[Federal Register Volume 63, Number 104 (Monday, June 1, 1998)]
[Notices]
[Pages 29866-29872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14362]



[[Page 29865]]

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Part IX





Department of Housing and Urban Development





_______________________________________________________________________



Notice of Funding Availability Family Unification Program Fiscal Year 
1998; Notice

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

[[Page 29866]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4360-N-01]


Notice of Funding Availability, Family Unification Program, 
Fiscal Year 1998

AGENCY: Office of Public and Indian Housing, HUD.

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: This NOFA announces the availability of approximately $15 
million in one-year budget authority for Section 8 rental certificates 
under the Family Unification Program, which will provide rental 
assistance for approximately 2,200 families. The purpose of the Family 
Unification Program is to provide housing assistance to families for 
whom the lack of adequate housing is a primary factor in the 
separation, or imminent separation, of children from their families.
    Public Housing Agencies (PHAs) are invited to submit applications 
for housing assistance. (Indian Housing Authorities are not eligible.) 
In the event there are insufficient funds to fund all approvable 
applications received in response to this NOFA, a lottery will be held 
to select approvable applications for funding.

Application Due Dates

(A) Delivered Applications

    The application deadline for delivered applications for the Family 
Unification program NOFA is July 24, 1998, 6:00 p.m., local HUD Field 
Office HUB and local HUD Field Office Program Center time.
    This application deadline is firm as to date and hour. In the 
interest of fairness to all competing PHAs, HUD will not consider any 
application that is received after the application deadline. Applicants 
should take this practice into account and make early submission of 
their materials to avoid any risk of loss of eligibility brought about 
by unanticipated delays or other delivery-related problems. HUD will 
not accept, at any time during the NOFA competition, application 
materials sent via facsimile (FAX) transmission.

(B) Mailed Applications

    Applications for the Family Unification Program will be considered 
timely filed if postmarked before midnight on the application due date 
and received by the local HUD Field Office HUB or local HUD Field 
Office Program Center within ten (10) days of that date.

(C) Applications Sent By Overnight Delivery

    Overnight delivery items will be considered timely filed for the 
Family Unification Program 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.

Address and Application Submission Procedures

    The original and a copy of the application for the Family 
Unification Program should be submitted to the local HUD Field Office 
HUB, Attention: Director, Office of Public Housing; or to the local HUD 
Field Office Program Center, Attention: Program Center Coordinator. The 
local HUD Field Office HUB or local HUD Field Office Program Center is 
the official place of receipt for all applications received in response 
to this NOFA.
    For ease of reference, the term ``local HUD Field Office'' will be 
used throughout this NOFA to mean the local HUD Field Office HUB or 
local HUD Field Office Program Center.

For Further Information and Technical Assistance

(A) For Further Information

    For answers to your questions, you have several options. You may 
contact the local HUD Field Office. You may also contact George C. 
Hendrickson, Housing Program Specialist, Office of Public and Assisted 
Housing Delivery, Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington, DC 20410; telephone (202) 708-0477. 
(This number is not a toll-free number). Persons with hearing or speech 
impairments may access this number via TTY (text telephone) by calling 
the Federal Information Relay Service at 1-800-877-8339 (this is a toll 
free number).

(B) For Technical Assistance

    Prior to the application due date, HUD staff will be available to 
provide general guidance and technical assistance about this NOFA. 
Current law does not permit HUD staff to assist in preparing the 
application. Following selection, but prior to award, HUD staff will be 
available to assist in clarifying or confirming information that is a 
prerequisite to the offer of an award by HUD.

Additional Information

I. Authority, Purpose, Amount Allocated, and Eligibility

(A) Authority

    The Family Unification Program is authorized by section 8(x) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(x)). The Department 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1998 (Pub. L. 105-65; approved October 27, 
1997) provides funding for the Family Unification Program. Of the 
approximately $15 million available under this NOFA, approximately $1.3 
million are carryover amounts from the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997 (Pub. L. 104-204; approved September 26, 
1996), for prevention of resident displacement.

(B) Purpose

    The Family Unification Program is a program under which Section 8 
rental assistance is provided to families for whom the lack of adequate 
housing is a primary factor which would result in:
    (1) The imminent placement of the family's child, or children, in 
out-of-home care; or
    (2) The delay in the discharge of the child, or children, to the 
family from out-of-home care.
    The purpose of the Family Unification Program is to promote family 
unification by providing rental assistance to families for whom the 
lack of adequate housing is a primary factor in the separation, or the 
threat of imminent separation, of children from their families.
    Rental certificates awarded under the Family Unification Program 
are administered by PHAs under HUD's regulations for the Section 8 
rental certificate program (24 CFR parts 882 and 982). If the family 
requests a rental voucher, the PHA may issue a rental voucher (24 CFR 
parts 887 and 982) if it has one to a family selected for participation 
in the Family Unification Program.

