant has land suitable for

housing construction and needed

infrastructure and amenities, but the

land is officially dedicated to another

purpose. (30 points); or

(3) The applicant will be acquiring

land for housing construction and the

construction of needed infrastructure

and amenities for both new and existing

housing. (25 points); or

(4) The applicant will be acquiring

land for the construction of amenities

for existing housing. (15 points); or

(5) The reason for the land acquisition

does not meet any of the criteria listed

above. (0 points)

(ii) Planning and Implementation. (60

points)

(1) Suitability of land to be acquired.

A preliminary investigation has been

conducted by a qualified entity

independent of the applicant. Based on

this investigation (which must be

submitted with the application), the

land appears to meet all applicable

requirements:

(a) Soil conditions appear to be

suitable for individual and/or

community septic systems or other

acceptable methods for waste water

collection and treatment have been

identified.

(b) The land has adequate:

(i) Availability of drinking water;

(ii) Access to utilities;

(iii) Vehicular access;

(iv) Drainage.

(e) The land appears to comply with

environmental requirements. Future

development costs are expected to be

consistent with other subdivision

development costs in the area

(subdivision development costs include

the costs of the land, housing

construction, water and sewer, electrical

service, roads, and drainage facilities if

required).

YES—20 points

NO—0 points

(2) Commitment and availability of

housing resources.

(a) The application includes evidence

of a commitment and an ability to

construct at least 25 percent of the

housing units to be built on the land

proposed for acquisition. This evidence

consists of one (or more) of the

following.

(i) a firm or conditional commitment

to construct (or to finance the

construction of) the units; or

(ii) documentation that an approvable

application for the construction of these

units has been submitted to a funding

source or entity; or

(iii) documentation that these units

are specifically identified in the Indian

Housing Plan submitted on or on behalf

of the applicant as an affordable housing

resource with a commensurate

commitment of Indian Housing Block

Grant (IHBG) resources. (10 points)

(b) The evidence required for the

award of 10 points has not been

included in the application. (0 points)

(3) Availability/accessibility of

supportive services and employment

opportunities. Documentation is

provided in the application to indicate

that upon completion of construction of

the housing to be built on the land to

be acquired, fire and police protection

will be available to the site and medical

and social services, schools, shopping,

and employment opportunities will be

accessible from the site according to the

community’s established norms.

YES—5 points

NO—0 points

(4) Commitment that households will

move into the new housing.

Documented commitment from

households that they will move into the

new housing to be built on the land to

be acquired is included in the

application.

YES—5 points

NO—0 points

(5) Land to trust status. (a) Land can

be taken into trust or provisions have

been made for taxes and fees. There

must be a written assurance from the

BIA that the land will be taken into trust

or the applicant must demonstrate the

financial capability and commitment to

pay the property taxes and fees on the

land for any period of time during

which it anticipates it will own the

property in fee. This commitment must

be in the form of a resolution by the

governing body of the applicant which

indicates that the applicant will pay or

guarantee that all taxes and fees on the

land will be paid.

(b) Documentation from the BIA that

land can be taken into trust or the

required governing body resolution is

included in the application. (5 points)

(c) Either the assurance or the

resolution are missing from the

application or they are inadequate. (0

points)

(6) Infrastructure commitment. (a) A

plan or commitment for any

infrastructure needed to support the

housing to be built on the land to be

acquired has been included in the

application. The plan or commitment

must address water, waste water

collection and treatment, electricity,

roads, and drainage facilities necessary

to support the housing to be developed.

(b) Financial commitments for all

necessary infrastructure have been

included in the application or

documentation is included which

demonstrates that all necessary

infrastructure is in place. (10 points)

(c) A plan for the provision of all

necessary infrastructure is included in

the application but all financial

commitments required to implement the

plan have not been submitted. (5 points)

(d) Neither a financial commitment or

plan are included in the application. (0

points)
29844 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

(7) The extent to which the site

proposed for acquisition meets the

housing needs of the applicant and is

reasonably priced. The application

includes documentation which

indicates that the applicant has

examined and assessed the

appropriateness of alternative sites and

which demonstrates that the site

proposed for acquisition best meets the

documented housing needs of tribal

households. The application must

include comparable sales data which

shows that the cost of the land proposed

for acquisition is reasonable.

Yes—5 points

No—0 points

(f) Thresholds for New Housing

Construction. The following thresholds

and the rating factors set forth in

paragraph (g) of this section apply to

new housing construction to be

implemented through a CommunityBased Development Organization

(CBDO) as provided for under 24 CFR

1003.204. Please note that all

households to be assisted under a new

housing construction project must be of

low or moderate income status.

(i) New housing construction can only

be implemented through a CommunityBased Development Organization

(CBDO). Eligible CBDOs are described

in 24 CFR 1003.204(c). The applicant

must provide an assurance that it

understands this requirement.

