36254 Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4062–N–01]

Office of the Assistant Secretary for

Community Planning and

Development; Self-Help

Homeownership Opportunity Program

(SHOP) Notice of Funding Availability

and Guidelines

AGENCY: Office of the Assistant

Secretary for Community Planning and

Development, HUD.

ACTION: Notice of funding availability

for fiscal year 1996.

SUMMARY: This NOFA announces the

availability of $15 million in funding for

the Self-Help Homeownership

Opportunity Program (SHOP), and

contains information concerning basic

program requirements, eligible

applicants, funding available for grants,

and application requirements and

procedures. The NOFA is issued under

section 11 of the Housing Opportunity

Program Extension Act of 1996 (the

‘‘Extension Act’’). The program is being

implemented through this NOFA and no

application materials or forms are

required other than as set out in this

NOFA. No separate implementing

regulations will be issued. Applicants

are advised to consult section 11 of the

Extension Act in order to prepare an

application that is consistent with its

requirements, some of which may not be

repeated in this NOFA. Failure to follow

the instructions and procedures

contained in this NOFA or lack of

adherence to the program requirements

found in section 11 of the Extension Act

will result in an application being

rejected by HUD.

DATES: Completed applications for

SHOP grants must be physically

received by 4:30 p.m. Eastern Daylight

Time on August 8, 1996. It is not

sufficient for an application to bear a

postmark within the deadline.

Applications sent by facsimile (FAX)

will not be accepted. HUD will not

waive this deadline for actual

submission for any reason. The

application deadline is firm as to date

and hour. 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 policy into account and

consider early submission to avoid any

risk of loss of eligibility brought about

by any unanticipated or delivery-related

problems.

ADDRESSES: An original and two copies

of the completed application must be

submitted to HUD Headquarters, Office

of Community Planning and

Development, Processing and Control

Unit, Room 7251, 451 Seventh Street,

SW, Washington, DC 20410, ATTN:

Self-Help Program. (A 3.5≥ computer

diskette containing the complete

application may be substituted for one

of the paper copies.)

FOR FURTHER INFORMATION CONTACT:

Clifford Taffet, Office of Affordable

Housing Programs, Department of

Housing and Urban Development, room

7168, 451 Seventh Street, SW,

Washington, DC 20410; telephone (202)

708–3226 EXT. 4589; (TTY (202) 708–

2565). (These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection

requirements contained in this NOFA

(FR–4062) have been submitted to the

Office of Management and Budget

(OMB) for emergency processing under

the Paperwork Reduction Act of 1995

(44 U.S.C. 3501–3520) and 5 CFR

1320.13, and have been assigned OMB

control number 2506–0157, expires

September 30, 1996. 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.

This information collection is

required in connection with the

issuance of this NOFA, announcing the

availability of $15 million for grants to

encourage innovative homeownership

opportunities through the provision of

self-help housing where the homeowner

contributes a significant amount of

sweat equity toward construction of the

dwellings. The information collection is

needed so that HUD staff may determine

the eligibility, qualifications and

capability of applicants to carry out selfhelp and volunteer labor

homeownership programs. HUD will

review the information provided by the

applicants against the selection criteria

contained in the NOFA in order to rate

and rank the applications and select the

best and most qualified individual

applications for funding. The selection

criteria are: (1) Operational capability

and experience; (2) financial capability

and experience; (3) quality of program

design; (4) leveraging of public/private

resources; and (5) Empowerment Zone/

Enterprise Community support.

The information is public information

and is not subject to any confidentiality

requirements other than the prohibition

against advance information on funding

decisions (see section III of this NOFA).

The estimates of the total number of

hours needed to prepare the information

collection including number of

respondents, frequency of response, and

hours of response are as follows:

Number of respondentsFrequency of

responses

Hours per response Burden hours

Application Development .................................................................................. 10 1 80 800

Total Estimated Burden Hours: 800

The public is requested to send any

comments concerning the accuracy of

this burden estimate and any

suggestions for reducing this burden to:

Kay Weaver, Departmental Reports

Liaison Officer, Office of

Administration, Department of Housing

& Urban Development, 451 7th Street,

SW, Room 4176, Washington, DC 20410.

