10452 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Office of the Assistant Secretary for

Public and Indian Housing

[Docket No. N–95–3870; FR–3798–N–01]

Community Development Block Grant

Program for Indian Tribes and Alaska

Native Villages; Notice of Fund

Availability

AGENCY: Office of the Assistant

Secretary for Public and Indian

Housing, HUD.

ACTION: Notice of Fund Availability for

Fiscal Year 1995.

SUMMARY: This Notice of Fund

Availability (NOFA) announces HUD’s

funding for the Community

Development Block Grant Program for

Indian Tribes and Alaska Native

Villages (hereafter referred to as the

ICDBG Program) for Fiscal Year 1995. In

the body of this document is

information concerning the following:

(a) The purpose of the NOFA, and

information regarding eligibility,

available amounts, and selection

criteria;

(b) Application processing, including

how to apply and how selections will be

made; and

(c) A checklist of steps and exhibits

involved in the application process.

DATES: Applications must be received

by the appropriate field office of the

HUD Office of Native American

Programs (ONAP) no later than 3:00

P.M. May 14, 1995. Application

materials will be available from each

field office. General program questions

may be directed to the field office

serving your area or by contacting Dom

Nessi, Office of Native American

Programs, Office of Public and Indian

Housing, Department of Housing and

Urban Development, Room B–133, 451

Seventh Street SW, Washington, DC

20410. Telephone (202) 755–0068. The

Telecommunications Device for the Deaf

(TDD) number is (202) 708–0850. (These

are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Requirements

The information collection

requirements contained in this Notice

have been approved by the Office of

Management and Budget, under section

3504(h) of the Paperwork Reduction Act

of 1980 (44 U.S.C. 3501–3520), and have

been assigned OMB control number

2506–0043.

Table of Contents

I. Purpose and Substantive Description

(a) Authority

(b) Funding

(c) Eligible Activities

(d) Applicant Eligibility

(e) Screening for Acceptance

(f) Application Review Process Description

(g) Overall thresholds

1. Applicant-Specific Thresholds—

Capacity and Performance

A. Capacity

B. Performance

2. Community Development

Appropriateness

A. Costs are Reasonable

B. The Project is Appropriate for the

Intended Use

C. Project is Usable/Achievable within

Two Years

(h) General definitions

(i) Project definitions, thresholds and

selection criteria

1. Housing

A. Threshold for all housing category

projects

B. Rehabilitation

(1) Thresholds

(2) Grant Limits

(3) Selection Criteria

a. Project Need and Design

b. Planning and Implementation

c. Leveraging

C. Land to Support New Housing

(1) Thresholds

(2) Selection Criteria

a. Project Need

b. Planning and Implementation

D. New Housing Construction/Direct

Home Ownership Assistance

(1) Thresholds

(2) Selection Criteria

a. Project Need and Design

b. Planning and Implementation

c. Leveraging

2. Community Facilities

A. Infrastructure

(1) Selection Criteria

a. Project Need and Design

b. Planning and Implementation

c. Leveraging

B. Buildings

(1) Thresholds

(2) Selection Criteria

a. Project Need and Design

b. Planning and Implementation

c. Leveraging

3. Economic Development

(A) Thresholds

(B) Selection Criteria

(1) Organization

(2) Project Success

(3) Leveraging

(4) Permanent Full time Job Creation and

Training

(5) Additional Considerations

4. Selection System Criteria and Point

Award Summary

II. Application Process

III. Application Submission Requirements

and Checklist

IV. Procedural Error and Appeals

V. Other Matters

(a) Federalism Executive Order

(b) Family Executive Order

(c) Registration of Consultants

(d) Prohibition of Advance Disclosure of

Funding Decisions

(e) Economic Opportunities for Low and

Very Low Income Persons

I. Purpose and Substantive Description

(a) Authority

Title I, Housing and Community

Development Act of 1974, as amended

(42 U.S.C. 5301 et seq.); sec. 7(d) of the

Department of Housing and Urban

Development Act (42 U.S.C. 3535(d)); 24

CFR part 953.

(b) Funding

Amendments to Title I of the Housing

and Community Development Act of

1974 have required that the allocation

for Indian Tribes be on a competitive

basis in accordance with selection

criteria contained in a regulation

promulgated by the Secretary after

notice and public comment. The interim

regulation containing the selection

criteria was issued July 27, 1994, and is

published in the Federal Register at 59

FR 38326. All grant funds awarded in

accordance with this NOFA are subject

to the requirements of 24 CFR Part 953.

Documentation and Public Access

Requirements; Applicant/Recipient

Disclosures: HUD Reform Act

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 five-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. (See 24

CFR 12.14(a) and 12.16(b), and the

notice published in the Federal Register

on January 16, 1992 (57 FR 1942), for

further information on these

documentation and public access

requirements.)

Disclosures. HUD will make available

to the public for five 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 three 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
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10453

CFR part 15. (See 24 CFR part 12

subpart C, and the notice published in

the Federal Register on January 16,

1992 (57 FR 1942), for further

information on these disclosure

requirements.)

1. Allocations. The requirements for

allocating funds to field offices

responsible for program administration

are found at 24 CFR 953.101. Following

these requirements, the allocation for

FY 1995 is as follows:

Eastern Woodlands .................. $3,577,545

Southern Plains ....................... 8,322,000

Northern Plains ........................ 7,028,048

Southwest ................................. 19,008,484

Northwest ................................. 2,751,491

Alaska ....................................... 3,812,432

Total .................................. 44,500,000

The total FY 1995 ICDBG allocation is

$46,000,000. As indicated in Section

I(b)3 below, $1,500,000 has been

retained to fund Imminent Threat

grants.

2. Grant Ceilings. The authority to

establish grant ceilings is found at 24

CFR 953.100(b)(1). Grant ceilings are

established for FY 1995 funding at the

following levels:

Field offices Population Ceiling

Eastern Woodlands .............................................................................................................................................. ALL $300,000

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

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

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

10,501–50,000 2,500,000

9,001–10,000 2,000,000

7,501–9,000 1,500,000

6,001–7,500 1,000,000

4,501–6,000 750,000

3,001–4,500 650,000

1,501–3,000 550,000

1–1,500 450,000

Northwest ............................................................................................................................................................. ALL 320,000

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

3. Imminent Threats

The criteria for grants to alleviate or

remove imminent threats to health or

safety that require an immediate

solution are described at 24 CFR part

953, subpart E. In accordance with the

provisions of that subpart, $1,500,000 is

being retained to meet the funding

needs of imminent threat applications

submitted to any of the field offices. The

grant ceiling for imminent threat

applications for FY 1995 is

350,000. This ceiling is established

pursuant to the requirements of 24 CFR

953.100(c).

(c) Eligibility of Activities

Activities that are eligible for ICDBG

funds are identified at 24 CFR part 570

subpart C, as modified by 24 CFR part

953 subpart C. Both the National

Affordable Housing Act (NAHA) (P.L.

101–625) and the Housing and

Community Development Act of 1992

(the 1992 Act) (P.L. 102–550) amended

Title I of the Housing and Community

Development Act of 1974 (HCD Act).

Various amendments made by these two

acts are applicable.

(d) Applicant Eligibility

To apply for funding in a given fiscal

year, an applicant must be eligible as an

Indian Tribe or Alaska Native Village (or

as a tribal organization) by the

application submission date.

Tribal organizations are permitted to

submit applications under 24 CFR

953.5(b) on behalf of eligible tribes or

villages when one or more eligible

tribe(s) or village(s) authorize the

organization to do so under concurring

resolutions. As is stated in this

regulatory section, the tribal

organization must itself be eligible

under Title I of the Indian SelfDetermination and Education

Assistance Act.

If a tribe or tribal organization claims

that it is a successor to an eligible entity,

the field office must review the

documentation to determine whether it

is in fact the successor entity.

Due to the unique structure of tribal

entities eligible to submit ICDBG

applications in Alaska, and as only one

ICDBG application may be submitted for

each area within the jurisdiction of an

entity eligible under 24 CFR 953.5, a

Village Corporation, Regional

Corporation or Tribal Organization

which submits an application for

activities in the jurisdiction of one or

more eligible tribes or villages, must

include a concurring resolution from

each such tribe or village authorizing

the submittal of the application. Each

such resolution must also indicate that

the tribe or village does not itself intend

to submit an ICDBG application for that

funding round. The hierarchy for

funding priority continues to be the IRA

Council, the Traditional Village

Council, the Village Corporation and the

Regional Corporation.

On October 21, 1993, the Bureau of

Indian Affairs (BIA) published a Federal

Register Notice entitled ‘‘Indian Entities

Recognized and Eligible to Receive

Services From the United States Bureau

of Indian Affairs’’. This Notice provides

a listing of Indian Tribal Entities in

Alaska found to be Indian Tribes as the

term is defined and used in 25 CFR 83.