(ii) Documentation which supports

the following determinations must be

included in the application:

(1) No other housing is available in

the immediate reservation area that is

suitable for the households to be

assisted;

(2) No other funding sources

including an Indian Housing Block

Grant can meet the needs of the

household(s) to be served.

(3) The house occupied by the

household to be assisted is not in

standard condition and rehabilitation is

not economically feasible, or the

household is currently in an

overcrowded house (sharing house with

another household(s)), or the household

to be assisted has no current residence.

(iii) All applicants for new housing

construction projects shall adopt

construction standards and construction

policies prior to submitting an

application. Applicants must identify

the building code to be used when

constructing the houses and must

document that this code has been

adopted. The building code may be a

tribal building code or a nationally

recognized model code. If it is a tribal

code it must regulate all of the areas and

sub-areas identified in 24 CFR 200.925b,

and it must be reviewed and approved

by the Area ONAP. If the code is

recognized nationally, it must be the

latest edition of one of the codes

incorporated by reference in 24 CFR

200.925c.

(iv) The applicant must provide an

assurance that any house to be

constructed will be the permanent nonseasonal residence of the household to

be assisted; this household must live in

the house at least nine months per year.

(g) Rating Factors for New Housing

Construction.

(i) Rating Factor 1: Project Need and

Design. (45 points)

(1) IHA member/assistance. (a) The

application includes documentation

which establishes that the applicant was

not served by an Indian Housing

Authority (IHA), or if it was a member

of an umbrella IHA, this IHA had not

provided assistance to the applicant in

a substantial period of time, or the IHA

which served the applicant had not

received HUD Public and Indian

Housing new construction assistance in

a substantial period of time due to

limited HUD appropriations. The period

of time during which the IHA serving

the applicant had not received funding

for inadequate or poor performance by

the applicant does not count towards

the period of time that no assistance has

been provided by HUD.

(b) No assistance from IHA for 10

years or longer. (15 points)

(c) No assistance from IHA for 6–9

years, 11 months. (10 points)

(d) No assistance from IHA for 0–5

years, 11 months. (0 points)

(2) Adopted housing construction

policies and plan. (a) The plan must

include a description of the proposed

CBDO and its relationship (or proposed

relationship) to the applicant. In

addition, the policies and plan must

include:

(i) A selection system that gives

priority to the neediest households.

Neediest shall be defined as households

whose current residences are in the

greatest disrepair, or very low-income

households, or households without

permanent housing.

(ii) A system effectively addressing

long-term maintenance of the

constructed houses.

(iii) Estimated costs and identification

of the entity responsible for paying

utilities, fire hazard insurance and other

normal maintenance costs.

(iv) Policies governing ownership of

the houses, including the status of the

land.

(v) Description of a comprehensive

plan or approach being implemented by

the tribe to meet the housing needs of

its members.

(vi) Policies governing disposition or

conversion to non-dwelling uses of

substandard houses that will be vacated

when a replacement house is provided.

(b) The policies and plan include all

of the information listed above and, in

addition, they specifically address the

incorporation of child safety measures

in the housing to be constructed. Such

measures may include, but are not

limited to, child safety latches on

cabinets, hot water protection devices,

and window guards to prevent children

from falling. (25 points)

(c) The policies and plan include all

of the information listed above but do

not specifically address the

incorporation of child safety measures.

(20 points)

(d) The policies and plan do not

include all of the information listed

above, but do include sufficient

information to allow the project to

proceed effectively or, all of the

information is included, but in

insufficient detail. (10 points)

(e) The information included in the

application is not sufficient to meet the

requirements for the award of 10 points.

(0 points)

(3) Beneficiary identification. (a)

Households to be assisted are identified

in the application and their income

eligibility and household size are

documented. (5 points)

(b) Households to be assisted are not

identified or, if identified, their income

eligibility and household size are not

documented. (0 points)

(ii) Rating Factor 2: Planning and

Implementation. (45 points)

(1) Occupancy Standards. (a) The

proposed housing will be designed and

built according to adopted reasonable

standards that govern the size of the

housing in relation to the size of the

occupying household (minimum and

maximum number of persons allowed

for the number of sleeping rooms); the

minimum and maximum square footage

allowed for major living spaces

(bedrooms, living room, kitchen and

dining room). The standards must be

submitted with the application.

(b) Applicant has adopted reasonable

occupancy standards which are

included in the application. (10 points)

(c) Applicant has not adopted

reasonable occupancy standards or the

standards were not included in the

application. (0 points)

(2) Site Acceptability. (a) The

applicant (or the proposed beneficiary

household) has control of the land upon

which the houses will be built. The

application includes documentation

that all housing sites are in trust or

documentation from the BIA that the

sites will be taken into trust within one
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29845

year of the date of the ICDBG approval

notification. If the sites are not in trust

by the date of ICDBG approval

notification, documentation that they

are in trust must be provided to the Area

ONAP before ICDBG funds may be

obligated for construction.

(b) A preliminary investigation of the

site(s) has been conducted by a qualified

entity independent of the applicant.