I. Purpose and Substantive Description

A. Authority

The funding made available under

this NOFA is authorized by Section 11

of the Housing Opportunity Program

Extension Act of 1996 (Pub. L. 104–120,

110 Stat 834, approved March 28, 1996).

No separate implementing regulations

will be issued. HUD may issue

additional guidance containing more

detailed policy than provided in this

NOFA with respect to various aspects of

the program, the management of funds,

the environmental clearance process

and similar matters, as necessary.

B. Purpose and Program Requirements

The Self-Help Homeownership

Opportunity Program is intended to

facilitate and encourage innovative

homeownership opportunities through

the provision of self-help housing where

the homebuyer contributes a significant

amount of sweat-equity toward the

construction of the new dwelling. This
Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Notices 36255

program will increase homeownership

levels and is in furtherance of the

National Homeownership Strategy. The

strategy is a five-year blueprint for

cooperative actions identified by 56

private and public organizations that is

intended to achieve an all-time high

level of homeownership by the year

2000. The National Homeownership

Strategy, ‘‘Partners in the American

Dream’’ was prepared by the

Department and its Partners in response

to a request from President Clinton in

1995. These decent, safe, and sanitary

nonluxury dwellings must be made

available to eligible homebuyers at

prices below the prevailing market

prices. Eligible homebuyers are lowincome families (families whose annual

incomes do not exceed 80 percent of the

median income for the area, as

determined by HUD) who are unable to

otherwise afford to purchase a dwelling.

Activities to develop housing assisted

under this NOFA must involve

community participation, by providing

for the utilization of volunteers in the

construction of dwellings or by other

activities designed to involve the

community in the project. The only

eligible expenses for program funds are

land acquisition (including financing

and closing costs) and infrastructure

improvement (installing, extending,

constructing, rehabilitating, or

otherwise improving utilities and other

infrastructure). Administrative expenses

and costs associated with the

rehabilitation, improvement, or

construction of dwellings are not

eligible uses of program funds. Among

the program requirements contained in

section 11 of the Extension Act that the

applicant’s proposed program design

must meet in order to be considered as

eligible are the following: (1) to provide

for development, through significant

amounts of sweat-equity and volunteer

labor, of at least 30 dwellings at an

average cost of no more than $10,000

per unit in SHOP funds; (2) to use the

grant in a manner that leverages other

sources of funding, including private or

other public funds; (3) to construct

quality dwellings that comply with local

building and safety codes and standards

and are available at prices below the

prevailing market price; and (4) to

schedule activities so as to substantially

fulfill the obligations under the grant

agreement within 24 months after grant

amounts are first made available to the

organization or consortia. HUD will

recapture undisbursed amounts from

the grantees who fail to substantially

fulfill these obligations within 24

months.

C. Other Federal Requirements

Grantees awarded funds under this

NOFA are subject to the following

requirements: The administrative

requirements of 24 CFR part 84, OMB

Circular A–122 and the audit

requirements in 24 CFR part 45

(implementing OMB Circular A–133);

the Equal Opportunity requirements

referred to in 24 CFR 5.105(a) (61 FR

5198, 5202, published February 9,

1996); the provisions contained in

Section 305 of the Multifamily Housing

Property Disposition Reform Act of

1994, Environmental Review, codified

in the Environmental Review

regulations at 24 CFR part 58, are

applicable to properties assisted with

SHOP funds (see next paragraph); the

requirements of the Uniform Relocation

Act, as implemented by 49 CFR part 24;

the lead-based paint requirements set

out in 24 CFR part 35; the requirements

of section 3 of the Housing and Urban

Development Act of 1968 concerning

infrastructure improvements funded

with SHOP funds; restrictions on

participation by ineligible, debarred or

suspended persons or entities referred

to in 24 CFR 5.105(c); and the Drug-Free

Workplace authorities referred to in 24

CFR part 24.

Use of SHOP funds is subject to the

environmental review requirements that

apply to HUD Special Projects in

accordance with Section 305(c) of the

Multifamily Housing Property

Disposition Reform Act of 1994, as

implemented in 24 CFR part 58 (final

rule published on April 30, 1996, 61 FR

19120, effective May 30, 1996).