(C) Amount Allocated

    This NOFA announces the availability of approximately $15 million 
for the Family Unification Program which will provide assistance for 
about 2,200 families. PHAs with a current Section 8 rental voucher and 
certificate program of more than 500 units as shown in the most recent 
HUD-approved program budget may apply for funding for a maximum of 100 
units. PHAs with a current Section 8 rental voucher or

[[Page 29867]]

certificate program of 500 units or less as shown in the most recent 
HUD-approved program budget may apply for a maximum of 50 units. PHAs 
not currently administering either a Section 8 rental voucher or 
certificate program may apply for a maximum of 50 units.
    The amounts allocated under this NOFA will be awarded under a 
national competition based on the threshold criteria. A national 
lottery will be conducted to select approvable applications for funding 
if approvable applications are submitted by PHAs for more funding than 
HUD has available under this NOFA. In the event a lottery is necessary, 
any approvable applications that are not selected for funding will be 
funded in FY 1999 to the extent appropriations are available in FY 1999 
for the Family Unification Program.
    The Family Unification Program is exempt from the fair share 
allocation requirements of section 213(d) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 1439(d)) and the implementing 
regulations at 24 CFR part 791, subpart D.

(D) Eligible Applicants

    (1) Family Unification Program Eligibility. Any PHA established 
pursuant to State law, including regional (multicounty) or State PHAs, 
may apply for funding under this NOFA. Indian Housing Authorities are 
no longer eligible.
    (2) Eligibility for HUD-Designated Housing Agencies with Major 
Program Findings. Some PHAs currently administering the Section 8 
rental voucher and certificate programs have, at the time of 
publication of this NOFA, major program management findings that are 
open and unresolved or other significant program compliance problems 
(e.g., PHA has not implemented mandatory FSS program). HUD will not 
accept applications for additional funding from these PHAs as contract 
administrators if, on the application deadline date, the findings are 
not closed to HUD's satisfaction. If any of these PHAs want to apply 
for the Family Unification Program, the PHA must submit an application 
that designates another housing agency, nonprofit agency, or contractor 
that is acceptable to HUD. The PHA application must include an 
agreement by the other housing agency or contractor to administer the 
program for the new funding increment on behalf of the PHA and a 
statement that outlines the steps the PHA is taking to resolve the 
program findings. Immediately after the publication of this NOFA, the 
Office of Public Housing in the local HUD Office will notify, in 
writing, those PHAs that are not eligible to apply because of 
outstanding management or compliance problems. The PHA may appeal the 
decision, if HUD has mistakenly classified the PHA as having 
outstanding management or compliance problems. Any appeal must be 
accompanied by conclusive evidence of HUD's error (i.e, documentation 
showing that the finding has been cleared) and must be received prior 
to the application deadline. Applications submitted by these PHAs 
without an agreement from another housing agency or contractor, 
approved by HUD, to administer the program on behalf of the PHA will be 
rejected.

II. General Requirements and Requirements Specific To The Family 
Unification Program

(A) General Requirements

    (1) Compliance with Fair Housing and Civil Rights Laws. All 
applicants must comply with all Fair Housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a). If an applicant: (a) has been charged with a violation of the 
Fair Housing Act by the Secretary; (b) is the defendant in a Fair 
Housing Act lawsuit filed by the Department of Justice; or (c) has 
received a letter of noncompliance findings under Title VI of the Civil 
Rights Act, section 504 of the Rehabilitation Act, or section 109 of 
the Housing and Community Development Act, the applicant is not 
eligible to apply for funding under this NOFA until the applicant 
resolves such charge, lawsuit, or letter of findings to HUD's 
satisfaction.
    (2) Additional Nondiscrimination Requirements. Applicants must 
comply with the Americans with Disabilities Act and Title IX of the 
Education Amendments Act of 1972. In addition to compliance with the 
civil rights requirements listed at 24 CFR 5.105, each successful 
applicant must comply with the nondiscrimination in employment 
requirements of Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
2000e et seq.), the Equal Pay Act (29 U.S.C. 206(d)), the Age 
Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.), and 
Titles I and V of the Americans with Disabilities Act (42 U.S.C. 12101 
et seq.).
    (3) Affirmatively Furthering Fair Housing. Each successful 
applicant will have a duty to affirmatively further fair housing. 
Applicants will be required to identify the specific steps that they 
will take to: (a) Address the elimination of impediments to fair 
housing that were identified in the jurisdiction's Analysis of 
Impediments (AI) to Fair Housing Choice; (b) remedy discrimination in 
housing; or (c) promote fair housing rights and fair housing choice. 
Further, applicants have a duty to carry out the specific activities 
cited in their response to the rating factors that address 
affirmatively furthering fair housing in this NOFA.
    (4) Certifications and Assurances. Each applicant is required to 
submit signed copies of Assurances and Certifications. The standard 
Assurances and Certifications are on Form HUD-52515, Funding 
Application, which includes the Equal Opportunity Certification, 
Certification Regarding Lobbying, and Certification Regarding Drug-Free 
Workplace Requirements.
    (5) Family Self-Sufficiency (FSS) Program Requirement. Unless 
specifically exempted by HUD, all rental voucher or rental certificate 
funding reserved in FY 1998 (except funding for renewals or amendments) 
will be used to establish the minimum size of an PHA's FSS program.