Based on this investigation (which must

be included in the application) the

site(s) appear to meet all applicable

requirements:

Soil conditions appear to be suitable

for individual or community septic

systems or other acceptable methods for

waste water collection and treatment

have been identified.

(i) Each site has adequate:

(ii) Availability of drinking water;

(iii) Access to utilities;

(iv) Vehicular access;

(v) Drainage;

(vi) Each site appears to comply with

environmental requirements.

YES—15 points

NO—0 points

(3) Energy Conservation Design. The

application includes documentation

which demonstrates that the proposed

houses have been designed in a manner

which will ensure that energy use will

be no greater than that for comparable

houses in the same general geographic

area that have been constructed in

accordance with applicable state energy

conservation standards for residential

construction. Any special design

features, materials, or construction

techniques which enhance energy

conservation must be described.

YES—5 points

NO—0 points

(4) Housing Survey. (a) The applicant

has completed a survey of housing

conditions and housing needs of its

tribal members. This survey was

completed within the twelve month

period prior to the application

submission deadline (or if an earlier

survey, it was updated during this time

period).

The survey must be submitted with

the application. The following

descriptive data is included for each

household surveyed:

(i) Size of the household, including

age and gender of any children.

(ii) Is the household occupying

permanent housing or is it homeless?

(iii) Annual household income.

(iv) Owner or renter.

(v) Number of habitable rooms and

number of sleeping rooms.

(vi) Physical condition of the house—

standard/substandard. If substandard, is

it suitable for rehabilitation? A

definition of ‘‘suitable for

rehabilitation’’ must be included.

(vii) Number of distinct households

occupying the house/degree of

overcrowding.

(viii) If there is a need for a

replacement house, what are the

housing preferences of the household,

e.g. ownership or rental; location;

manufactured or stick-built.

(b) An acceptable survey was

submitted. (10 points)

(c) The survey submitted was not

acceptable or no survey was submitted.

(0 points)

(5) Cost effectiveness of new housing

construction. (a) This is a measure of

how efficiently and effectively funds

will be used under the proposed

program. Applicants must demonstrate

how the proposed housing activities

will be accomplished in an efficient and

cost effective manner.

(b) The applicant has demonstrated

that the proposed activities are cost

effective. (5 points)

(c) The applicant has not

demonstrated that the proposed

activities are cost effective. (0 points)

(iii) Rating Factor 3: Leveraging. (10

points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

15–19.9 ......................................... 16

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

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

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

Community Facilities

(4) Project Specific Thresholds and

Rating Factors for Community Facilities.

(a) Rating Factors for Infrastructure.

(i) Rating Factor 1: Project Need and

Design. (60 points)

(1) Meets an essential need. (a) The

application includes documentation

which demonstrates that the proposed

project meets an essential community

development need by fulfilling a

function that is critical to the continued

existence or orderly development of the

community.

(b) The proposed project will fulfill a

function which is critical to the

continued existence or orderly

development of the community. (20

points)

(c) The proposed project will fulfill a

function which is not critical to the

continued existence or orderly

development of the community. (0

points)

(2) Benefits the neediest. (a) The

proposed project benefits the neediest

segment of the population, as identified

below. Applications must include

information which demonstrates that

income data was collected in a

statistically reliable and independently

verifiable manner and that:

(b) 85 percent or more of the

beneficiaries are low and moderate

income. (15 points)

(c) Between 75–84.9 percent of the

beneficiaries are low and moderate

income. (10 points)

(d) Between 55–74.9 percent of the

beneficiaries are low and moderate

income. (5 points)

(e) Less than 55 percent of the

beneficiaries are low and moderate

income. (0 points)

(3) Provides infrastructure/health and

safety.

(a) The application includes

documentation which demonstrates that

the proposed project will provide

infrastructure that does not currently

exist for the area to be served or it will

eliminate or substantially reduce a

health or safety threat or problem or it

will replace existing infrastructure that

no longer functions adequately to meet

current needs.

(b) The infrastructure does not exist or

the existing infrastructure no longer

functions or the existing infrastructure

does not contribute to the elimination

of, or causes, a verified health or safety

threat or problem. (25 points)

(c) The existing infrastructure no

longer functions adequately to meet

current needs or is unreliable. (20

points)

(d) The proposed project will replace

or supplement existing infrastructure

which is adequate for current needs but

which will not meet acknowledged

future needs. (12 points)

(e) The proposed project will replace

or supplement existing infrastructure

which is adequate to meet current needs

and future needs have not been

acknowledged or documented. (0

points)

(f) If the project is intended to address

a health or safety threat or problem, the

applicant must provide documentation

consisting of a signed study or letter

from a qualified independent authority

which verifies that:

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

health or safety problem) exists which

has caused or has the potential to cause

serious illness, injury, disease, or death;

and

(ii) The threat or problem can be

completely or substantially eliminated if

the proposed project is undertaken.
29846 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

(ii) Rating Factor 2: Planning and

Implementation. (30 points)

(1) A viable plan for maintenance and

operation. (a) If the applicant is to

assume responsibility for maintenance

and operation of the proposed facility,

the applicant must adopt a maintenance

and operation plan which addresses

maintenance, repair and replacement of

items not covered by insurance, and

which clearly identifies operating

responsibilities and resources. This plan

and the adopting resolution must be

included in the application. The plan

must identify a funding source to ensure

that the facility will be properly

maintained and operated. The

resolution adopting the plan must

identify the total annual dollar amount

the applicant will commit.

