[Federal Register Volume 63, Number 104 (Monday, June 1, 1998)]
[Notices]
[Pages 29828-29831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14366]



[[Page 29827]]

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Part V





Department of Housing and Urban Development





_______________________________________________________________________



Request for Expressions of Interest: Self-Help Homeownership 
Opportunity Program; Fiscal Year 1998; Notice

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

[[Page 29828]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4343-N-01]


Request for Expressions of Interest: Self-Help Homeownership 
Opportunity Program; Fiscal Year 1998

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice for fiscal year 1998 request for expressions of interest 
(REI).

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SUMMARY: This Notice announces the availability of $6,262,500 in 
funding for the Self-Help Homeownership Opportunity Program (SHOP), and 
requests expressions of interest from eligible and capable nonprofit 
organizations. The Notice is issued under section 11 of the Housing 
Opportunity Program Extension Act of 1996. No special materials or 
forms are required other than as set out in this Notice.
    Purpose. The Self-Help Homeownership Opportunity Program is 
intended to facilitate and encourage innovative homeownership 
opportunities through the provision of self-help housing where the 
homebuyer contributes a significant amount of sweat-equity toward the 
construction of the new dwelling.
    Available Funding. $6,262,500.
    Eligible Respondents. Respondents are nonprofit national or 
regional organizations or consortia that have the capacity and 
experience to provide or facilitate self-help housing homeownership 
opportunities. ``Regional'' is defined for the purpose of this Notice 
to be a ``regional area'' such as the Southwest or Northeast which must 
include at least two or more States (the States need not be contiguous 
and the operational boundaries of the organization need not precisely 
conform to State boundaries). Affiliates of Habitat for Humanity 
International are not eligible for funding under this NOFA/REI since 
SHOP funds are being made available to them separately under section 11 
of the Extension Act.

DUE DATE: Expressions of interest for SHOP grants must be physically 
received by HUD by 4:30 p.m. Eastern Time on July 17, 1998. It is NOT 
sufficient for an expression of interest to bear a postmark within the 
deadline. Expressions of interest sent by facsimile (FAX) or e-mail 
will not be accepted. HUD will not waive this deadline for actual 
submission for any reason. The deadline is firm as to date and hour. 
The Department will treat as ineligible for consideration any 
expression of interest that is received after the deadline. Respondents 
should take this policy into account and consider early submission to 
avoid any risk of loss of eligibility brought about by any 
unanticipated or delivery-related problems.

ADDRESS FOR SUBMITTING EXPRESSIONS OF INTEREST: One original and two 
copies of the expression of interest must be submitted to HUD 
Headquarters, Office of Community Planning and Development, Processing 
and Control Unit, Room 7251, 451 Seventh Street, SW, Washington, DC 
20410, ATTN: Self-Help Program.

FOR FURTHER INFORMATION CONTACT: Joan Morgan, Office of Affordable 
Housing Programs, Department of Housing and Urban Development, room 
7168, 451 Seventh Street, SW, Washington, DC 20410; telephone (202) 
708-3226, ext. 2213. (This is not a toll-free number). This number can 
be accessed via TTY by calling the Federal Information Relay Service 
Operator at 1-800-877-TDDY (1-800-877-8339).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this Notice 
are not subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520) and 5 CFR 1320.13 since fewer than 10 responses are anticipated. 
Therefore, no OMB control number is required. In cases where 10 or more 
responses to an information collection are expected, 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.

I. Purpose and Substantive Description

(A) Authority

    The funding made available under this Notice is authorized by 
section 11 of the Housing Opportunity Program Extension Act of 1996 (42 
U.S.C. 12805 note) (the ``Extension Act''). No separate implementing 
regulations will be issued.