(B) Requirements Specific to the Family Unification Program

    (1) Eligibility.
    (a) Family Unification eligible families. Each PHA must modify its 
selection preference system to permit the selection of Family 
Unification eligible families for the program with available funding 
provided by HUD for this purpose. The term ``Family Unification 
eligible family'' means a family that:
    (i) The public child welfare agency has certified is a family for 
whom the lack of adequate housing is a primary factor in the imminent 
placement of the family's child, or children, in out-of-home care, or 
in the delay of discharge of a child, or children, to the family from 
out-of-home care; and
    (ii) The PHA has determined is eligible for Section 8 rental 
assistance.
    (b) Lack of Adequate Housing. The lack of adequate housing means:
    (i) A family is living in substandard or dilapidated housing; or
    (ii) A family is homeless; or
    (iii) A family is displaced by domestic violence; or
    (iv) A family is living in an overcrowded unit.
    (c) Substandard Housing. A family is living in substandard housing 
if the unit where the family lives:
    (i) Is dilapidated;
    (ii) Does not have operable indoor plumbing;
    (iii) Does not have a usable flush toilet inside the unit for the 
exclusive use of a family;

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    (iv) Does not have a usable bathtub or shower inside the unit for 
the exclusive use of a family;
    (v) Does not have electricity, or has inadequate or unsafe 
electrical service;
    (vi) Does not have a safe or adequate source of heat;
    (vii) Should, but does not, have a kitchen; or (viii) Has been 
declared unfit for habitation by an agency or unit or government.
    (d) Dilapidated Housing. A family is living in a housing unit that 
is dilapidated if the unit where the family lives does not provide safe 
and adequate shelter, and in its present condition endangers the 
health, safety, or well-being of a family, or the unit has one or more 
critical defects, or a combination of intermediate defects in 
sufficient number or extent to require considerable repair or 
rebuilding. The defects may result from original construction, from 
continued neglect or lack of repair or from serious damage to the 
structure.
    (e) Homeless. A homeless family includes any person or family that:
    (i) Lacks a fixed, regular, and adequate nighttime residence; and
    (ii) Has a primary nighttime residence that is:
    1. A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing);
    2. An institution that provides a temporary residence for persons 
intended to be institutionalized; or
    3. A public or private place not designed for, or ordinarily used 
as, a regular sleeping accommodation for human beings.
    (f) Displaced by Domestic Violence. A family is displaced by 
domestic violence if:
    (i) The applicant has vacated a housing unit because of domestic 
violence; or
    (ii) The applicant lives in a housing unit with a person who 
engages in domestic violence.
    (iii) ``Domestic violence'' means actual or threatened physical 
violence directed against one or more members of the applicant family 
by a spouse or other member of the applicant's household.
    (g) Involuntarily Displaced. For a family to qualify as 
involuntarily displaced because of domestic violence:
    (i) The PHA must determine that the domestic violence occurred 
recently or is of a continuing nature; and
    (ii) The applicant must certify that the person who engaged in such 
violence will not reside with the family unless the HA has given 
advance written approval. If the family is admitted, the PHA may 
terminate assistance to the family for breach of this certification.
    (h) Living in Overcrowded Housing. A family is considered to be 
living in an overcrowded unit if:
    (i) The family is separated from its child (or children) and the 
parent(s) are living in an otherwise standard housing unit, but, after 
the family is re-united, the parents' housing unit would be overcrowded 
for the entire family and would be considered substandard; or
    (ii) The family is living with its child (or children) in a unit 
that is overcrowded for the entire family and this overcrowded 
condition may result in the imminent placement of its child (or 
children) in out-of-home care.
    For purpose of this paragraph (h), the PHA may determine whether 
the unit is ``overcrowded'' in accordance with PHA subsidy standards.
    (i) Detained Family. A Family Unification eligible family may not 
include any person imprisoned or otherwise detained pursuant to an Act 
of the Congress or a State law.
    (j) Public child welfare agency (PCWA) means the public agency that 
is responsible under applicable State law for determining that a child 
is at imminent risk of placement in out-of-home care or that a child in 
