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Super Notice of Funding Availability (SuperNOFA) for HUD's Discretionary Programs for Fiscal Year 2003
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: April 25, 2003 (Volume 68, Number 80)]
[Notices]
[Page 21401-21450]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ap03-98]
[[pp. 21401-21450]]
Super Notice of Funding Availability (SuperNOFA) for HUD's
Discretionary Programs for Fiscal Year 2003
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Funding Availability for the Brownfields Economic Development
Initiative (BEDI)
Program Overview
Purpose of the Program. BEDI funds are used to enhance the security
of a loan guaranteed by HUD under Section 108 of the Housing and
Community Development Act of 1974, as amended, for the same brownfields
economic development project, or to improve the viability of a
brownfields economic development project financed with the Section 108-
guaranteed loan, in order to stimulate economic development by local
governments and private sector parties at brownfields sites.
HUD provides BEDI funds (as defined in Section III (A)(1) below) to
be used in conjunction with Section 108 loan guarantee funds, to
finance projects and activities at brownfields sites that will provide
near-term and measurable economic benefits, such as job creation and
increases in the local tax base, through the return of brownfields
sites to productive economic uses. HUD encourages brownfields economic
development projects that propose the redevelopment of a brownfields
site through new investments by identified private sector parties and
that will result in new business or job creation, increases in the
local tax base or other near-term, measurable economic benefits. In FY
2003, HUD seeks to increase economic development opportunity throughout
the nation and promote the creation and retention of jobs. All BEDI
grants must be used in conjunction with a new Section 108 guaranteed
loan commitment.
Available Funds. Approximately $29.5 million, including $24.8
million in appropriations from the Consolidated Appropriations
Resolution, 2003, Public Law 108-7, approved February 20, 2003 (FY 2003
Consolidated Appropriations) under the ``Brownfields Redevelopment''
heading; approximately $2,629,155 of unobligated funds from the Fiscal
Year 2002 HUD Appropriations Act under the ``Brownfields
Redevelopment'' heading; and $2,065,000 of unobligated funds from the
Fiscal Year 2001 HUD Appropriations Act under the ``Brownfields
Redevelopment'' heading. The amount of total available funds is further
described in Section II below. The maximum amount of any BEDI grant
award this year will be $2 million per project.
Eligible Applicants. Only units of general local government
eligible for assistance under the Entitlement, States' Program, or the
Small Cities segments of the Community Development Block Grant (CDBG)
program may apply for a BEDI grant and a Section 108 Guaranteed Loan.
CDBG-eligible urban counties may also apply for funding, but units of
general local government that participate in the Urban County Program
may not submit an application independent of the Urban County. (See
Section III (B) below for additional information regarding eligible
applicants.)
Application Deadline. July 16, 2003.
Additional Information
If you are interested in applying for funding under this program,
please review carefully the General Section of this SuperNOFA and the
following additional information.
I. Application Due Date and Submission, Further Information, and
Technical Assistance
Application Due Date. Please submit your completed applications
(one original and three copies) on or before July 16, 2003, to the
addresses shown below.
Application Submission Procedures. See the General Section of the
SuperNOFA for specific procedures governing the submission and receipt
of applications.
Addresses for Submitting Applications to HUD Headquarters. Submit
your completed application (an original and two copies) by mail or
permitted delivery service to: Processing and Control Unit, Room 7251,
Office of Community Planning and Development, Department of Housing and
Urban Development, 451 Seventh Street, SW., Washington, DC 20410,
Attention: BEDI.
When submitting the application, please specify BEDI on any label
or mailing container, and include the applicant's name, mailing address
(including zip code), street address (if different from mailing
address) and zip code, and voice and facsimile telephone numbers
(including area code), along with the contact person's name and voice
and facsimile telephone numbers (including area code).
Applications to HUD Field Offices. At the same time the application
and copies are submitted to HUD Headquarters, an additional copy should
be submitted to the Community Planning and Development Division of the
appropriate HUD Field Office for the applicant's jurisdiction. HUD
strongly suggests that applications submitted to HUD Field Offices be
mailed via the United States Postal Service, as access by other
delivery services cannot be guaranteed.
For Applications. There is no application kit this year. All
information and forms necessary to complete and submit a valid
application are contained in the General Section and this program
section of the SuperNOFA, and the appendices to the General Section and
this program section. Copies of the NOFA and forms are also available
on the Internet through the HUD Web site at http://www.hud.gov. 
For Further Information and Technical Assistance. Contact Lisa
Peoples, Economic Development Specialist, Office of Economic
Development, Department of Housing and Urban Development, 451 Seventh
Street, SW., Room 7140, Washington, DC 20410, telephone (202) 708-0614
ext. 4456 (this is not a toll-free number). Persons with speech or
hearing impairments may access this number via TTY by calling the toll-
free Federal Information Relay Service at 1-800-877-8339. Before the
application due date, HUD staff will be available to provide general
guidance and technical assistance about this BEDI NOFA. However, HUD
staff is not permitted to assist in preparing a BEDI application.
Following selection of applicants, but before awards are made, HUD
staff are available to assist in clarifying or confirming information
that is a prerequisite to the offer of an award by HUD. In addition,
the Section 108 Loan Guarantee program is not a competitive program and
therefore is not subject to those provisions of the HUD Reform Act
pertaining to competitions that do not permit HUD staff to assist in
the preparation of applications. HUD staff is available to provide
advice and assistance to develop your Section 108 loan application.
Applicant Debriefing. Section XI (A)(4) of the General Section of
the SuperNOFA provides information on applicant requests for a
debriefing. Applicants requesting to be debriefed must send a written
request to the contact person for the BEDI program, Ms. Lisa Peoples,
at the address listed in the preceding paragraph.
Satellite Broadcast. HUD will hold an information broadcast via
satellite for potential applicants to learn more about the program and
preparation of BEDI application(s). For more information about the date
and time of the broadcast, you should consult the HUD Web site at
http://www.hud.gov.
II. Amount Allocated
HUD has available a maximum of $29,531,655 for grant awards under
this program section as of its publication date. This amount consists
of $24,837,500 in appropriations under the ``Brownfields
Redevelopment'' heading in the FY 2003 Consolidated
[[Page 21426]]
Appropriations. Funds also include $2,629,155 of unobligated
appropriated funds from the Fiscal Year 2002 HUD Appropriations Act
under the ``Brownfields Redevelopment'' heading, as well as $2,065,000
of unobligated appropriated funds from the Fiscal Year 2001 HUD
Appropriations Act under the ``Brownfields Redevelopment'' heading. All
such funds are authorized by Section 108(q) of the Act (as defined
below). The maximum amount of a BEDI award under this competition is $2
million per project. If any additional funds become available for the
BEDI program during Fiscal Year 2003, including through the
deobligation and recapture of previous BEDI awards, HUD may either fund
additional applicants in accordance with this program section of the
SuperNOFA, or may add these funds to funds available for future
competitions pursuant to Section 108(q) of the Act.
III. Program Description; Eligible Applicants; Eligible Activities
(A) Program Description. BEDI is designed to help local governments
redevelop brownfields, defined in this program section as abandoned,
idled, or underutilized real property, including industrial and
commercial facilities, where expansion or redevelopment is complicated
by the presence or potential presence of environmental contamination.
BEDI provides funding to local governments to be used in conjunction
with Section 108 loan guarantees, to finance redevelopment of
brownfields sites. A BEDI grant award will be conditioned upon, and
must be used in conjunction with, a new (i.e., not previously approved)
Section 108-guaranteed loan commitment. Both Section 108 loan guarantee
proceeds and BEDI grant funds are initially made available by HUD to
units of general local government eligible for assistance under HUD's
Entitlement, States' Program or Small Cities segments of the Community
Development Block Grant program. Such public entities may re-loan the
Section 108 loan proceeds and provide BEDI funds to a business or other
entity eligible to carry out a specific approved brownfields economic
development project, or the public entity may carry out the eligible
project itself, as provided in the approved application. In either
case, BEDI grant funds and the 108 proceeds must be used to support the
same eligible BEDI project.
(1) Definitions. Unless otherwise defined herein, terms defined in
24 CFR part 570 and used in this program section of this SuperNOFA
shall have the respective meanings given thereto in that part.
Act means Title I, Housing and Community Development Act of 1974,
as amended (42 U.S.C. 5301 et seq.).
Application means a single set of documents submitted by an
eligible applicant for BEDI grant funds, in accordance with the
provisions of this program section of the SuperNOFA to finance a
brownfields economic development project. A BEDI application must be
accompanied by a Section 108 loan guarantee request, which may consist
of either a brief summary of the proposed use of 108 funds, or a full
application, which may either be submitted at the same time as the BEDI
application or be provided within 60 days of BEDI grant award, as more
fully explained in Section IV(D) of this program section. Note that the
Section 108 application must be submitted to the appropriate HUD field
office concurrently with its submission to Headquarters.
Brownfields means abandoned, idled, or under-used real property
(including industrial and commercial facilities) where expansion or
redevelopment is complicated by the presence or potential presence of
contamination.
Brownfields Economic Development Initiative (BEDI) funds means the
appropriated funds made available for the competition under this
program section from any available appropriation.
Brownfields Economic Development Initiative (BEDI) project or
brownfields economic development project means an activity or
activities (including mixed use projects with housing components) that
are eligible under Section 108(q) of the Act and under 24 CFR 570.703,
and that will increase economic opportunity for persons of low- and
moderate-income, stimulate or retain businesses or jobs, or otherwise
lead to near-term, measurable economic benefits in connection with
brownfields.
CDBG funds means those funds collectively so defined at 24 CFR
570.3, including grant funds received pursuant to Section 108(q) and
this program section of this SuperNOFA.
Economic Development Initiative (EDI) grant means the provision of
economic development grant assistance under Section 108(q) of the Act,
as authorized by Section 232 of the Multifamily Housing Property
Disposition Reform Act of 1994 (Pub. L. 103-233, approved April 11,
1994).
EPA means the U.S. Environmental Protection Agency.
Firm Commitment means either a written agreement or letter of
understanding by which an applicant and/or a third party:
(1) Agrees to perform an activity or provide resources as specified
in the application, and demonstrates their relationship to the proposed
BEDI/Section 108 project;
(2) Specifies the dollar value of the commitment, and demonstrates
that it has the financial and organizational capacity to deliver the
resources necessary to successfully complete the activity; if the
activity is to be self-financed, the third party must evidence its
financial capacity through a corporate or personal financial statement
or other appropriate means; and
(3) Irrevocably commits the resources to the activity either
through cash or in-kind services or contributions; if any portion is to
be financed through a grant or loan from another public or private
organization, that institution's grant or loan commitment must be
firmly committed as well.
Any such agreement or letter of understanding shall be understood
as being contingent upon receipt of the BEDI grant. In order for a
commitment to be included in the applicant's score under Rating Factor
4 (Leveraging Resources), each commitment---including the donation or
purchase of real property or the provision of in-kind services---must
be assigned a monetary value by the party making the commitment,
accompanied by an indication of the basis for that assigned value.