Additionally, pursuant to Title I of the

Indian Self-Determination and

Education Assistance Act, ANCSA

Village Corporations and Regional

Corporations are also considered tribes

and therefore eligible applicants for the

ICDBG program.

Any questions regarding eligibility

determinations and related

documentation requirements for entities

in Alaska should be referred to the

Alaska field office prior to the deadline

for submitting an application. (See 24

CFR 953.5 for a complete description of

eligible applicants.)

(e) Screening for Acceptance

Each field office will initially screen

applications for single purpose grants.

Applications failing this initial

screening shall be rejected and returned

to the applicants unrated. Field offices

will accept applications if all the criteria

listed below as items 1. through 6. are

met:

1. The application is received by the

appropriate field office no later than

3:00 p.m. on the deadline date.

2. The applicant is eligible;

3. The proposed activities are eligible;

4. The application contains

substantially all the components

specified in Section III of this notice;

and

5. At least 70% of the grant funds are

to be used for activities that benefit low

and moderate income persons, in

accordance with the requirements of 24

CFR 953.201(a).
10454 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

6. The application is for an amount

which does not exceed the grant ceilings

that are established by the NOFA.

(f) Application Review Process

Description

1. Threshold review. The field office

will review each application that passes

the initial screening process to ensure

that each applicant and each proposed

project meets the applicable threshold

requirements set forth in 24 CFR

953.302(a), as implemented by this

NOFA. If an applicant fails to meet any

of the applicant-specific thresholds, its

application cannot be accepted for

rating and ranking. Project(s) that do

not meet the community development

appropriateness or applicable projectspecific thresholds will not be

considered for funding.

2. All projects that meet the

acceptance criteria and threshold

requirements will be reviewed and rated

by a field office rating team of at least

three voting members. The field office

will examine each project to determine

in which one of the three rating

categories set forth in 24 CFR 953.303

through 24 CFR 953.305 the project

most appropriately belongs. The project

will be rated on the basis of the criteria

identified in the rating category

component to which the project has

been assigned. The total of points for a

rating component is 100, which is the

maximum any project can receive.

3. Public service projects. Due to the

statutory 15 percent cap on public

services activities, applicants may not

receive single purpose grants solely to

fund public services activities.

However, any application may contain a

public services component for up to 15

percent of the total grant. This

component may be unrelated to the

application’s other project(s). If an

application does not receive full

funding, the public services allocation

will be proportionately reduced to

comprise no more than 15 percent of the

total grant award.

4. Corrections to deficient

applications and supplemental

information. HUD will not accept

unsolicited information regarding the

application after the application

deadline has passed. The field office

will advise applicants of technical

deficiencies in applications and permit

them to be corrected. A technical

deficiency is an error or oversight

which, if corrected, would not alter, in

either a positive or negative fashion, the

review and rating of the application.

Examples of curable technical

deficiencies would be a failure to

submit proper certifications or failure to

submit an application containing an

original signature by an authorized

official. HUD will notify applicants in

writing of any curable technical

deficiencies in applications.

The field office also may, at its

discretion, request supplemental

information to resolve inconsistencies

or ambiguities in the application or

information that may help clarify an

application that, in the field office’s

view, contains information that is

inconsistent with known facts or data.

Applicants will have 14 calendar days

from the date of HUD’s correspondence

to reply and correct the technical

deficiency or provide the requested

supplemental information. If the

technical deficiency is not corrected

within this time period, HUD will reject

the application as incomplete. If the

supplemental information is not

provided in this time period and, as a

consequence, the field office determines

that the applicant has failed to establish

compliance with the requirements of 24

CFR part 953, the application will be

returned, unrated.

Applicants may not submit information

that would enhance a project’s rating,

and a new project may not be

substituted for one included in the

application.

5. Final ranking. All projects will be

ranked against each other according to

the point totals they receive, regardless

of the rating category or component

under which the points were received.

Projects will be selected for funding

based on this final ranking, to the extent

that funds are available. Individual

grant amounts will be determined in a

manner consistent with the

considerations set forth in 24 CFR

953.100(b)(2). If the field office

determines that an insufficient amount

of money is available to adequately fund

a project, it may decline to fund that

project and fund the next highest

ranking project or projects for which

adequate funds are available. HUD may

select, in rank order, additional projects

for funding if one of the higher ranking

projects is not funded, or if additional

funds become available.

6. Tiebreakers. When rating results in

a tie among projects and insufficient

resources remain to fund all tied

projects, field offices shall approve

projects that can be fully funded over

those that cannot be fully funded. When

that does not resolve the tie, the

following factors should be used in the

order listed to resolve the tie:

A. Eastern Woodlands Office.

(1) The project that would benefit the

highest percentage of low and moderate

income persons.

(2) The project that would benefit the

most low and moderate income persons.

B. Southern Plains Office.

(1) The project that would benefit the

highest percentage of low and moderate

income persons.

(2) The applicant with the fewest

active grants.

(3) The project that would benefit the

most low and moderate income persons.

C. Northern Plains Office.

(1) The project that would benefit the

highest percentage of low and moderate

income persons.

(2) The project that would benefit the

most low and moderate income persons.

D. Southwest Office.

(1) The applicant with the fewest

active grants.

(2) The applicant that has not

received an ICDBG grant over the

longest period of time.

(3) The project that would benefit the

highest percentage of low and moderate

income persons.

E. Northwest Office.

(1) The applicant that has not

received an ICDBG grant over the

longest period of time.

(2) The applicant that has received the

fewest ICDBG dollars since the

inception of the program.

(3) The project that would benefit the

highest percentage of low and moderate

income persons.

F. Alaska Office.

(1) The applicant that has not

received an ICDBG grant over the

longest period of time.

(2) The project that would benefit the

highest percentage of low and moderate

income persons.

(3) The project that would benefit the

most low and moderate income persons.

(g) Overall Thresholds

Two types of general thresholds are

set forth in 24 CFR 953.302(a): those

that relate to applicants, and those that

address the overall community

development appropriateness of the

project(s) included in the application.

Project-specific thresholds will be

addressed within the pertinent project

selection criteria categories.

Applicant thresholds focus on the

administrative capacity of the applicant

to undertake the proposed project, and

on its past performance in the ICDBG

and Housing programs. An applicant

that has previously participated in the

ICDBG program must have performed

adequately. In cases of previously

documented deficient performance, the

applicant must have taken appropriate

corrective action to improve its

performance prior to submitting an

ICDBG application to HUD.

In order to rate and rank a project

contained in an application that has

passed the screening tests outlined in
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10455

Section III of this NOFA, field offices

must determine that the proposed

project meets the community

development appropriateness

thresholds, i.e., the project has costs that

are reasonable; the project is appropriate

for the intended use; and the project is

usable or achievable in a timely manner,

generally within two years of grant

award.

1. Applicant-Specific Thresholds—

Capacity and Performance

A. Capacity. The field office will

assume, absent evidence to the contrary,

that the applicant possesses, or can

obtain the managerial, technical or

administrative capability necessary to

carry out the proposed project. The

application should address who will

administer the project and how the

applicant plans to handle the technical

aspects of executing the project. If the

field office determines, based on

substantial evidence, that the applicant

does not have or cannot obtain the

capacity to undertake the proposed

project, the application will not receive

further consideration.

B. Performance.

(1) Community Development. If an

applicant has previously participated in

the ICDBG Program, the field office shall

determine whether the applicant has

performed adequately in grant

administration and management. Where

an applicant was found to be performing

inadequately, the field office shall

determine whether the applicant is

following a schedule to correct

performance to which the applicant and

the field office have agreed. In cases of

previously documented deficient

performance, the field office must

determine that the applicant has taken

appropriate corrective action to improve

its performance. The applicant is

presumed to be performing adequately

unless the field office makes a

performance determination to the

contrary during periodic monitoring.

(2) Housing assistance. The applicant

is presumed not to have taken actions to

impede the provision of housing

assistance for low and moderate income

members of the tribe or village. Any

action taken by the applicant to prevent

or obstruct the provision or operation of

assisted housing for low and moderate

income persons shall be evaluated in

terms of whether it constitutes

inadequate performance by the

applicant. If an applicant has

established or joined an Indian Housing

Authority (IHA), and this IHA has

obtained housing assistance from HUD,

the applicant’s compliance with the

obligations and responsibilities to the

IHA set forth in the tribal ordinance

which was the basis for the

establishment or joining of the IHA will

be a performance consideration.

An applicant will not be held

accountable for the poor performance of

its IHA unless this inadequate

performance is found to be a direct

result of the applicant’s action or

inaction. If this is true, the application

will be removed from further

consideration. Applicants which are

members of ‘‘umbrella’’ IHAs will be

judged only on their individual

performance and will not be held

accountable for the poor performance of

other tribes that are members of the

IHA.