out-of-home care under the supervision of the public agency may be 
returned to his or her family.
    (2) PHA Responsibilities. PHAs must:
    (a) Accept families certified by the PCWA as eligible for the 
Family Unification Program. The PHA, upon receipt of the PCWA list of 
families currently in the PCWA caseload, must compare the names with 
those of families already on the PHA's Section 8 waiting list. Any 
family on the PHA's Section 8 waiting list that matches with the PCWA's 
list must be assisted in order of their position on the waiting list in 
accordance with PHA admission policies. Any family certified by the 
PCWA as eligible and not on the Section 8 waiting list must be placed 
on the waiting list. If the PHA has a closed Section 8 waiting list, it 
must reopen the waiting list to accept a Family Unification Program 
applicant family who is not currently on the PHA's Section 8 waiting 
list;
    (b) Determine if any families with children on its waiting list are 
living in temporary shelters or on the street and may qualify for the 
Family Unification Program, and refer such applicants to the PCWA;
    (c) Determine if families referred by the PCWA are eligible for 
Section 8 assistance and place eligible families on the Section 8 
waiting list;
    (d) Amend the administrative plan in accordance with applicable 
program regulations and requirements;
    (e) Administer the rental assistance in accordance with applicable 
program regulations and requirements; and
    (f) Assure the quality of the evaluation that HUD intends to 
conduct on the Family Unification Program and cooperate with and 
provide requested data to the HUD office or HUD-approved contractor 
responsible for program evaluation.
    (3) Public Child Welfare Agency (PCWA) Responsibilities. A public 
child welfare agency that has agreed to participate in the Family 
Unification Program must:
    (a) Establish and implement a system to identify Family Unification 
eligible families within the agency's caseload and to review referrals 
from the PHA;
    (b) Provide written certification to the PHA that a family 
qualifies as a Family Unification eligible family based upon the 
criteria established in section 8(x) of the United States Housing Act 
of 1937, and this notice;
    (c) Commit sufficient staff resources to ensure that Family 
Unification eligible families are identified and determined eligible in 
a timely manner and to provide follow-up supportive services after the 
families lease units; and
    (d) Cooperate with the evaluation that HUD intends to conduct on 
the Family Unification Program, and submit a certification with the 
PHA's application for Family Unification funding that the PCWA will 
agree to cooperate with and provide requested data to the HUD office or 
HUD-approved contractor having responsibility for program evaluation.
    (4) Section 8 Rental Certificate Assistance. The Family Unification 
Program provides funding for rental assistance under the Section 8 
rental certificate program. Although HUD is providing a special 
allocation of rental certificates, the PHA may use both rental vouchers 
and certificates to assist families under this program.
    PHAs must administer this program in accordance with HUD's 
regulations governing the Section 8 rental certificate and rental 
voucher programs. The PHA may issue a rental voucher to a family 
selected to participate in the Family Unification Program if the family 
requests a rental voucher and the PHA has one available. If Section 8 
rental assistance for a family under this program is terminated, the 
rental assistance must be reissued to another Family Unification 
eligible family for 5 years from the initial date of execution of the 
Annual Contributions Contract

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subject to the availability of renewal funding.

III. Application Selection Process for Funding

(A) Rating and Ranking

    HUD's local HUD Field Offices are responsible for rating the 
applications for the selection criteria established in this NOFA, and 
are responsible for selection of applications that will receive 
assistance under the Family Unification Program. The local HUD Field 
Offices will initially screen all applications and determine any 
technical deficiencies based on the application submission 
requirements.
    Each eligible application submitted in response to the NOFA, in 
order to be eligible for funding, must receive at least 20 points for 
Threshold Criterion 2, Efforts of HA to Provide Area-Wide Housing 
Opportunities for Families. Each application must also meet the 
requirements for Threshold Criterion 1, Unmet Housing Needs; Threshold 
Criterion 3, Coordination between HA and Public Child Welfare Agency to 
Identify and Assist Eligible Families; and Threshold Criterion 4, 
Public Child Welfare Agency Statement of Need for Family Unification 
Program.