Each agreement or letter of commitment must include the name of the
organization making the commitment, the proposed total level of
commitment (including how the value was determined) and the
responsibilities of the organization as they relate to the proposed
BEDI project. The commitment must be signed by an official of the
organization legally authorized to make commitments on behalf of the
organization, with a statement confirming that authority, and remain in
effect for a period stated in the commitment.
Applicants Committing CDBG Funds: In order for an applicant's
commitment of CDBG funds to be accepted by HUD as additional financing
for a BEDI project, a resolution from the local governing body (e.g.,
city/borough council) authorizing the amount and permitted uses of the
funds must be provided.
Showcase Community means an applicant chosen by the federal
government's Brownfields National Partnership for inclusion in the
federal government's Brownfields Showcase
[[Page 21427]]
Communities program. A list of the federally designated Brownfield
Showcase Communities is provided in Appendix B of this program section
of the SuperNOFA and is also available from the SuperNOFA Information
Center or through the HUD web site, http://www.hud.gov.
Strategic Plan means a strategy or course of action developed and
agreed to by the nominating local government(s) and state(s) and
submitted in partial fulfillment of the application requirements for an
Empowerment Zone, Enterprise Community, or a Renewal Community,
designated pursuant to 24 CFR part 597, part 598, or part 599.
(2) Background. HUD has multiple programs that are intended to
stimulate economic and community development and promote economic
revitalization of distressed areas, and which can be effectively
employed to address and remedy brownfields conditions. Primary among
HUD's resources are the Community Development Block Grant (CDBG)
program and the Section 108 loan guarantee program.
(a) The CDBG program provides grant funds by formula to local
governments (either directly or through states) to carry out community
and economic development activities ($4.340 billion appropriated in FY
2003). The Section 108 loan guarantee program provides CDBG-recipient
communities with a source of financing for economic development, public
facilities, and other eligible large-scale physical development
projects. HUD is authorized pursuant to Section 108 to guarantee notes
issued by CDBG entitlement communities and non-entitlement units of
general local government eligible to receive funds under the CDBG
States' program, as well as non-entitlement units of general local
government in the State of Hawaii. The Section 108 program is subject
to the regulations applicable to the CDBG program at 24 CFR part 570 as
described in 24 CFR part 570, subpart M. BEDI grants must support
Section 108 loan guarantees as generally described in this program
section of this SuperNOFA.
(b) For FY 2003, the loan guarantee authority for the Section 108
program is estimated at $573,000,000 including $298,000,000 in loan
guarantee authority that will continue be to available under the Fiscal
Year 2002 appropriation and $275,000,000 in loan guarantee authority
for Fiscal Year 2003. The full faith and credit of the United States is
pledged to the payment of all guarantees made under Section 108. Under
this program, communities (and states, as applicable) pledge their
continuing CDBG allocations as security for loans guaranteed by HUD.
The Section 108 program, however, does not require CDBG funds to be
escrowed for loan repayment (unless such an arrangement is specifically
negotiated as loan security and included in the applicable ``Contract
for Loan Guarantee Assistance.'') This means that a community can
ordinarily continue to spend its existing allocation for other CDBG
purposes, unless needed for loan repayment.
(3) EDI Program. The EDI authorization, Section 108(q) of the Act,
was enacted in 1994 and is intended to complement and enhance the
Section 108 Loan Guarantee program.
(4) BEDI Program. A purpose of BEDI (and EDI) grant funds is to
reduce grantees' potential loss of future CDBG allocations:
(a) By strengthening the economic feasibility of a project financed
with Section 108 funds (and thereby increasing the probability that the
project will generate enough cash to repay the guaranteed loan);
(b) By directly enhancing the security of the Section 108-
guaranteed loan; or
(c) Through a combination of these or other risk mitigation
techniques.
HUD intends all the funds available pursuant to this program
section of the SuperNOFA to be used for purposes of the redevelopment
of brownfields sites. Accordingly, BEDI funds shall be used as the
stimulus for local governments and private sector parties to commence
redevelopment or continue phased redevelopment efforts on brownfields
sites where contamination is present or potentially present and a
redevelopment plan exists. HUD desires to see BEDI and Section 108
funds used to finance projects and activities that involve investment
in the brownfields site by an identified private sector party and that
will provide near-term results and measurable economic benefits, such
as job creation and increases in the local tax base, through the return
of brownfields sites to productive economic use.
(5) Integration of Other Government Brownfields Programs. HUD
expects and encourages local governments which are designated through
(a) the federal government's Brownfields Showcase Community program,
(b) other federal brownfields programs (e.g., EPA's Assessment, Tax
Incentive, Revolving Loan Fund or Cleanup Grant programs), (c) a state-
supported brownfields program, or (d) a state or local related economic
development program, to integrate efforts arising from those programs
in developing projects for assistance under HUD's BEDI and Section 108
programs. Applicants should elaborate upon these ties in their response
to the rating factors, where appropriate (e.g., ``Capacity of the
Applicant,'' ``Soundness of Approach,'' or ``Leveraging Resources''--
Rating Factors 1, 3, and 4 respectively.)
(6) Additional Security for Section 108 Loan Guarantee. Public
entities should consider the need to provide additional security for
the Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3).
Although a public entity is required by the Act to pledge its current
and future CDBG allocations as security for the Section 108 loan
guarantee, the public entity will usually be required to furnish
additional collateral. In most cases, the additional collateral
consists (in whole or in part) of the asset financed with the Section
108 loan funds (e.g., a loan made to a business as part of an economic
development project and the related mortgage from the business).
Applications proposing uses for BEDI funding that directly enhance the
value of the assets securing the Section 108 loan will help ensure that
the project-based asset(s) will satisfy the additional collateral
requirements.
(7) Uses of BEDI Funds. Generally, proposals must be consistent
with other CDBG requirements, including meeting National Objectives and
activity eligibility requirements under Sec. 570.703 of the Section
108 Loan Guarantee regulations, as described in Section III (C) of this
program section. The following examples are offered only to illustrate
some of the ways in which BEDI funds may be used to support 108-
guaranteed loans:
(a) Land Writedowns. Local governments may use a combination of
Section 108 and BEDI funds to acquire a brownfields site for purposes
of reconveying the site to a private developer at a discount from its
purchase price. This approach would provide the developer with an asset
of enhanced value that could be used as collateral for other sources of
funding and those other sources of financing could then be used to
finance environmental remediation or other development costs. In such a
circumstance, the level of BEDI assistance could approximate the
difference between the original cost of the site and its remediation in
comparison to the market value of the remediated property.
(b) Site Remediation Costs. Local governments may use BEDI funds in
any of several ways to address site remediation costs. If the local
government proposes to use Section 108 funds to acquire real property,
BEDI
[[Page 21428]]
funds could be used to address assessment and site remediation costs as
part of eligible demolition, clearance, or site preparation activities.
If the local government uses Section 108 funds to make a loan to a
developer, BEDI funds could be granted or loaned to the developer for
the purpose of addressing remediation costs as part of an economic
development activity.
(c) Funding Reserves. The cash flow generated by an economic
development project may be expected to be relatively ``thin'' in the
early stages of the project, i.e., potentially insufficient to meet
operating expenses and debt service obligations. The BEDI grant could
be used by the grantee to either establish a debt service reserve to
cover interest on the Section 108 loan, or as a grant to a business for
working capital. In either case, the BEDI funds enhance the economic
feasibility of the project.
(d) Direct Enhancement of the Security of the Section 108 Loan. The
BEDI grant can be used to pay for the cost of providing credit
enhancements for the Section 108 loan. For example, if eligible as part
of the cost of an appropriate eligible activity, the BEDI grant can be
used to pay for the cost of a standby letter of credit, issued in favor
of HUD. This letter of credit will be available to fund amounts due on
the Section 108 loan if other sources fail to materialize, and thus
will serve to protect the public entity's future CDBG funds.
(e) Provision of Financing to For-Profit Businesses at a Below
Market Interest Rate.
While the rates on loans guaranteed under Section 108 are only
slightly above the rates on comparable U.S. Treasury obligations, they
may nonetheless be higher than can be afforded by businesses, non-
profit groups or public entities in severely economically distressed
neighborhoods. The BEDI grant can be used to make Section 108 financing
affordable by serving to ``buy down'' the interest rate up front, or
make full or partial interest payments on the Section 108 loan. This
might increase the financial viability of the businesses or other
entities in the early start-up period, which might not otherwise be
possible with Section 108 alone. This strategy would be particularly
useful where a community was undertaking a large commercial or retail
project in a brownfields area in order to act as a catalyst for other
development in the area.
(f) Combination of Techniques. A combination of the above could be
employed to implement a BEDI project successfully.
(B) Eligible Applicants. Any public entity eligible to apply for
Section 108 loan guarantee assistance in accordance with 24 CFR 570.702
may apply for BEDI grant assistance under Section 108(q). Eligible
applicants are CDBG entitlement units of general local government and
non-entitlement units of general local government eligible to receive
loan guarantees under 24 CFR part 570, subpart M. Urban Counties, as
defined at 24 CFR 570.3 and 570.307, are eligible applicants for BEDI
funds; units of general local government that participate in an Urban
County program are not independently eligible applicants. For non-
entitlement applicants other than those subject to 24 CFR 570, subpart
F (which applies only to the State of Hawaii), applicants will be
required to provide evidence in the application from an authorized
official of the state agency responsible for administering the State
CDBG program stating that it will support the related Section 108 loan
with a pledge of its CDBG allocations pursuant to the requirements of
24 CFR 570.705(b)(2). Such evidence shall take the form of the HUD
Certification titled ``SECTION 108 LOAN GUARANTEES: State
Certifications Related to Nonentitlement Public Entities'' included in
this program section to the SuperNOFA, or which may be obtained by
downloading from the Internet at http://www.hud.gov. Note that
effective January 25, 1995, non-entitlement public entities in the
State of Hawaii are authorized to apply to HUD for Section 108 loans
(see 59 FR 47510, December 27, 1994). Thus non-entitlement public
entities in all 50 states and Puerto Rico are eligible to participate
in the Section 108 and BEDI programs, with assistance of the state's or
commonwealth's pledge of CDBG allocations.
(C) Eligible Activities and National Objectives. (1) BEDI grant
funds and Section 108 loan guarantee funds may be used for activities
listed at 24 CFR 570.703, provided such activities are carried out as
part of a BEDI project as described in this program section of the
SuperNOFA and meet the CDBG requirements at 24 CFR 570.200. Applicants
are required to submit applications that seek funding for BEDI projects
that will contribute to the redevelopment and revitalization of
brownfields. Applications that fail to meet the threshold requirements
found in Section V (B) of the General Section of the SuperNOFA and the
program requirements of this section will not be rated, ranked, or
otherwise considered by HUD.