Recipients are cautioned that they may

not commit either SHOP or non-HUD

funds for most activities until a Federal

environmental review is performed by a

unit of general local government, tribe

or State, and until HUD approves a

recipient’s request for release of funds

under part 58.

D. Allocation Amounts

This NOFA makes available $15

million in SHOP grants, in accordance

with sections 11(c)(2) and 12(b)(1) of the

Housing Opportunity Program

Extension Act of 1996.

E. Unused Funds

If funds remain after HUD has

approved all approvable grant

applications, the excess will be

provided to Habitat for Humanity

International for use in accordance with

the requirements of section 11 of the

Extension Act.

F. Eligible Applicants

Except as noted below, eligible

applicants are nonprofit national or

regional organizations or consortia that

have experience in providing or

facilitating self-help housing

homeownership opportunities, and that

have standards of financial

accountability that conform to 24 CFR

84.21, ‘‘Standards for Financial

Management Systems’’. Applicants

receiving awards are required to have

audits conducted in accordance with

the provisions of 24 CFR part 45 (OMB

Circular A–133) or a program-specific

financial audit, as appropriate. Where

the applicant is a consortium, one

organization must be chosen as the lead

applicant. The lead applicant will

execute the application documents and,

if the application is selected for funding,

will execute the grant agreement and

assume primary responsibility for

carrying out the grant activities in

compliance with all program

requirements. Other participants in the

consortium should be listed in the

narrative section of the application

addressing rating criteria numbers (1)

(‘‘Operational Capability and

Experience of the Applicant’’); and (2)

(‘‘Financial Capability and Experience

of the Applicant’’). Affiliates of Habitat

for Humanity International are not

eligible for funding under this NOFA

since SHOP funds are being made

available to them separately under

section 11 of the Extension Act.

II. Grant Applications

A. Application Submission

Only timely applications received at

HUD Headquarters will be considered

for funding (see ‘‘Addresses’’ at the

beginning of this NOFA). Applications

(original and two copies) must be

physically received no later than 4:30

p.m. Eastern Daylight Time on the

deadline (see ‘‘Dates’’ at the beginning

of this NOFA). It is not sufficient for an

application to bear a postmark within

the deadline. Applications sent by

facsimile (FAX) will not be accepted.

B. Application Requirements

All applicants must submit

applications on 81⁄2′′ by 11′′ paper

which are bound in loose leaf binders

for easy copying. All pages and

attachments must be numbered

consecutively. Applications must

contain the following items: (1) OMB

Standard Form 424, Request for Federal

Assistance, Standard Form 424B, NonConstruction Assurances, Certification

Concerning Use of Federal Funds for

Lobbying, and Certification Concerning

Drug-Free Workplace signed by a person

legally authorized to enter into an

agreement with HUD; and (2) a detailed

narrative statement and program
36256 Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Notices

description which addresses each of the

five Rating Criteria in Section II.E of this

NOFA. Requests for copies of the

standard forms and certifications can be

made by calling Community

Connections at 1–800–998–9999 or by

fax to HUD, ATTN: Cliff Taffet, at (202)

708–1744. (This is not a toll-free

number.) Please refer to the ‘‘Self-Help

Program’’ in your request. The

application will become part of the

grant agreement to be entered into by

successful applicants.

C. Selection Process

The selection process for grants under

SHOP consists of a screening review,

and then, for those applications meeting

all screening requirements, rating and

ranking under substantive rating

criteria. However, rating and ranking

will only occur if there are more funds

requested in applications that meet

screening requirements than are

available under this NOFA.

D. Screening Process/Corrections to

Deficient Applications

(1) HUD will screen each application

submitted on or before the deadline to

determine if it is complete, is internally

consistent, contains correct

computations, and complies with all

requirements of section 11 of the

Extension Act and this NOFA.

(2) Where HUD determines that an

application as initially submitted is

fundamentally incomplete or would

require substantial revisions, it will not

consider the application further.

