29828 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

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).

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 nonluxury 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 lowincome 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 sweatequity 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
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29829

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 81⁄2′′×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, NonConstruction 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
29830 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

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 sweatequity 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.
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29831

(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