(2) Each activity assisted with Section 108 loan guarantee or BEDI
funds must meet a national objective of the CDBG program as described
in 24 CFR 570.208. Applicants must clearly identify in their narrative
statement (as described in Section V (B) of this program section below)
the CDBG national objective to be achieved by the proposed project and
provide the appropriate CDBG national objective regulatory citation
found at 24 CFR 570.208. Applicants must also address, when applicable,
how the proposed activities will comply with the public benefit
standards of the CDBG program as reflected in the regulation at 24 CFR
570.209.
(3) A grantee's aggregate use of its CDBG funds, including any
Section 108 loan guarantee proceeds and Section 108(q) (BEDI) funds
provided pursuant to this program section of the SuperNOFA, must comply
with the CDBG primary objective requirements as described in Section
101(c) of the Act and 24 CFR 570.200(a) (3) for entitlement grantees,
or 570.484 in the case of a recipient under a state's program.
(4) Applicants are reminded of the Department's Policy Priorities
for FY 2003 found in Section II of the General Section of the
SuperNOFA, several of which apply to this program section, as described
below, under Rating Factor 3 in Section V of this program section.
IV. Program Requirements
(A) General Requirements. Applicants for BEDI grant funds must
comply with the statutory, regulatory, threshold and public policy
requirements listed in Section V of the General Section of the
SuperNOFA.
(B) CDBG Program Regulations. In addition to 24 CFR 570.701
(Definitions), Sec. 570.702 (Eligible applicants), and Sec. 570.703
(Eligible activities), as explained in Section III (C) of this program
section of the SuperNOFA, the CDBG regulatory requirements cited in 24
CFR 570.707, including subparts J (Grant Administration), K (Other
Program Requirements), and O (Performance Reviews) govern the use of
BEDI funds, as applicable.
(C) Compliance with Applicable Environmental and Other Laws.
Applicants are advised that an award of BEDI funding does not in any
way relieve the applicant or third party users of BEDI funds from
compliance with all applicable federal, state and local laws,
particularly those addressing the environment. Applicants are further
advised that HUD may require evidence that any project involving
remediation has been or will be carried out in
[[Page 21429]]
accordance with applicable law, including voluntary clean up programs.
(D) Related Section 108 Loan Guarantee Request. (1) Each BEDI
application must be accompanied by a request for new Section 108 loan
guarantee assistance. The request may take any of the four forms
defined in paragraphs (a), (b), (c), or (d) below in this Section IV
(D). Notwithstanding the form of your request for new Section 108 loan
guarantee assistance, the applicant must include citations to the
specific regulatory subsection supporting activity eligibility and
National Objectives compliance for the Section 108 funds described in
the application. (See Section III (C) of this program section of the
SuperNOFA.) Both the BEDI and Section 108 funds must be used in
conjunction with the same BEDI project. The request for new Section 108
guarantee assistance may be presented through:
(a) A full application for new Section 108 loan guarantee(s),
including the documents listed at 24 CFR 570.704(b).
(b) A brief description (not to exceed three pages) of the project
to be applied for in a subsequent new Section 108 loan guarantee
application(s). Such a 108 application(s) shall be submitted within 60
days of written notice of BEDI selection, with HUD reserving the right
to extend such period on a case-by-case basis where HUD determines
there is evidence of good cause. BEDI awards will be conditioned on
approval of actual Section 108 loan commitments and loan guarantee
proceeds in a specific ratio of BEDI funds to Section 108 funds as
approved by HUD in the BEDI award. The application description must be
sufficient to support the basic eligibility of the proposed project and
activities for Section 108 assistance. (See Section III (C) of this
program section of the SuperNOFA.)
(c) A copy of a pending, unapproved Section 108 loan guarantee
application, and any proposed amendments to the Section 108 application
which are related to the BEDI application. The applicant's submission
of such a BEDI/Section 108 application shall be deemed by HUD to
constitute a request to suspend separate processing of the Section 108
application. The Section 108 application will not be approved until on
or after the date of the related BEDI award.
(d) A request for Section 108 loan guarantee assistance (analogous
to Section IV (D)(1)(a) or (b) of this BEDI section of the SuperNOFA)
that proposes to increase the amount of a previously approved
application. However, any amount of Section 108 loan guarantee
authority approved before HUD's announcement of a BEDI grant for the
same project is not eligible to be used in conjunction with a BEDI
grant under this program section.
(2) Further, a Section 108 loan guarantee amount that is required
to be used in conjunction with a previously approved BEDI or EDI grant
award, whether or not the Section 108 loan guarantee has been approved
as of the date of this SuperNOFA, is not eligible for a BEDI award
under this SuperNOFA. For example, if a public entity has a previously
approved Section 108 loan guarantee commitment of $12 million, even if
none of the funds have been utilized, or if the public entity had
previously been awarded a BEDI grant of $1 million and had agreed to
submit a Section 108 loan application for $10 million in support of
that BEDI grant, the public entity's application under this program
section of this SuperNOFA must propose to increase the amount of its
total Section 108 loan guarantee commitments beyond those amounts to
which it has previously agreed. (i.e., the $12 million or $10 million
Section 108 loan guarantee commitments in this example).
(E) Prohibitions on Use of BEDI and Section 108 Funds. Certain
restrictions shall apply to the use of BEDI and Section 108 funds:
(1) BEDI grant funds must not be used as a resource to immediately
repay the principal of a loan guaranteed under Section 108. Repayment
of principal is only permissible with BEDI grant funds as a matter of
security if other sources projected for repayment of principal prove to
be unavailable.
(2) Section 108 loan obligations may not be subordinated, directly
or indirectly, to federally tax exempt obligations. Pursuant to Office
of Management and Budget (OMB) Circular A-129 (Rev.) Appendix A,
Sections II.2.c. and d., (Policies for Federal Credit Programs and Non-
Tax Receivables), Section 108 guaranteed loan funds may not directly or
indirectly support federally tax-exempt obligations.
(3) BEDI grant funds shall not be used in any manner by grantees to
provide public or private sector entities with funding to remediate
conditions caused by their own actions, where the public entity (or
other known prospective beneficiary of the proposed BEDI grant) has
been determined responsible for causation and remediation by order of a
court or a federal, state, or local regulatory agency, or is
responsible for the remediation as part of a settlement approved by
such a court or agency. Applicants will be required in the BEDI
Narrative Statement described in Section (V)(B) of this program section
of the SuperNOFA to indicate that the proposed BEDI project will not be
used to provide assistance as prohibited herein.
(4) Applicants may not propose projects on sites which are: (i)
Listed or proposed to be listed on EPA's National Priority List (NPL);
(ii) subject to unilateral administrative orders, court orders,
administrative consent orders or judicial consent decrees issued or
entered into by parties under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (CERCLA); or (iii)
subject to the jurisdiction, custody or control of the United States
government. Applicants will be required in the BEDI Narrative Statement
described in Section (V)(B) of this program section of the SuperNOFA to
indicate that the proposed BEDI project will not be undertaken at an
ineligible site as provided herein.
(5) BEDI grant assistance cannot be used to leverage a Section 108
loan guarantee approved prior to the date of HUD's announcement of a
BEDI grant pursuant to this SuperNOFA. However, the BEDI grant may be
awarded before HUD approval of the Section 108 commitment if HUD
determines that such award will further the purposes of the Act.
(6) A BEDI award will not be made if the Section 108 request
contained in the application (See Section IV(D) of this program
section) calls for the use of the Section 108-guaranteed obligation
solely as security for other financing on the project.
(F) Time-frames. As a condition of any award under this program
section, if the related Section 108 application has not been submitted
and approved within ten (10) months of written HUD notification of
selection for potential funding under this NOFA, HUD may deobligate the
BEDI funds. BEDI grant awards will contain conditions requiring
grantees to adhere to time-frames mutually agreed on by the applicant/
grantee and HUD for implementing proposed projects and drawing Section
108 and BEDI funds. If BEDI grant funds and Section 108 loan proceeds
are not disbursed to the applicant within the timeframes specified in
the BEDI grant agreement, HUD reserves the right to cancel the award
and recapture the BEDI funds.
(G) Limitations on Grant Amounts. (1) HUD expects to approve BEDI
grant amounts for approvable applications with a range of ratios of
BEDI grant funds awarded to new Section 108 loan guarantee commitments
but the
[[Page 21430]]
minimum ratio will be $1.00 of Section 108 loan guarantee commitments
for every $1.00 of BEDI grant funds. However, if an applicant proposes
a leverage ratio of exactly 1:1, that application, while still meeting
the threshold requirement, will not receive any points under the Rating
Factor 4, paragraph (1): ``Leverage of Section 108 Funds.''
To receive points under this Factor, applications will have to
exceed the 1:1 minimum ratio, and the higher the ratio the more points
will be awarded, to the extent consistent with the points available for
Rating Factor 4, paragraph (1). Because the proposed ratio of BEDI
funds to Section 108 funds represents an applicant's financial
commitment, HUD will condition the BEDI grant award on the grantee's
achievement of that specific ratio. Its failure to meet that condition
by obtaining timely HUD approval of a commitment for, and issuance of,
the required Section 108 guaranteed obligations ratio may result in the
cancellation and recapture of all or a proportionate share of the BEDI
grant award.
(2) HUD will cap BEDI awards at a maximum of $2 million per
project. An application in excess of $2 million will be reduced to the
extent HUD determines that such a reduction is appropriate.
(3) After selection, but prior to grant award, if HUD determines
that an application can be funded at a lesser BEDI grant amount than
requested and still be feasible and consistent with the proposed plan
and the purposes of the Act, it reserves the right to reduce the amount
of the BEDI award and/or increase the required Section 108 loan
guarantee commitment.
(4) In the event a BEDI grant is awarded and has been reduced below
the original request (e.g., the application contained some activities
that were ineligible, exceeded the $2 million cap, or there were
insufficient funds to fund the last competitive application at the full
amount requested), the applicant will be required to modify the project
plans and application to conform to the terms of HUD approval before
HUD will execute a grant agreement.
(5) HUD also may proportionately reduce or deobligate the BEDI
award if a grantee does not submit an approvable Section 108 loan
guarantee application, issue Section 108-guaranteed obligations and
receive loan guarantee proceeds on a timely basis (including any
extension authorized by HUD) in the amount required by the BEDI/108
leveraging ratio, which will be approved by HUD as a special condition
of the BEDI grant award (see Section IV (F) above of this program
section of the SuperNOFA).
(6) Any modifications or amendments to an application approved
pursuant to this SuperNOFA, whether requested by the applicant or by
HUD, must be within the scope of the approved original BEDI application
in all respects material to rating the application, unless HUD
determines that the revised application remains within the competitive
range and is otherwise approvable under this SuperNOFA competition.
(7) In the case of a requested increase in guarantee assistance for
a project with a previously approved Section 108 loan guarantee
commitment (as further discussed in Section IV (D)(1)(d), above), the
BEDI assistance approved will be based on the increased amount of
Section 108 loan guarantee assistance.
(H) Timing of Grant Awards and Disbursements. (1) To the extent a
full and complete Section 108 application is submitted with the BEDI
grant application, HUD will evaluate the Section 108 application
immediately following the competition for BEDI grant funds. Note that
the 108 application must be submitted to the appropriate HUD field
office concurrently with submission to Headquarters.