If an applicant has received ICDBG

funds for the provision of new housing

through a subrecipient, the field office

will consider the following in making

its determination regarding housing

assistance performance: a. whether the

proposed units were constructed; b.

whether housing assistance was

provided to the beneficiaries identified

in the funded application, and if not,

why not; c. whether the applicant

followed the provisions of its housing

plan and procedures; and d. whether

there were sustained complaints from

tribal members regarding provision and/

or distribution of ICDBG housing

assistance.

(3) Audits. This threshold requires the

applicant to meet the following

performance criteria:

a. The applicant cannot have an

outstanding ICDBG obligation to HUD or

a ICDBG program that is in arrears, or

it must have agreed to a repayment

schedule. An applicant that has an

outstanding ICDBG obligation that is in

arrears, or one that has not agreed to a

repayment schedule, will be

disqualified from the current

competition and from subsequent

competitions until the obligations are

current. If a grantee that was current at

the time of application submission

becomes delinquent during the review

period, the application may be rejected.

b. The applicant cannot have an

overdue or unsatisfactory response to an

audit finding. If there is an overdue or

unsatisfactory response to an audit

finding, the applicant will be

disqualified from current and

subsequent competition until the

applicant has taken final action

necessary to close the audit finding. The

field office administrator may provide

exceptions to this disqualification in

cases where the applicant has made a

good faith effort to clear the audit

finding. An exception may be granted

when funds are due HUD or an ICDBG

program as a result of a finding only

when a satisfactory arrangement for

repayment of the debt has been made

and payments are current.

2. Community Development

Appropriateness. The following criteria

must be met by each project:

A. Costs are reasonable. The project

must be described in sufficient detail so

that the field office can determine: (1)

that costs are reasonable; and (2) that

the funds requested from the ICDBG

program and all other sources are

adequate to complete the proposed

activity(ies) described in the

application.

B. The project is appropriate for the

intended use.

C. The project is usable or achievable

in a timely manner, generally within a

two year period. The applicant must

include its timetable for project

implementation and completion. A

period of more than two years is

acceptable in certain circumstances, if it

is established that such circumstances

are beyond the applicant’s control.

(h) General Definitions

Adopt. To approve by formal tribal

resolution, as defined at 24 CFR part

953.4.

Assure. To comply with a specific

NOFA requirement. The applicant

should state its compliance or its intent

to comply in its application.

Document. To supply supporting

written information and/or data in the

application, which satisfies the NOFA

requirement.

Leverage. Resources the grantee will

use in conjunction with ICDBG funds to

achieve the objectives of the project.

Resources include, but are not limited

to: tribal trust funds, loans from

individuals or organizations, state or

Federal loans or guarantees, other

grants, as well as noncash contributions

and donated services. Written

verification of an application or request

for the leveraged resources which would

be provided by an entity other than the

applicant must be included in the

application for ICDBG funds. To be

considered in the award of points,

resources to be provided by the

applicant must be verified by a tribal

council resolution which identifies and

commits these resources. A copy of this

resolution must be included in the

application. With respect to resources to

be provided by an entity other than the

applicant, to be considered in the award

of points, the following requirements

apply:

—For grants or other contributed

resources from a public agency,

foundation, or other private party, a

written commitment which may be

contingent on approval of the ICDBG

award must be received by the field
10456 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

office no later than 30 days after the

application deadline. This

commitment must specifically

identify or indicate: the dollar amount

committed (or dollar value of the

noncash resource and the basis for the

valuation); that the resources are

currently available or will be available

when necessary for successful project

implementation; and the project. If

delays in the Federal funding process

preclude an agency from making a

firm funding commitment in this

timeframe, such resources will be

considered in the award of points if

the Federal entity issues a written

statement indicating that it is

extremely likely that the applicant

will be funded within six months of

the anticipated date of grant approval

notification from HUD. This statement

must be received by the field office no

later than 30 days after the

application deadline.

With respect to the contribution of

land as a leveraged resource, the value

of the land to be contributed will only

be considered when the use of the land

and the land area are integral to the

development of the project. To be

considered for point award, the value of

the land must be verified by any of the

following means or methods and this

documentation and a written

confirmation of the proposed

contribution must be included in the

application:

—A site specific appraisal no more than

two years old;

—An appraisal of a near-by comparable

site also no more than two years old;

—A reasonable extrapolation of land

value based on current area realtors

value guides.

Donated goods and services will be

considered for point award if the

applicable requirements listed above are

met; if the items or services are

demonstrated and determined necessary

to the actual development of the project;

and comparable cost and/or time

estimates are submitted which support

the donation.

Project Cost. The total cost to

implement the project. Project cost

includes both ICDBG and non ICDBG

funds and resources.

Section 8 standards. Housing quality

standards contained in the Section 8

Housing Assistance Payments Program

Existing Housing (24 CFR 882.109).

Standard Housing/Standard

Condition. Housing which meets the

housing quality standards (HQS)

adopted by the applicant. The adopted

standards must provide for the

following:

—That the house is safe, in a physically

sound condition with all systems

performing their intended design

functions;

—A livable home environment;

—An energy efficient building and

systems which incorporate energy

conservation measures;

—Adequate space and privacy for all

intended household members. The

HQS adopted by the applicant must

be at least as stringent as the Section

8 standards unless the field office

approves less stringent standards

based on a determination that local

conditions make the use of Section 8

standards infeasible. Applicants may

submit their request for the approval

of standards less stringent than

Section 8 standards prior to the

application due date. If the request is

submitted with the application,

applicants should not assume

automatic approval by the field office.

Tribe. Indian Tribe, band, group or

nation, including Alaska Indians,

Aleuts, Eskimos and Alaska Native

Villages.

(i) Project Definitions, Thresholds and

Selection Criteria

1. Housing.

A. General Threshold for Housing

Category Projects Households that have

been evicted from HUD assisted housing

within the past five years may not be

assisted, except in emergency situations.

The field office administrator will

review each emergency situation

proposed by an applicant on a case-bycase basis to determine whether an

exception is warranted.

B. Rehabilitation.

(1) Thresholds.

a. All applicants for housing

rehabilitation grants shall adopt

rehabilitation standards and

rehabilitation policies, prior to

submitting an application. These

standards and policies must be

submitted with the application.

b. Any units to be rehabilitated must

be the permanent non-seasonal

residence of the occupant(s). The

resident(s) must live in the unit at least

nine months per year.

c. Housing units slated for eventual

replacement may only receive repairs

essential for the health and safety of the

occupants.

d. The applicant shall provide an

assurance that it will use project funds

to rehabilitate HUD assisted units only

when the tenant/homeowner’s

payments are current or the tenant/

homeowner is current in a repayment

agreement that is subject to approval by

the field office. In emergency situations

the field office administrator may grant

exceptions to this requirement on a

case-by-case basis.

e. Houses that have received

comprehensive rehabilitation assistance

from any ICDBG or other Federal grant

program within the past 8 years cannot

be assisted with ICDBG funds to make

the same repairs if the repairs are

needed as a result of abuse or neglect.

(2) Grant limits. Rehabilitation grant

limits for each field office jurisdiction

are as follows:

a. Eastern Woodlands—$15,000

b. Southern Plains—$15,000

c. Northern Plains—$33,500

d. Southwest—$25,000

e. Northwest—$18,000

f. Alaska—Lesser of $45/ sq.ft. or

$35,000

(3) Selection Criteria.

a. Project Need and Design. (45

points)

(i) The percentage of ICDBG funds

committed to bring the housing up to a

standard condition as defined by the

applicant. Administrative, planning and

technical assistance expenditures are

excluded in computing the percentage

of ICDBG funds committed to bring

housing up to a standard condition. The

percentage of ICDBG funds not used to

bring housing up to a standard

condition must be used for emergency

repairs, demolition of substandard units

or another purpose closely related to the

housing rehabilitation project.

Percentage of ICDBG Funds

Committed to bring housing up to a

standard condition:

91–100%—20 points

81–90.9%—15 points

80.9 and less—0 points

(ii) The applicant’s selection criteria

give first priority to the neediest

households. ‘‘Neediest’’ is defined as

households whose current residences

are in the greatest disrepair (but still

suitable for rehabilitation treatment) in

the project area, or very low-income

households.

YES 10 points

NO 0 points

(iii) Documentation of project need

with a housing survey of all of the units

to be rehabilitated with ICDBG funds.

This survey should include standard

housing data on each unit surveyed

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

number of habitable rooms, number of

bedrooms/sleeping rooms, type of

heating). The survey should indicate the

deficiencies for each unit. A definition

of ‘‘suitable for rehabilitation’’ must be

included. At a minimum, this definition

must not include units that need only

minor repairs, or units that need such

major repairs that rehabilitation is

structurally or financially infeasible.
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10457

Submission of acceptable survey of

units to be assisted.