(B) Threshold Criteria

    (1) THRESHOLD CRITERION 1: UNMET HOUSING NEEDS.
    This criterion requires the PHA to demonstrate the need for an 
equal or greater number of Section 8 rental certificates than it is 
requesting under this NOFA. The PHA must assess and document the unmet 
housing need for its geographic jurisdiction of families for whom the 
lack of adequate housing is a primary factor in the imminent placement 
of the family's child or children in out-of-home care, or in a delay of 
discharge of a child or children to the family from out-of-home care. 
The results of the assessment must include a comparison of the 
estimated unmet housing needs of such families to the Consolidated Plan 
covering the PHA's jurisdiction.
    (2) THRESHOLD CRITERION 2: EFFORTS OF PHA TO PROVIDE AREA-WIDE 
HOUSING OPPORTUNITIES FOR FAMILIES (60 POINTS).
    (a) Description: Many PHAs have undertaken voluntary efforts to 
provide area-wide housing opportunities for families. The efforts 
described in response to this selection criterion must be beyond those 
required by federal law or regulation such as the portability 
provisions of the Section 8 rental voucher and certificate programs. 
PHAs in metropolitan and non-metropolitan areas are eligible for points 
under this criterion. The local HUD Field Office will assign points to 
PHAs that have established cooperative agreements with other PHAs or 
created a consortium of PHAs in order to facilitate the transfer of 
families and their rental assistance between PHA jurisdictions. In 
addition, the local HUD Field Office will assign points to PHAs that 
have established relationships with nonprofit groups to provide 
families with additional counseling, or have directly provided 
counseling, to increase the likelihood of a successful move by the 
families to areas that do not have large concentrations of poverty.
    (b) Rating and Assessment: The local HUD Field Office will assign 
10 points for any of the following assessments for which the PHA 
qualifies and add the points for all the assessments (maximum of 60 
points) to determine the total points for this Selection Criterion:
    (i) 10 points--Assign 10 points if the PHA documents that it 
participates in an area-wide rental voucher and certificate exchange 
program where all PHAs absorb portable Section 8 families.
    (ii) 10 Points--Assign 10 points if the PHA documents that its 
administrative plan does not include a ``residency preference'' for 
selection of families to participate in its rental voucher and 
certificate programs or the PHA states that it will eliminate 
immediately any ``residency preference'' currently in its 
administrative plan.
    (iii) 10 Points--Assign 10 points if the PHA documents that PHA 
staff will provide housing counseling for families that want to move to 
low-poverty or non-minority areas, or if the PHA has established a 
contractual relationship with a nonprofit agency or a local 
governmental entity to provide housing counseling for families that 
want to move to low-poverty or non-minority areas. The five PHAs 
approved for the FY 1993 Moving to Opportunity (MTO) for Fair Housing 
Demonstration and any other PHAs that receive counseling funds from HUD 
(e.g., in settlement of litigation involving desegregation or 
demolition of public housing, regional opportunity counseling, or mixed 
population projects) may qualify for points under this assessment, but 
these PHAs must identify all activities undertaken, other than those 
funded by HUD, to expand housing opportunities.
    (iv) 10 Points--Assign 10 points if the PHA documents that it 
requested from HUD, and HUD approved, the authority to utilize 
exceptions to the fair market rent limitations as allowed under 24 CFR 
882.106(a)(4) to allow families to select units in low-poverty or non-
minority areas.
    (v) 10 Points--Assign 10 points if the PHA documents that it 
participates with other PHAs in using a metropolitan wide or combined 
waiting list for selecting participants in the program.
    (vi) 10 Points--Assign 10 points if the PHA documents that it has 
implemented other initiatives that have resulted in expanding housing 
opportunities in areas that do not have undue concentrations of poverty 
or minority families.
    (3) THRESHOLD CRITERION 3: COORDINATION BETWEEN PHA AND PUBLIC 
CHILD WELFARE AGENCY TO IDENTIFY AND ASSIST ELIGIBLE FAMILIES.
    The application must describe the method that the PHA and the PCWA 
will use to identify and assist Family Unification eligible families. 
The application must include a letter of intent from the PCWA stating 
its commitment to provide resources and support for the program. The 
PCWA letter of intent and other information must include an explanation 
of: the method for identifying Family Unification eligible families, 
the PCWA's certification process for determining Family Unification 
eligible families, the responsibilities of each agency, the assistance 
that the PCWA will provide to families in locating housing units, the 
PCWA staff resources committed to the program, the past PCWA experience 
administering a similar program, and the PCWA/PHA cooperation in 
administering a similar program.
    (4) THRESHOLD CRITERION 4: PUBLIC CHILD WELFARE AGENCY STATEMENT OF 
NEED FOR FAMILY UNIFICATION PROGRAM.
    The application must include a statement by the PCWA describing the 
need for a program providing assistance to families for whom lack of 
adequate housing is a primary factor in the placement of the family's 
children in out-of-home care or in the delay of discharge of the 
children to the family from out-of-home care in the area to be served, 
as evidenced by the caseload of the public child welfare agency. The 
PCWA must adequately demonstrate that there is a need in the PHA's 
jurisdiction for the Family Unification program that is not being met 
through existing programs. The narrative must include specific 
information relevant to the area to be served, about homelessness, 
family violence resulting in involuntary displacement, number and 
characteristics of families who are experiencing the placement of 
children in out-of-home care or the delayed

