23362 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4047–N–01]

Office of the Assistant Secretary for

Fair Housing and Equal Opportunity;

NOFA for Fair Housing Initiatives

Program; FY 1996 Competitive

Solicitation

AGENCY: Office of the Assistant

Secretary for Fair Housing and Equal

Opportunity, HUD.

ACTION: Notice of Funding Availability

(NOFA).

SUMMARY: This NOFA announces the

availability of up to $12,106,000 of 1996

Fiscal Year (FY) funding for the Fair

Housing Initiatives Program (FHIP).

This program assists projects and

activities designed to enforce and

enhance compliance with the Fair

Housing Act and substantially

equivalent State and local fair housing

laws. In the body of this document is

information concerning the purpose of

the NOFA, eligibility, available

amounts, selection criteria, how to

apply for funding, and how selections

will be made.

DATES: An application kit for funding

under this Notice will be available

following publication of the NOFA. The

actual application due date will be

specified in the application kit.

However, applicants will be given at

least 60 days from today’s date, until

July 23, 1996, to submit their

applications. Applications will be

accepted if they are received on or

before the application due date, or are

received within 7 days after the

application due date, but with a U.S.

postmark or receipt from a private

commercial delivery service (such as,

Federal Express or DHL) that is dated on

or before the application due date.

ADDRESSES: To obtain a copy of the

application kit, please write the Fair

Housing Information Clearinghouse,

P.O. Box 9146, McLean, VA 22102, or

call the toll free number 1–800–343–

3442 (voice) or 1–800–290–1617 (TTY).

Please also contact this number if

information concerning this NOFA is

needed in an accessible format.

FOR FURTHER INFORMATION CONTACT:

Sharon Bower, Special Assistant, Office

of Fair Housing Initiatives and

Voluntary Programs, Room 5234, 451

Seventh Street, S.W., Washington, D.C.

20410–2000. Telephone number (202)

708–0800. A telecommunications device

for hearing and speech impaired

persons is available at (202) 708–0800.

(These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection

requirements contained in this NOFA

have been approved by the Office of

Management and Budget in accordance

with the Paperwork Reduction Act of

1995 (44 U.S.C. 3501–3520), and

assigned OMB control number 2529–

0033. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection displays a valid

control number.

I. Purpose and Substantive Description

(a) Authority

Title VIII of the Civil Rights Act of

1968, as amended, 42 U.S.C. 3601–19

(Fair Housing Act), charges the

Secretary of Housing and Urban

Development with responsibility to

accept and investigate complaints

alleging discrimination based on race,

color, religion, sex, handicap, familial

status or national origin in the sale,

rental, or financing of most housing. In

addition, the Fair Housing Act directs

the Secretary to coordinate action with

State and local agencies administering

fair housing laws and to cooperate with,

and render technical assistance to,

public or private entities carrying out

programs to prevent and eliminate

discriminatory housing practices.

Section 561 of the Housing and

Community Development Act of 1987,

42 U.S.C. 3616 note, established the Fair

Housing Initiatives Program (FHIP) to

strengthen the Department’s

enforcement of the Fair Housing Act

and to further fair housing. This

program assists projects and activities

designed to enforce and enhance

compliance with the Fair Housing Act

and substantially equivalent State and

local fair housing laws. Implementing

regulations are found at 24 CFR part

125.

Three general categories of activities

were established at 24 CFR part 125 for

FHIP funding under section 561 of the

Housing and Community Development

Act of 1987: the Administrative

Enforcement Initiative, the Education

and Outreach Initiative, and the Private

Enforcement Initiative. Section 905 of

the Housing and Community

Development Act of 1992 (HCDA 1992)

(Pub. L. 102–550, approved October 28,

1992), amended section 561 by adding

specific eligible applicants and

activities to the Education and Outreach

and Private Enforcement Initiatives, as

well as an entirely new Fair Housing

Organizations Initiative.

More significantly, section 905 has

established FHIP as a permanent

program. The final rule implementing

these statutory amendments was

published on November 27, 1995 (60 FR

58446).

The primary objective of this NOFA is

to provide funds for the purpose of

sustaining and supporting the activities

of fair housing enforcement

organizations. The limited amount of

funding prevents the Department from

embarking on new projects or

initiatives. Instead, it prompts the

Department to promote supporting those

new fair housing enforcement

organizations created under previous

FHIP competitions and giving

preference to those FHIP recipients

whose grants expire between September

30, 1995 and December 31, 1996.

Definitions: The term ‘‘qualified fair

housing enforcement organization’’ (the

only eligible applicants under this

NOFA) is given a specific definition in

section 905. In addition, the November

27, 1995 final rule defines the term

‘‘meritorious claim,’’ which is used in

the statutory definition of ‘‘qualified fair

housing enforcement organization.’’

Applicants should note that the

definition of ‘‘meritorious claim’’ is only

relevant as a part of the definition of

QFHO, and does not impose a limit on

the kinds of activities that may be

funded under FHIP. These definitions,

which apply to this NOFA, are as

follows:

Qualified fair housing enforcement

organization (QFHO) means any

organization, whether or not it is solely

engaged in fair housing enforcement

activities, that—

(1) Is organized as a private, taxexempt, nonprofit, charitable

organization;

(2) Has at least 2 years experience in

complaint intake, complaint

investigation, testing for fair housing

violations and enforcement of

meritorious claims; and

(3) Is engaged in complaint intake,

complaint investigation, testing for fair

housing violations and enforcement of

meritorious claims at the time of

application for FHIP assistance. For the

purpose of meeting the 2-year

qualification period for these activities

it is not necessary that the activities

were conducted simultaneously, as long

as each activity was conducted for 2

years. It is also not necessary for the

activities to have been conducted for 2

consecutive or continuous years. An

organization may aggregate its

experience in each activity over the 3

year period preceding its application to

meet the 2-year qualification period

requirement.