The application contains all the

required survey data. (15 points)

The application does not contain all

the survey data, but does contain

sufficient data to enable the project to

proceed effectively. (10 points)

The application does not contain

survey data Or the survey data it does

contain is not sufficient to enable the

project to proceed effectively. (0 points)

b. Planning and Implementation. (50

points)

(i) Rehabilitation Policies including:

a Adopted rehabilitation standards.

The rehabilitation standards adopted by

the applicant will ensure that after

rehabilitation the units assisted will be

in a standard condition.

YES 5 points

NO 0 points

b Rehabilitation selection criteria.

Rehabilitation selection criteria include

property selection standards, cost limits,

type of financing (e.g., loan or grant),

homeowner costs and responsibilities,

procedures for selecting households to

be assisted, and income verification

procedures.

The application contains all the

selection criteria listed above. (10

points)

The application does not contain all

the selection criteria listed above, but

contains sufficient data to enable the

project to proceed effectively Or the

application contains all the selection

criteria listed above, but in insufficient

detail. (5 points)

The application does not contain the

selection criteria listed above Or if it

does contain selection criteria, they are

not sufficient to enable the project to

proceed effectively. (0 points)

c Project planning documents and

applicable policies and procedures.

These policies and procedures must

include a description of the following

items:

—The qualifications which will be

required of the inspector

—The inspection procedures to be used

—The procedures to be used to select

the contractor or contractors

—The manner in which the households

to be assisted will be involved in the

rehabilitation process

—How disputes between the

households to be assisted, the

contractors and the applicant will be

resolved

—If applicable, the repayment

provisions which will be required if

sale of the assisted unit occurs prior

to 5 years after the rehabilitation work

has been completed

The application contains all the

policies and procedures listed above,

and they will enable the project to be

effectively implemented. (10 points)

The application contains some but not

all of the policies and procedures listed

above and these policies and procedures

are sufficient for the project to proceed

effectively. (5 points)

The application does not contain the

policies and procedures listed above. (0

points)

(ii) Post rehabilitation maintenance

policies, including counseling and

training assisted households on

maintenance.

The policy contains a well-planned

counseling and training program.

Training will be provided for assisted

households, and provision is made for

households unable to do their own

maintenance (e.g., elderly and

handicapped).

The policy includes follow-up

inspections after rehabilitation is

completed to ensure the unit is being

maintained. (5 points)

The policy contains a well-planned

home maintenance training and

counseling program. (3 points)

The application does not contain a

well-planned home maintenance and

counseling program. (0 points)

(iii) Quality of cost estimates. Cost

estimates have been prepared by a

qualified individual. (Qualifications of

the estimator must be included in the

application).

Costs of rehabilitation are

documented on a per unit basis and are

supported by a work write-up for each

unit to be assisted. The work write-ups

are based upon making those repairs

necessary to bring the units to a

standard condition in a manner

consistent with adopted construction

codes and requirements. The write-ups

must be submitted with the application.

If national standards, e.g.,the Uniform

Building Code, have been locally

adopted as the construction codes and

requirements, they must be referenced.

If locally developed and adopted codes

and requirements are used, they must be

submitted. (15 points)

Cost estimates have been prepared for

each dwelling unit to be rehabilitated to

determine the total rehabilitation cost.

The cost estimates are included in the

application. Costs to rehabilitate each

unit are documented by a deficiency

list. (10 points)

Cost estimates have been prepared

and are included in the application but

the estimates are based on surveys and

not on individual unit deficiency lists.

(5 points)

Cost estimates are not included in the

application Or the basis for the cost

estimates included is inappropriate or

not provided. (0 points)

(iv) Cost effectiveness of the

rehabilitation program. This is a

measure of how efficiently and

effectively funds will be used under the

proposed program. Applicants must

demonstrate how the proposed

rehabilitation will bring the units to be

assisted to a standard condition in an

efficient and cost effective manner.

Rehabilitation project is cost effective.

(5 points)

Rehabilitation project is not cost

effective. (0 points)

c. Leveraging. (5 points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

C. Land to Support New Housing.

(1) Thresholds.

a. There must be a reasonable ratio

between the number of net usable acres

to be acquired and the number of low

and moderate income households with

documented housing needs.

b. Housing assistance needs must be

clearly demonstrated and documented

with either a survey that identifies the

households to be served, their size,

income levels and the condition of

current housing or an IHA approved

waiting list. The survey or waiting list

must be submitted with the application.

(2) Selection Criteria.

a. Project Need. (40 Points).

The applicant has no suitable land for

the construction of new housing and the

necessary infrastructure and amenities

for this housing. (40 points)

The applicant has land suitable for

housing construction and needed

infrastructure and amenities, but the

land is officially dedicated to another

purpose. (30 points)

The applicant will be acquiring land

for housing construction and the

construction of needed infrastructure

and amenities for both new and existing

housing. (25 points)

The applicant will be acquiring land

for the construction of amenities for

existing housing. (15 points)

The reason for the land acquisition

does not meet any of the criteria listed

above. (0 points)

b. Planning and Implementation. (60

points)

(i) Suitability of land to be acquired.

A preliminary investigation has been
10458 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

conducted by a qualified entity

independent of the applicant. Based on

this investigation (which must be

submitted with the application), the

land appears to meet all applicable

requirements:

—Soil conditions appear to be suitable

for individual and/or community

septic systems or other acceptable

methods for waste water collection

and treatment have been identified.

—The land has adequate:

—Availability of drinking water;

—Access to utilities;

—Vehicular access;

—Drainage.

—The land appears to comply with

environmental requirements.

—Future development costs are

expected to be consistent with other

subdivision development costs in the

area (subdivision development costs

include the costs of the land, housing

construction, water and sewer,

electrical service, roads, and drainage

facilities if required).

YES 20 points

NO 0 points

(ii) Housing resources. Evidence of a

conditional commitment for the housing

units to be built on the land proposed

for acquisition or evidence that an

approvable application for these units

has been submitted has been included

in the application. (10 points)

The evidence required for the award

of 10 points has not been included in

the application. (0 points)

(iii) Availability/accessibility of

supportive services and employment

opportunities. Documentation is

provided in the application to indicate

that upon completion of construction of

the housing to be built on the land to

be acquired, fire and police protection

will be available to the site and medical

and social services, schools, shopping,

and employment opportunities will be

accessible from the site according to the

community’s established norms.

YES 5 points

NO 0 points

(iv) Commitment that households will

move into the new housing.

Documented commitment from

households that they will move into the

new housing to be built on the land to

be acquired is included in the

application.

YES 5 points

NO 0 points

(v) Land can be taken into trust and

provisions have been made for taxes and

fees. There must be a written assurance

from the BIA that the land will be taken

into trust. The applicant must

demonstrate the financial capability and

commitment to pay the property taxes

and fees on the land for any period of

time during which it anticipates it will

own the property in fee. This

commitment must be in the form of a

resolution by the governing body of the

applicant which indicates that the

applicant will pay or guarantee that all

taxes and fees on the land will be paid.

Documentation from the BIA that land

can be taken into trust and the required

governing body resolution are included

in the application. (5 points)

Either the assurance or the resolution

(or both) are missing from the

application or they are inadequate. (0

points)

(vi) A plan or commitment for any

infrastructure needed to support the

housing to be built on the land to be

acquired. The plan or commitment must

address water, waste water collection

and treatment, electricity, roads, and

drainage facilities necessary to support

the housing to be developed.

Financial commitments for all

necessary infrastructure have been

included in the application or

documentation is included which

demonstrates that all necessary

infrastructure is in place. (10 points)

A plan for the provision of all

necessary infrastructure is included in

the application but all financial

commitments required to implement the

plan have not been submitted. (5 points)

Neither a financial commitment or

plan are included in the application. (0

points)

(vii) The extent to which the site

proposed for acquisition meets the

housing needs of the applicant and is

reasonably priced. The application

includes documentation which

indicates that the applicant has

examined and assessed the

appropriateness of alternative sites and

which demonstrates that the site

proposed for acquisition best meets the

documented housing needs of tribal

households. The applicant must submit

comparable sales data which shows that

the cost of the land proposed for

acquisition is reasonable.

Yes 5 points

No 0 points

D. New Housing Construction/Direct

Home Ownership Assistance.

Unless otherwise indicated, the

following thresholds and selection

criteria apply to new housing

construction to be implemented through

a subrecipient as provided for under 24

CFR 570.204 and direct homeownership

assistance activities authorized under

Section 105(a)(20) of Title I of the

Housing and Community Development

Act of 1974 as amended by the National

Affordable Housing Act (P.L. 101–625).

Please note that all households to be

assisted under a new housing

construction project or direct

homeownership assistance activities

must be of low or moderate income

status.