(3) Where HUD determines an

application is deficient in one or more

of the areas in paragraph D(1) of this

section but is not fundamentally

incomplete and does not require

substantial revisions, it will notify the

applicant in writing and give it an

opportunity to correct the technical

deficiencies that do not pertain to the

merits of its submission. HUD will not

notify the applicant of any deficiencies

in material that is to be evaluated under

the rating criteria.

(4) The notification will require the

applicant to submit additional or

corrected items so that they are received

in HUD Headquarters by no later than

4:30 p.m. Eastern Daylight Time on the

14th calendar day after the date of the

written notification to the applicant

giving it an opportunity to correct the

deficiency. HUD may not extend this

deadline for actual receipt of the

material for any reason. After review of

all additional or corrected materials,

HUD will not consider further any

applications that do not comply with

the requirements of the NOFA and

section 11 of the Extension Act.

E. Rating Criteria

All applications meeting the

screening requirements in section D will

be rated and ranked, using the following

substantive rating criteria:

(1) Operational Capability and

Experience of the Applicant—(up to 30

points). The applicant will be rated on

its ability to develop and carry out the

proposed program in a reasonable time

and successful manner. In assigning

points for this criterion, HUD will

consider evidence demonstrating

previous experience of the applicant,

the participating members of consortia,

other co-applicants and the key staff of

these organizations in managing selfhelp housing and volunteer labor

projects involving acquisition,

construction, real estate financing,

counseling and training or other

relevant activities. The applicant must

identify in its application the key staff

who will be responsible for

implementing the program and describe

their qualifications. In addition, the

applicant must provide, as evidence of

its nonprofit status, a copy of a current

Internal Revenue Service ruling that the

applicant is exempt from taxation under

section 501(c)(3) or 501(c)(4) of the

Internal Revenue Code of 1986. Where

an IRS ruling is unavailable, an

applicant may submit a certified copy of

its approved charter, articles of

incorporation or bylaws, demonstrating

that the applicant is established as a

nonprofit organization under state law.

Where the applicant is a consortium,

each participant in the consortium must

be a nonprofit organization, but only the

lead applicant should submit evidence

of its nonprofit status. However, the

lead applicant must maintain a copy of

the above-described documentation for

each participant in the consortium.

(2) Financial Capability and

Experience of the Applicant—(up to 20

points). The applicant will be rated on

its capability to handle financial

resources and follow procedures for

effective control. In assigning points for

this criterion, HUD will consider

evidence demonstrating previous

experience of the applicant, the

participating members of consortia,

other co-applicants, and the key staff of

these organizations, and the adequacy of

existing financial control procedures.

Applicants must include in their

narrative statement a description of the

financial control system, and provide

supporting documentation, including a

copy of their most recent audit.

(3) Quality of Program Design—(up to

30 points). In assigning points for this

criterion, HUD will consider the extent

to which the proposed program is

complete, feasible, innovative,

geographically diverse, and likely to

substantially fulfill the obligations of

the applicant under the program within

24 months. Applicants must include in

their narrative a program schedule and

performance benchmarks for the initial

24 month period of the grant agreement

(including the number of units to be

developed and occupied) that constitute

substantial fulfillment of programmatic

obligations. The applicant must also

present a budget which includes the

sources and uses of all funds, including

program income and accrued interest,

and provide a description of the

applicant’s cash management system

and proposed distribution of funds

among participating organizations. The

program design narrative must be

detailed and describe other aspects of

the program including, but not limited

to: the administrative structure and

program monitoring; the procedures to

be followed in selecting properties,

meeting environmental review

requirements, and choosing

homebuyers; the sweat-equity and

community participation volunteer

requirements; the size and design of the

new dwellings, including features to

allow entrance and passage through the

house by people who use wheelchairs

and to promote energy efficiency; the

use of cost reducing innovations in

construction technologies and land

planning; the counseling and training

components; the terms of sale to

homebuyers; and the identification of

participating lenders. This section of the

application should contain sufficient

information to determine that the

applicant understands and intends to

comply with other requirements of the

Extension Act and the NOFA, such as

the requirements that the homes

developed will be sold to eligible

homebuyers at prices below prevailing

market prices, and that all local building

and safety codes and standards will be

complied with.