Meritorious claims means

enforcement activities by an
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices 23363

organization that resulted in lawsuits,

consent decrees, legal settlements, HUD

and/or substantially equivalent agency

(under 24 CFR 115.6) conciliations and

organization initiated settlements with

the outcome of monetary awards for

compensatory and/or punitive damages

to plaintiffs or complaining parties, or

other affirmative relief, including the

provision of housing.

On July 14, 1995, HUD announced a

public meeting to be held July 21, 1995

(60 FR 36301). The purpose of the

meeting was to solicit comments on the

FHIP. Additionally, on August 3, 1995,

HUD invited written public comments

on the FHIP (60 FR 39769). During the

comment period, which ended August

15, 1995, HUD received public

comments. HUD is grateful for public

comments and has considered them in

the development of the FY 1996 FHIP

NOFA and Application Kit.

The program components of FHIP are

described in the Catalog of Federal

Domestic Assistance at 14.409,

Education and Outreach Initiative;

14.410, Private Enforcement Initiative;

and 14.413, Fair Housing Organizations

Initiative.

(b) Allocation Amounts

For FY 1996, The Omnibus

Consolidated Rescissions and

Appropriations Act of 1996 (Pub. L.

104–134, approved April 26, 1996)

appropriated $30 million for Fair

Housing activities, of which $17 million

is being made available for the FHIP. Of

this amount, $4,894,000 is being

utilized for the FY 1996 funding of FY

1995 awards. These awards were made

to nine organizations that submitted

applications under the FY 1995 FHIP

NOFA and received scores making them

the next eligible applicants for funding,

but that did not receive FY 1995

funding. The remaining $12,106,000 is

being made available on a competitive

basis to eligible organizations that

submit timely applications and are

selected in response to this NOFA. The

funding selections will be made on the

basis of criteria for eligibility, factors for

award, and completeness of budget

information, and any other factors

described in this NOFA under the

heading, below, Selection Process.

The full cost of FY 1996 multi-year

awards under the Private Enforcement

Initiative will be funded from FY 96

funds. Recipients of 48 month PEI FHIP

grant awards based upon applications

submitted under the FY 1995 FHIP

NOFA, RFA–95–1 (FR–3878, published

April 11, 1995, 60 FR 18444), may not

apply in the FY 1996 competition for

multi-year Private Enforcement

Initiative awards.

The Department retains the right to

shift funds among the FHIP Initiatives

listed below, within statutorily

prescribed limitations. The amounts

included in this NOFA are subject to

change based on fund availability. The

amount of FY 1996 funding available for

the FHIP is divided among three FHIP

Initiatives as follows:

(1) Education and Outreach Initiative

(EOI). The amount of $2,000,000 in FY

1996 funds is being used for the

Education and Outreach Initiative for

single year projects. Of this amount,

$185,677 is made available under this

NOFA for national Education and

Outreach Initiative programs, with an

award cap of $185,677, and $1.0 million

in FY 1996 funds is made available

under this NOFA for regional, local, and

community based programs, with an

award cap of $125,000. Furthermore,

$814,323 will be utilized for the FY

1996 funding of FY 1995 awards.

(2) Private Enforcement Initiative

(PEI). The amount of $12 million in FY

1996 funds is being used for the PEI.

Funds are made available under this

NOFA in the amount of $7,920,323 for

24 to 36 month projects, with an award

cap of $500,000 and with incremental

funding during the life of the award

subject to periodic performance reviews.

The amount of $4,079,677 will be used

for the FY 1996 funding of FY 1995

awards.

Recipients of multi-year PEI awards

based upon applications submitted

under RFA 95–1 for 48-month projects

may not apply for multi-year PEI funds

made available under this NOFA. This

restriction does not apply to 24 month

projects with FY 95 funding.

(3) Fair Housing Organizations

Initiative (FHOI). The amount of

$3,000,000 is made available under this

NOFA for the FHOI, to be used for the

continued development of fair housing

enforcement organizations, with an

award cap of $250,000.

(c) Eligibility

Eligible activities, eligible applicants,

and additional requirements under each

Initiative are listed below. All activities

and materials funded by FHIP must be

reasonably accessible to persons with

disabilities.

(1) Education and Outreach Initiative.

(i) Eligible applicants. The only

organizations that are eligible to receive

FY 1996 funding under the Education

and Outreach Initiative are qualified fair

housing enforcement organizations

(QFHOs);

(ii) Eligible activities. (A) In general.

Each application for Education and

Outreach Initiative funding must

identify if it proposes a national,

regional, local, or community-based

program. The kinds of activities that

may be funded through this Initiative

may include (but are not limited to) the

following:

(1) Activities that support the Fair

Housing planning requirement of State

and local governments subject to the

Consolidated Plan (24 CFR part 91).

These activities include (a) conducting

an analysis of impediments to fair

housing choice and (b) undertaking

actions to eliminate the identified

impediments.