(1) Thresholds.

a. New housing construction can only

be implemented through a nonprofit

organization that is eligible under 24

CFR 953.202 or a nonprofit organization

serving the development needs of the

communities of nonentitlement areas or

as otherwise eligible under 24 CFR

570.207(b)(3). (This threshold does not

apply to Direct Homeownership

Activities).

b. Documentation which supports the

following determinations must be

included in the application:

—No other housing is available in the

immediate reservation area that is

suitable for the households to be

assisted;

—No other funding sources can meet

the needs of the household(s) to be

served.

—The unit occupied by the household

to be assisted is not in standard

condition and rehabilitation of the

unit is not economically feasible, or

the household is currently in an

overcrowded unit [sharing unit with

other household(s)], or the household

to be assisted has no current

residence.

c. All applicants for new housing

construction projects shall adopt

construction standards and construction

policies, prior to submitting an

application. Applicants must identify

the building code they will comply with

when constructing the units. The

building code may be a locally adopted

tribal building code or a nationally

recognized model code. If the code is a

locally adopted code, it must regulate

all of the areas and sub-areas identified

in 24 CFR 200.925(b), and it must be

reviewed and approved by the field

office. If the code is recognized

nationally, it must be the latest edition

of one of the codes incorporated by

reference in 24 CFR 200.925(c). (This

threshold does not apply to Direct

Homeownership Activities).

d. Any unit to be constructed must be

the permanent non-seasonal residence

of the household to be assisted. This

household must live in the unit at least

nine months per year.

(2) Selection Criteria.

a. Project Need and Design. (45

points)

(i) The applicant either is not served

by an IHA, or if it is a member of an

umbrella IHA, this IHA has not

provided assistance to the applicant in
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10459

a substantial period of time, or the IHA

serving the applicant has not received

HUD Public and Indian Housing new

construction assistance in a substantial

period of time due to limited HUD

appropriations. The period of time

during which the IHA serving the

applicant does not receive funding for

inadequate or poor performance by the

applicant does not count towards the

period of time that no assistance has

been provided by HUD.

No assistance from IHA for 10 years or

longer—15 points

No assistance from IHA for 6–9.9

years—10 points

No assistance from IHA for 0–5.9

years—0 points

(ii) Adopted housing construction

policies and plan. The plan must

include a description of the proposed

subrecipient and its relationship to the

applicant. In addition, the policies and

plan must include:

—A selection system that gives priority

to the neediest households. Neediest

shall be defined as households whose

current residences are in the greatest

disrepair, or very low-income

households, or households without

permanent housing.

—A system effectively addressing longterm maintenance of the constructed

units.

—Estimated costs and identification of

the entity responsible for paying

utilities, fire hazard insurance and

other normal maintenance costs.

—Policies governing ownership of the

units, including the status of the land.

—Description of a comprehensive plan

or approach being implemented by

the tribe to meet the housing needs of

its members.

—Policies governing disposition or

conversion to non-dwelling uses of

substandard units that will be vacated

when a replacement unit is provided.

Acceptable policies and plan—20 points

Unacceptable policies and plan—0

points

(iii) Beneficiary identification.

Households to be assisted are identified

in the application and their income

eligibility is documented. (10 points)

Households to be assisted not

identified or, if identified, their income

eligibility is not documented. (0 points)

b. Planning and Implementation. (45

points)

(i) Occupancy Standards. The

proposed housing will be designed and

built according to adopted reasonable

standards that govern the size of the

housing in relation to the size of the

occupying household (minimum and

maximum number of persons allowed

for the number of sleeping rooms); the

minimum and maximum square footage

allowed for major living spaces

(bedrooms, living room, kitchen and

dining room). The standards must be

submitted with the application.

Applicant has adopted reasonable

occupancy standards which are

included in the application. (10 points)

Applicant has not adopted reasonable

occupancy standards or the standards

were not included in the application. (0

points)

(ii) Site Acceptability. The applicant

(or the proposed beneficiary household)

has control of the land upon which the

units will be built. The applicant has

provided documentation from the BIA

that all housing sites are in trust (or will

be taken into trust within one year of

the date of the ICDBG approval

notification). If the sites are not in trust

by the date of ICDBG approval

notification, documentation that they

are in trust must be provided to the field

office before ICDBG funds may be

obligated for construction.

A preliminary investigation of the

site(s) has been conducted by a qualified

entity independent of the applicant.

Based on this investigation (which must

be included in the application) the

site(s) appear to meet all applicable

requirements:

—Soil conditions appear to be suitable

for individual or community septic

systems or other acceptable methods

for waste water collection and

treatment have been identified;

—Each site has adequate:

—Availability of drinking water

—Access to utilities

—Vehicular access

—Drainage.

YES 15 points

NO 0 points

(iii) Energy Conservation Design. The

proposed housing units have been

designed in a manner which will ensure

that energy use will be no greater than

that for comparable units in the same

general geographic area that have been

constructed in accordance with

applicable state energy conservation

standards for residential construction.

Any special design features, materials,

or construction techniques which

enhance energy conservation must be

described.

YES 5 points

NO 0 points

(iv) Housing Survey. The applicant

has completed a survey of housing

conditions and housing needs of its

tribal members. This survey was

completed within the twelve month

period prior to the application

submission deadline (or if an earlier

survey, it was updated during this time

period). The survey must be submitted

with the application. The following

descriptive data is included for each

household surveyed:

—Size of the household, inc. age and

gender of any children

—Is the household occupying

permanent housing or is it homeless?

—Annual household income

—Owner or renter

—Number of habitable rooms and

number of sleeping rooms

—Physical condition of the unit—

standard/substandard. If substandard,

is it suitable for rehabilitation? A

definition of ‘‘suitable for

rehabilitation’’ must be included.

—Number of distinct households

occupying the unit/degree of

overcrowding

—If there is a need for a replacement

unit, what are the housing preferences

of the household, e.g. ownership or

rental; location; manufactured or

stick-built.

An acceptable survey was submitted.

(10 points)

The survey submitted was not

acceptable or no survey was submitted.

(0 points)

(v) Cost Effectiveness of New Housing

Construction. This is a measure of how

efficiently and effectively funds will be

used under the proposed program.

Applicants must demonstrate how the

proposed housing activities will be

accomplished in an efficient and cost

effective manner.

The applicant has demonstrated that

the proposed activities are cost effective.

(5 points)

The applicant has not demonstrated

that the proposed activities are cost

effective. (0 points)

c. Leveraging. (10 points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

2. Community Facilities.

A. Infrastructure.

(1) Selection Criteria.

a. Project Need and Design. (60

points)

(i) The proposed project meets an

essential community development need

by fulfilling a function that is critical to

the continued existence or orderly

development of the community.
10460 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

The proposed project will fulfill a

function which is critical to the

continued existence or orderly

development of the community. (20

points)

The proposed project will fulfill a

function which is not critical to the

continued existence or orderly

development of the community. (0

points)

(ii) The proposed project benefits the

neediest segment of the population, as

identified below. Applications must

include tribal, BIA, IHS or other

documentation that:

More than 85 percent of the

beneficiaries are low and moderate

income. (15 points)

Between 75–84.9 percent of the

beneficiaries are low and moderate

income. (10 points)

Between 55–74.9 percent of the

beneficiaries are low and moderate

income. (5 points)

Less than 55 percent of the

beneficiaries are low and moderate

income. (0 points)

(iii) The proposed project will provide

infrastructure that does not currently

exist for the area to be served Or it will

eliminate or substantially reduce a

health or safety threat or problem Or it

will replace existing infrastructure that

no longer functions adequately to meet

current needs.

The infrastructure does not exist Or

the existing infrastructure no longer

functions Or the existing infrastructure

does not contribute to the elimination

of, or causes, a verified health or safety

threat or problem. (25 points)

The existing infrastructure no longer

functions adequately to meet current

needs Or is unreliable. (20 points)

The proposed project will replace or

supplement existing infrastructure

which is adequate for current needs but

which will not meet acknowledged

future needs. (12 points)

The proposed project will replace or

supplement existing infrastructure

which is adequate to meet current needs

and future needs have not been

acknowledged or documented. (0

points)

If the project is intended to address a

health or safety threat or problem, the

applicant must provide documentation

consisting of a signed study or letter

from a qualified independent authority

which verifies that:

—A threat to health or safety (or a

health or safety problem) exists which

has caused or has the potential to

cause serious illness, injury, disease,

or death; and,

—The threat or problem can be

completely or substantially

eliminated if the proposed project is

undertaken.

b. Planning and Implementation. (30

points)

(i) A viable plan for maintenance and

operation. If the applicant is to assume

responsibility for maintenance and

operation of the proposed facility, the

applicant must adopt a maintenance

and operation plan which addresses

maintenance, repair and replacement of

items not covered by insurance, and

operating responsibilities and resources.