(b) If an entity other than the

applicant commits to pay for

maintenance and operation, a letter of

commitment which identifies the

responsibilities the entity will assume

and which documents its financial

ability to assume these responsibilities

must be included in the application;

submission of a maintenance and

operation plan is not required. Points

will only be awarded if the Area ONAP

is able to determine that the entity is

financially able to assume the costs of

maintenance and operation.

(c) An acceptable maintenance and

operation plan and adopting resolution

(or letter of commitment) are included

in the application. (15 points)

(d) The plan, resolution or the

commitment letter have not been

included in the application or if

included they are not acceptable. (0

points)

(2) An appropriate and effective

design, scale and cost. (a) The

application includes information which

demonstrates that the proposed project

is the most appropriate and cost

effective approach to address the

identified need. This information

demonstrates that the use of existing

facilities and resources, and

alternatives, including method of

implementation and cost, have been

considered. If only one approach is

feasible (there are no alternatives to the

proposed project), the application must

include an explanation.

(b) The required information is

included in the application. (15 points)

(c) The required information is not

included in the application or, if

included, it is unacceptable. (0 points)

(iii) Rating Factor 3: Leveraging. (10

points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

(b) Threshold for Buildings. An

applicant proposing a facility which

would provide health care services

funded by the Indian Health Service

(IHS) must assure that the facility meets

all applicable IHS facility requirements.

It is recognized that tribes that are

contracting services from the IHS may

establish other facility standards. These

tribes must assure that these standards

at least compare to nationally accepted

minimum standards.

(c) Rating Factors for Buildings.

(i) Rating Factor 1: Project Need and

Design. (60 points)

(1) Meets an essential need. (a) The

application includes documentation

that the proposed building meets an

essential community development need

by providing space so that a service or

function which is critical to the

continued existence or orderly

development of the community can be

provided.

(b) The proposed building will

provide space for a service or function

which is essential to the continued

existence or orderly development of the

community. (20 points)

(c) The proposed building will

provide space for a service or function

which is not critical to the continued

existence or orderly development of the

community. (0 points)

(2) Benefits the neediest. The

proposed project benefits the neediest

segment of the population, as identified

below. Applications must include

information which demonstrates that

income data was collected in a

statistically reliable and independently

verifiable manner and that:

(a) 85 percent or more of the

beneficiaries are low and moderate

income. (15 points)

(b) Between 75–84.9 percent of the

beneficiaries are low and moderate

income. (10 points)

(c) Between 55–74.9 percent of the

beneficiaries are low and moderate

income. (5 points)

(d) Less than 55 percent of the

beneficiaries are low and moderate

income. (0 points)

(3) Provides building/health and

safety. (a) The application includes

documentation which demonstrates that

the proposed building will be used to

provide services or functions which are

not currently being provided to service

area beneficiaries or it will replace a

building which does not meet health or

safety standards which is currently

being used to provide the service or

function or it will replace a building

which is no longer able to provide the

space or amenities to meet the current

need for the services or functions.

(b) The services or functions to be

provided in the proposed building do

not exist for the service area population

or the building currently being used

does not meet health or safety

standards. (25 points)

(c) The building to be replaced by the

proposed building is not able to provide

the space or amenities for the services

or functions so that current needs

cannot be entirely met. (20 points)

(d) The building to be replaced is able

to provide adequate space and current

needs are being met but it cannot

provide space for acknowledged future

needs. (10 points)

(e) The proposed building is not

necessary since current needs and

acknowledged future needs can be met

through the use of existing facilities. (0

points)

(f) If the proposed building is

intended to replace an existing building

which does not meet health or safety

standards, the application must include

documentation consisting of a signed

letter from a qualified independent

authority which specifically identifies

the standard or standards which are not

being met by the existing building.

(ii) Rating Factor 2: Planning and

Implementation. (30 points)

(1) A viable plan for maintenance and

operation. (a) If the applicant is to

assume responsibility for the

maintenance and operation of the

proposed building, the applicant must

adopt a maintenance and operation plan

which addresses maintenance, repair

and replacement of items not covered by

insurance, and which clearly identifies

operating responsibilities and resources.

This plan and the adopting resolution

must be included in the application.

The plan must identify a funding source

to ensure that the building will be

properly maintained and operated. The

resolution adopting the plan must

identify the total annual dollar amount

the applicant will commit.