(B) Purpose and Program Requirements

    The Self-Help Homeownership Opportunity Program is intended to 
facilitate and encourage innovative homeownership opportunities through 
the provision of self-help housing where the homebuyer contributes a 
significant amount of sweat-equity toward the construction of the new 
dwelling. This program will increase homeownership levels and is in 
furtherance of the National Homeownership Strategy. The strategy is a 
five-year blueprint for cooperative actions identified by 56 private 
and public organizations that is intended to achieve an all-time high 
level of homeownership by the year 2000. The National Homeownership 
Strategy, ``Partners in the American Dream'' was prepared by the 
Department and its Partners in response to a request from President 
Clinton in 1995.
    The decent, safe, and sanitary non-luxury dwellings that are 
constructed under the Self-Help Homeownership Opportunity Program must 
be made available to eligible homebuyers at prices below the prevailing 
market prices. Eligible homebuyers are low-income families (families 
whose annual incomes do not exceed 80 percent of the median income for 
the area, as determined by HUD) who are unable to otherwise afford to 
purchase a dwelling. Activities to develop housing assisted under this 
Notice must involve community participation, by providing for the use 
of volunteers in the construction of dwellings or by other activities 
designed to involve the community in the project. The assistance under 
this Notice must be used to develop dwellings on a national 
geographically-diverse basis, which includes areas having high housing 
costs, rural areas, and areas underserved by other homeownership 
opportunities that are populated by low-income families unable to 
otherwise afford housing.
    The only eligible expenses for program funds are land acquisition 
(including financing and closing costs), infrastructure improvement 
(installing, extending, constructing, rehabilitating, or otherwise 
improving utilities and other infrastructure, including removal of 
environmental hazards), and administration, planning and management 
development (as defined under the HOME Investment Partnerships Program 
(24 CFR Part 92) and not to exceed 20 percent of any SHOP grant). Costs 
associated with the rehabilitation, improvement, or construction of 
dwellings are not eligible uses of program funds. Among the program 
requirements contained in section 11 of the Extension Act that the 
respondent must be capable of are as follows:
    (1) To provide for development, through significant amounts of 
sweat-equity and volunteer labor, of at least 30 dwellings at an 
average cost of no more than $10,000 per unit in SHOP funds;
    (2) To use the grant in a manner that leverages other sources of 
funding, including private or other public funds;
    (3) To construct quality dwellings that comply with local building 
and safety

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codes and standards and are available at prices below the prevailing 
market price; and
    (4) To schedule activities so as to substantially fulfill the 
obligations under the grant agreement within 24 months after grant 
amounts are first made available to the organization or consortia. HUD 
will recapture undisbursed amounts from the grantees who fail to 
substantially fulfill these obligations within 24 months.

(C) Other Federal Requirements

    Grantees awarded funds under this Notice are subject to the 
following requirements: The administrative requirements of 24 CFR part 
84, OMB Circular A-122 and the audit requirements as found in OMB 
Circular A-133; the Equal Opportunity requirements referred to in 24 
CFR 5.105(a) (61 FR 5198, 5202, published February 9, 1996); the 
provisions contained in Section 305(c) of the Multifamily Housing 
Property Disposition Reform Act of 1994, Environmental Review, 
implemented in the Environmental Review regulations at 24 CFR part 58, 
are applicable to properties assisted with SHOP funds (see next 
paragraph); the requirements of the Uniform Relocation Act, as 
implemented by 49 CFR part 24; the lead-based paint requirements set 
out in 24 CFR part 35; the requirements of section 3 of the Housing and 
Urban Development Act of 1968 concerning infrastructure improvements 
funded with SHOP funds; restrictions on participation by ineligible, 
debarred or suspended persons or entities referred to in 24 CFR 
5.105(c); and the Drug-Free Workplace authorities referred to in 24 CFR 
part 24.
    All SHOP assistance is subject to the National Environmental Policy 
Act of 1969 and related federal environmental authorities. SHOP grant 
respondents are cautioned that no federal or non-federal funds or 
assistance which limits reasonable choices or could produce a 
significant adverse environmental impact may be committed to a project 
until all required environmental reviews and notifications have been 
completed by a unit of general local government, tribe or State and 
until HUD approves a recipient's request for release of funds under the 
environmental provisions contained in 24 CFR part 58.

(D) Allocation Amounts

    This Notice makes available $6,262,500 in SHOP grants, in 
accordance with sections 11(c)(2) of the Housing Opportunity Program 
Extension Act of 1996, and the HUD-VA Appropriations Act of 1998.

(E) Unused Funds

    If funds remain after HUD has funded all approvable expressions of 
interest, the excess will be provided to Habitat for Humanity 
International for use in accordance with the requirements of section 11 
of the Extension Act.

