38252 Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4380–N–01]

Notice of Funding Availability for the

HUD Colonias Initiative (HCI), Fiscal

Year 1998

AGENCY: Office of the Assistant

Secretary for Community Planning and

Development, HUD.

ACTION: Notice of funding availability

(NOFA).

SUMMARY: This NOFA announces the

availability of $5 million for assistance

to organizations serving colonia

residents. Of this amount, up to $4

million will be provided to carry out

development projects in colonias. One

grant of $1 million may be provided to

one or more private intermediary

organization(s) (for profit and nonprofit)

that would provide capacity-building

loans, grants, or technical assistance to

local nonprofit organizations serving

colonias residents. This document sets

forth the application instructions for the

development grants and capacitybuilding grants made available under

the NOFA. As indicated in the body of

this NOFA, applicants may use either of

two definitions for the term ‘‘rural

county.’’

APPLICATION DUE DATES: Completed

applications (one original and two

copies) must be submitted no later than

12:00 midnight, Eastern time, on August

14, 1998, to the address shown below.

The above-stated application deadline is

firm as to date and hour. In the interest

of fairness to all applicants, HUD will

treat as ineligible for consideration any

application that is not received before

the application deadline. Applicants

should submit their materials as early as

possible to avoid any risk of loss of

eligibility because of unanticipated

delays or other delivery-related

problems. HUD will not accept, at any

time during the NOFA competition,

application materials sent by facsimile

(FAX) transmission.

ADDRESSES AND APPLICATION SUBMISSION

PROCEDURES: Addresses: Completed

applications (one original and two

copies) must be submitted to:

Department of Housing and Urban

Development, 451 Seventh Street, SW,

Room 7184, Washington, DC 20410;

ATTN: HUD Colonias Initiative.

Applications Procedures. Mailed

Applications. Applications will be

considered timely filed if postmarked

on or before 12:00 midnight on the

application due date and received at the

address above on or within five (5) days

of the application due date.

Applications Sent by Overnight/

Express Mail Delivery. Applications sent

by overnight delivery or express mail

will be considered timely filed if

received before or on the application

due date, or upon submission of

documentary evidence that they were

placed in transit with the overnight

delivery service by no later than the

specified application due date.

Hand Carried Applications. Hand

carried applications delivered before

and on the application due date must be

brought to the specified location and

room number between the hours of 8:45

am to 5:15 pm, Eastern time.

Applications hand carried on the

application due date will be accepted in

the South Lobby of the HUD

Headquarters Building at the above

address from 5:15 pm until 12:00

midnight, Eastern time.

FOR APPLICATION KITS, FURTHER

INFORMATION, AND TECHNICAL ASSISTANCE:

All information and materials required

to submit an application for funding

under the HUD Colonias Initiative are

included in the appendix to this notice.

For information concerning the HUD

Colonias Initiative, and technical

assistance, contact Yvette Aidara, Office

of Block Grant Assistance, Department

of Housing and Urban Development,

451 7th Street, SW, Room 7184,

Washington, DC 20410; telephone (202)

708–1322 (this is not a toll-free

number). Persons with speech or

hearing impairments may access this

number via TTY by calling the toll-free

Federal Information Relay Service at 1–

800–877–8339.

All program documents referred to in

this NOFA are accessible through HUD’s

web site at http://www.hud.gov.

SUPPLEMENTAL INFORMATION:

I. Authority; Definitions; Background;

Purpose; Amount Allocated; Eligibility

(A) Authority

Title II of the Departments of Veterans

Affairs and Housing and Urban

Development, and Independent

Agencies Appropriations Act, 1998

(Pub.L. 105–65, 111 Stat. 1357,

approved October 27, 1997) (FY 1998

HUD Appropriations Act).

(B) Definitions

Capacity-building is the transferring

of skills and knowledge in planning,

developing and administering activities

funded under this NOFA. For purposes

of this NOFA, capacity-building may

include provision of loans and grants as

well as training and technical assistance

activities.

Colonia means any identifiable

community that:

(a) Is located in the State of Arizona,

California, New Mexico, or Texas;

(b) Is located in the U.S.-Mexico

border region (that is, within 150 miles

of the border between the U.S. and

Mexico); and

(c) Meets objective criteria, including

lack of potable water supply, lack of

adequate sewage systems, and lack of

decent, safe, sanitary, and accessible

housing.