(b) If an entity other than the

applicant commits to pay for

maintenance and operation, a letter of

commitment which identifies the

responsibilities the entity will assume

and which documents its financial

ability to meet these responsibilities

must be included in the application;
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29847

submission of a maintenance and

operation plan is not required. Points

will only be awarded if the Area ONAP

is able to determine that the entity is

financially able to assume the costs of

maintenance and operation.

(c) An acceptable maintenance and

operation plan and adopting resolution

(or letter of commitment) are included

in the application. (15 points)

(d) The plan, resolution or the

commitment letter have not been

included in the application, or if

included, they are not acceptable. (0

points)

(2) An appropriate and effective

design, scale and cost. (a) The

application includes information which

demonstrates that the proposed building

is the most appropriate and cost

effective approach to address the

identified need(s). This information

demonstrates that the use of existing

facilities and resources and alternatives,

including method of implementation

and cost, have been considered. If only

one approach is feasible (there are no

alternatives to the proposed building),

the application must include an

explanation.

(b) The required information is

included in the application. (15 points)

(c) The required information is not

included in the application or, if

included, it is unacceptable. (0 points)

(iii) Rating Factor 3: Leveraging. (10

points)

Points under this component will be

awarded based on the definition of

‘‘Leverage’’ included in this NOFA and

the following breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

Economic Development

(5) Project Specific Thresholds and

Rating Factors for Economic

Development.

(a) Thresholds for Economic

Development. (i) Economic

development assistance may be

provided only when a financial analysis

is provided which shows public benefit

commensurate with the assistance to the

business can reasonably be expected to

result from the assisted project.

(ii) The analysis should also establish

that to the extent practicable:

Reasonable financial support will be

committed from non-Federal sources

prior to disbursement of Federal funds;

any grant amount provided will not

substantially reduce the amount of nonFederal financial support for the

activity; not more than a reasonable rate

of return on investment is provided to

the owner; and, that grant funds used

for the project will be disbursed on a

pro-rata basis with amounts from other

sources. In addition, it must be

established that the project is financially

feasible and has a reasonable chance of

success.

(b) Rating Factors for Economic

Development.

(i) Rating Factor 1: Organization. (8

points)

(1) The application contains

information and documentation which

addresses all of the following three

elements (Maximum: 8 points):

(a) The applicant (or entity to be

assisted) has an established organization

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

adopted tribal ordinances, articles of

incorporation, Board of Directors in

place, tribal department).

(b) Formal provisions exist for

separation of government functions

from business operating decisions. An

operating plan has been established and

is submitted.

(c) The Board of Directors consists of

persons who have prior business

experience. A staffing plan has been

developed and is submitted.

(2) The application contains all of the

first element listed above, and some of

the items in the second and third

elements OR, the application contains

all of the elements listed above, but in

insufficient detail. The business should

be able to operate effectively. (Moderate:

5 Points)

(3) The application does not meet the

criteria for the award of moderate

points. (Unsatisfactory: 0 Points)

(ii) Rating Factor 2: Project Success.

(45 points)

The project will be rated on the

adequacy and quality of the information

included in the application which

addresses the following criteria: ANY

PROJECT NOT RECEIVING AT LEAST

MODERATE POINTS IN EACH OF THE

FOLLOWING THREE RATING

FACTORS WILL NOT BE CONSIDERED

FOR FUNDING.

(1) Market analysis. (a) A feasibility/

market analysis, generally not older

than two years, which identifies the

market and demonstrates that the

proposed activities are highly likely to

capture a fair share of the market. The

analysis must be submitted with the

application. (Maximum: 15 points)

(b) A feasibility/market analysis

which identifies the market and

demonstrates that the proposed

activities are reasonably likely to

capture a fair share of the market. The

analysis must be submitted with the

application. (Moderate: 10 points)

(c) The submission does not meet the

criteria for the award of moderate

points. (Unsatisfactory: 0 points)

(2) Management capacity. (a) A

management team with qualifying

specialized training or technical/

managerial experience in the operation

of a similar business has been

identified. Job descriptions of key

management positions as well as

re ́sume ́s showing qualifying specialized

technical/managerial training or

experience of the identified

management team must be submitted

with the application. (Maximum: 15

points)

(b) A management team with

qualifying general business training or

experience will be hired if the grant is

approved. Job descriptions of key

management positions must be

submitted with the application.

(Moderate: 12 points)

(c) The submission does not meet the

criteria for the award of 12 points.

(Unsatisfactory: 0 points)

(3) Financial Analysis of the Business.

(a) The financial viability of a project

will be determined by an analysis of

financial and other project related

information. For all proposed projects,

the following must be submitted:

(i) A detailed cost summary for the

project;

(ii) Evidence of funding sources;

(iii) Five year operating or cash flow

financial projections. If the project

involves the expansion of an existing

business, financial statements for the

most recent three year period for the

business must also be submitted with

the application (financial statements

include the balance sheet, income

statement and statement of retained

earnings). For start-up businesses that

will not be owned by the grantee,

current financial or net worth

statements of principal business owners

or officers must also be submitted with

the application.