(2) Informing persons with

disabilities, and/or their support

organizations and service providers,

housing providers, and the general

public on the rights of disabled persons

under the Fair Housing Act and on the

location or availability of accessible

housing or the modification of nonaccessible housing;

(3) Providing guidance to housing

providers on meeting their Fair Housing

Act obligation to make reasonable

accommodations for persons with

disabilities;

(4) Providing fair housing counseling

services, including the subjects of preand post-purchase counseling (mortgage

lending, appraisal, and insurance and/or

rental);

(5) Developing informative material

on fair housing rights and

responsibilities;

(6) Developing fair housing and

affirmative marketing instructional

material for educational programs for

housing industry groups;

(7) Providing educational materials,

seminars and working sessions for

schools, civic associations,

neighborhood organizations, and other

groups to support community based

education and outreach efforts;

(8) Developing media campaigns

regarding fair housing;

(9) Bringing housing industry and

civic or fair housing groups together to

identify illegal real estate practices and

to determine how to correct them;

(10) Developing mechanisms for the

identification of, and quick response to,

housing discrimination cases involving

the threat of physical harm;

(11) Developing materials and

providing technical assistance to

support compliance with housing

adaptability and accessibility guidelines

contained in the 1988 Fair Housing

Amendments Act;

(12) Developing or implementing Fair

Housing Month activities.

(B) National programs. (1) Activities

eligible to be funded as national

programs shall be designed to provide a

centralized, coordinated effort for the

development and dissemination of fair
23364 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices

housing media products or educational

materials that may appropriately be

used on a nationwide basis. All

activities listed in paragraph

I.(c)(2)(ii)(A) above are eligible as

national projects.

(2) National program applications will

receive a preference of up to ten

additional points if they:

(i) Demonstrate cooperation with real

estate industry organizations (up to five

points); and/or

(ii) Provide for the dissemination of

educational information and technical

assistance to support compliance with

the housing adaptability and

accessibility guidelines contained in the

Fair Housing Amendments Act of 1988

(up to five points).

(C) Regional, local and communitybased programs. (1) Activities eligible to

be funded as regional, local and

community-based programs include any

of the activities, to be implemented on

a regional, local or community-based

level, listed in paragraph I.(c)(2)(ii)(A)

above, of this NOFA.

(2) For the purposes of this NOFA,

activities that are ‘‘local’’ in scope are

activities that are limited to a single unit

of general local government, meaning a

city, town, township, county, parish,

village, or other general purpose

political subdivision of a State.

Activities that are ‘‘regional’’ in scope

are activities that cover adjoining States

or two or more units of general local

government within a State. Activities

that are ‘‘community based’’ in scope

are those which are focused on

particular neighborhoods within a unit

of general local government.

Community-based programs include

school, church and community

presentations, conferences or other

educational activities.

(iii) Additional requirements. The

following requirements are applicable to

all applications under the Education

and Outreach Initiative:

(A) All projects must address or have

relevance to housing discrimination

based on race, color, religion, sex,

handicap, familial status or national

origin.

(B) Projects may range in length from

twelve to eighteen months in duration.

National projects have an award cap of

$185,677. Regional, local and

community based projects have an

award cap of $125,000. Applications

which request FHIP funding in excess of

the award cap will be deemed ineligible.

(C) Projects that appear to be aimed

solely or primarily at research or datagathering, including surveys and

questionnaires, will not be eligible

under this NOFA. Such data-gathering

activities require OMB approval under

the Paperwork Reduction Act before

commencement of the activity.

(D) All proposals must contain a

description of how the activities or the

final products of the projects can be

used by other agencies and

organizations and what modifications, if

any, would be necessary for that

purpose.

(E) Coordination of activities. Each

non-governmental applicant for funding

under the Education and Outreach

Initiative Regional, Local and

Community-Based Component that is

located within the jurisdiction of a State

or local enforcement agency or agencies

administering a fair housing law that

has been certified by the Department

under 24 CFR part 115 as being a

substantially equivalent fair housing

law must provide, with its application,

documentation (such as letters between

the two organizations) that it has

consulted with the agency or agencies to

coordinate activities to be funded under

the Education and Outreach Initiative.

This coordination will ensure that the

activities of one group will minimize

duplication and fragmentation of

activities of the other. Failure to submit

the documentation required by this

section will be treated as a technical

deficiency in accordance with section

IV., below, of this NOFA.

(F) Every application must include as

one of its activities a procedure for

referring persons with Fair Housing

complaints to State or local agencies

administering substantially equivalent

laws, private attorneys, HUD or the

Department of Justice for further

enforcement processing.

(2) Private Enforcement Initiative

(PEI).

(i) Eligible applicants. The only

organizations that are eligible to receive

FY 1996 funding assistance under the

PEI are qualified fair housing

enforcement organizations (QFHOs).

NOTE: Recipients of multi-year (48

month) PEI FHIP grant awards based

upon applications submitted under

RFA–95–1 may not apply in the FY

1996 competition for multi-year PEI

awards.

(ii) Eligible activities. Applications are

solicited for multi-year project

proposals as described in this NOFA.

Applications may designate up to 20%

of requested funds to conduct education

and outreach to promote awareness of

the services provided by the project, but

such promotion must be necessary for

the successful implementation of the

project.

(A) Bonus Points. PEI applications

from FHIP grant recipients whose

period of performance for all FHIP

grants expired/will expire between

September 30, 1995 and December 31,

1996, will receive a bonus of ten

additional points.