(4) Leveraging of Public/Private

Resources—(up to 20 points). In

assigning points for this criterion, HUD

will consider the extent and firmness of

commitments by the public and private

sector in support of the program, such

as the donation of labor or materials,

interest rate reductions or other

financing subsidies, volunteer

assistance, tax abatements, public works

improvements, waivers of fees or taxes,

expedited processing of permits and

applications, removal of regulatory

barriers to affordable housing, and

supportive services (including

counseling and training). Applicants

should provide letters or other
Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Notices 36257

documentation evidencing the extent

and firmness of these commitments.

(5) Empowerment Zone/Enterprise

Community Support—(up to 5 points).

In assigning points for this criterion,

HUD will consider the extent to which

the applicant’s program design provides

for the selection of sites for

development located in Federally

designated urban or rural Empowerment

Zones, Enterprise Communities or

Supplemental Empowerment Zones, as

selected by the Secretaries of HUD and

USDA.

Rating of the ‘‘applicant’’ or the

‘‘applicant’s organization and staff’’ will

include any members of the national

and regional organization or consortium

participating in the application.

Irrespective of final scores, HUD may

make selections out of rank order to

achieve a national geographic diversity.

Additionally, HUD reserves the right to

reduce the amount of funding for an

application below that which was

requested.

F. Ranking and Selection

After assigning points under the

selection criteria, HUD shall examine

the rankings and, where it determines

that applications falling below a certain

point total are not suitable or not

feasible for funding, it may establish a

minimum number of points for

applications to qualify to be selected for

funding. HUD shall select for funding in

rank order all fundable applications, if

any. Once these selections have been

made (within 6 months of the

publication of this NOFA), HUD will

provide excess funds remaining from

the $15 million allocation to Habitat for

Humanity International to be used as

provided for under section 11 of the

Extension Act.

III. Other Matters

Environmental Impact

A Finding of No Significant Impact

with respect to the environment has

been made for the program in

accordance with HUD regulations at 24

CFR part 50, which implements section

102(2)(C) of the National Environmental

Policy Act of 1969. The Finding is

available for public inspection between

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

Office of the Rules Docket Clerk, Office

of the General Counsel, Department of

Housing and Urban Development, room

10276, 451 Seventh Street, SW,

Washington, DC 20410.

Federalism Executive Order

The General Counsel, as the

Designated Official for HUD under

section 6(a) of Executive Order 12612,

Federalism, has determined that the

provisions in this NOFA are closely

based on statutory requirements and

impose no significant additional

burdens on States or other public

bodies. This NOFA does not affect the

relationship between the Federal

Government and the States and other

public bodies or the distribution of

power and responsibilities among

various levels of government. Therefore,

the policy is not subject to review under

Executive Order 12612.

Family Executive Order

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has also

determined that some of the policies in

this NOFA will have a potential

significant impact on the formation,

maintenance, and general well-being of

the family. Achievement of

homeownership by low-income families

in the program can be expected to

support family values, by helping

families achieve security and

independence; by enabling them to live

in decent, safe and sanitary housing;

and by giving them the skills and means

to live independently in mainstream

American society. Since the impact on

the family is beneficial, no further

review is necessary.

Section 102 of the HUD Reform Act—

Accountability in the Provision of HUD

Assistance

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 fiveyear 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) in HUD’s

implementing regulations at 24 CFR part

15. In addition, HUD will publish a

Federal Register notice of all recipients

awarded assistance under this NOFA.

(See 24 CFR part 4, subpart A (61 FR

14448, 14449 published April 1, 1996).)

Section 103 of the HUD Reform Act—

Prohibition against Advance

Information on Funding Decisions.

HUD’s regulation implementing

section 103 of the Department of

Housing and Urban Development’s

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,

subpart B (61 FR 14448, 14451,

published April 1, 1996).

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.)

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.

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) (‘‘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 subrecipients 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.

Dated: June 27, 1996.

Henry G. Cisneros,

Secretary.

[FR Doc. 96–17373 Filed 7–8–96; 8:45 am]

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