Although section 916(e)(4) of the

Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 5306(e)(4))

included the notation that a colonia

must have been in existence and

generally recognized as such prior to its

enactment, HUD recognizes that

additional identifiable colonias have

come into existence, in the near-decade

since the enactment, and are in need of

assistance to the same extent as older

colonias. These newer colonias are

eligible for assistance under this NOFA.

Rural County may be defined in either

of two ways:

(a) Bureau of the Census Definition. A

rural county is a place having fewer

than 2,500 inhabitants (within or

outside of metropolitan areas).

(b) Department of Agriculture’s Beale

Code Definition. A rural county is a

county with no urban population (i.e.,

city) of 20,000 inhabitants or more.

Visitability means at least one

entrance at grade (no steps), approached

by an accessible route such as a

sidewalk; the entrance door and all

interior passage doors provide a

minimum 2 feet 10 inches (34-inch)

clear opening. Allowing use of 2′10′′

doors is consistent with the Fair

Housing Act (at least for the interior

doors), and may be more acceptable

than requiring the 3 foot doors that are

required in fully accessible areas under

the Uniform Federal Accessibility

Standards for a small percentage of

units.

(C) Background

(1) Colonias eligible for assistance

under this NOFA are any of the severely

distressed, rural, unplanned,

predominantly unincorporated

settlements located along the 2,000 mile

United States-Mexico border. Due to a

lack of affordable housing in this area,

many colonias came into existence as a

result of developers selling unimproved

lots, to buyers with extremely limited

means, under high-interest bearing

contracts for deed (i.e., the developers

retain title to the land until the debt is

fully paid). Due to the nature of land

contract sales, buyers typically could

not secure mortgage-secured loans to

build standard housing. As a

consequence, they often constructed
Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices 38253

whatever limited dwellings or shelters

they could afford. Thus, most colonias

developed without regard to local

zoning or other laws or covenants,

adequate roads and drainage, and nonexistent water and/or sewer facilities.

The majority of housing in colonias is

sub-standard and not in accordance

with building codes.

(2) One response to these needs was

passage of Section 916 of the CranstonGonzalez National Affordable Housing

Act which required the States of

Arizona, California, New Mexico, and

Texas to set aside ten percent of their

Fiscal Year 1991 State Community

Development Block Grant allocations to

assist colonias. Subsequent years

required colonias to be assisted at up to

ten percent (California has been funded

at two percent), as determined by HUD

to be appropriate. Texas, with the

largest population of colonia residents,

accounts for approximately two-thirds

of the set-aside in any given year.

(3) Due to the limited State CDBG

colonias set-asides in relation to the

overwhelming needs, funding has

generally been given to infrastructure

activities, with special consideration to

water and sewer services. The provision

of housing has not been a primary focus

of the limited CDBG funds available to

colonias. This current initiative, in an

effort to address the continuing need for

decent, safe, sanitary, and accessible

housing for colonias residents, is

designed to encourage the production of

decent, safe, sanitary, and accessible

affordable housing for colonia residents.

(D) Purpose

The FY 1998 HUD Appropriations Act

provided $25 million to test

comprehensive approaches to

developing a job base through economic

development, developing affordable

low- and moderate-income rental and

homeownership housing, and increasing

the investment of both private and

nonprofit capital in rural and tribal

areas of the US. Of that amount, $5

million has been targeted for this

initiative to support assistance to

organizations administering projects to

address the housing needs of colonia

residents in rural areas. HUD anticipates

making grants totaling $4 to 5 million to

address housing needs in the four

border States where colonias are found

(California, Arizona, New Mexico, and

Texas). Of the $5 million, $1 million

may be provided to one or more private

intermediary organization(s) (for profit

and nonprofit) that would provide

capacity-building loans, grants, or

technical assistance to local nonprofit

organizations serving colonia residents.

The intermediary organization would

demonstrate experience in providing

technical assistance in housing

development to colonias or areas with

similar economic and social conditions

that exist in colonias and the capacity

to administer a program to increase the

capacity of colonia-based organizations

to address local housing needs.