(2) Notwithstanding any earlier obligation or award of BEDI funds
to a grantee, or execution of a grant agreement, HUD will not permit
the grantee to draw down BEDI funds before the issuance of the
obligations evidencing the related Section 108 guaranteed loan.
(3) Pursuant to the FY 2003 HUD Appropriations Act (under the
``Brownfields Redevelopment'' heading) and 31 U.S.C. 1552(a), FY 2003
BEDI funds must be obligated (i.e., awarded) by HUD by September 30,
2004, and must be disbursed by HUD to the grantee by September 30,
2009. FY 2002 BEDI funds must be obligated by September 30, 2003 and
must be disbursed by HUD to the grantee by September 30, 2008. FY 2001
BEDI funds are not subject to statutory obligation or disbursement
deadlines. In all cases, however, HUD reserves the right to require
earlier disbursement under a BEDI grant agreement.
(I) Obligation to affirmatively further fair housing. All BEDI
grantees are obliged to affirmatively further fair housing, even when
the proposed activities do not appear to be directly related to
housing. Therefore, applicants that propose to use BEDI funds must
include in their applications an explanation of how they propose to
further fair housing opportunities for persons on the basis of race,
color, national origin, sex, religion, familial status, or disability.
Applicants should respond to this requirement under Rating Factor 2,
subfactor (2)(c). Affirmative activities include, but are not limited
to: initial and periodic assessments of the extent to which affordable
and accessible housing opportunities are provided or denied to persons
by race, color, national origin, sex, religion, familial status, or
disability; outreach to persons in underserved population groups or
advocacy organizations representing such persons; affirmative fair
marketing of job or housing opportunities; housing choice; addressing
environmental justice concerns; or ensuring that employment, housing
and other benefits of the BEDI grant are made available to those
individuals and families living at or near the brownfields site prior
to its redevelopment.
V. The Application Selection Process
(A) Rating and Ranking
(1) Each rating factor and the maximum number of points are
provided below. The maximum number of points to be awarded is 104. To
be eligible for funding, a BEDI application must obtain a total score
of at least 75 points. All applications meeting BEDI program and
threshold requirements will be rated under the selection criteria
below. Applications must include citations to the specific regulatory
subsections supporting eligibility of activities and compliance with
National Objectives. (See Section III (C) of this program section of
this SuperNOFA). The applicant must also provide narrative statements
in response to each of the rating factors below.
(2) All applications meeting BEDI program and threshold
requirements will be rated under the selection criteria below.
Applications must include citations to the specific regulatory
subsections supporting eligibility of activities and compliance with
National Objectives. (See Section III (C) of this program section of
the SuperNOFA). The applicant must also provide narrative statements in
response to each of the rating factors below.
Applications will be selected for funding as follows:
(3) All BEDI grant applications that meet threshold requirements
will be ranked separately in order of points assigned with the
applications receiving more points ranked above those receiving fewer
points.
(4) In the event two or more applications are given the same score,
[[Page 21431]]
but there are insufficient funds to fund all of the tied applications,
the application(s) with the highest score(s) on Rating Factor 3
(Soundness of Approach) shall be selected. If there is still a tie, the
following Factors will be considered sequentially, with the application
having the high score on that Factor taking precedence until the tie is
broken: Rating Factor 1 (Capacity and Experience), Rating Factor 2
(Distress/Extent of the Problem), Rating Factor 4 (Leveraging
Resources), and Rating Factor 5 (Achieving Results and Program
Evaluation).
(5) Fundable BEDI grant applications must meet the threshold
requirements stipulated in Section V of the General Section of this
SuperNOFA and be complete as required by the submission requirements of
this program section of the SuperNOFA or they will not be ranked.
Brownfields economic development projects will be funded in rank order
until the total aggregate amount of the applications funded is equal to
the maximum amount available in the competition (subject to the
limitations described in Section IV(G) above).
(B) BEDI Narrative Statement
(1) Applications must contain narrative statements printed in 12
point type, with sequentially numbered pages for the entire
application, including forms and exhibits. The BEDI narrative statement
must not exceed three (3) 8.5'' by 11'' pages, doubled-spaced. The BEDI
narrative statement should:
(a) Describe the activities that will be carried out with the BEDI
grant funds, and explain the nature and extent of the brownfields
problem(s) affecting the site and/or structure(s) already on the site;
(b) Describe how the proposed uses of BEDI funds will qualify as
eligible activities under 24 CFR 570.703 and meet the National
Objectives under 24 CFR 570.208 of the CDBG program. In describing how
the proposed uses will meet the National Objectives of the CDBG program
and the activity eligibility requirements of the Section 108 program,
applications must also include citations to the specific regulatory
subsections supporting eligibility of activities and compliance with
National Objectives. (See Section III(C) of this program section of
this SuperNOFA) and;
(c) Indicate that: (i) the proposed assistance will not be used to
provide funding to parties to remediate conditions caused by their own
actions for which they have been determined to be legally responsible,
as specified in Section IV(E)(3) of this program section; and (ii) that
the proposed brownfields site is not ineligible as provided in Section
IV(E)(4) of this program section.
(2) The applicant must also provide in narrative form responses to
each of the rating factors below.
(C) Factors for Award Used to Evaluate and Rate Applications. HUD
will evaluate all applications for funding assistance based on the
following factors, the responses to which demonstrate the quality of
the proposed project or activities, and the applicant's capacity and
commitment to use the BEDI funds in accordance with the purposes of the
Act.
(D) Responses to Rating Factors 1-5. Responses to Rating Factors 1-
5 below shall not exceed fifteen (15) double-spaced pages combined.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational
Experience (20 Points Maximum)
This factor addresses the extent to which the applicant has the
organizational resources necessary to successfully implement the
proposed activities in a timely manner. The rating of the ``applicant''
or the ``applicant's organization and staff'' will include any
subcontractors, consultants, and sub-recipients that are firmly
committed (see definition in Section III(A)(1) above) to participate in
the activities described in the application. In responding to
subfactors (1) and (2) of this Factor, applications that merely
summarize the amount of funds received, spent or managed will receive
fewer points than those providing specific measurable information on
program activities undertaken, outcomes of these activities and their
accomplishments. In rating this factor, HUD will consider the
following:
(1) Applicant Capacity (Up to 10 points). The applicant should
demonstrate that it has the organization, the staff and the financial
resources in place to implement the specific steps required to
successfully carry out its proposed BEDI/Section 108 project. The
applicant should offer evidence of this capacity through a description
that includes:
(a) Performance in the administration of its CDBG, HOME or other
HUD programs, including a description of successfully completed
projects and other outcomes or accomplishments under these programs;
(b) Performance, if any, in carrying out economic development
projects similar to that proposed, including brownfields economic
development or redevelopment projects, if any, and if applicable, the
ability to conduct prudent underwriting;
(c) Ability to carry out projects and programs in a timely manner.
An applicant must address its performance in spending previously
awarded HUD and other funds, if any, in a timely manner, including, for
CDBG entitlement recipients, the extent to which the CDBG entitlement
recipient has met the HUD standard that the total amount of its
undisbursed, entitlement grant funds may not be more than 1.5 times the
entitlement grant amount for the current program year (see 24 CFR
570.902(a)(1)(i));
(d) If applicable because the applicant has such designation, the
capacity to achieve state and local commitments, including maximizing
the federal tax benefits made available as a result of a federal
Renewal Community/Empowerment Zone/Enterprise Community designation
(including Enhanced Enterprise Community (EEC) designation). Applicants
that have been designated as a Renewal Community (RC), Empowerment Zone
(EZ) or Enterprise Community (EC/EEC) must respond to this subfactor
even if the proposed brownfields economic development project is not to
be located within the boundaries of the designated RC/EZ/EC; and
(e) An applicant that has previously received a BEDI or an EDI
grant award or, within the past five years, a Section 108-guaranteed
loan commitment, must describe the status of the implementation of
those project(s) assisted with any BEDI or EDI funds or with any
Section 108-guaranteed loan funds so approved within the last five
years. An applicant must address any delays that have been encountered
and the actions it is taking to overcome any such delays in carrying
out the project(s) in a timely manner. For any such previously funded
BEDI or EDI grant projects, or for those Section 108 guaranteed-loan
projects committed within the past five years, HUD will award more
rating points for applications providing evidence of achievement of
specific measurable outcomes in carrying out approved activities funded
with such guaranteed loan and/or grant funds.
If any of the rating criteria listed under (a) through (e) above do
not apply to an application, the rating for this subfactor (1) shall be
based solely upon the other applicable criteria.
(2) Partner Capacity (Up to 10 points). In response to this
subfactor (2), the applicant should describe the experience and
performance of subrecipients, private developers and other businesses,
nonprofit organizations (including grassroots faith-based and other
community-based
[[Page 21432]]
organizations), and other entities, if any, that have a role in
implementing the proposed BEDI/108 program. Applicants are encouraged
to identify specific economic development or other projects undertaken
by each entity, which reflect the capacity of each entity to fulfill
its responsibilities under the proposed brownfields economic
development project, including the location, scale, and timeframe for
completion of other relevant projects. If there are no third parties
participating with the applicant in the proposed project, points under
this subfactor (2) will be allocated under subfactor (1) and added to
the maximum points possible under subfactor (1).
Experience will be judged in terms of recent (i.e., within the past
5 years) and successful performance of activities relevant to those
proposed in the BEDI application. The more recent and extensive the
experience is, the greater the number of points that will be awarded
for this Factor.
In addition to the application, HUD also may rely on information at
hand or available from public sources such as newspapers, from
performance and/or monitoring reports, Inspector General or Government
Accounting Office reports or findings, hotline complaints that have
been proven to have merit, audit reports and other reliable public
information in rating this Factor.
Rating Factor 2: Distress/Extent of the Problem (20 Points Maximum)
This Factor addresses the extent to which there is need for funding
the proposed activities based on levels of distress in both the
jurisdiction of the public entity that is the applicant and the
geographic or target area that will benefit from the project. In
responding to this Factor, applications will be evaluated on the extent
to which the level of distress for the target area is documented and
compared with national data and data for the jurisdiction.
(1) In applying this Factor, HUD will consider current levels of
distress defined in standard geographic terms in the target area, as
defined by the applicant. This may be Census Tract(s) or Block Groups
immediately surrounding the project site up to a radius of one-half
mile; or it may be the target area proposed to be served by the
project. HUD will also consider the current levels of distress in the
applicant public entity's jurisdiction. The applicant should describe
the nature of the distress that the project is designed to address and
the rationale for its definition of the area to be benefited. Examples
of project beneficiaries may include: (a) those receiving or using
products or services produced by the project, and (b) those employed by
the project.