This plan and the adopting resolution

must be included in the application.

The plan must identify a funding source

to ensure that the facility will be

properly maintained and operated. The

resolution adopting the plan must

identify the total annual dollar amount

the applicant will commit.

If an entity other than the applicant

commits to pay for maintenance and

operation, a letter of commitment which

identifies the responsibilities the entity

will assume must be included in the

application; submission of a

maintenance and operation plan is not

required. Points will only be awarded if

the field office is able to determine that

the entity is financially able to assume

the costs of maintenance and operation.

An acceptable maintenance and

operation plan and adopting resolution

(or letter of commitment) are included

in the application. (15 points)

The plan, resolution or the

commitment letter have not been

included in the application or if

included they are not acceptable. (0

points)

c. An appropriate and effective

design, scale and cost. The application

includes information which

demonstrates that the proposed project

is the most appropriate and cost

effective approach to address the

identified need. This information

demonstrates that the use of existing

facilities and resources, and

alternatives, including method of

implementation and cost, have been

considered. If only one approach is

feasible (there are no alternatives to the

proposed project), the application must

include an explanation.

The required information is included

in the application. (15 points)

The required information is not

included in the application or, if

included, it is unacceptable. (0 points)

d. Leveraging. (10 points)

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown.

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

B. Buildings.

(1) Threshold. An applicant proposing

a facility which would provide health

care services must include in its

application a letter from the Indian

Health Service (IHS) which indicates

that the proposed facility meets IHS

requirements.

(2) Selection Criteria.

a. Project Need and Design. (60

points)

(i) The proposed building meets an

essential community development need

by providing space so that a service or

function which is critical to the

continued existence or orderly

development of the community can be

provided.

The proposed building will provide

space for a service or function which is

essential to the continued existence or

orderly development of the community.

(20 points)

The proposed building will provide

space for a service or function which is

not critical to the continued existence or

orderly development of the community.

(0 points)

(ii) The proposed project benefits the

neediest segment of the population, as

identified below. Applications must

include tribal, BIA, IHS or other

documentation that:

More than 85 percent of the

beneficiaries are low and moderate

income. (10 points)

Between 75–84.9 percent of the

beneficiaries are low and moderate

income. (8 points)

Between 55–74.9 percent of the

beneficiaries are low and moderate

income. (5 points)

Less than 55 percent of the

beneficiaries are low and moderate

income. (0 points)

(iii) The proposed building will be

used to provide services or functions

which are not provided to service area

beneficiaries Or it will replace a

building currently used to provide the

service or function which does not meet

health or safety standards Or it will

replace a building which is no longer

able to provide the space or amenities

to meet the current need for the services

or functions.

The services or functions to be

provided in the proposed building do

not exist for the service area population

Or the building currently being used
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10461

does not meet health or safety

standards. (25 points)

The building to be replaced by the

proposed building is not able to provide

the space or amenities for the services

or functions so that current needs

cannot be entirely met. (20 points)

The building to be replaced is able to

provide adequate space and current

needs are being met but it cannot

provide space for acknowledged future

needs. (10 points)

The proposed building is not

necessary since current needs and

acknowledged future needs can be met

through the use of existing facilities. (0

points)

(If the proposed building is intended

to replace an existing building which

does not meet health or safety

standards, the application must include

documentation consisting of a signed

letter from a qualified independent

authority which specifically identifies

the standard or standards which are not

being met by the existing building.)

(iv) Provides multiple uses or

multiple benefits, or has services

available 24 hours a day. The

application must show that the

proposed building will house more than

one broad category of activity. ‘‘Broad

category’’ means a single activity or

group of activities which serves a

particular group of beneficiaries (e.g.,

senior citizens) or meets a particular

need (e.g., literacy). No one category of

activity will occupy more than 75

percent of the available space for more

than 75 percent of the time. A written

commitment for the use of the space

must be included in the application.

Multipurpose buildings do not

automatically meet these criteria, nor do

buildings that provide a variety of

activities for one client group.

The proposed building will provide

multiple uses or benefits or will have

services available 24 hours/day and a

commitment for the use of the space is

included in the application. (5 points)

The proposed building will not

provide multiple benefits or services or

will not have services available 24 hours

a day or the application does not

include a commitment for the use of the

space. (0 points)

b. Planning and Implementation. (30

points)

(i) A viable plan for maintenance and

operation. If the applicant is to assume

responsibility for the maintenance and

operation of the proposed building, the

applicant must adopt a maintenance

and operation plan which addresses

maintenance, repair and replacement of

items not covered by insurance, and

operating responsibilities and resources.

This plan and the adopting resolution

must be included in the application.

The plan must identify a funding source

to ensure that the building will be

properly maintained and operated. The

resolution adopting the plan must

identify the total annual dollar amount

the applicant will commit.

If an entity other than the Tribal

Council commits to pay for

maintenance and operation, a letter of

commitment which identifies the

responsibilities the entity will assume

must be included in the application;

submission of a maintenance and

operation plan is not required. Points

will only be awarded if the field office

is able to determine that the entity is

financially able to assume the costs of

maintenance and operation.

An acceptable maintenance and

operation plan and adopting resolution

(or letter of commitment) are included

in the application. (15 points)

The plan, resolution or the

commitment letter have not been

included in the application, or if

included, they are not acceptable. (0

points)

(ii) An appropriate and effective

design, scale and cost. The application

includes information which

demonstrates that the proposed building

is the most appropriate and cost

effective approach to address the

identified need(s). This information

demonstrates that the use of existing

facilities and resources and alternatives

including method of implementation

and cost have been considered. If only

one approach is feasible (there are no

alternatives to the proposed building),

the application must include an

explanation.

The required information is included

in the application. (15 points)

The required information is not

included in the application or, if

included, it is unacceptable. (0 points)

c. Leveraging. (10 points).

Points under this component will be

awarded based on the definition of

‘‘Leverage’’ included in this NOFA and

the following breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

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

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

3. Economic Development.

A. Thresholds.

(1) Economic development assistance

may be provided only when a financial

analysis is done which shows public

benefit commensurate with the

assistance to the business can

reasonably be expected to result from

the assisted project, and the project has

a reasonable chance of success. The

applicant shall demonstrate the need for

grant assistance by providing

documentation to support a

determination that the assistance is

appropriate to implement an economic

development project.

(2) All economic development

projects must meet one of the national

objectives. A general claim of cash flow

or benefit to the tribe as a whole does

not demonstrate benefit to low and

moderate income persons.

B. Selection Criteria.

(1) Organization (8 points)

The application contains all of the

following three elements:

—The applicant has an established

organization system for operation of a

business, (e.g., adopted tribal

ordinances, articles of incorporation,

Board of Directors in place, tribal

department).

—Formal provisions exist for separation

of government functions from

business operating decisions. An

operating plan has been established

and is submitted.

—The Board of Directors consists of

persons who have prior business

experience. A staffing plan has been

developed and is submitted. (8 points)

The application contains all of the

first element listed above, and some of

the items in the second and third

elements. The business should be able

to operate effectively; OR, the

application contains all of the elements

listed above, but in insufficient detail. (5

points)

The application does not contain any

of the elements listed above. (0 points)

(2) Project Success (45 points)

The project will be rated on the

adequacy and quality of the following

subparts: ANY PROJECT NOT

RECEIVING AT LEAST MODERATE

POINTS IN EACH OF THE FOLLOWING

THREE RATING FACTORS WILL NOT

BE CONSIDERED FOR FUNDING.

a. Market analysis.

A feasibility/market analysis,

generally not older than two years,

which identifies the market and

demonstrates that the proposed

activities are highly likely to capture a

fair share of the market. The analysis

must be submitted with the application.

MAXIMUM 15 points

Feasibility/Market Analysis which

identifies the market and demonstrates

that the proposed activities are

reasonably likely to capture a fair share

of the market. The analysis must be

submitted with the application.
10462 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

MODERATE 10 points

The submission does not meet the

criteria for the award of moderate

points.

UNSATISFACTORY 0 points

b. Management capacity.

A management team with qualifying

specialized training or technical/

managerial experience in the operation

of a similar business has been

identified. Job descriptions of key

management positions as well as

resumes showing qualifying specialized

technical/managerial training or

experience of the identified

management team must be submitted

with the application.

MAXIMUM 15 points

A management team with qualifying

general business training or experience

will be hired if the grant is approved.

Job descriptions of key management

positions must be submitted with the

application.

MODERATE 12 points

The submission does not meet the

criteria for the award of moderate

points.

UNSATISFACTORY 0 points

c. Financial Analysis of the Business

(including microenterprises). The

financial viability of an economic

development project will be determined

by an analysis of financial and other

project related information. Components

of the financial analysis are: costs,

sources of funds, cash flow projections

and financial statements. A detailed cost

summary, evidence of funding sources;

five year operating or cash flow

financial projections; and business

financial statements for the most recent

three year period for the project if it is

for expansion of an existing business,

must be submitted with the application.