(F) Eligible Respondents

    Respondents are nonprofit national or regional organizations or 
consortia that have the capacity and experience to provide or 
facilitate self-help housing homeownership opportunities. Regional is 
defined for the purpose of this Notice to be a ``regional area'' such 
as the Southwest or Northeast which must include at least two or more 
States (the States need not be contiguous and the operational 
boundaries of the organization need not precisely conform to State 
boundaries).
    Respondents receiving awards are required to have standards of 
financial accountability that conform to 24 CFR 84.21, ``Standards for 
Financial Management Systems'' and have audits conducted in accordance 
with the provisions of OMB Circular A-133 or a program-specific 
financial audit, as appropriate. Where the respondent is a consortium, 
one organization must be chosen as the lead entity. The lead entity 
will execute and submit the expression of interest and, if selected for 
funding, will execute the grant agreement and assume primary 
responsibility for carrying out the grant activities in compliance with 
all program requirements. Other participants in the consortium should 
be identified in the expression of interest. Affiliates of Habitat for 
Humanity International are not eligible for funding under this Notice 
since SHOP funds are being made available to them separately under 
section 11 of the Extension Act.

II. Expressions of Interest--Requirements

(A) Submission Deadline

    Only timely expressions of interest received at HUD Headquarters 
will be considered for funding (see ADDRESSES at the beginning of this 
Notice). Expressions of interest (original and two copies) must be 
physically received by HUD no later than 4:30 p.m. Eastern Time on the 
deadline (see DATES at the beginning of this Notice). It is NOT 
sufficient for an application to bear a postmark within the deadline. 
Applications sent by facsimile (FAX) or e-mail will NOT be accepted.

(B) Contents of an Expression of Interest

    All respondents must submit Expressions of interest on 8\1/
2\'' x 11'' paper which is bound in loose leaf binders for easy 
copying. All pages and attachments must be numbered consecutively. 
Expressions of interest must contain the following items:
    (1) OMB Standard Form 424, Request for Federal Assistance;
    (2) Standard Form 424B, Non-Construction Assurances; if required,
    (3) Disclosure of Lobbying Activities, Standard Form LLL, if 
required;
    (4) Certification for a Drug-Free Workplace, HUD-50070, signed by a 
person legally authorized to enter into an agreement with HUD;
    (5) Certification that the respondent will comply with the 
requirements of the Fair Housing Act, Title VI of the Civil Rights Act 
of 1964, section 504 of the Rehabilitation Act of 1973, and the Age 
Discrimination Act of 1975, and will affirmatively further fair 
housing;
    (6) Certification Regarding Debarment and Suspension, HUD-2992. 
Certification required by 24 CFR 24.510. (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, and a certification is required.); 
and
    (7) A detailed narrative statement and program description which 
addresses each of the minimum and other requirements described in the 
following paragraphs, and specifies the amount of funding requested up 
to the maximum amount available under this Notice of $6,262,500.
    Requests for copies of the standard forms and certifications can be 
made by calling Community Connections at 1-800-998-9999 or by fax to 
HUD, ATTN: Mary Higgs, at (202) 708-1744. (This is not a toll-free 
number.) Please refer to the ``Self-Help Program'' in your request. The 
expression of interest will become part of the grant agreement to be 
entered into by successful respondents.

(C) Minimum Requirements

    Respondents, including participating organizations, must meet the 
following minimum requirements to be considered for funding:
    (1) Respondent is a national or regional organization or consortia 
(``regional'' is defined in Section F). Respondent must provide a 
description of the geographic area in which it operates.
    (2) Capacity of respondent and other participating organizations to