To the extent that the applicant's Consolidated Plan, its Analysis
of Impediments to Fair Housing choice (AI), and/or its Anti-Poverty
Strategy found therein identify the level of distress in the
jurisdiction and the neighborhood in which the project is to be carried
out, references to such documents should be included in preparing the
response to this Factor. Applications that fail to reference these
sources will receive fewer points under this Factor.
Notwithstanding the above, an applicant proposing a project to be
located outside the area for which benefit is claimed could still
receive points under this Factor if a clear rationale is provided
linking the proposed project location and the benefits to be derived by
persons living in the target area.
(2) Applicants should provide data that address the following
specific indicators of distress:
(a) Poverty Rate (Up to 5 points). Data should be provided in both
absolute and percentage form (i.e., whole numbers and percents) for
both the target area and the applicant's jurisdiction as a whole; an
application that compares the local poverty rate in the following
manner to the national average at the time of submission will receive
points under this section as follows:
(i) Less than the national average, but with a poverty rate in the
target area that is greater than the applicant's jurisdiction: 2
points;
(ii) Equal to or greater than, but less than twice, the national
average: 3 points;
(iii) Equal to or greater than twice the national average: 5
points.
(b) Unemployment Rate (Up to 5 points). An application that
compares the local unemployment rate for the applicant's jurisdiction
and the target area in the following manner to the national average at
the time of submission will receive points under this Section as
follows:
(i) Less that the national average, but with an unemployment rate
in the target area that is greater than the applicant's jurisdiction: 2
points;
(ii) Equal to or greater than, but less than twice, the national
average: 3 points;
(iii) Equal to or greater than twice the national average: 5
points.
(c) Consolidated Plan and Analysis of Impediments to Fair Housing
Choice (Up to 5 points). Describe any unmet needs as identified in the
jurisdiction's Consolidated Plan and, pursuant to Section IV(I) of this
program section of the SuperNOFA, any impediments to fair housing
identified in the jurisdiction's Analysis of Impediments to Fair
Housing Choice that will be directly addressed by the proposed project.
(d) Other Indicators of Social and/or Economic Decline (Up to 5
points). Applicants should provide other indicators of social or
economic decline that best capture the applicant's local situation.
Examples that could be provided under this section include information
demonstrating the target area and the jurisdiction's stagnant or
falling tax base, including recent (within the last three years)
commercial or industrial closings, downturns or layoffs; housing
conditions, such as the number and percentage of substandard and/or
overcrowded units; rent burden (defined as average housing cost divided
by average income) for both the target area and jurisdiction; local
crime statistics. The response to this subfactor (d) should paint a
portrait of the extent of need and distress in the target area and
jurisdiction.
HUD requires use of sound and reliable data (e.g., U.S. Census
data, state statistical reports, university studies/reports that are
verifiable) to support distress levels cited in each application. A
source for all information along with the publication or origination
date must also be provided. Updated Census data are available as
follows for the listed indicators:
Unemployment rate--estimated monthly for counties, with a two-month
lag;
Poverty rate--estimated every two years, with a three-year lag,
with 2000 being the most recent available.
In rating applications under this Factor, HUD reserves the right to
consider sources of available objective data other than, or in addition
to, those provided by applicants, in order to compare such data to
those provided by applicants.
Rating Factor 3: Soundness of Approach (35 Points Maximum)
This factor addresses the quality and cost-effectiveness of the
proposed plan for the brownfields economic development project.
Brownfields economic development projects that do not involve new
investments by an identified private sector party and that do not
result in near-term, measurable economic benefits, such as projects
that involve only the preparation of a site for potential redevelopment
by an unidentified party, or the capitalization of a loan pool for
loans to unidentified borrowers, will receive fewer points
[[Page 21433]]
under this Factor. The relationship between the proposed eligible
activities, community needs and purposes of the program funding must be
clearly described, as set forth below, in order to receive points for
this Factor. In rating this Factor, HUD will consider the following:
(1) Consistency/Appropriateness of Proposed Activities with
Identified Needs (Up to 8 points). The applicant should address the
extent to which the proposed plan for use of BEDI grant/Section 108-
guaranteed loan funds will address the needs described in Rating Factor
2 above, regarding the distress and extent of the problem in the target
area or area to be benefited and the long-term benefit for current
residents of the target area. The applicant should provide a clear and
quantified explanation of this relationship. As part of the response to
this Factor, an applicant should also fully describe:
(a) How the project will achieve one of the National Objectives
under the Community Development Block Grant program (see 24 CFR
570.208) and the eligible activities that will be carried out under 24
CFR 570.703, including citations to the specific regulatory subsections
supporting eligibility of activities and compliance with National
Objectives; and
(b) How the project will address the following policy priorities:
(i) For all BEDI projects, the extent to which the proposed project
will improve the quality of life in the nation's communities, by
bringing private capital to distressed communities; and
(ii) For BEDI projects that include the construction or
rehabilitation of housing:
(A) The extent to which the project will increase affordable
housing and homeownership opportunities for low- and moderate income
persons, the disabled, the elderly, minorities and families where
English may be the second language, whether through the provision of
housing or employment which will enable residents to access affordable
housing and have a choice of such housing in environmentally healthy
and revitalized neighborhoods; and
(B) The extent to which the project will encourage accessible
design features for persons with disabilities.
(2) Feasibility and Demonstrable Benefits (Up to 15 points). In
responding to this subfactor (2), the applicant should demonstrate the
extent to which the redevelopment plan for the brownfields site is
logical, feasible and likely to achieve its stated purpose. Applicants
are reminded that HUD's intention is to fund brownfields economic
development projects and activities that will quickly produce
measurable economic benefits and advance the purposes of the BEDI
program. The applicant's response should demonstrate the extent to
which the project is ``ready to go,'' meaning that the project is
likely to be completed within three to five years from the date of the
BEDI award and will produce near-term, measurable economic benefits.
Points for this subfactor will be awarded in two parts, for the
following:
(a) Implementation Steps (Up to 8 points). The applicant's response
should discuss the extent to which the redevelopment plan demonstrates
a clear understanding of each of the steps required to implement the
brownfields economic development project, including the actions that
all parties responsible for implementing the project must complete. The
applicant's response to this subfactor should address:
(i) Environmental Investigation. This subfactor (i) will consider
the extent to which the redevelopment plan takes into account
environmental issues typical of many brownfields remediation efforts.
Proposed projects on sites where the nature and degree of environmental
contamination is not well-quantified, where no environmental
investigation has commenced, or that are the subject of on-going
litigation or environmental enforcement actions will receive fewer
points under this subfactor (i). Similarly, fewer points will be
awarded to proposed projects at sites with exceptionally expensive
contamination problems that may be beyond the scope of the BEDI and
Section 108 programs' financial resources or other resources firmly
committed to the project as described in the application, and sites
subject to pending and current litigation that may not be available for
remediation and development or redevelopment in a time-frame that will
produce near-term and measurable economic benefits through the use of
BEDI and Section 108 funds.
(ii) Site Control. This subfactor (ii) will consider the extent to
which control of the proposed project site has been secured or is being
sought.
(iii) Regulatory and Other Approvals. This subfactor (iii) will
consider the extent to which any required zoning classifications,
environmental regulatory approvals, waivers, general and special use
permits, assessment district designations, public easements or rights-
of-way have been secured or are being sought.
(iv) User Agreements. This subfactor (iv) will consider the extent
to which any development agreements, leases, memoranda of understanding
or other agreements integral to the success of the project have been
secured or are being sought.
(b) Timing and Delivery of Project Benefits (Up to 7 points). The
applicant's response should set forth the strategy and schedule for the
delivery of the project's measurable economic benefits.
(i) Project Benefits. The response to this subfactor (i) should
include a full description of the problem (e.g., the extent of
environmental contamination, the need for jobs, the shortage of
affordable housing, etc.) and the measurable economic benefits that
will accrue from the project (e.g. the number of permanent jobs, the
amount of commercial or industrial space to be created, the number of
housing units to be provided, etc.). The response to this subfactor (i)
must also include the time frame in which the measurable economic
benefits are to be delivered. For multi-phase projects, the response to
this Factor must clearly delineate the different phases of the project
and indicate whether or not they are to be funded by BEDI/Section 108
funds. Brownfields economic development projects that provide near-
term, measurable economic benefits directly through the creation or
retention of jobs will receive a greater number of points under this
subfactor (i). BEDI projects that utilize innovative construction
techniques, technologies or other strategies in order to achieve
increased energy efficiency will also receive a greater number of
points under this subfactor (i).
(ii) Project Schedule. The applicant should provide a specific time
schedule (with both beginning and end dates) for carrying out the
project and identify interim measurable benchmarks (acquisition, site
improvements, construction, etc.) to be accomplished. The applicant
should also include a proposed schedule for drawing down all funds
necessary to complete the project, including BEDI and Section 108
funds.
A timeline form is provided in Appendix A to this program section
of the NOFA for the purpose of illustrating the project schedule, but
HUD will consider the timeline form only as an illustration of the
narrative response to this subfactor (ii).
(3) Section 108 Application (Up to 2 points). BEDI applications
accompanied by a full and complete Section 108 application will receive
up to two (2) points for this subfactor (3). BEDI applications
accompanied by a copy of
[[Page 21434]]
a currently pending but unapproved Section 108 loan guarantee
application for the same project described in the BEDI application will
also receive up to two (2) points under this subfactor (3).
(4) Financial Feasibility/Need (Up to 10 points). The applicant
should demonstrate the extent to which the project is financially
feasible based on its proposed use of BEDI and Section 108 funds. In
responding to this subfactor (4), applicants are encouraged to
accompany their narrative response, as appropriate, with a development
and operating pro forma or similar analysis of the proposed project
financing. Such pro forma or other financial analysis will not be
counted in the fifteen page limitation on the narrative response to the
Rating Factors as provided in Section V (D) of this program section. In
the narrative response, applicants must clearly address the question of
why the BEDI funds are critical to the success of this project by
providing the following items, as applicable:
(a) Project Costs and Financial Requirements. A funding sources and
uses statement should be provided that specifies the source of funds
for each identified use or activity, along with the derivation of
project costs;
(b) Use of BEDI and Section 108 Funds. The applicant should discuss
the critical gaps that exist in the financing of the proposed project,
why those gaps exist and how the BEDI and Section 108 funds will be
used to fill those gaps; and
(c) Funding Criteria. The applicant should describe the criteria
used for determining funding need and feasibility.
Rating Factor 4: Leveraging Resources (15 Points Maximum)
In evaluating this factor, HUD will consider the extent to which
the response demonstrates the likelihood that the project will leverage
both Section 108 loan and other public or private funds as part of the
total project resources. This factor has two subfactors, each with its
own maximum point total:
(1) Leverage of Section 108 funds (Up to 8 points).
The minimum ratio of Section 108 funds to BEDI funds in any project
may not be less than 1:1. Points will be awarded based upon the extent
to which the proposed project leverages an amount of Section 108 funds
greater than a 1:1 ratio. If the application has a ratio of 1:1, it
will not receive any points under this subfactor. The higher the ratio
of additional new Section 108 funds to BEDI funds proposed in an
application, the more points it will receive under this subfactor,
within the points available hereunder. (See Section IV (G)(1) and (5)
of this program section of the SuperNOFA regarding the conditioning of
BEDI awards on achievement of a specific BEDI/Section 108 leveraging
ratio.)