For start-up businesses that are not

owned by the grantee, current financial

or net worth statements on principal

business owners or officers must be

submitted with the application.

Financial statements include the

balance sheet, income statement and

statement of retained earnings.

The information derived from the

analysis will be reviewed and compared

to local or national industry standards

to assess reasonableness of development

costs, financial need, profitability, and

risk as factors in determining overall

financial viability. In determining

whether a project is financial viable, the

field office will also consider current

and projected market conditions and

profitability measures such as cash flow

return on equity, cash flow return on

total assets and the ratio of net profit

before taxes to total assets. Sources of

industry standards include Marshall

and Swift Publication Company, Robert

Morris Associates, Dun and Bradstreet,

the Chamber of Commerce, etc. Local

standards may also be used. If one of

these standards is cited, the appropriate

data must be submitted with the

application.

Based on the analysis, the project has

an excellent chance of achieving

financial success.

MAXIMUM 15 points

The project has an average chance of

achieving financial success.

MODERATE 8 points

The project has a minimal prospect of

achieving financial success.

UNSATISFACTORY 0 points

(3) Leveraging.

Points under this component will be

awarded in a manner consistent with

the definition of ‘‘Leverage’’ included in

this NOFA and the following

breakdown:

Non-ICDBG percent of project

cost Points

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

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

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

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

(4) Permanent Full-Time Equivalent

Job Creation and Training (20 points)

The total number of permanent fulltime equivalent jobs expected to be

created and/or retained as a result of

the project as well as a summary of job

descriptions and skill requirements

must be submitted with the application.

The number and kind(s) of jobs

expected to be available to low and

moderate income persons must be

identified.

a. ICDBG cost per job:

$20,000 or less—15 points

$20,001–30,000—12 points

$30,001–35,000—8 points

$35,001+ —0 points

b. Quality of jobs and/or training

targeted to low and moderate income

persons

—The jobs offer wages and benefits

comparable to area wages and benefits

for similar jobs, provide opportunity

for advancement, and teach a

transferable skill; OR

—The employer commits to provide

training opportunities. A description

of the planned training program must

be submitted with the application.

YES 5 points

NO 0 points

(5) Additional Considerations (15

points) A project must meet three of the

following criteria to receive 15 points.

Maximum 15 points.

—Use, improve or expand members’

special skills. Special skills are those

that members have developed through

education, training or traditional

cultural experiences (e.g., technical

expertise in electronic assembly;

making traditional native crafts).

YES 5 points

NO 0 points

—Provide spin-off benefits beyond the

initial economic development benefits

to employees or to the community.

YES 5 points

NO 0 points

—Provide special opportunities for

residents of federally-assisted

housing.

YES 5 points

NO 0 points

—Provide benefits to other businesses

owned by Indians or Alaska natives.

YES 5 points

NO 0 points

—Loan Repayment/Reuse of ICDBG

funds. If the business is not tribalowned, at least 50% of the ICDBG

assistance to the business will be

repaid to the grantee within a 10 year

period. If the business is tribal-owned,

the tribe agrees (by submission of a

tribal resolution) within a 10 year

period to use funds equal to 50% of

the ICDBG assistance for eligible

activities that meet a national

objective. These funds should come

from the profits of the tribal-owned

business.

YES 5 points

NO 0 points

4. Selection System Criteria and Point

Award Summary

Maximum

points

A. Housing:

(1) Rehabilitation:

a. Project Need and Design:

(i) % of funds for standard rehab ............................................................................................................................................ 20

(ii) applicant’s selection criteria .............................................................................................................................................. 10
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10463

Maximum

points

(iii) housing survey .................................................................................................................................................................. 15

b. Planning and Implementation:

(i) rehabilitation policies:

a rehabilitation standards .................................................................................................................................................... 5

b selection criteria ................................................................................................................................................................ 10

c project planning documents, etc ...................................................................................................................................... 10

(ii) post rehabilitation maintenance ........................................................................................................................................ 5

(iii) cost estimates .................................................................................................................................................................... 15

(iv) cost effectiveness ............................................................................................................................................................... 5

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

(2) Land to Support New Housing:.

a. Project Need ................................................................................................................................................................................. 40

b. Planning and Implementation:

(i) suitability of the land .......................................................................................................................................................... 20

(ii) housing resources ............................................................................................................................................................... 10

(iii) supportive services ........................................................................................................................................................... 5

(iv) commitment of households .............................................................................................................................................. 5

(v) land to trust status .............................................................................................................................................................. 5

(vi) infrastructure commitment ............................................................................................................................................... 10

(vii) land meets need and is reasonably priced ..................................................................................................................... 5

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

(3) New Housing Construction/Direct Homeownership Assistance:.

a. Project Need and Design:

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

(ii) housing policies and plan ................................................................................................................................................. 20

(iii) beneficiary identification .................................................................................................................................................. 10

b. Planning and Implementation:

(i) occupancy standards ........................................................................................................................................................... 10

(ii) site acceptability ................................................................................................................................................................. 15

(iii) energy conservation design .............................................................................................................................................. 5

(iv) housing survey ................................................................................................................................................................... 10

(v) cost effectiveness ................................................................................................................................................................ 5

c. Leveraging .................................................................................................................................................................................... 10

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

B. Community Facilities:

(1) Infrastructure:

a. Project Need and Design:

(i) meets an essential need ...................................................................................................................................................... 20

(ii) benefits the neediest .......................................................................................................................................................... 15

(iii) provides infrastructure/health and safety ....................................................................................................................... 25

b. Planning and Implementation:

(i) maintenance and operation plan ........................................................................................................................................ 15

(ii) appropriate and effective design scale and cost .............................................................................................................. 15

c. Leveraging .................................................................................................................................................................................... 10

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

(2) Buildings:

a. Project Need and Design:

(i) meets an essential need ...................................................................................................................................................... 20

(ii) benefits the neediest .......................................................................................................................................................... 10

(iii) provides building/health and safety ................................................................................................................................ 25

(iv) multi-use/multi-benefit ..................................................................................................................................................... 5

b. Planning and Implementation:

(i) maintenance and operation plan ........................................................................................................................................ 15

(ii) appropriate and effective design scale and cost .............................................................................................................. 15

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

C. Economic Development:

(1) Organization ............................................................................................................................................................................... 8

(2) Project Success:

a. market analysis ..................................................................................................................................................................... 15

b. management capacity ........................................................................................................................................................... 15

c. financial analysis .................................................................................................................................................................. 15

(3) Leveraging .................................................................................................................................................................................. 12

(4) Jobs:

a. ICDBG cost/job ..................................................................................................................................................................... 15

b. quality of jobs/training ........................................................................................................................................................ 5

(5) Additional considerations ......................................................................................................................................................... 15

Total points ....................................................................................................................................................................... 100
10464 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

II. Application Process

(a) An application package may be

obtained from the field office in the

following geographic locations:

Eastern Woodland Office of Native

American Programs, Housing and

Community Development Division, 77

West Jackson Blvd., Chicago, Illinois

60604–3507, Telephone: (312) 353–

1282, (all states east of the Mississippi

River, plus Iowa and Minnesota)

Southern Plains Office of Native

American Programs, CPD Branch,

Murrah Federal Bldg., 200 N.W. 5th

Street, Oklahoma City, OK 73102–

3202, Telephone: (405) 231–4101,

(Louisiana, Kansas, Oklahoma, and

Texas, except West Texas)

Northern Plains Office of Native

American Programs, Housing and

Community Development Division,

CPD Staff, First Interstate Tower

North, 633 17th Street, Denver, CO

80202–3607, Telephone: (303) 672–

5462, (Colorado, Montana, Nebraska,

North Dakota, South Dakota, Utah and

Wyoming)

Southwest Office of Native American

Programs, Region IX, CPD Division,

Two Arizona Center, Suite 1650, 400

N. Fifth Street, Phoenix, Arizona

85004–2361, Telephone: (602) 379–

4156, (Arizona, New Mexico,

Southern California, West Texas)

Office of Native American Programs,

CPD Division, Program Management

Team, (San Francisco), Phillip Burton

Federal Bldg. and U.S. Courthouse,

450 Golden Gate Ave., P.O. Box

36003, San Francisco, CA 94102–

3448, Telephone: (415) 556–9200,

(Northern California and Nevada)

Northwest Office of Native American

Programs, CPD Division, Federal

Office Building, 909 First Avenue,

Suite 300, Seattle, WA 98104–1000,

Telephone: (206) 220–5185, (Idaho,

Oregon, Washington)

Alaska Office of Native American

Programs, 949 E. 36th Avenue, Suite

401, Anchorage, AK 99508–4399,

Telephone: (907) 271–4633 (Alaska)

(b) Completed applications must be

submitted to the appropriate field office,

listed above, from which application

information and packages were

obtained.