[[Page 29870]]

discharge of children from out-of-home care as the result of inadequate 
housing, and the PCWA's past experience in obtaining housing through 
HUD assisted programs and other sources for families lacking adequate 
housing.

(C) Funding FY 1998 Applications

    After the local HUD Field Office has screened HA applications and 
disapproved any applications unacceptable for further processing (See 
Section V(B) of this NOFA, below), the local HUD Field Office will 
review and rate all approvable applications, utilizing the Threshold 
Criteria and the point assignments listed in this NOFA. The local HUD 
Field Office will send to HUD Headquarters' Office of Funding and 
Financial Management the following information on each application that 
passes the Threshold Criteria:
    (1) Name and address of the PHA;
    (2) Name and address of the Public Child Welfare Agency;
    (3) Local HUD Field Office contact person and telephone number;
    (4) The requested number of rental certificates in the PHA 
application and the minimum number of rental certificates acceptable to 
the PHA; and
    (5) A completed fund reservation worksheet for the number of rental 
certificates requested in the application and recommended for approval 
by the local HUD Field Office during the course of its review, and the 
corresponding budget authority.
    HUD Headquarters' Office of Funding and Financial Management will 
select eligible PHAs to be funded based on a lottery in the event 
approvable applications are received for more funding than is available 
under this NOFA. All PHA applications identified by the local HUD Field 
Offices as meeting the Threshold Criteria identified in this NOFA will 
be eligible for the lottery selection process. If the cost of funding 
these applications exceeds available funds, HUD Headquarters will limit 
the number of FY 1998 applications selected for any State to no more 
than 10 percent of the budget authority made available under this NOFA 
in order to achieve geographic diversity. However, if establishing this 
geographic limit results in unspent budget authority, HUD may modify 
this limit to assure that all available funds are used.
    Applications will be funded in full for the number of rental 
certificates requested by the PHA in accordance with the NOFA. However, 
if the remaining rental certificate funds are insufficient to fund the 
last PHA application in full, HUD Headquarters may fund that 
application to the extent of the funding available and the applicant's 
willingness to accept a reduced number of rental certificates. 
Applicants that do not wish to have the size of their programs reduced 
may indicate in their applications that they do not wish to be 
considered for a reduced award of funds. HUD Headquarters will skip 
over these applicants if assigning the remaining funding would result 
in a reduced funding level.

(D) Possibility of Subsequently Funding FY 1998 Approvable Applications 
Not Selected By Lottery For Funding

    In the event a lottery is necessary during FY 1998, any approvable 
applications which are not selected for funding will be funded in FY 
1999 to the extent that appropriations are available in FY 1999 for the 
Family Unification Program.

IV. Application Submission Requirements

(A) Form HUD-52515

    Funding Application, form HUD-52515, must be completed and 
submitted for the Section 8 rental certificate program. This form 
includes all the necessary certifications for Fair Housing, Drug-Free 
Workplace and Lobbying Activities. An application must include the 
information in Section C, Average Monthly Adjusted Income, of form HUD-
52515 in order for HUD to calculate the amount of Section 8 budget 
authority necessary to fund the requested number of certificate units. 
PHAs may obtain a copy of form HUD-52515 from the local HUD Field 
Office or may download it from the HUD Home page on the internet's 
world wide web (http://www.HUD.gov).

(B) Local Government Comments

    Section 213 of the Housing and Community Development Act of 1974 
requires that HUD independently determine that there is a need for the 
housing assistance requested in applications and solicit and consider 
comments relevant to this determination from the chief executive 
officer of the unit of general local government. The local HUD Field 
Office will obtain section 213 comments from the unit of general local 
government in accordance with 24 CFR part 791, subpart C, Applications 
for Housing Assistance in Areas Without Housing Assistance Plans. 
Comments submitted by the unit of general local government must be 
considered before an application can be approved.
    For purposes of expediting the application process, the PHA should 
encourage the chief executive officer of the unit of general local 
government to submit a letter with the PHA application commenting on 
the PHA application in accordance with section 213. Because HUD cannot 
approve an application until the 30-day comment period is closed, the 
section 213 letter should not only comment on the application, but also 
state that HUD may consider the letter to be the final comments and 
that no additional comments will be forthcoming from the unit of 
general local government.