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successfully undertake the program within a 24 month period. In 
addressing this requirement, the respondent must demonstrate:
    (a) Experience in developing self-help housing within a national or 
regional area. In addressing this requirement, the respondent must 
clearly demonstrate the total number of self-help homeownership units 
that it has completed within the 24 month period preceding the 
publication of this Notice. At a minimum, the respondent must have 
completed at least 30 self-help homeownership units (where the 
homebuyers contributed a significant amount of sweat-equity toward the 
construction of the dwellings);
    (b) Evidence of its nonprofit status, such as a copy of a current 
Internal Revenue Service ruling that the respondent is exempt from 
taxation under section 501(c)(3) or 501(c)(4) of the Internal Revenue 
Code of 1986. Where an IRS ruling is unavailable, a respondent may 
submit a certified copy of its approved charter, articles of 
incorporation or bylaws, demonstrating that the respondent is 
established as a nonprofit organization under state law. Where the 
respondent is a consortium, each participant in the consortium must be 
a nonprofit organization, but only the lead entity should submit 
evidence of its nonprofit status. However, the lead entity must 
maintain a copy of the above-described documentation for each 
participant in the consortium;
    (c) Evidence that existing financial control procedures meet 24 CFR 
84.21, ``Standards for Financial Management Systems''. In addition, 
respondents must provide a copy of their most recent audit (only an 
audit of the lead entity must be provided with an application for a 
consortium); and
    (d) An acquisition and construction schedule for the number of 
units proposed, with performance benchmarks for the initial 24 month 
period of the grant agreement. The schedule must include provision for 
the HUD environmental review process under 24 CFR part 58 which will be 
required prior to the purchase of any land.
    (3) Evidence of the respondent's intent to leverage other sources 
of funding in developing the dwellings including financial commitments 
by the public and private sector in support of the program, such as the 
donation of labor or materials, interest rate reductions or other 
financing subsidies, volunteer assistance, tax abatements, public works 
improvements, waivers of fees or taxes, expedited processing of permits 
and applications, removal of regulatory barriers to affordable housing, 
and supportive services (including counseling and training). 
Respondents must provide letters or other documentation evidencing that 
these commitments (together with the grant funds requested) are 
sufficient to develop not less than 30 dwellings.
    (4) All respondents must comply with all Fair Housing and civil 
rights laws, statutes, regulations and executive orders as enumerated 
in 24 CFR 5.105(a). If a respondent (1) has been charged with a 
violation of the Fair Housing Act by the Secretary; (2) is the 
defendant in a Fair Housing Act lawsuit filed by the Department of 
Justice; or (3) has received a letter of noncompliance findings under 
Title VI of the Civil Rights Act, or Section 504 of the Rehabilitation 
Act the respondent is not eligible to apply for funding under this 
Notice until the respondent resolves such charge, lawsuit, or letter of 
findings to the satisfaction of the Department.
    (a) Respondents must comply with the Americans with Disabilities 
Act, and Title IX of the Education Amendments Act of 1972.
    (b) Each successful respondent will have a duty to affirmatively 
further fair housing and promote fair housing rights and fair housing 
choice. Further, respondents have a duty to carry out the specific 
activities cited in their responses to the affirmatively furthering 
fair housing requirements as set forth in Section II(D) of this Notice.
    (c) Recipients of HUD assistance to fund infrastructure 
improvements under this program are required to comply with section 3 
of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u 
(Economic Opportunities for Low and Very Low-Income Persons) and the 
HUD regulations at 24 CFR part 135, including the reporting 
requirements subpart E. Section 3 provides that recipients shall ensure 
that training, employment and other economic opportunities, to the 
greatest extent feasible, be directed to (1) low and very low income 
persons, particularly those who are recipients of government assistance 
for housing and (2) business concerns which provide economic 
opportunities to low and very low income persons.