The Telecommunications Device for

the Deaf (TDD) number is (202) 708–

2565. (This is not a toll-free number.)

(c) Applications must be received by

the appropriate field office no later than

the 3:00 P.M. on the deadline date, May

14, 1995.

III. Application Submission

Requirements and Checklist

(a) General. An applicant shall submit

only one application. The ICDBG grant

amount requested shall not total more

than the grant ceiling. An application

may include an unlimited number of

eligible projects, e.g., housing or public

facilities. Each project within an

application will be rated separately.

(b) Demographic data. Applicants

may submit data that are unpublished

and not generally available in order to

meet the requirements of this section.

The applicant must certify that:

1. Generally available, published data

are substantially inaccurate or

incomplete;

2. Data provided have been collected

systematically and are statistically

reliable;

3. Data are, to the greatest extent

feasible, independently verifiable; and

4. Data differentiate between

reservation and BIA service area

populations, when applicable.

(c) Publication of community

development statement. Applicants

shall prepare and publish or post the

community development statement

portion of their application according to

the citizen participation requirements of

24 CFR 953.604.

(d) Application Submission.

Applicants shall submit an application

to the appropriate field office. The

application shall include:

1. Standard Form 424;

2. Community Development

Statement which includes:

A. Components that address the

relevant selection criteria;

B. A brief description or an updated

description of community development

needs;

C. A brief description of proposed

projects to address needs, including

scope, magnitude, and method of

implementing the project.

D. A schedule for implementing the

project (form HUD–4125);

E. Cost information for each separate

project, including specific activity costs,

administration, planning, and technical

assistance, total HUD share (form HUD–

4123);

3. Certifications (form HUD 4126)

4. Applicant/Recipient Disclosure/

Update Report (form HUD 2880), as

required under subpart C of 24 CFR part

12, Accountability in the Provision of

HUD Assistance.

5. A map showing project location, if

appropriate;

6. If the proposed project will result

in displacement or temporary

relocation, include a statement that

identifies A. the number of persons

(families, individuals, businesses and

nonprofit organizations occupying the

property on the date of the submission

of the application (or date of initial site

control, if later); B. the number to be

displaced or temporarily relocated; C.

the estimated cost of relocation

payments and other services; D. the

source of funds for relocation; and E. the

organization that will carry out the

relocation activities;

(e) Pre-award requirements. 1.

Successful applicants may be required

to provide supporting documentation

concerning the management,

maintenance, operation, or financing of

proposed projects before a grant

agreement can be executed. Applicants

will normally be given no less than

thirty (30) calendar days, to respond to

such requirements. In the event that no

response or an insufficient response is

made within the prescribed time period,

the field office may determine that the

applicant has not met the requirements

and the grant offer may be withdrawn.

The field offices shall require

supporting documentation in those

instances where:

A. Specific questions remain

concerning the scope, magnitude,

timing, or method of implementing the

project; or

B. The applicant has not provided

information verifying the commitment

of other resources required to complete,

operate, or maintain the proposed

project.

2. Grant amounts allocated for

applicants unable to meet pre-award

requirements will be awarded in

accordance with Part I (f) 5 of this

NOFA.

3. New projects may not be

substituted for those originally proposed

in the application.

4. If the required conditions are not

met within the prescribed time, HUD

may unilaterally rescind the grant

award.

IV. Procedural Error and Appeals

With respect to any claims of

procedural error that may be made by

unsuccessful applicants, please note

that a procedural error is, by definition,

an error in process. An example is a

point calculation error which would, if

corrected, raise the total point award for

a project over the cut-off point for

funding. Rating panel judgements made

within the provisions of this NOFA and

the program regulations (24 CFR part

953) are not subject to claims of

procedural error. If a field office makes

a procedural error in the application

review and rating process which, when

corrected, would result in the award of

sufficient points to warrant the funding
Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10465

of an otherwise approvable project, the

field office may fund that project in the

next funding round without further

competition. All appeals must be

submitted to the appropriate field office

within 90 days after the applicant is

notified in writing of a funding decision.

V. Other Matters

(a) Environmental Statement. A

Finding of No Significant Impact with

respect to the environment has been

made in accordance with HUD

regulations at 24 CFR part 50, which

implement section 102(2)(C) of the

National Environmental Policy Act of

1969. The Finding of No Significant

Impact 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, S.W., Washington, D.C.

20410.

(b) Federalism Executive Order. The

General Counsel, as the Designated

Official under section 6(a) of Executive

Order 12612, Federalism, has

determined that this NOFA will not

have substantial, direct effects on states,

on their political subdivisions, or on

their relationship with the Federal

Government, or on the distribution of

power and responsibilities between

them and other levels of government.

While the NOFA will provide financial

assistance to Indian tribes and Alaska

native villages, none of its provisions

will have an effect on the relationship

between the Federal Government and

the states or their political subdivisions.

(c) Family Executive Order. The

General Counsel, as the Designated

Official for Executive Order 12606, The

Family, has determined that the policies

announced in this NOFA would not

have the potential for significant impact

on family formation, maintenance and

general well-being and thus is not

subject to review under the Order.

(d) Registration of Consultants.

Section 13 of the Department of Housing

and Urban Development Act contains

two provisions dealing with efforts to

influence HUD’s decisions with respect

to financial assistance. The first imposes

disclosure requirements on those who

are typically involved in these efforts—

those who pay others to influence the

award of assistance or the taking of a

management action by the Department

and those who are paid to provide the

influence. The second restricts the

payment of fees to those who are paid

to influence the award of HUD

assistance, if the fees are tied to the

number of housing units received or are

based on the amount of assistance

received, or if they are contingent upon

the receipt of assistance.

Section 13 was implemented by final

rule published in the Federal Register

on May 17, 1991 (56 FR 22912), and is

codified as 24 CFR part 86. If readers are

involved in any efforts to influence the

Department in these ways, they are

urged to read the final rule, particularly

the examples contained in Appendix A

of the rule.

Any questions regarding the statute

described above should be directed to

the Director, Office of Ethics, Room

2158, Department of Housing and Urban

Development, 451 Seventh Street, S.W.,

Washington, D.C. 20410. Telephone:

(202) 708–3815; TDD/Voice. (This is not

a toll-free number.) Forms necessary for

compliance with the rule may be

obtained from the local HUD office.

(e) Prohibition of Advance Disclosure

of Funding Decisions. HUD’s regulation

implementing section 103 of the

Department of Housing and Urban

Development Reform Act of 1989 was

published May 13, 1991 (56 FR 22088)

and became effective on June 12, 1991.

That regulation, codified as 24 CFR part

4, applies to the funding competition

announced today. The requirements of

the rule continue to apply until the

announcement of the selection of

successful applicants.

HUD employees involved in the

review of the applications and in the

making of funding decisions are

restrained by part 4 from providing

advance information to any person

(other than an authorized employee of

HUD) concerning funding decisions, or

from otherwise giving any applicant an

unfair competitive advantage. Persons

who apply for assistance in this

competition should confine their

inquiries to the subject areas permitted

under 24 CFR part 4.

Applicants who have questions

should contact the HUD Office of Ethics

(202) 708–3815. (This is not a toll-free

number.) The Office of Ethics can

provide information of a general nature

to HUD employees, as well. However, a

HUD employee who has specific

program questions, such as whether

particular subject matter can be

discussed with persons outside the

Department, should contact his or her

Regional or Field Office Counsel, or

Headquarters counsel for the program to

which the question pertains.

(f) Economic Opportunities for Low

and Very Low Income Persons. All

applicants are herein notified that the

provisions of section 3 of the Housing

and Urban Development Act of 1968, as

amended, and the regulations in 24 CFR

part 135 are applicable to funding

awards made under this NOFA. One of

the purposes of the assistance is to give

to the greatest extent feasible, and

consistent with existing Federal, State,

and local laws and regulations, job

training, employment, contracting and

other economic opportunities to section

3 residents and section 3 business

concerns. Tribes that receive HUD

assistance described in this part shall

comply with the procedures and

requirements of this part to the

maximum extent consistent with, but

not in derogation of, compliance with

section 7(b) of the Indian Selfdetermination and Education Assistance

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

Authority: Title I, Housing and Community

Development Act of 1974, as amended (42

U.S.C. 5301 et seq.); sec. 7(d) of the

Department of Housing and Urban

Development Act (42 U.S.C. 3535(d)); 24 CFR

953.

Dated: February 8, 1995.

Michael B. Janis,

General Deputy Assistant Secretary for Public

and Indian Housing.

[FR Doc. 95–4451 Filed 2–25–95; 8:45 am]

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