(b) The information derived from the

analysis will be reviewed and compared

to local or national industry standards

to assess reasonableness of development

costs, financial need, profitability, and

risk as factors in determining overall

financial viability. In determining

whether a project is financially viable,

the Area ONAP will also consider

current and projected market conditions

and profitability measures such as cash

flow return on equity, cash flow return

on total assets and the ratio of net profit

before taxes to total assets. Sources of

industry standards include Marshall

and Swift Publication Company, Robert
29848 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

Morris Associates, Dun and Bradstreet,

the Chamber of Commerce, etc. Local

standards may also be used. If one of

these standards is cited by the

applicant, the appropriate data must be

submitted with the application.

(c) Based on the analysis:

(i) The project has an excellent chance

of achieving financial success.

(Maximum: 15 points)

(ii) The project has an average chance

of achieving financial success.

(Moderate: 8 points)

(iii) The project has a minimal

prospect of achieving financial success.

(Unsatisfactory: 0 points)

(iii) Rating Factor 3: Leveraging.

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

Less than 10% .............................. 0

(iv) Rating Factor 4: Permanent FullTime Equivalent Job Creation and

Training. (20 points). (1) The total

number of permanent full-time

equivalent jobs expected to be created

and/or retained as a result of the project

as well as a summary of job descriptions

must be identified or included in the

application. Retained jobs will not be

counted unless clear evidence is

provided that these jobs would be lost

without the project. The number and

kind(s) of jobs expected to be available

to low and moderate income persons

must be identified.

(2) ICDBG cost per job:

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

points.

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

points.

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

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

(3) Quality of jobs and/or training

targeted to low and moderate income

persons:

(a) The jobs offer wages and benefits

comparable to area wages and benefits

for similar jobs, provide opportunity for

advancement, and teach a transferable

skill; OR

(b) The employer commits to provide

training opportunities. A description of

the planned training program must be

submitted with the application.

YES—5 points

NO—0 points

(v) Rating Factor 5: Additional

Considerations. (15 points)

A project must meet three of the

following factors to receive 15 points.

(Maximum: 15 points)

(1) Use, improve or expand members’

special skills. Special skills are those

that members have developed through

education, training or traditional

cultural experiences.

YES—5 points

NO—0 points

(2) Provide spin-off benefits beyond

the initial economic development

benefits to employees or to the

community.

YES—5 points

NO—0 points

(3) Provide special opportunities for

residents of federally-assisted housing.

YES—5 points

NO—0 points

(4) Provide benefits to other

businesses owned by Indians or Alaska

natives.

YES—5 points

NO—0 points

(5) Loan Repayment/Reuse of ICDBG

funds. If the business is not tribally

owned, at least 50% of the ICDBG

assistance to the business will be repaid

to the grantee within a 10 year period.

If the business is tribally owned, the

tribe agrees (by submission of a tribal

resolution) within a 10 year period to

use funds equal to 50% of the ICDBG

assistance for eligible activities that

meet a national objective. These funds

should come from the profits of the

tribally owned business.

YES—5 points

NO—0 points

IV. Application Submission

Requirements and Checklist

(A) General. Completed applications

(one originally signed and two copies)

must be submitted to the appropriate

Area ONAP listed above. All telephone

numbers listed may be accessed via TTY

by calling the Federal Information Relay

Service at 1–800–877–8339. To be

eligible for consideration, applications

must be received by or be submitted to

the appropriate Area ONAP in

accordance with the requirements set

forth under APPLICATION DUE DATE

above. An applicant shall submit only

one application. The ICDBG grant

amount requested shall not total more

than the grant ceiling. An application

may include an unlimited number of

eligible projects (e.g., housing or public

facilities). Each project within an

application will be rated separately.

(B) Demographic data. Applicants

may submit data that are unpublished

and not generally available in order to

meet the requirements of this section.

The applicant must certify that:

(1) Generally available, published

data are substantially inaccurate or

incomplete;

(2) Data provided have been collected

systematically and are statistically

reliable;

(3) Data are, to the greatest extent

feasible, independently verifiable; and

(4) Data differentiate between

reservation and BIA service area

populations, when applicable.

(C) Publication of Community

Development Statement. Applicants

shall prepare and publish or post the

community development statement

portion of their application according to

the citizen participation requirements of

§ 1003.604.