(C) Letter of Intent and Narrative

    All the items in this section must be included with the application 
submitted to the local HUD Field Office. Funding is limited, and HUD 
may only have enough funds to approve a smaller amount than the number 
of rental certificates requested. The PHA must state in its cover 
letter to the application whether it will accept a smaller number of 
rental certificates and the minimum number of rental certificates it 
will accept. The cover letter must also include a statement by the PHA 
certifying that the PHA has consulted with the agency or agencies in 
the State responsible for the administration of welfare reform to 
provide for the successful implementation of the State's welfare reform 
for families receiving rental assistance under the family unification 
program. The application must include an explanation of how the 
application meets, or will meet, Threshold Criteria 1 through 4 in 
Section IV(D) of this NOFA, below.
    The application must also include a letter of intent from the PCWA 
stating its commitment to provide resources and support for the Family 
Unification Program. The PCWA letter of intent must explain:
    (1) The definition of eligible family unification program families;
    (2) The method used to identify eligible family unification program 
families;
    (3) The process to certify eligible family unification program 
families;
    (4) The PCWA assistance to families to locate suitable housing;
    (5) The PCWA staff resources committed to the program; and
    (6) PCWA experience with the administration of similar programs 
including cooperation with a PHA.
    The PCWA serving the jurisdiction of the PHA is responsible for 
providing the information for Threshold Criterion 4, PCWA Statement of 
Need for Family Unification Program, to the PHA for submission with the 
PHA application.

[[Page 29871]]

This should include a discussion of the case-load of the PCWA and 
information about homelessness, family violence resulting in 
involuntary displacement, number and characteristics of families who 
are experiencing the placement of children in out-of-home care as a 
result of inadequate housing, and the PCWA's experience in obtaining 
housing through HUD assisted housing programs and other sources for 
families lacking adequate housing. A State-wide Public Child Welfare 
Agency must provide information on Threshold Criterion 4, PCWA 
Statement of Need for Family Unification Program, to all PHAs that 
request such information; otherwise, HUD will not consider applications 
from any PHAs with the State-wide PCWA as a participant in its program.

(D) Evaluation Certifications

    The PHA and the PCWA, in separate certifications, must state that 
the PHA and Public Child Welfare Agency agree to cooperate with HUD and 
provide requested data to the HUD office or HUD approved contractor 
delegated the responsibility for the program evaluation. No specific 
language for this certification is prescribed by HUD.

V. Corrections To Deficient Family Unification Applications

(A) Acceptable Applications

    To be eligible for processing, an application must be received by 
local HUD Field Office no later than the date and time specified in 
this NOFA. The local HUD Field Office will initially screen all 
applications and notify PHAs of technical deficiencies by letter.
    After the application due date, HUD may not, consistent with 24 CFR 
part 4, subpart B, consider unsolicited information from an applicant. 
HUD may contact an applicant, however, to clarify an item in the 
application or to correct technical deficiencies. Applicants should 
note, however, that HUD 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, HUD will 
notify the applicant in writing by describing the clarification or 
technical deficiency. HUD 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 HUD within 14 calendar days of the date of 
receipt of the HUD notification. If the deficiency is not corrected 
within this time period, HUD will reject the application as incomplete.

(B) Unacceptable Applications

    (1) After the 14-calendar day technical deficiency correction 
period, the local HUD Field Office will disapprove PHA applications 
that it determines are not acceptable for processing. The local HUD 
Field Office's notification of rejection letter must state the basis 
for the decision.
    (2) Applications from PHAs that fall into any of the following 
categories will not be processed:
    (a) Applications from PHAs that do not meet the requirements of 
Section II(A)(1) of this NOFA, Compliance With Fair Housing and Civil 
Rights Laws.
    (b) The PHA has serious unaddressed, outstanding Inspector General 
audit findings, or HUD management review findings for one or more of 
its Rental Voucher, Rental Certificate, or Moderate Rehabilitation 
Programs, or, in the case of a PHA that is not currently administering 
a Rental Voucher, Rental Certificate, or Moderate Rehabilitation 
Program, for its Public Housing Program. The only exception to this 
category is if the PHA has been identified under the policy established 
in Section I(D)(2) of this NOFA and the PHA makes application with 
another agency or contractor that will administer the family 
unification assistance on behalf of the PHA.
    (c) The PHA is involved in litigation and HUD determines that the 
litigation may seriously impede the ability of the PHA to administer an 
additional increment of rental vouchers or rental certificates.
    (d) After the 14-calendar day technical deficiency correction 
period, a PHA application that does not comply with the requirements of 
24 CFR 982.102 and this NOFA, will be rejected from processing.
    (e) A PHA application submitted after the deadline date.