(E) Amounts Allocated

This NOFA makes available a total of

$5 million in FY 1998 funding. Of this

amount, HUD expects to allocate a total

of $4 to 5 million for programs

administered by competitively selected

grantees in each of the four colonias

border states. It is expected that

applicants serving colonias residents in

the State of Texas will receive a greater

portion of the funds available under this

NOFA since Texas has the largest

population of colonia residents. Based

on final negotiations of budgets and

project plans, the Department reserves

the right to award grants of up to

$800,000 per applicant in each of the

four states. The Department also

reserves the right to provide multiple

grants in each state, with multiple

awards likely in Texas.

Additionally, of the total $5 million

available, HUD may award up to $1

million to one or more private

organizations (for profit and nonprofit)

for the purpose of building capacity

among locally-based nonprofit

organizations meeting the affordable

housing needs of colonia residents.

Preference will be given to applicants

with the ability to serve the broadest

area of the colonias region, and with the

ability to serve colonia residents with

disabilities. Note that if there are

insufficient fundable applications for

the capacity-building competition (i.e.,

scoring a minimum of 70 points), HUD

reserves the right to shift the balance

(including up to the full $1 million) to

the housing development category to

allow full utilization of the funding

targeted for this initiative.

(F) Eligible Applicants/Recipients

Private (for profit and nonprofit)

entities currently providing assistance

to and for residents of colonias,

including in any of the four colonia

States (Arizona, California, New

Mexico, and Texas) are eligible to apply

for funds under the development

activities portion of this NOFA to

undertake activities within their

respective States. Private (for profit and

nonprofit) with the ability to provide

capacity-building resources and

technical assistance to locally-based

nonprofit organizations serving colonias

in the four-State colonias region are

eligible to compete for the capacitybuilding funds. For-profit organizations

are eligible to apply for funding under

this NOFA with the stipulation that

compensation be provided in

accordance with Federal procurement

guidelines (i.e., payment will be on a

cost reimbursement basis without

profit).

(G) Eligible Activities

(1) General. HUD Colonias Initiative

(HCI) funds are to be used to address the

housing and related needs of residents

of colonias. The Department is

especially interested in supporting selfhelp housing construction,

homeownership opportunities, and

rehab of units (where rehab is a viable

alternative to new construction) for

current residents of colonias. In

undertaking activities under this NOFA,

applicants must comply with applicable

provisions of the Americans with

Disabilities Act and should design

construction, rehabilitation or

modifications to buildings and facilities

to be accessible and visitable for persons

with disabilities and others who may

also benefit, such as mothers with

strollers or persons delivering

appliances. In providing technical

assistance and other educational

opportunities, training and

informational materials related to

program activities should be made

available in languages appropriate to the

residents served or in video or audio

formats. Use of intermediaries and

collaborative partnerships, to the

greatest extent possible, and leveraging

of the funds provided under this NOFA

to achieve the maximum positive

impact is encouraged.

(2) Primary Activities. It is expected

that the majority of funding for each

proposed project will be budgeted for

the following primary housing activities

that will result in decent, safe, sanitary,

and accessible affordable housing:

(a) New housing construction,

including self-help, energy-efficient and

innovative housing design initiatives.

Housing may be single- or multi-family,

owner- or renter-occupied;

(b) Self-help construction training for

residents and prospective owners/

tenants;

(c) Homeownership assistance;

(d) Rehabilitation of existing

permanent housing structures to meet

local codes;

(e) Construction of additions onto

existing permanent housing structures,

such as to provide for bathroom

facilities or to reduce overcrowding,

where cost-effective;

(f) Installation of water wells or septic

systems for individual permanent

housing structures;
38254 Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices

(g) Refinancing of existing landowner/

homeowner debt to convert contractsfor-deed into mortgages;

(h) Acquisition of land from existing

owners or deed-holders, for resale to

colonias residents;

(i) Surveying and replatting of

existing subdivisions;

(j) Acquisition of land, relocation

payments to residents and costs of

developing new subdivisions, where

existing development sites have been

determined to be legally or

environmentally inappropriate for

habitation; and

(k) Tenant-based assistance.