(2) Leverage of Other Financial Resources (Up to 7 points).
HUD will evaluate the extent to which other funds (public or
private) are leveraged by BEDI grant funds, and the extent to which
such other funds are firmly committed to the project. This could
include the use of CDBG funds, other federal or state grants or loans,
local general funds, project equity or commercial financing provided by
private sources or funds from non-profits or other sources. Funds will
be considered committed to the project if they meet the definition of
``Firm Commitment'' found in Section III(A)(1) above, and may be
subject to completion of any environmental review required under 24 CFR
part 58 for the project. In order for an applicant's commitment of CDBG
funds to be accepted by HUD as additional financing for a project, a
resolution from the local governing body (e.g., city/borough council)
authorizing the amount and permitted use(s) of the funds must be
provided. Additionally, with respect to all commitments, in order for a
commitment to receive points under this Factor--such as a commitment to
donate or purchase real property or to provide in-kind services--the
party making the commitment must assign a monetary value to the
commitment and provide the basis for that value.
Rating Factor 5: Achieving Results and Program Evaluation (10 Points
Maximum)
This factor emphasizes HUD's commitment to ensuring that applicants
maintain commitments made in their application and assess their
performance to ensure that performance goals are met. The applicant's
response to this Factor should identify: (1) Project outcomes for the
proposed BEDI project; (2) interim benchmarks of the project; and (3)
performance indicators that will allow the applicant to measure its
performance in achieving the identified interim benchmarks and the
project outcomes. Achieving results means that the applicant has
clearly identified the outcomes of the brownfields economic development
project, i.e., the measurable economic benefits to be achieved. The
applicant must also identify the interim benchmarks that will lead to
the achievement of the project outcomes. The performance indicators
selected by the applicant to measure performance should be objectively
quantifiable and measure actual achievements against anticipated
achievements. The response to this Factor should identify what will be
measured, how it will be measured, and the procedures that are in place
to make adjustments if performance targets for the interim benchmarks
or the project outcomes are not met within established timeframes. BEDI
grant agreements will provide for a periodic report by the grantee on
the progress of the grantee in achieving the interim benchmarks and
project outcomes of the BEDI project, until such time as the project
outcomes are achieved.
In response to this Factor, applicants are encouraged to address
any of the following applicable outcomes or ultimate goals identified
by HUD for BEDI projects: The number of jobs to be created or retained;
the amount of increased wages resulting from the creation or retention
of jobs; the number of housing units to be constructed or
rehabilitated; the total square feet of commercial and industrial space
to be created; the total number of low- and moderate-income persons to
benefit from the project; the total number of businesses assisted by
the project; the number of acres of brownfields returned to productive
economic use; and any increased land value as a result of the BEDI
project. Applicants may also propose alternative or additional outcomes
or goals related to other benefits expected for the neighborhood or for
persons assisted, as part of the evaluation plan. A logic model is
provided in the General Section of the SuperNOFA for the purpose of
illustrating the evaluation plan, but HUD will consider the logic model
only as an illustration of the narrative response to this Factor.
Bonus Points
An application may receive up to four (4) bonus points, until the
maximum of four points are achieved. Two bonus points may be awarded
for each of the following:
(a) Projects that are located either in federally-designated
Empowerment Zones, Enterprise or Renewal Communities, or Strategic
Planning Communities (See Section VI (C)(2) of the General Section of
the SuperNOFA) for advice on locating a list of designated
communities);
(b) Projects that are located in Brownfields Showcase Communities
designated by EPA. A list of the federally designated Brownfield
Showcase Communities is listed in Appendix B of this program section of
the SuperNOFA and is also available from the SuperNOFA Information
[[Page 21435]]
Center or through the HUD Web site, http://www.hud.gov.
VI. Application Submission Requirements
(A) BEDI Funding. An application for a BEDI grant under this
program section of the SuperNOFA must have the following items listed
in this Section VI to be complete. The standard forms, certifications
and assurances that are required for the BEDI application (and listed
in paragraph (I) below) can be found in Appendix B to the General
Section. The remaining application items that are forms (i.e.,
excluding such items as narratives or letters, etc.), referred to as
the ``non-standard forms'', can be found in Appendix A to this program
section of the SuperNOFA.
(B) Transmittal Letter signed by the authorized representative of
the eligible applicant indicating that it is submitting the application
for funding under the Brownfields Economic Development Initiative
Program and is requesting funding consideration for a BEDI project.
(C) Checklist and Submission Table of Contents indicating the page
numbers where the submission items can be found in the application
(form HUD-40076-A EDI/BEDI).
(D) BEDI Narrative Statement (not to exceed 3 pages) describing
BEDI-funded eligible activities within the proposed project and
indicating that funding will not be used for a prohibited purpose and
that the proposed site for the project is not ineligible under the BEDI
program. (See Section V (B) of this program section.)
(E) EDI/BEDI/Section 108 Funding Eligibility Statement. A completed
EDI/BEDI Section 108 Funding Eligibility Statement (form HUD-40076-E
EDI/BEDI).
(F) Request for Loan Guarantee Assistance. A request for loan
guarantee assistance under Section 108, as further described in Section
IV (D) of this program section of the SuperNOFA. Full application
guidelines for the Section 108 program are found at 24 CFR 570.704.
(G) Narrative Responses to Factors for Award (not to exceed 15
pages overall):
(1) Rating Factor 1: Capacity and Relevant Organizational
Experience. Provide a narrative indicating the capacity of the
applicant's organization and staff and any third parties to perform the
work for which it is requesting funding.
(2) Rating Factor 2: Need Statement Identifying the level of
Distress/Extent of the Problem. Provide a narrative statement including
any documentation supporting the statement of need, accompanied by a
completed form HUD-40076-B EDI/BEDI.
(3) Rating Factor 3: Soundness of Approach. Include the activities,
budget and time frame for conducting activities and providing project
benefits in the narrative response, accompanied by form HUD 40076-C
EDI/BEDI.
(4) Rating Factor 4: Leveraging Resources. The response must
include a completed copy of form HUD-40076-D EDI/BEDI, ``Rating Factor
4: Leveraging Resources--Sources and Uses Statement,'' accompanied by
any letters of firm commitment as defined in Section III (A)(1) of this
program section.
(5) Rating Factor 5: Achieving Results and Program Evaluation:
Provide a narrative response to this factor, accompanied by the logic
model provided in the General Section of the SuperNOFA.
(H) Request for Funds. A single application must contain a request
for funds for a single BEDI/108 project. An applicant may submit an
additional application for each additional unrelated BEDI/108 project,
but in no event will HUD rate and rank more than one BEDI project per
application.
(I) Additional Application Forms and Certifications. In addition to
any forms that have been submitted in response to Section VI (A)
through (H) above (which may be found at Appendix A), the following
forms and certifications must also be submitted in accordance with
Section V (H) of the General Section of this SuperNOFA:
(1) Application for Federal Assistance (HUD-424);
(2) Federal Assistance Funding Matrix (HUD 424-M);
(3) Standard Form for Assurances--Non-Construction Programs (HUD
424-B) and/or Standard Form for Assurances--Construction Programs (SF
424-D): not required for BEDI applications since the ``Leveraging
Resources--Sources and Uses Statement'' serves the same purpose as a
budget form, but must be submitted with the Section 108 application.
Since these forms contain assurances of compliance with civil rights
and other regulatory requirements, BEDI applicants may elect to provide
the signed assurances either with the BEDI or the Section 108
application, if the latter is submitted with the BEDI application.
(4) Applicant/Recipient Disclosure/Update Report, HUD-2880;
(5) Certification of Consistency With EZ/EC Strategic Plan, HUD-
2990.
These forms are found in the Appendix B to the General Section of
this SuperNOFA.
The non-standard forms for the BEDI applications are in Appendix A
to this program section.
If an applicant wishes to receive an acknowledgment of HUD's
receipt of its application, it should submit a completed Acknowledgment
of Receipt of Application form.
VII. Corrections to Deficient Applications
The General Section of the SuperNOFA provides the procedures for
corrections to deficient applications.
VIII. Environmental Requirements
(A) Environmental Reviews. After the completion of this competition
and after HUD's award of BEDI grant funds, pursuant to 24 CFR 570.604,
each project or activity assisted under this program is subject to the
provisions of 24 CFR part 58, including limitations on the BEDI grantee
and Section 108 public entity's commitment of HUD and non-HUD funds
prior to the completion of environmental review, notification and
release of funds. No such assistance will be released by HUD until a
request for release of funds is submitted and the requirements of 24
CFR part 58 have been met. All public entities, including non-
entitlement public entities, shall submit the request for release of
funds and related certification, required pursuant to 24 CFR part 58,
to the appropriate HUD field office for each project to be assisted.
(B) Environmental Justice. (1) Executive Order 12898 (Federal
Actions to Address Environmental Justice in Minority Populations and
Low-Income Populations) directs federal agencies to develop strategies
to address environmental justice. Environmental justice seeks to
rectify the disproportionately high burden of environmental pollution
that is often borne by low-income, minority, and other disadvantaged
communities, and to ensure community involvement in policies and
programs addressing this issue.
(2) Brownfields are often located in distressed neighborhoods,
contribute to neighborhood blight, and lower the quality of social,
economic, and environmental health of communities. The BEDI program is
intended to promote the clean up and redevelopment of brownfields sites
and HUD expects that projects presented for BEDI funding will integrate
environmental justice concerns and provide measurable economic benefits
for affected communities and their current residents for the long term.
[[Page 21436]]
IX. Authority
Section 108(q), Title I, Housing and Community Development Act of
1974, as amended, (42 U.S.C. 5301); 24 CFR part 570.
Appendices. Appendix A, the non-standard forms for the BEDI
application, and Appendix B, a listing of federally designated
Brownfields Showcase Communities, follow.
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Appendix B
Federally Designated Brownfields Showcase Communities
The following lists Federally Designated Brownfield Showcase
Communities:
(1) Baltimore, Maryland
(2) Cape Charles/Northhampton County, Virginia
(3) Chicago, Illinois
(4) Dallas, Texas
(5) Denver, Colorado
(6) Des Moines, Iowa
(7) East Palo Alto, California
(8) Eastward Ho (Consortium), Florida
(8) Gila River Indian Community, Arizona
(9) Glen Cove, New York
(10) Houston, Texas
(11) Jackson, Mississippi
(12) Kansas City, Kansas/Missouri
(13) Los Angeles, California
(14) Lowell, Massachusetts
(15) Metlakatla Indian Community, Alaska
(16) Milwaukee, Wisconsin
(17) Mystic Valley Development Commission, Massachusetts (Cities of
Everett, Malden and Medford)
(18) New Bedford, Massachusetts
(19) Niagara Region, New York (Cities of Buffalo, Niagara Falls,
Counties of Niagara and Erie)
(20) Portland, Oregon
(21) State of Rhode Island
(22) St. Louis, Missouri/East St. Louis, Illinois
(23) St. Paul, Minnesota
(24) Salt Lake City, Utah
(25) Seattle/King County, Washington
(26) Stamford, Connecticut
(27) Trenton, New Jersey
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[[Page 21447]]
Funding Availability for Self-Help Homeownership Opportunity Program
(Shop)
Program Overview
Purpose of the Program. To facilitate and encourage innovative
homeownership opportunities through self-help housing where the
homebuyer contributes a significant amount of sweat-equity toward the
construction of the new dwelling.