(D) Other Requirements

    In addition to the minimum requirements set forth in II.(C) above, 
the expression of interest must indicate the amount of SHOP funds being 
requested, the number of units to be developed. Respondents must 
request funds to develop a minimum of 30 units. No more than $10,000 in 
SHOP funds per unit on average may be used to develop each unit 
(excluding any SHOP funds spent on administration). Respondents must 
provide a description of the program and how it will operate, including 
how the SHOP funds will be used and the number and geographic location 
of the proposed units.
    The respondent must describe the steps which will be taken to 
affirmatively further fair housing. This should include, but is not 
limited to: Methods to remedy past discrimination in housing; promoting 
fair housing rights and fair housing choice; outreaching to members of 
classes protected by the Fair Housing Act who are least likely to 
benefit from this program including women, families with children, and 
individuals with disabilities; and developing tasks which persons with 
various disabilities could perform to meet the ``sweat-equity'' 
requirements.
    The program description must be complete and clearly demonstrate 
that the respondent can substantially fulfill programmatic obligations 
within 24 months. The respondent must also present a budget which 
includes the sources and uses of all funds, including program income 
and accrued interest, and provide a description of the respondent's 
cash management system and proposed distribution of funds among 
participating organizations.
    Other aspects of the program must be described including, but not 
limited to, the administrative structure and program monitoring; in the 
case of a consortium, identification of all the participating members 
listing the responsibilities and geographic scope of each; the 
procedures to be followed in selecting properties, meeting 
environmental review requirements, and choosing homebuyers; the sweat-
equity and community participation volunteer requirements; the size and 
design of the new dwellings, including accessible design, as needed in 
homes for occupants with disabilities; respondents are encouraged to 
incorporate ``visitability'' standards where feasible, and to promote 
energy efficiency; the use of cost reducing innovations in construction 
technologies and land planning; the counseling and training components; 
the terms of sale to homebuyers; and the identification of 
participating lenders.
    This section of the expression of interest should contain 
sufficient information for HUD to determine that the respondent 
understands and intends to comply with all requirements of the 
Extension Act and the Notice.

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(E) Selection Process

    HUD will conduct a review of the information provided by the 
applicant which addresses the minimum requirements concerning 
experience, capacity, financial commitments, and Fair Housing 
compliance. Expressions of interest meeting the minimum requirements, 
and providing feasible and complete program designs will be funded. 
(HUD may check to independently verify information contained in the 
expression of interest.) SHOP funds must be used in a manner that 
results in national geographic diversity. HUD reserves the right not to 
fund any of the expressions of interest received or to award an amount 
less than that which was requested. Funds remaining from the $6,262,500 
will be added to the funds being provided to Habitat for Humanity 
International.
    Where HUD determines that an expression of interest does not 
include a required form or certification, it will notify the respondent 
in writing and give it an opportunity to correct the technical 
deficiency(ies). The notification will require the respondent to submit 
additional or corrected items so that they are received in HUD 
Headquarters by no later than 4:30 p.m. Eastern Time on the 14th 
calendar day after the date of the written notification to the 
respondent giving it an opportunity to correct the deficiency(ies). HUD 
will not extend this deadline for actual receipt of the material for 
any reason.
    HUD will NOT notify the respondent of any deficiencies in material 
that is to be evaluated to determine whether the respondent meets the 
minimum requirements, other requirements, or has provided a feasible 
and complete program design.
    Once these selections have been made (within 6 months of the 
publication of this Notice), HUD will provide excess funds remaining 
from the $6,262,500 allocation to Habitat for Humanity International to 
be used as provided for under section 11 of the Extension Act.

III. Other Matters

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made for the program in accordance with HUD regulations at 24 
CFR part 50, which implements section 102(2)(C) of the National 
Environmental Policy Act of 1969. The Finding is available for public 
inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of 
the Rules Docket Clerk, Office of the General Counsel, Department of 
Housing and Urban Development, room 10276, 451 Seventh Street, SW, 
Washington, DC 20410.

Federalism Executive Order

    The General Counsel, as the Designated Official for HUD under 
section 6(a) of Executive Order 12612, Federalism, has determined that 
the provisions in this Notice are closely based on statutory 
requirements and impose no significant additional burdens on States or 
other public bodies. This Notice does not affect the relationship 
between the Federal Government and the States and other public bodies 
or the distribution of power and responsibilities among various levels 
of government. Therefore, the policy is not subject to review under 
Executive Order 12612.

Prohibition Against Lobbying Activities

    Applicants for funding under this Notice 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. Tribes and tribally designated housing entities (THDEs) 
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 tribes and TDHEs established under State law are not 
excluded from the statute's coverage.)

Catalog of Federal Domestic Assistance Number

    The Catalog of Federal Domestic Assistance number for the SHOP 
Program is 14.247.

    Dated: May 22, 1998.
Saul Ramirez,
Assistant Secretary for Community Planning and Development.
[FR Doc. 98-14366 Filed 5-29-98; 8:45 am]
BILLING CODE 4210-32-P