(B) Project applications may involve,

but are not limited to, the following:

(1) Discovering and providing

remedies for discrimination in the

public or private real estate markets and

real estate-related transactions,

including, but not limited to, the

making or purchasing of loans and the

provision of other financial assistance

for sales and rentals of housing, such as

property insurance, appraisal practices,

and housing advertising;

(2) Conducting investigations of

systemic housing discrimination for

further enforcement processing by HUD

or State or local agencies which

administer laws that are substantially

equivalent to the Fair Housing Act, or

for referral to private attorneys or the

Department of Justice;

(3) Professionally conducting testing

or other investigative support for

administrative and judicial enforcement

of fair housing laws;

(4) Linking fair housing organizations

regionally in enforcement activities

designed to combat broader housing

market discriminatory practices;

(5) Building the capacity to

investigate, through testing and other

investigative methods, housing

discrimination complaints covering all

protected classes, including persons

with mental and physical disabilities;

(6) Carrying out special projects,

including the development of

prototypes to respond to new or

sophisticated forms of discrimination

against persons protected under title

VIII, such as in the areas of independent

living and architectural barriers;

(7) Providing funds for the costs and

expenses of litigating fair housing cases,

including expert witness fees.

(iii) Additional requirements.

(A) Testers in testing activities funded

with PEI funds must not have prior

felony convictions or convictions of

crimes involving fraud or perjury, and

they must receive training or be

experienced in testing procedures and

techniques. Testers and the

organizations conducting tests, and the

employees and agents of these

organizations may not:

(1) Have an economic interest in the

outcome of the test, without prejudice to

the right of any person or entity to

recover damages for any cognizable

injury;

(2) Be a relative of any party in a case;

(3) Have had any employment or

other affiliation, within one year, with

the person or organization to be tested;

or
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices 23365

(4) Be a licensed competitor of the

person or organization to be tested in

the listing, rental, sale, or financing of

real estate.

(B) Multi-year projects must be for

24–36 months in duration, with an

award cap of $500,000. Successful

projects will receive incremental

funding during the life of the award

subject to periodic performance reviews.

Applications which request FHIP

funding in excess of the award cap will

be deemed ineligible.

(C) Projects that appear to be aimed

solely or primarily at research or datagathering, including surveys and

questionnaires unrelated to existing or

planned fair housing enforcement

programs, will not be eligible for

funding under this NOFA. Datagathering activities require OMB

approval under the Paperwork

Reduction Act before commencement of

the activity.

(D) In accordance with 24 CFR

125.104(f), no recipient of assistance

under the PEI may use any funds

provided by the Department for the

payment of expenses in connection with

litigation against the United States.

(E) Recipients of funds under the

Private Enforcement Initiative shall be

required to record, in a case tracking log

(or Fair Housing Enforcement Log) to be

supplied by HUD, information

appropriate to the funded project

relating to the number of complaints of

discrimination received; the basis of

these complaints; the type and number

of tests utilized in the investigation of

each allegation; the time for case

processing, including administrative or

judicial proceedings; the cost of testing

activities and case processing; and case

outcome or relief provided. The

recipient must agree to make this log

available to HUD.

(F) All proposals must certify that the

applicant will not solicit funds from or

seek to provide fair housing educational

or other services or products for

compensation, directly or indirectly, to

any person or organization which has

been the subject of testing by the

applicant during a 12 month period

following the test. This requirement

does not preclude settlements based on

investigative findings.

(3) Fair Housing Organizations

Initiative (FHOI).

(i) Purpose: Continued Development

of Existing Organizations.

(A) Eligible applicants. The only

organizations eligible under this NOFA

to apply under this purpose of the FHOI

are: qualified fair housing enforcement

organizations (QFHOs).

(B) Eligible activities. Eligible

activities for funding under this purpose

of the FHOI are any activities listed as

eligible under the Private Enforcement

Initiative in section I.(c)(2)(ii) of this

NOFA and carried out as twelve to

eighteen month projects. However, all

applications must be for the sole

purpose of providing direct services/

support to sustain the operations of the

new fair housing enforcement

organizations created under the FY 93

FHIP NOFA (58 FR 68000, December 22,

1993) and the FY 94 FHIP NOFA (59 FR

25532, May 16, 1994). (The full listing

of these organizations will be included

in the Application Kit.)

The list of eligible activities are

examples only, and is not all inclusive.

In addition to the examples listed in

section I.(c)(2)(ii), other eligible

activities include:

(1) Technical assistance and

mentoring services for the new

organization(s);

(2) Training for the staff of the new

organization(s);

(3) Up to 20% of requested funds to

conduct education and outreach to

promote awareness of the services

provided by the new organization(s), but

such promotion must be necessary for

the successful implementation of the

project;

(4) Other costs relating to the

operations of the new organization(s):

(i) Salaries and fringe benefits;

(ii) Rent, leases, supplies and other

direct costs;

(iii) Travel connected with funded

activities;

(iv) Testing and litigation expenses,

and

(v) Indirect costs.

(C) Additional Requirements. The

following requirements apply to

activities funded under the Continued

Development of Existing Organizations

purpose of the FHOI:

(1) Limitation on Sponsorship.

Applicants may only propose to support

up to two (2) new fair housing

enforcement organizations under a

single award. Applicants must include

with their applications letters of support

for the proposed activities from the new

organization(s) identified for

sponsorship and detailed budgets for

both the applicant and the new

organization(s).

(2) Limitation on Awards. The

limitation of receiving one award cited

in this NOFA at I.(d)(3) will be modified

for applicants that submit successful

applications under the FHOI. In such

cases, FHOI recipients will also be

eligible to receive one additional award

under either the PEI or EOI.

(3) Eligible applications involving the

same new fair housing enforcement

organization(s). If more than one eligible

application proposes to support the

same new organization(s), the applicant

receiving the higher overall score will

be selected for funding.

(4) Capacity building. Capacity

building activities must be directed

toward building capacity of the new fair

housing enforcement organization(s) to

provide fair housing enforcement. Thus,

applications which include nonenforcement related activities as a part

of the project will not be approved and

corresponding budget reductions will be

made to the award.