(3) Other Related Activities to Support

Housing Development. Applicants may

propose other activities (public

improvements, economic development,

public services, administrative costs),

that directly support the housing

activities listed above, providing such

activities do not constitute more than

thirty percent (30%) of the budget in the

aggregate, and clearly support and serve

the same general population as the

housing activities. Such activities may

include:

(a) Construction of publicly- or

privately-owned utilities needed to

serve the housing site(s) for which

primary activities are funded, such as

water supply/distribution systems,

sewage collection/treatment systems,

electricity or gas distribution lines;

(b) Construction of public facilities

such as libraries, parks and recreation

centers, fire stations (including

purchase of fire trucks and other

equipment), or community centers;

(d) Provision of financial or technical

assistance to start or expand businesses,

for purposes of creating jobs or

providing goods or services for colonias

residents living in or near the proposed

housing site(s);

(e) Funding microenterprise

assistance programs to enable colonias

residents to start their own businesses

or to expand existing businesses;

(f) Provision of public services which

are directly supportive of the housing

activities proposed, including but not

limited to legal assistance, housing

counseling, classes on purchasing a

home, home maintenance and repair

training, tenant services, education,

health services, recreation programs,

day care, transportation services, or

costs of operating recreation centers,

libraries or community centers; and

(g) Recipient costs of administering

the funding and carrying out of

activities, to the extent allowed at 24

CFR part 84, but at a rate not to exceed

10% of the funds provided.

(4) Capacity-Building Funds.

Applicants for Capacity-Building funds

(not to exceed $1 million) will provide

loans, grants or technical assistance to

regionally or locally-based nonprofit

organizations working in colonias to

meet housing and related needs. The

nonprofit organizations may use the

assistance for:

(a) Provision of planning, training,

and pre-development assistance to

existing nonprofit organizations to

expand their scope of expertise, to

implement larger-scale projects, and/or

enhance existing projects;

(b) Self-help assistance, including

skill in fiscal management, for colonias

residents;

(c) Dissemination of capacity-building

information and citizen participation

activities; and

(d) Coordination of existing resources

to maximize housing or economic

opportunities funded under the

provisions of this NOFA.

(H) Ineligible Activities

The following activities are not

eligible for funding under this NOFA:

(1) Acquisition, construction or

rehabilitation of buildings for the

general conduct of government, such as

city halls, county courthouses, county

jails, etc.;

(2) General government expenses

required to carry out the regular

responsibilities of a unit of general local

government;

(3) Political activities; and

(4) Provision of technical assistance to

staff of award recipients.

II. Program Requirements

(A) 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).

(B) Additional Nondiscrimination

Requirements

Applicants must also comply with the

Americans with Disabilities Act, and

Title IX of the Education Amendments

Act of 1972.

(C) Affirmatively Furthering Fair

Housing

Recipients will have a duty to

affirmatively further fair housing.

Applicants should include in their work

plan the specific steps that they will

take to (1) address the elimination of

impediments to fair housing that were

identified in the jurisdiction’s Analysis

of Impediments (AI) to Fair Housing

Choice; (2) remedy discrimination in

housing; or (3) promote fair housing

rights and fair housing choice. Further,

applicants have a duty to carry out the

specific activities cited in their

responses to the Factors for Award that

address affirmatively furthering fair

housing.

(D) Economic Opportunities for Low and

Very Low-Income Persons (Section 3)

Recipients of HUD assistance must

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.

(E) Relocation

Any person (including individuals,

partnerships, corporations or

associations) who moves from real

property or moves personal property

from real property as a direct result of

a written notice to acquire or the

acquisition of the real property, in

whole or in part, for a HUD-assisted

activity is covered by acquisition

policies and procedures and the

relocation requirements of the Uniform

Relocation Assistance and Real Property

Acquisition Policies Act of 1970, as

amended (URA), and the implementing

governmentwide regulation at 49 CFR

part 24. Any person who moves

permanently from real property or

moves personal property from real

property as a direct result of

rehabilitation or demolition for an

activity undertaken with HUD

assistance is covered by the relocation

requirements of the URA and the

governmentwide regulation.

(F) OMB Circulars

The policies, guidances, and

requirements of OMB Circular No. A–

122 (Cost Principles for Nonprofit

Organizations) and 24 CFR part 84

(Grants and Agreements with

Institutions of Higher Education,

Hospitals, and other Non-Profit

Organizations) apply to the award,

acceptance and use of assistance under

this NOFA, and to the remedies for

noncompliance, except when

inconsistent with the provisions of the

FY 1998 HUD Appropriations Act, other

Federal statutes or the provisions of this

NOFA. Copies of the OMB Circular may
Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices 38255

be obtained from EOP Publications,

Room 2200, New Executive Office

Building, Washington, DC 10503,

telephone (202) 395–7332 (this is not a

toll free number).