Available Funds. $25,085,875 in Fiscal Year 2003 funds.
Eligible Applicants. You must be a national or regional nonprofit
organization or consortium.
Application Deadline. July 3, 2003.
Match. None.
Additional Information
If you are interested in applying for funding under this program,
please review carefully the General Section of this SuperNOFA and the
following additional information:
I. Application Due Date, Standard Forms, Further Information, and
Technical Assistance
Application Due Date. Applications for SHOP grants are due on or
before July 3, 2003.
Application Submission Procedures. Applicants must follow the
specific Mailing and Receipt Procedures and Proof of Timely Submission
located in the General Section of this SuperNOFA.
Address for Submitting Applications. Submit one original and two
copies of the application to Department of Housing and Urban
Development, Office of Community Planning and Development, Processing
and Control Unit, 451 Seventh Street, SW, Room 7251, Washington, DC
20410, ATTN: Self-Help Homeownership Opportunity Program (SHOP).
For Application Forms. Only national and regional nonprofit
organizations and consortia are eligible to apply for SHOP funding
under this NOFA. This notice contains all the information necessary for
submission of your application. Consequently, there is no separate
application kit. Copies of the standard forms are located in the
General Section of this SuperNOFA or you may request copies by calling
HUD's SuperNOFA Information Center at: 1-800-HUD-8929. If you have a
hearing or speech impairment, please call the Center's TTY number at 1-
800-HUD-2209. When requesting standard forms, you should refer to SHOP
and provide your name and address (including zip code) and telephone
number (including area code). See Section VI for application submission
requirements. You may also access the application requirements on the
Internet through HUD's Web site at http://www.hud.gov/grants.
Further Information and Technical Assistance. You may contact Ms.
Lou Thompson, Office of Affordable Housing Programs, Department of
Housing and Urban Development, Room 7164, 451 Seventh Street, SW.,
Washington, DC 20410; telephone (202) 708-2684, ext. 4594 (this is not
a toll-free number). This number can be accessed via TTY by calling the
Federal Information Relay Service Operator at 1-800-877-8339.
Satellite Broadcast. HUD will hold an information broadcast via
satellite for potential applicants to learn more about the program and
preparation of the application. For more information about the date and
time of the broadcast, you should consult the HUD Web site at
http://www.hud.gov/grants.
II. Amount Allocated
The amount available for this program is $25,085,875.00 in Fiscal
Year 2003 Funds. Any unobligated funds from previous competitions or
additional funds that may become available, as a result of deobligation
or recaptures from previous awards or budget transfers, may be used in
addition to the Fiscal Year 2003 appropriation to fund applications
submitted in response to this NOFA.
III. Program Description; Eligible Applicants; Eligible Activities
(A) Program Description. SHOP funding is intended to facilitate and
encourage innovative homeownership opportunities on a national
geographically-diverse basis through self-help housing where the
homebuyer contributes a significant amount of sweat-equity toward the
construction or rehabilitation of the dwelling.
Decent, safe, and sanitary non-luxury dwellings developed under
SHOP must be made available to eligible homebuyers at prices below the
prevailing market prices. Eligible homebuyers are low-income
individuals and families (i.e., those whose annual incomes do not
exceed 80 percent of the median income for the area, as established by
HUD) who are unable to purchase a dwelling. Housing assisted under this
Notice must involve community participation in the form of labor
contributed by homebuyers and, if the program permits them, volunteers
in the construction of dwellings and by other activities that involve
the community in the project.
(B) Eligible Applicants. You must be a national or regional
nonprofit public or private organization or consortium that has the
capacity and experience to provide or facilitate self-help housing
homeownership opportunities. Your organization or consortium must
undertake eligible SHOP activities directly and/or provide assistance
to your local affiliates. Your organization or consortium must
undertake eligible SHOP activities directly and/or provide assistance
to your local affiliates.
``Regional'' is defined for the purpose of this program to be an
area such as the Southwest or Northeast that must include at least two
states. The states in the region need not be contiguous and the
operational boundaries of the organization need not precisely conform
to state boundaries.
``Consortium'' for the purposes of SHOP is defined as two or more
nonprofit organizations that individually have the capacity and
experience to provide or facilitate self-help housing and come together
to submit a single application for SHOP funding on a national or
regional basis. If you are a consortium, an agreement must be executed
by all consortium members forming the consortium for the purpose of
applying for and using FY 2003 SHOP funds before the application is
submitted to HUD. The consortium agreement must be submitted as part of
your application. All consortium members must be identified in your
application. Your application must be submitted as one integrated
document that demonstrates the consortium's comprehensive approach to
self-help housing. However, the application must describe the program
design of each consortium member if they are different from one
another. One organization must be chosen as the lead entity. The lead
entity must submit the application and, if selected for funding, will
execute the grant agreement with HUD and assume responsibility for
carrying out grant activities in compliance with all program
requirements. If funded, the lead entity must enter into a separate
agreement with each consortium member that incorporates the
requirements of the Grant Agreement between HUD and the consortium and
outlines the individual consortium member's responsibilities for
compliance with SHOP.
``Affiliate'' is defined for the purpose of this program to be:
(i) A local self-help housing organization which is a subordinate
organization (i.e., chapter, local, post, or unit) of a central
organization and which is covered by the group exemption letter issued
to the central organization under section 501(c)(3) of the Internal
Revenue Code;
[[Page 21448]]
(ii) A local self-help housing organization with which the
applicant has an existing relationship, e.g., the applicant has
provided technical assistance or funding to the local self-help housing
organization; or
(iii) A local self-help housing organization with which the
applicant does not have an existing relationship, but to which the
applicant will provide necessary technical assistance and mentoring as
part of funding under the application.
Your application may not propose to fund any affiliate or
consortium member that is also included in another SHOP application.
You must ensure that any affiliate or consortium member under your FY
2003 application is not also seeking funding from another SHOP
applicant for FY 2003 funds. If they apply under more than one national
or regional organization or consortium, they may be disqualified for
any funding.
(C) Eligible Activities. The only eligible activities are:
(1) Land acquisition (including financing and closing costs), which
may include reimbursing an organization, consortium, or affiliate, upon
approval of any required environmental review, for non-grant amounts of
the organization, consortium, or affiliate advanced to acquire land
before completion of the review;
(2) Infrastructure improvements (installing, extending,
constructing, rehabilitating, or otherwise improving utilities and
other infrastructure, including removal of environmental hazards); and
(3) Administration, planning and management development shall not
exceed 20 percent of any SHOP grant. Administrative costs are the costs
of general management, oversight and coordination of the SHOP grant;
staff and overhead costs of the SHOP grant; costs of providing
information to the public about the SHOP grant; cost of affirmatively
furthering fair housing; and indirect costs (such as rent and
utilities) of the grantee or affiliate in carrying out the SHOP
activities. Indirect costs may only be charged to the SHOP grant under
a cost allocation plan prepared in accordance with OMB Circular A-122.
Funds may be used for both single-family and multifamily dwellings.
(D) Ineligible Costs: Costs associated with the rehabilitation,
improvement, or construction of dwellings are not eligible uses of
program funds.
IV. Program Requirements
In addition to the statutory, regulatory, threshold and public
policy requirements listed in Section V of the General Section of this
SuperNOFA, each applicant must meet and comply with the following SHOP
statutory, threshold, and other program requirements:
(A) Threshold Requirements
(1) You, the applicant, must be eligible to apply under SHOP (see
Section III(B) of this program section of the SuperNOFA).
(2) The amount of funding you request must support no less than 30
self-help units and may not exceed an average investment of $10,000 per
unit in SHOP funding.
(3) The population you plan to serve must be eligible under SHOP.
Eligible homebuyers are low-income individuals and families (i.e.,
those whose incomes do not exceed 80 percent of the median income for
the area, as established by HUD).
(4) You must demonstrate that you have successfully completed at
least 30 self-help homeownership units within a national or regional
area in which the homebuyers contributed a significant amount of sweat-
equity, and, if your program permitted it, volunteer labor was used
toward the construction of the dwellings within the 24-month period
immediately preceding the publication of this SuperNOFA.
(5) Your program must require homebuyers to contribute a minimum of
200 hours of sweat equity on the construction of their own homes. This
excludes the contribution of volunteer labor, except for assistance for
homebuyers with disabilities.
Submission Threshold Requirements
(1) Evidence of your public or private non-profit status, such as a
copy of a current Internal Revenue Service ruling that your
organization 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, you may submit a certified copy of your approved charter,
articles of incorporation or bylaws demonstrating that you are
established as a nonprofit organization under state law. If you are a
consortium, each participant in your consortium must be a nonprofit
organization. Each consortium member must submit evidence of its
nonprofit status to the lead entity for inclusion in the consortium's
application package.
Threshold requirements (2) through (5) require no separate
submissions. In order for the application to be rated and ranked, these
requirements must be addressed under the submission requirements for
the rating factors listed in Section V(D) of this program section of
this SHOP NOFA below.
(B) Statutory and Program Requirements. This program does not have
regulations. You must comply with all statutory requirements applicable
to the SHOP program as cited in Section X, Authority, of this SHOP
program section and program requirements cited in this program section
of the SuperNOFA. Pursuant to these requirements, you must:
(1) Develop, through significant amounts of sweat-equity by each
homebuyer and any additional volunteer labor, at least 30 dwelling
units at an average cost of no more than $10,000 per unit in SHOP funds
for land acquisition and infrastructure improvements;
(2) Use your grant to leverage other sources of funding, including
private or other public funds, to complete construction of the housing
units;
(3) Develop quality dwellings that comply with local building and
safety codes and standards, that will be made available to homebuyers
at prices below the prevailing market price;
(4) Schedule activities to expend all grant funds awarded and
substantially fulfill your obligations under your grant agreement,
including timely development of the appropriate number of dwelling
units. Grant funds must be expended within 24 months of the date that
grant funds are first made available for drawdown under a line of
credit established by HUD for the Grantee, except that grant funds
provided to affiliates that develop five or more units must be expended
within 36 months; and
(5) Not require a homebuyer to make an up-front financial
contribution to a unit other than cash contributed for down payment or
closing costs at the time of acquisition.
V. Application Selection Process
(A) Rating. HUD will review all applications in accordance with the
Application Selection Process in Section VI of the General Section of
this SuperNOFA and in this SHOP program section of the SuperNOFA. HUD
will review all applications based on the threshold factors listed in
Section IV of this program section. Applications that meet all
threshold requirements will be rated according to the selection factors
in this program section of the SuperNOFA. Applications that do not meet
all threshold factors will be rejected and not rated.