(5) Operating budget limitation.

Funding provided under this purpose of

the FHOI may not exceed more than 50

percent of the operating budget of a

recipient organization for any one year.

For purposes of the limitation in this

paragraph, operating budget means the

applicant’s total planned budget

expenditures from all sources, including

the value of in-kind and monetary

contributions, in the year for which

funding is sought. Additionally, the

grant recipient is limited to expending

no more than 25% of the amount

requested in the application for the

purpose of covering the grantee’s costs

in providing sponsorship support to the

new organization(s).

(6) Term of grant. One-year projects

may be from twelve to eighteen months

in duration, with an award cap of

$250,000. Applications which request

FHIP funding in excess of the award cap

will be deemed ineligible.

(7) Testers in testing activities funded

with FHIP funds must not have prior

felony convictions or convictions of

crimes involving fraud or perjury, and

they must receive training or be

experienced in testing procedures and

techniques. Testers and the

organizations conducting tests, and the

employees and agents of these

organizations may not:

(i) Have an economic interest in the

outcome of the test, without prejudice to

the right of any person or entity to

recover damages for any cognizable

injury;

(ii) Be a relative of any party in a case;

(iii) Have had any employment or

other affiliation, within one year, with

the person or organization to be tested;

or

(iv) Be a licensed competitor of the

person or organization to be tested in

the listing, rental, sale, or financing of

real estate.

(8) Projects that appear to be aimed

solely or primarily at research or datagathering including surveys and

questionnaires will not be eligible for

funding under this NOFA. Datagathering activities require OMB

approval under the Paperwork
23366 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices

Reduction Act before commencement of

the activity.

(9) Each applicant under the

continued development of existing

organizations purpose of the Fair

Housing Organizations Initiative must

submit an operating budget that

describes the applicant’s total planned

expenditures from all sources, including

the value of in-kind and monetary

contributions, in the 12–18 months for

which funding is sought. This operating

budget will be used for the purposes of

determining the extent of the 50%

funding limitation on operating

expenses.

(10) All proposals for testing under

the Fair Housing Organizations

Initiative must certify that the applicant

will not solicit funds from or seek to

provide fair housing educational or

other services or products for

compensation, directly or indirectly, to

any person or organization which has

been the subject of testing by the

applicant during a 12 month period

following the test. This does not

preclude settlement based on

investigative findings.

(d) Selection Criteria/Rating Factors

(1) Selection Criteria for Rating

Applications for Assistance

In addition to the preference points

indicated in section I.(c)(1)(ii)(B)(2) for

particular activities, and in section

I.(c)(1)(ii)(A) for PEI applications from

FHIP grant recipients whose period of

performance for all FHIP grants expired/

will expire, all projects proposed in

applications will be rated on the basis

of the following criteria for selection:

(i) The anticipated impact of the

project proposed on the concerns

identified in the application. (20 points)

In determining the anticipated impact of

the proposed project, HUD will consider

the degree to which a proposed project

addresses problems and issues that are

significant fair housing problems and

issues, as explained in the application,

or based upon other information

available to HUD. (The clarity and

thoroughness of the project description

can be considered in this

determination.) This criterion will be

judged on the basis of the applicant’s

submissions in response to paragraph

III.(a)(1) of this NOFA under the

heading ‘‘Checklist of Application

Submission Requirements.’’

(ii) The extent to which the project

will provide benefits in support of fair

housing after funded activities have

been completed. (20 points) In

determining the extent to which the

project will provide benefits after

funded activities have been completed,

HUD will consider the degree to which

the project will be of continuing use in

dealing with housing discrimination

after funded activities have been

completed. This criterion will be judged

on the basis of the applicant’s

submissions in response to paragraphs

III.(a)(6) and III.(a)(7) of this NOFA

under the heading ‘‘Checklist of

Application Submission Requirements.’’

(iii) The extent to which the project

will provide the maximum impact on

the concerns identified in a costeffective manner. (20 points) In

determining the extent to which the

project will provide the maximum

impact on the concerns identified in a

cost effective manner, HUD will

consider the quality and reasonableness

of the proposed activities, timeline and

budget for implementation and

completion of the project. HUD will

consider as well the adequacy and

clarity of proposed procedures to be

used by the agency for monitoring the

progress of the project and ensuring its

timely completion. These procedures

may consist of a system for checking

whether or not the milestones

established by the project’s timeline are

being met. The applicant’s capability in

handling financial resources (e.g.,

adequate financial control procedures,

accounting procedures) will be taken

into account as part of the assessment.

This may be evidenced by the

applicant’s financial management of

previous FHIP grants or other civil

rights project management, a

certification from the cognizant auditor,

and other documentation. This criterion

will be judged on the basis of the

applicant’s submissions in response to

paragraphs III.(a)(2), and III.(a)(5) of this

NOFA under the heading ‘‘Checklist of

Application Submission Requirements.’’

(iv) The extent to which the

applicant’s professional and

organizational experience will further

the achievement of project goals. (30

points) In determining the extent to

which the applicant’s professional and

organizational experience will further

the achievement of the project’s goals,

HUD will consider the applicant’s

experience in formulating and carrying

out programs to prevent or eliminate

discriminatory practices, including the

applicant’s management and

performance under past and current

FHIP or other civil rights projects, the

experience and qualifications of existing

personnel identified for key positions,

or a description of the qualifications of

new staff that will be hired and the

experience of subcontractors/

consultants. For organizations

submitting an application under the

Education and Outreach Initiative, HUD

will consider both fair housing

experience and experience in

implementing education, outreach or

public information programs. This

criterion will be judged on the basis of

the applicant’s submissions in response

to paragraph III.(a)(3) of this NOFA

under the heading ‘‘Checklist of

Application Submission Requirements.’’