(G) Conflicts of Interest

Consultants or experts assisting HUD

in rating and ranking applicants for

funding under this NOFA are subject to

18 U.S.C. 208, the Federal criminal

conflict of interest statute, and to the

Standards of Ethical Conduct for

Employees of the Executive Branch

regulation published at 5 CFR part 2635.

As a result, individuals who have

assisted or plan to assist applicants with

preparing applications for this NOFA

may not serve on a selection panel or as

a technical advisor to HUD for this

NOFA. All individuals involved in

rating and ranking this NOFA, including

experts and consultants, must avoid

conflicts of interest or the appearance of

conflicts. If the selection or nonselection of any applicant under this

NOFA affects the individual’s financial

interests set forth in 18 U.S.C. 208 or

involves any party with whom the

individual has a covered relationship

under 5 CFR 2635.502, that individual

must, prior to participating in any

matter regarding this NOFA, disclose

this fact to the General Counsel or the

Ethics Law Division.

(H) Eligible Populations to be Served

The HCI is designed to serve colonias

in rural areas in the States of Arizona,

California, New Mexico, and Texas. See

definitions of ‘‘colonias’’ and ‘‘rural

county’’ above.

(I) Grant Amounts

In the event an applicant is awarded

an HCI grant that has been reduced (e.g.

the application contained some

activities that were ineligible or budget

information did not support the

request), the applicant will be required

to modify its project plans and

application to conform to the terms of

HUD’s approval before execution of a

grant agreement. HUD reserves the right

to reduce or de-obligate the HCI award

if approvable modifications to the

proposed project are not submitted by

the awardee in the required amounts in

a timely manner. Any modifications

must be within the scope of the original

HCI application. HUD reserves the right

not to make awards under this NOFA.

(J) Grant Period

Recipients will have 36 months from

the date of funding award to complete

all project activities except the final

evaluation and reporting, fulfillment of

audit requirements and final project

close-out.

(K) Leveraging of Other Resources

(1) A key component of the HCI is the

leveraging of other sources of capital to

significantly expand the scope of

accomplishments to be realized with

this funding.

(2) Potential recipients must

demonstrate the commitment of

additional resources to support their

proposed projects. Sources of this other

funding can be other public (Federal,

State or local) agencies, private funding

or internal resources. In-kind services,

‘‘sweat equity’’ and commitments of

funds for activities which are already

being implemented may be counted

toward the leveraging requirements.

Funding for which commitments were

received prior to publication of this

NOFA may be counted, provided that

the commitment is still valid, is for the

project activities proposed, and that

implementation of the activity had not

yet begun. Final negotiation of budgets

and implementation schedules may be

conditioned upon evidence that

leveraging requirements have been met.

(L) Negotiations

After all applications have been rated

and ranked and a selection has been

made, HUD may require that awardees

participate in negotiations to determine

the specific tasks and grant budget.

Where a specific area or one or more

specific sites for project activities are

identified in an application or during

negotiations, HUD may undertake and

complete its environmental review

during negotiations. In cases where

HUD cannot successfully conclude

negotiations or a selected applicant fails

to provide HUD with requested

information, or if the reduced amount of

funding makes the project infeasible,

awards will not be made. In such

instances, HUD will offer an award to

the next highest ranking applicant and

proceed with negotiations with that next

highest ranking applicant.

(M) Adjustments to Funding

(1) HUD reserves the right to fund less

than the full amount requested in any

application to ensure the purpose of the

initiative is met. HUD may not fund

portions of the applications that are

ineligible for funding under applicable

program statutory or regulatory

requirements, or which do not meet the

requirements of this NOFA, but may

fund eligible portions of the

applications.

(2) If funds remain after funding the

highest ranking applications in each

State, HUD may fund part of the next

highest ranking application in the same

category (i.e., development or capacitybuilding). If the applicant turns down

the award offer, or if the project is not

feasible at the proposed funding level,

HUD will make the same determination

for the next highest ranking applications

in each category.