(D) Application Submission. The

application shall include:

(1) Standard Form 424—Application

for Federal Assistance;

(2) Community Development

Statement which includes:

(a) Components that address the

relevant selection criteria;

(b) A brief description or an updated

description of community development

needs;

(c) A brief description of projects

proposed to address needs, including

scope, magnitude, and method of

implementing the project;

(d) A schedule for implementing the

project (form HUD–4125,

Implementation Schedule); and

(e) Cost information for each separate

project, including specific activity costs,

administration, planning, and technical

assistance, total HUD share (form HUD–

4123, Cost Summary);

(3) Certifications—form HUD 4126;

(4) Drug-free Workplace Certification

(24 CFR part 24, subpart F);

(5) Certification regarding lobbying

(24 CFR part 87) and SF–LLL (if

applicable);

(6) Applicant/Recipient Disclosure/

Update Report—form HUD 2880, as

required under subpart A of 24 CFR part

4, Accountability in the Provision of

HUD Assistance;

(7) A map showing project location, if

appropriate;

(8) If the proposed project will result

in displacement or temporary

relocation, a statement that identifies:

(a) The number of persons (families,

individuals, businesses and nonprofit

organizations) occupying the property

on the date of the submission of the

application (or date of initial site

control, if later);

(b) The number to be displaced or

temporarily relocated;

(c) The estimated cost of relocation

payments and other services;

(d) The source of funds for relocation;

and
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29849

(e) The organization that will carry

out the relocation activities;

(9) If applicable, evidence of the

disclosure required by 24 CFR

1003.606(e) regarding conflict of

interest.

(E) Documentation requirements for

point award for leveraged resources.

(1) General. For the applicant’s own

resources, a council resolution (or legal

equivalent) which identifies and

commits the resources must be included

in the application. For resources to be

provided by another entity, written

verification of an application or request

for the leveraged resources must be

included in the application.

(2) Resources contributed by a public

agency, foundation, or other private

party. (a) In addition to the requirement

described in above in this section, for

grants or other contributed resources

from a public agency, foundation, or

other private party, a written

commitment which may be contingent

on approval of the ICDBG award must

be received by the Area ONAP no later

than 30 days after the application

deadline. This commitment must

specifically identify or indicate:

(i) The dollar amount committed (or

dollar value of the noncash resource and

the basis for the valuation);

(ii) That the resources are currently

available or will be available when

necessary for successful project

implementation; and

(iii) The project.

(b) If the nature of the funding cycle

of the contributing entity precludes the

entity from making a firm funding

commitment in the 30 days, such

resources will be considered in the

award of points if the entity provides a

written statement indicating that the

application or request for assistance has

been received from the ICDBG applicant

and stating the date by which its

funding determination will be made.

This date cannot be more than six

months from the anticipated date of

grant approval notification by HUD.

(c) If the proposed project rates high

enough for funding consideration, a

special condition will be established in

the grant agreement for the project. This

condition will indicate that if a firm

funding commitment for the leveraged

resources is not provided within six

months of the date of grant approval, the

grant funds approved will be recaptured

by HUD and will be used in accordance

with the requirements of § 1003.102.

(d) The statement described in

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

be received by the Area ONAP no later

than 30 days after the application

deadline. If the commitment or

statement is not received in the required

timeframe or if the required information

is not included, points will not be

awarded for the proposed contribution.

(e) If the proposed project still rates

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

which will require the applicant to

provide evidence of firmly committed

resources to cover the entire non-ICDBG

project cost. If this condition is not met,

the grant will not be awarded.

(3) Contributions of goods and

services. In addition to the above

requirements for point award, special

documentation must be included in the

application for certain contributions.

The contribution of goods and services

will be considered for point award if the

applicable requirements listed above are

met; if the items or services are

demonstrated and determined necessary

to the actual development of the project;

and comparable cost and/or time

estimates are submitted which support

the donation.

(4) Contributions of land. Land to be

contributed will only be considered for

point award when its use and area are

integral to the development of the

project. In addition, the value of the

land must be verified by any of the

following means or methods and this

documentation must be included in the

application:

(a) A site specific appraisal no more

than two years old;

(b) An appraisal of a nearby

comparable site also no more than two

years old; and

(c) A reasonable extrapolation of land

value based on current area realtors

value guides.

(5) Indirect costs. The contribution of

indirect administrative costs as

identified in OMB Circular A–87,

attachment A, section F, will not be

considered as a leveraged resource for

purposes of point award.

(6) Operations and maintenance

expenditures. The contribution of

resources to pay for the anticipated

operations and maintenance costs of any

proposed project will not be considered

leveraged resources for purposes of

point award.

V. Corrections to Deficient Applications

and Supplemental Information

After the application due date, Area

ONAP may not, consistent with 24 CFR

part 4, subpart B, consider unsolicited

information from an applicant. The Area

ONAP may contact an applicant,

however, to clarify an item in the

application or to correct technical

deficiencies. Applicants should note,

however, that the Area ONAP may not

seek clarification of items or responses

that improve the substantive quality of

the applicant’s response to any

eligibility or selection criterion.