(v) The extent to which the project

utilizes other public or private resources

that may be available. (10 points) Both

monetary and in-kind resources

identified in the application are eligible

for determining the extent to which

other public or private resources will be

used. The resources that will be

considered must be targeted specifically

for the proposed project, and must be

over and above the resources available

to the applicant as a part of its usual,

non-project operations for such

expenses as salaries, equipment,

supplies, and rent. This criterion will be

judged on the basis of the applicant’s

submissions in response to paragraph

III.(a)(4) of this NOFA under the

heading ‘‘Checklist of Application

Submission Requirements.’’

(2) Selection Process

Each application for funding will be

evaluated competitively, and awarded

points based on the Selection Criteria

for Rating Applications for Assistance

identified in section I.(d)(1) of this

NOFA. The final decision rests with the

Assistant Secretary for Fair Housing and

Equal Opportunity or designee. After

eligible applications are evaluated

against the factors for award and

assigned a score, they will be organized

by rank order. The rank ordering will be

done separately for four categories: PEI;

EOI-National; EOI-Regional, local and

community-based; and FHOI-Continued

Development of Existing Organizations.

Awards for each category listed above

will be funded in rank order until all

available funds have been obligated, or

until there are no acceptable

applications, with one exception. If

more than one eligible application

under the FHOI competition proposes to

support the same new fair housing

enforcement organization(s), the

applicant receiving the higher overall

score will be selected for funding. The

Assistant Secretary will have the

discretion to make awards out of rank

order to provide broader geographic

representation among funded

organizations and to provide

enforcement of fair housing rights for all

protected classes in a particular

geographic region. When there is a tie in

the overall total score, the award will be

made to the applicant that receives a

total higher number of cumulative
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices 23367

points under Selection Criteria (i) and

(iv) of section I.(d)(1), above. If these

scores are identical then geographical

consideration will be the next variable,

followed by the grant with the lower

request for FHIP funding.

(3) Applicants Limited to a Single

Award

Applicants may apply for funding for

more than one project or activity.

However, applicants are limited to one

award under this NOFA, with one

exception. The limitation of receiving

one award will be modified for

applicants that submit successful

applications under the FHOI. In such

cases, FHOI recipients will also be

eligible to receive one additional award

under either the PEI or EOI. In all other

cases, if more than one eligible

application is submitted by an applicant

and both are within funding range, the

Department will select the application

which the applicant has indicated as its

preference for award should more than

one application submitted be within

funding range.

(4) Independence of Awards

Each project or activity proposed in

an application must be independent and

capable of being implemented without

reliance on the selection of other

applications submitted by the applicant

or other applicants. However, this

provision does not preclude an

applicant from submitting a proposal

which includes other organizations as

subcontractors to the proposed project

or activity.

(5) Project Starting Period

The Department has determined that

all applications must propose that the

project will begin during the period

October 1–December 1, 1996.

(6) Page Limitation

Applicants will be limited to 10 pages

of narrative responses for each of the

five selection criteria (this does not

include forms or documents which are

required under each criterion).

Furthermore, brochures, news articles or

other examples included in the

application will not be considered in

the evaluation process. Applicants that

exceed the 10-page limit for each

criterion will only have the first 10

pages evaluated for each criterion.

Failure to provide narrative responses to

all five criteria will result in an

application being deemed as ineligible.

(e) Applicant Notification and Award

Procedures

(1) Notification

No information will be available to

applicants during the period of HUD

evaluation, approximately 90 days,

except for notification in writing to

those applicants that are determined to

be ineligible or that have technical

deficiencies in their applications that

may be corrected. Selectees will be

announced by HUD upon completion of

the evaluation process, subject to final

negotiations and award.

(2) Negotiations

After HUD has ranked the

applications and made an initial

determination of applicants whose

scores are within the funding range (but

before the actual award), HUD may

require that applicants in this group

participate in negotiations to determine

the specific terms of the cooperative or

grant agreement. In cases where it is not

possible to conclude the necessary

negotiations successfully, awards will

not be made.

If an award is not made to an

applicant whose application is in the

initial funding threshold because of an

inability to complete successful

negotiations, and if funds are available

to fund any applications that may have

fallen outside the initial funding

threshold, HUD will select the next

highest ranking applicant and proceed

as described in the preceding paragraph.

(3) Funding Instrument

HUD expects to award a cost

reimbursable or fixed-price cooperative

or grant agreement to each successful

applicant. HUD reserves the right,

however, to use the form of assistance

agreement determined to be most

appropriate after negotiation with the

applicant.

(4) Reduction of Requested Grant

Amounts and Special Conditions

HUD may approve an application for

an amount lower than the amount

requested, fund only portions of an

application, withhold funds after

approval, and/or require the grantee to

comply with special conditions added

to the grant agreement, in accordance

with 24 CFR 84.14, the requirements of

this NOFA, or where:

(i) HUD determines the amount

requested for one or more eligible

activities is unreasonable or

unnecessary;

(ii) The applicant has proposed an

ineligible activity in an otherwise

eligible project;

(iii) Insufficient amounts remain in

that funding round to fund the full

amount requested in the application and

HUD determines that partial funding is

a viable option;

(iv) The applicant has demonstrated

an inability to manage HUD grants,

particularly Fair Housing Initiatives

Program grants; or

(v) For any other reason where good

cause exists.