(N) Environmental Review

Selection for award does not

constitute approval of any proposed

sites. Following selection for award,

HUD will perform an environmental

review of activities proposed for

assistance under this part, in accordance

with 24 CFR part 50. The results of the

environmental review may require that

proposed activities be modified or that

proposed sites be rejected. Applicants

are particularly cautioned not to

undertake or commit funds for

acquisition or development of proposed

properties prior to HUD approval of

specific properties or areas. Each

application shall contain an assurance

that the applicant will assist HUD to

comply with part 50; will supply HUD

with all available, relevant information

to perform an environmental review for

each proposed property; will carry out

mitigating measures required by HUD or

select alternate property; and will not

acquire, rehabilitate, convert, lease,

repair or construct property, nor commit

HUD or local funds for these program

activities with respect to any eligible

property, until HUD approval of the

property is received.

III. Application Selection Process

(A) Rating and Ranking

(1) General. To review and rate

applications, HUD may establish panels

including outside experts or consultants

to obtain certain expertise and outside

points of view, including views from

other Federal agencies. A total of 100

points is possible. For the capacitybuilding category, a minimum score of

70 points must be achieved to be

considered for funding.

(2) Rating. All applicants for funding

under this NOFA will be evaluated

against the criteria below. The rating of

the ‘‘applicant’’ or the ‘‘applicant’s

organization and staff’’ for technical

merit or threshold compliance, unless

otherwise specified, will include any

sub-contractors, consultants, subrecipients, and members of consortia

which are firmly committed to the

project.

(3) Ranking. Applicants will be

ranked within each of the two set-aside

program areas: housing development

activities and capacity-building.

Applicants will be ranked only against
38256 Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices

others in the separate set-aside program

areas. Once scores are assigned, all

applications will be ranked in order of

points assigned, with the applications

receiving more points ranking above

those receiving fewer points. The

highest ranking applications in each

State area will be funded; the highest

ranking capacity-building application

will be funded, provided it has achieved

a score of at least 70 points. As noted

above, if the highest ranking application

in the capacity-building category may be

funded at an amount less than $1

million, additional grants may be made

to the extent funds and fundable

applicants remain.

(4) If HUD determines that an

application rated, ranked and fundable

could be funded at a lesser HCI grant

amount than requested consistent with

feasibility of the funded project or

activities and the purposes of this

NOFA, HUD reserves the right to reduce

the amount of the HCI grant award and

fund the next ranking application in

that State if sufficient funds remain to

undertake a feasible project in the scope

of that application. Any remaining

amounts may be pooled to fund the next

highest ranked application in any of the

four states.

(B) Threshold Requirements

HUD will review each application to

determine whether the application

meets all of the threshold criteria

described for program funding made

available under this NOFA.

Applications that meet the threshold

criteria will be eligible to be rated and

ranked, based on the criteria described,

and the total number of points to be

awarded. The threshold criteria are:

(1) An applicant must be a private forprofit or nonprofit entity organized

according to State law where situated.

(2) 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; (c)

has received a letter of noncompliance

findings under Title VI of the Civil

Rights Act or Section 504 of the

Rehabilitation Act; or (d) has been

debarred, the applicant is not eligible to

apply for funding under this NOFA

until the applicant resolves such charge,

lawsuit, letter of findings, or debarment

to the satisfaction of the Department.

(C) Narrative Statement

Each applicant shall provide: (1) a

narrative statement describing the

activities that will be carried out with

the HCI grant funds; and (2) an

explanation of how the use of HCI grant

funds meets the rating factors identified

below. The description of activities

should include a statement of how the

proposed uses of HCI funds will meet

the objectives of this initiative. The

application as a whole (narrative and

responses to the Factors for Award,

below) shall not exceed 25 8.5′′ by 11′′

pages. Applicants may also submit

videotapes and/or photographs of the

area or neighborhood that would be

assisted by grant funds under this

NOFA. The applicant must indicate

which factor(s) the photographs and/or

video tapes address.

(D) Factors for Award

All applicants will be considered for

selection based on the following factors

that demonstrate the need for the

proposed project or activities, and the

applicant’s creativity, capacity and

commitment to provide the maximum

benefit to the residents of the colonias

areas served and the extent to which the

proposed project will increase the

supply of decent, safe, sanitary, and

accessible affordable housing in

colonias. The maximum points awarded

for the factors total 100.

Rating Factor 1: Capacity of the

Applicant and Relevant Organizational

Staff (20 points).