(B) Ranking and Selection Procedures. Applications that receive a
total rating of 75 points or more (without the addition of Empowerment
Zones/
[[Page 21449]]
Enterprise Communities/Urban Enhanced Enterprise Communities/Strategic
Planning Communities, or Renewal Communities [RC/EZ/ECs]
bonus points)
will be eligible for selection, and HUD will place them in rank order.
After adding any bonus points for RC/EZ/ECs, HUD will consider rank
order, funds availability, and past performance in the selection and
funding of applications. HUD reserves the right to:
(1) Fund less than the amount requested by any applicant based on
the application's rank, the applicant's past performance, and the
amount of funds requested relative to the total amount of available
funds; and
(2) Fund less than the full amount requested by any applicant to
ensure a fair distribution of the funds and the development of housing
on a national, geographically-diverse basis as required by the statute;
and/or
(3) Not award funds to an applicant with significant performance
problems.
HUD will not fund any portion of an application that is ineligible
for funding under program statutory requirements, or which does not
meet the requirements of the General Section of this SuperNOFA or the
requirements in this SHOP section of the SuperNOFA. The minimum grant
award shall be the amount necessary to complete at least 30 units at an
average investment of not more than $10,000 per unit or a lesser amount
if lower costs are reflected in the application. If any funds remain
after all selections have been made, these funds may be available for
other competitions.
(C) Applicant Debriefing. In accordance with the requirements of
Section XI(A)(4) of the General Section of this SuperNOFA, applicants
requesting to be debriefed must send a written request to Ms. Lou
Thompson, Office of Affordable Housing Programs, Department of Housing
and Urban Development, Room 7164, 451 Seventh Street, SW, Washington,
DC 20410.
(D) Factors for Award Used to Evaluate Applications. HUD will rate
all SHOP applications that successfully complete technical processing
using the Rating Factors and the Application Submission Requirements
described below. The maximum number of points for this program is 102.
This includes two RC/EZ/EC bonus points, as described in Section
III(C)(1) of the General Section of the SuperNOFA. In evaluating
applications for funding, HUD will take into account an applicant's
past performance in managing funds, including accounting for funds
appropriately, the timely use of funds received from HUD, meeting
performance targets for completion of activities, and the number of
persons served.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational
Staff (20 Points)
This factor examines the extent to which you, as a single applicant
or as a consortium (including individual consortium members), have the
experience and organizational resources necessary to carry out the
proposed activities in a timely manner.
In evaluating this factor, HUD will consider your recent and
relevant experience in carrying out the activities you propose, and
your administrative and fiscal management capability to administer the
grant, including the ability to account for funds appropriately. All
applicants, including individual consortium members, must have capacity
and experience in administering or facilitating self-help housing. If
you are sponsoring affiliate organizations that do not have a history
of developing self-help housing, HUD will assess your organization's
experience in providing technical assistance and the ability to mentor
new affiliates. HUD will assess your organization's past performance
based upon performance reports submitted for completion of eligible
activities and the number of households/families provided housing,
financial status information focusing on expediency of draws and use of
funds, monitoring reports, audit reports and other information
available to HUD in making its determination under this factor. If you
are not a current recipient of HUD funds, you should submit any
existing internal or external performance reports or other information
that will assist HUD in making this determination.
Submission Requirements for Rating Factor 1
(1) (7 points) You must describe your past experience in carrying
out self-help housing activities (specify the time frame when these
activities occurred) that are the same as, or similar to, the
activities you propose for funding, and demonstrate reasonable success
in carrying out and completing those activities. You must include the
average number of sweat equity hours provided per family, and volunteer
labor, if your program permitted it. You may demonstrate reasonable
success by showing that your previous activities were carried out as
proposed consistent with the time frame you proposed for completion of
all work. You must show that established benchmarks for acquiring
properties and completing housing construction were met and performance
reports were submitted, as required. You must also describe any
obstacles and/or delays that were encountered, and the actions taken to
overcome them to successfully complete your program.
(2) (7 points) You must provide a description of your
organization's or consortium's management structure. You must also
describe the key staff and their roles and responsibilities for day-to-
day management of your proposed SHOP program and activities within the
organization or consortium if funds are awarded. If you elect to work
with affiliates that do not have capacity and experience, you must
state how you will provide technical assistance and mentor these
organizations to develop capacity either directly or indirectly.
(3) (4 points) You must demonstrate your organization's ability to
handle financial resources with adequate financial control and
accounting procedures. You must describe your financial control
procedures for SHOP and how they meet 24 CFR 84.21, ``Standards for
Financial Management Systems.'' You are requested to submit a copy of
your most recent audit if one is required to be performed for your
organization. Only an audit of the lead entity would need to be
provided with an application for a consortium.
(4) (2 points) You must demonstrate your experience and ability in
constructing and altering homes by describing the kinds of features
that you have used to design homes in accordance with universal design
or otherwise make homes accessible to the elderly or persons with
disabilities. You must provide data on the number of units and the
timeframe in which units were constructed and/or altered.
Rating Factor 2: Need/Extent of the Problem (15 Points)
This factor examines the extent to which you identify the housing
need, or problems in the areas that your proposed activities will
target, and the urgency of meeting that need.
The purpose of this factor is to make sure that funding is provided
where a need for funding exists. Under this factor, you must identify
the need or needs in the community that your proposed SHOP activities
are designed to address or, if you plan to select specific affiliates
only after you receive SHOP funding, you must demonstrate how you plan
to identify need prior to your selection of affiliates.
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Submission Requirements for Rating Factor 2
Extent of Need
(1) (7 points) Identify the extent of need for SHOP funds in all
communities or areas in which your proposed activities will be carried
out or describe the specific criteria you will use to select
communities or projects based on need after you have received an award
under SHOP. National and regional organizations and consortia that
select affiliates after grant award must submit a listing of affiliates
surveyed on which they are projecting their need for SHOP funding.
Quality of Documentation
(2) The kind of information you submit to demonstrate the need or
needs in the target areas may include, but is not limited to, the
following:
(a) (6 points) Quality of data demonstrating:
(i) Housing market data such as information included in the local
Five-Year Consolidated Plan or other data sources, such as local tax
assessor databases or relevant realtor information.
(ii) Data dealing with such factors as housing density, housing
affordability, housing age or deterioration, homeownership rate
(especially minority) and lack of adequate infrastructure or utilities.
(b) (2 points) Quality of data demonstrating:
(i) Need for accessible homes in the area.
(ii) Evidence of housing discrimination.
(iii) Evidence from the local Analysis of Impediments to Fair
Housing Choice that shows the need for this program.
Applicants will receive higher scores both for the level of need
documented and for the quality of documentation.
Rating Factor 3: Soundness of Approach (40 points)
This factor examines the quality of your plan of proposed
activities. In evaluating this factor HUD will consider:
(1) Your specific use of SHOP funds, the number of units and the
type(s) of housing to be constructed, the use of sweat equity/volunteer
labor; your established timeline for performance; your schedule for
expending funds and completing construction; the proposed budget and
cost effectiveness of your program; and your plans to reach all
potentially-eligible homebuyers, including those with disabilities or
least likely to apply.
(2) How your planned activities further the Department's FY 2003
policy priorities noted in Section II of the General Section. You will
receive one rating point for each priority your program will address
and associated with performance measures. For FY 2003, HUD's policy
priorities that apply to the SHOP program are:
(a) Providing increased homeownership and rental opportunities for
low- and moderate-income persons, persons with disabilities, the
elderly, minorities, and families with limited English proficiency.
(b) Improving our Nation's communities.
(c) Encouraging accessible design features: visitability in new
construction and substantial rehabilitation and universal design.
(d) Providing full and equal access to grass-roots faith-based and
other community-based organizations in HUD program implementation.
(e) Improving housing conditions for families living in the
Colonias and migrant farm workers.
(f) Participation of minority serving institutions in HUD programs.
(g) Participation in Energy Star.
Submission Requirements for Factor 3
(1) (3 points) Identify all activities that you propose to fund
with SHOP. You should identify the specific use of SHOP funds and the
proposed number of units to be assisted with SHOP funding, the housing
type(s) (single family or multifamily, or both) and the form of
ownership (fee simple, condominium, cooperative, etc.) you propose to
use.
(2) (4 points) Submit a construction and completion schedule that
expends SHOP funds and substantially fulfills your obligations,
including the completion of the appropriate number of dwelling units,
within 24 months, or in the case of affiliates that develop five or
more units, within 36 months, and demonstrates that remaining housing
construction will be completed within a reasonable period of time. Your
schedule must show the number or percentage of dwelling units that will
be completed and conveyed to homebuyers at the end of the 24- and 36-
month periods and the timeframe for completing any unfinished units.
(3) (4 points) Submit a timetable listing milestones against which
HUD is to measure your performance progress in final selection of local
affiliates if they are not specifically identified in the application,
expending funds, and completing acquisition, infrastructure and housing
construction activities within the schedule in Item 2 above. These
milestones should be at reasonable intervals (e.g., monthly,
quarterly).
(4) (2 points) Describe how your proposed activities address the
need or needs you identified under Rating Factor 2 above.
(5) (5 points) Provide a detailed budget with a break out for each
proposed task and each budget category (acquisition, infrastructure
improvements, and administration) funded by SHOP in the HUD-424C and
424CB. If SHOP funds will be used for administration of your grant, you
must include the cost of monitoring consortium members and affiliates
at least once during the grant period. Your budget must also include
leveraged funding to cover all costs of completing construction of the
proposed number of units.
(6) (2 points) Demonstrate that projected costs for the proposed
activities do not deviate substantially from the norm in the locale in
which your activities will take place, will not exceed an average cost
of $10,000 per unit in SHOP funds, and that your proposed activities
are cost effective.
(7) (7 points) Describe how each of the Department's policy
priorities are furthered by your proposed activities. You will receive
one point for each policy priority addressed. To receive a point for a
policy priority, you must describe how your proposed work activities
address the specific policy and list proposed performance measurements
related to it.
(8) (2 points) Describe how you will reach potential homebuyers
through the use of services and materials that are accessible or
visitable to all persons, including persons with disabilities (e.g.,
languages, formats, locations, distribution, and use of minority media
to attract those least likely to apply).
(9) (4 points) Describe your criteria, including the income range
of targeted homebuyers, and procedures for selecting homebuyers. If the
selection criteria used by individual consortium members or affiliates
are different from your criteria, you must describe the differences.
(10) (2 points) Describe how your program will provide reasonable
accommodations for persons with disabilities by providing ``sweat
equity'' assignments that can be performed by the client regardless of
disability. Describe the types of tasks that persons with disabilities
will be required to perform.
(11) (5 points) Describe your proposed plan for overseeing the
performance of consortium members and affiliates, including a plan for
monitoring each consortium member and affiliate for
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