(5) Performance Sanctions

A recipient failing to comply with the

procedures set forth in its grant

agreement will be liable for such

sanctions as may be authorized by law,

including repayment of improperly used

funds, termination of further

participation in the FHIP, and denial of

further participation in programs of the

Department or of any Federal agency.

II. Application Process

An application kit is required as the

formal submission to apply for funding.

The kit includes information on the

Management Work Plan and Budget for

activities proposed by the applicant. An

application may be obtained by writing

the Fair Housing Information

Clearinghouse, P.O. Box 9146, McLean,

VA 22102, or by calling the toll free

number 1–800–343–3442 (voice) or 1–

800–290–1617 (TTY). To ensure a

prompt response, it is suggested that

requests for application kits be made by

telephone.

Completed applications are to be

submitted to: Maxine B. Cunningham,

Office of Fair Housing and Equal

Opportunity, Department of Housing

and Urban Development, Room 5234,

451 Seventh Street, S.W., Washington,

DC 20410.

The application due date will be

specified in the application kit.

However, applicants will be given at

least 60 days from today’s date, until

July 23, 1996, to submit their

applications. Applications will be

accepted if they are received on or

before the application due date, or are

received within 7 days after the

application due date, but with a U.S.

postmark or receipt from a private

commercial delivery service (such as,

Federal Express or DHL) that is dated on

or before the application due date.

The application deadline is firm as to

date. In the interest of fairness to all

competing applicants, the Department

will treat as ineligible for consideration

any application that is received after the

deadline. Applicants should take this

practice into account and make early

submission of their materials to avoid

any risk of loss of eligibility brought

about by unanticipated delays or other

delivery-related problems. A
23368 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices

transmission by facsimile machine

(‘‘FAX’’) will not constitute delivery.

An applicant may apply for funding

for more than one project or activity, but

a separate application must be

submitted for each of the following

categories of funding:

(1) National programs under the

Education and Outreach Initiative;

(2) Regional or local and communitybased activities under the Education

and Outreach Initiative;

(3) Multi-year projects under the

Private Enforcement Initiative; and

(4) Continued Development of

Existing Organizations activities under

the Fair Housing Organizations

Initiative.

Although a separate application is

required for each funding category, an

application may propose more than one

type of eligible activity under each

category. For example, both production

and distribution of a public service

message may be proposed in a single

application for a national program

under the Education and Outreach

Initiative.

Applicants must submit all

information required in the application

kit and must include sufficient

information to establish that the

applicant and its application meet

eligibility requirements as set forth

above and the application meets the

selection criteria set forth in section

I.(d), above, of this NOFA.

III. Checklist of Application

Submission Requirements

(a) General requirements. The

application kit will contain a checklist

of application submission requirements

to complete the application process.

Each application for FHIP funding must

contain the following items:

(1) A description of the activities

proposed for funding, and the practice

or practices at the community, local,

regional or national level that have

adversely affected the achievement of

the goal of fair housing, and that will be

addressed by the proposed activities.

This description must include a

discussion and analysis of the housing

practices identified, including available

information and studies relating to

discriminatory housing practices and

their historical background, and

relevant demographic data indicating

the nature and extent of the impact of

the described practices on persons

seeking dwellings or services related to

the sale, rental or financing of

dwellings, in the general location where

the applicant proposes to undertake

activities.

(2) A budget—which must include a

set-aside of $5,000 for single-year

projects and $10,000 for multi-year

projects to be used for travel and

associated costs for training sponsored

or approved by the Department—and a

timeline for the implementation of the

proposed activities, consisting of a

description of the specific activities to

be conducted with FHIP funds, the

geographic areas to be served by the

activities, any reports to be produced in

connection with the activities, and a

schedule for the implementation and

completion of the activities.

(3) A description of the applicant’s

experience in formulating or carrying

out programs to prevent or eliminate

discriminatory housing practices or in

implementing other civil rights

programs, the experience and

qualifications of existing personnel

identified for key positions, or a

description of the qualifications of new

staff to be hired, and the experience of

subcontractors/consultants.

(4) A statement indicating the need

for FHIP funding in support of the

proposed project and an estimate of

other public or private resources that

will be used to assist the proposed

activities.

(5) A description of the procedures to

be used by the applicant for monitoring

the progress of the proposed activities

and the applicant’s planned or

implemented financial control

procedures that will demonstrate the

applicant’s capability in managing

financial resources.

(6) A description of the fair housing

benefits that successful completion of

the project will produce, and the

indicators by which these benefits are to

be measured.

(7) A description of the degree to

which the project will be of continuing

use in addressing housing

discrimination after funded activities

have been completed;

(8) HUD Form 2880, Applicant

Disclosures;

(9) Fair Housing Organizations

Initiative applicants must include with

their applications letters of support for

the proposed activities from the new

organization(s) identified for

sponsorship, and detailed budgets for

both the applicant and the new

organization(s).

(10) A listing of any current or

pending grants or contracts, or other

business or financial relationships or

agreements, to provide training,

education, and/or self-testing services

between the applicant and any entity or

organization of entities involved in the

sale, rental, advertising or provision of

insurance, brokerage or lending services

for housing. The listing must include

the name and address of the entity or

organization; a brief description of the

services being performed or for which

negotiations are pending; the dates for

performance of the services; and the

amount of the contract or grant. This

listing must be updated during the grant

negotiation period, at the end of the

grant term, and for grants that will run

for more than twelve months, at the end

of each year of the multi-year project.