This factor addresses the applicant’s

organizational experience in

administering similar types of funding,

and the demonstrated capacity to carry

out the proposed activities. Applicants

must demonstrate previous relevant

experience working in colonias. When

responding to this factor, the applicant

should identify the number of projects

undertaken, the type of project, and the

number of units of affordable housing

developed, as applicable. The response

should include a discussion of how

housing units were made affordable for

low-income persons. The rating of the

applicant or the applicant’s organization

and staff for technical merit will include

any faculty, subcontractors, consultants,

subrecipients, and members of consortia

which are firmly committed (i.e. has a

written agreement or a signed letter of

understanding with the applicant

agreeing in principle to its participation

and role in the project). HUD will also

consider past performance in carrying

out HUD-funded or other projects,

including projects similar in size and

scope to the project proposed, and the

extent to which projects encourage and

incorporate collaborative and

partnership relationships in serving

colonia residents.

Rating Factor 2: Need/Extent of the

Problem (20 points).

This factor addresses the extent of

colonia need(s) for housing, including

accessible housing, and related

investments, including a description of

physical and social conditions. In

applying this factor, HUD will consider

current levels of distress in the

immediate community to be served by

the project. Level of distress will be

indicated most directly by data on the

size and condition of the existing

housing stock, homeownership and land

tenure, availability of housing finance,

and rental assistance need. Additional

indicators of distress may include:

infrastructure and community facility

needs, education and employment of

residents, and the need for legal or other

assistance. HUD requires that applicants

use sound, reliable and verifiable data to

support the level of distress claimed in

the application.

Rating Factor 3: Soundness of

Approach (40 points).

This factor addresses the

appropriateness and effectiveness of the

proposed activities in substantially

addressing identified needs. HUD will

consider the extent to which the plan is

logical, feasible, and substantially likely

to achieve its stated purpose and

provides benchmarks to measure actual

increase in the number of decent, safe,

sanitary, and accessible affordable

housing units. HUD’s desire is to fund

projects and activities which will

quickly produce demonstrable results

and advance the public interest

including the number of colonia

residents to be assisted and the impact

of the projects and activities on the

distress factors indicated by the

applicant’s response to Factor 2. An

applicant must demonstrate that it has

an understanding of the steps required

to implement its project, the actions that

it and others responsible for

implementing the project must complete

and shall include a reasonable time

schedule for carrying out the project. In

considering this factor, HUD will take

into account the cost per unit for

construction or rehab of housing units.

Rating Factor 4: Financial Feasibility/

Leveraging Resources (20 points).

This factor addresses the extent to

which the proposed project will

leverage the use of other public and

private financial resources to provide a

fiscally sound project. A minimum ratio

of RDDC funds in any project is not

specified. However, applicants that have

the greatest ratio of other funds or inkind services to RDDC funds will

receive a greater number of points for

leveraging resources. Documentation of

funds pledged and in-kind services to be

provided must be submitted with the

application to be considered. This

documentation might include letters of

financial commitment or verifiable

evidence of other loan or grant
Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices 38257

assistance to address the housing

development needs of the colonia

project area and residents. Also

considered in determining the points for

this factor must be the extent to which

project costs (as evidenced by a

complete budget-by-task) are reasonable

and financially feasible.

IV. Application Submission

Requirements

The application must include an

original and two copies of the items

listed below:

(A) Transmittal letter from applicant;

(B) Table of contents;

(C) A signed SF–424 (application

form);

(D) A narrative statement as described

above;

(E) Responses to each of the Factors

for Award;

(F) Written agreements or signed

letters of understanding in support of

Rating Factor 1: ‘‘Capacity of the

Applicant and Relevant Organizational

Staff’’;

(G) Documentation of funds pledged

in support of Rating Factor 4: ‘‘Financial

Feasibility/Leveraging Resources’’;

(H) A budget-by-task to accompany

Factor 4;

(I) Required certifications (signed, as

appropriate, and attached as an

appendix); and

(J) Acknowledgment of Application

Receipt form (submitted with

application and returned to applicant as

verification of timely receipt).

V. Corrections to Deficient Applications

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 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 mail. Applicants must

submit clarifications or corrections of

technical deficiencies in accordance

with the information provided by HUD

within 7 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.

VI. Findings and Certifications

(A) Paperwork Reduction Act Statement

The information collection

requirements contained in this NOFA

have been submitted to the Office of

Management and Budget (OMB) for

approval in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501–3520). The OMB approval

number, once assigned, will be

published in the Federal Register. An

agency may not conduct or sponsor, and

a person is not required to respond to,

a collection of information unless the

collection displays a valid control

number.