Examples of curable technical

deficiencies include failure to submit

the proper certifications or failure to

submit an application containing an

original signature by an authorized

official. In each case, the Area ONAP

will notify the applicant in writing by

describing the clarification or technical

deficiency. The Area ONAP will notify

applicants by facsimile or by return

receipt requested. Applicants must

submit clarifications or corrections of

technical deficiencies in accordance

with the information provided by the

Area ONAP within 14 calendar days of

the date of receipt of the Area ONAP

notification. If the deficiency is not

corrected within this time period, the

Area ONAP will reject the application

as incomplete.

VI. Error and Appeals

Rating panel judgments made within

the provisions of this NOFA and the

program regulations (24 CFR part 1003)

are not subject to claims of error.

Applicants may bring arithmetic errors

in the rating and ranking of applications

to the attention of an Area ONAP within

30 days of being informed of their score.

If an Area ONAP makes an arithmetic

error in the application review and

rating process which, when corrected,

would result in the award of sufficient

points to warrant the funding of an

otherwise approvable project, the Area

ONAP may fund that project in the next

funding round without further

competition.

VII. Findings and Certifications

(A) Paperwork Reduction Act

Statement. The information collection

requirements contained in this Notice

have been approved by the Office of

Management and Budget in accordance

with the Paperwork Reduction Act of

1995 (44 U.S.C. 3501–3520), and

assigned OMB control number 2577–

0191. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection displays a valid

control number.

(B) Environmental Impact. This

NOFA provides funding under, and

does not alter environmental

requirements of regulations in 24 CFR

part 1003. 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).

(C) Recipient Compliance with

Environmental Requirements. In

accordance with 24 CFR 1003.605, a
29850 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

recipient must comply with the

environmental review requirements of

24 CFR part 58, including limitations on

the commitment of project funds before

submission of a request for release of

funds.

(D) Federalism, Executive Order

12612. The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that this NOFA will not

have substantial, direct effects on states,

on their political subdivisions, or on

their relationship with the Federal

Government, or on the distribution of

power and responsibilities between

them and other levels of government.

While the NOFA will provide financial

assistance to Indian tribes and Alaska

native villages, none of its provisions

will have an effect on the relationship

between the Federal Government and

the states or their political subdivisions.

(E) 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. 1352 (the Byrd Amendment),

which prohibits recipients of Federal

contracts, grants, or loans from using

appropriated funds for lobbying the

executive or legislative branches of the

Federal Government in connection with

a specific contract, grant, or loan.

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.

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.

(F) Section 102 of the HUD Reform

Act; Documentation and Public Access

Requirements. Section 102 of the

Department of Housing and Urban

Development Reform Act of 1989 (42

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

regulations codified in 24 CFR part 4,

subpart A, contain a number of

provisions that are designed to ensure

greater accountability and integrity in

the provision of certain types of

assistance administered by HUD. On

January 14, 1992 (57 FR 1942), HUD

published a notice that also provides

information on the implementation of

section 102. The documentation, public

access, and disclosure requirements of

section 102 apply to assistance awarded

under this NOFA as follows:

(1) Documentation and public access

requirements. HUD will ensure that

documentation and other information

regarding each application submitted

pursuant to this NOFA are sufficient to

indicate the basis upon which

assistance was provided or denied. This

material, including any letters of

support, will be made available for

public inspection for a 5-year period

beginning not less than 30 days after the

award of the assistance. Material will be

made available in accordance with the

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

552) and HUD’s implementing

regulations in 24 CFR part 15. 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.

(2) Disclosures. HUD will make

available to the public for 5 years all

applicant disclosure reports (HUD Form

2880) submitted in connection with this

NOFA. Update reports (also Form 2880)

will be made available along with the

applicant disclosure reports, but in no

case for a period less than 3 years. All

reports—both applicant disclosures and

updates—will be made available in

accordance with the Freedom of

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

HUD’s implementing regulations at 24

CFR part 15.

(G) Section 103—HUD Reform Act.

HUD’s regulations implementing section

103 of the Department of Housing and

Urban Development Reform Act of 1989

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

part 4, apply to this funding

competition. The regulations continue

to apply until the announcement of the

selection of successful applicants. HUD

employees involved in the review of

applications and in the making of

funding decisions are limited by the

regulations from providing advance

information to any person (other than an

authorized employee of HUD)

concerning funding decisions, or from

otherwise giving any applicant an unfair

competitive advantage. Persons who

apply for assistance in this competition

should confine their inquiries to the

subject areas permitted under 24 CFR

part 4.

Applicants or employees who have

ethics related questions should contact

HUD’s Ethics Law Division (202) 708–

3815. (This is not a toll-free number.)

For HUD employees who have specific

program questions, the employee should

contact the appropriate Area ONAP or

Headquarters counsel.

(H) Catalog of Federal Domestic

Assistance Number. The Catalog of

Federal Domestic Assistance Number

for the ICDBG Program is 14.862.

Dated: May 20, 1998.

Deborah Vincent,

General Deputy Assistant Secretary for Public

and Indian Housing.

[FR Doc. 98–14368 Filed 5–29–98; 8:45 am]

BILLING CODE 4210–33–P