(11) The applicant must submit a

certification and disclosure in

accordance with the requirements of

section 319 of the Department of the

Interior Appropriations Act (Pub. L.

101–121, approved October 23, 1989), as

implemented in HUD’s interim final

rule at 24 CFR part 87, published in the

Federal Register on February 26, 1990

(55 FR 6736). This statute generally

prohibits recipients and subrecipients of

Federal contracts, grants, cooperative

agreements and loans from using

appropriated funds for lobbying the

Executive or Legislative Branches of the

Federal Government in connection with

a specific contract, grant, or loan. If

warranted, the applicant should include

the Disclosure of Lobbying Activities

form (SF–LLL).

(12) Prior to award execution,

successful applicants must submit a

certification that they will comply with

the certification requirements contained

in the application kit.

(13) Each application must include

documentation which demonstrates that

the applicant meets all of the

requirements of a qualified fair housing

enforcement organization (QFHO), as

defined under the heading Definitions,

in section I.(a), above, of this NOFA.

IV. Corrections to Deficient

Applications

Applicants will not be disqualified

from being considered for funding

because of technical deficiencies in

their application submission, e.g., an

omission of information such as

regulatory/program certifications, or

incomplete signatory requirements for

application submission.

HUD will notify an applicant in

writing of any technical deficiencies in

the application. The applicant must

submit corrections within 14 calendar

days from the date of HUD’s letter

notifying the applicant of any technical

deficiency.

The 14-day correction period pertains

only to non-substantive, technical

deficiencies or errors. Technical

deficiencies relate to items that:

1. Are not necessary for HUD review

under selection criteria/ranking factors;

and

2. Would not improve the substantive

quality of the proposal.
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices 23369

V. Other Matters

Prohibition Against Lobbying Activities

The use of funds awarded under this

NOFA is subject to the disclosure

requirements and prohibitions of

Section 319 of the Department of

Interior and Related Agencies

Appropriations Act for Fiscal Year 1990

(31 U.S.C. 1352) (the ‘‘Byrd

Amendment’’) and the implementing

regulations at 24 CFR part 87. These

authorities prohibit recipients of Federal

contracts, grants, or loans from using

appropriated funds for lobbying the

Executive or Legislative branches of the

Federal government in connection with

a specific contract, grant, or loan. The

prohibition also covers the awarding of

contracts, grants, cooperative

agreements, or loans unless the

recipient has made an acceptable

certification regarding lobbying. Under

24 CFR part 87, applicants, recipients

and sub-recipients of assistance

exceeding $100,000 must certify that no

Federal funds have been or will be spent

on lobbying activities in connection

with the assistance.

Environmental Impact

A Finding of No Significant Impact

with respect to the environment has

been made in accordance with the

Department’s regulations at 24 CFR part

50 which implement section 102(2)(C)

of the National Environmental Policy

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

Finding of No Significant Impact is

available for public inspection between

7:30 a.m. and 5:30 p.m. weekdays at the

Office of the Rules Docket Clerk, Room

10276, Department of Housing and

Urban Development, 451 Seventh Street,

S.W., Washington, DC 20410.

Executive Order 12606, The Family

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that the policies announced

in this Notice would not have a

significant impact on the formation,

maintenance, and general well-being of

families except indirectly to the extent

of the social and other benefits expected

from this program of assistance.

Executive Order 12612, Federalism

The General Counsel has determined,

as the Designated Official for HUD

under section 6(a) of Executive Order

12612, Federalism, that the policies

contained in this Notice will not have

federalism implications and, thus, are

not subject to review under the Order.

The promotion of fair housing policies

is a recognized goal of general benefit

without direct implications on the

relationship between the national

government and the states or on the

distribution of power and

responsibilities among various levels of

government.

Drug-Free Workplace Certification

The Drug-Free Workplace Act of 1988

requires grantees of Federal agencies to

certify that they will provide drug-free

workplaces. Thus, each applicant must

certify that it will comply with drug-free

workplace requirements in accordance

with 24 CFR part 24, subpart F.

Accountability in the Provision of HUD

Assistance

Section 102 of the Department of

Housing and Urban Development

Reform Act of 1989 (HUD Reform Act)

and the final rule codified at 24 CFR

part 4, subpart A, published on April 1,

1996 (61 FR 1448), contain a number of

provisions that are designed to ensure

greater accountability and integrity in

the provision of certain types of

assistance administered by HUD. On

January 14, 1992, HUD published, at 57

FR 1942, a notice that also provides

information on the implementation of

section 102. The documentation, public

access, and disclosure requirements of

section 102 are applicable to assistance

awarded under this NOFA as follows:

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.

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

CFR part 15.

Section 103 HUD Reform Act. HUD’s

regulation implementing section 103 of

the Department of Housing and Urban

Development Reform Act of 1989,

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

applications and in the making of

funding decisions are limited 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 or employees who have

ethics related questions should contact

the HUD Office of Ethics (202) 708–

3815. (This is not a toll-free number.) A

telecommunications device for persons

with speech and hearing impairments is

available at 1–800–877–8339. For HUD

employees who have specific program

questions, such as whether particular

subject matter can be discussed with

persons outside HUD, the employee

should contact the appropriate Field

Office Counsel, or Headquarters counsel

for the program to which the question

pertains.

Authority: 42 U.S.C. 3601–3619; 42 U.S.C.

3616 note.

Dated: May 10, 1996.

Elizabeth K. Julian,

Assistant Secretary for Fair Housing and

Equal Opportunity.

[FR Doc. 96–13073 Filed 5–23–96; 8:45 am]

BILLING CODE 4210–28–P