(B) Environmental Impact

A Finding of No Significant Impact

with respect to the environment has

been made in accordance with HUD

regulations at 24 CFR part 50,

implementing section 102(2)(C) of the

National Environmental Policy Act of

1969 (42 U.S.C. 4332). The Finding of

No Significant Impact is available for

public inspection during business hours

in the Office of the Rules Docket Clerk,

Room 10276, Department of Housing

and Urban Development, 451 Seventh

Street, SW, Washington, DC 20410–

0500.

(C) 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 NOFA 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.

(D) 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 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. HUD will comply with the

documentation, public access, and

disclosure requirements of section 102

with regard to the 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 at 24 CFR part 15. In

addition, HUD will include the

recipients of assistance pursuant to this

NOFA in its Federal Register notice of

all recipients of HUD assistance

awarded on a competitive basis.

(2) Disclosures. HUD will make

available to the public for 5 years all

applicant disclosure reports (HUD Form

2880) submitted in connection with this

NOFA. Update reports (also Form 2880)

will be made available along with the

applicant disclosure reports, but in no

case for a period less than 3 years. All

reports—both applicant disclosures and

updates—will be made available in

accordance with the Freedom of

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

HUD’s implementing regulations at 24

CFR part 15.

(E) Section 103 HUD Reform Act

HUD will comply with section 103 of

the Department of Housing and Urban

Development Reform Act of 1989 and

HUD’s implementing regulations in

subpart B of 24 CFR part 4 with regard

to the funding competition announced

today. These requirements continue to

apply until the announcement of the

selection of successful applicants. HUD

employees involved in the review of

applications and in the making of

funding decisions are limited by section

103 from providing advance information

to any person (other than an authorized

employee of HUD) concerning funding

decisions, or from otherwise giving any

applicant an unfair competitive

advantage. Persons who apply for

assistance in this competition should

confine their inquiries to the subject

areas permitted under section 103 and

subpart B of 24 CFR part 4.

Applicants or employees who have

ethics related questions should contact

the HUD Office of Ethics (202) 708–

3815. (This is not a toll-free number.)
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(F) 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 at 24 CFR

part 87, prohibits applicants for Federal

contracts and grants from using

appropriated funds to attempt to

influence Federal executive or

legislative officers or employees in

connection with obtaining such

assistance, or with its extension,

continuation, renewal, amendment, or

modification. The Byrd Amendment

applies to the funds that are the subject

of this NOFA. Therefore, applicants

must file a certification stating that they

have not made and will not make any

prohibited payments and, if any

payments or agreement to make

payments of nonappropriated funds for

these purposes have been made, a form

SF–LLL disclosing such payments must

be submitted. The certification and the

SF–LLL are included in the application.

The Lobbying Disclosure Act of 1995

(Pub. L. 104–65; approved December 19,

1995), which repealed section 112 of the

HUD Reform Act, 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: July 10, 1998.

Saul N. Ramirez, Jr.,

Assistant Secretary for Community Planning

and Development.

Appendix—Checklist, Forms and

Certifications

Page No.

lll 1. Transmittal Letter

lll 2. Checklist and Submission Table of

Contents

lll 3. Standard Form for Application for

Federal Assistance (SF–424)

lll 4. Narrative Statement

lll 5. Response to Factors for Award

lll 6. Written Agreements/Signed Letters

of Understanding in Support of Rating

Factor 1

lll 7. Budget-by-Task and Benchmarks in

Support of Rating Factor 3

lll 8. Documentation of Funds/In-Kind

Services Pledged in Support of Rating

Factor 4

lll 9. Required Certifications (signed)

lll a. Certification for a Drug-Free

Workplace (HUD–50070)

lll b. Certification of Payments to

Influence Federal Transactions (HUD–

50071) (See 24 CFR part 87, Appendix A)

lll c. If required, Disclosure of

Lobbying Activities (SF–LLL) (See 24

CFR part 87, Appendix B)

lll d. Applicant/Recipient Disclosure/

Update Report (HUD–2880)

lll e. Applicant Nondiscrimination

Certifications

lll f. Certification Regarding

Debarment & Suspension (HUD–2992)

lll 10. Acknowledgement of Application

Receipt (to be returned to applicant)

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[FR Doc. 98–18932 Filed 7–13–98; 11:31 am]

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