VI. Promoting Comprehensive Approaches to Housing and Community 
Development

    HUD is interested in promoting comprehensive, coordinated 
approaches to housing and community development. Economic development, 
community development, public housing revitalization, homeownership, 
assisted housing for special needs populations, supportive services, 
and welfare-to-work initiatives can work better if linked at the local 
level. Toward this end, HUD has recently developed the Consolidated 
Planning process designed to help communities undertake such 
approaches.
    In this spirit, it may be helpful for applicants under this NOFA to 
be aware of other related HUD NOFAs that have recently been published 
or are expected to be published in the near future. By reviewing these 
NOFAs with respect to their program purposes and the eligibility of 
applicants and activities, applicants may be able to relate the 
activities proposed for funding under this NOFA to the recent and 
upcoming NOFAs and to the community's Consolidated Plan.
    Applicants should see the SuperNOFA for Housing and Community 
Development Programs published in the Federal Register on March 31, 
1998 (62 FR 15490); the SuperNOFA for Economic Development and 
Empowerment Programs published on April 30, 1998 (62 FR 23876); and the 
SuperNOFA for Targeted Housing and Homeless Assistance Programs, that 
were both published on April 30, 1998 (62 FR 23988).
    To foster comprehensive, coordinated approaches by communities, HUD 
intends for the remainder of FY 1998 to continue to alert applicants to 
upcoming and recent NOFAs as each NOFA is published. In addition, a 
complete schedule of NOFAs to be published during the fiscal year and 
those already published appears under the HUD Homepage on the Internet, 
which can be accessed at http://www.hud.gov/nofas.html. Additional 
steps on NOFA coordination may be considered for FY 1999.
    To help in obtaining a copy of your community's Consolidated Plan, 
please contact the community development office of your municipal 
government.

VII. Findings and Certifications

(A) Paperwork Reduction Act Statement

    The Section 8 information collection requirements contained in this 
NOFA have been approved by the Office of Management and Budget in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2577-0169. 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 Requirements And Impact

    In accordance with 24 CFR 50.19(b)(11), tenant-based activities 
assisted under this program are categorically excluded from the

[[Page 29872]]

requirements of the National Environmental Policy Act and are not 
subject to environmental review under the related laws and authorities. 
In accordance with 24 CFR 50.19(c)(5), the approval for issuance of 
this NOFA is categorically excluded from environmental review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321).

(C) Catalog of Federal Domestic Assistance Numbers

    The Federal Domestic Assistance number for this program is: 14.857.

(D) Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this notice will not have substantial direct effects on 
States or their political subdivisions, or the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the notice is not subject to review under the Order. This notice is a 
funding notice and does not substantially alter the established roles 
of HUD, the States, and local governments, including PHAs.

(E) Accountability in the Provision of HUD Assistance

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (HUD Reform Act) and the 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 are applicable 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 in 24 
CFR part 15.

(F) Section 103 of the HUD Reform Act

    HUD will comply with its regulations implementing section 103 of 
the HUD Reform Act, codified in 24 CFR part 4, for this funding 
competition. These requirements continue to apply until the 
announcement of the selection of successful applicants.
    HUD employees involved in the review of applications and in the 
making of funding decisions are restrained by part 4 from providing 
advance information to any person (other than persons authorized to 
receive such information) 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 the HUD Office of Ethics, (202) 708-3815 (voice), (202) 708-
1112 (TTY). (These are not toll-free numbers.) For HUD employees who 
have specific program questions, the employee should contact the 
appropriate Field Office Counsel.

(G) 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) and to the provisions of the Lobbying Disclosure Act of 
1995 (Pub. L. 104-65; approved December 19, 1995).
    The Byrd Amendment, which is implemented in regulations in 24 CFR 
part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment, or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this NOFA. Therefore, applicants must file a certification 
stating that they have not made and will not make any prohibited 
payments and, if any payments or agreement to make payments of 
nonappropriated funds for these purposes have been made, a form SF-LLL 
disclosing such payments must be submitted. The certification and the 
SF-LLL are included in the application package.
    The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved 
December 19, 1995), requires all persons and entities who lobby covered 
executive or legislative branch officials to register with the 
Secretary of the Senate and the Clerk of the House of Representatives 
and file reports concerning their lobbying activities.

    Dated: May 22, 1998.
Deborah Vincent,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 98-14362 Filed 5-29-98; 8:45 am]
BILLING CODE 4210-33-P